Denmark to tax unrealized gains at 42%

The Bitcoin ETFs have been relentless lately — the last 6 days saw $1.15B in inflows. Even though we have few data points to prove that, huge inflows have always marked local tops: is this going to be the exception?

What’s surprising is to see that much capital allocated ahead of U.S. elections, which tend to represent uncertainty and volatility.

Talking macro, the Bank of Canada just cut its rates for the fourth consecutive time, bringing interest rates from 4.25% down to 3.75%.

Back to crypto, ETH continues to be a cursed coin. Seemingly, there’s no bid for it. ETH/BTC has broken a resistance formed during the previous two cycles (2017, 2021) like its butter — if there’s a time to bounce, that’s it. Meanwhile, SOL/ETH is recording new highs, reinforcing the Solana supremacy over Ethereum this cycle.

While this may not be true in terms of ecosystems, it’s hard to deny it from an economic standpoint. Ethereum L2s finally made Ethereum accessible and cheap to use, and this is the issue: ETH isn’t accruing value, it’s not used as money, and institutions aren’t bidding its ETF as they don’t consider it a store of value as they do with BTC. What do, then?

Happens on-chain

• Kraken launches new wrapped Bitcoin product kBTC on Ethereum & Optimism — CoinDesk
• Kraken exchange plans to launch its own blockchain ‘Ink’ on Optimism early next year — Bloomberg
• Worldcoin launches mainnet, and rebrands itself as “World” and “World Network”. Uniswap already live.
• ApeChain launches mainnet using Arbitrum Orbit — CoinMarketCap
• Elixir introduces mainnet phase 1, anticipating public mainnet — 𝕏/elixir
• Pump.fun announces token plans on 𝕏 space — The Block
• Re-named Sky protocol might go back to ‘MakerDAO’ brand — The Block
• Infinex Patron NFTs have been distributed, now tradable on MagicEden and OpenSea
• Thunderhead Labs announced Hyperliquid’s liquid staking token $stHYPE — 𝕏/ThunderheadLabs
• Polymarket cracks down on US users, not allowed to trade — Yahoo

Tether, you got competition: Memecoin casino Pump.fun has generated $162M revenue since its launch, selling $78M so far — 𝕏/lookonchain

Traditional rails

• BlackRock seeks BUIDL integration as perps collateral on CEXes — bloomberglaw.com
• Denmark set to propose taxing unrealized crypto gains at 42% in upcoming bill — The Block
• VP Harris is looking at potential replacements for SEC Chair Gary Gensler, candidates being Chris Brummer and Erica Williams — 𝕏/laurashin
• The SEC has approved options for spot Bitcoin ETFs at both NYSE & CBOE
• European Central Bank newly published paper lies groundwork for aggressive regulation, tax hikes, and bans — DLnews
• U.K. Pension giant L&G ($1.5T AUM) looks to enter crypto tokenization space — CoinDesk
• Ripple’s Co-Founder donates another $10M XRP to Kamala Harris, totaling $11M in donations — CoinDesk
• Nigeria withdrew money laundering charges against jailed Binance exec — DLnews
• Private equity firm Aurum is launching a $1B tokenized fund on the XRP network — CoinDesk
• Vietnamese government plans to create 20 blockchain brands with regional influence — vietnam.vn

Fat app thesis: Aerodrome accounts for more than half of Base’s TVL, and 58% of its DEX volumes — Coinbase research

Security & Development

• Chainlink taps Botanix Labs to make its move into the Bitcoin ecosystem — CoinDesk
• Crypto on-ramp company Transak suffers data breach involving 93K users (1.14% userbase) — CoinDesk
• Celestia announces ‘Mammoth Mini’ testnet, averaging 27Mb/s data throughput, compared to Eigen’s 15Mb/s — 𝕏/CelestiaOrg
• Uniswap’s permissionless bridging goes live across nine networks — The Block
• Gnosis Safe now allows gasless deployment with same address across multiple chains — 𝕏/safe
• Buenos Aires city issued 3.6M digital IDs using ZkSync — 𝕏/zksync

North Koreans love crypto: allegedly, NK developers helped build Cosmos’ liquid staking module — Rekt

Where’s the money flowing?

• Stripe strikes their largest acquisition ever, $1.1B to acquire stablecoin payments company ‘Bridge’ — The Block
• Gnosis DAO launched a new $40M venture fund targeting RWA, infrastructure, and payments — The Block
• P2P trading protocol Variational raised $10.3M Seed Round led by Bain Capital Crypto and Peak XV Partners — crypto-fundraising.info
• Infrastructure protocol Validation Cloud raised $10M Round led by True global ventures — crypto-fundraising.info
• Gaming protocol Party Icons raised $9M Round led by Bitkraft — crypto-fundraising.info
• Tokenized securities marketplace STOKR raised $7.98M Strategic Round led by Fulgur Ventures — crypto-fundraising.info

Airdrops

• Scroll airdrop criteria has been published, and the airdrop is live — claims.scroll.io
• Jupiter releases Active Staking Rewards (ASR), claim yours at https://vote.jup.ag/asr
• DeBridge airdrop is live, claim now at https://debridge.foundation/

Upcoming events

• October, 29: Mantle’s $COOK TGE
• October, 30: TIA unlocks $1.05B
• November, 5: U.S. elections
• December, 5-6: Emergence conference in Prague

• Just use Aave! You can earn a 10.43% APY supplying USDC on Avalanche, 36.08% APY to supply sUSD on Optimism, 15.81% APY to supply DAI on Polygon. Otherwise, staking GHO on Ethereum yields 16% APR.
• Aptos aficionado? Cellana’s paying a 24.92% APR to LP wUSDC/zUSDT

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Disclosure: Authors may own crypto assets named in this newsletter. Stay on-chain is meant for informational and educational purposes only. It is not meant to serve as investment advice. Please consult your investment, tax, or legal advisor before making investment decisions.