Crypto Monday: Weekly market prep

1. Advisor Market hype fuels surge in altcoins linked to Trump's appointments

Ahead of Donald Trump's inauguration, several altcoins linked to Trump's nominees saw significant price surges. New appointees, such as David Sacks in the AI and crypto sectors, triggered hype. Projects previously backed by his venture capital firm such as dYdX (DYDX) and Handshake (HNS), saw gains of 37.11% and 137.10%, respectively. Additionally, AI-related tokens such as MASA, WLD, and XAI have experienced broad rallies. On December 5, Trump's announcement of Paul Atkins as the SEC chair led to a 30% spike in Reserve Rights (RSR), a project Atkins had advised. 

This phenomenon reflects growing market speculation, where the affiliations of new appointees could lead to short-term altcoin rallies, driven by both hype and meme-driven trading.

2. ME Foundation announces TGE for ME token on December 10

The ME Foundation has announced that the ME token will undergo its Token Generation Event (TGE) on December 10.

Magic Eden is a cross-chain NFT marketplace led by a Chinese team. It has completed three rounds of funding, raising a total of $149.4 million from investors such as Electric Capital, Greylock, Paradigm, and Coinbase Ventures. The most recent funding round, Series B, closed on June 21, 2022, with a valuation of $1.6 billion and raised $130 million, led by Electric Capital and Greylock.

On November 22, Magic Eden's official foundation announced that the ME token has begun pre-listing trading on several major platforms, including Coinbase Global, OKX, Bybit, Bitget, Gate, Mexc, and Kucoin.

According to the pre-listing price of $4.00 per ME token (as reported by Whales Market), the Fully Diluted Valuation (FDV) is calculated as follows:

• FDV: 1 billion tokens × $4.00 = $4 billion, which is 2.5 times the valuation from the last funding round.
• Market Cap: 1 billion tokens × $4.00 × 12.5% circulating supply = $500 million. Compared to Blur’s market cap of $853 million, Magic Eden's price has room for further growth.

The ME token’s total supply is capped at 1 billion, with distribution planned over four years.

3. Hong Kong’s stablecoin bill published, set for first reading in the legislative council on December 18

Hong Kong has published the Stablecoin Bill in the government gazette, aiming to introduce a regulatory framework for fiat-backed stablecoin issuers. The bill is designed to enhance the regulatory oversight of virtual asset activities, addressing potential risks to financial stability posed by fiat-pegged stablecoins. It seeks to ensure user protection while leveraging the benefits of virtual assets and related technologies.

Under the proposed licensing regime, any entity engaging in the following activities will be required to obtain a license from the Financial Secretary:

• Issuing fiat-backed stablecoins in Hong Kong as part of their business operations.
• Issuing fiat-pegged stablecoins that claim to be anchored to the Hong Kong dollar.
• Actively promoting the issuance of fiat-backed stablecoins to the public in Hong Kong.

To enforce the system effectively, the bill grants the Financial Secretary the necessary regulatory, investigative, and enforcement powers. The bill is scheduled for its first reading in the Legislative Council on December 18.

4. Russian President Vladimir Putin considers cryptocurrencies as potential settlement method for BRICS Investment Platform

Russian President Vladimir Putin has expressed interest in utilizing cryptocurrencies as a potential settlement method for the BRICS investment platform. He announced that the construction of the platform is already underway, and crypto assets may play a role in its settlement infrastructure.

5. Bitcoin mining company IREN to raise $400 million through convertible bonds

Sydney-based Bitcoin mining company IREN has announced plans to raise $400 million through the issuance of convertible bonds, with a coupon rate of 3.25% and a 30% conversion premium. This new issuance increases the amount from its previously announced $300 million in bonds. The bonds are scheduled for settlement on December 6, 2024, subject to customary closing conditions.

6. South Korean president declares emergency martial law

On December 3, South Korean President Yoon Suk-yeol declared "emergency martial law" in a televised address, citing political unrest caused by opposition parties and the need to remove "anti-state forces." Following the announcement, opposition leader Lee Jae-myung urged citizens to protect the National Assembly, even declaring that Yoon was no longer president. This led to blocked access to the Assembly and clashes between protesters and police. The National Assembly held an emergency session and voted to revoke the martial law, which was lifted by President Yoon early on December 4.

The martial law announcement led to a market sell-off in South Korea, impacting the crypto industry and causing delays in blockchain-related legislation. Diversifying exposure to multiple markets and avoiding over-reliance on any single country's regulatory environment could be important to mitigate political and market risks.

7. Hashed founder highlights the strong XRP community in South Korea

Ryan Kim, founder of crypto investment firm Hashed, took to social media to claim that Ripple Labs used a "Ponzi scheme" strategy to sell XRP in South Korea via its "Ripple Market Korea" project in 2014, attracting a large number of investors. These early participants likely saw significant returns, helping to establish a strong XRP community in Korea. Kim explained that Ripple promoted XRP's exchangeability with local currencies, its backing by Google Ventures, and its regulatory compliance in the U.S. as major selling points.

Ripple, created by Ripple Labs, is a distributed ledger-based global payment network with a market cap of $129.5B and a 24-hour trading volume of $15B. In December 2020, Ripple Labs was sued by the US SEC for issuing over $1 billion in unregistered securities. With Gary Gensler's departure from the SEC looming, XRP is expected to benefit from a potential regulatory shift under the incoming Trump administration, contributing to its recent price surge 

(further details https://x.com/WOOXResearch/status/1864978938281496674 ).

NFA

Disclaimer

The information provided in this article is for general informational purposes only and does not constitute financial, investment, legal, or professional advice of any kind. While we have made every effort to ensure that the information contained herein is accurate and up-to-date, we make no guarantees as to its completeness or accuracy. The content is based on information available during writing and may be subject to change.

Please note that this article includes references to third-party websites and data during provided solely for convenience and informational purposes. We do not endorse or assume any responsibility for the content, accuracy, or reliability of any information, products, or services offered by third parties.

Cryptocurrencies involve significant risk and are NOT suitable for the majority of investors. The value of digital currencies can be extremely volatile, and you should carefully consider your investment objectives, level of experience, and risk appetite before participating in any staking or investment activities.

We strongly recommend that you seek independent advice from a qualified professional before making any investment or financial decisions related to cryptocurrencies. We shall in NO case be liable for any loss or damage arising directly or indirectly from the use of or reliance on the information contained in this article.