Crypto renaissance...

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Festive heads-up! 🎉 This will be our last newsletter blast until the new year. Catch you on the flip side of the holidays! 🎄✨

The hot new market in crypto? Trading FTX’s carcass.

Following FTX's bankruptcy, a unique market has emerged, with investors injecting hundreds of millions into FTX bankruptcy claims, anticipating a recovery under new leadership. David Yaffe-Bellany and Matthew Goldstein explore the unexpected surge in trading activity post-FTX's collapse.

Post-bankruptcy surge: FTX's bankruptcy has birthed an unconventional market, as investors speculate on potential recoveries from the collapse. This surge in trading activity reflects a noteworthy development in the aftermath of FTX's downfall, drawing diverse participants into the fray.

Speculative momentum: Investors are making straightforward bets, acquiring FTX claims at a fraction of face value, banking on higher payouts from the bankruptcy estate. The trading volume in FTX claims has reached $1 billion to $1.5 billion since the onset of bankruptcy, indicating active transactions in this fervent market.

Diverse players, varied risks: The claims market has attracted a range of participants, from well-known hedge funds to entities with diverse histories. Despite potential risks and limited oversight, the allure lies in immediate cash-outs for creditors, sidestepping the lengthy wait for bankruptcy estate disbursements. Notable figures, including a former FTX executive, have joined the claims trading space, adding intrigue to the unfolding narrative.

FTX's post-bankruptcy phase has become a speculative arena, with investors betting on potential recoveries. The resilience of the crypto market is on display, turning FTX's husk into an unexpected hub for financial speculation.

Crypto's renaissance: Coinbase's 2024 Crypto Market Outlook signals prosperity ahead

In its 2024 Crypto Market Outlook, Coinbase provides a roadmap for navigating the evolving crypto landscape, offering insights up to November 30, 2023. The 80-page report explores pivotal market shifts and institutional practices, signaling the end of the crypto winter and the dawn of a promising era.

Market resilience and digital asset surge: Coinbase's analysis reveals a doubling of the total crypto market capitalization in 2023, marking the end of the crypto winter. Despite challenges, the report underscores the market's resilience and sustained development, affirming the enduring nature of digital assets.

Bitcoin's role and NFT transition: Bitcoin solidified its status as a safe haven in 2023, with institutional interest and Bitcoin ETF applications. The report anticipates this trend continuing in 2024, alongside a notable shift of NFT activity toward Bitcoin Ordinals, signaling a broader move toward practical use cases.

Infrastructure growth and web3 applications: The outlook emphasizes significant infrastructure development in the crypto space, paving the way for decentralized applications. Layer two scaling solutions, like OP Stack and Arbitrum Orbit, are highlighted, indicating a transition toward Web3 applications.

As the report concludes, Coinbase envisions a cautiously optimistic U.S. economy in 2024, with decreased recession likelihood and potential Federal Reserve cuts. This, coupled with the weakening USD, presents opportunities for cryptocurrencies. The challenge, as Coinbase notes, is seizing the moment to build a better future in the dynamic world of cryptocurrencies.

In 2024, Web3 must rewrite its user acquisition playbook

As we stand on the cusp of 2024, Web3 undergoes a paradigm shift in user acquisition strategies. This concise analysis explores the limitations of current methods and advocates for a utility-focused approach in the Web3 evolution.

Moving beyond the buzz: Critiquing the transient nature of airdrops and '2Earn' models, the focus shifts to crafting experiences and products with enduring value, moving beyond mere initial engagement.

Embracing change: The call is for Web3 to prioritize the development of enduring, high-quality products. Drawing inspiration from industry leaders like Meta, the emphasis is on tangible, lasting benefits over short-term incentives.

Crafting legends: Brand awareness takes center stage in the success of Web3 enterprises. Projects are urged to align incentives with lasting brand objectives, reimagining strategies in an industry still in its formative stages. Examples like Polygon Labs and NBA's TopShot NFT marketplace showcase the potential of blending utility and community celebration in Web3 narratives.

In the unfolding saga of blockchain's promise, the focus is on prioritizing user experience and building robust brand identities. As 2024 unfolds, the imperative is clear: move beyond transient tactics, and concentrate on creating products that resonate and contribute meaningfully to the dynamic Web3 landscape.

More headlines…

• EthSign, backed by Sequoia, brings blockchain-powered e-signing to Telegram and Line, offering transparency and trust. The startup aims to replace traditional e-signatures with the advantages of blockchain, emphasizing identity authentication and immutability. Already live on Telegram, EthSign plans further integration with Line and Finschia, envisioning a future as a fee-based attestation service platform.

• Immutable introduces Passport, a web3 gaming tool enabling over 500,000 users to carry identities and assets across titles like "Gods Unchained." The tool aims to simplify sign-up, enhance user acquisition, and eliminate barriers to adoption, fostering interoperability in the evolving web3 gaming space.

• XRP could rally nearly 15% as Ripple gets crypto license in Ireland.