$AICC Aiccelerate DAO Controversy

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Good Morning.

The market is severely down with BTC touching $90,000 as of the time of writing. Will the US open save us all? You let me know. Your top AI coins are on average down by about 50-60% from the past 2 weeks, showing either two things: (1) fatigue on the consensus trade, (2) a potential new beginning of another bullish leg in the coming weeks.

In Today's Email:

• What Matters: Aiccelerate DAO Controversy 🔎 

• Product: Babylon’s & Flamma’s BTC Bridge 🌉 

• Charts: USD0++ Drops, Messari Lays Off 15% 📉 

You read and share. We listen and improve. Send us feedback at [email protected].

WHAT MATTERS

Aiccelerate DAO Implements Vesting Structure

State of play: Aiccelerate DAO (AICC), an investment DAO focused on supporting crypto-AI projects co-founded by Markus Jun, Ejaaz Ahamadeen, and Ropirito, has faced significant criticism following its recent launch.

• The project, currently valued at $150M, distributed 100% of its tokens to 245 advisors and insiders during its presale.

• The project raised 943 SOL (~$175,000) on the Solana-based launch platform Daos.fun.

• $75,000 came from "VIPs," including co-founders, advisors, and notable figures such as the founder of Eliza Labs and VCs from Coinbase Ventures.

• The remaining $100,000 was contributed by smaller insiders, each capped at 2-3 SOL.

• X user Michy shared evidence claiming the project only distributed tokens to its “cabal,” sarcastically dubbing it “Friends.fun.”

Daos.fun’s invite system caused confusion, as some participants created temporary accounts, raising concerns about fairness, controversy erupted when some insiders quickly sold their token allocations after the project’s value surged.

• Among the criticized entities was Bankless Ventures, which sold 10% of its allocation but later repurchased the tokens.

• Bankless co-founder David Hoffman acknowledged the mistake and committed to implementing a self-imposed vesting schedule.

• Another co-founder, Ejaaz Ahamadeen, expressed disdain for such actions, emphasizing that the early sales were not anticipated.

What’s next: In response, the DAO announced plans to implement a vesting structure for individual allocations and began discussions with advisors about similar measures.

For builders and investors: Launching a token is an art and you better study how retail react to varying sentiments and tokenomics before deciding on one.

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our list of 500 crypto VC individuals 👇

PRODUCT OF THE WEEK

Babylon’s & Flamma’s Trust-Minimized Bitcoin Bridge

Babylon Labs is partnering with Fiamma to build a trust-minimized bridge connecting Bitcoin to the Cosmos network.

• This initiative leverages BitVM2, a computing paradigm enabling Ethereum-style smart contracts on Bitcoin, paving the way for ZK technology integration.

• The bridge aims to enhance Bitcoin's interoperability, allowing BTC to interact with Cosmos while addressing Bitcoin’s limitations in speed and scalability.

• ZK computations ensure accurate data verification across blockchains without revealing sensitive information, forming a secure foundation for asset bridging.

• Babylon’s efforts are part of a broader movement to unlock Bitcoin’s value for use in other ecosystems.

• Using BitVM2, the bridge enables secure BTC transactions across networks, enhancing Bitcoin's role in DeFi.

Other cool products:

• Blum Memepad, a TON memecoin launchpad.

• XPIN Network, an AI-powered consumer DePIN platform.

• Hyperfluid, an hybrid orderbook AMM DEX built on Aptos.

• Splash, a DeFi infrastructure for MM and trading of Cardano Native Assets.

CHARTS OF THE WEEK

Usual Money’s USD0++ Plummets 8.5%

State of play: Usual Money’s staked token, USD0++, dropped 8.5% from $1 to $0.915 on DEXs after a controversial protocol update. The update introduced a dual-exit mechanism allowing users to redeem USD0++ in two ways:

• Redeeming USD0++ at a 1:1 ratio with USD0 by forfeiting some accrued yields

• Or at a newly established floor price of $0.87, which will gradually rise to $1 over the next four years.

• Previously, USD0++ was redeemable 1:1 without conditions.

• The change led to significant sell-offs, severely imbalancing the USD0/USD0++ Curve pool.

• Critics accused Usual Money of abruptly altering terms without warning, effectively reducing the token's value and trapping investors.

• Supporters argued the update aligns with USD0++'s nature as a four-year bond and benefits the protocol long-term.

Our take: You can break trust with one mistake in communication. Always over-communicate with your community members.

Messari Lays Off 15% of Staff

State of play: Messari has laid off approximately 15% of its full-time staff, CEO Eric Turner confirmed. The restructuring aims to streamline operations and focus on growth across core product lines.

• In addition to full-time employees, Messari chose not to renew several contractor agreements.

• The layoffs come amid ongoing challenges in the crypto sector, with companies like Kraken, Sky Mavis, and Paxos also downsizing.

• CoinDesk also lays off 45% of its editorial staff as it eyes deal to sell the company.

Our Take: It’s a tough time out there for crypto data businesses, as they’re getting fragmented and overlapping with media/personal brand entities.

QUICK BITES

• Singapore bans Polymarket.

• Messari lays off ~15% of staff.

• Worldcoin passes 10M human verifications.

• Bybit to temporarily restrict services in India.

• FDIC Vice Chair urges a more open approach to crypto.

• Mango Markets plans to wind down in wake of SEC settlement.

• Animecoin unveils tokenomics with 50%+ community allocation.

• Aiccelerate DAO will add vesting structure in response to criticism.

NOTEWORTHY READS & MEME

• Tulip King’s read on local tops.

• Jason Choi’s read on Tangent 2024 recap.

• Lauris’ read on the common origins of the best crypto founders.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.