London, United Kingdom, May 2nd, 2024, Chainwire

AI-powered Telegram trading bot, Bitbot, has surged past the $3M mark in its presale after outlining its updated product offering. Bitbot now includes a layer of AI development on its blockchain analysis tool, Gem Scanner. The project has hurtled into stage 12 of its short 15-stage presale due to end this quarter, at which point the BITBOT token will be unleashed upon the open market

The Bitbot community now numbers over 140k, with 110k+ followers on X and a Telegram channel approaching 30k. Bitbot’s team hopes to convert a good portion of this into paying customers when the product launches this year.

The presale has been supported by Bitbot’s recent rebrand, which includes a new website with updated visuals and, most crucially, a spotlight on Bitbot’s AI features. Bitbot’s team is optimistic that investing in AI to boost its trading engine is one of the factors likely driving the heightened interest in the presale.

Bitbot is establishing its status as a game-changing project by offering the world’s first non-custodial Telegram trading platform, ensuring users’ funds only transfer once trades are complete. This is combined with an arsenal of AI trading weapons that give retail investors the firepower they need when competing against the institutions

Bitbot (BITBOT) is available to buy on the official site**.**

Gem Scanner: merging AI with on-chain analysis

Powered by Bitbot’s proprietary AI, the Gem Scanner aims to uncover undervalued, low-cap tokens with the potential to achieve multi-digit rallies.

The Gem Scanner scours top data aggregators such as DEX Screener and Birdeye while combining social media feeds to make predictions based on both market data and audience sentiment.

This productivity-boosting tech eliminates the reliance on conducting hours of meticulous market analysis. It will typically appeal to retail traders and therefore help drive production adoption. With this offering, the team hopes to see Bitbot take market share away from key competitors Banana Gun and Maestro over the coming year.

AI and blockchain are on the rise

Tech stalwarts Google and Microsoft both enjoyed AI-driven stock price surges recently, with Reuters reporting spikes of 10% and 2%, respectively

And with demand for AI features outstripping capacity to supply the market, the industry appears poised for sustained growth. This is supported by sector predictions, which lay out an expected compounded annual growth rate (CAGR) of 28.4% per year until 2030.

Blockchain offers a similar story, with a CAGR of 24% projected. AI crypto tokens are currently valued at just under $20 billion, with a daily trading volume of around $900 million, according to CoinGecko.

Bitbot has repositioned itself to meet this growing demand for AI in the crypto market by offering a range of advanced technologies.

Speaking on the decision to refocus efforts towards AI capabilities, Bitbot’s Technical Product Officer, Andrew Jacobs, said:

“Our mission has always been to give our users the tools that have enabled institutions to dominate financial markets, and the benefits our AI offers are the best equalizer we’ve seen on the market so far. Plus, AI positioning is currently generating great returns for many projects in the space, and we predict BITBOT holders will feel the benefit of this.”

Bitbot’s exciting market outlook

With its enhanced focus on AI, Bitbot is positioned to engage with the increasing interest in AI projects. The market has observed notable activity, such as the performance of BitTensor (TAO), an AI coin which experienced significant price changes, rising from $34 last year to $757 in March.

Within the Telegram bot sector, there is plenty of precedent for strong performance as well. Competitors like Banana Gun have experienced 200% rallies in just six months, and in early April, they saw 80x gains from early presale price. With its enhanced security and AI iterations on these first-generation products, the Bitbot team is optimistic about surpassing these results.

About Bitbot

Bitbot is a new AI Telegram trading bot that aims to put institutional-grade trading tools in the hands of retail users, to enable them to trade using a variety of advanced features, including sniping and copy trading.

Audited by Solid Proof, Bitbot focuses on security and follows the motto, “Your keys, Your wallet, Your assets.” To this end, the project has partnered with Knightsafe to deliver the world’s first non-custodial telegram trading bot, mitigating counterparty risk and reinforcing this with anti-MEV and anti-rug technology.

For more information, users can visit the website**.**

Official Website | Whitepaper | Socials

Bitbot is the source of this content. This Press Release is for informational purposes only. The information does not constitute investment advice or an offer to invest.

Contact

Bitbot Press Team Bitbot [email protected]

Of all the upgrade proposals that have been proposed, one noteworthy part is the Algorithmic Stablecoin GHO that focuses on rise protocol.

DeFi (Decentralized Finance) lending protocol Aave Labs recently unveiled its roadmap for the next five years. Protocol to the company's proposed plan, they intend to upgrade the protocol to a new V4 version, and they want to get community feedback on this proposal. At the same time, Aave also emphasized that the V4 upgrade is only part of a broader plan for its Aave 2030 grant proposal.

Aave V4: Proposal

Protocol to the Aave Labs team, the Aave Labs team announced that their proposal aims to overhaul the protocol, involving a "major upgrade and expansion" of the Aave network. These updates will include the introduction of a cross-chain Liquidity layer, the deployment of non-EVM layer 1 technologies, and the presentation of a "new visual identity".

The team also specifically mentioned that the Aave V4 upgrade will feature a completely different architecture from the previous three versions. To more smoothly integrate features including its native stablecoin GHO, segregated pools, and RWA (physical asset-backed Token) modules, the upgrade will also introduce a "Unified Liquidity Layer."

Another part of the proposal mentions an automatic Intrerest Rate feature that can be adjusted based on market conditions. In line with this, Aave said it is actively working with Chainlink to "define a clear set of data sources." The team then also suggested a liquidity premium that took into account the borrower's Collateral composition and adjusted their borrowing costs accordingly.

Expectations for GHO

Of all the upgrades proposed in the proposal, the notable part is focused on the Algorithmic Stablecoin GHO of the development protocol. Since its launch in July 2023, the GHO stablecoin has found itself at a disadvantage in competition with stablecoins such as Tether (USD) and USD Coin (USDC). At least GHO's relatively low market capitalization of $49 million also reflects this. This shows that GHO still has a lot of shorter room for improvement in terms of market share and awareness.

To this end, in order to enhance GHO's competitiveness and market position, the Aave V4 upgrade proposal proposes a series of innovative ideas, mainly focused on improving the clearing engine. Specifically, the proposal proposes the concept of implementing a variable liquidation bonus, which could incentivize users to be more actively involved in the platform's lending and clearing process. In addition, the concept of "soft" liquidation has also been proposed, which may refer to a more modest form of debt recovery aimed at reducing the impact on borrowers in times of high market Fluctuation.

In addition to the improvements to the clearing mechanism, the proposal also hints at the introduction of new options to earn Interest, which may attract more long users to hold and use GHO, thereby driving its circulation and use. The aim of these measures is to increase the attractiveness of GHO, encourage more long adoption, and expand its market share by offering more attractive financial products and services.

In addition, this important upgrade proposal includes a quick redemption mechanism long wick candle GHO stablecoin depeg. Although the proposal is preliminary at this time, it is expected to end in the second quarter of 2024 to collect feedback. Once the feedback is collected, an on-chain vote will be held to decide the final fate of the proposal. If all goes well, the team plans to officially release the full Aave V4 release by mid-2025.

The introduction of this quick redemption mechanism shows Aave Labs' forward-thinking thinking about the market risks that GHO stablecoin may face, and the importance they attach to the security of users' assets when designing protocol upgrades. Through on-chain voting, members of the Aave community will have the opportunity to participate directly in the governance of the protocol, which is a core principle of the DeFi. The launch of Aave V4 will be an important milestone in the development of the protocol, heralding a more efficient, secure, and user-friendly Decentralized Finance lending experience.

According to DefiLlama, Aave continues to hold the position of the third-largest DeFi (Decentralized Finance) protocol, with a total value locked (TVL) of around $10 billion. This data shows the prominent position of the Aave protocol in the Decentralized Finance space and its wide user base.

London, United Kingdom, May 1st, 2024, Chainwire

Humanode, a Layer-1 blockchain built with Polkadot SDK, has become the most decentralized blockchain network to date based on the Nakamoto Coefficient. With 706 active validator nodes, the Nakamoto Coefficient for the Humanode is 236, shooting past the prior number one, Mina, which has a Nakamoto Coefficient of 155. Polkadot now holds the 3rd place

The Nakamoto Coefficient is a measure that represents how many node operators will be required to control the share of a layer-1 blockchain which is enough to shut down the network if validators coordinate to do so. The greater the number, the more decentralized the blockchain is.

“Proof-of-Stake blockchains tend to centralize around the biggest validators or staking protocols, like Lido, which actually hold the infrastructure. If Lido goes down once, people will start questioning the decentralization of Proof-of-Stake networks. They may have millions of nodes, but the real control over consensus is in the hands of few. We always wanted to change this,” says Humanode co-founder Victor “In Humanode, one person can only launch one node, which is verified with cryptobiometric technology. All validators wield equal power, meaning that the Humanode chain decentralization increases proportionally to the number of human nodes Imagine what kind of Nakamoto Coefficient will be achieved when we hit 10,000 nodes or 1 million nodes!? This makes a coordinated attack almost impossible. No project will be able to claim that it is more decentralized than Humanode.”

Humanode will soon unveil its governance protocol where one human node has only one vote, creating the first democratic DAO which will control the further development of the core protocol and its eco.

About Humanode

Humanode, built on Polkadot SDK as an EVM Compatible Layer-1, is the first cryptobiometric blockchain where one human = one node = one vote. It utilizes private facial recognition which protects against multiple accounts and bots taking advantage of retroactive airdrops, DAOs, DeFi, NFT mints, GameFi, and more. After just a year from mainnet launch, Humanode boasts 500,000+ users and 70+ projects utilizing its cryptobiometric technology.

Contact

Shannon Higgins [email protected]

With the rapid development of technology, Blockchain technology has expanded from initial financial applications to various fields. As an emerging track, DePIN uses Blockchain technology and tokenomics principles to redefine the construction and operation mode of infrastructure, and greatly improves the optimal allocation and use efficiency of resources. Many long investment research institutions believe that 2024 will be a big year for the DePIN track, with huge development potential.

I. DePIN Overview

Definition of DePIN

The concept of DePIN (Decentralized Physical Infrastructure Networks) or Decentralization Physical Infrastructure Networks was first proposed by analyst firm Messari to optimize the deployment and management of physical infrastructure through Blockchain technology. According to Messari's classification, DePIN is divided into two main categories: Physical Resource Networks (PRNs) and Digital Resource Networks (DRNs). PHYSICAL RESOURCE NETWORKS EMPHASIZE THE USE OF GEOGRAPHICALLY RELEVANT HARDWARE DEVICES TO PROVIDE REAL-WORLD GOODS AND SERVICES, SUCH AS WIFI, VPN, ENERGY INFORMATION SHARING, ETC.; WHILE DIGITAL RESOURCE NETWORKS FOCUS ON THE USE OF HARDWARE FACILITIES TO SUPPORT THE STORAGE AND COMPUTING OF DIGITAL RESOURCES, SUCH AS BROADBAND NETWORKS AND DATA CENTERS.

DePIN projects enable the management and allocation of physical resources such as energy, storage shorts, bandwidth, etc. through decentralized nodes and a decentralization decision-making process. In the DePIN network, each participant is not only a user of resources, but may also become a provider of resources, ensuring the transparency and security of resource transactions through smart contracts and encryption technology.

Features of DePIN

1. Decentralization management: The most significant feature of DePIN is Decentralization, which reduces the dependence on centralized management institutions, drop management costs, and increases the system's ability to resist attacks.

2. Optimal allocation of resources: Through automatic execution of smart contracts, DePIN can more efficiently match resource demand and supply and optimize resource allocation.

3. High transparency and trustworthiness: The application of Blockchain technology makes all transaction records open and transparent, traceability, and greatly enhances the trust of the network.

4. Incentives: DePIN provides financial incentives to resource providers and consumers through a tokenomics model, encouraging more long participants to join and maintain the network.

5. Enhanced security: Decentralization makes the network less susceptible to single points of failure, enhancing the security of the entire system.

DePIN projects not only improve the operational efficiency and transparency of traditional infrastructure, but also drop costs and provide shorter for new business models and innovations.

2. Classification and principle of DePIN items

The projects in the DePIN track can be classified according to the type of physical infrastructure resources provided, mainly covering longest areas such as computing resources, storage resources, bandwidth resources, and Internet of things (IoT) applications. Each type of project is not only different in terms of technical principles, but also oriented to specific market needs and application scenarios.

1. Computing resources

Computing resources generally refer to distributed computing power, including the allocation and utilization of computing resources such as CPUs and GPUs. Blockchain technology enables these resources to be securely shared and traded in a decentralization network. Key technologies include:

• Node distributed processing: Each Node in the network can provide computing resources and automatically match the demand side and the supply side through smart contracts.
• Consensus Mechanism: It ensures the correctness and transparency of computing tasks and resource allocation in the network.
• Encryption technology: to ensure the security and privacy of data during transmission and processing.

Representative Projects:

io.net: is a Decentralization computing network that is building the world's largest AI computing cloud, enabling the development, execution, and scaling of ML applications on Solana Blockchain, combining 1 million GPUs to form the world's largest GPU cluster. Recently, io.net unveiled its Token economic model for Token IO, which will be available as soon as the end of April.

Render Network: Decentralization GPU-based rendering solution provider designed to connect users who want to perform rendering jobs with people who have shorter GPUs to process rendering.

Akash Network: A Decentralization Cloud Computing Platform that aims to build an open and transparent marketplace by providing a peer-to-peer marketplace that integrates underutilized computing resources worldwide.

2. Storage resources

Storage resources in DePIN refer to shorts on distributed storage devices, which can be PCs, data centers, or even mobile phones. The technical principles mainly include:

• File Sharding: Large files will be play people for suckers into long small fragments before storage, and stored on long Node to enhance the anti-tampering ability and availability of data.
• Redundant storage: Data is stored in longest copies, ensuring that data can still be recovered and accessed if some of the nodes fail.
• Encryption technology: The data is encrypted before storage to ensure the security and privacy of the data.

Representative Projects:

FIL: A Decentralization Storage Network, a P2P network where anyone can store and retrieve data on the Internet, with built-in economic incentives to ensure reliable and continuous storage and retrieval of files for a user-specified period of time.

Arweave: Decentralization data storage protocol that enables data to be stored permanently and on its permaweb, a secondary network that makes data accessible through web browsers and more.

3. Bandwidth resources

The bandwidth resources in the DePIN track refer to the sharing of data transmission capabilities. This type of project usually uses the following technical principles:

• Traffic encryption: ensure the security of data during transmission.
• Dynamic Routing Algorithm: Automatically selects the optimal path to ensure efficient and low-cost data transmission.
• Bandwidth tokens: Control the use and allocation of bandwidth through Blockchain issuance digital tokens.

Representative Projects:

Helium: Provides a Decentralization wireless network service where users can contribute bandwidth resources and earn Tokens by deploying Hotspot.

World Mobile: is a mobile network that uses hybrid spectrum, renewable energy, and Blockchain technology to use permissionless spectrum such as free shorter optical communications and other radio transmitters, which translates into cheaper Internet access.

4. Internet of things (IoT) applications

The application of Internet of things in DePIN involves managing and manipulating large amounts of Internet of things devices and generated data through Blockchain technology. Key technical principles include:

• Device authentication: Each device has a unique identity through Blockchain technology.
• Data on the chain: The data generated by the device can be encrypted and stored on the Blockchain, ensuring that the data cannot be tampered with and easily traced.
• Smart contracts: Automate specific tasks or transactions based on data, such as automatic payments, data sharing authorization, etc.

Representative Projects:

IoTeX: Leveraging Blockchain technology to provide secure Internet of things device connectivity services, focusing on privacy protection and data security in smart devices, providing better value to end users by creating a trusted Internet of things platform.

IOTA: Provides efficient microtransactions and data transfer solutions for Internet of things environments through its non-Blockchain Tangle technology.

Third, the development status of the DePIN track

With the maturity of the technology and the increasing long number of application cases, the DePIN project has moved from the initial proof-of-concept stage to the practical application and commercialization stage, and has gradually gained market recognition and user trust by providing more cost-effective and efficient infrastructure services. According to DePINscan, as of April 25, there are more than 232 DePIN projects in operation or development worldwide, of which 31 are AI concept projects. DePIN has 841, 861 active devices, covering longest 175 countries and territories, with a total market value of more than $11.8 billion.

The DePIN project has attracted a lot of venture capital and investor attention. According to RootData statistics, from 2022 to the end of 2023, DePIN-related projects have received a total of more than $3 billion in investment, and as of April 25, the financing amount announced by DePin track in 2024 has reached $97.7 million, which is mainly used for technology development, marketing and ecological construction. According to CoinGecko data, as of April 25, the Token market capitalization related to the DePin track has exceeded $26 billion, showing its rapid rise potential.

During the Hong Kong Web3 Carnival in April, UWEB and JDI Global released the "2024 DePIN Development Report", which predicts that the market size will reach $3.5 trillion by 2028 and will play an increasingly important role in the development of global infrastructure networks.

Fourth, DePIN track investment opportunities and risks

The DePIN track is gradually becoming a hot spot for investors, offering not only innovative technological solutions, but also unique business opportunities. However, the DePIN track also has both opportunities and risks.

Investment Opportunities

1. Technological innovation and application expansion: The technological innovation involved in the DePIN project, especially in the fields of Internet of things (IoT), 5G communication, cloud computing, AI computing power, etc., optimizes the allocation of data storage, computing power and bandwidth resources, improves the utilization efficiency and security of these resources, brings subversive changes to traditional industries, and creates new market demand.

2. Environmental sustainability: With the increasing global emphasis on environmental protection and sustainable development, DePIN projects have shown great potential to improve energy efficiency and drop carbon footprint. These projects reduce energy waste by optimizing the allocation of resources, which is in line with future development trends.

3. Ecosystem construction and network effects: From internet of things to cloud computing, from content distribution to smart city construction, DePIN technology has a wide range of application prospects. Investing in a DePIN project isn't just an investment in a single technology or service, it's an investment in a fast-growing ecosystem. As network effects increase and the ecosystem matures, early investors are likely to reap significant returns.

4. Global development characteristics: The DePIN program is inherently globalized, and the project's services and products are not limited by geography and can be quickly expanded to the global market. With the popularization of technologies such as 5G and AI, the practical application and market penetration of DePIN projects will further accelerate.

5. Regulatory progress and market acceptance: Many long countries and regions are gradually rolling out policies to support Blockchain technology and Decentralization networks, which may provide a broader development short and higher market acceptance for DePIN projects.

Investment Risk

1. Technical complexity and implementation difficulty: DePIN projects often involve complex technical challenges, including data security, network stability, and cross-platform compatibility. Technical obstacles, such as security vulnerabilities and performance issues, may be encountered during project execution and operation, which may affect the long-term stable operation of the project.

2. Token the uncertainty of the economic model: The long DePIN project relies on a specific Token economic model to incentivize participants and keep the network running. There is uncertainty about the sustainability and effectiveness of such a model, which may affect the long-term stability and return on investment of the project.

3. Market competition and technology iteration: The DePIN track is facing fierce market competition. At the same time, rapid iteration of technology can cause some projects to become obsolete quickly. Investors need to pay attention to the competitiveness and continuous innovation ability of the invested projects.

4. Market acceptance and user rise: The success of DePIN programs largely depends on market acceptance and the rise of the user base. If a project doesn't effectively engage users and partners, it can make its business model unsustainable.

5. Regulatory risks and policy changes: As an emerging technology field, DePIN projects may be affected by uncertain regulatory risks and policy changes. Uncertainty in government policies may lead to sudden changes in the investment environment, affecting investment decisions and project operations.

5. Prospects for the DePIN track

1. Continuous technological innovation: Technology is the core driving force for the development of the DePIN track. With the continuous maturity and optimization of Blockchain technology, DePIN projects will be more efficient and secure in the future, and can better serve complex infrastructure needs.

2. Stronger cross-chain capabilities: In order to achieve wider interoperability and resource sharing, DePIN projects need to develop more robust cross-chain chain technology that enables different blockchain networks to seamlessly connect and share data and resources.

3. Expand the scope of market applications: The market application of the DePIN project will be expanded from some existing fields to a wider range of industries and scenarios, from energy management to smart city construction, from internet of things to Supply Chain management, DePIN technology will be applied to more long industries to improve the operational efficiency and cost-effectiveness of infrastructure.

4. Increase consumer-grade applications: In the future, DePIN projects will place more emphasis on the consumer experience and develop more long consumer-oriented applications, such as home automation solutions offered over Decentralization networks.

5. Continuously optimize the Token Economic Model: By optimizing the Token distribution and incentive mechanism, ensure that participants—whether resource providers or service consumers—can receive fair returns, and explore longer ways to make Tokens have practical application value, such as paying specific physical infrastructure usage fees through Tokens.

6. Promote the digital transformation of the industry: DePIN technology will help traditional industries achieve digital transformation, improve the transparency and efficiency of industry operations, and help the world achieve more long and sustainable development goals by optimizing resource allocation and utilization, such as improving energy efficiency and reducing environmental pollution.

As an innovative track that combines Blockchain technology and physical infrastructure, DePIN carries great potential and possibilities in the future sustainable development, and with the continuous advancement of technology and the gradual expansion of market applications, DePIN is expected to become an important force to promote the modernization and digital transformation of global infrastructure.

Hotcoin is very concerned about the development of the DePIN track, and has launched high-quality assets such as RNDR, FIL, GRT, THETA, BTT, AKT, IOTA, AIOZ, HNT, IOTX, MOBILE, TFUEL, LPT, ANKR, STORJ, BZZ, MXC, OCEAN and other high-quality encryption assets.

Written by: TechFlow

The integration of Web3 and celebrities is like a carnival feast, and the addition of long stars has brought more long users to Web3 and promoted the popularity of Web3.

But at the same time, how to make the star effect bloom better in Web3 has always been a topic to be explored.

Celebrities bring traffic, but how to better convert, how to operate a good community, and better integrate with Web3. This article will analyze two specific and innovative cases for your reference.

Celebrities enter Web3: Bright as meteors, but will eventually return to reason

NFT can be described as an important track in the Web3 field, and it is also the first stop for celebrities to enter the encryption field.

As celebrities have participated in Opensea-related projects, the NFT market has seen unprecedented prosperity and vitality. Jay Chou's bear, Wilber Pan's cat...... At the same time, Metaverse has also become a new hot spot for celebrity investment in the long, Xu Jinglei, Yue Wenle, Lin Junjie, Lu Han, etc., have joined in to buy real estate in the Metaverse...... The news related to celebrities and NFTs is like fireworks, lighting up the starry shorts of the Metaverse.

Since celebrities and celebrities from all walks of life have huge traffic and influence in their own right, NFTs related to them often attract attention in the launch stage. However, with the overall market downturn, special NFTs related to entertainment stars have not been left alone, with some projects soaring and others struggling.

Dong Chou's trendy brand PHANTACi cooperated with the NFT platform Ezek to release 10,000 Phanta Bear series NFT, which was worth 62 million yuan of coin NFT has reached the boiling point of being snapped short up in just 40 minutes, and has also experienced the turbulence of 96.6% from the high point Floor Price fall with the market downturn;

Pan Shuai issuance his innocent cat digital collection (NFT) project Innocent Cats on January 27, which also reached the brilliance of 0.28 ETH, but finally fell back to 0.08 ETH Floor Price.

The combination of celebrities and Web3 is as bright as a meteor, but when it comes down to rationality, the main reasons are:

**NFT The cognitive threshold and transaction threshold required by the audience are high, and the big long participating in celebrity NFT are Huang bull and NFT investors, rather than the real fans of celebrities, and they lack the motivation to hold them for a long time. **

**Under the celebrity effect NFT issuance it is different from the conventional NFT, and it is also long to be issuance by a brokerage company or agency company, lacking the ability to plan and professionally empower follow-up operations. **

Whether it is the influx of celebrities into the NFT, or the participation of celebrities in the fan platform, it is impossible to escape the plot of being like a meteor and riding a roller coaster, because the development of Web3 requires not only short-term attention and pursuit, but also long-term continuous promotion and innovative practices, as well as more long efforts in all aspects such as the improvement of infrastructure and the optimization of user experience.

In this article, we will share that Meet48 and Fansland, two highly innovative and potential entertainment platforms, not only have natural star genes, but also show unique advantages in the fan economy, and rely on strong execution to contribute to the development of Web3.

MEET48: Starting from idols, with real fan stickiness

MEET48 IS A FAN PLATFORM IN THE ENTERTAINMENT FIELD WHERE AI AND WEB 3.0 ARE COMBINED, WHERE USERS CAN CREATE, SUPPORT, AND INTERACT WITH FAVORITE IDOLS IN ITS Metaverse WHILE ENJOYING AN EXCITING COMBINATION OF ENTERTAINMENT, SOCIAL CONNECTION, AND CUTTING-EDGE TECHNOLOGY.

More than ten years of accumulation, fans support to create the light of innovation

MEET48 has long years of rich experience in the idol entertainment and fan economy industry based on the development model, and has successfully created the world's largest female idol group, ** currently Depth cooperation with Siba Media, with a growing global fan base, with more than k global fans and strong financial strength. **

MEET48's strength comes from its natural fan genes and its novelty and innovation beyond the general crowd. Especially in terms of fan stickiness, since fans follow the growth of Idol, they are voted one by one, so they will have more fan stickiness and loyalty.

Every year on the group night, you can feel the enthusiasm and support of fans for their idols. This has also created a special market: the idol market. **

New opportunities in the idol market in the context of AI, Metaverse and Web3

The idol market is a special market, according to iiMedia Research, 92.3% of virtual idol fans are 19-30 years old. 80% of consumers spend less than 1,000 yuan a month, and 37.6% are willing to increase support. Commercial revenue mainly comes from brand endorsements, live streaming, offline marketing and IP development. The idol market continues to expand, but there are longest problems such as homogenization and copyright.

The traditional idol market is facing the impact of the times (AI, Metaverse, Web3), and the operation model of idol development itself already has the logical commonality of Web3.0, virtual idols can break the constraints of offline time, shorts, regions, and capital, combined with the online Web2 O2O operation model, to provide a fairer development environment for idols and a more friendly star-chasing experience for fans. At the same time, we can make full use of the integration of AI, Web3.0 and Metaverse to fully explore new user experiences and expand new people.

**MEET48 seizes the wind, and its goal is not just a simple fusion of AI + Metaverse + Web3, but to become a leader in transforming and guiding the entire global entertainment industry. **

GameFi + SocialFi, carry the banner of AI and create a new business model

The MEET48 Metaverse platform is taking the lead in AI entertainment, and new AI technologies such as LLM, AIGPT, AIGC, and AI-Agent are disrupting entertainment content creation and greatly dropping the threshold for user-led creation. MEET48 adopts AI virtual characters and AI driven, and manufacturing and operating costs are greatly dropped.

At the same time, MEET48 introduces the Create to Earn model, in the context of a new community and user-driven model, MEET48 adopts the Metaverse as the technical architecture and infrastructure of the graphical and intelligent social center, making practical consumer social products a reality.

In terms of economic model, MEET48 has launched serialization and standardized application scenarios such as virtual performances, fan interactions, and virtual meet-and-greets, as well as a predictable and achievable large-scale token burning mechanism, and native fans as the value base constitute sustainable positive expectations.

A large number of native fan communities will directly become user groups with strong Consensus and high loyalty, bringing fresh blood to the Web3 industry.

At the same time, it will launch a series of GameFi game products: virtual love, dance simulation, party leisure, card games, pet raising, monopoly, etc., which will continue to strengthen the content ecology of MEET48 and bring uninterrupted user rise. The upcoming launch of the world's leading longest entertainment app will drive user rise and effectively convert them into Web3.0 users, driven by strong community consensus.

At present, through long years of rich experience in the idol entertainment and fan economy industry based on the development model, MEET48 has successfully built the world's largest female idol group, with more than k million fans. **

IdolGPT: AI engine driven, building idol MEET48 Metaverse ecology

On the MEET48 platform, the star-making mechanism promoted by fan tokens provides fans with the opportunity to directly participate in idol training, and at the same time realizes the organic combination between fan tokens and idol cultivation platforms, strengthening the activity and sustainable development of the entire MEET48 platform.

By holding and using Tokens, as well as using IdolGPT software tools to generate avatars and create content, fans can not only support their favorite idols, but also make positive contributions to the development and ecological construction of the entire platform.

**The MEET48 platform will build an ecosystem that promotes the interaction and common development of idols and fans through the operation of fan tokens. **

The logic of IdolGPT's idol cultivation and election mechanism is as follows:

• The platform is issuance fan token and introduced into the market through CEX (Centralized Exchange) and DEX (DEX) exchange, providing a convenient purchase path for investors and players.
• Investors and players can buy Tokens on these exchanges to support their favorite idols and participate in platform events. Their participation not only provides financial support for the platform, but also contributes to the development and promotion of idols.
• Performers earn Token rewards by participating in platform activities, such as live broadcasts, concerts, etc., thereby motivating more long performers to join the platform and increasing the activity and attractiveness of the platform.
• The platform regularly holds annual idol auditions and celebrations, which attracts the attention and participation of a large number of fans, and enhances the popularity and influence of the platform.
• Players participate in idol election rankings by holding Token, and they can influence the status and ranking of idols by buying, holding, and using Token, which inspires more long interaction and participation.
• Token rewards are not only awarded to idols, but 30% of the reward pool will be burned, forming an effective deflationary mechanism, which helps stabilize the value of the Token and increase the confidence and participation of investors and players.

The goal of this organically integrated mechanism is to promote the sustainable development of the platform and a healthy ecology, contributing to the prosperity of the entire ecosystem. A very successful and intuitive example of this is the GIFR (Global Idol Fashion Ranking) event organized by MEET48:

In the event, users can earn points by daily missions > watch videos, exchange points for CALL sticks, etc., to help their favorite idols, and share a million PICK points prize pool and longer event rewards. In this event, users interacted with more than 200,000 k votes, achieved more than one million on-chain interactions, and 200,000 users participated in the competition, and finally Liu Zengyan, Chen Ke, Jiang Shuting, Zhu Yixin, Bai Xinyu, Zheng Danni, Zeng Aijia Seven idols stood out, and went to Lan Kwai Fong, Hong Kong in April this year to participate in the "Back to the Street - Digital Fashion Carnival" pop-up fashion show hosted by MEET48, Vertex Labs, and Hape, during which it attracted more than 1,000 viewers& Fans interacted with idols on the spot, using idols as links to jointly complete the collaborative transformation of Web2 & Web3, and also brought new content and paradigms to Web3 entertainment, presenting a visual feast of perfect integration of technology and fashion.

Meanwhile, the All-Metaverse Annual Audition & Awards Ceremony brings the top five voting events to the Metaverse. The five voting activities include the annual ranking final, the Best50 Golden Melody Awards, the Best CP Draft, the Idol Games and the Fashion Awards.

MEET48 is bringing truly sticky idols to Web3.

Strong technical strength to create an "endless idol and entertainment city"

With more than 20 years of experience in technology development and market operation, MEET48 has successfully created new game market segments such as virtual love development, music and dance, and various popular games.

Through the world's first longing artificial intelligence big data model focusing on virtual human music, dance, voice chat, etc., MEET48 hopes to build an "endless idol and entertainment city" in an all-round way.

Specific products include, Eco-Link App

• Break the limits for fans
• Break down barriers for creators
• Provide an equal stage for idols and entertainment

Here, everyone can be a producer, everyone can be an idol, and everyone can benefit from the entertainment economy.

At the same time, the platform integrates a smart social Metaverse based on Web 3.0 and a series of open ecosystem-connected applications (GameFi, SocFi, and others). Significantly improve the conversion efficiency of Web 2.0 users to Web 3.0 through comprehensive product design, and aggregate this technology into the MEET48 Metaverse, a graphical and intelligent user community of the platform ecosystem.

In terms of functions, MEET48 Metaverse has built-in NFT assets, introduces idol performance venues, users can create virtual idol performances, and at the same time complete the closed loop through live video and video on demand, and can also be upgraded to support VR display in the later stage.

**Endless idol and entertainment city, MEET48 has a promising future. **

Fansland: To be the largest entertainment event in the Asia-Pacific region, silky conversion of Web2 users

Backed by IME, master longest star resources in the Asia-Pacific region

Fansland is the world's first new fan economy infrastructure platform that combines Web3 and AI technologies, with the goal of creating the best Web3+AI infrastructure for global fans.

Backed by the support of its NFT concert ticketing platform Fantopia and iMe platform.

As a super aggregation platform in the pan-entertainment field in the Asia-Pacific region, iMe Entertainment is a group with large-scale performance hosting and artist management as its core business, with the most long entertainment star resources in the Asia-Pacific region, and has held long offline music festivals, and has exclusive cooperation with long artists.

The Fansland team has pioneered the global Web3 festival series with decades of experience curating longest 500 mega concerts and attracting more than 1 billion fans. In terms of resources and experience, Fansland also has inherent and exclusive advantages.

NFT ticketing + RWA, bringing billions of fans to Web3

Web2 sells tickets, Web3 writes.

Through its **Asia's largest NFT concert ticketing platform fantopia, Fansland has effectively realized the integration of web2 ticket sales + web3 ticket sales, allowing users to better enter web3. **

At present, Fantopia has achieved a good data model, with an estimated 1 million NFT tickets, 200 million US dollars spent on the on-chain, and up to 100 million fans affected.

Fansland has also introduced all NFT participants to the platform's more long activities through long initiatives such as NFT ticketing and AI virtual idol accompaniment. In addition, the platform will also bring new Token uses and users to virtual idol Tokens (virtual idols trained by tokenization and artificial intelligence) through Fansland's DEX.

Recently, Fansland announced that it will host its first Web3 music festival in Bangkok, Thailand on May 4 and 5 this year. The festival will combine modern Web3 and AI technologies to bring an unprecedented real-world Web3 experience to fans around the world.

The event has attracted longing of the world's top stars to join, and it can be seen from the social media on the official website that longing top artists such as Uncle Bird, Edison Chen, and Liu Xianhua will join the festival.

Tickets for the Early Bird NFT, the inaugural Web3 music festival, sold out shorter on March 12.

Through Web2+Web3 ticketing, it gives ticketing more long practicality. Fansland will also bring mass adopotion to the industry in its own way.

Create a new "star" + Web3 model, and only with determination can you really get out of the circle

The influx of "stars" has undoubtedly injected a fresh vitality into Web3, and has also played an important catalytic role in the promotion of digital art.

In the Compliance year of 2024, with the continuous improvement of the on-chain ecosystem, Web3 is flourishing with a new attitude, but it still needs to attract more long people to join the feast of this digital world. At this critical juncture, platforms like Meet48 and Fansland are showing very positive action to contribute to the adoption and development of Web3.

**Meet48 has created a fan platform in the entertainment field that combines AI and WEB 3.0, and users can interact with idols in its Metaverse, while Fansland has built a digital fan paradise that builds a seamless bridge between fans and celebrities. **

The development of Web3 requires not only short-term attention and pursuit, but also long-term continuous promotion and innovative practices, as well as more long efforts in improving infrastructure, optimizing user experience, and standardizing laws and regulations. And these require the joint efforts and active participation of the entire Web3 ecosystem.

Simon Chandler

Last updated:

May 2, 2024 10:13 EDT | 3 min read

The Solana price has gained 10% in valuation today, with the SOL price moving to $137.28 as the cryptocurrency market as a whole posts a 2% increase in 24 hours.

This move comes after a bad start to the week for the entire market, with SOL still down by 5% in the last seven days and by 23% in a month.

However, the coin still sits on a 525% appreciation in the past year, and with it retaining plenty of medium- and long-term momentum, today’s recovery could easily continue over the next few days.

Solana Price Prediction as SOL Gains 10% Overnight — Is It Time to Load Up?

Looking at Solana’s technicals, it’s initially hard to decide whether it’s going to come back down again or will see further rises in the near term.

On the one hand, SOL’s relative strength index (purple) has touched 70 – an overbought position – and looks as though it has begun declining.

Source: TradingViewOn the other hand, the coin’s 30-day average (orange) still hasn’t climbed over its 200-day (blue) yet, meaning that the token still has time for more gains before it becomes decidedly overbought.

One thing that’s particularly positive about SOL’s chart today is that its trading volume has risen to $5 billion, up from only $2 billion a couple of days ago.

In other words, there’s clearly a lot of demand to buy Solana at the discount offered by the recent downturn, with the alt still remaining the second-most popular alt among digital funds (behind Ethereum).

The past 24 hours have also seen some very significant transfers, with one unknown wallet sending nearly $200 million in SOL to another unknown wallet in the past couple of hours.

🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 1,499,999 #SOL (199,509,099 USD) transferred from unknown wallet to unknown wallet

— Whale (@whale_) May 2, 2024

SOL’s fate in the near term depends on the wider market, which appears to have bottomed out after this week’s big fall but could still have a few more wobbles before returning to sustained growth.

Part of the reason for market pessimism is that the Federal Reserve doesn’t look like it will cut rates anytime soon, having kept them where they were yesterday.

Yet the expectation remains that rates will be cut later in the year, at which point the market will see more obvious joy.

This will help the Solana price, which could hit $150 in a few weeks and $200 by the end of the summer.

For further reading: Solana Price Prediction 2024, 2025, 2026 – 2034

New Altcoins for New Rallies

Traders may not be overjoyed about having to wait several months for a big SOL rally, yet numerous newer tokens do have the potential to beat the market over a shorter time span.

This includes several presale tokens, which can often rally big when listing, as a result of generating momentum during their sales.

One of the newest and most interesting of these is Sealana (SEAL), a Solana-based meme coin that has just launched its token offering.

Despite opening its sale only yesterday, it has already raised more than $100,000.

Source: sealana.ioThis is a strong sign that investors are already taking a shine to Sealana, which is aiming to become the latest Solana meme token to storm the charts.

It has adopted the ever-lovable seal as its meme mascot, with the Sealana character styled as a somewhat oafish trader who happens to make some big profits trading.

Traders can purchase some as part of its sale by going to the official Sealana website, where they can send SOL to the following address: DJ15ZYXqUNMYJ3hL7z4ciSaSFAw5cbos3YjGpdvwmF6c

Send SOL to – DJ15ZYXqUNMYJ3hL7z4ciSaSFAw5cbos3YjGpdvwmF6c
Or, purchase through the #Presale website!

— Sealana (@Sealana_Token) May 1, 2024

SEAL is available at an exchange rate of 1 SOL for 6,900 SEAL, which works out to around $0.0199 at current prices.

Buyers will receive the tokens they purchased via the coin’s airdrop, which will happen when the sale ends.

And from there, Sealana will list on exchanges, where it could follow in the footsteps of DogWifHat and potentially moon.

Buy SEAL Today

Follow Us on Google News Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.

After the recent meme coin boom, crypto whales are cashing out. Many believe that meme coins could crash following Bitcoin’s halving. As a result, they’re using their profits to accumulate utility tokens such as Cosmos and Rollblock. These utility tokens have great potential to soar in 2024. Here’s why

Cosmos Approves Proposal 897

The Cosmos Hub recently approved proposal 897. This is a huge milestone for the utility coin, and will implement a new security measure into the Cosmos eco. Known as ICS 2.0: Partial Set Security, this update will offer greater validator flexibility and autonomy

Over the last six months, Cosmos has experienced a strong performance. Its value more than doubled, increasing from $6.20 in October 2023 to $14.50 in March 2024 However, due to turbulent market conditions, Cosmos has experienced price declines over the last month

Presently, Cosmos is down by 26.6%, and ATOM is trading at $8.07. This is Cosmos’ lowest price since October and has caused a significant decline in daily trading volume.

Nonetheless, crypto experts believe that Cosmos is on track to recover. Over the last 24 hours, Cosmos’ daily trading volume increased by 1.9%, and the price of ATOM dropped by just 0.52%. This suggests that Cosmos could be on track to bounce back.

Expert predictions suggest that Cosmos could recover to $10 after Bitcoin’s halving. As a result, many crypto whales are doubling down on their Cosmos portfolio to maximize their potential returns

Why Are Crypto Whales Selling Meme Coins For Rollblock?

Rollblock is quickly becoming one of the hottest new utility tokens in the space. Currently in its presale, the project focuses on applying DeFi technology to the $75 billion a year online gambling market. Its digital casino, which is already live, currently showcases over 100 of the hottest casino games from blackjack to slot machines to poker and roulette.

Rollblock will also be introducing sports betting to the platform very soon, where users will be able to bet across a huge market of events like NBA, NFL, Soccer, Tennis, Formula 1, Boxing and much more.

Something that has really caught the eye of many investors is Rollblock’s revenue sharing model. Up to 30% of the daily revenue will be shared with $RBLK holders. This will be done firstly by Rollblock buying back and burning large amounts of $RBLK tokens from the open market – which could amount to millions of dollars worth of tokens burnt each and every week. This would make the $RBLK token highly deflationary and increase scarcity across the crypto market. As well as burning tokens, Rollblock will also use the tokens it purchases to offer some of the highest yield staking rewards on the market, making it a true passive income powerhouse.

With this unique approach to online gambling and with the industry expected to be worth over $200 billion a year by 2030, analysts are predicting over a 100x price increase by the end of 2024.

How High Could Rollblock Go?

Rollblock ($RBLK) is currently on sale at the low price of $0.01 during phase one of its presale. With nearly 30% of tokens in Stage 1 being sold in the first 2 days. Throughout each presale stage, tokens will experience price increases, with the token set to surge 720% in the presale alone. Combined with huge potential to disrupt the online gambling market, experts are describing Rollblock as one of the biggest crypto opportunities in 2024.

Discover the Exciting Opportunities of the Rollblock (RBLK) Presale Today!

Website: **** Socials: ****

Follow Us on Google News Disclaimer: The text above is an advertorial article that is not part of Cryptonews.com editorial content.

Sead Fadilpašić

Last updated:

May 2, 2024 09:56 EDT | 2 min read

Nibiru Chain, a $100 million HashKey and Kraken Ventures-backed Layer 1 blockchain, has announced two senior hires from Yuga Labs and Starknet Asia as part of its Asia expansion.

The project has appointed Yura Nam, an ex-head of StarkNet Asia, and Nicholas Lo, a former APAC Growth Manager at Bored Ape Yacht Club (BAYC) developer Yuga Labs, as Asia Growth and Asia Business Development leads, respectively.

Expanding Across Asia

The US-based Nibiru’s expansion goal is to cultivate local brand presence and adoption in each Asia region, said a press release sahred with Cryptonews.

Therefore, the team will focus on driving forward adoption, forging strategic partnerships, public relations, marketing engagements, offline events, community management, business development, and developer relations.

The targeted regions include Korea, Japan, India, Southeast Asia (SEA), and Chinese-speaking countries.

Furthermore, Nibiru will be hiring local community leads in each country.

The Asia team will continue to expand with ongoing role searches for Community Growth in countries such as India, Japan, Vietnam, Thailand, Indonesia, and the Philippines, it said.

The team already has relationships with “some of the major players in the region,” including builders, validators, and media companies.

It is pursuing partnerships and collaborations and is exploring opportunities to engage with the developer community through grants, hackathons, accelerators, VC funds, and other initiatives.

🌍 Join the Nibiru Cataclysm Hackathon and build the next "killer-dApp" on @NibiruChain! With $160,000 in prizes, seed funding opportunities, and a platform to showcase your skills, this is your chance to make a lasting impact.

Learn more:

— DoraHacks (@DoraHacks) April 30, 2024

Navigating the Complexities of Local Markets

The Nibiru Chain team suggested that the two latest hires are a key part of the project’s expansion plans.

As Asia Business Development, Lo will lead efforts to establish Nibiru’s presence in key APAC markets.

Lo previously worked as an analyst at JPMorgan and held the position of business development manager at Hong Kong FinTech Week, D3 Bahamas, and Finoverse.

Furthermore, he previously led Asia expansion at “numerous exchanges,” the announcement said.

At Nibiru, he will work at building relationships with major protocols, eco dapps, conglomerates, gaming companies, financial institutions, and local partners.

Lo will also work closely with Asian media companies to create exposure for the project’s L1 offering, targeting verticals in gaming, DeFi, NFTs, and RWAs, it said.

Meanwhile, Nam has seven years of experience in the financial services industry.

Her previous positions also involved working on partnerships, sponsorships, agreements, and event planning and facilitation.

She has significant experience hosting conferences, meetups, and tours, among other events, and is an active member of the Korean blockchain community Nonce.

Lo and Nam will utilize their experience, industry connections, and regional cultural insights to “navigate the complexities of the Asia market,” the announcement said.

COO Jonathan Chang remarked that the new hires will support Nibiru in “incorporating best practices for go-to-market, leveraging their track record of relationship building and ution.”

“Going forward, they will helm a multitude of Nibiru’s events, partnerships, and growth initiatives in the region.”

Who's down for #Nibiru Unchained Bangkok nighttt🔥#SEABlockchainWeek pic.twitter.com/lXoIpxayfc

— Yura (@namyura_) April 25, 2024

Nibiru Chain Has A $100 Million Valuation

Nibiru came out of stealth at the end of 2022. It reported that “dozens of projects” have begun building on the chain since then across sectors like RWAs, gaming, and DeFi.

In April 2023, it raised $8.5 million in seed funding at a $100 million valuation.

The round was led by Tribe Capital, Republic Capital, NGC Ventures, and Original Capital.

It saw participation from Acacia Digital, Alves Ventures, Basis Set Ventures, BECO Capital, Broadhaven, CapitalX, Cerulean Ventures, Cogitent Ventures, Cosmostation, HashKey Capital, Helikon Investments, Imperatore Travel World, Lecca Group, Meteorcap Ventures, SaxeCap, The Picks & Shovels Co., Token Metrics, VC3 DAO, and others.

Follow Us on Google News

Tim Hakki

Last updated:

May 2, 2024 09:43 EDT | 3 min read

Lightning fast Layer 1 token Sei is crashing today. Ethereum and Solana competitor Sei’s price has shed 11% in the last week, taking some of the heaviest losses in a brutal market-wide sell-off that sank the price of market leader Bitcoin by about 8% in the same period.

Sei currently changes hands at $0.5385. This represents a slight gain of over 1% in the last 24 hours but a 24% decline from its price this time last month

Sei is an EVM-integrated blockchain Layer 1, merging Ethereum’s market-leading development framework with the speed and transaction cost scalability of high-performing rivals like Solana

Investors’ risk-averse sentiment this week appears to be spurred by news that the US Federal Reserve plans to keep interest rates higher for longer to help stem rampant inflation.

Bitcoin retreated 9% in two days, from a high of $64,515 on Tuesday to its current price of $58,595. At the height of the crash, yesterday afternoon, the world’s number one cryptocurrency bottomed out at $56,804.

Virtually all other leading Layer 1 blockchain tokens retained value better than Sei this week. Avalanche (AVAX), Cardano (ADA), and Ethereum (ETH) dropped in tandem, only shedding a little over 3% this week.

Sei’s trading chart over the last three months reveals a token that closely tracked Bitcoin. The market-wide rally that began at the end of February and peaked in early March helped Sei set a new all-time high (ATH) of $1.14 on March 16. However, it has since pulled back about 53%

Source: TradingViewThe Sei price and valuaiton is currently recovering and is in line with the rest of the market. Its Relative Strength Index is 59 and climbing, indicating increasing buying momentum. It has also appreciated almost 2% in the last hour, so Sei holders are likely out of the woods now.

As SEI Price Tumbles, Mega Dice Hits Jackpot!

Scaleability and interoperability are the two hottest buzzwords in crypto right now because they represent the path to greater adoption.

Both Bitcoin and Ethereum lag behind speedier and cheaper rivals, although in terms of interoperability, Ethereum’s Virtual Machine (EVM) has helped the network’s developer community set smart contract and software standards across the whole industry.

Still, since Layer 1 tokens often rise in sync, investing in them can feel predictable. Crypto and Web3 have a plethora of services to offer beyond more optimized tech.

GambleFi is one sector that’s getting more of a look-in nowadays. The term refers to any crypto-native online gambling platform or product.

According to data by Statista, online gambling is projected to take in $100.90 billion in revenue this year. This means there has never been a better time for crypto to show the world its iGaming utility

Enter Mega Dice’s brand new $DICE token.

🚨 Don't Miss Out! Join the $DICE Airdrop and Earn Your Share of a $750,000! 🚨

Learn how below ⬇️ pic.twitter.com/OqbkcWR2LL

— Mega Dice Casino (@megadice) April 30, 2024

The $DICE presale is only a fortnight old, and it has already bagged almost $700,000 in investments, according to the token’s website.

Mega Dice launched last year as the world’s first licensed crypto casino accessible through the popular messaging app Telegram.

Since then, 50,000 players have signed up and helped the casino become a well-established name in GambleFi

As the platform’s native token, players can use $DICE to fund games and receive winnings. Casino customers who play with $DICE will have further benefits down the line. The casino plans to integrate the token into its loyalty program, offering more generous rewards to gamers who opt to play with it. The token will also unlock access to exclusive competitions and VIP experiences.

The team has also indicated there will be a buyback and burn program. This means Mega Dice will periodically buy some of the tokens and remove them from circulation to help keep them scarce and drive value.

Follow Mega Dice news over on X/Twitter and Telegram.

Join the presale now on the Mega Dice website.

Follow Us on Google News Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.

Here's everything about what Dusk is, what it does, Dusk Network coin basics, how it works, reviews, and the future coin Dusk.

Dusk Coin is the native cryptocurrency of the Dusk Network, which is among the privacy-focused blockchain projects in particular. This network is specifically designed for the financial sector and other privacy-requiring industries.

What is DUSK Coin?

DUSK Coin is Dusk Network's native cryptocurrency and is used for all transactions carried out on this network. DUSK is required to pay transaction fees on the network, vote on governance decisions, and contribute to security protocols.

What Does DUSK Coin Do?

DUSK Coin is the native cryptocurrency of Dusk Network and has many important roles in the basic functioning of the network. In addition to being the power source for transactions on the network, this coin supports Dusk Network's ecosystem with a variety of use cases.

Transaction Fees

DUSK Coin is used to pay transaction fees, which are required for any transactions made on the Dusk Network. These operations include token transfers, the execution of smart contracts, and data storage. Transaction fees are essential for keeping the network secure and operational.

Governance and Voting Rights

DUSK Coin holders have the right to actively participate in Dusk Network's governance processes. Coin holders can have a say in voting to determine the future direction of the network. These votes can be about network protocols, updates, or other important decisions.

Security & Network Support

DUSK Coin has an important role to play in securing the network and incentivizing network participants. Coin staking, i.e. users locking up their coins, increases the security of the network and incentivizes more users to contribute to the network. This allows participants to act honestly, especially in consensus mechanisms such as the Segregated Byzantine Agreement (SBA).

Smart Contracts and Applications

DUSK Coin acts as a "fuel" for smart contracts and other applications running on the Dusk Network. Developers use DUSK Coin to run their applications on the platform. This allows Dusk Network to serve as a foundation for financial applications and other blockchain-based services, especially with a focus on privacy.

Store of Value and Investment Vehicle

DUSK Coin also acts as a store of value and investment opportunity. Investors can buy and store DUSK Coin based on Dusk Network's potential. The coin's market capitalization may vary depending on the network's acceptance, usage, and overall crypto market conditions.

Dusk Network is a project that focuses specifically on privacy and security needs in the financial sector, offering a specially developed blockchain infrastructure. This network provides a convenient platform for privacy-focused applications, smart contracts, and tokenization processes. Dusk Network's main goal is to create privacy-protected, regulatory, and scalable infrastructure, especially for use in financial services.

Key Features & Functions

1. Privacy-Focused Design: Dusk Network uses Zero-Knowledge Proofs (ZKP) and other advanced cryptography techniques to protect the privacy of transactions and smart contracts. This allows users to make transactions without revealing their identity, which is a significant advantage, especially in financial and legal applications.
2. Regulatory Compliance: The platform is designed to comply with global financial regulations. This ensures that the Dusk Network can be used for regulated activities, such as the tokenization of securities.
3. Segregated Byzantine Agreement (SBA): Dusk Network uses a customized consensus mechanism called the Segregated Byzantine Agreement to speed up transaction confirmations and provide scalability. This mechanism increases transaction capacity while ensuring network security.
4. Smart Contracts and DApps: Dusk Network provides a platform for the development and deployment of smart contracts and decentralized applications (DApps). Developers can create apps in financial services, copyright management, digital identities, and more.

Application Areas

• Tokenization of Securities: Dusk Network can be used to represent and trade company shares, bonds, and other financial instruments on the blockchain.
• Privacy Protective Transactions: Ideal for situations that require transaction confidentiality, especially in the financial sector. For example, large-scale transactions and strategic investments can be made in secrecy.
• Legal Compliance: Law firms and legal consulting firms can use Dusk Network to protect their clients' privacy.

Dusk Network Coin Basics

Dusk Network's foundations are built on privacy, scalability, and compliance. Blockchain uses "zero-knowledge proof" technology to ensure that users remain anonymous while making transactions. Furthermore, the scalable nature of the network allows for the rapid processing of large volumes of transactions.

How Does Dusk Network Work?

Dusk Network offers a privacy-focused blockchain infrastructure, providing a secure and transparent platform specifically for financial services. This network aims to ensure transaction efficiency and privacy through the use of proprietary technologies and innovative consensus mechanisms.

Consensus Mechanism: Segregated Byzantine Agreement (SBA)

Dusk Network uses a customized consensus mechanism called the Segregated Byzantine Agreement (SBA) to verify transactions and ensure network security. SBA is a variation of the traditional Byzantine Fault Tolerance (BFT) mechanism, which allows nodes in the network to reach agreements quickly and securely. This system increases the scalability and efficiency of the network, allowing it to process more transactions in less time.

Privacy Protection: Zero-Knowledge Proofs

Dusk Network integrates Zero-Knowledge Proofs (ZKP) technology to protect transaction privacy. ZKP allows one party to prove a piece of information (e.g., the validity of a transaction) to the other party without disclosing anything about that information. This technology allows users to prove the authenticity of their transactions while keeping their transaction details private, thus striking an ideal balance between both privacy and security.

Smart Contracts and Regulatory Compliance

Dusk Network has smart contract capabilities designed for use in financial services. This smart contracts can be used for a variety of applications, such as tokenization of securities, automated payment systems, and more. In addition, Dusk Network's smart contracts are designed to comply with global financial regulations, allowing users to develop innovative financial services while staying within legal boundaries.

Smart contracts also affect the DeFi space. Crypto users who know the answer to the question of what is DeFi will also open the doors of decentralized finance. Dusk plays an important role in decentralized finance.

Economic Model and DUSK Coin

Dusk Network's economic model is based on DUSK coin. DUSK is used to pay transaction fees on the network, execute smart contracts, and vote on the network's governance. Furthermore, DUSK staking mechanism incentivizes nodes to contribute to network security and receive bounty in return.

Dusk aims to bring traditional finance to blockchain in the field of tokenization. Crypto investors must first know the answer to the question of what is a token.

DUSK Coin Future

Dusk Network aims to fill a significant niche in the financial technology space with features such as privacy protection and regulatory compliance. With the evolution of blockchain technology and the digital transformation of the financial industry, Dusk Network's use cases and influence will continue to grow. Evolving regulations and growing privacy needs can further increase the importance of platforms like Dusk Network.

DUSK Coin Reviews 2024

DUSK Coin reviews for 2024 are generally positive. Analysts predict that coin will potentially gain in value due to the innovative privacy solutions that Dusk Network provides and its applications for the financial industry. However, market fluctuations and regulatory factors will be decisive on these forecasts.

Current cryptocurrency analyses predict potential for Dusk.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making decisions.

Author: Crypto, Distilled, encryption KOL

Compilation: Felix, PANews

Tl; TL;DR: Reasons include project saturation, Token gluttony, increasing market intelligence, and Bitcoin ETFs breaking the traditional alt season path.

After Bitcoin Halving alts flying together is the "law" of the previous Bull Market, but the current highly anticipated "alt season" has not yet appeared. Encryption KOL Crypto, Distilled analyzes the reasons for this phenomenon and provides investors with suggestions for optimizing strategies.

What is "alt season"?

When altcoins outperform Bitcoin, the price spike across the board is alt season. This is a period when the alt market has entered a booming period driven by optimism, like a pump of water. The alt season has driven almost all tracks, and the influx of liquidity into the market is its driving force.

Liquidity tracking

Historically, liquidity has come from two main sources:

• Retail funds flowing in through CEXs
• Outflow from Bitcoin on CEX to altcoins on CEX

Liquidity then flows down the market capitalization ranking "ladder". The OGs are well aware of this dynamic and often refer to it as the "alt season road."

Lalapalooza effect

The "road to alt season" in 2021 was clear, but now it is gone. The authors believe that the cause is longer and is the result of several factors.

The power of a single factor is not enough to change longest things. But when they are combined, exerting influence in the same direction, the effect is enormous. Charlie Munger, a well-known investor, described this effect as the "Lalapalooza effect". (Note: The Lalapalooza effect refers to the effect of longest interrelated co-directional factors superimposed to produce a strong amplification effect)

So what impact does the combination of longest factors have?

1.Project saturation

Although the market liquidity is abundant, the project is extremely saturated. Imagine that there are longest boats in the sea than waves.

Only certain fields, such as the AI field or the SOL ecosystem, will feel the real wave of the "alt season". What was once a "pumping boat" has evolved into a selective rotation game, similar to the PvP nature of the Hunger Games movies (project interrolling).

2. Token Dilution: Invisible "Handbrake"

Token dilution (especially from Token unlocking) killed a alt season like 2021. This often-overlooked factor absorbs a lot of liquidity. No matter long how good the technology of the project is, if there is an oversupply, it is difficult to pump the price.

Some community users @thor_harvisten conducted a sample survey of the Token that have been online so far in 2024. The average circulation rate (Circulating Supply/Supply) of these project Tokens is about 14%, and there are about $70 billion of Tokens waiting to be unlocked.

What happens when project oversaturation is combined with an oversupply of tokens? The alt season is unsustainable.

3. Increased adoption is a double-edged sword

Increased adoption in traditional areas is both a good thing and a bad thing. On the one hand, it enhances the credibility of Crypto Assets; on the other hand, it also makes the field more sensitive. If the more long Satoshi Mingren switch to Crypto Assets, then it will be more difficult to find opportunities in the industry.

4. Bitcoin ETFs: What's New

The approval of the Bitcoin Spot ETF has changed the landscape of alts. Before the advent of ETFs, the main access channel for Bitcoin was through CEXs. This is a good thing for altts, and investors can easily switch from Bitcoin to try altts.

This time, the buyer is different. For those who buy Bitcoin through an ETF, the path to the alt market is not so straightforward.

5. Impact of the pandemic

Why is 2021 so unusual for alts? In the lockdown environment, the flow of funds and the time spent on the screen are very high, creating the perfect conditions for Crypto Assets to attract retail investors.

Given the rarity of this situation, it is reasonable to consider 2021 as an outlier. Everyone is still basking in the high tide of 2021, but the pomp and circumstance are no more.

Here's a quick summary of the reasons why altcoins "disappeared":

1. The alt market has changed from a rapid pump to a rotating game
2. As market intelligence continues to improve, finding opportunities requires more long effort
3. Project saturation, coupled with oversupply, is depleting liquidity
4. Due to Bitcoin ETFs, the traditional alt season path is broken

So in the current market environment, how should users respond:**

1. Pay close attention to FDV estimates (FDVs and saturation rates.

2. Keep an eye on the development of ETFs and areas where institutions are heavily involved, such as RWA. Over the next few years, these may have different tracks and even more favorable dynamics.

3. In a market flooded with alt coins, don't just look at the dollar value of the project. Comparing alt valuations with Bitcoin valuations provides a more accurate assessment of alt strength.

4. Work harder to gain an advantage. It's not just about increasing assets, it's also about improving knowledge, skills, and connections.

Epilogue

There are plenty of opportunities in the encryption market, but they require more long effort and fresh perspectives. The situation changes quickly, and those who can adapt quickly are more likely to succeed.

Related reading: Interview with Shenyu: The main incremental funds enter from ETFs, and there may be no alt season in this round of Bull Market

Sead Fadilpašić

Last updated:

May 2, 2024 08:19 EDT | 1 min read

In April 2024, Web3 saw a loss of over $53 million to hackers across 21 incidents, a 46% decrease when compared with the previous period, found the latest report by the crypto-focused bug bounty platform Immunefi.

To be more precise, $53,074,827 was lost to hacks and frauds this past month.

Notably, in April 2023, this number stood significantly higher, at $98,610,392.

The attack on Hedgey Finance accounts for most of the past month’s loss: $44.6 million was stolen.

This demonstrates that decentralized finance (DeFi) continues to be the main target for exploiters.

Other high-profile exploits include Grand Base ($2 million) and Wilder token ($1.4 million).

Centralized finance (CeFi) saw no attacks in April.

Source: Immunefi## Ethereum is the Main Target for Web3 Hackers

Hacks are unsurprisingly the main cause of losses compared to fraud, accounting for more than $50 million across 12 incidents in April.

At the same time, fraudsters stole just above $3 million in 9 incidents.

Ethereum and BNB were the primary targets again last month.

Ethereum saw 15 attacks and 57.7% of all losses across chains.

BNB suffered six attacks, representing 23.1% of total losses.

Arbitrum recorded two incidents, while Optimism, Polygon, and Solana witnessed one incident each.

Source: Immunefi## YTD Decrease

Overall, so far this year, the total losses year-to-date (YTD) come up to $401,326,044.

This is a decrease of 25% when compared to the same period last year, which recorded $536.1 million.

Also, there was a notable decrease in April 2024 compared to the month prior.

March 2024 recorded $133,235,200, falling to $53 million in April.

Meanwhile, the team said that Immunefi offers over $157 million in bounty rewards.

So far, it has paid out more than $95 million in bounties and saved $25 billion in user funds.

Follow Us on Google News

Original author: Gwen

Source: Youbi Capital

TL; DR

• Since the end of March, gold has depeged from the US dollar, and both have pumped. Mainly due to the recent long of non-US geopolitical emergencies, uncertainties have led to a rapid rise of global risk aversion, and gold and the US dollar have shown safe-haven attributes at the same time.
• Central Bank led by China began to sell US bonds to boost gold, suggesting a local trend against dollar hegemony and uncertainty in demand for long-end US bonds. As other sovereigns have earlier expectations of interest rate cuts, such as Europe and Switzerland, if inflation remains high, the strengthening of the US dollar will continue.
• In the short term, the Treasury TGA balance rising more than expected in April due to the Fed's expectations of slowing balance sheet reduction in the middle of the year, which will partially hedge the liquidity shock of Treasury bond issuance. Attention should be paid to the ratio of the amount of bonds issued by the Ministry of Finance to the ratio of short-term and long-term bonds.
• However, in the medium to long term, the U.S. debt crisis has not been resolved, the current U.S. government fiscal deficit rate soars, the suspension of the cap bill will end in January next year, the market is expected to maintain the same demand for bond issuance this year as last year, when the reverse repo is close to zero, the TGA account balance becomes a key indicator, and the bank reserve ratio should be vigilant.
• In the first 2 months of the election, due to uncertainty about votes and specific policies, risk assets have historically shown volatility and fallen. To maintain its independence, the Fed will rise as much as possible in an election year and keep the market liquidity abundant.
• The U.S. economy is showing strong domestic demand, inflation is repeating, and recession expectations have fallen sharply from last year. Institutional expectations for "precautionary" interest rate cuts have been collectively adjusted to the second half of the year or even after the year. According to the CME data, market expectations for rate cuts in September and November are the highest ~ 45%, while expectations for the first rate cuts in December and January are gradually increasing. Combined with historical Intrerest Rate policy performance in election years, Intrerest Rate policy before election months (i.e., September) is generally more cautious. In addition, the sufficient conditions for interest rate cuts are employment gaps and weak inflation, and it is necessary to be vigilant about the tightening of financial markets.
• Balance sheet expansion can directly affect market Liquidity more than interest rate cuts, and the Fed has considered slowing down its balance sheet reduction ahead of schedule, by slowing down the reduction of U.S. bonds, the market is widely expected to slow down the balance sheet reduction in May or June to Hedging Liquidity tightening, completely stop shrinking the balance sheet at the beginning of next year, and then usher in the balance sheet expansion cycle. At the same time, history shows that there is a high probability of a pivot in the short term after the election.

First, gold and the dollar "depeg"

Figure 1: U.S. dollar vs. gold price chart

In the past, international gold price movements were usually negatively correlated with the dollar index, but since the end of March, gold and the dollar index have pumped in an abnormal same trend. Negative correlation can be explained from three attributes of gold, namely commodity attributes, coin attributes and hedging attributes, which need to be discussed together.

• Commodity pricing: A stronger priced coin will drop the price of the priced item gold (the same goes for commodities)
• Financial attributes: Gold is a substitute for the US dollar and a potential substitute for the decline in the credit of the US dollar. When the dollar is weak, investing in gold may be able to achieve higher returns;
• Safe-haven attributes: Usually a stronger dollar indicates strong economic fundamentals, so the demand for safe-haven assets falls. However, the US dollar, as the world's coin, also has safe-haven properties. Specific risks need to be discussed on a case-by-case basis.

1.1 Gold big pump

The recent pump of the gold price anomaly has attracted a lot of attention, and there are 2 main reasons for this.

1. Market risk aversion triggered by geopolitical wars. Moscow's shorts attack, Israel's shorts attack on the Iranian embassy in Syria (the direct trigger), Iran's direct attack on Israel itself, etc., have all made the world begin to increase the demand for gold purchases, which is one of the drivers of higher gold prices in the short term.

2. Central banks continue to buy gold, enhancing demand. In order to avoid the risk of U.S. bonds, some Central Bank began to reduce their holdings of U.S. bonds and increase their holdings of gold, thereby pushing up gold prices, which also reflects a Crisis of Confidence in the U.S. dollar, which may evolve into de-dollarization in the future. For example, China's Central Bank gold reserves increased by 10t in January, adding gold for the 15th consecutive month, and now total gold reserves stand at 2, 245t, almost 300t rise from when the increase was announced again at the end of October 2022.

Figure 2: Global Central Bank Gold Buying Trends

1.2 The U.S. dollar index pumped

1. Domestic demand in the U.S. economy has been solid, delaying interest rate cut expectations. The economic data of the United States in Q4 '23 shows that the current economy has a certain degree of resilience, and in Q1 '24, it shows that the current supply in the United States is in short supply and needs to rely on overseas import supply. And the repeated inflation data has dropped the need for interest rate cuts, and the need to maintain a tight monetary policy to stabilize the dollar has pumped the dollar.

2. The US dollar passively pumped under the influence of international Exchange Rates, such as Switzerland's unexpected early interest rate cut. If other coin Spot coin easing policies, interest rate differentials will cause the dollar to Exchange Rate rise relative to other countries, which in turn will push the dollar index higher.

3. As the world's coin, the US dollar undertakes part of the hedging demand. When the geopolitical crisis does not involve the US mainland, the safe-haven nature of the US dollar will be partially revealed, and at this time, it will have the same effect as gold.

1.3 Why both are strong

Reason 1: Both the US dollar and gold have the attributes of safe-haven assets, and when sudden risk events occur in a concentrated manner, resulting in a worsening geopolitical crisis or economic crisis, the market risk aversion is too strong, and a situation of both strength will be formed. At the same time, gold's commodity and financial attributes have less influence than safe-haven attributes. For the dollar, the U.S. maintains a tight monetary policy, while weaker coins in other economies supports the dollar. Similar situations have occurred in history, such as the failure of US foreign intervention in 1993, the European sovereign debt crisis in 2009, and the instability of the Middle East.

Reason 2: Although the US dollar has shown a short-term strengthening trend, the behavior of some Central Bank to reduce US bonds and increase their holdings of gold also implies resistance to the hegemony of the US dollar, and there is a local trend of de-dollarization, and we should be vigilant against the US dollar credit crisis.

From the perspective of gold trends, the trend of gold in the short term mainly depends on whether Iran will retaliate against Israel on a large scale, and if the geopolitical situation continues to deteriorate, then gold may continue to pump. Judging from the trend of the US dollar index, some other sovereign coins are currently expected to cut interest rates earlier, such as the euro and the British pound, while the Swiss Central Bank has cut interest rates earlier. The U.S. dollar still has interest rate differentials short and may still have some support power in the future.

Second, there is uncertainty of liquidity risk

2.1 Market Liquidity is blocked

Liquidity in financial markets is an important indicator for us to judge future market trends. The small Bull Market at the beginning of the year was also due to the Liquidity of traditional funds brought in by the passage of BTC ETF and the dovish speech of the Federal Reserve, which led to Liquidity short-term rise, and finally the pullback due to the lack of Liquidity in the overall financial market.

Financial markets often measure market Liquidity by the real Liquidity indicator = Fed liability size - TGA - reverse repo = deposits from financial institutions + coins in circulation + other liabilities. For example, in the figure, we can find that the previous cycle of BTC is positively correlated with the financial liquidity indicator, and even has a tendency to fit. Therefore, in an environment of abundant liquidity, the market's risk appetite will be enhanced, especially in the encryption market, the impact of liquidity will be amplified.

Figure 3: BTC vs. Financial Liquidity Indicator

The recent decline in the scale of reverse repo is mainly used to offset the decline in liquidity caused by the additional issuance of U.S. bonds and the Fed's balance sheet reduction, and the liquidity release in March was also mainly contributed by the reverse repo release. However, the scale of reverse repo continues to decline, and the Fed is currently maintaining a monthly balance sheet reduction of 95 billion. At the same time, in response to the Arbitrage short caused by low Intrerest Rate, the BTFP Intrerest Rate has been adjusted to no less than the reserve Intrerest Rate from January 25. After the Arbitrage short narrowed, the use of BTFP turned back and could not further increase the size of the Fed's balance sheet. In addition, with the current tax season in April, the short-term increase in TGA account has drop overall market Liquidity, with the median TGA account rise 59.1% month-on-month since 2010 and will gradually return to normal over time.

Figure 4: Liquidity in U.S. financial markets

In summary, in the short term, the TGA rise exceeded expectations at the end of the tax season in May, and the agency predicted that the Fed will start easing QT progress in the middle of the year to ease the Liquidity tightening trend. However, in the medium and long term, the market lacks Liquidity new rise momentum, and the U.S. financial Liquidity continues to decline due to the Fed's balance sheet reduction process and the scale of reverse repo is close to exhaustion, which will further affect risk assets, and Japan's Central Bank monetary policy adjustment will increase the uncertainty of Liquidity risks, which will bring certain downside risks to technology stocks, encryption assets and even commodities and gold.

2.2 U.S. Treasury risk

Volatility in U.S. bonds was an important trigger in the March 2020 "three kills of stocks and bonds", and the recent surge in U.S. bond yields has once again exposed the underlying problem of supply and demand imbalance in the U.S. bond market.

2.2.1 Supply over-issuance

The deficit ratio reached -38% in 2023, pump 10% year-on-year, and the soaring high deficit rate means that the demand for additional US debt issuance will be maintained this year. The fiscal situation of high debt and high deficits caused by the pandemic has been combined with the interest rate hike cycle, and the weighted average Intrerest Rate on total outstanding debt in fiscal 2023 is 2.97%, which continues to increase the total amount of interest to be repaid in the United States. In 2023, 2.64 trillion new U.S. bonds will be added, and 0.59 trillion new U.S. bonds will be added in 2024, bringing the current total to 34.58 trillion.

In the short term, the refinancing expectations given by the Ministry of Finance on April 29 show a trend of additional issuance, and it is necessary to track the quarterly refinancing plan officially announced by the Ministry of Finance. Yellen may drop financing expectations, despite forecasts from institutions represented by Nomura generally believing that due to the unexpected increase in the Treasury's tax revenue in April due to the unexpected long increase in the Treasury's tax revenue in April due to the pump in wage levels last year, the current Treasury Department TGA account increased sharply, long $205 billion than expected.

In the medium and long term, the market generally expects that the United States will have 2-2.5 trillion yuan of bond issuance this year, and then 1.41-1.91 trillion will be issued this year, which is close to the average speed of Q1 in 24. In order to prevent a repeat of the U.S. debt crisis, the Treasury Department has an incentive to issuance sufficient U.S. debt to ensure short-term government spending and normal operations after the moratorium is ended. Wall Street expects the U.S. government to continue massive bond issuance regardless of who wins the presidential election in November.

Figure 5: The scale of US bond issuance

2.2.2 Weak Demand

Foreign investors and the Federal Reserve are the largest buyers of U.S. Treasuries, accounting for half of the market share of tradable Treasuries. Although the Fed is currently considering slowing down its balance sheet reduction, both have stopped increasing their holdings of U.S. Treasuries for a long time since 2022, and the supply pressure has been passed on to domestic investors, and the amount of investment purchased by the residential sector has expanded significantly. Domestic investors are more inclined to short-term debt, and the amount of commitment is limited and Fluctuation is high. The current issuance of short-term bonds has exceeded the ideal range, with the Treasury short-term bills accounting for 53.8% since the suspension of the debt ceiling in June 2023 (85.9% in Nov '23), and the Treasury Borrowing Advisory Committee recommends that the proportion of short-term bonds should remain at 15-20%.

<长债买主>

The Fed's balance sheet reduction process is continuing, and a total of 1016 B has been reduced since Q1-23 Q4, which may slow down the balance sheet reduction process in the short term but will not suddenly turn around. According to the March FOMC meeting, the FOMC unanimously agreed to halving the monthly balance sheet reduction, leaving the MBS reduction ceiling unchanged, and reducing the US Treasury tapering. If the Fed slows down the balance sheet reduction process as expected in the near future, it will hedge some long-term bond demand.

Japan, China and the United Kingdom are the top three permanent buyers, with more than one-third of foreign investors holding U.S. bonds. Major foreign investor demand picked up at the end of '23, but has recently shown a downward trend again, especially with China selling another $20 billion in debt in the first two months of '24.

• Several major economic players are expected to cut interest rates in June due to changes in local monetary policy and the current US dollar index, the Central Bank in Europe is expected to cut interest rates in June, and the yen Exchange Rate depreciated sharply again and has not reversed the trend for the time being, and when the yen fall broke the 150 mark in October 2023, the coin authorities chose to sell US bonds to maintain the stability of their sovereign coin Exchange Rate;
• Recent US inflation has been repeated, and some central banks represented by China have dropped US bonds to increase their holdings of gold, indicating that they are de-dollarizing and reducing the risk of asset depreciation.
• The uncertainty of the geopolitical crisis also affects the demand for U.S. bonds.

As a result, if the Fed slows down its balance sheet reduction ahead of schedule, the dollar will begin to weaken or geopolitical easing, or the demand for some long-end Treasury bonds may be restored.

<短债买主>

Household sector bond purchases are volatile, with individual investors and hedging funds alleviating the current supply-demand imbalance. However, domestic individual investors have a ceiling on purchases, and Hedging funds are sensitive to Intrerest Rates, vulnerable to market influences and have the possibility of a large number of sell-offs, so the future demand of the residential sector has a ceiling and instability.

The Liquidity buffer caused by larger short-term bonds comes from coin funds, coin which are characterized by flexible deposits and withdrawals, and the demand for overnight reverse repo or short-term treasury bonds with a maturity of six months is very small. At the same time, the floating loss of the assets of the coin fund is easy to trigger market bank run, so it tends to choose a more stable overnight reverse repo Intrerest Rate under more long circumstances coin Fluctuation.

Coin market funds have increased their holdings of short-term U.S. bonds by $203 billion after suspending the U.S. debt ceiling in Q2 2023. By shifting ON RRP to take on some of the demand for short-term Treasury bonds, the reverse repo size will fall again by 271 B in 2024, Morgan Stanley expects the reverse repo size to fall to zero in August, and the Fed will start tapering QT in June. However, it cannot be ruled out that the Fed will slow down its balance sheet reduction in advance and move the time point of the reverse repo scale to zero to Q4.

Figure 6: The size of the Fed's overnight reverse repo

In summary, there are many medium- and long-term factors on both the supply and demand sides that long lead to the imbalance between supply and demand. If the Fed starts planning to slow down the balance sheet reduction process in May, the dollar starts to weaken or geopolitics eases, there is a chance to alleviate the US debt crisis from the demand side of long-term bonds. However, the downward trend of reverse repo scale will not be reversed in the short term, and after the reverse repo regulation is close to zero, the TGA trend will become a key indicator for releasing liquidity, while being wary of changes in the reserve ratio of U.S. depository institutions.

III. Monetary policy trends

3.1 The impact of the U.S. election on risky assets

The most powerful effect of the US election on risk assets is the Unfavourable Information in the first two months (September-October) and the Favourable Information in the second month (December). The first two months are often risk-off due to uncertainty over the outcome of the election, and this is especially true in highly competitive years with low vote differences, such as 2000, 2004, 2016 and 2020. And after the election, the market tends to rebound as the uncertainty subsides. The influencing factors of an election year need to be judged in conjunction with other macro factors.

Figure 7: S&P 500 Index Direction Before and After Election Day, from JPMorgen

BofA analyst Stephen Suttmeier analyzed the average monthly returns of the S&P 500 in election years and found that the rise and strongest month of an election year was usually August, with an average pump of just over 3% and a 71% win rate. Then. At the same time, December is typically the month with the highest profit opportunities, with an 83% win rate.

Figure 8: Average annual election returns, from BofA analyst Stephen Suttmeier

In addition to the uncertainty of the outcome due to vote differences/partisanship disputes, there are also specific policy differences among candidates. Biden and Trump will remain the main candidates in 2024, and their economic policies have also diverged widely.

• Biden's re-election will basically maintain the status quo, continue to impose higher corporate taxes and ease the deficit, but the fundamentals are Unfavourable information for the stock market. At the same time, Biden retains greater independence for the Fed than Trump.
• Trump's advocacy of across-the-board tax cuts accompanied by higher infrastructure spending, during the last term, effective tax on corporate income fell significantly, while the deficit ratio rising rapidly, increasing the pressure on US debt. At the same time, the coordination of monetary policy and fiscal policy may increase, and the risk of inflation will persist for a long time, accelerating the erosion of dollar credit.

3.2 Fed rate cut expectations

Intrerest Rate normalization depends on economic fundamentals (such as rise, employment, and inflation) and financial conditions. As a result, much of the market's expectation of a Fed rate cut is a "precautionary" rate cut, which is judged by the strength of the US economy or the degree of recession, although this approach is often susceptible to the Fed's capricious expectations management.

So does the U.S. economy need to be prevented? Judging from the current GDP data, the economy is solid, the recession is unlikely, and the demand for precautionary interest rate cuts is postponed. US revised Q4 '23 seasonally adjusted real GDP at an annualized rate of 3.4% QoQ, up 0.2 percentage points from the previous one, and real personal consumption expenditures rise 3.3% QoQ, up 0.3 percentage points, consumption also continues to fuel the economic expansion, even the pre-revised GDP data is in an economic rise state (Q4 2022 GDP rise 2.9%). Although the GDP data for Q1 2024 has been revised down to 1.6%, the reason for the downward fall is mainly due to the high increase in imports and weakening inventories, indicating that the current domestic demand in the United States is still stable, and there is a market situation in which the internal economy is in short supply. As a result, major professional financial institutions have shifted their expectations for interest rate cuts, Goldman Sachs expects July, and Morgan Stanley also believes that after June, CICC predicts that the interest rate cut Node will be delayed to Q4.

Based on the latest pricing of CME Intrerest Rate futures, traders are now pricing in a 25 basis point cut in July to 28.6%, a 25 basis point cut in September to 43.8%, and a 25 basis point cut in November to 43.6%. As a result, market expectations for a rate cut in September and November are similar, but expectations for the first rate cut in December and January are rising.

Table 1: Distribution of CME interest rate cut expectations, as of April 29, 2024

However, the arrival of the rate cut window will undoubtedly require the non-farm payrolls gap and weak inflation data, that is, the economy will cool, or financial conditions will need to be tightened again. The uncertainty comes from the US election in November, first of all, the Fed changed the monetary policy before the election, which is suspected of affecting the election results, so the distribution of changes in federal funds Intrerest Rate in election years is smaller than in non-election years, and the decision to cut interest rates in September will be more cautious. At the same time, it is not ruled out that some Fed officials maintain a "dovish preference" in order to maintain rise and jobs, and support interest rate cuts when economic data is still resilient. Historically, however, the past 17 U.S. elections and U.S. monetary policy studies have shown that the Fed has a low probability of pivoting before the election (before November of the current year), and a relatively high probability of pivoting shortly after the election, with only 2 times switching from a rate hike to a rate cut within a year, and 4 times a federal funds Intrerest Rate or monetary policy pivot immediately after the November election month.

In summary, domestic demand in the U.S. economy is stable, inflation is repeated, financial institutions' interest rate cut forecasts are generally moved back to the second half of the year or even next year, CME data shows that interest rate cuts in September and November are expected to be the largest, but the probability of December and January is rising. However, it is still necessary to be wary that the sufficient condition for a rate cut is a poor economy, so there may still be a tightening of financial markets before a rate cut comes. At the same time, Intrerest Rate and monetary policy have historically been more cautious in the run-up to the election month (i.e., a rate cut in September), with a higher likelihood of a pivot in the short term after the election month.

3.3 Fed Balance Sheet Reduction Cycle

Expanding the balance sheet is more effective than cutting interest rates?

At present, the market's attention is long focused on the expectation of interest rate cuts, but in fact, the direct impact of the balance sheet expansion on market Liquidity is greater than that of interest rate cuts. The market Liquidity indicator mentioned above = Fed debt size - TGA - reverse repo size. Balance sheet expansion means that the Fed expands its balance sheet, purchases assets such as treasury bonds or mortgage-backed securities through liabilities to increase reserves in the banking system and coins in circulation, creating coins increments and directly expanding market liquidity, so it is also called "money printing". The interest rate cut is to drop enterprises and individuals to increase investment and consumption by reducing borrowing costs, and transfer funds to risk markets to improve liquidity.

When to change monetary policy?

Progress in balance sheet normalization depends on the supply and demand of reserves, according to the article "Scarce, Abundant, or Ample?" published in 2022 by New York Fed President Williams et al. A Time-Varying Model of the Reserve Demand Curve: "The reserve demand curve is non-linear, and adequacy is measured by the ratio of reserves to bank assets, with 12% ~ 13% being the critical point of overabundance and moderate adequacy, and 8% ~ 10% being the warning line of deficiency. "Financial market performance tends to be non-linear, and this is reflected in the market, with the reserve ratio falling rapidly to 8% after approaching 13% in 2018, falling back to 9.5% when the Fed announced a reduction in its balance sheet, and finally restarting its balance sheet expansion in October 2019.

Figure 10: Ratio of bank reserves to total assets of commercial banks

The current U.S. reserve ratio of 15% is still over-sufficient, and will continue to decline as the liquidity crunch reverse repo scale is depleted to zero. Goldman Sachs expects to start tapering QT in May and end in Q1 2025. Morgan Stanley believes that QT will be completely closed by early 2025 when the reverse repo size is close to zero. CICC predicts that the tipping point will be reached in Q3, and if the Fed cuts the pace early in May, the threshold can be postponed to Q4. At the same time, the Fed has historically tended to pivot coins in the short term after the U.S. election month ends.

In summary, the Fed has signaled that it is considering slowing down its balance sheet reduction, and the market generally predicts that it may slow down its balance sheet reduction in May or June, and that it will stop shrinking its balance sheet at the beginning of next year to end QT, and then usher in a balance sheet expansion cycle. The current risk uncertainty is still due to the increase in the supply of US bonds, and the near-zero scale of reverse repo has led to significant fluctuations in the US Treasury market. In particular, the stability of the economy is particularly important in an election year, and the Fed may stop shrinking its balance sheet early and bring forward its balance sheet expansion schedule in order to avoid a repeat of the 2019 "repo crisis" in the market.

Fourth, Summary

Gold and the U.S. dollar have both pumped recently, in addition to geopolitical factors, we should pay attention to the trend of some central banks selling U.S. bonds to increase their holdings of gold, suggesting local de-dollarization.

In the short term, as the increase in TGA balances and the Fed's easing of balance sheet reduction will partially hedge the liquidity crunch caused by US bond issuance, it is also necessary to keep an eye on the total amount of refinancing and the ratio of short-term and long-term debt in the second quarter. In the medium to long term, the imbalance between supply and demand of U.S. debt has not been cured. Due to the high deficit rate and the bill to stop suspending the cap next year, there will still be a large demand for US bond issuance in 2024. The reverse repo size will continue its downward trend, after which the trend of TGA balances and the non-linear decline in bank reserve ratios should be maintained.

Domestic demand in the U.S. economy is stable but inflation is repeated, and interest rate cut expectations are generally postponed until the end of the year. The expectation of stopping balance sheet reduction remains unchanged at the beginning of next year for the time being. Historically, monetary policy tends to remain vigilant before the U.S. election, and the probability of a pivot in the short term after the election is relatively high.

Link to original article

PANews reported on May 2 that according to SoSoValue data, the total net outflow of Bitcoin Spot ETF yesterday (May 1, Eastern time) was $564 million. Yesterday, the Grayscale ETF GBTC had a single-day net outflow of $167 million, and the current historical net outflow of GBTC is $17.470 billion.

As of press time, the total net asset value of Bitcoin Spot ETF was US$47.079 billion, the ETF net asset ratio (market capitalization compared with the proportion of the total market capitalization of Bitcoin) reached 4.17%, and the historical cumulative net inflow has reached US$11.217 billion.