Weekly DeFi Report:ANOTHER 75
Summary
Risk assets were trading with high volatility at FOMC meeting, most crypto assets fully recovered two days after the 10% drop caused by the as-expected FOMC meeting on Wednesday. Crypto market cap currently stabilising at $0.98 billion, Bitcoin and Ethereum are gyrating around $19k and $1.3k respectively. Funding rates turned less negative in accordance with the rising price actions. Without any individual crypto news, crypto market is expected to follow the macroeconomic trend in coming weeks. The Fed decided to raise another 75bps as expected on interest rate on Wednesday, from Fed’s Chair Powell’s speech, restoring price stability is the main course. Soft landing looks impossible in short term future. Without any confirmation of declining inflation concerns, the Fed will just keep on tightening. A total of another 100 or 125 basis points rate hike in 2022 is expected. Thus, the September CPI data (13 Oct) will be crucial, a significantly declining inflation number will be bullish for the crypto market.
Top 100 in the last 7 days:
Outperformers: XRP (+48.3%), CHZ (+42.8%), ALGO (+27.2%), APE (+21.3%), XLM (+20.6%), TKX (+16.6%), HNT (+15.4%), XCN (+11.6%)
Underperformers: RVN (-26.0%), EVMOS (-23.0%), ETC (-20.2%), DFI (-14.1%), CEL (-12.9%), EOS (-11.3%), XEC (-10.3%), ETH (-10.0%)
Deep Dive
Helium switching to Solana
- The decentralized wireless provider will migrate from its own network to Solana, with a majority community vote of 81%. The Helium Foundation claimed that this migration will allow Helium to become more compatible with other Defi projects. The team will focus on scaling the network instead of managing the blockchain itself onwards.
CFTC filed lawsuit against Ooki DAO
- The Commodity Futures Trading Commission (CFTC) has sued the decentralized autonomous organization (DAO), including the holders of its governance token. The CFTC accused Ooki DAO of using its structure to evade regulatory oversight.
Celsius may issue tradeable assets to customers
- According to the leaked news of Celsius revival plan, the firm may allocate its remaining funds to repay customers, also by issuing tradeable wrapped token — Cx tokens. For example, customers waiting to redeem their bitcoin will receive CxBTC tokens. Customers can choose to redeem their wrapped tokens or wait for a larger payout.
New Entrants/Money Raises
- Societe Generale, the French Bank introduced crypto services for asset manager clients who would like to integrate cryptocurrency into their portfolio.
- Nomura, one of the largest Japanese investment banks launched a crypto-focused venture capital arm — “Laser Venture Capital”. The fund will invest in companies in digital ecosystem, Defi projects, Cefi applications, Web3 and blockchain infrastructure.
- FTX crypto exchange, in talks to raise up to $1b at valuation of $32b, in line with prior round. Existing investors of FTX include Singapore’s Temasek, SoftBank’s Vision Fund 2 and Tiger Global. FTX has tried to acquire as many distressed assets as it could at a discount during crypto winter, including talks with Blockfi, Bithumb and Voyager Digital.
- 3Commas, an automated trading bot platform for crypto, raised $37m in Series B funding round led by Alameda Research, Jump Capital, Target Global and Dmitry Tokarev. The fresh fund will be mainly used for forming the new subsidiary known as DeCommas to focus on automating access to Defi protocols.
- Messari, the crypto intelligence service provider covering data analytics and research letters, raised $35m in Series B funding round, led by Brevan Howard Digital. After unveiling the successful raising, the firm also announced the launch of its two new products, “Protocol Metrics” and “Data Apps”.
DYOR, Enjoy your weekend!
