Crypto's Time to Shine? ⭐
Crypto's Time to Shine? ⭐
The Friday episode features Bitwise's Jeff Park on where markets could go now that Trump was elected. Plus, the weekly news recap.
You are reading the Unchained Weekly newsletter, where we cover all the major news in the crypto space, providing insights into the market's latest trends, regulatory shifts, and technological advancements. Stay informed with your no-hype resource for all things crypto.
In today’s edition:
🔥 Polymarket’s election surge,
⚖️ French regulator investigates Polymarket,
💸 Coinbase listing fee drama,
🪙 Binance’s 97% memecoin death rate,
🐿️ PNUT token goes viral,
🚀 Michigan’s $10M Ethereum bet,
🛠️ OpenSea’s revamp,
and more!
Under Trump, the First Crypto President, Where Will Markets Go?
The crypto world is buzzing with possibilities under a new regulatory approach. In this episode: what friendlier crypto policies could mean, the reason for Uniswap’s token surge, and whether Bitcoin could play a strategic role in national reserves.
With a friendlier regulatory environment in sight, will crypto finally get its moment?
Jeff Park, head of alpha strategies at Bitwise, joins Unchained to break down what a pro-crypto approach in Washington could mean for the industry, why DeFi tokens such as UNI are thriving, and whether Bitcoin has a place as a strategic national asset.
Plus, Park shares insights into how China will respond to Trump’s economic measures and explains what he means by the “radical portfolio” thesis.
Tune in to find out how this new political era could set the stage for crypto’s long-awaited breakout.
Listen to the episode on Apple Podcasts, Spotify, Pods, Fountain, Podcast Addict, Pocket Casts, Amazon Music, or on your favorite podcast platform.
Weekly News Recap
Polymarket Triumphs on Election Night
On Election Day in the US, blockchain-based predictions platform Polymarket handled an impressive 2.9 million transactions comprising $240 million in trading volume without major technical disruptions, according to Blockworks Research.
One French trader, known as “Fredi9999,” made headlines with a $48 million profit on his election bets, which leaned heavily toward a Trump victory. Despite skepticism about possible market manipulation, Polymarket verified the legitimacy of his trades. Polymarket founder Shayne Coplan noted that the platform’s users, including major financial entities, anticipated Trump’s success well before the mainstream media, highlighting how prediction markets can offer insights earlier than traditional news outlets.
In a post on X, Dragonfly managing partner Haseeb Qureshi emphasized that Polymarket’s accuracy surpassed that of traditional pollsters, who had predicted an extremely tight race. “Markets don’t care about ideology—they care about being right,” wrote Qureshi, who also disclosed that Dragonfly is an investor in Polymarket.
French Regulator Scrutinizes Polymarket
The French trader mentioned earlier might have brought doom for all other French people who wanted to do some decentralized betting. French gambling regulator Autorité Nationale des Jeux (ANJ) started an investigation of the platform, crypto news outlet The Big Whale reported on Wednesday. ANJ expressed concerns over Polymarket’s legality in France, noting that while it operates with cryptocurrency, activity on the platform still qualifies as a betting activity, which is restricted under French law.
A source close to ANJ indicated that access to Polymarket may soon be restricted in France, adding to the global regulatory scrutiny facing prediction markets. Polymarket already limits access to users in the US following a settlement with the CFTC.
Ethereum Researchers Exit EigenLayer Roles Amid Conflict Concerns
Ethereum researchers Justin Drake and Dankrad Feist have stepped down as advisors to EigenLayer, citing concerns about perceived conflicts of interest. The resignations follow a backlash earlier this year when the two accepted substantial token allocations from EigenLayer, a project that enables crypto applications to leverage Ethereum’s security via a process known as restaking.
The controversy has spotlighted the challenges of maintaining neutrality within Ethereum’s ecosystem. Feist expressed regret, saying he understood why the community viewed his advisory role as a conflict with his position at the Ethereum Foundation. Drake echoed this sentiment, announcing that he would now avoid all advisory roles and investments, a decision that goes beyond the Ethereum Foundation’s new conflict-of-interest policy.
Their departure also comes as EigenLayer’s EIGEN token continues to struggle, with its price falling nearly 40% since launch.
Coinbase Listing Fees Spark Controversy Among Crypto Leaders
Coinbase CEO Brian Armstrong reiterated this week that token listings on the exchange are free, but prominent crypto figures have claimed otherwise. Armstrong’s comments on X came in response to Moonrock Capital’s Simon Dedic alleging that Binance had demanded 15% of a project’s tokens to list on its platform. Armstrong countered by inviting projects to list on Coinbase without any fees through its Asset Hub.
However, Tron founder Justin Sun and Yearn Finance founder Andre Cronje disputed Armstrong’s assertion. Cronje alleged Coinbase had requested hundreds of millions in fees over the years for “Earn” campaigns tied to listings. And Sun added that Coinbase once asked for 500 million TRX (worth $80 million), plus a $250 million BTC deposit, for a TRX listing.
Coinbase maintained that these fees only relate to optional services like Earn and Custody, but critics argue they effectively serve as high listing costs.
Binance Report Finds 97% of Memecoins Have ‘Died’ in the Market
A new report from Binance Research revealed that 97% of memecoins launched in the past two years have effectively "died," with trading volumes plummeting to near zero. Despite these dismal survival rates, the appeal of memecoins remains strong, with 75% of current tokens created in just the last year, according to Binance’s research team, led by Joshua Wong.
The rapid growth of memecoins stems from their simplicity and ease of creation on platforms such as Solana’s Pump.fun and Cardano’s Snek.fun, which facilitate low-cost token launches. Yet, only a few tokens, notably Dogecoin and Shiba Inu, have maintained a lasting presence in the market.
The report also highlighted concerns over what it calls “cabals,” or groups promoting pump-and-dump schemes that take advantage of retail investors using them as exit liquidity. Still, Binance researchers believe memecoins can evolve, suggesting that future tokens with unique, long-lasting narratives and real-world use cases could sustain broader appeal.
PNUT Surges Fueled by Viral ‘Peanut the Squirrel’ Phenomenon
Speaking of memecoins, the new coin PNUT—based on the internet-famous “Peanut the Squirrel”—has become a viral hit. Launched a week ago on the Solana-based platform Pump.Fun, PNUT reached a market cap of $135.5 million before declining to around $110 million.
Peanut was a domesticated squirrel that was seized and euthanized by New York authorities, becoming a social media sensation. After PNUT was created, its popularity even entered the U.S. political scene, with figures such as Donald Trump Jr. and Elon Musk referencing the coin. Musk, a known memecoin enthusiast, tweeted, “Vote For PNut! For Liberty! For Freedom!”
Michigan Pension Fund Takes Bold Step with $10M Ethereum Investment
The State of Michigan Retirement System has invested $10 million in Grayscale's Ethereum ETF, surpassing its $7 million stake in spot bitcoin ETFs. This decision positions Michigan as a rare public fund betting on ether over bitcoin, despite recent market uncertainties surrounding ETH.
Bloomberg ETF Analyst Eric Balchunas commented, “Pretty big win for ether, which could use one,” noting the significance of this contrarian choice. While many investors favor bitcoin as a safer crypto asset, Michigan’s substantial ether investment signals confidence in its long-term value.
In related news, a UK pension fund allocated 3% of its assets to bitcoin, marking the first such investment in Britain. Cartwright, the pension specialist that guided the fund’s investment, also announced plans to create a Bitcoin Employee Benefits program that would allow companies to pay bitcoin directly to their employees’ wallets.
Meanwhile, major TradFi institutions keep choosing Ethereum for their crypto projects, with UBS launching a tokenized money market fund on Ethereum. The move follows forays by BlackRock and Franklin Templeton into blockchain-based funds backed by traditional assets.
Robinhood and Kraken to Launch New Global Stablecoin Network
In a move to expand stablecoin use and challenge industry giants, Robinhood and Kraken have joined forces with Anchorage Digital, Galaxy Digital, and Paxos to launch the Global Dollar Network. The new initiative is centered around a stablecoin called USDG that’s issued by Paxos on the Ethereum blockchain, and aims to offer a regulated alternative in a market largely dominated by unregulated players such as Tether.
Kraken co-CEO Arjun Sethi pointed to the limited competition in the stablecoin sector, suggesting that USDG could help “accelerate new stablecoin use cases” with a more equitable approach. Anchorage Digital’s Nathan McCauley said that USDG offers fast transactions and cross-border settlement options, catering to the demand by institutional finance for stablecoins.
Wintermute Pushes for Revenue Share for Ethena’s sENA Holders
Market maker Wintermute has introduced a proposal to Ethena’s governance that would enable staked ENA (sENA) token holders to benefit from the protocol’s revenue. Despite Ethena generating substantial income through its USDe stablecoin, sENA holders currently do not share in those earnings.
Wintermute’s proposal urges the Ethena Foundation to clarify both historical and future revenue distribution, suggesting that sENA holders deserve a cut. The proposal stopped short of recommending specific figures, instead asking Ethena’s risk committee to outline guidelines for implementing the revenue-sharing model.
Following this proposal, ENA saw a surge in price, jumping approximately 25% on the news.
OpenSea Plans Major Revamp as NFT Market Stalls
NFT marketplace OpenSea is set to unveil a new platform in December, marking a significant overhaul amid challenging times for the NFT market. Co-founder and CEO Devin Finzer announced on X that OpenSea has been “rebuilt from the ground up” to fuel innovation. “Sometimes you have to take a step back and reimagine everything,” he stated, hinting at ambitious updates without providing any specific details.
OpenSea, whose trading volume peaked at $5 billion in January 2022, has seen a dramatic decline, with October's volume down by nearly 99% at $46 million. Yet, excitement around the new platform has driven a 62% increase in daily trading volume to $5.15 million, according to DappRadar, whose head of content, Robert Hoogendoorn, noted that a surge in user interest may stem from speculation about potential airdrops.
