While the crypto markets remain in a state of “fear”, as evidenced by the Bitcoin Fear and Greed Index, the industry as a whole gives us reason to be optimistic. Large project funding rounds, increased use of decentralized governance models, and new enterprise-quality product offerings suggest that cryptocurrencies are more than just everyday chart patterns.
Crypto Biz’s newsletter this week looks at a new grayscale product that gives accredited investors more ways to bet on so-called “Ethereum killers”. We also document two funding stories and bring you the latest Bitcoin (BTC) bond developments in El Salvador.
Grayscale Launches Smart Contract Fund for Ethereum Competitors
Grayscale Investments, the world’s largest digital asset manager, has officially launched its 18th investment product targeting Ethereum competitors. The former Ethereum Grayscale Smart Contract Fund, also known as GSCPxE, will provide access to seven smart contract platforms: Cardano, Solana, Avalanche, Polkadot, Polygon, Algorand and Stellar. Accredited investors can now access known Ethereum competitors via GSCPxE. While Ethereum remains the king of the decentralized applications (DApp) market, the term “decentralized finance” (DeFi) has become much more equal. Only time will tell if the aforementioned Ethereum killers become popular with institutional investors.
Ex-Polychain GP Introduces $125M Cryptocurrency With DAO Governance Ambitions
Former general partner of Polychain Capital, Tekin Salimi, has taken a new approach to funding crypto startups. His new fund, called “dao5,” will provide governance tokens to crypto entrepreneurs representing a stake in a future decentralized autonomous organization known as the DAO. Selimi plans to turn the fund, currently valued at $125 million, into a DAO owned by its founder by around 2025. In other words, each beneficiary will have an overview of all other projects in the portfolio, a feature Selimi says will improve collaboration between project founders. Crypto investors will learn more about DAOs in the coming years as more industry leaders seek new corporate governance models.
Chip Giant Qualcomm Launches $100M Metaverse Fund
Semiconductor giant Qualcomm has entered the Metaverse sector by launching a $100 million fund to support projects at the intersection of augmented reality (XR), artificial intelligence (AI) and augmented reality (AR). A new fund called the SnapDragon Metaverse Fund aims to support developers who are pushing the boundaries of spatial computing. Qualcomm bills itself as the “ticket to the house of poetry” with its wireless and AI technologies. After Facebook changed its brand name to Meta and focused on the economy of the metaverse, it was only a matter of time before other big tech games emerged.
El Salvador Delays Bitcoin Bond Issue Until September: Report
The Salvadoran government has reportedly delayed the issuance of its bitcoin-backed bonds due to adverse market conditions caused by the geopolitical crisis in Eastern Europe. Finance Minister Alejandro Celaya told local news that the so-called “volcano bond” that will be used to fund El Salvador’s Bitcoin City will be rescheduled no later than September. Come to think of it: what does the war in Ukraine have to do with the demand for bitcoin? Keep in mind that legacy finance still sees crypto as a risky asset and traditional investors are likely to cut their holdings during times of uncertainty. However, Bitcoin and the broader cryptocurrency markets have weathered well in the midst of the geopolitical crisis. Bitcoin broke the $43,000 mark this week, recovering more than 30% from its January bottom.
before you leave!
Cryptocurrency in a bear market? It depends on how you define it. If digital assets represented any other market, we would classify the last four months as a major downtrend. In this week’s market report, I sat down with fellow analysts Jordan Fenist, Marcel Beechmann, and Benton Yuan to discuss the best crypto projects to buy and hold in a bear market. You can check out the full replay below.