Headlines
▌CoinShares: First capital inflow in six weeks for digital assets last week
According to a report by CoinShares, digital asset investment products saw their first inflow in six weeks last week, with a total of $21 million. Bitcoin investment products accounted for the majority of inflows this week, with a net inflow of $20.4 million, while short-term Bitcoin outflows continue, reaching $1.5 million last week, bringing the total outflows since April to $85 million. In addition, Solana performed well with an inflow of $5 million, marking the 27th week of inflows this year and only the fourth week of outflows. Ethereum saw its seventh consecutive week of outflows, totaling $1.5 million.
▌Data: Cryptocurrency market financing in September was $505 million, a year-on-year decrease of 72.6%
According to data from RootData on October 2, the total financing amount in the cryptocurrency market in September 2023 was $505 million, a decrease of 72.6% compared to September 2022 ($1.848 billion), and a decrease of 24.5% compared to August 2023 ($669 million). In addition, there were 77 financing transactions in September, a decrease of 44.2% compared to the same period last year. The top three financing amounts in September were as follows: Core Scientific, a Bitcoin mining company, announced that Bitmain has agreed to invest $53.9 million in the company; Proofof Play, a blockchain gaming startup, completed a $33 million seed round of financing, with a16z and Greenoaks as lead investors; Cryptocurrency startup Bastion completed a $25 million seed round of financing, with a16z crypto as the lead investor.
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▌Data: Cryptocurrency venture capital in the third quarter decreased by 33% to $1 billion
According to data from LianGuai, the amount of funds for emerging DeFi and cryptocurrency projects decreased in the third quarter. Data from DeFiLlama shows that venture capital activity in the cryptocurrency industry decreased by 33% to $1 billion in the past three months. The cryptocurrency industry received over $1 billion in venture capital investment in 144 transactions from July to September. Venture capital investment decreased by 50% compared to the first quarter of 2023, when the treasuries of 228 projects increased by $2 billion, a 33% decrease from the $1.5 billion invested in 171 blockchain projects in the second quarter.
▌Grayscale applies to convert its Ethereum private trust fund ETHE into a spot ETF
Grayscale Investments has submitted a 19b-4 application to convert its $5 billion Ethereum private trust fund ETHE into an ETF.
Market
As of the time of writing, according to coinmarketcap data:
The recent trading price of BTC is $27,496.9, with a daily change of -1.56%;
The recent trading price of ETH is $1,664.24, with a daily change of -4.02%;
The recent trading price of BNB is $214.70, with a daily change of -1.49%;
The recent trading price of XRP is $0.51053, with a daily change of -2.16%;
The recent trading price of DOGE is $0.061975, with a daily change of -1.78%;
The recent trading price of ADA is $0.2588, with a daily change of -2.39%;
The recent trading price of SOL is $23.474, with a daily change of -1.91%.
Policy
▌Kenya Investigative Committee: The actions of Worldcoin “constitute espionage and pose a threat to national security”.
On October 2nd, Kenyan parliament members accused Eliud Owalo, the Cabinet Secretary of Information, Communication, and Digital Economy (CS), of misleading the authorities with his report on Worldcoin’s operations in the country. The special committee investigating the Worldcoin incident in Kenya submitted a report to the members of parliament last Thursday, stating that Worldcoin’s actions “constitute espionage and pose a threat to national security”. They are requesting the Criminal Investigation Department to investigate two related foreign companies, Tools for Humanity (TFH) Corp and Tools for Humanity GmbH, which are suspected of operating illegally in Kenya. The committee, chaired by Gabriel Tongoyo, Member of Parliament for Narok West, also hopes to coordinate legislation in parliament to regulate the country’s cryptocurrency system. The committee’s investigation report pointed out, “The above statement is inconsistent with the documents submitted by the CS on September 11, 2023. The CS stated in the submitted documents that Worldcoin started collecting data in public places from May 31, 2021, and applied to be registered as a data controller in Kenya on August 22, 2022 (one year after they started operating in Kenya), which contradicts the 2019 Data Protection Act.”
▌Coinbase Singapore receives major payment institution license from the Monetary Authority of Singapore.
On October 2nd, Coinbase announced that Coinbase Singapore has obtained a major payment institution (MPI) license from the Monetary Authority of Singapore; it will develop and release products tailored specifically for Singapore and carry out training and recruitment plans at its Singapore technology center.
▌IMF proposes a national-level cryptocurrency risk assessment matrix to identify potential risks.
On October 2nd, the International Monetary Fund (IMF) published a working paper proposing a national-level cryptocurrency risk assessment matrix to summarize vulnerabilities and potential policy responses in the cryptocurrency industry. It is understood that on September 29, the IMF released a working paper titled “Assessing the Macrofinancial Risks from Cryptocurrencies”. In the paper, Burcu Hacibedel and Hector Perez-Saiz propose a cryptocurrency risk assessment matrix (C-RAM) for countries to identify indicators and triggering factors of potential risks in the industry. The matrix also aims to summarize potential responses from regulatory authorities to the risks they may identify. The matrix consists of three steps. The first step involves using decision trees to assess the macroeconomic importance of cryptocurrencies or their potential impact on the macroeconomy. The second step involves looking at indicators comparable to those of traditional financial sectors for monitoring. The final step covers global macrofinancial risks that affect the systemic risk assessment of countries.
▌GSR Marketsprincipally obtains Singapore Payment Institution License
LianGuai reports that GSR Markets, the Singapore subsidiary of cryptocurrency market maker GSR, has obtained the principle approval of the main Payment Institution License issued by the Monetary Authority of Singapore.
▌United States SEC and 5 other US regulatory agencies issue warning on cryptocurrency investments
LianGuai reports that the United States Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA), Commodity Futures Trading Commission (CFTC), National Futures Association (NFA), Securities Investor Protection Corporation (SIPC), and the North American Securities Administrators Association (NASAA) have jointly issued multiple warnings regarding investments in cryptocurrency assets. The announcement warns that investments in cryptocurrency assets may be subject to abnormal volatility and speculation, and the platforms for buying, selling, borrowing, or lending these investments may lack important protections. The regulatory agencies warn that those who provide cryptocurrency asset investments or services may not comply with applicable laws, including federal securities laws. Investors who deposit funds or cryptocurrency assets into cryptocurrency entities may no longer have legal ownership of these assets and may be unable to retrieve them when desired. In addition, the announcement also details the risks faced by cryptocurrency asset investors, including unregistered offerings, lack of protection from the Securities Investor Protection Corporation (SIPC), and fraud. The regulatory agencies state that fraudsters continue to exploit the increasing popularity of cryptocurrency assets to lure retail investors into scams, often resulting in devastating losses. The risks of loss for individual investors participating in transactions involving cryptocurrency assets (including cryptocurrency securities) remain significant. In any speculative investment, the only funds you should risk are those that you can afford to lose completely.
Blockchain Applications
▌UBS pilots tokenized money market fund on Ethereum
LianGuai reports that UBS Asset Management has issued a pilot tokenized money market fund on the Ethereum public blockchain. This is one of the controlled pilots under the Monetary Authority of Singapore’s “Project Guardian.” In the initial pilot transactions, UBS Asset Management executed subscriptions and redemptions of tokenized funds represented by smart contracts. The company plans to collaborate with more partners and explore other investment strategies in further live pilots. UBS used its own UBS Tokenize platform.
▌Hokkoku Bank and Kono Shinkin Bank plan to launch stablecoin by the end of the year
LianGuai reports that Hokkoku Bank, a local bank in Japan, and Kono Shinkin Bank have announced plans to launch a local digital currency. In addition, Hokkoku Bank plans to introduce a deposit-backed stablecoin called Tochika by the end of this year.
▌Honda partners with FCF LianGuaiy to support Bitcoin and Ethereum payments
LianGuai reports that Japanese automotive giant Honda has established a partnership with blockchain payment system FCF LianGuaiy to accept Bitcoin and Ethereum as payment methods. This collaboration provides new flexibility and convenience for Honda’s products and services. Additionally, this initiative is expected to stimulate interest and investment in cryptocurrencies in Japan, potentially increasing public adoption of cryptocurrencies. As cryptocurrencies become increasingly integrated into everyday transactions, their value and relevance may grow.
Cryptocurrencies
▌Over the past 24 hours, the total amount of liquidations across the network reached $108 million
LianGuai reports that data shows the total amount of liquidations across the network reached $108 million in the past 24 hours, with approximately $13.834 million in long liquidations and $93.825 million in short liquidations. Bitcoin liquidations accounted for $40.5616 million, while Ethereum liquidations were approximately $27.3046 million.
▌Opinion: This round of BTC price increase is driven by spot trading
LianGuai reports that Greeks.live stated on social media that BTC has risen by over 3% today, but the main term implied volatility (IV) has hardly changed. Considering relevant news, this upward trend is clearly driven by spot trading. With the current market liquidity, spot buying orders for several thousand bitcoins are enough to support a steady increase in market prices. Unlike derivative-driven markets, spot-driven markets are more sustainable, and currently, it is very cost-effective to buy call options.
Important Economic News
▌US 10-year Treasury yield rises to 4.689%, the highest level since 2007
LianGuai reports that the US 10-year Treasury yield has risen to 4.689%, the highest level since 2007.
▌US 30-year Treasury yield reaches 4.815%, the highest since 2010
LianGuai reports that the US 30-year Treasury yield has reached 4.815%, the highest since 2010.
LianGuai Encyclopedia
▌DeFi
DeFi is an abbreviation for decentralized finance, which typically refers to digital assets, financial smart contracts, protocols, and distributed applications (DApps) based on Ethereum. In simple terms, it is financial software built on the blockchain.
Disclaimer: LianGuai, as a blockchain information platform, publishes articles for informational reference only and does not constitute actual investment advice. Please establish the correct investment concept and improve risk awareness.
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