GM, frens! 🕶️ In 2024 crypto’s giving us a bull run that’s not quite your typical stampede.

Things are getting weird, but we’re here for it 🤙 

• 🐂 Are we even in a BULLRUN? Yes, but it's a weird one

• 🥷 Binance's CZ is out of jail

• 🛠️ Another dev leaves Cardano. Has the chain failed?

• 📱 SIM swap scams: the silent crypto thief that needs to go

Regarding our W3oF Degen Portfolio, the lines between bullish and bearish have blurred, and it's more about playing the long game than ever before, but we’re holding steady 🫡 

And hey, keep your eyes peeled - there might be a new voting poll for rebalancing soon. 👀

LFG!

Are we even in a BULLRUN? Yes, but it's a weird one

The rollercoaster

Let’s start with BTC 🪙 

• Normally, in a bull run, Bitcoin is king, leading the pack, but things aren’t so simple this time. While it’s true that Bitcoin’s been consolidating between $53,000 and $74,000 since March 2024, it’s stuck in a tight range 🔨 

• Some people see this consolidation as the calm before the storm, and many analysts are predicting a major breakout. In fact, some think we might be heading for a pump up to $290,000, which is crazy compared to where it’s been floating.

This is the kind of thing we expect to see in a bull run. Traders are holding their breath, waiting for Bitcoin to make that decisive move. And when you look at history, this type of long consolidation tends to be followed by an explosion in price.

But here's the thing - Bitcoin’s not the only star of the show ⭐️ 

The altseason is here, but we refuse to see it

Unlike previous bull runs, where BTC led the charge, altcoins are absolutely crushing it this time. Altcoins and, in particular, meme coins - especially on the Solana network - are thriving 🌱 

• It’s not just about gains either, as they’re getting huge institutional attention. We discussed Solana’s BONK 🏏 last week, for example, and how it’s planning to launch an exchange-traded product (ETP), which is basically an ETF but can take different forms.

• This is a huge step because it opens the doors for traditional investors to get in on meme coin action.

And then you’ve got SOL, XRP, and BNB - altcoins that are feeling very confident. Some have been outpacing Bitcoin with 200% gains in just a few weeks. That’s something you don’t see every day, and it's one of the things that’s making this bull run feel spread out and... different 🤔 

What’s adding fuel to the fire is the flood of institutional money, thanks to spot ETFs.

The demand is skyrocketing, and the tight Bitcoin supply is only helping the price stay strong. But it’s not just about Bitcoin; institutions are paying attention to altcoins too, which is boosting liquidity and investor confidence across the board.

Geopolitical wildcards

Of course, the global stage is also making its mark 🃏 

Tensions in the Middle East, particularly between Israel and Lebanon, are dampening what’s traditionally a strong month for crypto (lovingly dubbed Uptober by traders) 📈 

The price briefly touched $65,000 before falling back to $60,000, with major assets like Ethereum and Solana also taking a hit. Add to that the looming economic uncertainties with interest rate changes, and you've got a perfect recipe for unpredictable market swings.

So, are we in a bull run? Absolutely, but it’s one of the strangest yet.

Institutional investors are spreading their bets, and geopolitical uncertainty is stirring the pot, plus the market became more complex and unpredictable, with more wildcards than usual. But if history tells us anything, this could be setting the stage for some explosive moves 💣️ 

Binance's CZ is out of jail

Changpeng "CZ" Zhao, the founder of Binance, is officially out of jail, and the crypto world is buzzing with what’s next.

After serving a relatively short four-month vacation sentence for violating the Bank Secrecy Act (BSA), CZ is back on the streets 🚶 

• To recap, CZ’s trouble began when Binance was hit with regulatory scrutiny over its anti-money laundering (AML) procedures, or lack thereof. In particular, U.S. authorities were concerned about Binance’s KYC (Know Your Customer) policies, which they claimed weren’t up to scratch 🫢 

• CZ was sentenced to four months behind bars after pleading guilty, agreeing to pay a $50 million fine, and stepping down as Binance CEO. Additionally, Binance paid a hefty $4.3 billion to regulators to settle the charges 💰️ 

Now that CZ is out, the big question is, what’s next?

• Under the terms of his plea deal, CZ had to resign as CEO and is required to stay away from day-to-day operations at Binance 🔧 

• But don’t think that means he’s out of the game. CZ remains Binance’s largest shareholder, meaning he’s still got a massive influence over the company’s direction, even if he isn’t directly running things 🤷 

One thing to watch is CZ’s ongoing commitment to philanthropic efforts.

• Before heading to jail, CZ had launched Giggle Academy, a project aimed at providing free, high-quality education to underprivileged kids worldwide.

• Whether this will continue to be his main focus or just one of many ventures remains to be seen, but it’s clear CZ isn’t ready to hang up his hat just yet.

What’s happening at binance?

Meanwhile, Binance itself is in a period of transition.

• While CZ was serving time, the company continued to expand under its current team, boasting over 229 million users globally.

• The regulatory heat on Binance hasn’t cooled, though. The company is being closely monitored by U.S. regulators, who imposed two external monitors to oversee its compliance.

Binance’s strategy has largely shifted toward focusing on markets outside the U.S.

The exchange has pulled back from the American market, opting to operate more freely in Asia and other offshore markets where regulations are less stringent 🪙 

Another dev leaves Cardano. Has the chain failed?

Yet another developer just left Cardano, and the community is starting to ask some serious questions about the future of the chain 👇️ 

• Vladimir Kalnitsky, who worked on Cardano’s key technical components like cardano-transaction-lib (CTL), recently made his exit from the project.

• This marks a bigger issue that’s been brewing - Cardano's struggles to retain developers and talent.

Why devs are leaving

Kalnitsky's departure isn't an isolated case. Many devs overall seem to have gripes with Cardano’s ecosystem.

• For one, its reliance on functional programming (especially Haskell) creates a steeper learning curve compared to platforms like Ethereum, which uses the more widely known (and simpler) Solidity.

• Cardano’s development framework may be elegant, but it’s not attracting enough developers who want to build efficiently and at scale 🧠 

Take Hinson Wong, another dev who shared his thoughts on why developing decentralized finance (DeFi) on Cardano isn't exactly ideal:

If we’re to believe the devs, Cardano’s current tooling is a bit too niche, making it tough for devs to build platforms akin to Uniswap or other Ethereum-based DeFi apps.

The whole process takes longer, and that doesn't bode well for the platform’s long-term attractiveness 🫠 

Cardano’s current ecosystem

To understand why Cardano is facing these issues, let’s compare its ecosystem to others.

• Right now, Cardano only supports around 269 dApps 📴 

• Compare that with Ethereum’s 5,589 dApps or Binance Smart Chain’s 3,229, and you see where the problem lies.

• Cardano’s smaller ecosystem translates to fewer collaboration opportunities for developers, fewer services for users, and ultimately a less engaging experience.

Sure, Cardano's tech (like Hydra scaling) has some serious potential, but so far, it hasn't caught on in a big way 🤐 

The smaller number of available dApps and smart contracts impacts the platform’s attractiveness to developers and users alike, which could spell trouble for its DeFi ambitions.

What’s next for Cardano?

At the heart of this issue is whether Cardano can compete in the long run 🏎️ 

The platform still holds potential, especially with its technical approach, but unless it can improve developer onboarding and retention, it's going to have a hard time keeping up.

For now, key figures are jumping ship, and until Cardano finds a way to address its developer concerns, it's difficult to see a bright future 🫢 

Cardano has some wins - its proof-of-stake consensus, lower energy consumption compared to, say, BTC, and large-scale ambitions - but the departure of major devs might show cracks in what was once seen as a blockchain for the future.

SIM swap scams: the silent crypto thief that needs to go

Crypto security is no joke, but what if your biggest vulnerability is something as basic as your phone number?

SIM swap scams have been creeping up on unsuspecting investors, turning their mobile phones into backdoors for hackers 🤯

• In one of the most infamous cases, crypto investor Michael Terpin lost $24 million worth of crypto to a SIM swap hack back in 2018.

• But here’s the thing - the guy isn’t just going after the hacker. He’s suing AT&T for their alleged role in allowing this breach to happen ☎️ 

• He claims that their negligence directly led to his financial loss, and now, he’s looking to collect $24 million in damages 👇️ 

What’s a SIM swap scam?

The SIM swap scam is sneaky but simple.

• Hackers trick your phone provider into transferring your phone number to a SIM card they control 📞 

• From there, it’s a breeze for them to reset your account passwords, bypass two-factor authentication, and get into your crypto wallets, especially dangerous if you hold large amounts of crypto on CEX.

The scary part is that most phone companies aren’t doing nearly enough to stop it. Even with PINs and added security measures, hackers are finding ways to convince customer service reps to make the switch. And once they have your number, you’re pretty much at their mercy 👇️ 

Legal fallout for telecom companies

• The lawsuit, which has been ongoing since 2020, argues that AT&T failed to protect his account.

• If he wins, it could pave the way for a wave of lawsuits holding phone companies accountable for their lackluster security protocols.

It’s not the first time he done it, either. Terpin already won a $75.8 million judgment against Nicholas Truglia, a buddy of the hacker involved in the SIM swap. But this time, he’s after the telecom giant that let it happen in the first place.

And here’s where things get real. If one of these cases sets a good precedent, telecom companies might have to start taking SIM swap scams seriously, or they could face more multi-million-dollar payouts 💵

This isn’t just about one dude and his crypto. SIM swap scams have been on the rise, and it’s becoming a widespread issue for anyone with a mobile phone and a crypto wallet. These attacks are getting more sophisticated, and the scammers aren’t just targeting the richest of this world 🧐 

Other worthy reads

Total FDV / MC of coins launched in 2024:

ETH stats, as always, are off the charts:

An investigation into how North Koreans have woven themselves into the crypto industry:

MEMES

That's all for now, frens.

We'll meet in a week! And remember, the market conditions are temporary, but our commitment to building a better DeFi is here to stay. Thanks for joining us, and we look forward to seeing you back next week. Cheers!

Yours, The 🔥 Team

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