TLDR CRYPTO 2023-07-27

LANDMARK CRYPTO MARKET OVERHAUL BILL ADVANCES PAST FIRST COMMITTEE

The US House Financial Services Committee has made progress on crypto regulation with a proposed bill designed to clarify aspects of digital assets and their market status. The bill, aiming to provide a way for a digital asset to transition from a security to a commodity, had mixed support and opposition from both sides of the aisle. However, it managed to advance with a bipartisan vote of 35-15. The House Agriculture Committee will also debate the proposed legislation as it has some jurisdiction over the proposal.

Binance is set to relaunch in Japan next month. This comes after the company faced a regulatory warning from Japan's Financial Services Agency two years ago for operating without authorization. Binance will not simply relaunch in the country. It is coming back via the acquisition of already regulatory compliant Sakura Exchange BitCoin, which closed in November of last year.

DEPLOYS CODE AT THEIR ACCOUNT

A new Ethereum Improvement Proposal aims to make it easier for users to transition from Externally Owned Accounts to smart contract wallets. The proposal introduces a new EIP-2718 transaction type that alters the sending account's code field in the state trie and applies tuples to the sender's storage trie. By expediting user adoption of smart contract wallets, the EIP hopes to promote better support and integrations, prompting the mechanism to stop being seen as a niche use case. Critical concerns include account security and ensuring wallet providers facilitate safe transactions.

ETHEREUM GENERATIVE ART CHALLENGER HIGHLIGHT TAKES ON ART BLOCKS

A new digital art marketplace, Highlight, has launched as the first "open access" generative art platform on the Ethereum blockchain. Backed by Haun Ventures and fresh off an $11 million funding round, Highlight offers free use with no artist fees. Instead of relying on a curatorial model that often restricts artist accessibility, Highlight simplifies the process with easy-to-use tools and encourages experimentation with different media types. While the platform will be free for artists to use, it will generate revenue through small fees from buyers. In addition to Ethereum, Highlight also plans to support other networks with cheaper transactions.

AN UPDATE ON THE ON-CHAIN DERIVATIVES SECTOR

This Twitter thread highlights how the DeFi sector is becoming more and more competitive as user adoption increases. Decentralized exchanges, despite doing only 2% of CEX trading volume, are generating billions in volume daily. GMX, one of the leading players, is losing market share amid rising competition. Its v2 launch's success will be vital. Synthetix is the largest protocol, but it has a suboptimal revenue model. Meanwhile, Gains is an undervalued project, while Level and Perp show less potential. MUX stands out as an interesting up-and-coming protocol based on its metrics and early traction.

PROJECTS

Lattice Fund conducted an analysis of 780 seed stage crypto projects from the 2021 vintage to see where they are now as a group. The report reveals that about 70% of the projects have shipped a product to mainnet or equivalent, while 20% have closed or halted development, and only around 5% have found Product Market Fit. Ethereum continues to dominate among L1s, with companies on Ethereum showing some of the best levels of traction. However, companies that have gone multichain have had the most success raising follow-on rounds and finding Product Market Fit.

THE FUTURE OF PAYMENTS INCLUDES STABLECOINS

This article highlights key considerations for legislation around stablecoins. As regulation around cryptocurrencies assumes focus worldwide, regulators should address user risks by setting risk-management standards, potentially including balance verification, and reserve asset requirements for centralized issuers of US dollar-linked stablecoins. Legislation should also support competition among stablecoins and other financial services, setting clear regulations for stablecoin use and guaranteeing open access for consumers. Furthermore, legislation should support innovation in stablecoins, allowing a variety of forms, assuming adherence to consumer protection and suitable risk-management rules.

A SIMILAR ONE SOLD ON SUPERRARE

Christie's is recognizing the challenge of keeping pace with crypto-native marketplaces in the digital art market. Based on an unsuccessful recent sale of a ‘Lost Robbie’ NFT, the difficulty isn't attributed to declining interest in digital art, according to Christie's digital art specialist, Sebastian Sanchez. Instead, he stressed that the inherent competitiveness, decentralization, and dynamism of NFT marketplaces like SuperRare or OpenSea are still something the auction house is learning to navigate. To compete, Christie's has shifted some of its traditional strategies, like dropping buyer premiums and highlighting its unique in-person programming and exhibitions.

BITCOIN'S PRICE RISES AFTER FED HIKES RATES AS EXPECTED

Bitcoin rose slightly after the Fed raised interest rates by the expected 25 basis points, marking its 11th hike in 17 months.

ON REAL WORLD ASSETS

In this Twitter thread, Kyle Samani explains how the framing of discussions on RWAs is wrong and how he views this nascent market.

BITCOIN MINERS BUY UP RIGS AS PRICES NEAR ALL-TIME LOWS

Bitcoin mining rig prices have hit a near all-time low due to decreasing profitability from bitcoin volatility and rising costs. This price drop is providing an opportunity for miners to upgrade their equipment ahead of the expected Bitcoin halving in 2024.

WHAT’S THE ENDGAME FOR SOLANA

The Head of DeFi BD for the Solana Foundation recently discussed Solana's competitive advantages, plans for recovery after its TVL drop and the general bear market downturn, and aim to attract a billion users. This Twitter thread breaks down what she had to say about all of this and more.