Daily Report ｜The International Organization of Securities Commissions releases DeFi policy recommendations; Binance's latest Launchpool project NFPrompt is now open for mining, with 11% of the total tokens to be distributed to users

Organizer: Luan Peng, ChainCatcher

"What Important Events Happened in the Last 24 Hours"

1. IOSCO Releases DeFi Policy Recommendations
According to ChainCatcher, the International Organization of Securities Commissions (IOSCO) has released policy recommendations for DeFi to address issues of market integrity and investor protection within DeFi. Based on IOSCO's established approach to securities regulation, the recommendations aim to support jurisdictions seeking to establish compliant markets in the most effective manner. IOSCO also seeks to encourage consistency in the regulatory approach to crypto asset markets and securities markets across various IOSCO jurisdictions based on the principle of "same activity, same risk, same regulation/regulatory outcome."

These recommendations also cover the necessity for enhanced cooperation among regulators to coordinate and address cross-border challenges in enforcement and regulation, as well as to tackle regulatory arbitrage issues arising from the cross-border nature of global crypto asset activities conducted by DeFi participants. (Source link)

2. Matrixport Report: Bitcoin Holders Increased Wealth by $500 Billion in 2023
According to ChainCatcher, Matrixport's latest report indicates that Bitcoin holders saw their wealth increase by approximately $500 billion in 2023. The report highlights that the decline in U.S. inflation from 8% to 3.1% was a key factor in this growth, with expectations for it to further drop to 2% in 2024. Additionally, Bitcoin miners are limiting the supply of new Bitcoin during the halving cycle, which historically has led to new highs six months post-halving, and this is expected to happen again in April next year.

The report also mentions that despite the Federal Reserve guiding the market to cut rates by 75 basis points in 2024, the gap between the federal funds rate and the consumer price index remains significant, reaching up to 220 basis points. With support from the macroeconomic environment, Bitcoin prices are expected to rise in 2024. Meanwhile, the report analyzes the high funding rates for Bitcoin, indicating rising trader expectations for future prices, as well as the potential impact of Bitcoin spot ETF approvals on the market. Although Bitcoin has been consolidating since December 8, it is expected that with the approval of Bitcoin spot ETFs in early 2024, its support level ($40,000) will remain stable.

The report also focuses on the development of decentralized finance (DeFi), noting that while the overall performance in 2023 was below expectations, Lido's total value locked (TVL) significantly increased from $6 billion to $20 billion. Furthermore, the discount on Grayscale Bitcoin Trust (GBTC) narrowed from -47% to -8%, with its price increasing by +326%, making it a highlight of the year. (Source link)

3. Binance's Latest Launchpool Project NFPrompt Now Open for Mining, 11% of Tokens to be Distributed to Users
According to ChainCatcher, Binance's new coin mining project NFPrompt (NFP) is now open for the 41st round of mining. Users can stake BNB, FDUSD, and TUSD in the NFP mining pool on Binance Launchpad & Launchpool to earn NFP rewards, with NFP available for mining for a total of 7 days.

Binance officials stated that this is the first project launched after the introduction of "Fair Mode" for new coin mining, with up to 11% of the total token supply, or 110 million NFP, allocated to users participating in the mining. "Fair Mode" is a new token distribution model designed to protect the community and retail investors, maximizing user benefits. Tokens issued under this mode will see a significant increase in initial circulation (all Launchpool tokens will be released before listing), and it will permanently prevent a portion of token allocations from entering circulation to further reduce inflationary pressure. (Source link)

4. Hong Kong SFC: Beware of LonShiX and Bitbank (Global) Financial Holding Group Suspected of Virtual Asset-Related Fraud
According to ChainCatcher, the Hong Kong Securities and Futures Commission (SFC) today warned the public to be cautious of entities operating under the names "LonShiX" and "Bitbank (Global) Financial Holding Group," which are suspected of engaging in fraud related to virtual assets. (Source link)

"What Exciting Articles Are Worth Reading in the Last 24 Hours"

1. “Glassnode: 2023 On-Chain Data Review”

In this final issue of the year, we will take a whirlwind tour of the changes that occurred on-chain this year. We will explore how the landscape of Bitcoin, Ethereum, derivatives, and stablecoins evolved in 2023 and how this lays the groundwork for an exciting future.

2023 has been an extraordinary year for digital assets, with Bitcoin's market cap growing by 172% at its peak. Other parts of the digital asset ecosystem also experienced a strong year, with Ethereum and the broader altcoin space seeing market cap growth of over 90%.

This highlights the rising dominance of Bitcoin, which is often seen as a period of recovery from a long-term bear market (e.g., 2021-22). Particularly for Ethereum, despite the successful launch of the Shanghai upgrade and the development of the L2 ecosystem, it has relatively lagged behind, with the ETH/BTC ratio dropping to a multi-year low of around 0.052.

2. “Variant Partners: Lessons from Cryptocurrency Loyalty Programs”

Points are sweeping through web3 applications, but what can they learn from web2 precedents?

It seems that overnight, loyalty points have sparked a crypto craze, becoming a new tool for app developers to enhance user retention and engagement.

Across the blockchain crypto space, founders are adding off-chain loyalty programs to their applications, from Rainbow Wallet offering points for users using Ethereum, to Friend.tech building engagement loops around points, to the NFT marketplace Blur's new L2 Blast incentivizing users with Blast points to acquire transitional funds (which has exceeded $800 million in TVL since November). On one hand, these points may become fungible tokens with real economic value in the future; on the other hand, users themselves have made this leap of belief. This trend emerges as project teams seek broader market fit for crypto products and attract users during a bear market.

3. “In-Depth Analysis of DePIN Potential Projects: Render, Helium, and Livepeer, etc.”

DePIN (Decentralized Physical Infrastructure Networks) utilizes blockchain technology to allow participants to deploy hardware devices in a permissionless and trustless manner to provide real-world services or digital resources. Its core lies in users earning rewards through the services provided by renting out hardware. According to Messari, the entire sector is currently valued at approximately $9 billion, with expectations to grow to $35 trillion by 2028.