September 08, 2024
Weekly: Latest Updates and Insights
Binance Bans Former CEO CZ for Life From Managing the Exchange but There’s a Catch: Binance’s former CEO, Changpeng Zhao (CZ), has been permanently banned from holding any key positions within the exchange following his release from prison on September 29. Although he cannot manage the company directly, his status as the largest shareholder allows him to influence decisions, including the potential to nominate new board members or a CEO, despite the oversight of external monitors appointed by the U.S. Department of Justice to ensure compliance.
Dan Wu Critiques Web3 Gaming, Citing Lack of Passion Among Entrepreneurs: Dan Wu, an early investor in the blockbuster game Black Myth: Wukong, expressed skepticism towards web3 gaming, stating he would never invest in entrepreneurs who do not genuinely love games. Despite significant investment in the web3 gaming sector, Wu believes that true passion is essential for creating quality games, a sentiment that contrasts with the enthusiasm seen in traditional gaming successes like Black Myth: Wukong.
Bank of Japan Board Member Urges Caution on Future Rate Hikes Amid Market Volatility: Hajime Takata, a board member of the Bank of Japan (BOJ), emphasized the need for caution in raising interest rates, indicating that any future hikes will depend on economic and price developments while considering the impact of market volatility on corporate spending. He reiterated the BOJ’s commitment to gradually increasing rates but stressed that they must carefully assess market conditions to avoid discouraging business investment and wage growth, particularly following significant market fluctuations observed in August.
Bitcoin Miners Experience Toughest Month of 2024 as August Earnings Hit Annual Low: Bitcoin miners faced significant challenges in August 2024, with earnings dropping to their lowest point of the year, reflecting a broader trend in the industry. For instance, Bitfarms produced only 233 BTC, down 39% year-over-year, while Riot Platforms reported a production decrease to 322 BTC, highlighting the ongoing difficulties miners encounter amid fluctuating market conditions and increasing operational costs.
DeFi Protocols See Significant Drop in Monthly Fees in August 2024: In August 2024, decentralized finance (DeFi) protocols experienced a 24.4% decrease in monthly fees compared to July, reaching a total of $288.38 million, the lowest point since February. Lido led the fees at $76.18 million, followed by Uniswap, Jito, and PancakeSwap, but the overall DeFi revenue also fell by 19.7% during the month, reflecting a decline in user activity and a shift towards memecoins, as well as a lack of significant innovations from DeFi protocols.
NFT Market Faces Decline as 96% of Tokens Are Considered Dead: The NFT market has experienced significant turmoil, with a staggering 96% of NFTs classified as “dead,” reflecting a sharp decline in trading activity and interest. The average lifespan of an NFT is now just 1.14 years, which is 2.5 times shorter than traditional crypto projects, indicating the speculative nature of the market. As the industry grapples with these challenges, investors are urged to approach NFTs with caution, emphasizing the need for sustainable practices and realistic expectations moving forward.
Trump Promises to Embrace ‘Industries of the Future’ Including Crypto and AI: Former President Donald Trump has pledged to reduce government regulations significantly and establish a government efficiency commission led by Elon Musk if re-elected, aiming to boost the U.S. economy and increase domestic energy production. He emphasized the need for rapid approvals for energy projects to support the growth of artificial intelligence and maintain competitiveness against China, while also promising to eliminate ten regulations for every new one enacted. Trump’s proposals come as he prepares for an upcoming debate against Democratic candidate Kamala Harris, where economic issues are expected to take center stage.
Bitcoin Dips Below $54K as Jobs Report Sparks Crypto Volatility: Bitcoin experienced a volatile trading session following the U.S. jobs report, initially surging to $57,000 before plummeting below $54,000, marking its lowest point since early August. This sharp price swing resulted in nearly $50 million in liquidations across leveraged derivatives positions in just one hour, with major altcoins like Ether and XRP also facing losses of 2-4%. Market participants are now closely watching the Federal Reserve’s upcoming interest rate decisions, as mixed job data has raised questions about the central bank’s approach to rate cuts.
Fundraising:
Why We Invested in Startale Labs: Building the Backbone of Web3: We invested in Startale Labs because it is at the forefront of addressing the challenges within the Web3 ecosystem by providing essential infrastructure and tools, such as the Astar Network and Soneium, which simplify the development of decentralized applications (dApps). The company is crucial for making Web3 technologies more accessible and scalable, particularly in Japan, where strong government support and a tech-savvy population foster innovation. Through its partnership with Sony Group to develop the Soneium blockchain, Startale Labs is poised to play a pivotal role in shaping the future of decentralized digital infrastructure.
PuffPaw Raises $6 Million to Launch Vape-to-Earn Project Aimed at Reducing Nicotine Addiction: PuffPaw, a new vape-to-earn initiative, has successfully raised $6 million in seed funding to develop blockchain-enabled vapes that reward users for reducing their nicotine intake. The project, which records users’ smoking habits on the blockchain, aims to create a self-sustaining ecosystem where users earn tokens for using lower-nicotine cartridges, which can then be redeemed for more products. With backing from prominent investors, PuffPaw seeks to merge health-conscious vaping solutions with decentralized technology, addressing both addiction and the growing demand for innovative consumer products.
Web3 Security Firm Hypernative Raises $16 Million in Series A Funding: Hypernative, a web3 security firm focused on preventing hacks, has successfully raised $16 million in a Series A funding round led by Quantstamp, bringing its total funding to $27 million. The company offers a real-time risk monitoring platform that detects over 200 types of vulnerabilities, including smart contract hacks and market manipulations, and has already served notable clients such as Uniswap and Solana. With the new funding, Hypernative plans to expand its presence in the Asia Pacific and U.S. markets while enhancing its security solutions to protect against the growing number of crypto-related hacks, which have already surpassed $1.2 billion this year.
Pencils Protocol Achieves $80 Million Valuation Amid Community-Driven Growth: Pencils Protocol has successfully completed its latest funding round, achieving an $80 million post-money valuation, reflecting the strength of its community and innovative DeFi offerings. The protocol, which boasts over 237,000 active users and $300 million in Total Value Locked (TVL), is set to launch new products like Advanced Vaults and Auction Platforms aimed at optimizing user returns. With strategic investments from notable firms such as DePIN X and Taisu Ventures, Pencils Protocol is well-positioned for future growth and innovation in the decentralized finance landscape.
Hong Kong’s IDA Raises $6 Million for Fiat-Referenced Stablecoin Development: Hong Kong-based digital asset company IDA has successfully raised $6 million in seed funding to develop its first fiat-referenced stablecoin, HKDA, which aims to be regulated in Hong Kong. The funding round was led by CMCC Global and Hashed, with participation from various investors, including notable angel investors like Raj Gokal, co-founder of Solana. IDA plans to launch HKDA on testnet soon, with a mainnet release targeted for the end of 2024, as it seeks to enhance cross-border trading efficiency through blockchain technology and engage with local regulatory bodies for compliance.
Kroma Raises Series A Funding to Enhance Web3 Accessibility and Infrastructure: Kroma, a leading Layer 2 blockchain solution, has successfully completed its Series A funding round with participation from notable investors such as Asia Advisors Korea and Gate Ventures. The capital will be used to advance Kroma’s infrastructure and expand its functionalities, including the pioneering of Native Account Abstraction within the Superchain ecosystem. CEO Taekyu Park emphasized that this investment reflects strong confidence in Kroma’s technology and vision, positioning the company to further enhance its Layer 2 solutions for a seamless Web3 experience.
Legend of Arcadia Secures $4 Million in Seed Funding to Transform Web3 Gaming: Legend of Arcadia has successfully raised $4 million in seed funding, attracting notable investors such as Animoca Brands, OKX Ventures, Arche Fund, and Selini Capital, which reflects strong confidence in its innovative approach to gaming. The project aims to develop a free-to-access, card-based role-playing game (RPG) that incorporates blockchain technology and features its in-game cryptocurrency, ARCA, to enhance player engagement and ownership. This funding marks a significant milestone in the evolution of Web3 gaming, highlighting the growing trend of integrating decentralized solutions to create more inclusive and economically rewarding gaming experiences.