Daily Report | Former Chinese Vice Minister of Finance Calls for Attention to Cryptocurrency Development Research; FTX Expects to Distribute $16 Billion to Creditors in Q4; Zhao Changpeng States He Will Continue to Invest in Blockchain/Decentralized Technology
Highlights of September 29Organizer: Fairy, ChainCatcher
Important News:
- DL News: RootData Launches Crypto Project Popularity Rankings, Helping Investors Make More Scientific Decisions Based on Over 4.3 Million User Behaviors
- Zhao Changpeng States He Will Continue to Invest in Blockchain/Decentralized Technology, Artificial Intelligence, and Biotechnology
- FTX Expected to Distribute $16 Billion to Creditors in Q4, Hearing on October 7 May Determine Whether the Plan Can Be Realized on Schedule
- Fully Homomorphic Encryption Network Mind Network Completes $10 Million Pre-A Financing, with Participation from Animoca Brands and Others
- Former Chinese Vice Minister of Finance: Significant Evolution in US Crypto Policy This Year, We Must Focus on Researching the Development of Cryptocurrencies
- Listed Company Remixpoint Recently Purchased Approximately $5.27 Million in Crypto Assets
"What Important Events Happened in the Last 24 Hours"
DL News: RootData Launches Crypto Project Popularity Rankings, Helping Investors Make More Scientific Decisions Based on Over 4.3 Million User Behaviors
According to DL News, the crypto asset data platform RootData announced the official launch of its V3 version, revealing real attention trends through multidimensional data from 4.3 million user behaviors.
The core feature of the V3 version is the ranking of the top 100 popular crypto projects. This popularity index is based on weighted calculations of user search, click, and voting behaviors on RootData, as well as multidimensional data from platform X, aiming to restore the true popularity of crypto projects and help users improve the accuracy of their investment decisions.
Since its launch, RootData has accumulated over 2 million independent users. Its data has been widely cited by mainstream media such as The Wall Street Journal, CoinDesk, and Cointelegraph, as well as well-known cryptocurrency influencers.
Additionally, RootData secured $1.25 million in seed funding led by NLVC in April. Other investors include the listed company Boya Interactive (00434.hk), Bonfire Union Ventures (the fund of Mask Network), Skyland Ventures, Gavin, founder of Orbiter Finance, and Jackson, co-founder of 0xScope.
CCData: US Federal Reserve's Rate Cuts This Year Expected to Reduce Stablecoin Interest Income by a Total of $1.5625 Billion
According to Cryptonews, the Federal Reserve recently decided to cut interest rates for the first time since March 2020, which is expected to impact the income streams of the five major centralized stablecoins. According to a report released by CCData on September 27, these stablecoins collectively hold nearly $125 billion in US Treasury bonds, and each 50 basis point (bps) cut could result in a loss of about $625 million in interest income. The report shows that US Treasury bonds account for 80.2% of the reserves held by major stablecoins.
Data from the Chicago Mercantile Exchange's FedWatch tool indicates that the market expects a total rate cut of 75 basis points by the end of 2024, including a 50 basis point cut in November and a 25 basis point cut in December. If these predictions come true, stablecoins could face an additional income loss of $937.5 million, bringing the total potential loss from the Federal Reserve's easing policy to $1.5625 billion.
Among the affected stablecoins, Tether's USDT holds the largest share of US Treasury-backed reserves, totaling up to $93.2 billion, including US Treasury bonds and repurchase agreements. Following closely is Circle's USD Coin (USDC), which holds $28.7 billion in US Treasury bonds through the Circle Reserve Fund. Other stablecoins, such as First Digital USD (FDUSD), PayPal USD (PYUSD), and TrueUSD (TUSD), hold smaller positions in Treasury bonds, amounting to $1.83 billion, $634 million, and $502 million, respectively.
Despite these potential financial setbacks, the stablecoin market continues to show resilience. According to CCData, in September, the total market capitalization of stablecoins increased by 1.50%, reaching $172 billion, marking 12 consecutive months of growth.
Zhao Changpeng: Will Continue to Invest in Blockchain/Decentralized Technology, Artificial Intelligence, and Biotechnology
Zhao Changpeng posted on platform X, stating that the food tastes amazing, and being able to eat more than one piece of fruit every day is truly a luxury. He expressed gratitude for everyone's support, which means a lot to him and helps him stay strong during the darkest times.
Some quick updates/thoughts: Giggle Academy is progressing well and will become an important part of my life in the coming years. I will continue to invest in blockchain/decentralized technology, artificial intelligence, and biotechnology. I am a long-term investor who cares about impact rather than returns. I will also dedicate more time and funds to charity (and education). I have some rough ideas. I am still writing my book and think I am about two-thirds done. Writing the book has been much more labor-intensive than I expected, but I will persevere.
FTX Expected to Distribute $16 Billion to Creditors in Q4, Hearing on October 7 May Determine Whether the Plan Can Be Realized on Schedule
According to Forbes, FTX plans to return $11-16 billion to creditors in the fourth quarter of 2024, which could provide significant benefits to the cryptocurrency market, especially for Bitcoin, SOL, and Solana network cryptocurrencies. While the specific date is still unclear, FTX has proposed that the distribution will occur within 60 days after the restructuring plan takes effect.
The next hearing regarding the restructuring plan is scheduled for October 7. If approved, FTX will have 60 days to distribute assets to creditors, meaning the returned cash could reach previous cryptocurrency buyers by some time before December 7. A significant portion of this cash may remain within the cryptocurrency ecosystem, as creditors may reinvest the funds into their favorite tokens or ETFs.
However, there are still some risks that could undermine this positive event. Firstly, court delays could further extend the date for returning funds. Additionally, some FTX creditors are dissatisfied with the settlement plan, which only stipulates cash returns.
Former Chinese Vice Minister of Finance: Significant Evolution in US Crypto Policy This Year, We Must Focus on Researching the Development of Cryptocurrencies
The 2024 Tsinghua Wudaokou Chief Economist Forum was held in Beijing on September 28. Former Vice Minister of Finance Zhu Guangyao attended and delivered a speech. Zhu called for a focus on researching the development of cryptocurrencies, stating, "It does have negative effects, and we must fully recognize its risks and harms to the capital market, but we must study the latest changes and policy adjustments internationally, as it is a crucial aspect of the development of the digital economy."
Zhu reviewed the development of cryptocurrencies, noting that for over a decade, the US has believed that cryptocurrencies have a significant destructive power against international anti-money laundering and anti-terrorism financing efforts. Additionally, the extreme volatility of cryptocurrency values has a huge impact on international financial markets, but this year, US policy has undergone significant evolution.
Zhu introduced that Trump's campaign platform explicitly included cryptocurrencies, and he publicly stated, "We must embrace cryptocurrencies, or China will replace us." The US SEC has also approved the listing of 11 Bitcoin ETFs in the stock and futures markets. Meanwhile, in emerging market countries and BRICS nations, Russia, South Africa, Brazil, and India have also taken action.
Fully Homomorphic Encryption Network Mind Network Completes $10 Million Pre-A Financing, with Participation from Animoca Brands and Others
The fully homomorphic encryption network Mind Network announced the completion of $10 million in Pre-A financing, with major investors including Animoca Brands, Arkstream Capital, Cogitent Ventures, G Ventures, MH Ventures, Master Ventures, Moonhill Capital, SwissBorg Ventures, and IBC Group. This round of financing also attracted participation from well-known angel investors, including Ether.fi CEO Mike Silagadze, as well as notable figures in the crypto space such as Mario Nawfal, Mr. Block, and Kyle Chassé. Following this financing, Mind Network plans to expand its business by integrating more staking protocols and continue to release supporting infrastructure. Users holding staked assets from partner agreements can exchange vFHE on Mind Network and participate in FHE voting.
Mind Network is described as a fully homomorphic encryption (FHE) layer for AI and POS networks. This layer accepts re-staked tokens from ETH, BTC, and AI blue-chip tokens and operates as an FHE verification network, providing consensus, data, and cryptoeconomic security for decentralized AI, DePIN, EigenLayer, Symbiotic, and Babylon AVS POS networks. Mind Network has previously received support from Binance Labs, Hashkey, Big Brain, and Chainlink, and has been funded by the Ethereum Foundation for its FHE research on Ethereum.
Vitalik Releases New Article: "Making Ethereum's Alignment Clear"
Ethereum co-founder Vitalik has published an article titled "Making Ethereum's Alignment Clear," discussing how to balance the Ethereum client teams, researchers, Layer 2 teams, application developers, and local community groups to ensure that all these projects collectively build a unified Ethereum ecosystem, introducing the concept of "Ethereum alignment."
This can include value alignment (e.g., open source, minimizing centralization, supporting public goods), technical alignment (e.g., adopting ecosystem-wide standards), and economic alignment (e.g., using ETH as a token whenever possible). Vitalik analyzes from the perspectives of open source, open standards, decentralization and security, and positive-sum, with the ideal goal of seeing more entities like L2beat emerge to track various projects' performance in meeting the above standards and other standards proposed by the community. Instead of competing for connections, projects should compete on alignment based on easily understandable standards.
"Dashboard organizations" like L2beat, block explorers, and other ecosystem monitoring tools are excellent examples of this principle successfully operating within the Ethereum ecosystem. If the different aspects of alignment can be made clearer without concentrating on a single "overseer," this concept can be made more effective and better serve the fairness and inclusivity that the Ethereum ecosystem strives for.
Listed Company Remixpoint Recently Purchased Approximately $5.27 Million in Crypto Assets
Japanese listed company Remixpoint officially disclosed the details of its latest round of crypto asset investments on September 27, spending a total of 750 million yen (approximately $5.27 million) to acquire 64.4 BTC (600 million yen), 130.1 ETH (50 million yen), 2,260.5 SOL (50 million yen), and 12,269.9 AVAX (50 million yen).
This investment is the first execution of the company's "total of 1.5 billion yen (approximately $10.55 million) virtual currency purchase plan" announced on September 26, aimed at reducing the risk of yen depreciation through diversified investments and optimizing cash management strategies.
Data: FTX Creditors May Only Recover 10-25% of Their Cryptocurrency
According to the latest revised bankruptcy documents shared by FTX creditor Sunil Kavuri, FTX creditors may only recover 10-25% of their cryptocurrency.
Kavuri explained that creditors will be compensated based on the cryptocurrency prices at the time of the application, which were significantly lower than today’s prices. For example, at the time of the legal application, Bitcoin was priced at around $16,000. Kavuri stated that many FTX customers have suffered mental distress, panic attacks, divorce, and even suicidal thoughts due to the theft of their life savings. Other creditors have expressed similar feelings of anger. Kavuri also pointed out that Sam Bankman-Fried violated FTX's terms of service and the broader definition of property rights by using customer funds to repay outstanding debts.
It is reported that the FTX bankruptcy management team previously reached an agreement with Emergent Technologies, founded by Bankman-Fried, to obtain $600 million in Robinhood shares to repay creditors.
US Bitcoin Spot ETF Total Net Assets Reach Two-Month High
According to The Block, US Bitcoin spot ETFs have seen inflows for seven consecutive trading days, with Friday's inflow being the largest single-day inflow since early June, reaching a nearly four-month high.
According to data from SoSoValue, the total net assets of these funds are $61.21 billion, the highest since July 29, when the total net assets were $61.73 billion.
"What Exciting Articles Are Worth Reading in the Last 24 Hours"
Vitalik's New Article: It's Time for the Entire Ethereum Ecosystem to "Align"
In the Ethereum ecosystem, balance is one of the most important governance challenges—or more accurately, the integration of decentralization and cooperation. The strength of this ecosystem lies in the wide range of individuals and organizations—client teams, researchers, Layer 2 network teams, application developers, local community groups—all striving towards their respective visions of what Ethereum could become. The main challenge is to ensure that all projects collectively build an Ethereum ecosystem rather than 138 incompatible territories.
To address this challenge, many in the Ethereum ecosystem have proposed the concept of "Ethereum consistency." This may include value consistency (e.g., open source, minimizing centralization, supporting public goods), technical consistency (e.g., collaborating with ecosystem-wide standards), and economic consistency (e.g., using ETH as a token whenever possible). However, this concept has historically been poorly defined, leading to the risk of social control: if consistency means having the right friends, then the concept of "consistency" fails.
To address this issue, I believe we should make the concept of consistency clearer by breaking it down into specific attributes that can be represented by specific metrics. Everyone's list will differ, and the metrics will inevitably change over time. However, I believe we already have some solid starting points.
RootData Launches First Web3 Project Popularity Rankings, Helping Investors Capture the Most Consensus Projects
Most investments in the Web3 space are essentially attention investments.
Crypto KOL @redphonecrypto once stated that a token's ability to attract attention is more important than other metrics. This bull market has once again highlighted this truth, as meme coins have outperformed "value coins."
However, in today's environment filled with distractions and noise, determining the true direction of attention is not easy. Users are often misled by marketing messages from social media platforms like X or false TVL data from project teams.
The Web3 market also lacks a more authoritative data analysis platform to guide users in making attention investments.
To address these pain points, the Web3 asset data platform RootData has launched the first "Web3 Popular Project Rankings." This popularity ranking helps users capture the real pulse of attention through 4.3 million genuine user behavior data, improving the accuracy of users' investment decisions.
Today's Meme Perspective Showcase: Hilarious Dog + Cute Cat, Will We See a Thousandfold Surge Again in Half a Day?
Today is September 29, 2024, an ordinary rest day, and the on-chain market has not taken a break either. From night until morning, diligent on-chain players have made new gains, with several new angles of meme gold dogs emerging: Dogecoin $Doge founder Shibetoshi Nakamoto's new cat caramelo, the hilarious dog Point of dog…..
What are these new concepts, and which similarly named gold dogs have appeared? Without further ado, let's take a look!
Founder’s Handwritten Note: After Maker Transforms into Sky, What’s Next?
Sky was officially launched 8 days ago, and we feel like we have entered a new era.
On September 18, Sky launched USDS and SKY tokens, activating features such as "USDS Savings Rate" and "USDS Token Rewards," allowing people to experience the Sky ecosystem for the first time. Many different front-end operators provide related services, including sky.money, summer.fi, and defisaver.com.
In these 8 days, the new tokens have already seen significant adoption. The supply of USDS has exceeded 570 million, with net inflows reaching $200 million.
