VC eyes on Crypto 2024 👀
Crypto projects on venture capitalists lists for 2024. Pope issues AI warning. USD hits 4-month low, BTC trader predicts 10% drop. Arbitrum suffers partial outage. AI news anchors on Channel 1 AI.
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Venture capitalists (VCs) are cautiously optimistic about the crypto space in 2024, and they're keeping a close eye on some key areas, reports DL news.
1. Crypto Infrastructure
Projects building the core rails of the blockchain ecosystem, like interoperability bridges, scalability solutions, and security tools. It's less prone to hype and market fluctuations, and its success lays the foundation for future applications.Examples include Cosmos, Polkadot, and Filecoin.
What? Projects that utilise technologies like restaking and fully-homomorphic encryption. These advancements can improve the security and efficiency of blockchain transactions
Jack Melnick, head of DeFi at Polygon Labs
“Infrastructure projects currently receive the lion’s share of venture capital deployment due to the straightforward narrative around ‘owning the base layer.”
2. Web3 Gaming
Play-to-earn (P2E) and NFT-based games have seen explosive growth, and VCs are looking for projects with innovative gameplay, sustainable economics, and strong communities.
Carl Hua, CTO and investment partner at Shima Capital
“Much of our attention throughout 2023 has been on infrastructure and web3 gaming deals, and I don’t foresee us straying too far from this in 2024.”
Read: Game On 🎮
3. DeFi Applications
While DeFi may have seen its share of challenges in 2023, it presents the potential in innovative applications that address real-world needs, like decentralised lending and synthetic assets.
What? Projects that are working on staking and yield-bearing stablecoins. These applications can provide users with new ways to earn returns on their crypto assets. Strong tokenomics and clear value propositions are likely to attract VC attention.
4. Zero-Knowledge (ZK) Proofs and Account Abstraction
Zero-knowledge proofs allow users to prove that they have certain information without revealing the information itself. Account abstraction allows users to interact with blockchains without having to expose their private keys.
What? Projects leveraging ZK proofs for applications like identity management and data marketplaces.
Gabriel Gareth Foo, DeFi growth lead at Mantle Network
“Soon we will see users interacting with permissionless smart contract applications through their mobile apps without even knowing it.”
Pope Francis, the Catholic Church
""Artificial intelligence, like any powerful tool, can be used for good or for evil …We must ensure that it is used for the benefit of all, and not for the enrichment of a few or the oppression of the many."
That's the pick from the 3,412-word letter by Pope Francis — the head of the Catholic Church.
It warns of the potential dangers of AI to humanity and calling for an international treaty to regulate its development and use.
The letter came as the Roman Catholic Church prepares to celebrate World Day of Peace on Jan 1, 2024.
TTD Dollar 💲
US Dollar Hits 4-Month Low
The US Dollar Index (DXY), which measures the dollar's strength against a basket of six major currencies, has fallen to its lowest level since mid-August.
Bitcoin Trader Predicts 10% Drop
A popular Bitcoin trader, Crypto Ed, predicts a further 10% drop in the DXY.
This prediction is based on the historical correlation between DXY weakness and Bitcoin strength.
If the DXY continues to decline, it could indeed provide tailwinds for Bitcoin and other risk assets.
This decline is likely due to several factors
Declining inflation: Recent data suggests that inflation in the US is slowing down, potentially leading the Federal Reserve to pause or even reverse interest rate hikes.
"Pivot" bets: Investors are anticipating a shift in the Fed's monetary policy, which could boost risk assets like stocks and Bitcoin.
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TTD Outage 😡
On December 15th, 2023, the Arbitrum layer-2 network experienced a "partial outage" due to a significant surge in traffic.
The outage affected the network's sequencer, a critical component responsible for processing and ordering transactions.
Duration: The outage lasted for approximately two hours, causing disruptions to transactions on the network.
Cause: Developers attributed the outage to the surge in traffic, exceeding the network's capacity. This suggests potential scalability limitations under high demand.
Impact: The outage impacted users on the Arbitrum network, potentially delaying transactions and causing inconvenience. However, the full extent of the impact is unclear.
Current status: As of December 16th, 2023, the network appears to be operational again. Arbitrum's team is working on resolving the issue and plans to provide a post-mortem analysis soon.
This is not the first time Arbitrum has experienced outages. In June 2023, a software bug caused a similar two-hour outage.
Arbitrum remains the largest Ethereum layer-2 network, with a significant total value locked (TVL) and transaction volume.
This incident highlights the importance of scalability and robustness for layer-2 networks as they seek to handle increasing transaction volumes.
TTD Anchors ⭐
AI-Generated News Anchors to Deliver Personalised Reports
Channel 1 AI, a new AI-powered news platform, is set to launch in early 2024.
It will utilise AI-generated anchors to deliver personalised news reports to viewers.
Channel 1 AI was founded by entrepreneur Adam Mosam and producer Scott Zabielski.
Personalised News Delivery: Will leverage user data and preferences to tailor news reports to individual viewers.
Concerns about Fake News and Job Displacement: Critics of AI-generated news express worries about the proliferation of fake news and the potential displacement of human journalists.
Ensuring Accuracy and Trustworthiness: Commitment to accuracy and reliability. The platform will rely on trusted news sources and human editors to verify information and maintain journalistic standards.
With the 2024 US elections approaching, concerns about AI-generated human replicas have intensified. Senators propose legislation to curb unauthorised use, while media companies grapple with the technology's potential benefits and risks.
TTD Surfer 🏄
A study by European nonprofits found Microsoft's Bing AI chatbot gave wrong election info 30% of the time, and evasive answers 40% of the time. Microsoft plans to fix it before the 2024 US elections.
Taiwan is investigating crypto betting on elections, as residents use Polymarket to gamble on the upcoming presidential race. This is illegal and could lead to jail time or fines.
Brazil has passed a law taxing crypto assets held abroad by its citizens, starting in 2024 at a 15% rate. The law also taxes profits and dividends from other foreign investments.
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