Calea Digital meticulously selects news that we believe has the most significant impact on the Blockchain & Web3 trends ecosystem based on a set of well-defined criteria. Our aim is to highlight developments that not only demonstrate the innovative strides being made within the space but also to provide insights into how these advancements can redefine the technological, economic, and social landscapes. We prioritize stories that showcase groundbreaking applications of blockchain technology, notable shifts in tokenomics and governance models, and major regulatory or legal milestones that might influence the framework within which these technologies operate. By focusing on these key areas, we ensure our audience is informed about the most consequential changes shaping the future of decentralized systems and digital assets.
Below, we summarize the most important news from the blockchain and cryptocurrency sector over the past week, explaining the news, highlighting the key points and outlining conclusions and next steps.
General Web3 Trends
Severe DANA Weather Phenomenon Hits Spain, Causing Widespread Disruptions
A notable Depresión Aislada en Niveles Altos (DANA), or isolated high-level depression, has recently affected various regions in Spain, leading to significant weather disturbances. This meteorological event has resulted in heavy rainfall, flooding, and strong winds, impacting daily life, infrastructure, and transportation systems across the country.
Key Points:
The DANA has brought severe weather, including torrential rains and flash floods, particularly affecting the eastern and southern parts of Spain.
Several regions, including Valencia, Murcia, and parts of Andalusia, have issued emergency alerts and activated response plans.
Infrastructure, such as roads and railways, has been severely disrupted, with numerous closures due to flooding and landslides.
Meteorologists anticipate continued adverse weather conditions over the coming days, with potential for further damage in affected areas.
Authorities are advising residents to stay informed through official channels, avoid unnecessary travel, and adhere to safety guidelines to mitigate risks. Ongoing monitoring and response efforts will focus on providing aid and restoring normalcy as soon as weather conditions permit.
At @CaleaDigital, we send all our support and love to those who are going through this difficult time. Thank you to the emergency services, volunteers and organisations working tirelessly to bring help and hope. Together, we can get through this.
USA Election Day Impact on the Crypto Market
Today's elections are poised to significantly affect the cryptocurrency market, with potential outcomes shaping policy and regulatory changes, influencing investor sentiment, and contributing to market volatility. As election results emerge, stakeholders in the crypto space are closely watching for indicators of future government stances on digital assets, which could alter the landscape for both institutional and retail investors.
Key points:
Potential policy shifts could lead to stricter or more lenient regulations, affecting market operations and investment strategies.
Investor confidence may fluctuate based on perceived pro-crypto or anti-crypto sentiments of elected officials.
Market trends could see increased volatility as reactions to the election results mix with broader economic signals.
The lineup in key regulatory bodies could change, impacting enforcement actions and legislative priorities concerning cryptocurrencies.
In the short term, expect immediate market reactions as investors process election outcomes. Long-term, the crypto market will need careful monitoring as regulatory stances evolve based on the new political landscape.
BTC, ETH and Crypto
BlackRock Bitcoin ETF breaks $30B; US ETFs set to hit 1M BTC holdings
BlackRock's Bitcoin ETF has reached over $30 billion in holdings, highlighting strong demand for Bitcoin. The ETF achieved this milestone in less than 10 months, and with US Bitcoin ETFs close to holding 1 million BTC, they are on the verge of becoming the largest Bitcoin holders globally. The continued inflows could propel Bitcoin to a new all-time high, though some analysts express caution about the rally's sustainability.
Key points:
BlackRock's Bitcoin ETF holdings have surpassed $30 billion in less than 10 months.
US Bitcoin ETFs are nearing 1 million BTC in holdings, potentially becoming the largest Bitcoin holders.
ETFs saw significant inflows of $870 million on Oct. 29, nearing the largest single-day inflow since March 12.
Analysts predict Bitcoin could reach $80,000, driven by option market structures and potential Republican presidential win.
Some view the Bitcoin rally as a "Trump hedge," with concerns about lacking macroeconomic support for long-term highs.
Analysts will be closely monitoring Bitcoin's price movements in response to ETF inflows and political developments related to the upcoming US presidential election. The broader economic context and regulatory changes will be key factors in determining Bitcoin's future price trends.
Web3 Companies
Huawei integrates digital yuan into HarmonyOS NEXT for up to 1B users
Huawei is integrating the digital yuan into its HarmonyOS NEXT operating system, enhancing accessibility for nearly 1 billion smartphone users by eliminating the need for a separate app and improving wallet management.
Key points:
Integration of digital yuan into HarmonyOS NEXT.
Increased accessibility for up to 1 billion users.
No need for a separate digital yuan app.
Improved wallet management and interaction with financial apps.
Enhanced security and monitoring for the People’s Bank of China.
Growing adoption of the digital yuan across various sectors.
Huawei will continue the rollout of HarmonyOS NEXT with digital yuan integration, focusing on broadening its application and enhancing usability. The People's Bank of China will utilize improved monitoring features to promote wider adoption.
Coinbase, Visa to Allow Real-Time Crypto Deposits Through Debit Card
Coinbase and Visa have collaborated to introduce a service that allows real-time cryptocurrency transfers via eligible Visa debit cards, now available to users in the U.S. and EU. This development enables seamless crypto transactions for individuals who may not be familiar with the complexities of investing in cryptocurrency.
Key points:
Visa debit card integration with Coinbase accounts.
Real-time crypto transactions now possible for U.S. and EU users.
Simplified crypto trading and investing for non-experts.
Part of broader efforts to bridge traditional finance and crypto technologies.
Supported by regulatory clarity in the E.U., potentially encouraging further market expansions.
Coinbase and Visa will evaluate the service's performance and gather user feedback for improvements. They may consider expanding these services to additional regions, bolstered by emerging regulatory frameworks such as the MiCA in the EU.
BBVA Asset Management launches a tokenized fund through the CNMV sandbox
BBVA Asset Management has initiated a pilot project to integrate blockchain technology into asset management, marking a step in their innovation strategy focused on client services. A tokenized short-term fixed-income investment fund, called BBVA Token Renta Fija Corto Plazo, has been registered through the Spanish National Securities Market Commission's (CNMV) regulatory sandbox. This innovative approach allows asset participation to be recorded on a private blockchain network, leveraging Allfunds Blockchain for trade processing via smart contracts and dedicated nodes. The fund is exclusively available to BBVA AM employees as a means to safely explore blockchain’s operational benefits in asset management without altering the user investment experience.
Key points:
Introduction of blockchain technology in asset management.
Use of CNMV’s regulatory sandbox for controlled testing.
Creation of a tokenized short-term fixed-income fund.
Restriction of the pilot project to internal use by BBVA AM employees.
Collaboration with BBVA’s digital assets and blockchain teams.
Focus on maintaining traditional investment experiences for investors.
BBVA Asset Management will evaluate the outcomes of this pilot project to assess the potential and scalability of blockchain technology in reshaping asset management operations.
Web3 Investments (VCs, Startups...)
Web3 funding hits $5.4B in 2024
Web3 startups have secured over $5.4 billion in venture capital during the first three quarters of 2024, with $1.4 billion raised in Q3 alone. Investments are primarily focused on the convergence of AI and blockchain technologies and decentralized infrastructure. Notable funding rounds include companies like Glow, Nillion Network, Moonwalk, Craftt, Borderless.xyz, Vixichain, Karpatkey, Axal, and Variational. New Web3-focused venture funds are being established to continue driving innovation in this sector.
Key points:
Over $5.4 billion raised in 2024 YTD.
$1.4 billion raised in Q3 2024.
Focus on AI/blockchain intersections and decentralized infrastructure.
Notable funding rounds: Glow, Nillion Network, Moonwalk, Craftt, Borderless.xyz, Vixichain, Karpatkey, Axal, Variational.
Launch of new Web3-focused venture funds.
The continued increase in Web3 funding is expected to spur further innovation and growth within the sector. The emergence of new venture funds will subsequently fuel additional investments into these cutting-edge technologies.
a16z has launched ai16z, a DAO investment fund powered by AI
After significant attention from the tech and finance sectors and support from Marc Andreessen, its market cap peaked at nearly $100 million before settling at around $52 million. The DAO uses AI to manage investments based on members' recommendations, factoring in token holdings and past performance quality.
Key points:
AI-driven investment management
DAO structure enabling collective decision-making
Initial market cap volatility
Marc Andreessen's influential support
Democratization of investment processes
Market volatility challenges and AI reliance
The successful implementation of AI in ai16z's investment model could lead to wider adoption of AI in investment management. However, market volatility remains a significant risk factor that could impact investor confidence and fund stability.
Franklin Templeton Takes Its Tokenized Treasury Fund to Base, Becomes First Asset Manager on the Layer 2
Franklin Templeton has made its OnChain U.S. Government Money Market Fund (FOBXX) available on Coinbase’s Base blockchain, marking it as the first asset manager to do so on this layer-2 platform. The $410 million fund is also available on five other blockchains, with Stellar being its primary network. Base has become a significant part of Coinbase's business by offering faster and cheaper transactions than the Ethereum blockchain.
Key points:
First large asset manager to launch on Base.
$410 million fund available on six blockchains: Base, Arbitrum, Polygon, Avalanche, Aptos, and Stellar.
Base shows significant growth, handling 55% more transactions in the third quarter than the second.
Layer-2 blockchains execute transactions faster and cheaper.
The launch on Base may encourage other financial institutions to leverage similar blockchain technology, indicating a trend towards adopting fast, low-cost on-chain solutions in the finance sector.
VanEck Invests in Web3 Gaming Startup Gunzilla
VanEck, through its private crypto fund, has invested in Gunzilla Games, a Web3 gaming startup known for its game "Off The Grid," where players earn native GUN tokens. This investment marks VanEck's second venture into the Web3 gaming space, highlighting their belief in blockchain as a tool to enhance gaming experiences and monetization.
Key Points:
VanEck's private crypto fund invests in Gunzilla Games, a Web3 gaming startup.
"Off The Grid" is a dystopian cyberpunk shooter game that uses Gunzilla's GUN token.
Players earn and use GUN tokens to acquire in-game items in a Web3 marketplace.
The GUNZ subnet on Avalanche blockchain powers the marketplace operations.
VanEck also invested in Parallel, a Web3 card game utilizing NFTs, earlier in 2024.
VanEck believes blockchain can bring transparency and control to in-game item trading.
VanEck is likely to continue exploring investment opportunities within the Web3 gaming sector, leveraging blockchain technology to enhance transparency and monetization in gaming. Gunzilla Games will further develop its ecosystem and marketplace, attracting more players and investors.
Regulation
Redefining Crypto: Emphasizing Utility and Fairness over Regulation
The article discusses the importance of prioritizing utility and fairness in crypto token creation over mere compliance with the Howey Test, as advocated by Jake Chervinsky and Rebecca Rettig. They argue for developing tokens with inherent utility and fair distribution to foster sustainable cryptocurrency projects, beyond regulatory guidance like that from the SEC.
Key Points:
The Howey Test, rigorously enforced by SEC Chair Gary Gensler, is often seen as detrimental to the crypto industry.
Current token launches focus on hype and high valuations without fundamental utility, leading to market crashes.
Chervinsky and Rettig emphasize prioritizing making tokens genuinely useful, akin to Bitcoin’s decentralized payment and security functions.
Utility can be achieved through tokens that provide access, coordinate decision-making, or incentivize contributions.
Fairness involves transparent and equitable token distribution, avoiding "decentralization theater" where insiders retain control.
Advocates for the crypto industry establishing a standard for project and token disclosures to improve transparency and trust.
Encourages engaging with legal advisors early in project development to navigate regulatory challenges effectively.
Crypto founders should leverage legal expertise early and focus on creating genuinely useful and fairly distributed tokens to build sustainable and regulatory-friendly projects. Transparent operations and prioritizing community over insiders can assure long-term success and compliance.
Bibliography
General Web3 trends
Severe DANA Weather Phenomenon Hits Spain, Causing Widespread Disruptions
USA Election Day Impact on the Crypto Market
BTC, ETH and crypto
Web3 companies
Investments Web3 (VCs, startups...)
Regulation
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