1. Summary of Industry Dynamics
Last week, the crypto market was still in a narrow range of fluctuations with shrinking volume. Whether it was the rise of each share on Tuesday or the plunge on Wednesday, the crypto market was basically unmoved. Unlike the previous Nasdaq volatility amplifier, the current crypto market has the performance of a Nasdaq volatility reducer. The shrinking trading volume is one of the most obvious phenomena in the market recently. Not only the spot trading volume of mainstream currencies such as Bitcoin and Ethereum has shrunk seriously, but some star tokens such as IMX, MINA, and MANA last year and even at the beginning of this year currently have only about 5 million daily trading volumes. As of writing, Bitcoin closed at 17085.05, down 0.12% on the week, with an amplitude of 4.36%; Ethereum fell 1.28% on the week, with an amplitude of 6.81%. Last week, the overall crypto market lacked hot spots, and no outstanding performance was seen in each sector. The first and foremost event to be affected is the FTX incident. Amber, once the leader in centralized asset management, was rumored to have laid off hundreds of employees and vacated its mainland office last week. Affected by the FTX incident, Amber has nearly 60 million US dollars in assets on the FTX platform that cannot be withdrawn. Although Amber's CEO stated that current user funds are normal and the withdrawal function is still available, combined with the recent failed financing incident and layoffs, Amber's future is also quite unclear.
In addition, last Thursday, the Korean exchange Upbit issued an announcement stating that due to the depegging of the algorithmic stablecoin USDN in the Waves ecosystem, its collateral WAVES has been listed as a risky currency by the local digital association. JZL once published an article titled "WAVES and USDN Slowly Going to Death" in the middle of the year, predicting the end of the depegging of this LUNA-like algorithmic stablecoin. Currently, USDN has reached 0.7104, and its collateral WAVES has also fallen to 1.74. Coincidentally, another algorithmic stablecoin USDD was also almost depegging last week, with the lowest reaching 0.97, but unlike WAVES, USDD is backed by Sun Yuchen and TRON's strong control, and most of the circulating currency is in the hands of the project party and whitelisted customers, which is highly controllable. It has returned to around 0.982 this week. Similarly, the outflow of stablecoins from centralized exchanges is still very serious. On Tuesday, Binance Exchange reported a net withdrawal of US$1.14 billion in 24 hours, which also generated a lot of FUD sentiment in the market, and even rumors that Binance was facing a crash. In response to this kind of turmoil, CZ also calmly stated that fud has a positive effect on the market, and said that it is a good idea to conduct such "stress withdrawal tests" on each CEX in turn, expressing his confidence in Binance's asset reserves. Although there is no risk of collapse of the exchange, the continuous outflow of stablecoins is still a huge blow to the market. At present, we can only hope that the improvement of the macro market will bring positive effects to the crypto market.
On the other hand, the US stock market opened lower last Friday due to the PPI exceeding expectations, and fell rapidly in the late trading. The decline throughout the day was not large but extremely intimidating. The main fear is that two major uncertain events will occur this week. One is the CPI released on Tuesday, US time, which is also the first day of the Federal Reserve's interest rate meeting. The interest rate meeting will end on the 14th and the resolution will be announced. Powell will also speak. Therefore, the interest rate increase should be a foregone conclusion at this moment, but what kind of words Powell will use in his speech after the meeting will be affected by the CPI data (November CPI annual rate 7.1%, expected 7.3%, previous value 7.7%). At the same time, this week's interest rate meeting will also release a dot plot, which will clarify the peak and time distribution of interest rate hikes, which is the direction of monetary policy for quite some time in the future, and will determine whether the US stock market will bottom out or crash. This Monday, the VIX panic index also rose by 9.51%, accompanied by a market rise. The fear index is an indicator used by CME to measure the volatility of S&P 500 index options. It is usually used to assess the volatility risk in the future. Before major events occur, funds are deployed in options in advance, and more people participate in betting on the future direction, resulting in higher option prices and greater volatility. The surge in the fear index also indicates that there will be greater fluctuations in the next few days. It just so happens that the Nasdaq has been trading sideways for three months from September this year to now. It is currently on the upper track of the rectangle. It may re-select the direction in the next two days. If there is a positive news, it will directly break through with a large volume on the big positive line. If there is a negative news that the market is going down, it is not easy to directly fall through the rectangle. The S&P was also suppressed by the annual line in the rising channel last week. Whether it can break through at the end of the year depends on this week's trading.
2. Macro and Technical Analysis
From a macro perspective, the market will not have more fluctuations before the rate hike, and will wait for the release of the meeting minutes before deciding the direction of the market.
Currently, BTC and ETH have broken through the 17000/1200 barrier and are trading sideways above it. The key to the current market situation lies in the path of future interest rate hikes, and the short-term market situation may be optimistic.
Two-year Treasury bond changes to 4.36
Nasdaq falls back to around 11,000
1. Ahr999: 0.319, can be used for fixed investment
2. MVRV: 0.8142, cost performance is the same as Ahr999
Number of BTC addresses: The number of addresses holding more than 1,000 coins continues to decline
Number of ETH holding addresses: Number of holding addresses 1-10, falling rapidly
III. Summary of Investment and Financing
Investment and Financing Review
During the reporting period, the number of financings and projects was relatively sluggish, with 12 disclosed investment and financing events and a cumulative financing amount of approximately US$63.7 million;
During the reporting period, there were two projects with financing amounts exceeding US$10 million:
Bitwave, a cryptocurrency accounting and compliance platform for enterprise clients with DeFi Accounting capabilities, raised $15 million in Series A funding from Hack VC and Blockchain Capital. This is also an urgent need for DeFi Accounting after the collapse of FTX, which led to the migration of some CEX funds to DeFi;
Perennial, a DeFi derivatives protocol invested by Polychain Capital, Coinbase Ventures and others, raised $12 million in seed round financing.
Organization News
4. Crypto Ecosystem Tracking
1.NFTs
(1) This week’s NFT market
Market overview: The NFT blue chip index has not improved significantly this week. As of December 9, the NFT blue chip market is still at the freezing point of a bear market. The blue chip index has declined slightly compared with last week, but there has been no significant change. Market sentiment remains low. The floor price of BAYC currently remains at around 68 ETH.
This week, the total market value of the NFT market has basically not changed compared with last week, only increasing by 0.03%, and the total transaction volume has increased by 4.5% year-on-year. The market fluctuations in the past two weeks have been very small, and there have been no new blue-chip projects or platforms in the market.
There was not much change in the holders of the NFT market this week, and the activity of traders declined to a certain extent compared with last week. The number of buyers decreased by 1.27% compared with last week, and the number of sellers decreased by 6.5% year-on-year. Overall, the market currently does not show many signs of bottoming out and rebounding, and is still fluctuating at a low level.
The top three NFTs in terms of market trading volume this week are BAYC, MAYC, and The Legend of CØCKPUNCH. It is worth mentioning that after The Legend of Cockpunch was sold in a blind box at the end of November, its trading volume has increased significantly this week and has jumped to third place. The total sales volume of Cockpunch is 5,555. The floor price is currently 0.97 eth.
The Legend of COCKPUNCH is a fantasy kingdom story from the bizarre universe of the mind of Tim Ferriss. Characters, maps, novels, podcast episodes will be released over time.
(2) This week’s highlights:
Coca-Cola and Crypto.com have partnered to launch a 10,000-piece NFT series inspired by the 2022 FIFA World Cup in Qatar. Created in collaboration with digital artist GMUNK, the series is based on a “heat map” that visually presents the movements and highlights of the players in the game.
To obtain the NFT collection, fans need to create an account on the crpyto.com NFT platform and visit the Coca-Cola fan zone page to mint tokens. Coca-Cola has also opened the ** fan zone for this purpose, ** is also the digital center of the 2022 FIFA World Cup in Qatar, providing fans with the opportunity to interact in real time during the game. In addition to the NFT collection, the fan zone also includes real-time team rankings, score predictions, and real-time interaction with the event.
However, it can be confirmed that even though the announcement is for a global audience, the current NFT registration website "Coca-Cola Middle East" or the official fan zone link only offers options for residents living in Qatar, Saudi Arabia or the UAE.
National Basketball Association Hall of Famer Scottie Pippen is entering into a new partnership with Orange Comet, a Web3-based entertainment company, to launch 1,000 limited-edition Pippen Kicks NFT sneakers, scheduled to be released on the NFT marketplace OpenSea on December 20. Orange Comet CEO Dave Broome also said that 33 NFT holders will be randomly selected to receive real prototype shoes autographed by Scottie Pippen that the platform is building. Benefits also include 1 holder getting a ticket to the home tour and 2 holders getting the opportunity to play golf with Pippen.
(3) Key projects:
NFT startup Metagood has raised $5 million in pre-seed funding, which will be used to build the community and tools of OnChainMonkey. Metagood launched the NFT series OnChainMonkey to give community members the opportunity to develop and fund social welfare projects through DAOs, and the organization raised 2,000 ETH in one year.
OnChain Monkey(OCM) Introduction
Investors include: Charlie Lee, inventor of Litecoin, Matthew Tan, CEO of Etherscan, Jeffrey, co-founder of Axie Infinity, and Sebastien Borge, co-founder of The Sandbox, etc.
OCM's first series, OCM-Genesis, was released in September last year. It adopts the Free Mint method, has no whitelist and no public sale price. It also adopts the concept of "full chain", claiming to be the first full chain NFT project.
The difference between full on-chain and partial on-chain: Due to the high cost of storing data on the chain, most NFTs on the market are only partially on-chain. Partial on-chain means that NFT will only record ownership on the chain, and then store the image/video/music in the form of IPFS. OCM produces SVG images through smart contracts, and deploys every part of the image attributes on the chain. Therefore, many people intuitively feel that the pfp images of these monkeys are ugly or strange. There is actually a reason behind it, because the cost of storing data on the chain is indeed very expensive. Currently, OCM can be purchased on opensea, nifty gateaway and origin. The floor price of opensea is around 0.8-1 eth, and the total circulation is 12,721 eth.
The first generation of OCM - GENESIS:
OCM product features: 1. There are many online and offline activities. In addition to the chat room on Discord, OCM also has many physical activities, such as offline forums, but currently it will focus on overseas markets. 2. OCM-DAO, OCM-DAO recently launched a charitable donation to Ukraine on the platform. 3. There is an exclusive channel for OCM-NFT holders in Discord. By entering the designated code !RISE, you can get a banana coin, or if you send a banana coin to a friend, the system will give you an extra banana coin. This banana coin is currently off-chain and is expected to be on-chain this year. 4. The most important thing is that they are currently building their own monkeyverse, the monkey metaverse. Every user who holds the first or second generation can join, forming a powerful community.
Second Generation OCM-KARMA:
A total of 20,000 will be issued, and there are two ways to obtain them.
In early February this year, three kinds of desserts were airdropped to 10,000 Genesis monkeys. The three desserts were D1 (Incredible Ice Pop), D2 (Divine donut), and D3 (Celestial Cake). At the end of March this year, monkeys holding Genesis could receive a second-generation KARMA monkey by eating desserts (the desserts will disappear, but Genesis will still be there).
Rules: If Genesis eats D1, it will get K1, and K1 will have the characteristics of Genesis. Similarly, if it eats D2, it will get K2, but K2 will have some extended rare characteristics in addition to the characteristics of Genesis. Eating D3 will become very unique, and you will get a completely different karma. If you have Genesis, it is highly recommended to eat D2, especially if your Genesis is ranked very low in rarity. Eating D2 will allow you to get 30% of the total K2-divine karma, which also ensures that the rarity of the second-generation monkey you synthesize after eating dessert is in the top 30%.
The remaining 10,000 monkeys will be open to everyone for MINT.
The reason why OnChain Monkey can continue to grow On the surface, it was because it initially adopted the free mint mechanism, which was able to filter out most of the short-term interest users in the first six months. After the big reshuffle, most of the remaining holders were loyal OCM fans. In addition, the team is very down-to-earth. Compared with many other project parties who just want to manipulate the price of NFT and often paint a big picture and talk about all possible developments, the OnChain Monkey team's work style is completely opposite. They do things first and then announce them, which continues to bring more surprises to the community. For example, the additional airdrop of snacks NFT (OCM Dessert) to monkey friends in the past few months is the key to turning these 2D PFP monkeys into 3D in the future. In addition, the team will gradually disclose some of the project's reserved information and further gameplay, such as each color and feature on its NFT monkey may represent the difference in its species, etc. (Continuously bring surprises to holders)
2. GameFi Chain Games
Overall review
This week, the mainstream tokens in the GameFi track fell sharply. In the case of insufficient market liquidity, only BTC, ETH and some mainstream hot tokens were able to maintain, while the rest of the Altcoins performed dismally.
Binance Innovation Zone launched the token MAGIC on the 12th, including three trading pairs: MAGIC/BTC, MAGIC/BUSD and MAGIC/USDT. MAGIC reached a high of 1.08 at the beginning of its launch, and then fell back to around 0.7. Benefiting from a series of positive stimuli such as the popularity of the newly incubated game The Beacon, the listing on Coinbase and Binance, MAGIC has risen by more than 120% so far this month.
3. Infrastructure & Web3
1) Market Overview - Public Chain & TVL
As of December 13, the overall locked-in volume of each public chain (including Staking) denominated in US dollars fell slightly with the market, from 49.19B last week to 48.46B.
The TVL rankings of major public chains did not change much, with only Arbitrum maintaining a strong growth momentum, surpassing Avalanche and ranking fourth. Arbitrum's growth sources are still GMX and TreasureDAO, of which GMX has maintained an increase for 5 consecutive weeks; TreasureDAO token MAGIC benefited from the positive news of listing on Binance, with a single-day increase of 45% on the 12th.
Among the remaining public chains, BSC fell significantly, mainly due to Reuters reporting that some Binance executives may be prosecuted for violating anti-money laundering and other matters, and BNB fell significantly.
2) Market Overview — Stablecoin Supply
As of December 12, the total supply of the top four stablecoins (USDT, USDC, BUSD, DAI) was about 136.366 billion, a slight decrease of about 157 million (-0.12%) from 136.523 billion a week ago. The supply of stablecoins has fallen for four consecutive weeks, and funds have continued to flow out, but the decline has stabilized this week.
Among the three major fiat stablecoins this week, the supply of USDT ended its four-week continuous decline, with a slight increase of about 264 million this week, and the downward trend rebounded; USDC continued to have a large outflow, with a supply decrease of about 523 million this week, and funds continued to flow out of the US market; the supply of BUSD did not change much, decreasing by 75 million this week, and the downward trend slowed down.
DAI, which is a leverage of ETH, has seen a rare rise, with its supply increasing by about 176 million this week. Market sentiment has eased and bottom-fishing behavior has begun to emerge.
Overall, market liquidity is still in short supply and lacks incremental capital support, so it is too early for the bull market to reverse.
4 Social&DAO&DID
XDAO completed a $2.3M seed round at the end of November this year with a valuation of $50M. The company was established on April 23, 2021 and is currently located in Singapore. The product has been developed for more than a year, and the Beta version is now online and can be used on its official website.
Problems in the existing market:
In the traditional financial market, companies or organizations can skillfully invest their assets in their targets within the existing legal framework. This is because, in traditional investment transactions, the country's legal framework provides companies or organizations with security and convenience, reduces investors' risks, and promotes the liquidity of funds in the market.
However, this is difficult to achieve in web3 because Defi products interact with specific wallets, and when investment is required in the form of an organization, it will be difficult to manage and execute.
What problem does XDAO solve?
In the previous DEFI Market, there was no effective and convenient tool for companies and organizations to invest in decentralized protocols.
When users use XDAO, they can easily create a DAO on the platform, customize their own investment portfolio through the DAO's asset management solution, and interact directly with Defi protocols.
What support can XDAO provide to DAO?
XDAO provides a complex Multi-signature Wallet for DAO, making DAO’s fund management more secure and reliable
IDO assistance throughout the entire process, including Launchpad, accelerators, promotion, etc.
Modular function combinations, such as Vesting, Telegram Bot, Dividends, etc.
Proposal full process management, including initiation, voting (GT & LP), execution, etc.
The asset transfer tool allows members to easily transfer assets to the DAO’s treasury, or transfer assets from the Treasury to personal wallets, while also supporting cross-chain transactions (ETH, polygon, BNB, etc.).
Summarize
XDAO has created an easy-to-use modular DAO management tool that allows real-world groups to participate in the Defi Market more safely and easily.
The main difference between XDAO and other DAO tooling tools is that it is a full-process DAO modular management platform. DAO can not only complete the proposal initiation and voting on XDAO, but also access different modules to complete investment, dividend and other functions. The most distinctive function is that DAO can directly interact with Defi protocols on XDAO, making it easy to raise Defi funds in the form of DAO.
Because of this, the biggest problem XDAO faces is security. From the perspective of the XDAO team, it is still unknown whether the technology can be guaranteed, so the problem they urgently need to solve now is how to make real companies or organizations believe that their tools do not have loopholes. If XDAO cannot give this sense of security, then the market it faces competition in will still be the traditional Dao tooling track, and it will not be able to achieve the effect of breaking the circle.
V. About Us
Team News: In the past week, JZL Garden has launched the first NFT series of the Garden project, "Dandelion", on the Upstairs platform, and it was completely sold out within one hour of the public sale. This is an important milestone for JZL Garden, and thank you for your joint witness.
Team introduction: JZL Capital is a professional institution registered overseas, focusing on blockchain ecosystem research and investment. The founder has extensive work experience and has served as CEO and executive director of many overseas listed companies, and has led and participated in eToro's global investment. Team members come from top universities such as the University of Chicago, Columbia University, University of Washington, Carnegie Mellon University, University of Illinois at Urbana-Champaign, and Nanyang Technological University, and have served internationally renowned companies such as Morgan Stanley, Barclays Bank, Ernst & Young, KPMG, HNA Group, and Bank of America.
