Token Chronicle - Week 3 November 2024

Top cryptos

Meme of the week

Market update: The market continues its momentum. BTC’s ATH was $92K last week, and it’s now at $99K. Will we surpass $100K today or in the coming days? It’s likely, although $100K could act as a strong resistance level (with programmed sell trades at this price). How can we anticipate what’s next for the end of the year? Surpassing the $100K mark will be highly symbolic, potentially drawing significant attention from traditional media and prompting retail investors to join. Could this push BTC toward $110K–$120K in 2024? Or will this milestone be followed by a major year-end correction (with massive profit-taking and a market rebound in late January)?

Uncertainty abounds despite the increasingly bullish news: the confirmed departure of G. Gensler from the SEC on January 20, 2025, the upcoming launch of a Solana ETF, new BTC products, and massive BTC investments by large companies. Beyond BTC, the market is following suit: ETH gained 8% yesterday, and Solana also delivered strong performance.

International:

1. After introducing a bill to allow the U.S. to acquire 1 million bitcoins, Senator Cynthia Lummis proposes funding these purchases with gold. Currently, the U.S. government holds over 200,000 BTC from seizures. The Bitcoin Act would allow it to keep these and acquire 200,000 additional BTC per year until reaching 1 million, representing approximately 5% of Bitcoin’s market cap, valued at over $87 billion at today’s prices. This reserve would be subject to a minimum 20-year holding period. Comparatively, a private entity like MicroStrategy has acquired 279,420 BTC and continues to increase its holdings.

2. A Dutch company backed by Tether is launching 2 MiCA-compliant stablecoins: As the MiCA regulation nears full implementation, a Dutch company funded by Tether and Kraken plans to launch 2 stablecoins in Europe—one pegged to the U.S. dollar and the other to the euro. Quantoz Payments, a Netherlands-based company, announced the upcoming release of USDQ and EURQ. Currently, within the European Union, Circle’s EURC and Société Générale’s EURCV dominate the market, holding nearly 67% market share. The arrival of EURQ offers investors a MiCA-compliant alternative, potentially shifting the market dynamic.

3. In recent months, Donald Trump has shown significant involvement in the cryptocurrency world. He is reportedly in advanced talks to acquire a crypto subsidiary of Intercontinental Exchange (ICE). At the center of these negotiations is Bakkt, an exchange created by ICE to provide institutional tools for adopting cryptocurrencies. Bakkt has partnered with Google, Mastercard, and Starbucks.

4. Russia is working toward clear regulations to manage its booming cryptocurrency sector. The government has proposed measures, including taxing crypto-related income. One proposal involves exempting VAT for crypto transactions, aimed at increasing adoption within Russia. However, trading and mining income will be taxed like securities transactions. Investors, solo miners, and businesses will be taxed through corporate profit and personal income taxes, with a maximum rate of 15%.

5. To save electricity during its third winter of war against Ukraine, Russia has banned cryptocurrency mining in certain regions for the coming months. Winter sees a spike in electricity usage due to heating. To prevent shortages, several federal districts face restrictions, including parts of the North Caucasus, Irkutsk Oblast, and occupied areas of Ukraine. For most regions, the ban lasts until March 2025, while some areas face multi-year prohibitions. In occupied Ukraine and the North Caucasus, the ban extends until 2031.

6. Donald Trump is considering creating the first-ever White House position dedicated to cryptocurrencies. This team would be fully responsible for developing the crypto ecosystem, ensuring coordination with Congress, the SEC, and the CFTC.

7. President-elect Donald Trump has nominated former SEC Chair Jay Clayton to lead the U.S. Attorney's Office for the Southern District of New York. Known for his role in shaping crypto policy, Clayton oversaw the SEC's DAO Report and supported the view that most ICOs are securities. His tenure included the SEC's lawsuit against Ripple Labs, now in appellate court. Clayton currently advises multiple crypto firms and serves as a senior policy advisor at Sullivan & Cromwell. And has nominated Howard Lutnick, CEO of Cantor Fitzgerald and a prominent bitcoin advocate, as Secretary of Commerce. Lutnick, who reportedly holds significant bitcoin exposure, has pushed for global bitcoin trading freedom and supported stablecoins like USDT, asserting its full backing with reserves in U.S. Treasuries, bitcoin, and gold. While some had hoped Lutnick would be nominated for Treasury Secretary, his role at Commerce would focus on economic growth, innovation, and job creation, pending Senate confirmation.

8. Fed Chair Jerome Powell signaled no new quick rate cuts, citing economic strength and the need for a "measured" approach. His focus remains on controlling inflation, impacting crypto markets that thrive on expectations of easing policies. Strong economic indicators give the Fed time to act cautiously.

9. Gary Gensler, SEC Chair, will step down completely when Donald Trump takes office in January, the SEC confirmed. His resignation, effective Jan. 20 at noon, marks the end of his aggressive regulatory approach toward crypto. Gensler called the SEC a "remarkable agency" and thanked President Biden and his colleagues for their service.

Regulation / Judicial Affairs / Cybersecurity:

1. On Thursday, 18 U.S. states filed a lawsuit against the SEC and Gary Gensler, accusing them of exceeding their regulatory authority over cryptocurrencies. These states demand public declarations acknowledging that many actors were unfairly prosecuted.

2. A couple accused of transferring 120,000 BTC (worth $71 million) in 2016 following the Bitfinex hack faced trial. The husband, Ilya Lichtenstein, known as "Dutch", was sentenced to 5 years in federal prison in Washington, D.C. His wife’s verdict is pending. At today’s prices, this theft would represent a loss of over $10 billion.

3. A lawsuit accusing Elon Musk of manipulating Dogecoin prices has been dropped. Plaintiffs initially sought $258 billion in damages, citing Musk’s tweets about sending DOGE to the Moon and its potential to become the new financial standard. The judge dismissed the case, stating that no reasonable investor would rely on such claims. Following an appeal, plaintiffs have withdrawn their case, ending the proceedings.

4. Sui blockchain, dubbed a “Solana killer,” experienced its first major mainnet outage, halting block production for 2 hours. Sui confirmed that the issue stemmed from an algorithm governing its transaction validation process. Similar outages had previously occurred on its testnet. This marks the first significant incident since Sui launched its mainnet in May 2023.

5. South Korea’s financial watchdog alleges that Upbit violated KYC rules in over 500,000 cases, including approving accounts with incomplete ID verification. Potential fines could reach 100 million won ($71,740), and its license renewal may be at risk. The Financial Services Commission is also scrutinizing the monopolistic dominance of Upbit, which handled $50 billion in October transactions and ranks fifth globally by daily trading volume.

6. The SEC is engaging with spot Solana ETF applicants, including VanEck, 21Shares, Canary Capital, and Bitwise, signaling possible progress. Optimism is growing under President-elect Trump's pro-crypto administration for approvals in 2025. Sources expect 19b-4 filings soon, initiating a 240-day decision window. The SEC previously approved 11 spot Bitcoin ETFs in January and eight Ethereum ETFs in July.

Traditional Finance:

1. Donald Trump’s election is already influencing the crypto ecosystem. Solidion, a Nasdaq-listed company specializing in battery technologies, announced that it would convert its treasury into BTC in anticipation of a pro-crypto administration. Solidion plans to allocate 60% of its excess cash to Bitcoin, convert interest into BTC, and dedicate part of future fundraising to Bitcoin acquisitions.

2. Goldman Sachs now holds over $718 million in Bitcoin ETFs, according to its latest SEC filings. This valuation is based on the September 30th closing price. With Bitcoin prices up 45% since then, Goldman’s holdings could exceed $1 billion, barring changes in portfolio allocation. A clearer picture will emerge with the next filing due December 31st.

3. Bitcoin ETF options could be approved soon, as the CFTC issued its opinion. Following the SEC’s approval of options trading for BlackRock’s spot Bitcoin ETF in September, the CFTC’s move signals the potential for greater crypto integration into traditional finance.

4. MicroStrategy made its largest Bitcoin purchase ever, spending $4.6 billion to acquire 51,782 BTC. The company now holds nearly $30 billion in Bitcoin and remains the largest corporate holder globally. It is followed by MARA Holdings (27,562 BTC) and Riot Platforms (10,928 BTC).

5. Goldman Sachs plans to create a dedicated entity for its blockchain platform, GS DAP, to expand its reach. GS DAP facilitates on-chain tokenization of real-world assets like debt products. This move underscores the increasing adoption of real-world asset tokenization within traditional finance.

6. Rush for cryptocurrencies? Companies continue to build reserves in Bitcoin (BTC): If MicroStrategy was a pioneer in cryptocurrencies, the company is no longer alone. Following Donald Trump's election in the United States, more and more companies confirm the constitution of reserves in Bitcoin or Ether (ETH). This week, two other names emerged: Genius Group, an artificial intelligence company based in Singapore, announced yesterday the purchase of 110 BTC for its treasury, a sum equivalent to $10 million at the current rate. The company’s CEO, Roger Hamilton, directly named MicroStrategy as an inspiration and confirmed he would release a podcast to encourage other companies to follow suit. In the United States, it is Cosmos Health, a healthcare company, that also confirmed yesterday the constitution of reserves in Bitcoin and Ether. According to CEO Greg Siokas, this move is both a hedge against inflation and a deep conviction.

   Michael Saylor, co-founder of MicroStrategy, the private entity holding the largest Bitcoin (BTC) reserves worldwide, has taken on a significant challenge: convincing Microsoft’s board of directors to establish a strategic BTC reserve. After hearing of NCPPR’s proposal for Microsoft, Saylor suggested a meeting with Satya Nadella, Microsoft’s CEO, to discuss the creation of such a reserve.

   The video-sharing platform Rumble is considering adding Bitcoin (BTC) to its treasury, with Michael Saylor’s assistance. Positioned as an alternative to YouTube, Rumble has gained prominence in the political sphere, particularly among American conservatives. Its investors include JD Vance, the current Vice President-elect, and Vivek Ramaswamy, the billionaire collaborating with Elon Musk on the future "DOGE" department. The company has garnered renewed interest since Donald Trump's election earlier this month. Its CEO, Chris Pavlovski, is now exploring the addition of Bitcoin to the company’s treasury.

7. Printemps department stores in Paris accept cryptocurrencies after collaboration with Binance and Lyzi: Through a partnership with Lyzi and Binance Pay, the Printemps department store chain now accepts payments in cryptocurrencies. Customers can spend BTC, ETH, stablecoins, and various other cryptocurrencies while shopping at the iconic store founded in 1865 on Boulevard Haussmann in Paris.

8. JPMorgan analysts foresee potential regulatory clarity for crypto under President-elect Trump, with key legislation like the FIT21 Act and stablecoin laws possibly advancing quickly. The SEC may adopt a collaborative approach, easing litigation risks for firms like Coinbase. Banks could gain approval to custody crypto assets, and ETFs, tokenization, and M&A activities may thrive. While CBDC development could stall, analysts doubt the approval of Senator Lummis’ BITCOIN Act for a U.S. bitcoin reserve.

9. Goldman Sachs is planning to spin off its digital assets platform into a standalone company within 12-18 months, pending regulatory approval, Bloomberg reports. Partnering with Tradeweb Markets, the new firm aims to help financial institutions create, trade, and settle blockchain-based assets. Goldman, which launched its crypto desk in 2021 and digital platform in 2022, reports growing hedge fund interest in crypto products this year.

10. BlackRock's IBIT spot Bitcoin ETF saw a record-breaking $1.9 billion in notional options trading on its first day, dwarfing ProShares BITO's $363M debut in 2021. With a call-to-put ratio of 4.4:1, the activity likely fueled Bitcoin's climb to a new all-time high, per Bloomberg analysts. Increased ETF options trading could reduce Bitcoin's volatility by boosting market liquidity and depth. Options for ETFs from Bitwise and Grayscale are set to follow.

11. Mastercard's Multi-Token Network (MTN) has integrated with JPMorgan’s Kinexys (formerly Onyx) to enhance B2B cross-border payments. The collaboration aims to improve transparency, speed, and settlement, reducing time zone challenges. Mutual customers can now settle transactions via a single API. MTN focuses on tokenized bank deposits, stablecoins, and CBDCs, leveraging Kinexys' digital payment solutions. Executives from both firms highlight the integration's potential to transform global commerce and digital assets.

Ecosystem/Tech News:

1. On Thursday, Tether unveiled Hadron, a platform for the tokenization of real-world assets, supporting stocks and bonds. As the topic of real-world asset (RWA) tokenization continues to grow in importance within the financial sector, Hadron aims to address this space. The platform’s value proposition is to tokenize “everything” on a blockchain: “Tether, the largest company in the digital asset sector, today announced the launch of Hadron by Tether, a platform designed to simplify the tokenization of everything, from stocks to bonds, stablecoins, loyalty points, and more.”

   Hadron positions itself as a toolkit for “nation-states and enterprises.” Additionally, the platform incorporates anti-money laundering (AML) and Know Your Customer (KYC) verification solutions.

2. The Kryll³ platform, supported by Google, opens early access: After extensive testing cycles, Kryll³ has granted early access to its new platform version, allowing fifty users to explore its major update. Soon to be available to the general public, this Google-backed Web3 platform provides powerful tools for portfolio tracking, market analysis, and decision-making, all enhanced by AI. Kryll³ is built on a hybrid architecture offering an enriched experience through advanced artificial intelligence, Kortexflow. This innovative AI model has real-time access to the entire Web3 data ecosystem (prices, volumes, project details, social flows, narratives, user portfolios, media sources, etc.) to effectively assist cryptocurrency investors.

   For instance, SmartFolio allows users to visualize a unified portfolio spanning blockchains like Ethereum and Solana, as well as Layer 2 networks such as Polygon, Base, and Arbitrum. Users can get an overview of their cryptocurrencies or focus on specific networks while receiving personalized analyses from Agent K, an AI assistant designed to provide relevant insights based on portfolio data.

3. NVIDIA reports impressive financial results for Q3 of fiscal year 2025, with a spectacular increase in revenue driven by artificial intelligence and data centers. The company posted a record quarterly revenue of $35.1 billion, marking a 17% increase compared to the previous quarter and a 94% increase year-over-year. These results are primarily attributed to massive demand for its graphics processing units (GPUs) in the fields of artificial intelligence (AI) and data centers. However, logistical challenges and cautious forecasts temper market enthusiasm.

4. Monad, an Ethereum-compatible Layer 1 blockchain, has launched its testnet, following a devnet debut in March with 10,000 TPS in testing. Featuring EVM bytecode compatibility and a pipelined architecture, Monad offers 1-second block times and higher throughput. However, its node operations require double the hardware compared to Ethereum. The MON token will cover transaction costs and execution fees. Backed by $225M from Paradigm, Electric Capital, and Coinbase Ventures, Monad aims to attract Ethereum dApp developers.

5. Securitize has launched the "sToken" to boost liquidity for real-world assets (RWAs) while maintaining yield generation, using the ERC-4626 token standard. The first integration is BlackRock's BUIDL token, backed by short-term U.S. Treasuries, within Securitize's deUSD RWA Institutional Program, developed alongside Elixir. The mechanism involves wrapping RWAs into sTokens, which mint deUSD, a synthetic dollar, while the RWAs continue generating yield. This approach aims to solve regulatory and composability issues in DeFi, with plans to expand to other funds like Hamilton Lane's SCOPE.

6. Digital Currency Group (DCG), led by Barry Silbert, has announced Yuma, a new company focused on decentralized AI within the Bittensor ecosystem. Bittensor incentivizes users to contribute data and computing power for tasks like translation, data storage, and complex protein prediction, creating a decentralized AI network. Silbert likens Bittensor to "the World Wide Web of AI," emphasizing its potential to rival centralized tech giants by distributing computational resources and improving transparency. Decentralized AI could mitigate concerns about data centralization and opacity associated with companies like Microsoft and Google.

7. Worldcoin, rebranded as "World Network," uses iris scans for digital passports to distinguish humans from bots online. Now, crypto veterans, including Lido's co-founders, are launching “Y”, a blockchain identity platform designed to rival World Network—without the controversial orb technology. An internal document outlines Y's vision for blockchain-based identity, aiming for a less intrusive approach to identity verification in the AI-driven internet.

8. Aave, the largest DeFi lender, is gauging community interest in deploying on Bitcoin's Layer 2 Spiderchain. The proposal by Botanix Labs aims to bring DeFi features to Bitcoin, leveraging its deep liquidity. Aave holds over $17B in TVL and seeks to expand its ecosystem. Interest follows Bitcoin’s recent $90K price surge. This reflects growing demand for Bitcoin-based DeFi solutions.

9. Morpheus, one of several blockchain projects seeking to decentralize artificial intelligence, is up and running in the wild, the team behind it announced Monday. Like other decentralized AI networks, Morpheus seeks to curtail the negative side effects of AI, such as centralization, censorship, and monopolistic control of data. Morpheus was built using the codebase for Lumerin, a protocol that runs on the Arbitrum blockchain (which itself is a layer-2 running atop Ethereum, the largest smart contract network). The network's native MOR token works on L2s Arbitrum and Base; on the main Ethereum chain; and on DeFi protocols Uniswap and Aerodrome.

Bitcoin vs. Gold and Silver: A Comparison of Value and Transparency

Bitcoin's Unique Value: Accountability
Bitcoin's core value lies in its unparalleled accountability. At any given moment, we know:

• The exact number of bitcoins mined.

• The addresses holding those coins.

• How long those coins have remained unmoved.

However, what remains unknown is the number of coins lost forever—BTC tied to private keys that are destroyed, misplaced, or otherwise inaccessible. Estimates suggest around 20% of all BTC (3.7 million BTC, worth $318 billion) may never move again. While private keys for these coins are gone, their locations remain visible onchain.

Gold and Silver: A Clouded Picture
In contrast, gold and silver lack Bitcoin's transparency.

• Gold: As of last year, the World Gold Council estimated 212,582 tonnes of gold had been mined. Of this:

  • 45% is in jewelry.

  • 22% is in bars and coins.

  • 17% is held by central banks.

  • The remainder is dispersed in various forms worldwide.
    The total mined gold is valued at approximately $18 trillion, but the amount readily available for market trading is unknown.

• Silver: According to the 2019 CPM Group Silver Yearbook, 1.751 million metric tonnes of silver have been mined to date. At current prices, this would place silver's market cap near $1.9 trillion. Yet, how much silver is truly accessible remains unclear. A 2021 gold-focused blog even sized silver's financial market value (excluding industrial and jewelry uses) at just $108 billion—significantly smaller than Bitcoin's current $1.8 trillion market cap.

Bitcoin Flipping Silver and Gold
Permanently surpassing silver would mark a milestone for Bitcoin.

• To flip silver, Bitcoin’s price would need to reach $96,000.

• To eclipse gold, Bitcoin would require a staggering price of $910,000.

For now, Bitcoin continues to stand out for its transparency and traceability, traits gold and silver cannot match.

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.