August 18, 2024
Weekly: Latest Updates and Insights
US Economic Indicators for July 2024: In July 2024, the US reported a seasonally adjusted core Consumer Price Index (CPI) increase of 0.2%, aligning with expectations and up from a previous value of 0.1%. The unadjusted CPI year-on-year rate stood at 2.9%, slightly below the anticipated 3.0%, while the unadjusted core CPI year-on-year rate decreased to 3.2%, marking the lowest level since April 2021 and a decline for the fourth consecutive month.
Additionally, initial jobless claims for the week ending August 10 were recorded at 227,000, lower than the expected 235,000, indicating the fewest claims in five weeks. Continuing claims for the week ending August 3 were 1.864 million, also below the forecast of 1.875 million. Retail sales in July surged by 1%, the largest increase since January 2023, alleviating concerns about a potential economic slowdown.
Following the CPI data release, market expectations for a 25 basis point interest rate cut by the Federal Reserve in September rose from 47.5% to 62.5%. Although the initial market reaction was positive, gains were quickly reversed due to the US government’s transfer of 10,000 BTC to Coinbase Prime and the sale of 17,000 ETH by Jump Trading, leading to a decline in short-term options volatility for both BTC and ETH.
Unlikely Rate Hike for BOJ This Year: A former board member of the Bank of Japan (BOJ) has stated that another interest rate hike is unlikely to occur this year, suggesting that the central bank will maintain its current monetary policy. This perspective aligns with the ongoing economic conditions and the BOJ’s cautious approach to managing inflation. The comments reflect a broader sentiment that the BOJ may prioritize stability over aggressive rate adjustments in the near future.
Morgan Stanley Becomes Top Holder in BlackRock Bitcoin ETF: Morgan Stanley has disclosed ownership of 5.5 million shares in BlackRock’s spot Bitcoin ETF as of June 30, according to a recent SEC filing. This significant investment positions Morgan Stanley among the top five holders of the ETF. The move underscores the growing institutional interest in Bitcoin and related financial products.
Norwegian Sovereign Wealth Fund Increases Bitcoin Holdings: The Norwegian sovereign wealth fund, Norges Bank Investment Management (NBIM), has increased its indirect ownership of Bitcoin to 2,446 BTC, marking a rise of 938 BTC since the end of 2023. This growth is attributed to algorithm-based sector weighting and risk diversification rather than a deliberate strategy to acquire Bitcoin, as indicated by analyst Vetle Lunde. By mid-2024, this indirect exposure translates to approximately $27 worth of Bitcoin for every Norwegian citizen, highlighting Bitcoin’s integration into diversified investment portfolios.
SEC Probes Venture Capitalists Over Uniswap Operations: The SEC has initiated inquiries into several venture capital firms regarding their involvement with the decentralized exchange Uniswap. This investigation aims to clarify the regulatory status of decentralized finance (DeFi) platforms and the responsibilities of investors in such ecosystems. The move reflects the SEC’s ongoing efforts to ensure compliance and oversight in the rapidly evolving crypto market.
Marathon Digital Certifies Bitcoin as “Made in USA”: Marathon Digital has announced that it will now stamp all Bitcoin mined in the United States with a “Made in USA” label. This initiative aims to promote transparency and highlight the company’s commitment to domestic mining practices. By branding its Bitcoin in this way, Marathon seeks to differentiate its products in the competitive cryptocurrency market and appeal to consumers who value American-made goods.
MetaMask Launches Blockchain-Based Debit Card with Mastercard and Baanx: MetaMask, a popular cryptocurrency wallet, has initiated the rollout of a blockchain-based debit card developed in partnership with Mastercard and Baanx. This new card aims to provide users with a convenient way to spend their digital assets in the real world, bridging the gap between the crypto and traditional financial systems. The collaboration between MetaMask, Mastercard, and Baanx showcases the growing integration of blockchain technology into mainstream financial services.
Venezuela Blocks Binance Amid Presidential Election Dispute: Venezuela has taken steps to block access to Binance as tensions rise over the ongoing presidential election dispute in the country. The government’s actions are part of a broader strategy to control financial transactions and limit the influence of foreign platforms during a politically sensitive period. This move underscores the challenges faced by cryptocurrency exchanges in countries experiencing political instability and regulatory scrutiny.
Vitalik Buterin Donates All Animal Meme Coins to Charity: Ethereum co-founder Vitalik Buterin has completed a donation of 200 ETH, valued at approximately $532,000, to the Effective Altruism Fund’s Animal Welfare Fund, derived from animal-themed meme coins received over the past year. He expressed a preference for direct allocations of cryptocurrency to charities, advocating for more sophisticated public goods funding methods in 2024. Buterin’s actions highlight his commitment to leveraging cryptocurrency for charitable purposes while encouraging the community to rethink the impact of meme coins.
Ethereum Gas Fees Hit 5-Year Low: The median gas fee on the Ethereum network has reached a new five-year low, with the fee dropping below 2 gwei on August 10, 2024. Due to the significantly reduced gas fees, the number of ETH destroyed daily on the Ethereum network has dropped to a yearly low, with only 210 ETH being burned last Saturday. The low gas fees have prompted Etherscan to retain three decimal points in its gas tracker to improve accuracy, with the basic fee of block 20496029 recorded as 0.614 gwei, the lowest fee of the week.
Fundraising:
Binance Labs Invests in MyShell to Enhance AI Ecosystem: Binance Labs has announced its investment in MyShell as part of its Incubation Season 6, aiming to expand an open ecosystem for AI creators. This partnership is set to bolster the development and scalability of innovative AI solutions.
Chaos Labs Secures $55 Million to Address On-Chain Risk Management Needs: Chaos Labs has successfully raised $55 million to enhance its on-chain risk management solutions, reflecting the growing demand in the decentralized finance sector. This funding aims to bolster the company’s capabilities in providing robust risk assessment tools for blockchain applications.
Sling Money Raises $15 Million Series A to Revolutionize Global Payments: Sling Money has secured $15 million in a Series A funding round led by Union Square Ventures, Ribbit Capital, and Slow Ventures to enhance its global money transfer app. The platform utilizes stablecoin technology to facilitate instant, low-cost transactions across over 50 countries, aiming to simplify and expedite the global payments landscape.
Sahara AI Secures $43 Million to Develop a Collaborative AI Economy: Sahara AI has raised $43 million in funding led by Pantera Capital, Binance Labs, and Polychain Capital to launch a decentralized blockchain platform focused on AI sovereignty and provenance. This investment aims to enhance the platform’s capabilities, ensuring secure control and fair compensation for users and contributors in the rapidly evolving AI landscape.
Intent-Centric Ethereum L2 Secures Essential Funding for Development: An intent-centric Ethereum Layer 2 solution has successfully raised significant funding to enhance its infrastructure and user experience. This investment aims to streamline transaction processes and improve scalability within the Ethereum ecosystem.
Reddio Completes Seed Round Funding to Advance EVM Layer 2 Development: Reddio has successfully completed its seed round funding, led by Paradigm and Arena Holdings, to accelerate the deployment of its high-performance parallel EVM Layer 2 solution. This funding is expected to significantly boost the adoption and functionality of the platform within the Ethereum ecosystem.
375ai Raises $5 Million in Seed Funding to Enhance Edge Data Intelligence: 375ai has successfully secured $5 million in seed funding, led by 6th Man Ventures and supported by several other investors including Arca and Auros. The funding will be utilized to advance the development of its decentralized edge data intelligence network, which aims to transform data collection and analysis through innovative AI technology.
ION Protocol Secures Funding to Enhance Decentralized Finance Solutions: ION Protocol has successfully raised funding to support the development of its innovative decentralized finance (DeFi) solutions. This investment will enable the protocol to expand its offerings and improve user experience within the DeFi ecosystem.
Rivalz Network Secures $9 Million to Enhance AI Intelligence Infrastructure: Rivalz Network has raised $9 million in funding to further develop its AI intelligence infrastructure, aiming to improve data processing and analytics capabilities. This investment will support the network’s efforts to create advanced solutions for businesses leveraging artificial intelligence technologies.
ParaFi Capital Leads $10 Million Series A Investment in Parfin: Parfin, a company developing a permissioned Ethereum Layer 2 blockchain, has raised $10 million in its Series A funding round led by ParaFi Capital, with additional participation from Framework Ventures and others. The funding will support the growth of its Rayls network, aimed at bridging decentralized finance (DeFi) and traditional finance (TradFi) for enterprise applications, particularly in Latin America.
1kx Raises $5 Million in Seed Round to Propel Rhinestone Development: 1kx has successfully secured $5 million in a seed funding round to advance its Rhinestone platform, which focuses on enhancing decentralized finance (DeFi) solutions. This investment will enable the team to expand its offerings and improve user engagement within the DeFi ecosystem.
Satflow Raises $7.6 Million Seed Round to Enhance Bitcoin Trading Experience: Satflow has successfully raised $7.6 million in a seed funding round led by Variant Fund to develop a superior trading experience on the Bitcoin network. This capital will facilitate the advancement of their platform, aiming to optimize trading capabilities for users.
Multicoin Capital Leads $3.5 Million Seed Round for Crunch Lab: Crunch Lab has raised $3.5 million in seed funding, led by Multicoin Capital, to support its development of CrunchDAO, a platform for AI researchers to engage in distributed machine learning competitions. This funding brings the startup’s total capital raised to $5.3 million, with plans to generate an additional $2 million in annual recurring revenue through collaborations with financial institutions.
Orderly Network Secures $5 Million in Strategic Funding: Orderly Network has raised $5 million in strategic funding to enhance its decentralized trading infrastructure. This investment will support the development of its platform, aiming to improve liquidity and trading efficiency within the decentralized finance ecosystem.