Bitcoin for humanity?

Dear member,

The winds of change in the crypto economy may be blowing cold, but opportunity remains plentiful for the savvy and innovative. Despite the stablecoin economy shrinking by $7.3 billion in 2023, largely due to the 2022 TerraUSD collapse and bear market, the crypto ecosystem is far from deflated.

Bitcoin continues to exhibit resilience with growth in ordinal inscriptions and BRC20 tokens. This occurred alongside ProShares Bitcoin Strategy ETF gaining a commendable 10.4% in the week ending May 20. Bitcoin's recent drawdowns are notably modest compared to its history, and investors’ dormant supply has increased, showing HODLers' faith.

Though there's been a dip in U.S. crypto adoption and a decline in assets deposited into crypto exchanges, the Ethereum network's staked ETH increased by 12% following the Shapella upgrade.

Venture funding for Web3 projects continues to rise, as demonstrated by a several eye-raising rounds:

NFTs are making waves again with Pudgy Penguins' sales surpassing $1m on Amazon, allowing the NFT holders to receive royalties from the sales. Solana has integrated ChatGPT into its set of tools, while Avorak AI's technology will be made available to Huobi Global's users, further showcasing the growing popularity and demand for AI.

Just as market sentiment is turning green, Hong Kong’s securities regulator will start accepting applications for crypto exchange licences, allowing them to serve retail clients within the region. Meanwhile, further up north in Japan sees tightening of crypto transaction rules. Global bodies like FATF and IMF are shaping regulatory frameworks while the U.S. intensifies efforts against crypto-related crimes.

As we navigate the ever fluctuating crypto landscape, the significant reduction in crypto hacks (compared to 2022’s all-time high in funds lost due to exploits) signal promising potential ahead. These interesting times for the crypto world continue to offer both challenges and opportunities.

Best regards from the Future,
RFTF.ai 

Market Intel

Stablecoin economy shrinks by $7.3 billion in 2023. The stablecoin economy has shrunk by $7.3 billion in 2023. The decline is due to a number of factors, including the TerraUSD (UST) collapse and the ongoing bear market.

Bitcoin blockchain continues to see growth in ordinal inscriptions and BRC20 tokens. Ordinal inscriptions are used to track the ownership of Bitcoin, while BRC20 tokens are used to power the Binance Smart Chain.

Crypto ETFs were the top-performing ETFs in the week ending May 20. The ProShares Bitcoin Strategy ETF (BITO) was the top performer, with a gain of 10.4%.

Bitcoin supply being held by investors is increasing, with a marked reluctance to sell. This 'holding conviction' is at an all-time high, with large portions of Bitcoin supply remaining dormant in investor wallets.

Staked ETH surged by 4.4m since Shapella upgrade was implemented on May 10th. This represents a 12% increase in the total amount of Ether staked on the network.

Crypto exchange asset inflows fell by $1.5b and have sunk to a market cycle low. According to data from CryptoCompare, the total amount of assets deposited into crypto exchanges has fallen to its lowest level since the start of 2022. This decline in inflows is likely due to the recent sell-off in the cryptocurrency market.

Funding Trends

Dispersion Capital has raised $40m for its first fund to invest in early-stage companies building decentralized applications and protocols.

LabDAO, a DAO focused on drug discovery, has raised $3.6m in a Series A funding round. The funding will be used to develop LabDAO's platform, which will allow researchers to collaborate on drug discovery projects.

Tools for Humanity, co-founded by OpenAI's Sam Altman, has raised $115 million in a Series C funding round led by Blockchain Capital. The startup is developing tools for Worldcoin, an Ethereum-based token, including a platform for creating unique digital identities using blockchain technology.

Web2 → Web3 Immersion

Pudgy Penguins NFTs sold for over $500,000 on Amazon. The popular NFTs were sold as part of a partnership between Pudgy Penguins and Amazon. The NFT holders will receive royalties from the sales.

Stepn integrates Apple Pay for in-game purchases. The Web3 move-to-earn app integration will allow users to buy Stepn's in-game currency, GMT, using Apple Pay.

US presidential candidate accepts Bitcoin for his campaign donations. Andrew Yang is the first major US presidential candidate to accept donations in digital currencies.

Return Finance submits high-yield savings application in 27 European countries. The application allows users to earn up to 12% interest on their savings.

Solana AI chatGPT plug-in launched. A new plug-in available for Discord and Slack will allow users to chat with AI chatbots powered by Solana's AI chatGPT has been launched.

City in China launched a metaverse platform backed by the government. The platform is designed to promote the development of the metaverse industry in Chongqing.

Avorak AI partners with Huobi Global to allow Avorak AI's technology to be used by Huobi Global's users. The company that uses AI to optimize crypto markets.

Bitcoin Tower Dubai design images has been released. The 40-storey tower will be the world’s first Bitcoin tower, and will have a virtual version in the metaverse.

Matter Labs hires Activision Blizzard exec to boost zksync gaming plans. The executive, who has not been named, will be responsible for leading Matter Labs' efforts to bring gaming to zkSync.

Regulatory Round-up

APAC

Hong Kong's financial regulator to allow crypto exchanges to serve retail investors starting in June. The Hong Kong Securities and Futures Commission (SFC) said trading platforms willing to comply with the SFC’s proposed guidelines are welcome to apply for a license.

Japan will adopt strict crypto monitoring rules next month. The new rules will require crypto exchanges to collect customer information for transactions of more than $3,000.

EU

German banks are slowly starting to adopt cryptocurrencies. However, most of the adoption is happening for institutional investors. Many German retail investors are still hesitant to use cryptocurrencies, due to its high volatility nature.

International

New global regulatory system for crypto unveiled by FATF. The Financial Action Task Force’s new guidance is designed to help countries regulate crypto exchanges and other businesses that deal with cryptocurrencies.

UN Secretary-General has said that the global financial system is outdated, dysfunctional, and unfair. António Guterres said that the system is "not working for the majority of people" and that it needs to be reformed.

IMF is optimistic about the Central African Republic's adoption of Bitcoin as legal tender. The IMF said that the move could help to boost economic growth and reduce poverty in the CAR.

US

The IRS has sent investigators globally to combat cryptocurrency-related crime. The US Internal Revenue Service’s Criminal Investigation Division has sent investigators to countries like Estonia, the United Kingdom, and Switzerland.

The Raven Also Spotted

Two U.S. Presidential candidates voice support for digital assets. Robert F. Kennedy Jr. pledges to safeguard Bitcoin from invasive surveillance, viewing it as a threat to the surveillance state. Meanwhile, Florida Governor Ron DeSantis expresses support for Bitcoin and digital currencies, recognizing its value as a store of value and its potential to enhance financial system efficiency.

Ex-White House Communications Director Anthony Scaramucci explained why he’s sticking with Bitcoin and what he believes its intrinsic value is. Scaramucci said that he believes Bitcoin is "the most important invention since the internet" and that it has the potential to "change the world."

Crypto hacks fell by 70% in Q1 2023, according to data from TRM Labs. The decline in hacks is likely due to a number of factors, including increased security measures by crypto exchanges and projects, and the rising cost of hacking.

China is "buzzing" after Bitcoin was seen in a TV segment controlled by the Chinese government. CZ said that he has seen an increase in interest in Bitcoin from Chinese investors since the segment aired.

Gaming is the largest-scale opportunity for crypto, said Polygon co-founder Sandeep Nailwal. Nailwal said that the gaming industry is a $175 billion market and that there is a lot of potential for crypto to disrupt the industry.