Leon Mirochnik, CFA

When the SEC goes gunning, who is paying for the bullets? It's reported in CryptonewsZ, that market makers Gotbit, ZMQuant, and CLS GLOBAL are under heavy fire. Anna Baydakova who has written for The Block and CoinDesk recently produced an article featuring a 20 year old college student who 'For 15k, He'll fake your market volume. You'll get on CoinMarketCap' Anton Golub covered the story already here in LinkedIn. Irena Heaver produced a similar article with UAE focus, though not mentioning any market makers specifically. Yes, the SEC taking action is right within the scope of its responsibility. But is it the best solution? 'When the SEC goes gunning, who is paying for the bullets?' The taxpayers in the largest #crypto , #blockchain and #web3 economy in the world - The US. But US also has a massive cryptosceptic and newtech (particularly new virtual tech) resistant populous that completely dwarfs those in our 'space'. Costing them tax dollars to fund government reaction on 'stuff' they already hate with a vengeance, isn't a way to win new friends. Our sector needs a path to 'normalization'. ETFs are only somehow a thin ray of light in an otherwise dark room. I see these activities Gotbit, ZMQuant, and CLS GLOBAL stand accused of, a bit differently. I see them as a necessary infection, virus or disease that our world needs to become immune from. Tony Drummond, though delivering on #token launches, is an uncommon advocate for project owners asking themselves serious questions about if and when tokens are really needed. 9ja Cosmos with several active products, can't see ERC 20 solutions sensible, at least in the current landscape. Solana solutions using Rust are less technically vulnerable, but the differences don't negate the potential for fake trades. 'Fake trades were up to 98% of trading volume for some tokens' - Anton Golub. Project Token trade volume can be nominal compared to that of a big 'coin'. The leader, Bitcoin has currently at over USD $1.2 trn market cap, and over 30,000m/day in trade volume, while Ape Coin (Bored Apes) and Blur (Marketplace) are just over $424m., with $47m and $37m vol. BLAST which arrived in a fanfare is just $187m/ 28m vol , while the now obscure Nubcat is $34m / 4m vol. An individual too obscure for the Forbes Rich List, can successfully feign revival of even project tokens with visibility. Launch tokens not yet on CoinMarketCap are nominally worth $0 We need to find a solution to negative actors who inflate launches making 'unborn' tokens seem active. The work of the SEC is merely going to medicate the symptoms over and over, as afflictions arise. It isn't going to eradicate the disease problem. Perhaps a 'Token Union' where one entity holds a token representing a launch flow of unconnected project owners is an answer? From an integrity perspective, 9ja Cosmos will stay operating with the native coin of build environments for the present, while awaiting customer risk mitigation options.

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The "Crypto Markets Week in Review" podcast from CoinDesk summarizes key events in the cryptocurrency market for the week ending November 1, 2024: Market Performance Bitcoin and Ethereum saw price increases, with the overall crypto market cap growing, indicating positive investor sentiment. Regulatory Developments 1. The SEC continued scrutinizing crypto projects and exchanges, emphasizing compliance with securities laws. 2. Europe progressed in implementing the Markets in Crypto-Assets (MiCA) regulation. Institutional Adoption 1. A major Wall Street bank launched a cryptocurrency custody service for institutional clients. 2. Several large corporations added Bitcoin to their balance sheets. Technological Advancements 1. An Ethereum Layer 2 scaling solution achieved a significant transaction throughput milestone. 2. Zero-knowledge proof technology advancements were discussed. DeFi and NFT Markets 1. DeFi protocols showed steady growth in Total Value Locked (TVL). 2. The NFT market experienced a resurgence with high-profile sales and innovative platforms. Global Crypto Adoption 1. A South American country announced plans to accept Bitcoin as legal tender. 2. Several central banks made progress on CBDC projects. Market Analysis The discussion included crypto market correlations with traditional markets and the impact of macroeconomic factors on crypto prices. The podcast concluded with a forward-looking perspective on potential market catalysts, offering listeners a comprehensive update on the crypto industry's state. #Ethereum #DigitalAssets #Blockchain #NetworkEffects #DeFi #NFTs #Metaverse #CryptocurrencyResearch

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In the wake of today’s SEC Wells Notice to Robinhood, it is more ironic than ever that tradfi continues to look to crypto for inspiration. Great recent piece by Michael Bodley for Unchained Media Co. on indications that the New York Stock Exchange (NYSE) is looking toward 24/7 trading. While conventional wisdom might hold that the introduction of around-the-clock stock trading would come at the expense of crypto flows, I totally disagree. “It makes sense in this world where information is 24/7,” according to TRM Labs’ Ari Redbord “Why shouldn’t the stock market be one of those things? I do really believe that crypto has pushed that [narrative].” Redbord said NYSE’s explorations indicate that Wall Street is “adopting some of the promise of crypto,” pointing to an eventual market where “crypto and Wall Street not only coexist, but there’s an ecosystem of different types of assets that people engage with.” Similar to the bitcoin ETF wave, according to Redbord, those assets would merge traditional financial instruments with digital ones, creating new trading opportunities. “What we’re seeing is ‘Generation Crypto’ influence the traditional financial system in a really meaningful way,” he said. “This is what people today want … Through a Coinbase account or in their own self-hosted wallet, they want [crypto] 24/7, but they also want to be invested in the stock market. But they want to do it 24/7, on their own terms.” Some days are tough and the journey may be long and hard, but the future is bright and it is 24/7 #cryptoverse. https://lnkd.in/euup22Bi

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NYSE: MTA TSX-V: MTA https://metallaroyalty.com Resource Focus: XAG Business Model: Streaming Royalties *I was #market musing whether the origins of the words Royalties and Royalty share etymological parent-root origins that would be proven in some way to perhaps point to some linguistically sound correlation broadening the understanding of the intrinsic value and nuance of words etc-- *There isn't.-- If there is I can't find it,- or rather it can't be located at this time :) *Yet the the highly esteemed (school-house throwback) 🗒 Merriam-Websters dictionary gave me this definition a)royal status or power: SOVEREIGNTY b) : a right or perquisite of a sovereign (such as a percentage paid to the crown of gold or silver taken from mines)--- Works for me* Nerd-Itch-scratched*---- On another note... *Owning royalties in top-tier company assets such as Equinox Gold, Pan American Silver, First Majestic Silver, and Coeur Mining, to name just a few, combined with seasoned management possessing extensive expertise in the royalty acquisition space, makes it an attractive option poised for long-term participation in the upcoming XAG breakout. This is particularly true as silver maintains its position above the $30 mark, pushing towards the $30.75 price point. Similarly, the company itself presents a 'radar moment' at the price point, mirroring the last tranche before a price movement. However, I am still waiting for the trading volume to increase, as well as down days in the price action. *Disclosure: As always, this is my own opinion, and I may own shares in one or more of the abovementioned companies. #MarketMentality #SilverLinings https://lnkd.in/gyH-gwNW https://lnkd.in/ggEKAUre ROYALTIES' https://lnkd.in/gzZX7umc

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All areas of commerce are benefitting from data analysis, and our industry is no different. And when it comes to hard data, Henry Schwartz is among the very best. Good, punchy interview here fresh from the OIC on many hot topics in the listed options space, including the rise of the "ProTail" customer using options strategically. #Options #OptionsStrategies #Cboe #SPX #VIX #XSP #OIC #0DTE

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The arrival of native $USDC and CCTP to Sui network is beginning to allow more innovation that can boost scaling of stablecoin technology and provide ecosystem apps in the space with smooth transition of liquidity from bridged USDC to USDC over time and that will leverage technological inclusion through P2P in crypto transactions. #DeFi #Stablecoin #FinTech #P2P

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=> The U.S. labor market report produced a knee-jerk reaction among major FX – but MXN, COP, BRL, and ZAR are bucking the trend => MXN clearly likes the idea of a stronger growth in the U.S. Further, President Sheinbaum continues to send orthodox policy signals (including the post-election fiscal adjustment), and there is now a possibility that parts of controversial judicial reform might be revised => BRL/COP/ZAR’s outperformance is even more interesting – Domestic factors still getting noticed? (chart’s source - Bloomberg LP)

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Back from a busy (and hot) week in ATX for CoinDesk's Consensus. This year the conference felt a bit muted coming in but with the policy changing winds behind our back lots of people came out. My biggest takeaways (hint: not that much new) below: 1/ TradFi! Institutions! - they were literally everywhere. In some sense, that's who this conference caters to. But they also have the ETF wind behind their backs and it's clear that the institutional part of the market is here and they have big plans for crypto. Most of their efforts (cough*tokenization) have little to do with permissionless blockchains and crypto, but the exposure and marketing is still good for all of us 2/ In the same sense, the future of regulation in crypto was the most discussed topic -> getting this right is core for the US' ability to compete in this market. I've been speaking regularly on how the Asian market is pulling ahead, so now is the time for the US to stop the bleeding. 3/ Bitcoin - no I don't mean the ETFs or spot BTC, but Bitcoin ecosystem projects, runes, L2s, sidechains, and ordinals are as discussed as any other ecosystem. More of this than there was SOL memecoin discussions, despite what was happening on twitter 4/ AI - still one the largest topics of discussion, as it has been all year. But people are much more guarded on the potential outcomes here than they have been in months. It seems like people are catching up to me as its become more fashionable to talk about how most the projects / promises coming out of the AIxCrypto market seem to be, at best, extremely far fetched. One reporter told me that he heard from more people than not that most of the AIxCrypto market was vaporware (and likely BS). That's a real change. 5/ DePIN - This seems to be the area that is evolving in a really interesting way, in my opinion. I've been critical of this market in the past but there are real entrepreneurs trying to make honest strides - and even if the projects don't work, it seems like there is less grifting and more just innovating. As Chamath would say, they are in the Arena trying things. 6/ Tokenization - truly does not seem like anyone outside of the major institutions understands who the clients are for tokenized products (if you are an entrepreneur and believe you are different, please hit me up and prove me wrong). And the institutions understand it's just themselves, saving on software and capital efficiency. This market on permissionless chains doesn't seem much further along than it did the last time we had this theme 7/ Frankly, there's a general lack of "new" themes -> seems like it might be time to go heads down and focus on building while the institutional adoption wave just keeps flowing over us

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Money laundering is a very serious concern when it comes to crypto, in addition to another interrelated topic, tax fraud. In order to address those issues--as well as to weed out an assortment of bad actors that have taken up persistent residence in the Web3 universe--there must be more transparency in terms of underlying crypto identities.  Naturally, there has been pushback on this from crypto die-hards who have routinely promoted the (relative) anonymity of crypto and are reluctant to cede this ground. As a counterpoint, they often suggest that the blockchain itself should serve as a deterrent to criminal activity by making all financial transactions publicly visible and apparent. Unfortunately, this assumes that those responsible for thwarting money laundering and tax fraud have the financial, technical, and technological resources to do that on a mass scale -- and in most cases, they simply do not. In reading recent conversations of Mandarin-speaking crypto fraud actors on platforms like Telegram and WeChat, the knowledge and capability gap is striking -- and it is readily apparent to the bad guys. They know that the regulatory and law enforcement agencies are hopelessly outgunned when it comes to crypto, and indeed they are openly laughing about it. More on this soon... #cryptofraud #fraudprevention #cryptocurrency #threatintel #cyberintel #identityfraud #identitytheft #phishing #web3 #moneylaundering #taxfraud

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At DigitalX Limited (ASX:DCC) we are turning 10 too and will be out in force at Consensus - come find us to hear about 10 years of the NEXT, NOW and the NEXTX. #2024theyearofscalinguprealworldassettokenisation

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Blue Owl Capital is acquiring Atalaya Capital Management, an alternative credit manager, for $450 million. This strategic move will enhance Blue Owl's credit and asset-based finance capabilities, adding over $10 billion in assets under management. Atalaya focuses on asset-based credit investments across various sectors and manages over $10 billion in assets. Post-acquisition, most of Atalaya’s 115 employees, including founder Ivan Zinn, will join Blue Owl. Zinn will lead the alternative credit segment under Craig Packer. The deal includes $350 million in Blue Owl equity and $100 million in cash, with an additional potential earnout of up to $350 million in equity, contingent on future revenue targets. This acquisition reflects a growing trend of consolidation in the alternative credit space. Blue Owl's expansion into asset-based finance signifies increasing demand for versatile and specialised credit offerings.

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🌟 Check out #CHF's Weekly Round-Up! 🚀 Discover what our clients did from June 17-21, 2024 $SIC $VIS $ABLV #technology #juniormining Read here: https://lnkd.in/gYmTXgfi

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The resilience of cryptocurrency just amazes me. It’s like people don’t care about any bad news and it looks like blind optimism to me. I say that because the SEC levied one of the largest civil fraud penalties ever on the crypto firm, Terraform Labs. It is doubtful that the SEC will collect much of the $4.5 billion penalty because Terraform had liabilities that far exceeded their assets, which means there’s not much there for them to pay the fine. #cryptocurrency #crypto #bitcoin #investing #investors #stocks #stockmarket #cryptofirm #terraformlabs #assets #economy

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