Sui $400M Selling Allegations

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Good Morning.

BTC got rejected hard yesterday but it looks like we’re reclaiming $67,000, so there’s still a chance that we’ll see a continuation of this rally. CT looks quite mixed, with notable investors highlighting geopolitical risks and significantly higher OI as a sign that we might have a flush before continuing this rally.

Check out our latest pod episode with Blue from Trader Joe! (now called LFJ)

In Today's Email:

• What Matters: Sui $400M Insider Selling? 🔍️ 

• Case Study: Hyperliquid Airdrop 🪂 

• Governance & Features: deBridge’s $DBR Launch 🚀 

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WHAT MATTERS

Sui Foundation $400M Selling Allegations

State of play: Pseudonymous analyst Lightcrypto alleged on X that "insiders" sold $400M worth of $SUI during the token’s recent surge, linking the sales to wallets from Sui's initial coin offering, though no specific addresses were disclosed.

• Lightcrypto questioned whether Sui's price spike reflects the blockchain's true potential.

• The Sui Foundation has denied allegations of insiders selling $400M worth of Sui tokens during the token's recent price surge.

• The foundation clarified that neither its employees, Mysten Labs, nor Mysten Labs' investors were involved.

• The foundation speculated the sale came from an infrastructure partner with tokens under a lock-up schedule.

• Sui's price has risen 100% over the past month.

What’s next: Further clarification may emerge regarding the wallet in question, especially if additional evidence or accusations surface. This may also prompt more scrutiny of token sales and governance within the Sui ecosystem.

Why it matters: Insider selling concerns can lead to doubts about the long-term stability and integrity of a project, which could impact Sui’s reputation and market performance.

Our take: This sort of deals are normal (even in equities) and will continue to happen in the future.

For builders and investors: There’s nothing wrong with selling treasuries to fund runways, but as an industry, we need to collectively demand a higher level of transparency around this matter.

CASE STUDY

Hyperliquid to Airdrop $HYPE

The newly formed Hyper Foundation announced it will issue HYPE, a native token, in anticipation of HyperEVM’s mainnet launch.

• The exact date for the airdrop has not been revealed.

• Eligible users will be able to receive HYPE tokens and an optional Hypurr NFT as part of the "Genesis Event."

• The foundation emphasized that the HYPE token is critical to the HyperBFT proof-of-stake consensus, the HyperEVM, and future developments.

• Hyperliquid, known for enabling users to trade perpetual derivatives with leverage, has recently surpassed $1B in average daily transaction volume.

• This surge is attributed to its points reward campaign, which will determine how HYPE tokens are distributed.

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INSIGHTS

Vitalik Suggests Improvements for Ethereum

Ethereum co-founder Vitalik Buterin highlighted potential areas of improvement for the Ethereum protocol, despite its successful transition to proof-of-stake.

• He proposed reducing block finalization time from 15 minutes to 12 seconds and lowering the 32-ether staking requirement to 1 ether.

• However, these changes would require balancing against Ethereum’s goal of minimizing overhead.

• Buterin also suggested using “single secret leader elections” to enhance security by hiding the next block proposer’s identity until the block is produced.

• He advocated for reducing transaction confirmation times to four seconds to improve user experience and efficiency for DeFi protocols and rollups.

• Additionally, he stressed the importance of preparing for future quantum resistance and dealing with potential 51% attacks.

FEATURES & GOVERNANCE UPDATE

deBridge’s $DBR Token Launch

deBridge’s DBR token successfully launched on Jupiter LFG, establishing deep protocol-owned on-chain liquidity.

• The LFG Vault received 200M DBR (2% of total supply) with a $5M USDC cap at a $250M FDV, pricing DBR at $0.025 per token.

• A personal cap of $25K per eligible address was implemented. If bids exceeded the cap, excess contributions were proportionally returned.

• Eligibility criteria included deBridge users with interactions on 10+ days and top 10% JUP stakers.

• Additionally, $3M USDC and 100M DBR were supplied to a dynamic AMM pool to help bootstrap liquidity.

• Participants could claim 50% of their DBR at TGE, with the remaining 50% available after six months.

• The Vault was closed today at 7:59 UTC.

• DBR tokens will begin circulating on October 17, 2024.

Other notable feature updates:

• ArtRun is live now.

• Musubi is live now.

• Layer3 has launched on Solana.

• Uniswap has launched Unichain.

• LayerZero has launched on peaq.

• Midas has launched its core product suite.

• Aave DAO has launched the v3.2 upgrade.

QUICK BITES

• Praxis secured $525M to build a crypto-friendly city.

• Canary Capital seeks approval for a spot Litecoin ETF.

• Tesla moves $500M in BTC to multiple new addresses.

• Hong Kong busts $45M crypto romance fraud scheme.

• Grayscale files to convert multi-token funds into an ETF.

• MiCA-compliant stablecoins take market share of EU stables.

• JPMorgan is bullish on crypto into 2025, considering a Trump win.

• FalconX unveils a service that converts crypto to dollars for miners.

• World Liberty Financial generates $9M on the first day of the token sale.

• Tether CEO says the company exploring commodities trading & TradFi opportunities.

• Securitize & Zero Hash enable USDC-to-USD conversion for BlackRock’s BUIDL fund.

NOTEWORTHY READS & MEME

• 0xKyle’s read on liquid tokens and memes.

• Decentralised’s read on whether crypto matters.

• Arthur Hayes’ read on the Middle East geopolitical risk.

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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.