Daily Digest 11/12

Insight on the biggest stories of the day.

DAOs are starting to become a big topic of discussion as people are learning and warming up to the idea of a decentralized organizations. Wyoming was the first big mover by becoming a DAO state passing legislations that allowed DAOs to operate as LLCs.
Shapeshift DAO has announced today that they will be partnering with the Stablecoins platform ICHI to be able to peg their oneFOX tokens to the U.S. dollar. This means that these tokens will also be backed by the native FOX tokens and USDC.
This will help the native FOX tokens in terms of long term price movement. Instead of having to sell the FOX tokens users are able to convert them to oneFOX which will result in the FOX token being burned taking them out of circulation.
Governance is a large part of the DAO process and innovation. To encourage users to participate Shapeshift DAO airdropped over 900,000 tokens to users in July.

Tether has long been one of the most scrutinized and controversial assets in the cryptocurrency space. It has even been described by some as the crypto version of the Federal Reserve because of how many tokens they print for loans to exchanges.
A report provided by Protos showed that between 2014 and 2021 that just two market makers received $60.3 billion in USDT in that time. This accounted for almost 55% of all Tethers outbound volume all time.

Sam Bankman-Fried, who is the CEO of FTX and the CEO of Alameda research, received $36.7 billion or a third of the total USDT produced. The report also shows that FTX has payed 86% of that back just in the last 12 months.
Cumberland is important in these finding to since they received 23.7 billion and they are a major liquidity source for Binance who has also gotten tied up with some of Tethers issues.
Tether was also just ordered to pay $42 million to the CFTC for breaches of the Commodity Exchange Act.

After taking a bit of a dip the other day, possibly due to the news of Evergrande defaulting on their payments, the price of BTC has started to hang strong in the days before its taproot update. This update is supposed to increase privacy, smart contract functionality, and lower transaction fees.
“Although this behavior is quite common each time we approach [cryptocurrency] record highs, the current rally feels less mania driven and more supported by fundamentals, such as the Taproot upgrade, and genuine demand from investors,” said Coinbase.
It is important to note that as the price of BTC did drop to $63,000, from an all time high of $69,000, a large amount of long positions were liquidated to the tune of $64 million. ETH futures are up in the same time as traders have a lot of open interest at the $5,000 price level.

In other market news Facebook is officially changing their name to “Meta” today and all of the met averse based tokens are starting to move again. Morgan Stanley also described the met averse as a “virtual world for immersive co-experiences that is persistently available and where users can explore vast numbers of experiences concurrently.”

Loopring has been soaring since it was rumored on Reddit that they were partnering with Gamestop. Since then the price has been pumped by the GME whales on the social media platform.
The full details of what will come from that partnership is still not very clear but that will not stop the trolls from taking advantage of the opportunity.
These scaling solutions are also taking a rip since the latest ETH update, EIP-1559, has sort of failed in its plan to reduce high gas fees. Since the update the fees are either low or high with no in between. Generally during the day gas fees have been in the $100 to $500 range.
These scaling solutions will continue to be important going forward as using DeFi as the barrier to entry for regular users keeps increasing.

BTC Bounces at Support