Crypto: It's all politics until November

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Good Morning.

Every few quarters there are moments when you can enter into a position, do nothing for months, and outperform. We’re getting closer to that moment.

On a side note, there’s an ongoing potential governance attack on Compound. Make sure to pay attention if you hold funds there.

In Today's Email:

• What Matters: Politics and crypto

• Product: Ledger Flex 💳️ 

• Charts: State of stablecoin, TRON USDT tx 📈 

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WHAT MATTERS

Republicans & Democrats Woo Crypto Voters as Election Nears

State of play: US presidential candidates and politicians from Republicans and Democrats are trying to woo the crypto industry as the election nears.

Donald Trump pledged at the Bitcoin 2024 conference in Nashville to dismiss SEC chair Gary Gensler, creating a "strategic Bitcoin reserve," and end "Operation Chokepoint 2.0" along with other anti-crypto policies.

• Trump promised to keep 100% of the Bitcoin the US government currently holds (~213K BTC) or that will be acquired in the future.

• Trump reiterated his past promises to commute Silk Road founder Ross Ulbricht's sentence and halt US development of a CBDC.

• He also expressed support for developing stablecoins and boosting the bitcoin mining industry in the US

• Sen. Cynthia Lummis, a Trump supporter, said at the conference that she would introduce a bill to direct the US Treasury to purchase 1 million BTCs as part of the “strategic Bitcoin reserve.”

• The proposed legislation would require the US Treasury to self-custody bitcoins in various locations, holding them for at least 20 years unless sold to reduce the debt.

Meanwhile, Kamala Harris's team are reaching out to leading crypto companies to reset relations between the Democratic Party and the sector.

• Kamala Harris's team has recently reached out to individuals connected with top crypto firms, including Coinbase, Circle, and Ripple Labs, for meetings.

• Coinbase, a16z, and Ripple are the backers of Fairshake, the largest Super PAC, which raised more than $200M.

• Harris campaign advisors say engaging with the crypto industry aims to develop a regulatory framework for asset growth, not to gain electoral contributions.

• Democratic Rep. Wiley Nickel announced at the Bitcoin 2024 conference that he and 28 other Democrats sent a letter urging the DNC to support pro-digital asset policies in the party's platform.

• Rep. Wiley Nickel said Donald Trump did “nothing on this (crypto) issue” during his prior term and is “totally full of s—t”.

What’s next: Now that crypto has emerged as a significant force in the US political landscape, we might see clearer regulations that provide certainty to the industry.

For builders and investors: Trump might have done nothing to address crypto issues during his term, but it is hard for the crypto community to forget how the crypto industry suffered greatly during Biden and Harris's terms.

Nevertheless, here’s a quote to keep us on the ground 👇️ 

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

Ledger’s New Wallet: Ledger Flex

Ledger has released a new mid-range device, the Ledger Flex, priced at $249. This compact hardware wallet features an E-Ink display for easy navigation and transaction approval with a simple tap.

• Like the pricier Stax wallet released in May, Ledger Flex incorporates touchscreen technology to "redefine the self-custody experience."

• Ledger has unveiled its new Security Key app, providing passkey capabilities as an alternative to traditional passwords.

• The app replaces passwords with a cryptographic passkey login system, storing a private key in the secure element for service access.

Other cool products:

• EFIHUB, a P2E and multichain platform.

• EveryFinance, a dETFs with different risks.

• Alliance Games, a Web3 gaming infrastructure platform.

• CrossCurve, a one-click cross-chain swap of any assets.

• MintStakeShare, an innovative minting and staking dapp.

CHARTS OF THE WEEK

Tron & Big USDT Transactions

Credits to Steakhouse Financial for the original chart.

State of play: Tron is leading far ahead as the most used chain for USDT transactions worth $100 to $1K, $1K to $10K and $10K to $100K.

$100 to $1K transactions (15 July 2024)

• Tron recorded 4.8M txs, while BNB, Solana, and Ethereum only recorded 630K, 231K, and 268K, respectively.

• Tron's YoY $100 to $1K transactions increased by approximately 33.33%, while BNB was down by 5%, and Ethereum grew by 34%.

• Solana experienced the most significant rise, with transactions surging by about 391.49%.

$1K to $10K transactions (15 July 2024)

• Tron recorded 3.4M txs, while BNB, Solana, and Ethereum only recorded 100K, 23K, and 121K, respectively.

• Tron's YoY $1K to $10K transactions increased by approximately 30.77%, while BNB grew by 40.85%, and Ethereum grew by 47.56%.

• Solana experienced the most significant rise, with transactions surging by about 1050%.

$10K to $100K transactions (15 July 2024)

• Tron recorded 911K txs, while BNB, Solana, and Ethereum only recorded 9.8K, 2.2K, and 36K, respectively.

• Tron's YoY $10K to $100K transactions increased by approximately 28.13%, while BNB grew by 44.12%, Ethereum grew by 56.52%.

• Solana experienced the most significant rise, with transactions surging by about 1064.02%.

Stablecoin Holding Address Passed 100M

Credits to OurNetwork for the original report

State of play: The number of addresses holding stablecoins has passed the 100M mark, surging from 93.5M in Q1’24 to 107M in Q2’24, marking a 13% increase.

• The total market cap of stablecoins also has grown to $166.3B from $162B, an increase of 2.5%.

• Two of the top three months for active addresses occurred last quarter, with May reaching over 21M addresses.

• While the overall market cap grew by only 2.5%, USDe increased by over $1B to $3.4B, USD0 rose to $170M from zero, PYUSD tripled to ~$600M, and GHO doubled to ~$100M.

Our take: MiCA’s stablecoins restriction effect has yet to be seen; there are two possibilities: the European stablecoin market is not that significant, or there’s a delay until there’s enforcement.

QUICK BITES

• SEC approves Grayscale BTC mini trust.

• Cantor Fitzgerald announces $2B BTC financing business.

• Mempool launches service to expedite unconfirmed BTC tx.

• Compound Finance passed a controversial proposal by whale.

• Snowden tells Bitcoin fans to “cast your vote but don’t join a cult.”

• Sen. Lummis announced a bill for the US Treasury to buy 1M BTC.

• RFK Jr. promises to issue a BTC-related executive order if elected.

NOTEWORTHY READS & MEME

• Ivangbi’s read on VC rekt trends.

• Zaheer’s read on Ethereum’s inclusivity.

• Nothing Research’s read on FHE vs ZK vs MPC.

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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.