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- Bitcoin-friendly Javier Milei wins Argentina presidential election 🇦🇷🗳️
Bitcoin-friendly Javier Milei wins Argentina presidential election 🇦🇷🗳️
PLUS: Fidelity Files Ethereum Spot ETF Application. Van Gogh NFTs sell for millions as tokens moon again.
Manan Vora
November 20, 2023
Snapshot Web3
November 20, 2023
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Regulatory and Legal News
Bitcoin-friendly candidate Javier Milei emerged victorious in Argentina's presidential run-off election, securing over 55% of the votes with nearly 99% counted. A vocal critic of the central bank and advocate for Bitcoin, Milei attributes the country's inflation crisis to the bank's policies. However, he hasn't indicated plans to make Bitcoin legal tender. In contrast, his opponent, Sergio Massa, who conceded after more than 90% of the votes were tallied, proposed launching a central bank digital currency to address Argentina's inflation challenges. Milei will assume office on December 10.
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Innovation and Launches
Fidelity has applied for an Ethereum Spot ETF, designating Coinbase as the custodian in the application. This move aligns with a trend of major financial institutions seeking approval for spot Ethereum ETFs, while the SEC has yet to decide on spot Bitcoin ETFs. Recent SEC delays on Bitcoin ETF decisions include the Global X Spot BTC ETF. Analysts anticipate that if Bitcoin ETFs are approved, Ethereum ETFs may follow suit. The critical date for Bitcoin ETF decisions is highlighted as January 10, 2024. Following Fidelity's application, Ethereum experienced a modest 0.5% increase in value.
Tech firm Republic will issue a blockchain-based security token, the Republic Note, on the Avalanche blockchain, offering profit-sharing to investors from its diverse $2.6 billion investment portfolio. Over $30 million was raised in a presale, with dividends in USD Coin paid when the pool hits $2 million. Republic's Web3 wallet will distribute dividends, and the notes, priced at $0.36, won't be tradeable assets but will list on select securities exchanges in the next few months. Avalanche was chosen for its scale and inclusivity. The Republic Note, in development since 2016, has a capped total supply of 800 million.
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NFT, Gaming and Metaverse
Two tokenized versions of Van Gogh paintings as non-fungible tokens (NFTs) were sold for over $2.5 million combined, with one NFT fetching $1.3 million and another $1.27 million in Bitcoin. The sales are seen as a potential revival for the NFT market, which experienced a slump in recent months. Data from CryptoSlam.io shows a significant rise in global NFT sales in the second week of November, totaling $238 million, a 40% increase from the start of the month. Bitcoin-based NFT collections outperformed those on the Ethereum network during this period.
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Scams and Hacks
Decentralized exchange dYdX used its insurance fund to cover $9 million in user liquidations on November 17, citing a "targeted attack" that affected Yearn.finance's token (YFI). The YFI token experienced a 43% drop, prompting concerns of an exit scam. The attack focused on long positions in YFI, resulting in the liquidation of nearly $38 million. dYdX founder Antonio Juliano suspects market manipulation and assures users that funds were unaffected, with the v3 insurance fund still holding $13.5 million. The incident led to a $300 million market capitalization loss for YFI. Investigations are ongoing.
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Interesting Reads
Indian crypto firms are increasingly looking to expand to Dubai due to the region's favorable regulatory environment, ease of business setup, and access to international markets. India, despite being the second-largest crypto market by transaction volume, has faced challenges with strict tax rules, leading to a decline in industry volumes. The trend of Indian crypto firms moving to Dubai is seen as a response to regulatory uncertainties and high tax rates in India. The UAE's dedicated regulator, Virtual Assets Regulatory Authority (VARA), oversees digital assets in Dubai, providing clarity and support for Web3 companies. Dubai's growing crypto ecosystem, low taxes, and international connectivity make it an attractive destination for Indian crypto ventures. However, industry experts caution that regulatory arbitrage may not last long, and Indian authorities are likely to address the issue.
The active supply of both Bitcoin and Ethereum has reached record lows, with only 30.12% of Bitcoin's supply changing hands in the past year, compared to a peak of over 59% between March 2017 and 2018. Similarly, Ethereum's active supply hit a record low of 39.15%, down from over 86% between July 2016 and 2017. This trend is notable as Bitcoin approaches its anticipated block emission rewards halving projected for April of the following year. The percentage of tokens untouched for three and five years is also at record lows, although transaction activity on both networks remains near its peak. The inactive supply of Bitcoin over three years is at 41.42%, down from over 26% in late 2019, and the five-year inactive supply has decreased from 17% to 29.87%.
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Resource of the Day
NFT DApps, the convergence of decentralized applications (DApps) and non-fungible tokens (NFTs), empower users to create, buy, sell, and trade digital assets securely on blockchain platforms. These DApps, spanning art and collectibles, gaming, virtual real estate, marketplaces, and decentralized finance (DeFi), utilize NFTs to represent ownership of unique digital assets. Creating an NFT DApp involves defining the concept, choosing a blockchain, setting up the development environment, developing smart contracts, integrating wallets, implementing minting functionality, thorough testing, deployment, strategic launch, marketing, and community engagement. Challenges include technical scalability, smart contract security, market differentiation, and navigating legal complexities. Successful NFT DApps offer innovative solutions across various industries, transforming digital ownership and democratizing access to the global digital economy.
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Miscellaneous
The anticipation of a spot Bitcoin exchange-traded fund (ETF) being approved in the United States has driven increased demand for Bitcoin, causing a surge in transaction fees. On November 16, the Bitcoin blockchain recorded $11.6 million in fees, with the average transaction fee at $18.69—up 113% from the previous day and 746% from a year ago. Bitcoin's price has been rising since BlackRock filed for a spot BTC ETF in June, prompting other major asset managers like Fidelity, ARK Invest, and WisdomTree to submit similar proposals. While the SEC has yet to make a decision, amended filings from these firms suggest progress and potential approval in January 2024, leading to expectations of increased institutional investment and Bitcoin reaching new highs.
Decentralized exchange dYdX has implemented new measures to address trading-related risks after utilizing $9 million from its insurance fund to cover user losses resulting from a targeted attack on the YFI token. The exchange increased margin requirements on less liquid markets, affecting tokens such as EOS, 0x Protocol (ZRX), Aave, Algorand, Internet Computer, Monero (XRM), Tezos, Zcash, SushiSwap, THORChain, Synthetix, Enjin, 1inch Network (1INCH), Celo, Yearn.finance, and Uma. dYdX founder Antonio Juliano referred to the attack as a "targeted attack" on the exchange, and the team announced the ban on "highly profitable trading strategies" on dYdX. The YFI token experienced a 43% decline in a few hours on Nov. 17, wiping out over $300 million in market capitalization from recent gains.
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The information provided in this newsletter is for informational purposes only and should not be interpreted as investment advice, endorsement, or recommendation. Cryptocurrency investments carry significant risk due to their volatility. You should consider your financial situation, investment goals, and risk tolerance before making any investments. We strongly recommend consulting a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.
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