Lido Solo Stakers: 1.5 ETH to Operate Nodes

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Good Morning.

The market is inching up with traders positioning themselves for a new all-time high. The move has been delayed a few times thanks to numerous negative news such as Israel’s retaliation and the US prosecutors’ probe into Tether (again). Let’s see if we manage to break ATH this week.

In Today's Email:

• What Matters: Tether Probe + Bitfinex-Lazard Tokenized Funds 🔎 

• Product: Lido’s Community Staking Module 👥

• Charts: Farcaster’s Revenue Drops 📉 , BTC Call Options Surge 📈 

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WHAT MATTERS

Tether Probe & Lazard-Bitfinex Tokenization Plans

State of play: According to the Wall Street Journal’s report, US authorities are investigating Tether for potential anti-money laundering laws and sanctions violations.

• The Manhattan US Attorney’s Office is examining whether Tether has been used by third parties for illicit activities, including terrorism and hacking.

• The US Treasury Department is considering sanctions against Tether due to its alleged use by US-sanctioned entities, such as groups in Russia and Hamas.

• Tether's CEO and a spokesperson have publicly denied these claims, asserting that there is no investigation and describing the WSJ’s report as speculative.

Meanwhile, Lazard, a 175-year-old asset management firm, announced plans to create tokenized investment funds in collaboration with Bitfinex Securities and SkyBridge Invest. Bitfinex is owned by iFinex, the same company that also owned Tether.

• This collaboration will enable Lazard to offer tokenized funds, providing retail investors with exposure to various Lazard-managed funds

• These funds are to be issued under Kazakhstan’s financial services regulations.

• The funds will leverage USDT for purchases and aim to expand access to Lazard's managed funds.

What’s next: This is a nothingburger unless the allegations are substantiated as this is not the first time that Tether has gotten under such scrutiny.

For builders and investors: Study the power and sustainability of offshore dollar.

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

Lido’s Community Staking Module

Lido DAO has approved the launch of its "community staking module" (CSM), an initiative aimed at making Ethereum staking more accessible by lowering the entry requirements.

• This new module allows solo stakers to operate nodes with just 1.5 ETH, significantly less than the usual 32 ETH requirement.

• Currently, the new module is in an early adoption phase.

• The module includes Ethereum and Gnosis solo stakers and will eventually become Lido’s first permissionless staking protocol.

• The CSM is part of Lido’s strategy to promote decentralization in response to criticisms about its market dominance.

• Over 370 node operators participated in testing, and the proposal saw overwhelming support in the DAO vote.

Other cool products:

• AutoLayer, a restaking marketplace.

• Cyber Staking, a staking platform for CYBER.

• P-Link, a crypto payment request link on Solana.

• Carmine, an options trading protocol on Starknet.

• UXUY, a decentralized multi-chain wallet and dApp based on Telegram.

CHARTS OF THE WEEK

Farcaster’s Monthly Revenue Drops 96%

State of play: Farcaster’s monthly revenue has plummeted by 96% from its February peak, dropping from ~$415,000 to ~$15,000 in October, according to @deodad’s Dune dashboard.

• Farcaster initially saw success with unique features like direct rewards and community engagement, as well as support from apps like Warpcast.

• In May, Farcaster raised $150M in a Series A round, reaching a $1B valuation.

• User interest has waned due to slower content delivery and limited new projects, prompting concerns about scalability beyond the crypto community.

Our take: It remains to be seen if Farcaster can hit escape velocity and become popular outside of the CT sphere.

BTC Call Options Surge Ahead of US Election

State of play: Demand for Bitcoin call options has surged ahead of the Nov. 8 expiry, the first after the US presidential election. According to Deribit CEO Luuk Strijers, there are twice as many call options compared to put options, indicating bullish sentiment.

• Open interest for these options exceeds $2B, with popular strike prices at $70,000, $75,000, and $80,000.

• The implied volatility suggests potential price swings of about 3.78% post-election, as traders anticipate a brief period of heightened volatility.

• Analysts see Bitcoin as an inflation hedge and a potential proxy for election outcomes, with forecasts suggesting it could approach its all-time high of over $73,000 on election day.

Our take: No matter who wins, the market is preparing for more inflation.

QUICK BITES

• Hong Kong eyes tax breaks for crypto.

• US Prosecutors are investigating Tether.

• Netherlands starts consulting on crypto tax bill.

• Japan’s Metaplanet now holds over 1,000 Bitcoin.

• Lazard plans to create tokenized funds with Bitfinex securities.

• Base stablecoin volume outranks all other chains for the first time.

• FTX agrees to drop the lawsuit against Bybit in a $228M settlement.

• Lido DAO votes to activate the anticipated community staking module.

• Marc Andreessen shoutouts help ai16z memecoin hit ~$100M in FDV.

• Hong Kong Stock Exchange introduces price indices for BTC and ETH.

NOTEWORTHY READS & MEME

• @howdymerry’s read on tech as literal magic to most folks.

• Andrew Kang’s read on why having no investor lock ups = better.

• Ryan Berckmans’ read on Ethereum as the global backbone of financial systems.

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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.