Token Chronicle - Week 1 December 2024

Top cryptos

Meme of the week

Market update: We have therefore seen Scenario 2) mentioned in the previous email: a breach of the $100K ceiling for BTC (with a new ATH around $104K). Since then, it has fallen back to $95K before fluctuating again around $100K. What can we expect in the coming weeks? I think BTC will rise again this week (how significant the increase will be—will it reach $110K?) but we should anticipate a major correction around Christmas or until the start of Trump's term. This is especially likely given that the current US government and MtGox have moved large amounts of BTC, possibly for massive sales. ETH has also performed well, returning to $4K, and the rest of the market is following a similar trend (we've also seen some "Alts Days": days without BTC growth but with significant upward movements in altcoins).

Main points this week:

International:

1. On Sunday, Donald Trump threatened the BRICS+ countries with significant tariffs if they continued with their de-dollarization plans. He stated that countries wishing to "replace the powerful US dollar" would face a 100% increase in import duties and could prepare to say goodbye to their sales "in the wonderful US economy."

2. Upcoming Sale? US authorities have transferred nearly $2 billion worth of Bitcoin (BTC), which was seized during the Silk Road investigation. The funds were moved to Coinbase Prime, a platform for institutional investors. This suggests that US authorities might be preparing to sell part or all of the seized Bitcoins, which could impact the Bitcoin price, as such sales often lead to investor fear.

3. South Korean President Yoon Suk-yeol declared martial law this afternoon, accusing the opposition of trying to paralyze the administration. This announcement shocked the markets, including a sharp drop in Bitcoin’s value against the South Korean won. The Democratic Party is calling for swift action to end the measure. Currently, strikes are banned in South Korea, political activities are suspended, and media is under government control. Around 1 AM (Korean time), the 190 sitting members of the National Assembly unanimously voted to end martial law. It remains to be seen if the president will comply, and what actions the military will take. Former President Moon Jae-in, who he succeeded, released a statement saying "democracy in South Korea is on the brink." President Yoon Suk-yeol took office on May 10, 2022, with his term ending in 2027.

4. Just hours after transferring nearly $2 billion of seized Bitcoin (BTC) from Silk Road, the US government did the same with funds confiscated from the former exchange FTX. The US government has not explained the reasons for these transfers.

5. As it struggles to repay creditors, the former exchange Mt.Gox continues to initiate transfers of cryptocurrencies to wallets with unknown addresses. These movements occurred right after Bitcoin (BTC) surpassed the symbolic $100,000 mark. In the past, similar movements have led to funds being distributed to creditors via other exchanges like Kraken or Bitstamp. In July, the company moved tens of thousands of BTC to various wallets in line with its repayment plan. Similarly, on November 4, over 32,000 BTC, worth $2.2 billion at the time and $3.3 billion now, was moved. The timing of this transfer seems particularly calculated, with Mt.Gox initiating the move just 12 minutes after Bitcoin surpassed the $100,000 threshold.

6. On Thursday, Donald Trump officially announced that businessman David Sacks would be appointed as the head of AI and cryptocurrencies at the White House, a newly created position. David Sacks is known for being the former COO of PayPal, where he formed a close relationship with billionaire Elon Musk. Since 2017, he has been the CEO of Craft Ventures, a venture capital firm he founded, which has invested in companies including SpaceX. As head of AI and cryptocurrencies, Sacks "will work on developing a legal framework to provide the cryptocurrency industry with the clarity it demands and allow it to thrive in the United States."

Regulation/Justice/Incident:

1. The real reasons behind the failure of the Libra project, later renamed Diem, are similar to the issues faced by Ripple, Coinbase, and other US crypto companies. In short: politics. Meta is not a small company. The Libra project was fully prepared when it reached regulators. Twenty-eight of the world's biggest companies were ready to support it. Jerome Powell, the head of the Fed, was ready to give the green light until an exchange with Janet Yellen, the Treasury Secretary appointed by Joe Biden. She reportedly told Powell that "allowing this project to move forward would be political suicide" and she "would not support him if he allowed it." Whether one likes Meta or not, this project would have revolutionized the blockchain and cryptocurrency landscape. Instead, years were wasted.

2. DMM Bitcoin, one of Japan's largest cryptocurrency exchanges, is on the brink of liquidation after suffering a major hack of 4,500 BTC, worth $320 million. Suspicions point to the Lazarus hacking group, linked to North Korea, and a money laundering network in Cambodia. On May 31, 2024, an unauthorized Bitcoin withdrawal was detected, with more than 4,500 BTC stolen from a single wallet. This incident marks Japan's largest-ever crypto hack, second only to the famous Coincheck hack of 2018.

3. Donald Trump has appointed Paul Atkins as the new president of the Securities and Exchange Commission (SEC) to replace Gary Gensler in January. Currently the CEO and founder of Patomak Global Partners LLC, Atkins also has experience at the SEC, having served as a commissioner from August 2002 to August 2008.

Traditional Finance:

1. Solana (SOL) could be the next candidate for a crypto spot ETF. Grayscale has recently filed a request with the Securities and Exchange Commission (SEC), during the administration change. NYSE Arca, the branch of the New York Stock Exchange managing such investment products, has registered the request on Grayscale’s behalf. The SEC will decide, likely after the new director takes office.

2. Pantera Capital has raised $20 million to invest in The Open Network (TON). According to two filings with the SEC, Pantera Capital has secured $20 million for investments in the TON ecosystem.

3. In an interview with the New York Times, Jerome Powell, chairman of the US Federal Reserve, compared Bitcoin (BTC) to gold. “People use Bitcoin as a speculative asset. It's like gold, but it's virtual, digital. People don’t use it as a form of payment or a store of value, it's very volatile. It’s not a competitor to the dollar. It’s really a competitor to gold.”

4. After 13 years of criticism, the Financial Times publicly apologized: FT Alphaville, a branch of the Financial Times, has long been cynical about Bitcoin (BTC) and cryptocurrencies, but the media outlet has now issued a public apology.

Adoption:

1. Three minutes. That's how long Michael Saylor, co-founder of MicroStrategy, had to convince Microsoft’s board of directors to build a strategic Bitcoin (BTC) reserve to ensure the company’s long-term financial health. On December 10, Microsoft shareholders will vote on whether to approve the creation of a BTC reserve. However, the board had initially opposed the measure. During his three-minute pitch, Saylor never mentioned MicroStrategy but explained why Microsoft "had to" build a Bitcoin reserve, considering it "the best asset the company can own." For the maximalist, Microsoft has no interest in buying back its own stock or holding bonds. To support his argument, Saylor highlighted Microsoft’s financial strategy, which he said has lost the company money over time: “You’ve surrendered hundreds of billions of dollars in capital over the past 5 years, and you’ve only amplified the risks to your own shareholders. If you want to escape this vicious cycle, you’ll need a counterparty-risk-free asset: Bitcoin.”

2. MARA Holdings, a leading Bitcoin mining company, raised $1 billion via a convertible note issuance, strengthening its strategic position. With this operation, the company acquired 6,474 BTC and plans to buy more for $160 million, solidifying its key role in the crypto ecosystem. Most of these funds, about $781 million, will be used by MARA to acquire more Bitcoin. The company also plans to use some of the proceeds to repurchase part of its outstanding convertible notes, particularly those maturing in 2026.

3. In France, a 100% Bitcoin real estate transaction was completed for the first time: two parking spaces in Gap were sold for 0.33 BTC. This groundbreaking transaction illustrates the integration of cryptocurrencies in the real estate sector, combining technological innovation with traditional investment. Funds, including BTC, are deposited in an escrow account in the buyer's name, where they remain until all conditions of the transaction are met. Notably, the payment service is provided by a local actor: Bitcoin-lyon, now known as Bull Bitcoin.

4. Last weekend, MicroStrategy sold $1.5 billion worth of stock to increase its Bitcoin (BTC) reserve. The company now holds more than 400,000 BTC.

5. To encourage more people to use its platform to invest in cryptocurrencies, Coinbase has decided to offer Apple Pay as a payment method, simplifying the cryptocurrency purchase process. Thanks to this partnership, hundreds of millions of Apple Pay users worldwide, including 60 million Americans, will be able to purchase Bitcoin (BTC), Ether (ETH), Solana (SOL), or many other cryptocurrencies listed on Coinbase in a quick and secure manner. Coinbase users will be able to use over 60 fiat currencies to buy cryptocurrencies. Those already using Coinbase Onramp won’t need to do anything—Apple Pay will appear as a payment option when making eligible purchases.

6. Virgin Voyages: The first luxury cruise line accepting Bitcoin payments: Virgin Voyages is revolutionizing the cruise industry by accepting Bitcoin for its new premium program, reinforcing Richard Branson’s innovative vision in crypto and space exploration. This initiative aligns with a global trend where tourism and cryptocurrencies converge to attract wealthy, tech-savvy customers. A recent blog post by the company offers clients an annual subscription for $120,000, which includes unlimited cruises for a year. This premium offer can now be paid in Bitcoin, making Virgin Voyages the first cruise product to accept crypto payments.

7. Establishing a national Bitcoin reserve in France? A petition is online on the National Assembly’s website: The US, Brazil, and El Salvador... Countries adopting Bitcoin are becoming increasingly numerous. When Nayib Bukele was the only one, the media…

8. France: The Blockchain Group raises €2.5 million to strengthen its Bitcoin (BTC) strategic reserve: After MicroStrategy, MetaPlanet, and others, it’s the turn of the French company The Blockchain Group to raise funds to confidently execute its economic strategy of accumulating Bitcoin (BTC). The Blockchain Group, which assists businesses in adopting blockchain technologies, announced on Wednesday a capital increase of around $2.5 million at a subscription price of €0.30 per share. “This capital increase will allow the company to strengthen its treasury strategy, which involves accumulating Bitcoin, while continuing to develop the operational activities of its subsidiaries.”

9. Corsair becomes the first French airline to adopt cryptocurrencies:
   The airline Corsair revolutionizes the customer experience by becoming the first in France to accept cryptocurrency payments through a partnership with BitPay. This initiative reflects its ambition to innovate and simplify the traveler journey while adapting to new consumer habits. Thanks to its partnership with the cryptocurrency payment service provider BitPay, it is now possible to buy tickets with Bitcoin as well as more than 100 other cryptocurrencies.

10. Semler Scientific bolstered its bitcoin holdings, acquiring 303 BTC for $29.3 million. This brings its total to 1,873 BTC, valued at approximately $184 million. Purchased at an average price of $78,553 per BTC, the firm's BTC yield has reached 78.7% since adopting its bitcoin strategy in July. Semler, now the 14th largest BTC holder among public firms, partially funded the acquisitions by issuing shares. Its Nasdaq-listed stock has surged 46% this month, despite a 7.65% dip on Thursday.

    Tech:

    1. US Department of Justice considers forcing Google to sell Chrome for $20 billion to limit its monopoly and foster competition:
       This historic decision marks a turning point in the regulation of tech giants. With over 3 billion monthly users and a market share of 61% in the US browser market, Chrome gives Google a strategic advantage in data collection, advertising targeting, and promoting innovations like its AI Gemini. During the trial, the judge emphasized that Google relies on anticompetitive payments to ensure its search engine is the default on most smartphones, generating $26.3 billion in 2021 from companies like Apple and Samsung. Regulators are also seeking to separate Android from other Google products like the Google Play store to stimulate competition.

    2. Mine Bitcoin with airplanes? It’s now possible with Volato:
       Volato is redefining private aviation by turning its airplanes into Bitcoin mining platforms, using the excess energy from flights to create digital assets. This technology combines performance, sustainability, and economic optimization, paving the way for greener and more profitable aviation. The company intends to redirect the revenues from Bitcoin mining to fund carbon offset programs and purchase sustainable aviation fuel (SAF), which is still expensive and requires widespread adoption to become viable.

    3. Thomson Computing, a French IT company, aims to launch the world’s first Web3-focused laptop:
       Thomson Computing, based in Pontault-Combault, Seine-et-Marne, has set itself the challenge of becoming the first company globally to offer a laptop entirely dedicated to Web3. To achieve this, its parent company, Metavisio, is going all-in. The laptop will feature an integrated cold wallet supporting multiple networks such as Ethereum, Bitcoin, Bittensor, and XRP Ledger, with plans to add more networks in the future. Earlier this year, Metavisio secured €50 million in funding through a Simple Agreement for Future Equity (SAFE). The investment allows American AI and Hardware Investments to purchase shares at a later date, particularly if the company raises more funds or makes a deal. Additionally, Thomson Computing has partnered with US-based IO FinNet, a Web3 specialist, to create a joint venture in France, where they will collaborate to develop the new laptop.

    4. BitGo has launched a retail platform, extending its trading, staking, lending, wallet, and custody services globally. Known for safeguarding billions in institutional crypto assets, BitGo offers retail users institutional-grade security and regulatory compliance. Valued at $1.75B after a 2023 Series C, it also facilitates Mt. Gox repayments and custodies WBTC and spot Bitcoin ETFs.

    5. Osmosis has launched a Bitcoin bridge, introducing BTC to its Cosmos-based DEX. The integration with the decentralized Bitcoin bridge Nomic, approved by the Osmosis DAO in June, went live this week. Users can now deposit BTC on the Bitcoin network to receive alloyed BTC (allBTC) on Osmosis. Matt Bell, CEO of Turbofish, highlighted that Nomic's fully decentralized flow eliminates intermediaries like Bitgo or Coinbase. This move aligns with broader efforts to tap into Bitcoin’s massive liquidity, boosting its role in decentralized finance.

Founding & Partnerships:

1. Union Labs has raised $12M in a Series A funding round led by Gumi Cryptos Capital and Longhash Ventures, with participation from Borderless Capital and angels from Polygon, Celestia, and Berachain. The funds will expand the core team, strengthen partner integrations, and boost ecosystem growth. Union's modular zero-knowledge (ZK) interoperability layer aims to streamline asset transfers between Ethereum and Cosmos. The project is also exploring Bitcoin DeFi by addressing scripting limitations for secure cross-chain transfers. Mainnet is set to launch in early 2025.

Disclaimer: The information disclosed here does not constitute an investment advice ; it is for informational purposes only and does not constitute investment advice. You should do your own research while investing in crypto and only invest money you are ready to lose.