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- Crypto Alpha - Week 43 2024
Crypto Alpha - Week 43 2024
All things Crypto, Web3 and Blockchain to keep you updated
TL;DR
Microsoft's BTC Investment Proposal Set for Shareholder Vote
Denmark Introduces 42% Unrealized Gains Tax on Bitcoin
Vitalik’s Decentralization Proposal for Ethereum
Chainlink Launches privacy-focused blockchain solutions
Arkham Intelligence Launches Solana Tracking Support
Solana’s Telegram Bot Trading Volume Surges
CoinGecko and MANTRA Launches Grant for dApps
Rujira App Layer Launches on THORChain
Avalanche Launches Visa Crypto Card for Self-Custody
Proposal to Onboard AUSD to Aave V3 on Avalanche
Charges Dropped Against Binance Executive in Nigeria
U.S. Government Crypto Wallet Hacked for $20M
And much more!
Premium Content of the Week
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THORChain is a liquidity protocol that facilitates native asset settlement between Bitcoin, Ethereum, BNB Chain, Avalanche, Cosmos Hub, Dogecoin, Bitcoin Cash & Litecoin.
THORChain is secured by its token, RUNE, which deterministically accrues value as more assets are deposited into the network.
Anyone can use THORChain to swap native assets between any supported chains or deposit their assets to earn yield from swaps.
Bitcoin Highlights of the Week
Microsoft has placed a proposal to explore investing in Bitcoin on the agenda for its upcoming shareholder meeting on Dec. 10. The proposal, introduced by The National Center for Public Policy Research, is advised against by Microsoft’s board, which considers the measure “unnecessary” as it already monitors various assets, including cryptocurrencies.
The company’s Global Treasury team highlighted that cryptocurrency volatility remains a significant factor, though Bitcoin has previously been evaluated as a diversification option. If approved, Microsoft would become the largest public Bitcoin investor, surpassing companies like MicroStrategy and Tesla, potentially impacting its $3.157 trillion market cap.
As of October 18, open interest (OI) on Bitcoin futures at the Chicago Mercantile Exchange (CME) hit a record high of $12.26 billion, marking a 36% increase in the past two weeks and a 3.5% rise from its previous peak in April.
This surge reflects heightened institutional interest, with firms like hedge funds and asset managers favoring CME's regulated market. Rising OI suggests that institutional players are building positions, likely anticipating further Bitcoin price volatility or appreciation. This record-setting activity at CME highlights the growing institutional adoption of Bitcoin as a strategic asset.
Chainlink has entered the Bitcoin ecosystem through a new partnership with Spiderchain, a Layer 2 network built by Botanix Labs. By joining Chainlink’s Scale program, Spiderchain gains access to Chainlink’s oracle services and Cross-Chain Interoperability Protocol (CCIP), enhancing Bitcoin’s ability to support Ethereum-compatible applications.
This integration enables Bitcoin to host Ethereum Virtual Machine (EVM) layers, a significant shift for a blockchain previously lacking in L2 and smart contract support. As Chainlink’s proven oracle solutions integrate with Spiderchain, this move promises broader application potential for Bitcoin.
MicroStrategy CEO Michael Saylor ignited controversy with his stance that Bitcoin ownership in state custody may be more secure than personal custody. Speaking on the "Markets with Madison" podcast, Saylor criticized self-custody and highlighted the role of public markets and state entities in Bitcoin adoption.
Saylor’s perspective suggests that Bitcoin’s future may lie in regulated markets, where companies like MicroStrategy serve as Bitcoin exposure vehicles. He argues that this approach could broaden retail and institutional access, potentially reducing anti-Bitcoin legislation. While divisive, Saylor’s comments reflect a growing debate on Bitcoin’s custodial models.
Starting January 2026, Denmark plans to tax unrealized gains on Bitcoin at 42%, marking a significant shift in cryptocurrency taxation. This move means investors will owe taxes on annual value increases, even without asset sales. The Danish government aims to align Bitcoin with existing financial asset taxes, promoting consistency and simplifying tax reporting.
However, this unprecedented tax could burden long-term holders, who may face liquidity challenges if forced to sell assets solely to cover taxes. With similar actions in Italy and mounting European regulatory scrutiny, Denmark’s tax plan raises concerns about its impact on Bitcoin’s attractiveness as an investment.
Daily Alphas of the Week
Ethereum Highlights of the Week
Vitalik Buterin recently proposed measures to counter Ethereum's growing staking and block production centralization. With two entities controlling nearly 88% of Ethereum blocks, Buterin emphasized the risk of censorship and weakened network security due to economic pressures pushing smaller staking pools into larger ones.
His solution includes capping individual Ether staking amounts and limiting penalties to 12.5% to maintain decentralization. Buterin also suggested a two-tier model with “slashable” and “unslashable” staking categories. For block production, he recommended a “fork-choice-enforced inclusion list” or the “BRAID” model to distribute block-building roles, minimizing centralization risks without compromising Ethereum’s functionality.
Ethereum founder Vitalik Buterin recently criticized MicroStrategy's Michael Saylor for his comments dismissing Bitcoin self-custody as a concern of "paranoid crypto anarchists." Saylor suggested that regulated custody reduces risks and avoids government interference, favoring third-party custodians.
Buterin countered, calling these views "batshit insane" and warned that they promote regulatory capture, undermining decentralization. Bitcoin expert Jameson Lopp also chimed in, noting that centralized custody weakens network security.
Lido DAO has launched its Community Staking Module (CSM) on the Ethereum mainnet, allowing Ethereum stakers to become solo validators with just 2.4 ETH, a significant reduction from the typical 32 ETH requirement. Initially, the module is limited to curated community stakers in its “Early Adoption” phase, with a fully permissionless phase planned soon.
The CSM, which enhances Ethereum’s decentralization, simplifies staking by reducing technical and financial barriers. Built on Lido’s Staking Router architecture, the module invites broader participation and was developed after a successful testnet trial, engaging over 370 node operators.
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VaultCraft launches V2, TVL skyrockets above $100M
VaultCraft launches V2, partners with Safe, and secures $100M+ in Bitcoin
Matrixport, Asia’s leading crypto providers, commits $100M+ in Bitcoin
OKX Web3 to launch Safe Smart Vaults with $250K+ in rewards
Chainlink has launched privacy-focused blockchain solutions to help financial institutions like ANZ Bank securely transact across public and private chains. Announced on October 22, these innovations include the Blockchain Privacy Manager for integrating private chains with the public Chainlink platform and the CCIP Private Transactions protocol for encrypted data transfers.
ANZ Bank will test the technology for tokenized real-world asset settlements under Singapore's Project Guardian. Chainlink’s solutions address institutional privacy needs, complying with regulations like GDPR, which mandate secure, private cross-chain transactions. This development aims to drive broader blockchain adoption among financial institutions.
Uniswap has launched permissionless bridging across nine major networks, powered by Across Protocol, simplifying cross-chain asset transfers. This new feature, accessible through the Uniswap interface and wallet, supports Ethereum, Base, Arbitrum, Polygon, OP Mainnet, Zora, Blast, World Chain, and ZKsync.
Designed to address the complexities and delays users face when moving assets between chains, Uniswap’s bridging aims to enhance usability amid its recent market share decline. According to Uniswap Labs, bridging was the platform’s top user-requested feature, following a community poll conducted in July, just ahead of limit orders on Layer 2.
Solana Highlights of the Week
Arkham Intelligence now offers on-chain data tracking for the Solana blockchain, enabling users to monitor SOL wallet activity, track trades, assess trading performance, and follow top investors. With Solana's ecosystem experiencing a 500% surge over the past year, this support brings a much-needed tool to SOL users, who previously relied only on limited Solana Network resources.
Arkham, a prominent tracking platform since 2020, is used by traders and analysts to observe major wallet activities, including those of figures like Vitalik Buterin. This new feature also allows users to customize dashboards for tracking popular Solana-based memecoin holdings.
Solana's Telegram bot ecosystem hit a record $211 million in trading volume, driven primarily by the Trojan bot, which contributed $93.7 million, or 44.4% of the total. Launched earlier this year as a rebranded Unibot, Trojan has become a leader in average weekly volume, accounting for 39% of the DEX bot market.
Despite BonkBot's lifetime trading volume of $8.69 billion, Trojan's recent performance underscores Solana's growing dominance in decentralized exchange activity. The network's Real Economic Value also reached a peak of $11.1 million, highlighting a significant increase in meme coin trading and overall market engagement.
Jarett Dunn, known as Stacc, is attempting to withdraw his guilty plea related to an attack on the Solana token launchpad Pump.fun, where he allegedly siphoned $2 million. His legal team has quit, expressing concerns over this decision.
Initially, Dunn, a former employee, had claimed his actions were justified as a response to the protocol's harmful impact. During a recent court hearing, he requested to change his plea, which could lead to a trial and increased sentencing. Despite prior confessions and a public declaration of his actions, Dunn remains determined to contest his charges.
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