The ETF is Coming – What's Next?

The ecosystem is maturing: BTC ETF, ETH Marketing, NFT Evolution, and more...

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Forefront
January 08, 2024

Happy Monday!

Welcome to the 174th edition of the Forefront Newsletter, now more dynamic than ever. If you’re new here, we give you a weekly roundup of the best news and insights at the intersection of crypto, culture, and community.

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This week we’re covering:

Let’s get into it…

Week’s Highlight

Source: Coinglass

It seems like BTC Spot ETFs are officially coming to market. While nothing has been confirmed – and there is still a chance that the ETF applications are denied – many signs are pointing in favor of wide approvals this coming Wednesday.

Earlier last week, MatrixPort shook the market with their own analysis (and rumors) as to why the ETFs would not be approved. However, others are reporting that BlackRock and other institutions are expecting their ETF applications to be approved by Wednesday.

Regardless of what happens, investors are heavily leveraged in both directions, already seeing millions of dollars in liquidations with plenty more expected after major price movements.

As we wait, various institutions are vying for mindshare of investors both in and out of the crypto ecosystem. VanEck, for example, has pledged to donate 5% of their Bitcoin ETF profits to support Bitcoin Core devs for at least 10 years.

Amidst it all… Gary Gensler is still lame. "Investments in crypto assets also can be exceptionally risky & are often volatile," he wrote in a post on X. "A number of major platforms & crypto assets have become insolvent and/or lost value. Investments in crypto assets continue to be subject to significant risk."

While Gensler didn't mention any of the proposed ETFs, the timing of his thread on X quickly raised eyebrows in crypto circles as his comments came just hours after asset managers including filed amended S-1 forms for their proposed funds.

ETF approvals will surely mean more legitimacy for the crypto industry in the USA. While the short-term market is unpredictable, there is no doubt that this is bullish for the industry.

What’s Poppin’

Carta was called out this week for misusing confidential client information, specifically targeting Linear, by approaching its angel investors for secondary market transactions without proper authorization. This incident underlines the crucial need for transparent and secure management of sensitive data in the startup ecosystem. Concepts like Balaji Srinivasan's "The Mirrortable," which proposes using blockchain for cap table management, offer an innovative solution. This approach could prevent unauthorized data use and foster trust among stakeholders, presenting a viable alternative in the wake of such controversies.

This essay from USV discusses the evolution and enduring nature of NFTs. It highlights how NFTs transformed the concept of digital ownership, making digital items uniquely owned by individuals. Despite experiencing a massive hype cycle and an asset bubble, the core promise of NFTs remains robust. The article notes the role of speculative market bubbles in funding infrastructure for technological advancements. Recent developments have expanded NFT capabilities, making interaction with them cheaper and easier. The rise of digital art and collectibles has been pivotal in NFT adoption, allowing artists to monetize their work globally. Despite market fluctuations, the creation of digital art and new NFT behaviors continue to grow. The article concludes that NFTs can represent a wide array of items, not limited to digital objects, suggesting a future where NFTs play a significant role in representing various aspects of life

The essay from CoinDesk discusses the potential and challenges of Decentralized Physical Infrastructure Networks (DePIN). It emphasizes the importance of long-term tokenomics for the success of DePIN, a concept that is anticipated to lead significant growth in the crypto industry, much like NFTs and stablecoins. The article cites examples of DePIN successes, like Helium Mobile's community-powered 5G hotspots, Render Network's machine learning cloud, and Hivemapper's mapping achievements. However, it warns against the risks of a boom-and-bust cycle in DePIN projects, highlighting the need for a sustainable path which includes avoiding the "Static Rewards Trap" and instead focusing on dynamic rewards that are geographically contextual, productivity-based, quality-driven, and reflective of network progress. The essay concludes by underscoring the complexity of incentive design in DePIN but remains optimistic about its potential to democratize infrastructure ownership​​​​​​​​​​​​​​.

The Infrastructure Investment and Jobs Act, which passed Congress in November of 2021, included a provision amending the Tax Code to require anyone who receives $10,000 or more in cryptocurrency in the course of their trade or business to make a report to the IRS about that transaction. The report must include, among other things, the name, address, and Social Security number of the person from whom the funds were received, the amount received, and the date and nature of the transaction. If you don’t file a report within 15 days of receiving the transaction, you could be found guilty of a felony offense. Obviously this is an unenforceable law, and demonstrates the incompetence of the American administration when it comes to crypto.

Logan Paul is set to refund certain disgruntled investors of his once ambitious CryptoZoo NFT game — a year after he promised NFT buyers recourse. Logan said the “buy back” program will be funded by $2.3 million he is personally committing and will involve buying back Base Eggs and Base Animals at the original purchase price “for every person who intended to play CryptoZoo.” CryptoZoo was a never-released play-to-earn game allowing players to buy, sell, breed and trade “exotic animals” (represented as NFTs) with crypto. Paul first announced it in August 2021.

The Farcaster community, on the back of $POINTS and other recent memecoin launches, has launched yet another memecoin: $DEGEN. Farcaster users earned Degen Points based on likes, reposts, and followers. Additionally, certain actions boosted your points. To check your points, simply click on 'Connect Wallet' and connect using the wallet linked to your Farcaster account. Your points will be shown in the first row of the leaderboard table.

Multichain Pill

Source: CryptoSlam

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