November 11, 2024
Weekly: Latest Updates and Insights
Trump’s Return: A New Era for U.S. Politics and Cryptocurrency: Donald Trump has been declared the 47th president of the United States after securing 270 electoral votes with a crucial win in Wisconsin, signaling a significant political comeback. His victory has led to a surge in Bitcoin prices, reaching an all-time high of $80,000, as investors anticipate favorable regulatory changes for cryptocurrencies. As Trump embarks on his new term, the legislative landscape remains divided, setting the stage for potential conflicts and challenges ahead.
Trump Administration’s Financial Agency Leadership Candidates: The Trump transition team is considering several candidates for key financial agency positions, including Dan Gallagher, the Chief Legal Officer at Robinhood, as a leading choice for SEC Chair. Other potential candidates include Paul Atkins and Robert Stebbins for the SEC, while Michelle Bowman and Travis Hill are being eyed for banking regulatory roles. This selection process may indicate a shift towards a more crypto-friendly regulatory environment, contrasting sharply with the current SEC leadership under Gary Gensler.
Federal Reserve Cuts Interest Rates Amid Economic Uncertainty: The Federal Reserve has lowered its benchmark interest rate by 0.25 percentage points to a range of 4.5% to 4.75%, marking its second cut of 2024 in response to cooling inflation and high borrowing costs for consumers. This decision comes shortly after President-elect Donald Trump secured another term, raising concerns about potential inflationary pressures from his proposed economic policies. Fed Chair Jerome Powell affirmed that he would not resign if asked by Trump, emphasizing the importance of data-driven decision-making in future monetary policy.
Record Inflows into Bitcoin ETFs Amid Market Surge: On November 7, 2024, U.S. spot Bitcoin ETFs saw an unprecedented inflow of $1.37 billion, coinciding with Bitcoin reaching an all-time high just below $77,000. BlackRock’s iShares Bitcoin Trust (IBIT) led the charge with $1.12 billion in inflows, while Fidelity’s FBTC attracted $191 million. This surge brings total investments in Bitcoin ETFs to $25.5 billion, reflecting a robust resurgence of institutional interest in cryptocurrency.
Detroit to Accept Cryptocurrency for Taxes and Fees: Detroit will become the largest U.S. city to accept cryptocurrency payments for taxes and city fees, launching this option in mid-2025 through a secure platform managed by PayPal. Mayor Mike Duggan highlighted the initiative as part of the city’s efforts to foster a technology-friendly environment that empowers residents and enhances public services. Additionally, Detroit is inviting blockchain entrepreneurs to propose innovative applications that leverage the technology for improved civic engagement and transparency.
The Fee Frenzy: Examining Cryptocurrency Listing Costs: Recent allegations have highlighted the exorbitant listing fees demanded by major exchanges like Coinbase and Binance, with claims that Coinbase asks for amounts between $30 million and $300 million. Meanwhile, Binance is accused of requiring 15% of a project’s total token supply, raising concerns about transparency in their fee structures. As regulatory scrutiny increases and trading volumes decline, these practices may face significant pressure to evolve towards more equitable standards in the crypto market.
Launch of the Global Dollar Network: A New Era for Stablecoins: The Global Dollar Network, launched on November 5, 2024, aims to accelerate global stablecoin adoption through collaboration among major fintech companies like Paxos, Kraken, and Robinhood. Central to this initiative is the new Global Dollar (USDG), a compliant stablecoin designed to enhance transaction efficiency and consumer trust. By inviting diverse participants from various sectors, the network seeks to foster innovation and create a competitive landscape in the regulated stablecoin market.
Circle Expands into Hong Kong Amid New Stablecoin Regulations: Circle is set to expand its operations in Hong Kong, planning to hire more employees and establish a local business presence as new stablecoin regulations take shape. This strategic move aims to capitalize on the region’s growing demand for stablecoins and its favorable regulatory environment. Additionally, Circle is exploring partnerships and innovations, including a collaboration with Hong Kong Telecom to develop blockchain-based solutions, further solidifying its commitment to the local market.
Tether’s Commitment to Neutrality and Collaboration: Tether has decided against launching its own blockchain, prioritizing neutrality and avoiding centralization in its operations. The company embraces partnerships with existing blockchain networks, as highlighted by their motto “Unstoppable TogETHER,” which emphasizes collaboration over consolidation. While future developments are not ruled out, Tether remains focused on enhancing integration and usability of USDT across multiple platforms.
Ethereum Foundation 2024 Annual Report Overview: The Ethereum Foundation’s 2024 annual report reveals a treasury of approximately $970.2 million, primarily held in Ether, reflecting a significant decrease from previous years. The foundation has committed $240.3 million to ecosystem initiatives while implementing new transparency measures, including a conflict of interest policy for its members. As of the report’s release, ETH was trading at around $2,901, showcasing resilience in the cryptocurrency market.
Fundraising:
Pond Secures $7.5 Million to Build Decentralized AI for Crypto: Pond, a crypto startup founded in 2023, has raised $7.5 million in seed funding led by Archetype to develop decentralized AI models that leverage on-chain data. Initially focused on a user search engine for blockchain connections, Pond is now creating a comprehensive model ecosystem for applications in security, recommendations, and DeFi. With plans to expand into areas like risk management and insider trading detection, the company aims to transform complex blockchain data into actionable insights for users.
Cytonic Raises $8.3M to Revolutionize Blockchain Interoperability: Cytonic, a layer-1 blockchain with a unique “MultiVM” design, has secured $8.3 million in seed funding co-led by Lemniscap and Lattice. This innovative platform allows multiple virtual machines to operate within the same network layer, facilitating seamless interoperability between major blockchains like Bitcoin, Ethereum, and Solana. By simplifying on-chain interactions and reducing transaction fees, Cytonic aims to enhance the overall user experience in the Web3 ecosystem.
Vlayer Secures $10 Million for “Solidity 2.0” Development: Vlayer, a crypto startup innovating Ethereum’s smart contract capabilities with its “Solidity 2.0,” has raised $10 million in a pre-seed funding round led by notable investors including a16z Crypto Startup Accelerator and BlockTower Capital. The new functionalities aim to integrate real-world data into smart contracts, featuring tools like Time Travel and Teleport for enhanced interoperability. Currently in an open alpha phase, Vlayer plans to launch its testnet, mainnet, and tokens by 2025, as it works to meet the growing demand for verifiable data in decentralized applications.
Fragmetric Builders Round Announcement: Strengthening Solana’s Ecosystem: Fragmetric has successfully completed its Series Builder funding round, introducing the SolanA Network Guard (SANG) initiative to enhance security and decentralization within the Solana ecosystem. By enabling community members to participate in restaking through a Guardian Fund, Fragmetric aims to secure both on-chain and off-chain services while ensuring fair reward distribution. The project invites all Solana community members to join this important endeavor, promising significant rewards for those who contribute to its growth and resilience.
Delabs Games Secures Strategic Investment from TON Ventures: Delabs Games has announced a strategic investment from TON Ventures, aimed at accelerating its growth as a leading mid-core gaming project on the TON blockchain. This partnership will provide essential support and funding, enabling Delabs to enhance its offerings and achieve mass adoption. With plans to leverage established IPs and engage players through platforms like Telegram, Delabs is poised to make significant strides in the gaming industry.
OpenOrigins Secures $4.5 Million to Combat AI Deepfakes with Blockchain Technology: OpenOrigins has raised $4.5 million in seed funding to enhance its blockchain-based platform that certifies the authenticity of digital media, addressing the growing threat of AI-generated deepfakes. The investment, led by Galaxy Interactive and Galaxy Ventures, will support the startup’s global expansion and development of tools for verifying content provenance. Co-founder Ari Abelson emphasized the urgent need for reliable verification mechanisms to maintain trust in information ecosystems as fabricated content becomes increasingly prevalent.