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Good Morning.

It truly is never a dull day in crypto. We’re seeing a whipsaw of the TRUMP’s token price action because he didn’t mention crypto once during inauguration, but then announced a $500B America-first AI initiative. Yachtzee!

Our new podcast episode with James from Mode, talking about DeFAI is up!

In Today's Email:

• What Matters: Circle Acquires Hashnote 🤝 

• Case Study: ZachXBT Cashes Out ~$4M 🔎 

• Governance & Features: EF Moves 50,000 ETH to Support DeFi 🔀

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

TOGETHER WITH

E Money Network: $EMYC TGE on Jan 23 2025

E Money Network, the first MiCA-compliant BankFi blockchain, is launching its multi-utility coin $EMYC on 23rd January 2025. $EMYC powers the network's operations and ecosystem, which includes:

• E Money Wallet: A multichain wallet supporting 60+ chains and fiat on/off ramps with IBAN integration.

• E Money Card: A card enabling users to spend crypto up to $500,000 and earn up to 2% cashback.

$EMYC is the power-packed utility coin that will power all transactions and operations in the E Money Network ecosystem. EMYC is used as:

• Gas fees for transactions

• Rewards for validators who secure the network

• Payments for deploying dApps

• Access to global IBANs and E Money card by staking $EMYC 

• Staking rewards to enhance security and liquidity of the ecosystem 

• Collateral for loans within the ecosystem

IDO Details:

• Launchpad: Eesse

• Date: 22nd January 2025, 11 AM UTC

TGE and Exchange Listings:

• Exchanges: MEXC, Gate, KuCoin.

• Date: 23rd January 2025, 2 PM UTC

Strategic partners include Solana, Plume, ZetaChain, Lumia and +30 more projects, positioning $EMYC for rapid growth in the blockchain finance space.

For all TGE-related updates follow E Money Network on X.

About E Money Network:

E Money Network is the world's first BankFi Network that supports on-chain KYC and AML processes. It allows users to tokenize real-world assets (RWAs) on a compliant infrastructure with bank-grade security. 

WHAT MATTERS

Circle Acquires Hashnote to Enter Tokenization

State of play: Circle has acquired Hashnote, the issuer of the $1.3B USYC tokenized money market fund, as part of its push into real-world asset (RWA) tokenization.

• The deal was announced at the WEF in Davos, though financial details were not disclosed.

• The acquisition will enable USYC integration with USDC, allowing seamless convertibility between cash and yield-bearing collateral on blockchains.

• Circle CEO emphasized that this move aligns traditional financial structures with blockchain efficiency, catering to increasing institutional adoption.

• Circle also announced a partnership with Cumberland DRW, a crypto market maker, to facilitate liquidity and settlements for USDC and USYC.

• Additionally, Circle will bring USDC to the Canton Network, a blockchain used by financial institutions for RWA transactions.

Why it matters: With Tether and BlackRock already in the tokenization race, Circle’s move shows the rapid growth and competition in the RWA market, pushing blockchain deeper into mainstream finance.

Our take: There’s a further consolidation of the duopoly between USDC and USDT. Ideally, we’re seeing the new entrances take on more market share so we’re seeing a healthier competitive landscape in stablecoin land.

For builders and investors: Stablecoin is still a hot space, especially after Trump’s victory — don’t think that you’re too late to build in this sector, especially if you have a unique angle or unfair business relationship advantage.

CASE STUDY

ZachXBT Cashes Out Nearly $4M

Blockchain investigator ZachXBT has liquidated ~16,000 SOL (~$3.9M) from a memecoin airdrop received on the Solana blockchain. An address linked to ZachXBT initially received 500M tokens (50% of the supply) from an unknown deployer.

• He provided liquidity to the ZACHXBT/SOL pair before withdrawing 91M tokens and 16,000 SOL, causing the token’s market cap to drop from $97M to $19M.

• ZachXBT burned the remaining tokens and transferred the SOL to market maker Wintermute via an OTC trade.

• He confirmed the onchain movements but stated he did not promote the token and does not know the deployer.

• Reflecting on the event, he expressed regret over not prioritizing making money, stating that he “wasted time” on work that never rewarded him.

• Community reactions have been mixed, with some believing he deserves more for his contributions to the space.

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 👇

INSIGHTS

Trump Appoints Crypto-Friendly Official to Lead SEC and CFTC

President Trump has appointed Mark Uyeda as acting chair of the SEC following Gary Gensler’s departure, signaling a potential shift in crypto regulation. Trump also tapped Caroline Pham as acting chair of the CFTC, replacing Rostin Behnam.

• Uyeda has called for clearer rules on crypto assets and is expected to review pending enforcement cases alongside Hester Peirce.

• The SEC is now operating with a Republican majority, which could lead to more industry-friendly policies.

• Pham has been involved in digital asset initiatives, including creating a Digital Asset Markets subcommittee and advocating for a US regulatory sandbox to foster innovation in crypto markets.

• While neither agency has a permanent chair yet, Trump's appointments suggest a regulatory shift favoring crypto adoption.

FEATURES & GOVERNANCE UPDATE

EF Moves 50,000 ETH to Support DeFi

The Ethereum Foundation (EF) announced plans to transfer 50,000 ETH (~$167M) to a multi-sig wallet to participate in the DeFi ecosystem, following criticism over its treasury management and lack of onchain engagement.

• The move aligns with recent statements from Vitalik Buterin and Joe Lubin, who hinted at major leadership changes within the organization.

• EF has faced ongoing transparency concerns. Critics argue that it should stake or deploy its $1B in ETH holdings instead of selling them for stablecoins to pay salaries.

• The decision comes amid ETH’s market underperformance and rising competition from Solana.

• The underperformance prompted calls for executive changes, including replacing Aya Miyaguchi with former researcher Danny Ryan.

• This shift marks EF’s first direct involvement in DeFi, signaling a more active role in Ethereum’s ecosystem.

For a deeper dive into the recent events surrounding $ETH and the Ethereum Foundation, check out Marco’s thread.

Other notable feature updates:

• LayerZero is now live on Superposition.

• Superposition launches its Mainnet Alpha.

• Superform Labs launches SuperUSDC on Base.

• Ethena Labs announces a partnership with Spark.

• Ledger integrates Uniswap into Ledger Live Desktop.

• Coinbase launches Bitcoin-backed loans for US users.

QUICK BITES

• Uniswap plans v4 deployment this week.

• Circle acquires tokenization startup Hashnote.

• CLS Global admits to wash trading on Uniswap.

• Deribit saw trading volumes hit above $1.1T in 2024.

• Trump signs executive order to pardon Ross Ulbricht.

• MicroStrategy acquires another 11,000 Bitcoin for $1.1B.

• Hester Peirce tapped to lead SEC’s new crypto task force.

• Trump names Mark Uyeda as Interim SEC & CFTC Leaders.

• Ethereum Foundation moved 50,000 ETH to support DeFi.

• Coinbase promises infrastructure improvements for Solana.

• Dogecoin appears on new Department of Govt. Efficiency website.

• CryptoCom launches institutional-grade exchange services in the US.

NOTEWORTHY READS & MEME

• Kyla Scanlon’s read on Trumpcoin and TikTok.

• Coinmetrics’ read on Bitcoin ETFs, one layer later.

• Meltem Demirors’ read on energy, compute, and crypto.

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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.