GM, frens! 🌟

Sometimes it’s just about showing up, vibing with the squad, and keeping the wheels turning.

Hopefully, you’re locking in 🔐 

Today, we’re discussing:

• 🌴 Blockchain and beaches: Thailand’s crypto pilot

• 👀 Five metrics to watch, according to the biggest VCs

• 👊 Polymarket vs. The Powers That Be: betting on truth or just breaking rules?

• 🥷 Trust, nostalgia, and $188,000 gone in a blink

Our W3OF degen portfolio is in full “statue mode” this week - stoic, steady, and not giving much away.

Maybe it’s waiting for the right moment to spring to life, or maybe it’s just perfecting the art of zen 🥲 

Got ideas brewing, insights to share, or just want to talk shop with the frens? Our Discord’s the spot 👈️ 1

Blockchain and beaches: Thailand’s crypto pilot

Thailand’s financial scene is gearing up for a modern makeover as Deputy PM and Finance Minister Pichai Chunhavachira unveils a crypto pilot project in Phuket. Aimed squarely at tourists, the project promises easier crypto transactions for those jetting in with wallets loaded with digital assets.

Crypto beach paradise?

Phuket is Thailand’s crown jewel for tourism, and the government’s banking on its allure to turn crypto-savvy visitors into test subjects for blockchain payments. The idea is to simplify cross-border payments and make spending crypto as seamless as scanning a QR code for your morning pad thai. 

Despite the ambitious tone, Thailand’s crypto adoption is taking baby steps. Pichai’s pilot doesn’t tweak any laws but operates within existing frameworks. It’s a clever move - no need to wrestle regulators, just slide under the radar and see what sticks. 

Thailand isn’t entirely new to crypto. Some small communities have already embraced BTC Lightning payments for daily transactions. Vendors from noodle shops 🍜 to tuk-tuk 🛺 drivers proudly display Bitcoin-accepted signs, a grassroots success story proving crypto’s potential in emerging markets.

Of course, this is just the beginning. Thailand’s cautious approach is a smart move, but it’s also a reminder of how early we are in crypto adoption. The country’s experiment with blockchain powered tourism has the potential to inspire other nations, especially those reliant on international visitors. After all, why exchange fiat when you can spend straight from your wallet?

The big challenge ahead isn’t related to laws - it’s cultural. For crypto to truly take off, the average tourist will need to trust it, understand it, and, more importantly, find it useful. Projects like this might pave the way, but mainstream adoption will depend on how well governments, businesses, and innovators can make crypto feel as intuitive as cash.

Five metrics to watch, according to big VCs

2024 was a year of chaos, scams, and breakthroughs - so what’s next? Now, a16z (Andreessen Horowitz), one of the biggest VCs in the space has a few ideas, tossing out five trends they think will shape crypto in 2025 💭 

Let’s break down what they said 👇️ 

1. Mobile wallets: everyone’s favorite app

A16Z says mobile wallets are crypto’s front door 📱 

• With over 35 million monthly active users, wallets like MetaMask and Phantom have supposedly paved the way for mass adoption. Except most of these “active users” are just cold storage, so they’re not actually doing much.

Takeaway: wallets are growing, but regular users need a wallet that’s idiot proof and useful, old wallets will probably stay glorified balance checkers with abysmal UI.

Btw, certain good wallets are already shaking things up with smarter UX that actually makes interacting with crypto less like rocket science and more like… using a wallet 👀 

2. Stablecoins: everyone loves them, barely anyone uses them IRL

Stablecoins had a moment in 2024. Lower fees made them great for remittances and payments in inflation hit economies (like Argentina) 🪙 

• The “dominant stablecoin payment system” a16z dreams of still doesn’t exist. Right now, they’re just the least chaotic thing in crypto.

Bottom line: Stablecoins are practical, but until they integrate seamlessly with real-world commerce, they’ll remain niche.

3. ETFs: a sandbox for whales

• Bitcoin and Ethereum ETFs finally made it to market, and institutions are cautiously testing the waters. But according to A16Z, here’s the rub: retail investors aren’t feeling the impact yet 🤔 

• With $110 billion in BTC and $13 billion in ETH locked up, they think institutions are poking the market, not diving in 🤷‍♂️ 

Reality check: ETFs are a win for the suits, not the average crypto bro. Expect whales to keep moving the needle while the little guys sit on the sidelines.

4. DEXs vs. CEXs: a fight for relevance

• a16z claims DEXs (decentralized exchanges) are gaining ground on their centralized cousins, but the numbers don’t lie.

• DEXs make up 11% of trading volume. Sadly, that means Binance and Coinbase aren’t exactly shaking in their boots. For now.

5. Fees: misunderstood

Solana outpaced Ethereum in total transaction fees collected in 2024.

• That’s big… until you remember Solana’s fees are dirt cheap. High fees scare people off, but low fees don’t guarantee adoption. It’s a balancing act, and no one’s nailed it yet.

• According to A16Z, paying fees basically translates to paying for the privilege of using valuable tech. So if fees are too high, and people flee. Too low, and your chain becomes cheap fast food dollar menu 🤯 

Thoughts

To be fair, if 2025 teaches us anything, it’ll probably be whether crypto can outgrow its love for hype and start delivering practical, everyday value. A16Z’s predictions paint a hopeful picture, but potential alone doesn’t win over skeptics - or make crypto essential to the average person 🫰 

The space thrives on moonshot thinking, but at some point, the focus has to shift to building tools that people want to use because they’re better, not because they’re trendy.

The real story of 2025 might not be about the flashy metas. Instead, it’ll come down to the quiet, unglamorous work - improving usability and UX, building trust, making blockchain less of a niche experiment and more of a reliable backbone.

That’s where the real wins for crypto adoption will come from, even if it doesn’t make headlines.

Polymarket vs. The Powers That Be: betting on truth or just breaking rules?

Polymarket, the decentralized prediction platform that lets users bet on everything from elections to weather patterns, has regulators clutching their pearls again 🔨 

The CFTC subpoenaed Coinbase, asking for user data linked to Polymarket accounts. Why?

Officially, trading illegal derivatives, but most likely it’s because Polymarket is the one that (knowingly or not) dares to call BS on mainstream narratives by betting on outcomes the “official” polls often get hilariously wrong 🤡 

• During the U.S. presidential elections, millions flooded the platform betting on Donald Trump’s victory.

• Spoiler alert: they were right. While mainstream media and polls tried their best to downplay his chances, Polymarket traders called it weeks in advance, with some bagging payouts worth millions 💰️ 

• And, well, that’s a problem if you’re in the business of shaping public perception. Prediction markets force uncomfortable transparency. They strip away the fluff, fake narratives, and sketchy polls, leaving behind raw, crowdsourced accuracy straight from the market’s point of view. Regulators clearly don’t vibe with that.

This isn’t Polymarket’s first rodeo, too. In 2022, the platform got slapped with a $1.4M fine and geo-blocked U.S. users to avoid further drama.

But U.S. traders didn’t back down - they just turned to VPNs, much to the CFTC’s dismay 🫠 

FBI even raided Polymarket CEO Shayne Coplan in November 2024. That’s when the election hype was really hitting the fan, so the answer was clear for most people in the space.

The recent subpoena of Coinbase suggests the government is digging deeper, possibly to scare participants into submission.

For now, Polymarket stands as a symbol of how DeFi and decentralized platforms can disrupt even the most tightly controlled systems. Even if that wasn’t their original goal 😶 

Whether it survives the regulatory smackdown or not, it’s clear that the genie’s out of the bottle - and no amount of subpoenas can shove it back in.

Trust, nostalgia, and $188,000 gone in a blink

Sometimes scams don’t start with a cold email from a Nigerian Prince or a shady Telegram channel - they start with a “hello” from someone who seems familiar 🤐 

That’s exactly how one man from Canada ended up losing $188,000 👇️ 

• In July, the victim found himself chatting with someone claiming to be a childhood friend from China. The story had all the right details to feel legitimate - reminiscing about shared experiences, dropping names and places that sounded familiar.

• As the weeks passed, the chats moved from casual catch-ups in public forums to private messages ✉️ 

• This is where things took a turn. The supposed “friend” started sharing details about a lucrative crypto investment opportunity, pitching it as a chance to make money together. The victim, caught between the excitement of reconnecting and the allure of easy returns, began to bite 🪝 

By September, the victim started sending money, believing he was funding crypto purchases for an investment the “friend” was managing. The transactions stretched over months, totaling a massive $188,000. The scammer played their part well, keeping the victim engaged and building trust.

But like all cons, it had to end some day 🫣 

In November, the scammer pushed their luck, demanding an additional 30% “verification fee” to release the funds. That’s when the victim finally realized something was wrong.

• When the supposed friend refused to answer direct questions and began applying pressure, the victim reported the incident to local authorities. By then, however, the money was long gone, and police suspect the perpetrator is operating overseas, making recovery near impossible 👮 

This wasn’t a run of the mill scam. The scammer didn’t rely on FOMO or urgency but instead leaned into nostalgia and trust. By posing as a long-lost friend, they sidestepped the skepticism people usually have toward strangers online.

A quiet acknowledgment: in a space built on promises, it’s worth double-checking who’s making them. Sometimes, the most valuable investment you can make is in a bit of doubt 🤷‍♂️ 

Other worthy reads

Good thread by Bebis:

An opinion on FTM - Sonic transition, by Hoeem:

Details on DeFi + AI (DeFAI) narrative:

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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