Trump [still] Wants BTC Reserve & BlackRock's Recommendation

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Good Morning.

Altcoins are struggling to conclusively break its all-time high. My prediction is that we’ll see quite a significant flush for the next few weeks, before rallying conclusively to new altcoins market cap ATH by the end of Q1 2025. Don’t get chopped!

The new podcast episode is up!

In Today's Email:

• What Matters: Trump’s Strategic BTC Reserve 🪙 

• Founders Highlight: Carlos & André of UpLink 🔵 

• Deal Flow: Avalanche’s $250M Token Sale 💰️ 

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

TOGETHER WITH

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DeFiTuna is here to push boundaries and bring competition to the lending space. Check out V1, explore DeFiTuna’s website, and join the community as they continue building together with the community.

WHAT MATTERS

Trump’s Strategic Crypto Reserve

State of play: President-elect Donald Trump proposed creating a strategic crypto reserve during his campaign, akin to the US Strategic Petroleum Reserve. The Block reports that Trump remains keen on the strategic crypto reserve plan.

• Since his victory, Bitcoin has surged, rising from $68K to over $100K.

• Trump expressed hopes that BTC could reach $150K during his presidency.

• Trump has explicitly stated his desire to prevent other nations, particularly China, from dominating the crypto space.

The momentum Trump has catalyzed aligns with growing institutional interest in Bitcoin. BlackRock has underscored Bitcoin’s legitimacy by recommending a 1–2% allocation in multi-asset portfolios.

• BlackRock’s IBIT spot Bitcoin ETF recently surpassed its gold ETF in assets under management.

• US spot Bitcoin ETFs have collectively absorbed over 500K BTC or more than 2.5% of Bitcoin’s circulating supply.

• Ray Dalio, founder of Bridgewater Associates, has also added his voice to the chorus of support, calling Bitcoin "hard money" alongside gold.

Why it Matters: All three narratives converge on the idea that Bitcoin is no longer just a speculative asset, it is a crucial player in shaping economic and geopolitical strategies.

What’s next: The idea of Bitcoin becoming a "strategic reserve asset" could influence central banks and governments to diversify reserves into digital assets, further driving demand.

For builders and investors: Builders will have opportunities to develop technologies that align with Bitcoin's growing role, such as scaling solutions, secure custody systems, and enterprise-grade blockchain applications.

BUILDER-INVESTOR HIGHLIGHT

Carlos Lei Santos & André Francisco of UpLink

Intro: Carlos Lei Santos & André Francisco are the co-founders of UpLink, a decentralized internet connectivity platform that allows users to share their existing internet and incentivizes new internet deployment in under-connected areas.

Previous background: Carlos is a recognized innovator and EUtop50 Top Entrepreneur, celebrated for contributions to deep tech and sustainability with seven years as an IT Manager for firms like IBM and Banco Santander.

André is a seasoned developer and researcher with nearly 20 years of experience. He contributed to key research projects like LIFEisGAME and VERE and led the OpenJelly project for 3D rendering and collision detection.

The big idea: Carlos and Andre through Uplink seek to decentralize internet connectivity by incentivizing users to share networks and build infrastructure in underserved areas

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

a16z’s Big Idea in Tech 2025 - Crypto

State of play: The crypto space is set for big changes in 2025, with new ideas pushing the boundaries of decentralization and blockchain technology. From AI managing wallets to tokenizing unique assets.

Here’s what to watch according to a16z’s Big Idea in Tech 2025:

• AI-Driven Crypto Use Case: AI agents can own wallets, manage assets, and participate in decentralized networks, with the potential to operate autonomous blockchains.

• Decentralized Autonomous Chatbots (DACs): Autonomous chatbots generate income, manage crypto assets, and function without human control, becoming standalone economic entities.

• Proof of Personhood: Privacy-preserving systems ensure human identity verification in decentralized networks, countering AI-driven identity scams.

• Stablecoin Adoption: Small businesses and enterprises are expected to adopt stablecoins for cost-effective, global payments, bypassing traditional systems.

• Government Bonds on Blockchain: On-chain bonds offer transparent, efficient, and decentralized solutions, with new demand in DeFi collateral markets.

• The DUNA Framework: A legal structure legitimizing DAOs in the U.S., empowering decentralized governance while addressing compliance and liability.

• Liquid Democracy: Blockchain enables direct or delegated voting, transforming governance systems with secure and scalable solutions.

• Infrastructure Reuse: Builders will adopt off-the-shelf blockchain tools to accelerate development, enabling more focus on product innovation.

• Improved User Experience: Simplified interfaces and accessible designs will lower barriers, driving mainstream crypto adoption.

• Tokenization of Unconventional Assets: New markets for tokenized assets like biometric data and niche datasets will emerge, unlocking decentralized revenue streams.

• Crypto App Stores: Decentralized app marketplaces will offer alternative distribution channels, reducing reliance on centralized platforms.

• Activating Passive Crypto Owners: Efforts will convert passive holders into active users through improved infrastructure and innovative applications.

DEAL FLOWS

Avalanche’s $250M Locked Token Sale

Deal flows soared this week - we saw $370M+ in deals 💼 

Avalanche just raised $250M in a locked token sale led by Galaxy Digital, Dragonfly, and ParaFi Capital, with additional support from SkyBridge, Morgan Creek Digital, and others.

• The announcement came as AVAX prepares for the Avalanche9000 upgrade.

• The upgrade aimed at reducing blockchain deployment costs by 99.9% and transaction fees by 25x.

• Set to launch on mainnet on December 16, the upgrade enhances scalability and development tools.

• Over 500 Layer 1 chains are in development on Avalanche, spanning gaming, payments, and institutional programs.

• ParaFi Capital also tokenized a portion of its venture fund on the platform, highlighting Avalanche’s role in on-chain institutional finance.

In other news, Casey Karuso, formerly a partner at Paradigm, has announced her new fund called Topology with $75M secure for fund 1.

Deal flows in the past week:

• Mandala Chain, $1M Pre-Seed Round

• Uranium Digital, $1.7M Pre-Seed Round

• Spicenet, $3.4M Seed Round

• Neptune Protocol, $3.9M Seed Round

• SmarDex, $4.5M Seed Round

• Exabits, $15M Seed Round

• Lava, $10M Series A

• Relai, $12M Series A

• Hyperbolic, $12M Series A

• Klickl, $25M Series A

• Haven1, $4.6M Private Round

• Superform Labs, $3M Strategic Round

• AgriDex, $4M Strategic Round

• Terrace, $2.5M Public Token Sale

• Avalanche, $250M Private Token Sale

• Commonware, $9M Unknown Round

• Waterfall Protocol, $11.6M Unknown Round

QUICK BITES

• Gate dismisses rumors of security breaches.

• Ukraine seeks to legalize crypto by early 2025.

• Grayscale launches Lido and Optimism Trusts.

• Michael Sonnenshein joins Securitize as COO.

• Trump remains keen on strategic crypto reserve.

• Kraken exchange operator fined $5M in Australia.

• BlackRock recommends BTC allocation of up to 2%.

• Solana surpasses Ethereum in terms of new developers.

• Polygon weighs a proposal to deploy a $1B stablecoin on its bridge.

• Chainalys expands Solana coverage to include PumpFun memecoins.

• US spot Bitcoin ETFs surpass 500,000 BTC in cumulative net inflows.

NOTEWORTHY READS

• a16z’s read on how stablecoins will eat payments.

• Decentralised’s read on using chains, taming minds.

• Electric Capital’s read on the 6th annual developer report.

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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.