Inching to the weekend

Good morning. Today we've got Altcoin Friday #10, the FBI cracking down on crypto crime, Circle teaching us the art of the deal, and more!

Programming note: we'll be off Monday for President's Day

Bonus Content Coming Soon: I'm close to having my notes out from Messari's Crypto Theses for 2022. I'll include a link to my notes in this newsletter, however, the full report is definitely worth a read. The report is now in podcast form and can be found here.

Market Update (as of 7:37am ET):

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Top 5:

1. Circle to double in value to with revamped SPAC deal. The USD stablecoin company has renegotiated their SPAC agreement with Concord Acquisition Corp. that previously valued the company at $4.5 billion. The new terms double that number and have Circle sitting at a $9 billion valuation (pending approval of the SPAC merger). The stablecoin market has exploded over the last year with the total market cap exceeding $160 billion. Circle's stablecoin (USDC) makes up almost a third of that total and is second only to Tether in total market cap. The company has expanded rapidly by offering API services, yield-generating products, and believes there is immense growth potential in the future.

SSS (sat-sized summary): One of the biggest stablecoin companies, Circle, doubled their valuation by renegotiating their agreement to go public via a SPAC merger. The new number values the company at $9 billion dollars and highlights the massive growth of stablecoins over the last year.

2. Sequoia Capital is raising up to $600M in new sub-fund to focus on tokens. The fifty-year-old venture capital has invested in crypto since 2015 and their India office recently led a $450 million private token sale in Polygon. However, founders have asked the firm to take a more active role in their crypto investments including staking, providing liquidity, participating in governance, and using portfolio companies' platforms to trade. This new sub-fund will be dedicated to taking that more active role.

From the Sequoia blog:

“Our goal with this fund is to participate more actively in protocols, better support token-only projects, and learn by doing ourselves."

SSS: Sequoia Capital will deploy up to $600 million in a new sub-fund that aims to take a more active role in the crypto ecosystems in which they have invested. Founders have asked Sequoia to get more involved in protocols by staking, providing liquidity, and supporting governance.

3. Altcoin Friday #10 - $1INCH, 1inch Network

Overview:
- Current price (as of this writing) of $1.67
- Market capitalization of $692.9 million (98th overall)
- The 1inch Network combines three separate protocols to offer decentralized exchange (DEX) aggregation and cost-efficient transactions
- The native tokem, $1INCH, serves two purposes:
1) Grants voting rights in the 1inch DAO
2) Acts as a utility token in the 1inch Liquidity Protocol

Three united protocols:
1) Aggregation Protocol V4:
- The 1inch Aggregation Protocol facilitates cost-efficient and secure swap transactions across multiple liquidity sources

2) Limit Order Protocol V2:
- The 1inch Limit Order Protocol facilitates flexible limit order swap opportunities in DeFi and leverages two order types, the regular Limit Order and the RFQ Order to achieve extremely flexibility and gas efficiency respectively

3) Liquidity Protocol:
- An automated market maker (AMM) protocol that facilitates decentralized token swaps without the need for an order book

Value Prop:
- Traders can optimize access to hundreds of DEXes using a single platform and get access to the best rates across that population
- Flexible order functionality provides traders with more nuanced control of their orders
- Opportunity for liquidity providers to earn passive income and collect rewards

Note: Additional research from Messari can be found here, while the 1INCH docs can be found here

4. FBI doubles down on crypto crimes with new unit. On Thursday the Justice Department announced the creation of a new unit focused on "digital asset seizure and blockchain-based lawbreaking." The National Cryptocurrency Enforcement Team, or NCET as the group will be known, is being tasked with identifying and pursuing cases involving the criminal use of digital assets. The NCET announcement comes on the heels of the Justice Department's largest ever seizure of financial assets in which they recovered more than $3.6 billion in bitcoin stolen during a 2016 hack of crypto exchange Bitfinex.

SSS: Crypto may not be the wild wild west much longer. Regulation is certainly coming and federal law enforcement agencies are creating specific divisions to fight crypto crime. There's good and bad that comes with regulation and policing, but the challenge will be finding the middle ground that allows the industry to continue grow, but also punishes bad actors.

5. Have a good weekend!

Updates and other stories:
- DeFi project Ref Finance closes $4.8M round led by Jump Crypto...Read More
- China casts shadow over Hong Kong's once-vibrant crypto industry...Read More
- El Salvador’s president calls US senators ‘Boomers’ over Bitcoin bill...Read More

Weekend Read:
How the 'Big Short DAO' Bet Against the Crypto Market and Won - the story of @GiganticRebirth's crypto markets short call

Top Sharers of the Crypto Top 5:
1. Donna Y. - Nashville, TN
2. Jake Y. - Greenville, SC
3. Forrest H. - Evansville, IN

External Resources:
1. Cryptopedia from Gemini - if you see a word, acronym, or phrase in this newsletter that you don't understand, there's a good chance you can find an explanation here
2. Crypto Explainer+ - intro level courses on Bitcoin, Ethereum, decentralized finance, NFTs, and more
3. Crypto Jobs! - looking for a new job? Check out this page from Anthony Pompliano with hundreds, if not thousands of listings

Disclaimer: The information contained in this newsletter shall not be understood or construed as financial advice. I am not an attorney, accountant, or financial advisor, nor am I holding myself out to be, and the information provided is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation.