Bitfinity Weekly: Art & Vibes
Welcome to Issue #144 of Bitfinity Weekly for our #BITFINIANS community. If this newsletter was forwarded to you, sign up here.
What's in Today's Email?
- Bitcoin Bytes
- Global Crypto News
- In the IC
- This Week in our Blog
- Tweet of the Week
- Meme Time
- A Matter of Opinion
Bitcoin Bytes
Partner Party: Bitfinity announced a partnership with Nomis, a crosschain reputation protocol that allows users to mint a verified reputation score. By utilizing Bitfinity, Nomis will be able to implement its reputation system across Bitcoin as well as EVM chains.
Bulk Buys: El Salvador purchased another 11 Bitcoin, just days after amending national crypto laws in order to comply with a $1.4 billion IMF (International Monetary Fund) loan terms. While the country has walked back some key pro-crypto laws, such as accepting tax payments in Bitcoin, it has reaffirmed its commitment to growing the national reserve in Bitcoin. El Salvador's Bitcoin treasury now sits at 6,067 $BTC.
Festival Season: The Aeons community is hosting an art festival this month. The event is supported by Xverse, Arch Network, Mintify and BLIFE Protocol, and boasts a prize pool that includes Ordinals, clothing merch, SATS, and more. Artists of all skill levels are invited to join. Submissions are open from Feb 7-17th. Community voting will take place from Feb 18-23.
Mystery Moves: An unknown Bitcoin whale from the Satoshi era moved 50 $BTC from a dormant wallet recently. The move was notable for two reasons: there was no test transaction conducted beforehand, as is typical of large transactions, and used a Pay-to-Public-Key (p2pk) output format, sparking speculation about quantum risks in older private keys.
Global Crypto News
Henlo and Furthermore: Berachain layer-1 blockchain launched its mainnet on Thursday. Designed to compete with EVMs and Solana, the "proof-of-liquidity" chain aims to realign incentives between validators, applications, and users. Native token $BERA was distributed on launch day, though the chain utilizes three different native tokens for its novel consensus mechanism.
The Hammer: THORChain's mode operators approved a plan to solve the protocol's liquidity crisis, converting its defaulted debt into equity tokens. THORChain is an L1 network that operates as a cross-chain decentralized exchange, and has run into a significant debt problems, leading to a complete pause of ThorFi redemptions for 90 days. The restructuring plan would create a liquidity pool allowing creditors to exit, though it has been met with criticism.
The Trump Card: President Trump's media company, Trump Media & Technology Group (TMTG), has announced trademark filings under its financial tech brand, Truth.Fi. It aims to launch several exchange-traded funds, including a 'Bitcoin Plus' ETF. According to Bloomberg, there are also plans to introduce SMAs (Separately Managed Accounts) with themes related to Trump's political campaigns like 'Made in America' and 'U.S. Energy Independence'.
In the IC
Burning Hot: The Internet Computer Protocol crossed 1 million $ICP burned, making the network the 6th highest revenue-generating Layer-1. ICP continues to rank high in statistical lists, coming in 8th in the top ten list of L1 and L2 chains based on 30 day fees, according to Token Terminal.
(A)ICP: The AI revolution is being built on ICP. The DFINITY Foundation is now inviting grant proposals for projects using ICP as infrastructure for Artificial Intelligence frameworks. Projects aiming to use Internet Identity for delegation to agents, as well as compatibility with existing ICP-based frameworks (such as Anda) are encouraged. Submissions are currently open for all builders.
Oh I See: OISY Wallet's latest update is now out, with significant upgrades to the user experience. Integration of key ICP ecosystem projects include KongSwap optimization, the inclusion of Water Neuron, and the open swaps from $ICP function has also been improved.
This Week in our Blog
The Bitcoin whitepaper laid the foundation, but what about the missing pieces? Discover the untold gaps and hidden challenges that shaped Bitcoin beyond its original blueprint! 🚀🔍
Fred
Tweet of the Week
All possible on Bitfinity. https://t.co/tftXVUal96
— Bitfinity Network (@bitfinitynet) February 6, 2025
Meme Time
A Matter of Opinion
THORChain, a decentralized liquidity protocol known for enabling cross-chain asset swaps, has recently encountered significant financial challenges, leading to a major liquidity crisis. In recent weeks, the platform announced the suspension of its lending and savings programs, THORFi, due to mounting insolvency risks, with liabilities amounting to approximately $200 million in Bitcoin and Ethereum.
The crisis was precipitated by a combination of factors including the rapid minting of $RUNE, THORChain's native token, to meet the demands of its lending services, which led to an inflationary pressure on $RUNE's value. This situation was exacerbated by a sharp decline in $RUNE's market price, dropping over 30% in a short span following the announcement of the pause, signaling investor concern over the platform's financial health.
In response to these challenges, THORChain has now embarked on a significant restructuring effort. This week, the protocol's governance body approved a plan to convert its defaulted debt into equity through the issuance of a new token, $TCY (Thorchain Yield). This move aims to stabilize the platform by making users of the lending and savings programs equity stakeholders, with each dollar of debt equating to one $TCY token. Furthermore, this new token is set to receive 10% of THORChain's protocol fees indefinitely, providing a long-term incentive for liquidity providers.
However, the community's reaction on social platforms has been mixed, with some expressing optimism about the restructuring plan's potential to salvage the platform, while others question the complexity and effectiveness of converting debt into equity. Critics argue that the decision to pause lending operations might be akin to a "bankruptcy freeze," drawing comparisons to past crypto collapses like Terra/Luna and even FTX.
Despite this turmoil, THORChain's core functionalities, including cross-chain swaps, remain operational, ensuring that the network's primary services continue without disruption. The coming months will be crucial in determining whether this restructuring can navigate THORChain through its current liquidity crisis and restore confidence among its user base.
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