The Goldilocks Scenario 🔐
Where does the Donald Trump factor take the US Bitcoin miners. US SEC Commissioner Hester Peirce tells crypto: ‘I’m not your mom’. Mt. Gox sell-off begins. Tokenised US Treasuries to $3B by 2024 end?
Hello, y'all. What the punk? 📺
Have you played the 👉 Music Nerd 🎵 quiz game yet?
This is The Token Dispatch 🙌 find all about us here 🤟
With crypto right in the middle of political storm, the waves are difficult to miss.
If Donald Trump was alone, now he has got a pro-crypto wingman in J.D. Vance.
Read: Trump Picks VP ✅
There is just so much action. We trying our best to keep pace 🏃♀️
The Goldilocks scenario
A new report from investment bank Bernstein suggests that a "Goldilocks" scenario for Bitcoin miners could emerge if former US President Donald Trump is elected in 2024.
What’s that? Ask Google, and this 👇
The Goldilocks scenario refers to an economic state where all conditions are “just right,” neither too extreme nor too moderate.
They predict a favourable regulatory environment under Trump.
Reduced environmental pressures due to Trump's pro-business policies
Continued demand for Bitcoin
Potential for increased profitability and investment in the sector
What if? Yes, the uncertainties.
Trump's victory is not guaranteed
Long-term impact of a Trump presidency on the crypto industry is uncertain
Regulatory clarity is crucial for the industry's growth and sustainability
Want an explanation? Goldilocks Economy: Definition and What Makes It Work
Bitcoin mining stocks outpacing Bitcoin production
JPMorgan analysed 14 publicly traded Bitcoin miners stocks for their hash rate, BTC production, and dominance over the mining landscape.
Conclusion? Mining stocks are trading at remarkably high valuations compared to the value of the Bitcoin they have left to mine.
Read: Will AI Push Bitcoin Higher? ⏫
Miner market cap jumped 29% in 2 weeks ($6.4 billion, from June 30th to $28.3 billion as of July 15th), outperforming Bitcoin price.
Public miners increased hash rate dominance at a record 157 EH/s, or about 26.6% of the global network hash rate.
Miner market cap is 131% of remaining Bitcoin value, the average ratio of miner market cap to remaining BTC has been 78% since January 2022.
Mining profitability remains low, down over 50% from pre-halving levels
Bitten by Trump
There is no stopping Trump now, or so it seems - Bloomberg interview unpacked.
First, the crypto song - The crypto industry is good for the country, and that the US should take the lead in the global crypto race before China or any other country. Also, the US crypto industry has a “good foundation” despite still being in its infancy, and that he has gotten to know “top-flight” industry people.
“It’s a baby. It’s an infant right now. But I don’t want to be responsible for allowing another country to take over this sphere. If I throw it aside, it’s going to be picked up in another country, most likely China — they’re pretty advanced in that sphere … So you have to look at it — what I want, again, is what is good for the country.”
Lot of good for crypto in there. Good.
He has already chalked out what to do if he wins.
Allow Jerome Powell to complete his term as Fed chairman until May 2026.
The Fed should avoid cutting interest rates before the November election.
Considering JPMorgan Chase CEO Jamie Dimon as Treasury Secretary.
The corporate tax rate is reduced to 15%.
No plans to ban TikTok.
Oh wait, he throws in them NFTs too. He plans on his 4th release.
“I did it three times [and] I’m going to do another one because the people want me to do another one.”
Republicans push pro-crypto agenda.
Experts believe the Republican party's pro-crypto stance is driven by a desire to appeal to younger, tech-savvy voters and position the US as a global leader in the crypto space.
Cato Institute Director of Financial Regulation Studies Jennifer Schulp told Decrypt.
“How campaign promises get translated into action is always a little hard to predict, but the Biden administration has really been so hostile in so many different ways that a Republican administration doesn't have to do that much to look more crypto friendly.
I think we see a lot of signs that the Republican Party is supportive of a different regulatory regime for crypto than what the Biden administration has put forward.”
Competitive Enterprise Institute Director of Finance Policy John Berlau.
“Politicians listen to their constituents, and that’s the way it should work. Their constituents are getting younger and more into crypto.”
Even the hardcore crypto Democrats are turning a corner?
a16z co-founder Marc Andreessen said he has been a Democrat for most of his life, but will support Trump in the 2024 presidential campaign.
“It’s a flat-out blanket endorsement of the entire space. We think Donald Trump is actually the right choice.
Sorry mum, I know you’re going to be mad at me for this, but we had to do it.
They’ve sued, I think, over 30 of our companies.
The future of our business, the future of technology, new technology and the future of America is literally at stake.
We will end the unlawful and un-American crypto crackdown.
Watch: The Little Tech Agenda: Biden vs. Trump
Block That Quote 🎙️
US Securities and Exchange Commissioner (SEC) Hester Peirce
“I’m not your mom.”
Peirce told DL News in an interview last week.
“I think it’s funny, but at the same time, I do take a little bit of an issue with the term ‘mom’.”
TLDR; The Interview
Acknowledges possibility of becoming SEC chair if Trump wins 2024 election.
Calls for collaboration between SEC and CFTC in crypto regulation.
Expresses concerns about SEC's "regulation by enforcement" approach, citing cases against LBRY and Stoner Cats.
Believes crypto ETFs should be treated the same as other ETFs, criticises SEC's lengthy back-and-forth with issuers.
Cautions that SEC approval doesn't mean a crypto product is safe, and investors should make their own choices.
Read: SEC Commissioner Hester Peirce Defends Crypto Innovation, Criticises "Regulation by Enforcement"
Sell-off Updates: Time for Mt. Gox
It is finally upon us - the Mt. Gox repayment.
Announcement: Mt Gox trustee Nobuaki Kobayashi announced that on July 16, 2024, BTC and BCH were repaid to some creditors through designated cryptocurrency trading platforms.
Movement: On July 16, Mt. Gox trustee moved $2.8 billion worth of Bitcoin into one of its cold wallets, according to data (Mt. Gox wallet) from blockchain analytics platform Arkham Intelligence.
Repayment: Users reported receiving emails from Kraken Exchange, which stated that it had successfully received creditor funds (BTC and BCH) from the Mt Gox trustee. Kraken expected that it will take 7-14 days for the funds to be deposited into the user's account.
Accumulation: CryptoQuant CEO Ki Young Ju says Bitcoin is still vulnerable to “speculative FUDs,” giving smart money a way to buy up cheap Bitcoin. Bitcoin whales set to stack more amid ‘overestimated’ Mt. Gox sell-off.
German Update: Law enforcement have made it official.
The emergency sale of nearly 50,000 Bitcoin is over and netted the agencies an "unprecedented" $2.88 billion. The prosecutors office said that the Bitcoin price and market conditions were irrelevant in its decision, the goal was to carry out the sale "as quickly as possible."
In The Numbers 🔢
$3 billion
Estimated value tokenised US Treasuries set to reach by end of 2024.
Current value is around $1.8 billion mark.
According to Tom Wan, a research strategist at 21.co - it is possible due to the growing trend of decentralised autonomous organisations (DAO) increasingly diversifying their holding into tokenised US Treasuries.
Tokenisation: Multi-trillion dollar opportunity
According to a report by the Global Financial Markets Association (GFMA) and Boston Consulting Group, the global value of tokenised illiquid assets could reach an estimated $16 trillion by 2030.
Citigroup analysts predict that another $4 trillion to $5 trillion worth of tokenised digital securities will be minted by the same year.
Read: RWA Flavour🌻
Satoshi Shame, US Senator and Chinese Tycoon
Craig Wright has been forced to update his personal website with a legal statement declaring he is not the inventor of Bitcoin.
The statement is part of a UK court order following a ruling in May that Wright is not Satoshi Nakamoto.
The court declared
Not the author of the Bitcoin white paper.
Did not adopt or use the pseudonym Satoshi Nakamoto between 2008 and 2011.
Claims were extensive and repeated lies.
Forged documents to support his claims.
The court has referred Wright to the Crown Prosecution Service for potential perjury and document forgery charges.
US Senator Convicted of Bribery After Criticising Bitcoin
Democratic Senator Bob Menendez of New Jersey has been convicted of accepting bribes, including gold bars and a luxury car.
He once alleged that Bitcoin "is an ideal choice for criminals."
Marks the first time a sitting US Congressman has been convicted of acting as a foreign agent.
US Attorney stated that "this wasn't politics as usual; this was politics for profit."
Menendez faces decades in prison at his sentencing on October 29, 2024.
Chinese Tycoon Convicted in US of $1 Billion Fraud Scheme
Guo Wengui orchestrated a complex scheme involving the sale of fraudulent financial instruments, including bonds and securities
He fled China in 2014, claiming political persecution, but continued his fraudulent activities in the US.
Conviction marks a significant victory for US authorities, and he faces significant prison time and fines.
Prosecution will continue to pursue Guo's assets and any remaining co-conspirators involved in the fraud
The Surfer 🏄
FTX has agreed to a $12.7 billion settlement with the US Commodity Futures Trading Commission (CFTC) to resolve a 19-month lawsuit over the exchange's collapse. The settlement includes $8.7 billion in restitution and $4 billion in disgorgement fees, pending court approval.
Kraken has partnered with English Premier League club Tottenham Hotspur as their official Web3 Partner and official sleeve partner for the 2024/2025 season. The crypto exchange has also teamed up with Atletico de Madrid in Spain’s La Liga.
Arthur Hayes' Maelstrom launches Bitcoin developer grant program. Applications to be submitted before August 25, the grant period is 12 months. Each developer will receive a grant of $50k to $150k with a cap of $250k per year.
If you like us, if you don't like us .. either ways do tell us✌️
If you dig what we do, show us love on Twitter and Instagram🤞
So long. OKAY? ✋