👀 What’s to Come in Volume 62

🔑 Key News: Headlines, Exploits, Continued Adoption, DeFi Updates, New Projects & more from CJ

⛓ On-Chain Sleuthing: feature along with Smart Money Moves from Cl

🔥 Hot Narratives: BASE season & Blackrock 100M on-chain fund from GMX Intern

📉 HTF Price Action Scenarios from Vlad

👁️ Early opportunities: Parallel’s 2nd game - Colony from DeFiMan

⚔️ A Call to Arms

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🔑 Key News

Major Headlines

• BlackRock launches digital asset fund and deposits $100M USDC on Eth

• Japan’s $1.5 trillion government fund considers BTC for portfolio diversification

• Coinbase Derivatives filed to list futures for Dogecoin, Litecoin & Bitcoin Cash

• Federal Reserve leaves interest rates unchanged, remains at 5.25% - 5.50%

• London Stock Exchange eyes crypto ETN listings in late May

• SEC demands $2B from Ripple Labs, while their CEO responds

• Tether expands AI focus

Project Updates

• Paraswap critical vulnerability discovered

• AirDAO hacked while Dolomite’s old contracts were exploited

• Curio Invest exploited for $16M

• SSS exploit turns out to be whitehat

• Avalanche Powers Web3-Enabled Voucher Program on Alipay+ D-store & kicks off liquidity mining program for Avax-based memecoins, followed by Arbitrum

• Mantle announced program to stake $MNT for Ethena shards

• TON Foundation launches Toncoin community rewards worth $100M

• Citrea unveils Clementine (BitVM based trust-minimized 2-way peg program)

• Blast distributed Blast Gold to protocols

• Ether Fi announced Points Season 2 while Orderly Network announces their points program

• Michael Kong shares details about Sonic’s Launch

• BadgerDAO launches stETH-backed synthetic bitcoin

Interesting Projects

• Neural Tensor Dynamic: AI-powered staking protocol on Bittensor

• Gm.Ai: AI project by LootBot / WhalesMarket founder

• Near AI: Twitter account related to NEAR Protocol

• TaoTradeX: Launchpad project on TaoPAD coming soon

• MancakeSwap: Project on Mantle with affiliations from PancakeSwap

Courtesy of CJ - check out his telegram channel for daily news, project updates and new releases

⛓ On-Chain Sleuthing

FAKE SU ZHU bidding on the Internet t0ken

The unfamous FAKE sU zhU has been buying some $INT.

The Internet Token is a new decentralized lottery on the BASE chain with some upfront tokenomic design advisory from X_DEV, the man behind the creation of the GMX Protocol.

A lot of people in Castle are very bullish on this new protocol and some are doubting… is this bullish or bearish if fake Su Zhu bidding?

Research and analysis by Cl

🔥 Hot Narratives

Base Season heating up in anticipation of Coinbase Smart Wallet

• Coinbase Smart Wallet is set to launch in April, enabling every Coinbase account as a wallet for BASE.

• TVL doubled in March, and volume exploded too.

• Aerodrome (AERO) doing well as a native BASE DEX, reaching 1B FDV.

• Memecoins are seeing the highest returns, with Normie running from sub 10m to +100m, and many others doing 20x-30x.

• DEGEN performs surprisingly well as a Farcaster beta coin, sitting at 200m mcap and 600m FDV. Farcaster adoption is still growing and this is reflected in DEGEN price action.

• FriendTech V2 could be launching soon, which could shine even more light on SocialFi and of course, FriendTech itself, can the hype return?

Blackrock announced 100M $$ on-chain RWA Fund

• On the 20th of March, Blackrock announced the BlackRock USD Institutional Digital Liquidity (BUIDL), a real-world asset (RWA) tokenization fund, on the Ethereum Network.

• This announcement gave a massive boost to RWA coins and started a new leg up for the sector.

• ONDO is one of the best performers as a high-cap RWA coin, positioned as a BlackRock beta coin.

• Many smaller RWA coins did a 2x-3x in the days after the announcement, like CPOOL, RIO, SMT, and many more.

• It’s going to be interesting to track new developments/announcements of Blackrock or other funds participating in RWAs on-chain, as potential future catalysts for the sector.

Courtesy of GMX Intern

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📈 HTF Price Action Scenarios

Gm frens!

Last week price started breaking to the downside and going sideways, which I anticipate to be a re-accumulation. The play is to wait for money to clearly show its hand and for buys to be back in control. The 1st step towards that would be a convincing break through the most recently formed supply.

• Re-accumulation

• Supply still suppressing price

• Wait for a bullish break through the supply

Until I see that clear break I’m not looking for any trades whatsoever. These sideways movements exist for the composite operators to accumulate or distribute the asset by liquidating both sides of the trading range - I call this “range shenanigans” and the best thing to do here is to simply sit out.

A good way to think about this price action is 50:50. There is just sideways price action without any clear clues of what the market wants to do. And while we’re still bullish on the HTFs, we want to see a clear intention of continuation first before jumping on any trades.

Trade responsibly and I’ll see y’all next time!

Courtesy of 0x_Vlad - trend-based trader and MentFX student

👁️ Early Opportunities

Parallel recently released the white paper of their second game, Colony.

Colony is an AI-enabled game in which the Avatar plays by itself and the human behind the screen is able to influence their Avatar decisions by interacting with it and establishing the core identity of the Avatar and objectives in the game.

The beauty of the game resides in the fact that Avatars get better over time in their tasks through specialized reinforcement techniques making each game unique and introducing huge variability in the final outcomes. Avatars can even propose new game rules, Colony AI dungeon master reviews those proposals and if successful, those new rules are transformed into code and become the foundation for new behaviors and in-game items.

Avatars are effectively AI agents that will interact among themselves without any need for human intervention (even though the player can influence those decisions) and exchange goods and services through $PRIME. Being hosted in a high throughput and low fees blockchain feels mandatory for such a game right? Correct, and Solana has been the chosen one. Will allow Avatars to send/receive thousands of $PRIME txn with negligible gas fees.

Parallel Avatar NFTs won’t be needed to play the game, so it will be “free to play” except for the gas fees, but only those owning NFTs will be able to earn $PRIME rewards so there is a clear incentive to have them. The original collection only has 11k Avatars, which is a small number compared to the potential size the game could reach. To fix this, there will be some kind of breeding mechanism using original NFTs and $PRIME to generate new Avatars, so the game can scale while the original NFTs still accrue big value.

Will $PRIME accrue value from this game too? It will most likely benefit from the game usage and awareness it will create, but there is an even more direct positive effect in the short/mid term.

Parallel has generalized the technology powering Colony and will offer it as a building block to projects that want to use it, to do it they have created a new project named AI Wayfinder with their token ($PROMPT) to accrue the value generated by the new project/AI tech. 

40% of the new coin supply will be distributed to $PRIME stakers through the next 3 years and most likely some supply will also go to the original Parallel NFT Avatars. This new project will probably be valued in the billions FDV considering the potential of staking $PRIME/NFTs will be a +EV play and thus some further repricing is likely underway.

Courtesy of DeFiMan

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In our newsletter, we may discuss projects or tokens in which we hold positions. While we aim to provide informative content, our views are not financial advice. Please conduct your research and consult professionals before making investment decisions. Crypto markets are volatile, and past performance doesn't guarantee future results. Invest responsibly, and be aware of the risks. Your capital is at risk, and we do not accept liability for any losses.