gm 19/10

Summary
gm, Huobi founder Li Lin raised $1 billion to establish an ether treasury firm, securing commitments from major players including $500 million from HongShan Capital Group. Meanwhile, Stripe's blockchain project Tempo achieved a substantial milestone, raising $500 million at a $5 billion valuation to build a payments-focused blockchain, attracting prominent Ethereum researcher Dankrad Feist to its team. Amid recent market volatility that saw Bitcoin struggling below $107,000, a novel use case emerged as Babylon Labs developed a proof-of-concept allowing native Bitcoin to be used "trustlessly" as collateral in DeFi through a vault system without requiring custodians or bridges. In the tokenization space, gold-backed tokens surpassed $1 billion in daily trading volume, outpacing traditional ETFs during gold's price surge to over $4,300 per ounce, with Tether Gold accounting for 37% of the volume.

News Headlines
⚽ Swiss Regulator GESPA Files Complaint Against FIFA NFT Platform

• The Swiss Gambling Supervisory Authority has filed a complaint against FIFA Collect, claiming it operates as an unlicensed gambling provider since its competitions include elements of chance and require monetary stakes.
• This action highlights the regulatory uncertainties surrounding NFTs and their integration into existing legal frameworks, with GESPA previously scrutinizing FIFA's NFT offerings linked to 2026 World Cup ticket reservations.

💼 Your Company's Balance Sheet is Doomed Without Bitcoin

• Corporate treasuries now hold over $120 billion in Bitcoin as companies increasingly view it as a necessary asset to hedge against monetary debasement and enhance capital market strategies.
• Successful Bitcoin treasury operations can generate substantial shareholder value, though companies must maintain operational profitability alongside Bitcoin reserves to effectively navigate potential market downturns.

📊 Public Companies Hold $110B in Bitcoin with Various Profit Outcomes

• Public companies collectively hold 1,045,887 BTC valued at around $110 billion, with early adopters implementing disciplined Bitcoin strategies outperforming peers by an average of 286%.
• Strategy Inc. leads with 640,250 BTC and has seen stock surges of 2,000%, while others like Metaplanet experienced 78% declines despite substantial holdings, proving that operational strength is crucial beyond mere Bitcoin accumulation.

📉 Bitcoin, Ethereum and XRP Decline as Traders Consider End of 4-Year Cycle

• Bitcoin, Ethereum, and XRP have experienced notable price declines, with some traders adhering to the traditional four-year cycle that suggests a market downturn following Bitcoin's post-halving price rise.
• Analysts debate whether this cycle still applies given increased institutional adoption, with concerns that retail traders expecting price drops could exacerbate market volatility through their selling actions.

📱 YouTube Star MrBeast Files Trademark for Crypto Exchange and Payments Service

• MrBeast (James Donaldson) has filed a trademark application for MrBeast Financial, planning an app that would provide cryptocurrency exchange, payment processing, investment banking, and financial education services.
• To launch this platform, MrBeast would need to register as a Money Services Business with FinCEN and obtain various licenses, potentially representing a significant expansion into financial services by the most-subscribed individual YouTube creator.

Market Metrics

Fundraising & VC
No fundraising data today.

Regulatory
💰 US Government Seizes $15B in Bitcoin in Historic Forfeiture

• The US government has seized nearly 130,000 BTC valued at $15 billion in the largest cryptocurrency forfeiture action in history, potentially impacting discussions about a strategic bitcoin reserve.
• Experts caution that determining ownership and compensating victims could take years, with concerns about government handling of these substantial digital assets.

🏛️ DeFi Compliance Debated at DC Fintech Week

• Industry experts discussed whether decentralized finance can align with regulatory compliance, highlighting tensions between DeFi's core principles and regulatory requirements.
• The panel raised questions about developer liability for misuse of DeFi projects by criminals and debated whether compliance mechanisms could exist without compromising decentralization.

💼 UK Tax Authority Doubles Crypto Warning Letters

• HM Revenue & Customs has sent nearly 65,000 warning letters to crypto investors, more than double the previous year's total, amid concerns about underreporting of digital asset gains.
• The tax authority has gained access to transaction data from major crypto exchanges, enhancing its ability to monitor compliance in a sector where many traders don't realize that even swapping between coins may trigger capital gains tax.

⚖️ Tornado Cash Developer Questions DeFi Legal Risks

• Roman Storm, recently found guilty of operating an unlicensed money transmission business, questioned whether DeFi developers can be confident they won't face similar charges from the DOJ.
• A DOJ official clarified that merely writing code without malicious intent isn't a crime, though the case highlights the uncertain legal landscape for developers in the cryptocurrency space.

🔍 Ripple CLO Defends Crypto Against Criminal Narrative

• Ripple's Chief Legal Officer Stuart Alderoty criticized recent media narratives framing crypto primarily as a tool for crime, calling this perspective "lazy and inaccurate."
• He emphasized blockchain's transparency and traceability, noting that millions use crypto for practical purposes like sending money and proving ownership rather than illicit activities.

Technical Analysis
Bitcoin - Bitcoin is within an approximate horizontal trend channel in the short term. This indicates that investors are uncertain and waiting for signals of further direction. A break upwards will be a positive signal, while a break downwards will be a negative signal. The currency has marginally broken down through support at points 107600. An established break predicts a further decline. The volume balance is negative and weakens the currency in the short term. RSI below 30 shows that the momentum of the currency is strongly negative in the short term. Investor have steadily reduced the price to sell the currency, which indicates increasing pessimism and continued falling prices. However, particularly in big stocks, low RSI may be a sign that the stock is oversold and that there is a chance for a reaction upwards. The RSI curve shows a falling trend, which is an early signal of a possible trend reversal downwards for the price as well. The currency is overall assessed as technically negative for the short term.

Ethereum - Ethereum has broken down from an approximate horizontal trend channel in the short term. This signals a continued weak development, and the currency now meets resistance on possible reactions up towards the floor of the trend channel. The currency has support at points 3440 and resistance at points 4300. Negative volume balance indicates that sellers are aggressive while buyers are passive, and weakens the currency. The currency is overall assessed as technically negative for the short term.