Headlines
▌Data: Nearly 100 Cryptocurrency Hedge Funds Have Closed Since the Beginning of the Year, Cryptocurrency Funds Underperformed Bitcoin in the First Half of the Year
LianGuai reported that according to data from 21e6 Capital AG, a Swiss investment advisor cited by Bloomberg, there have been over 700 cryptocurrency funds globally this year, but since the beginning of 2023, 97 funds (13% of total) have closed. In addition, the average return rate of these cryptocurrency funds in the first half of the year was 15.2%, lagging behind Bitcoin’s 83.3% increase. The report stated that due to industry volatility last year, many funds held more cash than usual. Maximilian Bruckner, Director of Marketing and Sales at 21e6, said that market-neutral strategy funds performed the worst, with an average return rate of only 6.8% for the first six months. Directional betting funds had an average return rate of 21.9%. However, they still underperformed Bitcoin. While many funds had to slow down their operations due to regulatory uncertainties from popular banking partners and fund management firms, fully delegated cryptocurrency funds did not face this issue. Meanwhile, quantitative funds were more susceptible to volatility in the market.
▌US President Biden Shows Off Cryptocurrency Community “Laser Eyes” Logo on Coffee Cup
LianGuai reported that US President Biden claimed on social media that the taste of a cup of Joe has never been so wonderful, and attached a video of himself drinking coffee from the cup. LianGuai discovered that the cup was imprinted with a facial image of Biden with the “laser eyes” logo, which is a favorite element added by Bitcoin enthusiasts when designing personal photos. It is reported that the “laser eyes” phenomenon was part of the movement on social media to push the Bitcoin price to reach $100,000 by the end of 2021, but this goal was not achieved.
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▌Bloomberg ETF Analyst: 11 Ethereum Futures ETF Applications Received So Far
LianGuai reported that Bloomberg ETF analyst James Seyffart tweeted that there have been 11 applications for Ethereum Futures ETFs, with Proshares applying for the fourth Ethereum Futures ETF. This ETF is a weighted combination of Bitcoin and Ethereum ETFs, similar to the application submitted by Bitwise an hour ago.
Market
As of press time, according to coinmarketcap data:
BTC recently traded at $29,060.5, with a daily change of -0.58%;
ETH recently traded at $1,827.21, with a daily change of -0.58%;
BNB recently traded at $241.5, with a daily change of +0.17%;
XRP recently traded at $0.6366, with a daily change of -4.55%;
DOGE recently traded at $0.073418 with a daily change of -0.52%;
ADA recently traded at $0.2936 with a daily change of +0.32%;
MATIC recently traded at $0.664 with a daily change of -0.73%.
Policies
▌Oman’s financial regulator seeks to introduce virtual asset regulations
LianGuai reported that the Sultanate of Oman is about to introduce its own virtual asset regulations, and its financial market regulator is seeking public opinions on its proposed regulatory framework for managing cryptocurrencies and other digital assets. The Capital Market Authority of Oman stated in a consultation paper released on July 27 that it is currently drafting a comprehensive framework in the field of virtual assets, including various business requirements and market abuse prevention. The consultation paper includes 26 questions for stakeholders to provide feedback. It covers regulatory and licensing requirements for Virtual Asset Service Providers (VASPs), corporate governance, risk management, and proposals for the issuance of virtual assets. It revealed that the proposed framework includes utility tokens, security tokens, stablecoins with legal support and asset support, as well as other digital currencies that fall under the definition of virtual assets by the Financial Action Task Force. However, the issuance of privacy coins may be prohibited pending public feedback.
Blockchain Applications
▌Bank of Russia unveils digital ruble symbol and commission rates
LianGuai reported that the Bank of Russia’s central bank digital currency (CBDC) project has now obtained an official symbol. The Bank of Russia also announced the commission rates, which will only be charged starting from 2025. In addition to the logo, the Bank of Russia also displayed the commission fees for different types of operations with CBDC. By the end of 2024, all services will be free, but starting from 2025, B2B transactions will be charged a fee of 15 rubles ($0.16) per transaction, and individuals will pay 0.3% of the transaction amount when transferring to a commercial account, and 0.2% when paying civil servant service fees.
▌Austria plans to include cash payments in the constitution to oppose the implementation of a digital euro
LianGuai reported that the Austrian government plans to write the right to use physical currency into the constitution to address the controversial topic of digital currency raised by the opposition party. The Vienna government has established a special working group responsible for determining how to enshrine the use of physical currency as a constitutional right. This will ensure that stores continue to accept cash and guarantee that all residents can use ATMs. A survey released by the OGM research institute in June showed that about 54% of Austrians still use bank cards to pay for groceries, while the percentage of those using bank cards is 37%. The far-right Freedom Party has conducted extensive campaigns against cash restrictions, which is part of its opposition to the European Central Bank’s initiative to establish a digital euro. Despite being a major component of the economy, many Austrian restaurants and cafes (mostly outside the capital) still do not accept digital payments.
Cryptocurrency
▌Report: Bitcoin Price Needs to Exceed $98,000 Before Halving for Mining Companies to Avoid Losses
LianGuai reported that according to a report published by “MadeEasy-Finance”, RIOT expects its mining capacity to double by 2024, but the company and Bitcoin miners in general may face significant resistance from the halving. Of course, when the BTC block reward is reduced by 50%, the main source of income for miners will be halved. Bitcoin mining companies that are publicly listed may only avoid losses if the price of BTC remains at least $98,000 before the halving next year. Miners like RIOT can also issue new stocks to provide funding for their operations. This dilutes existing stocks, which means that even if the company’s fundamental fundamentals are maintained, the stock price may not keep up. Although public mining stocks outperformed Bitcoin in 2023, the increase in the amount of Bitcoin sent to exchanges may indicate a decline in momentum. Therefore, a significant increase in the price of Bitcoin is needed to ensure that miners remain profitable at today’s hash rate levels.
▌Report: 16 Largest Public Mining Companies Account for 16% of BTC Production
LianGuai reported that broker Bernstein stated in a research report on Thursday that Bitcoin (BTC) miners are significantly increasing their capacity, with the 16 largest public mining companies accounting for 16% of BTC production. Bernstein stated that their current combined mining capacity is 72 exahashes (EH/s) per second, and pointed out that the company plans to increase it by 182% in the next 2-3 years. Analysts stated, “Large-scale miners with low production costs and low debt may be the biggest beneficiaries of increased capacity, as they have greater ability to withstand any fluctuations in Bitcoin prices and the cost increase expected in the first quarter of 2024 due to the halving.”
▌NFTMarket Zora Launches Protocol Rewards, Creators and Developers Can Receive Minting Fee Rewards
On August 4th, NFT market Zora launched protocol rewards, allowing creators and developers to receive on-chain rewards on Zora. The protocol rewards are provided by the minting fees, which will now be automatically distributed to creators and developers. Starting now, creators of free minting projects and developers building on Zora will receive a portion of the fees from each minting. The minting fee remains at 0.000777 ETH per mint, ensuring a significant reduction in Zora’s portion. The remaining portion will be provided to creators and developers for new experiences and tools.
▌Data: CME Crypto Options Trading Volume in July Grew by 24%, First Increase in Four Months
LianGuai reports that the trading volume of cryptocurrency options on the Chicago Mercantile Exchange (CME) in July recorded a double-digit growth. Data tracked by CCData shows that trading activity increased by 24%, reaching $940 million, the first increase in four months. The trading volume of Bitcoin options increased by 16.6% to $734 million, while the trading volume of Ethereum options increased by 60% to $207 million. In addition, according to CCData, CME’s futures trading volume decreased by 17.6% to $39.1 billion, while the total trading volume of derivatives (futures and options) decreased by 17.0% to $40.1 billion. A report from CCData suggests that the increase in Bitcoin options trading volume on CME indicates that institutions may use options to hedge positions due to ongoing market uncertainty.
▌Cryptocurrency investments in Latvia decreased by 50% last year
LianGuai reports that according to data from Latvijas Banka, cryptocurrency investments in Latvia decreased by 50% last year. The bank stated that based on the results of a survey on payment card usage, 4% of the population purchased cryptocurrency in February 2023, while the overall proportion in 2022 was 8%. Latvia has a population of 1.84 million. The central bank attributes the decline in interest in cryptocurrency to negative sentiments related to fraud and bankruptcy among major market participants, “unwise” investments that have already been made, the connection between cryptocurrency and money laundering, and the increasing connection between cryptocurrency companies and regulatory authorities. The report stated that in 2022, Latvians transferred 51.8 million euros (57 million US dollars) to cryptocurrency wallets, a pace that slowed to 10.7 million euros (11.8 million US dollars) in the first quarter of 2023. Most of these accounts are held by companies in European countries such as Lithuania, Estonia, Malta, and Ireland.
Important Economic Developments
▌US non-farm payrolls increase by 187,000, below market expectations
LianGuai reports that US non-farm payrolls increased by 187,000 in July, the smallest gain since December 2020, with an estimated increase of 200,000 and a previous increase of 209,000.
LianGuai Encyclopedia
▌Lack of Turing completeness
Although the Bitcoin script language can support various calculations, it cannot support all calculations. The most significant limitation is the absence of loop statements. The purpose of not supporting loop statements is to avoid infinite loops during transaction confirmation. In theory, this is an obstacle that can be overcome for script programmers, as any loop can be simulated using repeated if statements. However, this approach would result in inefficient use of script space. For example, implementing an alternative elliptic curve signature algorithm may require 256 repeated multiplications, each of which needs to be individually encoded.
Disclaimer: LianGuai, as a blockchain information platform, publishes articles for informational purposes only and should not be considered as actual investment advice. Please establish the correct investment concept and be sure to increase risk awareness.
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