July 1, 2020 | Issue #124


On BTC Volatility...

When institutional investors are asked about the barriers to investing in crypto assets, volatility is usually top of the list. Fast-forward to today, however, you'll notice that prices are beginning to show remarkable signs of stability...

This week, Noelle Acheson of CoinDesk examines the critical role volatility plays in both crypto and traditional markets... and what that could mean for Bitcoin’s investment narrative.

Money, Money, Money

A recent survey of institutions by Fidelity Digital Assets said that 60% of respondents believed they should invest in digital assets and that 33% had already done so.

These numbers look pretty on point...

This week, New York Digital Investments Group (NYDIG) raised $190M for another BTC fund (In May, NYDIGs Bitcoin Yield Enhancement Fund raised nearly $140M).

Meanwhile, Grayscale Investments added 19,879 BTC to their Bitcoin Trust this past week (that's 53,588 BTC since the halving) with their buyers being mostly traditional hedge funds.

In other funding news:
  • Curv, a company that provides increased secrecy when it comes to holding crypto assets, has closed a $23M Series A funding round
  • Japanese financial firm, SBI Holdings, has agreed to take a $30M minority stake in institutional cryptocurrency trading platform B2C2
  • ConsenSys and AMD joint venture, W3BCLOUD, raises $20M to build Ethereum data centers
  • AVA Labs raises another $12M to fund its Ethereum competitor

Tokenizing Reddit

Reddit has over 430M monthly active users, commanding attention from 25% of internet users ages 18-29.

The company is about to undergo one of the most important tokenization experiments in the crypto space using Ethereum, reinventing its business model along the way.

Here's how Reddit tokens might accrue value, a deeper breakdown of Reddit’s stats, and further analysis of the subreddits experimenting with community points.


The Perfect 2020 Gold Portfolio: 5 Companies To Buy and Hold For The Next Decade [free]

This is your chance to amass something 99% of investors don’t have – a true gold portfolio.

As the general stock market struggles, we’re urging all investors to explore a gold investment strategy that actually works.

Utilizing this report gives you everything you need to know about investing in gold… key trends in each and every sector… and pinpoints several high-quality growth stocks along the way.


Update on COMP Frenzy

As we discussed last week, DeFi protocol Compound has seen its governance token, COMP, skyrocket in value since the launch. This also sparked a "yield farming" frenzy and was, by far, the topic of conversation last week...

Here's everything that has happened since:
  • Coinbase listed the token on their exchange (was previously only available via Coinbase Pro)... and is now allowing users to earn COMP by watching lessons and completing quizzes on Coinbase Earn. (This makes perfect sense as Coinbase is an investor in Compound and also owns COMP tokens)
  • Binance joined the party and listed COMP as well. This resulted in a 25% spike in 5 minutes.
  • Opyn, a decentralized options marketplace, launched put options on COMP. This will essentially provide a safety net of sorts for those rushing in to buy the token.
  • COMP holders quickly voted to change yield farming rules. Under the new system, COMP allocations will be based simply on the USD-denominated value of assets provided or borrowed. (Moves liquidity out of the unnaturally inflated tokens >> into more useful and in-demand assets, like stablecoins)
COMP prices have been extremely volatile, surging to ~$370 and falling below $215 in under two weeks. However, the protocol still leads the DeFi pack by a wide margin.

At this point, either COMP is still either extremely overvalued... or every other DeFi token is undervalued.

🚜 Aquaponic Yield Farming

Compound and Balancer started the liquidity wars, but there's plenty of room for cooperation... for now.

Welcome to the dawn of Aquaponic Yield Farming, the Rise of Symbiotic DeFi Protocols, and perhaps someday the evolution of Prime Brokerage Protocols.

If you are scratching your head... we get it. But if yield farming has piqued your interest, this is worth a read.

New Bitcoin Whales: Where Are They Coming From?

Bitcoin's whale population is on the rise for the first time since 2016. Where are these whales coming from, and are they hoarding more BTC than ever?


What’s Elon up to?

An angel investor with deep ties to the mining industry believes Tesla could be on the verge of a multi-billion dollar deal.

Tesla CEO Elon Musk – the pied piper of electric cars – doubled down on that message at a shareholder’s meeting. Get the full story here.


SEC Gives Telegram One Last Slap to the Face

The SEC just asked Telegram to pay $18.5M as a "civil penalty" for violating securities law while conducting their ICO back in 2018. This is on top of the massive $1.19B that Telegram has to pay back to their investors.

Finally, Crypto-friendly U.S. Regulators: A Very Real Possibility

Last week, Trump announced his intention to nominate SEC Chairman Jay Clayton to the post of U.S. Attorney for the Southern District of New York.

If confirmed, the president will likely appoint the senior-most commissioner who belongs to the same party as the president as acting chair until Clayton’s successor is confirmed.

In this case, that would be Commissioner Hester Peirce, known to many as “Crypto Mom” for her open-minded stance on the technology.

In other words, there is a possible timeline ahead where three of the top U.S. financial regulators – the SEC, the Commodity Futures Trading Commission, and the Office of the Comptroller of the Currency – would be headed by industry-friendly faces.


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