GM, frens! ☕️ You know that quiet before the storm? Yeah, this week feels like that.

The markets might seem calm, but we all know something’s always brewing beneath the surface.

Let’s enjoy the stillness while keeping an eye on the horizon, of course 👀 

Today, we’re talking about:

• 🪖 2024 War on Crypto stats: SEC has MILKED crypto for $4.6 BILLION

• 🤡 FriendsTech devs pull the rug and walk out with $44M

• 💵 PayPal and Venmo integrate ENS names: win for crypto adoption?

• 👨‍🌾 Tether digs into agriculture with $100M bet

You know how sometimes it’s not about chasing every storm but weathering it? That’s where our Degen Portfolio stands today - steady as a rock. We adjusted it as per the vote and purchased ENA - let’s see how this will play out!

Stability may not grab headlines, but in this game, it’s the kind of consistency that builds the foundation for future moves 📊

LFG!

2024 War on Crypto stats: SEC has MILKED crypto for $4.6 BILLION

• The SEC’s battle with the crypto space has been nothing short of relentless in 2024, and the numbers speak volumes - $4.68 BILLION in fines collected so far, and the year’s not even over.

• While the agency claims these hefty fines are part of a broader initiative to protect investors and secure the market, many in the crypto community aren’t buying it 🙄 

This record-setting enforcement spree feels less like an effort to safeguard users and more like a cash grab to fill the SEC’s coffers 👇️ 

Breaking records but not building trust

The SEC’s 2024 fine collection represents a shocking 3,018% increase compared to the previous year 💰️ 💰️ 💰️ 

One of the biggest contributors to this massive total was Terraform Labs. The implosion of TerraUSD (UST) and Luna sent shockwaves through the market, and the SEC responded with an unprecedented $4.47 billion fine, a figure that nearly accounts for the bulk of the agency's 2024 takings 💸 

Critics in the industry aren’t holding back, though.

• The general sentiment is that the SEC’s actions seem more about making examples out of high profile projects than about building a safer environment for investors.

• It feels like the agency is using enforcement as a revenue stream, leveraging lawsuits and hefty fines as a form of "regulation by punishment" 🤷‍♂️ 

Innovation stifled by fear

It’s not just the fines themselves that have industry insiders concerned. The chilling effect of these enforcement actions can be felt across the whole industry.

Companies that once saw the U.S. as a prime spot for innovation are now weighing their options, with many considering setting up shop in more crypto friendly regions.

The fear is that the SEC's aggressive approach will deter new projects from even getting off the ground 🤔 

• Instead of innovating, the regulatory environment is now one where companies are worried about becoming the next high-profile target.

• The community argues that the SEC's approach is doing more harm than good, as projects increasingly move to decentralized platforms or jurisdictions with clearer rules 🫡 

And the year’s not over yet...

We’re only partway through 2024, and the SEC’s tally is already shattering records.

The big question now is whether the SEC will shift its strategy or double down on its current approach.

As we look toward 2025, the crypto community is left wondering if regulators will continue this heavy-handed enforcement or finally develop a more balanced, transparent framework that allows both safety and innovation to thrive 🫠 

Until then, it’s clear that the SEC’s 2024 War on Crypto is more about lining pockets than protecting investors.

FriendsTech devs pull the rug and walk out with $44M

Friend.tech, a once-promising SocialFi project, abruptly shut down, leaving its investors high and dry while the creators walked away with a massive $44 million 🪙 

The hype train that got derailed

Friend.tech kicked off with a solid run.

• Built on Coinbase’s Base blockchain, it generated nearly $90M in fees. Half of that went straight to the developers, and the project looked promising as users bought tokens (called "keys") to access influencer chat rooms and spaces.

  

• For a while, it accounted for a significant chunk of the Base network’s activity. But fast-forward to today, and it’s a different story 😥 

• The platform’s token dropped significantly and deposits plummeted 92%.

• Things seemed like they were unraveling quickly, and Friend.tech’s team announced they'd transferred control of the project’s admin rights and walked away 🤷‍♂️ 

The project's creators effectively abandoned it while pocketing a fat $44 million. Users? Well, they’re left in the lurch with near-worthless tokens and shattered hopes.

SocialFi’s sustainability aka Token Not Needed? 🤔 

This isn't the first time we've seen a SocialFi project unravel, and it likely won’t be the last. The problem with SocialFi - and crypto projects in general - comes down to sustainability.

Friend.tech's economic model relied heavily on hype, but without a stable, long-term tokenomics plan, it's tough to hold onto value when interest starts to fade.

• Think about it: SocialFi aims to merge DeFi with the social network and influencer craze, where users can invest in or own parts of influencers.

• It sounds revolutionary - until you realize that the demand for these projects often drops after the initial excitement wears off. That’s exactly what happened here 📉 

• Once people realized there wasn’t much substance behind the system (aside from paying to access some chat rooms), the token’s value tanked, and Friend.tech became just another casualty of overhype and under-delivery 🫠 

This raises questions for the SocialFi space as a whole.

Can SocialFi platforms truly build lasting economies around influencers and creators, or are they just hype-driven bubbles waiting to burst? 🗣️ 

If Friend.tech is any indication, the road ahead might be rough. The SocialFi dream of decentralizing content creation and monetizing social interactions sounds great, but the execution often falters when the economics don’t hold up 🪙 

So the team’s decision to walk away with $44 million might have been legal, but it leaves a sour taste for many users and investors.

There’s still room for innovation in merging finance with social networks but projects need to learn from these mistakes before they try again properly.

PayPal and Venmo integrate ENS names: win for crypto adoption?

PayPal and Venmo are stepping up their crypto game, now allowing users to send and receive crypto using Ethereum Name Service (ENS) names 📛 

Instead of having to deal with long, confusing wallet addresses, you can now simply use a ".eth" username, making the process smoother and less stressful.

With over 270 million users combined, PayPal and Venmo are opening the doors for a wider audience to dive into crypto - without the usual headaches 🧠 

Going mainstream

• This is more than just a fancy update - it’s a sign that crypto is becoming part of the mainstream financial landscape. ENS is helping bridge the gap between the complex world of blockchain and everyday “normie” users who just want things to work without a hitch.

• With PayPal already pushing for more crypto friendly features, like launching their own PYUSD stablecoin, this ENS integration signals their commitment to making crypto adoption happen 🤝 

Convenience is key

Let’s face it: adoption isn’t just about who’s using crypto, it’s about how good is the UX 🖥️ 

PayPal and Venmo have nailed the user experience for traditional payments, so it makes sense they’re bringing that same convenience to crypto 🤔 

With simplified addresses and fewer chances for errors, new users might finally feel comfortable jumping into the crypto space. Plus, with more than 2 million ENS names registered and counting, it’s clear this is catching on.

Tether digs into agriculture with $100M bet

“Crypto farming” might be soon getting a different meaning as Tether, best known for USDT, just dropped a cool $100 million into Adecoagro, a major player in the agricultural sector across Latin America 🌴 

Sounds like Tether’s diversifying its portfolio to plant seeds outside the volatile crypto market 👇️ 

Tether's move into agriculture is a pivot that nobody really saw coming, but it's part of their bigger strategy to hedge against crypto’s wild west vibes.

• Adecoagro is a serious player in Argentina, Brazil, and Uruguay, handling everything from milk production to renewable energy.

• By bagging a 9.8% stake in the company, Tether’s showing they’re all about spreading out those risks 🧈 

Tether is probably thinking long-term here. Agriculture might not be sexy, but it’s steady 🌱 

Plus, it’s giving them a foothold in something more tangible. With $118 billion worth of USDT in circulation, Tether’s got the capital to invest in sectors that can weather a storm - and farming’s always gonna be a thing, right? 👨‍🌾 

Despite the side hustle in farming, Tether’s not stepping away from its bread and butter - USDT remains the biggest stablecoin in the game.

With a market cap that overshadows competitors, USDT is still the “digital dollar” for millions worldwide.

Other worthy reads

A thread by @niftynaut on a major CryptoPunk ‘heist’ where Ape #2386 was bought for 10 ETH due to clever maneuvering and an oversight.

Some projects expected this year, according to Minty:

Some stats on the steady growth of the crypto index across apps, users, and transactions.

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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