Gryphsis Cryptocurrency Weekly: Hong Kong regulators indicate that spot cryptocurrency ETF applications will be considered
Hong Kong regulators have stated that they are ready to consider applications for spot cryptocurrency exchange-traded funds (ETFs). The Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) said in a joint statement that the virtual asset environment has changed since 2018, when the SFC established a regulatory approach that was "limited to professional investors."Author: Gryphsis Acadaemy
Market and Industry Snapshot:
Layer 2 Overview:
Last week, Layer 2 showed an upward trend, with Base experiencing the most significant growth at 10.33%. Protocols like Revest Finance, FlokiFi Locker, EraLend, and StarkDeFi demonstrated notable TVL growth ratios.
LSD Sector Overview:
In the LSD sector, Ethereum staking and deposits remained relatively stable, but total withdrawals decreased by 16.12%. In terms of market share, most blue-chip LSDs showed significant changes, with swETH experiencing the most notable decline of 46.49%, while stETH rose by 56.21%.
RWA Sector Overview:
Last week, the market value of real-world assets increased by 9.47%, but the overall growth of the crypto industry was significant, causing the overall industry share to drop to 0.06%. The tokenized treasury and tokenized U.S. Treasury bonds showed slight growth. Notable growth tokens included $MBD, $CPOOL, and $STRX. Tokens like $BRTR, $DETF, and $DEXTF experienced significant losses.
Main Topics
Macro Overview:
- US Stock V.S. Crypto
Major Events This Week:
- Hong Kong Regulators Consider Spot Crypto ETF Applications
Weekly Protocol Recommendation:
- Analysoor
Weekly VC Investment Focus
Chainge Finance ($47M)
MapleStory Universe ($100M)
4EVERLAND ($2M)
Twitter Alpha:
@DeRonin_ on NFTFi
@0xAndrewMoh on Injective
@Deebs_DeFi on Shrapnel
@MoonKing___ on Detf
@zerokn0wledge_ on Eigenlayer
Macro Overview
This week, the stock market and the crypto industry showed opposing trends, with SPX and NASDAQ increasing by 0.75% and 1.21%, respectively. In the coming week, keep an eye on major events such as the goods trade balance, pending home sales, KOF leading indicators, and manufacturing PMI.
Major Events This Week
Hong Kong regulators indicate that spot crypto ETF applications will be considered
Hong Kong regulators have stated that they are ready to consider applications for spot cryptocurrency exchange-traded funds (ETFs). The Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) said in a joint statement that the virtual asset environment has changed since 2018, when the SFC established a "professional investor only" regulatory approach.
This year, Hong Kong has relaxed its stance on cryptocurrencies, and the regulators' risk assessment for retail investors in digital assets has also shifted. In October, the SFC updated its rulebook to allow a broader range of investors to participate in spot cryptocurrency and ETF investments. Then, last month, SFC CEO Julia Leung stated that the regulators are moving towards allowing retail investors to purchase spot crypto ETFs and will "welcome proposals that use innovative technologies to enhance efficiency and customer experience," provided that any risk issues are addressed.
"The situation of virtual assets is evolving rapidly and beginning to extend into mainstream finance," the two regulatory bodies said in a statement on Friday. The SFC is "prepared to accept authorization applications for other funds with virtual asset exposure, including virtual asset spot exchange-traded funds (VA spot ETFs)."
Weekly Protocol Recommendation
Welcome to our weekly protocol segment—where we focus on protocols making waves in the crypto space. This week, we have chosen Analysoor, a new protocol on Solana that combines inscriptions, memes, and gaming concepts.
Analysoor has been dedicated to creating a data center for NFTs, particularly Ordinals and Solana NFTs. By tracking these collectibles and the smart money behind them, Analysoor has gained a large following and recently launched its own NFT collection and native token $ZERO.
Analysoor introduces a unique minting mechanism designed to ensure fairness and transparency in the NFT and MEME minting process. Unlike traditional NFT airdrops, Analysoor uses block hash random numbers + participant input costs to eliminate unfair competition from bots or large holders through randomness, thereby creating a fair competitive environment for ordinary users.
The Analysoor NFT collection consists of 10,000 unique NFTs, each representing a block in the blockchain. Only one NFT can be minted per block.
- The Solana blockchain produces a block approximately every 400 milliseconds.
- If only one valid mint request is selected in each block, the minting process takes about 1 hour and 30 minutes.
- Each block has a unique identifier known as the block hash. This hash value is unknown until the block is confirmed, making it a source of randomness.
- The method for selecting the minting/trading winner: First, extract the first digit from the block hash (e.g., "6MjVseMy2khAe1hXnhwFCMZ6FhzuBpaLaezFYnCxZQuN" gives 6) to determine the winning transaction. Then, extract all digits from the hash (e.g., 6216) and check if these digits are even to determine the direction to count transactions.
- Implementation: If the digit from the block hash is even, count from top to bottom; if odd, count from bottom to top. Based on the first digit extracted from the block hash 6, select the first transaction containing the digit [6] to choose a winner for each block.
- The only way to cheat is to make multiple mint requests in one block, but the clever design ensures that each minting has a cost, making it potentially costly for large holders/scientists trying to monopolize an entire block.
https://www.theblockbeats.info/news/49088
Flowchart:
All fees collected during the minting process will not be refunded but will be used to create AMM pools or added to the NFT bids, thus protecting and enhancing the value of the NFTs. This strategic move not only ensures that the value of Analysoor NFTs is enhanced but also creates a vibrant secondary market for these NFTs.
Additionally, the official minting of the meme coin $WHEN will open around December 23 (delayed), where 48.5% of the tokens can be minted at a price of 0.05 $SOL and 1 $ZERO, with the minting lasting for 45 minutes; 48.5% of the supply and all SOL fees will be used to create a Meteora AMM similar to $ZERO; 3% will be distributed to $ONE holders three days after minting.
Our Insights
Official data indicates that during the minting of $ZERO, a total of 8.8K $SOL (approximately $841K) in fees was generated and locked in LP, with nearly 2M in fees generated in just four days during the ONE and $ZERO minting process. 
Source: Sniper
For those who were "unlucky" and did not mint, Analysoor may issue some plans to allow users to gain more benefits, rather than relying solely on luck. For example, users can mine in the $ZERO/ONE pool or receive airdrops from new projects deployed on Analysoor by staking $ZERO and ONE, thereby increasing participation and returns.
Additionally, it is worth noting that Analysoor will create a market driven by AI models, which will better detect real investor addresses, making the distribution of chips more reasonable and improving the fairness of the mechanism. This initiative may further benefit $ZERO.
Why is Analysoor's issuance mechanism so popular? In the recently booming inscription ecosystem, large holders or scientists gain an advantage through front-running, making it easy for the interests of ordinary retail investors to be harmed. Moreover, the gas fees collected are primarily held by miners, making it difficult to reinvest in the ecosystem. Analysoor pools the fees into the AMM pool and protects NFT prices, which also protects the rights of holders and maintains user interests.
It can be said that this minting mechanism is also given a (0,1) label to signify its fairness and innovative Fair Launch precedent, and Analysoor may completely change the way we interact with digital assets.
Gryphsis Research Focus
Welcome to this week's "Gryphsis Research Focus," where we share the latest insights from our team. Our dedicated research team continuously explores the cutting-edge trends, developments, and breakthroughs in the crypto space. This week, we are excited to share our newly released report, so let's dive in!
TL;DR:
- Driven by the internet and AIGC technologies, the creator economy has seen significant development, providing creators with diverse income streams ranging from advertising revenue to direct sales.
- Public AIGC projects like DALL-E 3, Midjourney, and Stable Diffusion have excelled in AI painting applications. The integration of AIGC enhances content creation efficiency and creative freedom in the creator economy.
- Despite challenges such as copyright issues and income instability, the integration of Web3 offers new solutions, particularly in strengthening copyright management and monetizing works.
- NFPrompt, as an emerging platform combining Web3 and AIGC, provides an integrated environment for creation, trading, and social interaction. NFPrompt's initial public offering of the $NFP token through Binance LaunchPool brings broader exposure and participation opportunities for the project.
- In the future, with the development of AIGC and blockchain technologies, the creator economy is expected to become more diverse and inclusive, offering more opportunities and freedom to creators and consumers.
Full Report: https://link.medium.com/AOVJRzERHFb
Weekly VC Investment Focus
Welcome to our weekly investment focus, where we reveal the most significant venture capital dynamics in the crypto space. Each week, we will highlight the protocols that have received the most funding.
Chainge Finance
Chainge Finance is a cross-chain liquidity aggregator that provides various cryptocurrency management tools, such as a cross-chain wallet, integrating over 24 EVM and non-EVM compatible chains, allowing users to seamlessly exchange, send, and receive crypto assets across networks. It also features an Escrow module, a top-tier DEX aggregator, a futures DEX, and the first decentralized options DEX.
https://x.com/FinanceChainge/status/1737472710408634811?s=20
MapleStory Universe
MapleStory Universe can be simply described as an extension of MapleStory (Nexon's most widely recognized IP). It ultimately serves as a virtual world ecosystem centered around MapleStory NFTs, creating a more immersive and engaging adventure experience. Emerging as a dynamic virtual ecosystem, it seamlessly integrates games and applications with NFTs. Through the integration of Polygon Supernet, players can now earn and trade NFT items during gameplay, fundamentally reshaping the existing in-game economy.
https://x.com/MaplestoryU/status/1736608325113086201?s=20
4EVERLAND
4EVERLAND is a Web 3.0 cloud computing platform that integrates storage, computing, and networking core capabilities, providing blockchain communication, decentralized front-end, one-time write, and anywhere-run blockchain solutions and web services. This enables developers to build Web 3.0 applications more easily and quickly.
https://x.com/4everland_org/status/1737383366008467699?s=20
Protocol Events
Phantom adds support for Bitcoin, Ordinals and BRC-20 tokens
Trezor hardware wallets add support for Solana and SPL tokens
Bitfinex Securities announces first tokenized bond on Liquid Network
Ripple approved as Virtual Asset Service Provider by Central Bank of Ireland
EigenLayer deposits surpass $900 million amid increased LST caps
Industry Updates
U.S. appeals court finalizes mandate for forfeiture of Silk Road bitcoin
China pledges to boost NFT, decentralized application development despite crypto trading ban
BloXrout will reject transactions with OFAC-blacklisted addresses
UK introduces new regulations for its Digital Securities Sandbox
Revolut will suspend trading for UK business customers: report
Twitter Alpha
There is a lot of Alpha hidden in crypto Twitter, but navigating through thousands of Twitter threads can be challenging. Each week, we spend hours researching to curate insightful threads and present you with a weekly selection. Let's dive in!
https://x.com/DeRonin_/status/1737535216963502472?s=20
https://x.com/0xAndrewMoh/status/1737446486693290013?s=20
https://x.com/Deebs_DeFi/status/1737136974543331603?s=20
https://x.com/MoonKing___/status/1737491810866339870?s=20
https://x.com/zerokn0wledge_/status/1737443087339675978?s=20
Upcoming Events
