INERTIA Advisory - Weekly Newsletter - 07/03/2022
Welcome to INERTIA Advisory’s weekly newsletter, where you will receive updates on the most remarkable things happening in the cryptocurrency space.
Enjoy!
Switzerland to freeze Russian crypto assets. Switzerland’s federal government planning to seize Russian crypto assets inside its borders, including those held by corporates and billionaires.
Lugano, Switzerland will make Bitcoin legal tender. The city of Lugano, will make Bitcoin legal tender and allow citizens to pay for public service fees or taxes in Bitcoin.
Tether’s stablecoin, USDT, will also become legal tender in the city. This move is kind of impressive knowing the dark history under Tether and the speculation about the collateral of the stablecoin. Back in October, there was a rumor that USDT held Evergrande’s junk bonds as part of USDT’s collateral.
In a nutshell, we could say that Lugano could potentially end up accepting Evergrande bonds as legal tender (Just kidding).
Other countries such as Mexico and Panamá are also considering the introduction of Bitcoin as legal tender.
US Virginia Senate allows state banks to offer crypto custody services. The bill passed Senate with a sweeping 39-0 vote and is waiting to be signed into law by Governor of Virginia Glenn Youngkin.
Banks that intend to offer this service to clients will need to adhere to three specific requirements mentioned in the bill: implement effective risk management systems, possess adequate insurance coverage, and launch an oversight program to address risks associated with cryptocurrencies.
BBVA, one of the largest banks in Spain and LATAM, is already providing these services. However, there is a relevant difference in the operational process of the two. The Senate in Virginia will require the banks’ customers to retain direct control of their public and private keys associated with their virtual currency.
The number of Bitcoin held by funds hits a record high. The institutions are coming to the cryptocurrency market. Funds appear to be accumulating Bitcoin as the Russia-Ukraine crisis drives inflation expectations higher.
Arcane Research's study, which filters out closed-ended funds, shows bitcoin held by Canadian, U.S., and Brazilian ETFs registered inflows last month.
While the European exchange-traded products and ETFs bled money for the third straight month, the outflows were substantially smaller than preceding months.
South Korea to invest US $187 million in national metaverse project. South Korea’s Ministry of ICT, Science, and Future Planning pushed to create a broad metaverse ecosystem to support the growth of digital content and corporate growth within the country.
Funds will be spent completing four main objectives in creating an all-encompassing metaverse ecosystem called the “Expanded Virtual World”.
Monthly NFT buyers dip below 800k as searches “fall off a cliff”. Although Opensea, the largest NFT marketplace by volume, recorded a record of unique secondary NFT buyers at 904,135 and NFT sales volume topping in almost US $5 billion, February saw one of the biggest pullbacks seen in the NFT industry.
Specific reasons why general interest has decreased so fast over the last month are unclear. However, Opensea was the victim of a phishing attack back in February, which could have contributed to this cool down.
Here is all the activity recorded in NFT volume within the most important blockchains.
FriesDAO raises US $5.4 million with the plan to buy fast-food restaurants. The plan is to buy at least one fast-food restaurant in the first year. If this doesn't happen, the funds raised will be returned to the community, minus any expenses.
The group raised the funds over the week ended February 20 and has given out FRIES tokens to those who participated. These tokens will not confer any ownership of the restaurants or give holders any share of profits, but they will be used to vote on proposals with regards to how they operate.
The DAO began as a joke about how loss-making crypto investors can be forced to take jobs at restaurants like McDonald's. Its Twitter profile says it's "helping to provide jobs and food for ex-crypto traders by buying fast food stores around the world."
WTF is a DAO?
DAOs are the latest thing in crypto fundraising. Short for Decentralized Autonomous Organization, they're supposed to be automated organizations completely run by code. However, in reality, many DAOs are largely run by a core team that implements decisions made by token holders, who vote on proposals with their tokens.
We are launching two Investment DAOs in INERTIA Advisory soon.
INERTIA Advisory DeFi DAO
INERTIA Advisory NFT DAO
Stay tuned.