September 23, 2024
Weekly: Latest Updates and Insights
Federal Reserve lowers interest rates by 0.50 percentage points in first cut since 2020: The Federal Reserve has announced a rate cut to 0.5%, lower than the anticipated 0.25%, marking the first decrease since March 2020. Median predictions indicate two 25-basis-point cuts in 2024, totaling a 100-basis-point reduction. Fed Governor Miki Bowman voted against this move, favoring a 25-basis-point cut, the first dissenting vote since 2005. Fed Chair Jerome Powell stated in a press conference that the 50-basis-point cut will help maintain the strength of the economy and labor market, reflecting the Fed’s confidence in inflation moving towards the 2% target.
The Fed’s actions are more aggressive than expected, with their focus shifting from inflation to employment. Although Powell denied victory over inflation in the press conference, his focus on employment seems pronounced. The Fed has a low tolerance for unemployment rate increases and officials are cautious not to risk jeopardizing the promising outlook of a “soft landing”. Any unemployment rate exceeding 4.4% could potentially trigger further rate cuts. The Fed’s rate cuts are expected to boost demand expansion, keeping U.S. economic growth at a high pace. However, the combination of U.S. expansive fiscal and loose monetary policies in the medium term could increase inflation risks.
The End of Central Bank Dominance: Arthur Hayes on Fed Rate Cuts: Arthur Hayes, co-founder of BitMEX, warns that the anticipated Federal Reserve rate cut could severely impact cryptocurrency markets, potentially leading to significant declines. He argues that this move, while aimed at easing liquidity, may exacerbate inflation and strengthen the Japanese yen, ultimately destabilizing risk assets like Bitcoin. Hayes believes that the era of central banks is ending, with governments likely taking control of liquidity management, which could reshape the financial landscape for cryptocurrencies in the future.
Trump Treats Fans to Burgers with Bitcoin Payment: Former President Donald Trump surprised fans at a New York bar by buying them burgers and paying with Bitcoin, showcasing his support for cryptocurrency. This event took place during a meet-and-greet, where Trump interacted with supporters and expressed his views on digital currencies. The gesture not only delighted fans but also highlighted the growing acceptance of Bitcoin in everyday transactions.
Government Bitcoin Holdings: A Comparative Overview: A recent tweet from Arkham Intel reveals the top government holders of Bitcoin, with the United States leading at an impressive $12.16 billion. The United Kingdom follows with $3.67 billion, while Bhutan holds $782.46 million. This data underscores the growing interest and investment in cryptocurrency by national governments.
CZ Set to Be Released from Prison Next Week: Changpeng Zhao, founder of Binance, is scheduled for release from prison on September 29, 2024, after serving a four-month sentence for violations of the Bank Secrecy Act. His return has sparked speculation about a potential rally in cryptocurrency markets, particularly as Bitcoin could see prices soar to $70,000 in October. Following his release, CZ plans to focus on investing and educational initiatives while Richard Teng continues as CEO of Binance.
SEC Intensifies Scrutiny on Binance’s Token Listing Practices: The U.S. Securities and Exchange Commission (SEC) has filed a proposed amended complaint against Binance, alleging that the exchange improperly promoted certain digital assets as unregistered securities. This complaint revisits previously dismissed charges and emphasizes the SEC’s focus on Binance’s role in token listings and trading processes. The move signals a broader effort by regulators to impose stricter oversight on the cryptocurrency industry.
Jamie Dimon Acknowledges JPMorgan’s Blockchain Leadership: In a recent interview, JPMorgan Chase CEO Jamie Dimon claimed that the bank is likely one of the largest users of blockchain technology, referring to it as “a real user.” While maintaining his skepticism towards cryptocurrencies, which he famously compared to “a pet rock,” Dimon recognized blockchain’s potential for enhancing data sharing and trust in financial transactions. The bank’s Onyx network, launched in 2020 and based on a fork of Ethereum, has processed over $700 billion in transactions, highlighting its commitment to innovative financial solutions.
Tether’s Commitment to Financial Integrity and Inclusion: Tether emphasizes its leadership in the stablecoin market through unparalleled financial transparency, boasting over $118 billion in reserves and significant collaborations with law enforcement to combat financial crime. The company has successfully frozen assets linked to illicit activities while promoting financial inclusion in regions with unstable currencies. By maintaining resilience during market volatility, Tether aims to democratize access to financial services and uphold the integrity of its platform.
Circle Relocates Global Headquarters to New York City: Circle Internet Financial has announced its move to a new flagship headquarters on the 87th floor of One World Trade Center, set to open in early 2025. This strategic relocation underscores Circle’s commitment to building a new internet financial system and enhancing its integration with traditional finance, particularly through its stablecoin, USDC. By establishing itself in the heart of Wall Street, Circle aims to foster collaboration among industry leaders and policymakers, reinforcing its role as a key player in the evolving cryptocurrency landscape.
The Promise of Insurance DAOs: Vitalik Buterin argues that Insurance DAOs are underrated because they allow individuals with similar risk concerns to pool capital and share losses, creating a more balanced incentive structure. This symmetric model encourages fairness among claims judges, as participants are equally at risk of being the next recipient of funds. By drawing on historical precedents, Buterin highlights the potential for decentralized organizations to innovate in risk management and insurance.
Fundraising:
Hemi Labs Secures $15 Million to Launch Innovative Modular Blockchain: Hemi Labs has raised $15 million in a funding round led by Binance Labs to develop the Hemi Network, a modular blockchain that integrates both Bitcoin and Ethereum technologies. The incentivized testnet for Hemi Network is now live, with a mainnet launch planned for the fourth quarter of 2024. This project aims to enhance scalability and interoperability by combining the security of Bitcoin with the programmability of Ethereum.
Bitget and Foresight Ventures Invest $30 Million in TON Blockchain: Bitget and Foresight Ventures have joined forces to invest $30 million in the TON blockchain, aiming to bolster its ecosystem. This strategic funding is designed to enhance the platform’s capabilities and promote innovation in decentralized finance. The partnership underscores both companies’ commitment to advancing blockchain technology and expanding their presence in the industry.
Drift Secures $25 Million in Series B Funding to Expand DeFi Services on Solana: Drift, a decentralized finance platform on the Solana blockchain, has raised $25 million in a Series B funding round led by Multicoin Capital. With plans to enhance its trading services and double its workforce, Drift aims to become the “Robinhood of crypto,” catering to over 200,000 users and processing more than $50 billion in trading volume since its launch. The platform stands out for its commitment to gender diversity, with nearly half of its leadership team being women.
Heliuslabs Secures $21.75 Million in Series B Funding: Heliuslabs has raised $21.75 million in Series B funding to enhance the developer experience on the Solana blockchain, co-led by Haun Ventures and Founders Fund. The funding will be used to develop APIs that help creators better understand on-chain data and streamline transaction queries. The company is also actively seeking new talent to join their team as they work towards improving scalability and speed in crypto application development.
Chris Larsen’s Yellow Network Secures $10 Million in Seed Funding: Chris Larsen, co-founder of Ripple, has raised $10 million in seed funding for his new venture, Yellow Network, with investments from Digital Currency Group and prominent angel investors like Tim Draper. The platform aims to enhance decentralized finance (DeFi) applications by improving user experience and accessibility in the crypto space. Larsen is optimistic about Yellow Network’s potential to drive innovation and empower users to have greater control over their financial assets.
Multicoin Capital Leads $10M Funding for Pipe’s Decentralized Internet Infrastructure: Multicoin Capital has spearheaded a $10 million fundraising round for Pipe, a decentralized internet infrastructure project by Permissionless Labs. The initiative aims to enhance internet performance through a decentralized virtual infrastructure network (DeVIN) that incentivizes users to share their computing power. Built on the Solana blockchain, Pipe is set to launch its testnet at the upcoming Breakpoint conference in Singapore, promising to improve content delivery efficiency and reduce latency.
Vana Secures $5 Million Funding to Empower User-Owned Data Pools: Vana, a web3 startup, has raised an additional $5 million in funding led by Coinbase Ventures, bringing its total to $25 million. The company aims to create decentralized autonomous organizations (DAOs) that allow users to pool and monetize their private data from social media platforms for AI training. Co-founder Anna Kazlauskas highlights the unique value of user-contributed data, which remains largely untapped compared to publicly available information.
MagicBlock Secures $3 Million to Revolutionize On-Chain Gaming: MagicBlock has raised $3 million in pre-seed funding to advance its Ephemeral Rollups technology, which aims to deliver web2-like performance for developers on the Solana blockchain. This innovative approach allows for seamless composability and high-speed transactions, enabling the creation of trustless and unstoppable games and applications without traditional server reliance. With this funding, MagicBlock plans to expand its team and enhance its technology to meet the growing demand for high-performance decentralized applications in the web3 space.
0xAstra Secures $3 Million in Seed Funding: 0xAstra has successfully closed its Seed Round, raising $3 million from notable investors, including Ace Redpoint. The funds will be used to enhance the development of its innovative omnichain strategy game, where players build and defend their cosmic homelands. This exciting venture aims to create a competitive environment for players to strategize and expand their territories.
Fermah Secures $5.2 Million Seed Funding to Advance Zero-Knowledge Proofs: Fermah has raised $5.2 million in seed funding, co-led by the a16z Crypto Startup Accelerator and Lemniscap, with participation from several other investors. The company aims to establish a marketplace for zero-knowledge proof generation, enhancing applications such as ZK rollups and bridges using reliable infrastructure. CEO Vanishree Rao highlighted the pivotal moment for ZK technology, indicating that Fermah will play a crucial role in the anticipated surge of innovative applications.
LogX Secures $4 Million Funding and Surpasses $20 Billion in Trading Volume: LogX, a decentralized trading platform, has raised $4 million in funding, boosting its total capital to $10.1 million and achieving over $20 billion in trading volume within ten months of its launch. The funding round attracted notable investors such as Hashed Emergent and Cumberland VC, with plans to expand product offerings and launch on the TON blockchain. With a goal of reaching 100 million users, LogX is set to enhance its prediction market trading across more than 50 blockchains.
RISE Secures $3.2 Million Seed Funding for Gigagas Layer 2 Development: RISE has successfully raised $3.2 million in a seed funding round, led by Finality Capital and supported by several notable investors, including Orange DAO and Polygon Ventures. This funding will accelerate the development of their innovative Gigagas Layer 2 solutions, designed to enhance scalability and performance in the blockchain space. The project marks the beginning of the “Gigagas Era,” promising significant advancements for various sectors within the web3 ecosystem.
Regolith Labs: Pioneering the Future of Proof-of-Work Mining: Regolith Labs has been launched with a mission to accelerate the ORE ecosystem, successfully raising $3 million to onboard millions of new users to cryptocurrency through innovative proof-of-work mining on Solana. The initiative aims to enhance consumer mining experiences and deepen liquidity for ORE and tokenized real-world assets. By prioritizing a fair-launch approach, Regolith Labs invites passionate individuals to join their small, dynamic team dedicated to redefining the crypto landscape.