Daily Report | The Friend.Tech team relinquishes control over smart contracts after growth stagnation; private equity firm Thoma Bravo, which previously invested in FTX, will permanently exit the crypto market
September 9 News OverviewOrganizer: Luan Peng, ChainCatcher
Important News:
- Thoma Bravo, the private equity firm that once invested in FTX, will permanently exit the crypto market
- Bernstein: If Trump is elected, BTC may rise to $90,000 by the end of the year; if Harris is elected, it may fall below $50,000
- Merlin Chain releases 2024 mid-year review: $1.2 billion TVL, $16 billion bridge inflow, $3 billion on-chain trading volume
- Strategist: If the Fed significantly cuts interest rates, further unwinding of arbitrage trades may pose risks to US stocks
- OKX will list Catizen (CATI)
- Modular blockchain Nal completes $10 million seed round financing
- Nigeria's SEC will take action against individuals and cryptocurrency exchanges that do not comply with regulatory frameworks
- Early Ethereum advisor sues law firm for $100 million, alleging negligence in defense of crypto extortion case
"What important events happened in the past 24 hours?"
Orlando Bravo, head of the private equity firm Thoma Bravo, which manages approximately $160 billion in assets, stated in an interview with CNBC that the company will permanently exit the crypto market. This decision stems from its failed investment in FTX, where Thoma Bravo participated in a $900 million investment in 2021. Following the collapse of FTX, investors like Thoma Bravo faced significant losses and became embroiled in a lawsuit accusing them of making misleading statements while promoting FTX.
Bernstein's latest research report predicts that if Donald Trump wins the US election in November, Bitcoin (BTC) is expected to reach new highs later this year, potentially hitting $90,000 in the fourth quarter.
The report notes that Trump has been vocal about making the US the "capital of Bitcoin and cryptocurrency," mentioning digital assets in every policy speech.
In contrast, if Kamala Harris wins the election, Bitcoin may fall below the current support level of $50,000 and could test the $30,000 to $40,000 range.
Analyst Gautam Chhugani stated that the crypto market has faced two major headwinds over the past three years: macroeconomic and regulatory challenges. "After three years of regulatory cleanup, positive crypto regulatory policies can stimulate innovation again and bring users back to financial products on the blockchain." He added, "The election outcome is unpredictable, but if you are bullish on cryptocurrency now, you are likely betting on Trump's victory."
The Bitcoin Layer 2 network Merlin Chain has released its mid-year report, reviewing its growth trajectory in the first half of 2024 and milestones in various areas such as public chains, growth, ecology, and technology—setting industry benchmarks for Bitcoin Layer 2 with record-breaking mainnet TVL, the most prosperous application ecology, and the most solid user community. Highlights include:
- $200 million TVL, $16 billion bridge volume, 1.9 million on-chain addresses, 12.7 million transactions;
- TVL on the mainnet surpassed $3.9 billion within 50 days of launch (88% from BTC, Ordinals, and other native assets), with M-BTC's market cap reaching $1.2 billion in the first half of the year;
- Bridged $16 billion in Bitcoin, $1.6 billion in spot trading, $1.4 billion in perpetual contract trading, and over $1 billion in cross-chain assets, becoming a mainstream Bitcoin hub;
- Trading volume exceeded $3 billion, with DEX liquidity surpassing $78 million;
- Incubated No. 1 industry-leading applications in DEX, cross-chain bridges, lending, infrastructure, and entertainment (UniCross, Solv Protocol, Surf Protocol, Avalon Labs, MerlinSwap, MerlinStarter, etc.);
- Launched a comprehensive security framework and on-chain architecture, collaborating with industry leaders like Celestia, Cobo, Slowmist, etc., to create a secure and transparent on-chain environment;
- The release rate of MERL will significantly slow down in the second half of the year, with only 0.4% released over the next 12 months.
It is reported that Merlin Chain plans to continue focusing on technology, ecology, and community in the second half of the year, further leading industry standards and promoting the sustainable development of the Bitcoin ecosystem.
Morgan Stanley strategist Michael Wilson believes that if the Fed significantly cuts interest rates this month, the US stock market may face risks from further unwinding of yen arbitrage trades.
He pointed out that if the initial rate cut exceeds 25 basis points, it could support the yen. This would prompt yen traders to withdraw from US assets after domestic interest rates rise, potentially repeating the pattern that caused turmoil in global markets last month. "The unwinding of yen arbitrage trades could still be a risk factor behind the scenes," Wilson wrote in a report. "A rapid decline in US short-term interest rates could further strengthen the yen, prompting negative reactions from US risk assets." (Jin Shi)
According to an official announcement, OKX will launch spot trading for Catizen (CATI).
The specific schedule is as follows:
- CATI deposit opening time: September 9, 9:00 PM (UTC+8)
- CATI auction time: September 20, 6:00 PM to 7:00 PM (UTC+8)
- CATI/USDT spot trading opening time: September 20, 7:00 PM (UTC+8)
- CATI withdrawal opening time: September 21, 6:00 PM (UTC+8).
Modular blockchain Nal completes $10 million seed round financing
The fully ecological new asset modular blockchain network Nal announced on X that it has completed a $10 million seed round financing, which will be used for infrastructure and product upgrades.
Nal is a modular blockchain network aimed at creating a new Web3 application ecology that supports seamless transactions of new assets in diverse scenarios.
By providing inclusive and secure product-level solutions, Nal can efficiently issue digital/crypto assets, facilitate low-fee transactions, and ensure transparent distribution, with products reaching customers directly and providing point-to-point terminal services.
The Securities and Exchange Commission (SEC) of Nigeria will take action against individuals and cryptocurrency exchanges that do not comply with regulatory frameworks.
SEC Director-General Emomotimi Agama announced this move on Sunday, pledging to protect investor interests. Two weeks ago, the SEC temporarily approved two digital asset exchanges, Busha and Quidax, to operate under an accelerated regulatory incubation plan. The SEC warned that many unapproved crypto trading platforms are operating, and any entity unwilling to comply with regulations will face enforcement actions.
Early Ethereum advisor Steven Nerayoff has sued the law firm Covington & Burling for $100 million, alleging negligence in handling his defense in a 2019 US extortion case.
Nerayoff claims that Covington lawyers advised him not to provide key evidence to prosecutors, leading to delays in the case. He provided this evidence in June 2022, and the case was dismissed in May 2023. Covington denies the allegations and states that the lawsuit is baseless and will be vigorously defended.
Friend.Tech team relinquishes control of smart contracts after growth stagnation
According to The Block, the developers of the Web3 social network Friend.Tech have relinquished control of the smart contracts, effectively shutting down the network. Despite initial rapid growth, the release of version 2 and the airdrop failed to reignite user enthusiasm.
On September 8, the developers invoked the smart contract function to transfer control to an empty Ethereum address, locking the current system and preventing further changes. The team clarified in an announcement on X: "Currently, any fees from the smart contracts or the website no longer flow to the multi-signature wallet of the Friend.Tech development team." Although the platform appears to continue operating, the relinquishment of control has made it nearly impossible to introduce new features.
According to data from The Block, since June, the protocol has generated only about $60,000 in protocol fees. The revocation of contract ownership has hindered new teams interested in adding features to the social platform from acquiring it.
According to Fox reporter Eleanor Terrett, Senator Chuck Schumer sent a letter to his Senate colleagues outlining bipartisan legislative priorities for the remaining months of Congress. Cryptocurrency legislation was not mentioned, but artificial intelligence was listed as a priority. This contrasts with his previous statements during the Crypto4Harris town hall, where he insisted that cryptocurrency legislation would be an urgent priority.
"What are some must-read articles from the past 24 hours?"
In August 2024, BTC fell from a peak of $64,500 to around $59,000, with a low of $49,500. The investment and financing data in the crypto sector also showed a sluggish state, with total financing amounting to $785 million, a month-on-month decrease of 20.5%. The number of financing events was 111, consistent with the previous month.
Additionally, five crypto funds, including Robot Ventures, ParaFi Capital, and Lemniscap, announced a total of $246 million in fundraising, the highest number of fundraising events since October 2022, with the cumulative fundraising scale only second to June of this year (when Paradigm announced $850 million in fundraising).
Ethereum's "midlife crisis": Daily revenue down 99% in six months, once rose and fell three times
Is Ethereum's price important?
Yes. Even Justin Drake, a member of the Ethereum Foundation, believes in the latest AMA that "the appreciation of ETH is crucial for Ethereum's success."
However, in this cycle, Ethereum's price performance has been disappointing. According to Coingecko data, over the past year, Bitcoin has risen over 116% against the dollar, Ethereum has risen 44%, and Solana has surged over 548%. In a blue-chip portfolio, Ethereum's price performance is clearly lagging.
The absence of star projects, the sluggish price, and the dazzling performance of Ethereum killer "Solana" have plunged Ethereum into a public relations crisis over the past year, with doubts frequently surfacing. This criticism reached a boiling point when Bankless discussed it with Multicoin.
In the program, Bankless mentioned a set of concerning data: the annual growth rate of SOL/ETH reached 300% over the past year, while the ETH/BTC ratio has dropped by 50% over the past two years, halving its market cap relative to Bitcoin.
This data further amplifies Ethereum's lagging performance in this cycle. In the talk show, Multicoin partner Kyle Samani described Ethereum's current situation as a "midlife crisis."
Interestingly, although the Bankless host claimed that inviting Kyle to discuss Ethereum was the best choice, Multicoin has been bearish on Ethereum from the start and has invested in "Ethereum killers." Once famous for betting on "EOS," they have stubbornly refused to admit mistakes, and now their investment in Solana may have a chance to rival Ethereum.
Now the question arises: does Ethereum's price entering stagnation truly indicate some problem with Ethereum? Is Ethereum really experiencing a "midlife crisis," as Kyle suggested?
From Paradigm investment to soft rug, documenting a turbulent year for Friend.tech
On September 8, 2024, the once-popular crypto social application Friend.tech announced that its project management and ownership parameters had been set to the empty Ethereum address 0x000…000, effectively locking the current system and preventing further changes, meaning Friend.tech has relinquished control of the smart contracts, and the platform is essentially closed.
Friend.tech was created by anonymous developer Racer and launched on Base on August 10, 2023. On its first day, it reached 136,000 daily active users.
On August 15, Friend.tech announced it would airdrop reward points to app testing users. During the testing period, these points would be collected off-chain and have special uses after the official release of the application, planting the seeds for the eventual airdrop.
On August 19, Friend.tech stated on social media that it had completed a seed round of financing, with Paradigm participating.
Friend.tech soft rug? Where is Web3 social?
The former glory reflects today's desolation. The rise and fall of Friend.tech resembles a dramatic reversal, evoking deep sighs.
On September 8, Beijing time, Friend.tech's official Twitter released a significant announcement, setting its management and ownership parameters to 0x000…000, ostensibly to prevent any future changes to its fees or functions, but in reality, it was a complete relinquishment of control over the smart contracts. Some community users interpreted this as a halt and end to project development.
Despite Friend.tech's attempts to soothe market sentiment, emphasizing that this change would not affect the normal operation of the web client and that the development team would not extract any fees from the smart contracts or the platform, sentiments of "Friend.tech is dead" and "soft rug" spread across social media, revealing users' concerns and disappointments about Friend.tech's future.
Notably, since August, Friend.tech's official Twitter content has become unusually monotonous and mechanical, only posting the top five Clubs information of the day, with no other fresh content or interactions. This change not only conveys a sense of fatigue and helplessness from the project team but may also be a precursor to the internal struggles of the Friend.tech team and their eventual decision to relinquish control over the smart contracts.
Bitcoin ETF investors face $2 billion loss; what should ordinary investors do?
As September approaches with interest rate cuts and the US presidential election debates on the horizon, the well-known crypto research firm 10x Research has conducted an in-depth analysis of the current market situation, identifying three major uncertainties, particularly noting that Bitcoin ETF investors currently face potential losses of up to $2 billion. This article compiles and shares 10x Research's relevant viewpoints for readers' reference.
