Token Chronicle - Week 2 August 2024

Top cryptos

Meme of the week

Quick bites:

• For the first time, Kamala Harris and Donald Trump are tied on Polymarket.

• A NY judge gives final approval for FTX and Alameda Research to repay $12.7 billion to their creditors.

• Japanese company Metaplanet has taken out a $6.8 million loan to buy more BTC. Thanks to its Bitcoin reserves, MicroStrategy has made a profit of over $5 billion; could this business strategy become more widespread?

• JPMorgan indicates that the chances of a US recession by the end of the year are now 35%.

• The Supreme Court of Montenegro has postponed the extradition of Do Kwon to South Korea while awaiting a ruling on his request for legal protection.

• On August 8, Putin signed a law legalizing crypto mining in Russia. El Salvador might start using BTC for its transactions with Russia.

• Blackrock & Fidelity now hold a combined total of 524,390 BTC, worth $31.6 billion for their BTC spot ETFs (over 500K BTC out of the 21 million BTC).

• Marathon Digital announces that it is now marking “Made in USA” on every BTC block it mines.

• The liquidators of 3AC are claiming $1.3 billion related to the collapse of the TerraUSD stablecoin and its associated token Luna, which occurred in May 2022.

• US annual inflation falls to 2.9%, below the 3% expectations.

• Binance agrees to pay $1.7 million to the Brazilian regulator to close an investigation into unauthorized derivatives products.

• Ethena’s USDe stablecoin arrives on Solana (SOL): On Wednesday, Ethena Labs announced that its USDe stablecoin is expanding to a new blockchain by launching on Solana (SOL).

• A DEFI project "that will disrupt the banking world" was teased by Donald Trump's son.

• Crypto.com signs a groundbreaking partnership with UEFA for the Champions League: For the first time in history, a crypto platform has partnered with UEFA.

• Blockchain platform Sahara AI secured $43 million in funding to advance its decentralized service focused on sovereignty and provenance in AI.The round was led by Pantera Capital, Binance Labs, and Polychain Capital, with contributions from Samsung, Matrix Partners, and more.

• MetaMask has launched its blockchain-based debit card in partnership with Mastercard and Baanx. Available to select users in the EU and UK, the card lets you make direct purchases using cryptocurrencies like USDC, USDT, and wETH from your MetaMask wallet.

• Binance resumes operations in India.

• $ETHE ETF outflows are slowing—ETH pump loading ⛽! The Grayscale Ethereum ETF ($ETHE) just had its first day without outflows.

Market update: The crypto market has recovered well from last week’s crash, with BTC fluctuating between $58K and $63K. US figures this week are good (2.9% inflation compared to the expected 3%), but there is still downward pressure from MtGox and Grayscale (on ETH). Long-term prospects remain bullish with interest rate cuts, flows into ETFs, more clarity on US regulation, and potential government reserve launches in BTC. Goldman Sachs estimated the probability of a US recession this year at 25% and has positioned $420 million in BTC on US ETFs. Moreover, this dip period has been marked by massive purchases from "Whales" and institutions.

Main points this week:

• Ripple (XRP) fined $125 million in SEC lawsuit: After winning a battle against the SEC last year, Ripple (XRP) will now pay a $125 million civil penalty. Despite the significant amount, Ripple views this outcome positively. CEO Brad Garlinghouse considers it a victory, given that the SEC had initially sought a $2 billion fine.

• Grayscale invests in SUI and TAO with two new crypto funds: Grayscale has unveiled two new crypto investment funds: one based on Bittensor's TAO token, which combines AI and blockchain, and the other on the SUI token from the SUI blockchain. These new funds join Grayscale’s existing 18 investment products. The Grayscale Bittensor Trust is based on Bittensor's TAO token, aiming to build a collaborative and decentralized AI market.

• Solana deploys urgent patch to prevent another outage: Solana ecosystem users recently identified a security flaw that could have allowed a cyber attacker to target the blockchain. Developers and validators quickly worked to fix this vulnerability. On X, Solana validator Laine announced the security flaw discovered on August 7, confirmed by several members of the Solana Foundation.

• Tether to double its workforce: Tether, the issuer of the USDT stablecoin, plans to double its workforce by mid-2025. Paolo Ardoino, Tether's CEO since December 2023, revealed this information to Bloomberg News. The firm, with its flagship stablecoin currently valued at nearly $115 billion, aims to reach 200 employees by the end of the first half of 2025.

• XRP back in the spotlight with end of SEC trial and Ripple's new stablecoin: Ripple announces the testing phase of its Ripple USD (RLUSD) stablecoin, aimed to compete with USDT and USDC. The new stablecoin is now being integrated on mainnet.

• Bitcoin surpasses Visa in transaction volume in 2024: Despite its reputation for being slow and expensive, Bitcoin has exceeded Visa in transaction volume during the first half of 2024, reflecting growing blockchain adoption.

• BitGo decentralizes WBTC issuance with Justin Sun partnership: BitGo has announced a move to decentralize Wrapped Bitcoin (WBTC) issuance through a partnership with Justin Sun. This decision raises concerns among investors due to Sun’s controversial reputation. Following this news, Coinbase plans to launch a competitor, cbBTC, which could strengthen Coinbase's dominance in the Bitcoin ecosystem, raising market balance concerns.

• Trump and Musk discuss on X, drawing nearly a million live listeners: During a Space on X, Donald Trump and Elon Musk discussed the economy, immigration, and regulations, without touching on cryptocurrencies despite anticipation. Trump criticized the Biden administration for inflation, reiterated his stance on illegal immigration, and critiqued the FDA’s drug approval process. Musk proposed a "government efficiency commission" and expressed interest in contributing to a Trump administration if re-elected. No discussion on cryptocurrencies occurred.

• Germany’s KfW bank explores asset tokenization with ECB: KfW, Germany’s main development bank, is partnering with Boerse Stuttgart Digital to issue a digital bond on blockchain, as part of the ECB’s experiments with asset tokenization and financial process modernization. This partnership will provide KfW with the necessary tools to manage portfolios and secure private keys during asset issuance and redemption, in line with the German Electronic Securities Act (eWpG).

Discover a tool: Let’s talk about community building in Web3 that mainly takes place in Telegram/Discord but can also be the purpose of tools like Zealy (Zealy - Join the next big thing)

In the dynamic world of crypto and blockchain, community building is crucial for the success of new projects. Zealy (formerly known as Crew3) has emerged as a powerful tool in this regard, offering a platform where projects can engage users and build a loyal following. Through Zealy, new projects can incentivize community participation by setting up campaigns where users complete specific actions—such as following social media accounts, joining discussions, or sharing content—to earn points. These points not only foster engagement but also create opportunities for users to qualify for airdrops or other rewards. By gamifying participation and rewarding active contributors, Zealy helps projects grow their communities organically, encouraging users to become more involved and invested in the project's success.

Let’s talk about: DePIN (Decentralized Physical Infrastructure Networks) ; you have a complete analysis here: Project Presentation - DePIN (beehiiv.com)

"DePIN," which stands for "Decentralized Physical Infrastructure Networks," represents a revolution in how we design and interact with essential physical infrastructures. They use blockchain technology to create networks where each participant can contribute to and benefit from the collective infrastructure. The idea is to involve more small players by asking them to provide some of their resources (such as storage, energy, computing power, etc.). In return, these players are "incentivized" with cryptocurrency. 

DePINs are often represented by the Network Flywheel: 

The Flywheel model allows DePIN projects to grow rapidly and exponentially. 

Each new contribution strengthens the entire infrastructure, attracting new users and contributing to constant evolution. This growth dynamic is a key component of DePINs' ability to reshape traditional infrastructures. This solution allows for better optimization of "fungible" resources, whether it's computing power, energy, or data, among others. In turn, these resources are either directly consumed by businesses or, more often, leveraged in their own products and services. For example, decentralized networks like Hivemapper sell data directly to transport companies like Uber, which then use the data to improve their product offerings. Below are three DePIN use-cases: 

Hivemapper: A decentralized mapping platform that uses a global community to capture and update maps with street-level imagery collected by Hivemapper Dashcams and processed by AI. Contributors earn Hivemapper tokens (HIVE) for their efforts, incentivizing them to maintain high-quality and accurate maps. 

DIMO: A decentralized platform that integrates with vehicles to collect and manage real-world data on vehicle performance and usage. Users are rewarded with DIMO tokens for sharing their data, which supports the development of advanced automotive applications and maintains a valuable, decentralized data ecosystem. 

2Blox: An AI-powered camera system that captures and verifies real-world data (traffic data) using peaq’s decentralized identity (DID) framework. Users earn tokens for providing accurate data and participating in the network, enhancing data quality and creating a reliable, incentivized ecosystem for real-time information validation. 

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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.