JZL Capital Blockchain Industry Weekly Report No. 27: The assessment of the first half of the year is over, and the market rebound is lacking
Overview of the week
first level title
- Jae Kwon returns to the universe, will he end up being the "soul man" of the universe?
1. Industry dynamics last week
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1. Industry dynamics last week
Last Friday ended the first half of 2022, and the crypto market also ended the most serious month of market value dive in history. Throughout June, Bitcoin fell by 37.3%, and Ethereum fell by 48.31%. In addition to the downturn, of course, it also includes the ongoing "deleveraging" of the encryption market itself. Whether it is a centralized or decentralized asset management platform, there has been unprecedented debt settlement or TVL shrinkage in the past two months. According to Glassnode The data shows that the DeFi platform led by Ethereum lost 133 billion US dollars of assets out of thin air in the nearly six weeks after the LUNA thunderstorm. The leverage obtained through the DeFi protocol continued to accumulate during the bull market, and the highest Ethereum TVL exceeded 250 billion US dollars. The current figure is only $72 billion. In addition, the centralized asset management platform also led to various runs and insolvency as the market fell. Last week, Bitcoin closed at 19048.1, a decrease of 10.7% from the previous week. The market still rebounded vigorously. There were only 2 positive lines in the past 13 weeks, and the short-term market rebound was lacking.
Last week we shared the importance of GBTC to several centralized institutions, and their final ruling on 7.6 when they will be converted to ETFs by the SEC. However, the SEC announced on 6.30 last Thursday that it rejected Grayscale's application to convert its $13.5 billion Grayscale Bitcoin Trust into a spot ETF, and sentenced GBTC to a "death penalty" in advance. At the same time, it was sentenced to death There are also its two major currency holding institutions, 3AC and BlockFi, of which 3AC applied for bankruptcy protection through the New York court two days later, and the founder of the Internet, Zhu Su, is also selling his assets and real estate. At the same time, there were rumors of acquisitions by BlockFi. In the end, BlockFi received a credit line of 400 million US dollars and a variable price acquisition agreement of 240 million US dollars provided by FTX US, totaling 680 million US dollars. At the same time, Voyager Digital, another encrypted asset management platform affected by 3AC, also suspended transactions, deposits, withdrawals, and loyalty rewards. Since 3AC failed to repay 15,250 bitcoins and a loan of 350 million US dollars as required, a total of about 6.5 million-dollar assets.
In terms of U.S. stocks, the U.S. Department of Commerce released the PCE price index for May last week. The PCE price index for May was 6.3%, which was better than the market expectation of 6.4%, equal to the previous value, and the smallest increase since November 2020. At the same time, the core PCE has also shown a downward trend, indicating that inflationary pressures may ease. However, after the release of the data, US stocks only rose in the short term, and the rebound was weak. But it is worth noting that the gap between the CPI and PCE in the United States is widening. The CPI inflation data rose to 8.6% in May, a 40-year high, while the PCE data was released more than ten days later than the CPI. According to market analysis, the PCE data fell moderately It may not be enough to affect the market. It still depends on the release of CPI data on July 13, which can influence the market trend. In addition, the Federal Reserve’s interest rate hike in early July is very likely to continue the expectation of 75 basis points, plus the release of the second quarter financial reports of major companies However, the market is expected to remain ugly in July.
2. Macro and technical analysis
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2. Macro and technical analysis
At the end of the month, the Federal Reserve will hold the FOMC meeting in July. In the short term, the market will fluctuate sideways and the center of gravity will move downward. The follow-up will still be a long-term trend of downward shock. We judge that the Fed will still be absolutely hawkish in the third quarter. It is expected that the Fed will meet at the end of the fourth quarter. Relatively dovish.
BTC has been unable to stand firm at 20,000 USDT. We judge that the short-term rebound may not be far away, but there will be a certain amount of room for decline in the third quarter.
The rebound of ETH is slightly stronger than that of BTC, and the short-term rebound is stronger.
The Nasdaq index fell back to around 11,000. The short-term recession is more obvious, and the market sentiment is poor.
U.S. bond rate: The 2-year U.S. bond fell back to around 3. In the short term, with the unexpected release of sentiment, we judge that 3.5% is basically the high point of the year, and the possibility of a new high in the future is small.
Ahr999: 0.263, this position is valuable.
MVRV: 0.86, the cost performance is the same as Ahr999.
Number of BTC addresses: The number of addresses holding less than 100 coins is still entering the market rapidly, and the number of addresses holding more than 100 coins has dropped slightly.
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3. Summary of Investment and Financing
1. Investment and financing review
3. Summary of Investment and Financing
1. Investment and financing review• During the reporting period, 33 investment and financing events were disclosed, with a financing of approximately US$2.2 billion. In terms of specific tracks, 22 projects on the Web 3.0 track accounted for nearly 67%, 4 projects on the Defi track, 2 projects on the Cefi track, 4 projects on the Infrastructure track, and 1 on the NFT track;• During the reporting period, one project with a financing scale of over 100 million, that is, Unizen, a cross-DEX and CEX transaction aggregation platform deployed on BNB Chain, received 200 million US dollars from Global Emerging Markets"
investment commitment
•Jump Trading Group（"The US$200 million is not a direct investment, but will be released gradually based on milestones and performance.2. Institution of the week - Jump TradingHereinafter referred to as "Jump") under Jump Trading LLC (
Hereinafter referred to as "Jump Trading"
•) is recognized in the industry as one of the world's top quantitative trading institutions, applying cutting-edge software and hardware technologies, relying on sophisticated algorithm research systems, to conduct fully automated high, medium and low-frequency transactions on major exchanges in the world. Jump brings together data research experts and experienced technical developers from the world's top universities, including supercomputer experts, senior software engineers in Silicon Valley, and members of the International C++ Standards Committee;•In addition, Jump participated in the early construction of the Crypto/DeFi ecosystem through its Jump Capital and Jump Crypto, not only providing cryptocurrency transaction support, but also participating in the creation of open source blockchain projects and investing in blockchain ecological start-ups;About Jump Capital: 2012；
•, Bill, Paul, SachChitnis and Mike McMahon jointly established Jump Capital, focusing on early project investment in FinTech, IT & Data Infrastructure, B2B SaaS and Media. In July 2021, Jump Capital completed the seventh round of US$500 million investment fund raising,40% of the funds will be invested in fields such as DeFi, financial applications, blockchain infrastructure and Web 3.0close
•On Jump Crypto: 2021, Jump Crypto was established. In addition to actively participating in encrypted market transactions and market-making activities, Jump Crypto will deeply cultivate the infrastructure and tools for building a blockchain ecosystem. It is worth noting that the origin of Jump and Crypto can be traced back to the internship project co-sponsored by Jump Trading and UIUC Research Park in 2015, which was an internship project for its own quantitative team to explore reserve forces:Team OperationsAlgo Trader, R&D Engineer, Software Engineer and Data Engineer
•team compositionteam composition
•core staff: More than 85% of employees have mathematics/physics/computer background, and more than 50% have doctoral degrees. School recruitment only focuses on Harvard, MIT, Stanford, Princeton, Yale, UCBerkeley, UIUC, Caltech and other few high-efficiency students;
•core staff: Through the influence of Jump Trading in the traditional field, the business expansion of its subsidiaries Jump Capital and Jump Crypto in the crypto field is basically a "dimensionality reduction strike". Jump Capital mainly provides financial support for the target project, while Jump Crypto uses its technical advantages to help the project in many aspects such as code development, data support, and token market making.
4. Encrypted ecological tracking
1.NFTs
secondary title
1) Dynamic summary: gradually polarized
2) Key news:
• In the past 30 days, the market value of the NFT market has followed the rapid decline of the encryption market. At this stage, it is fluctuating around 22.5 billion US dollars. Compared with the previous month, the transaction volume has shrunk significantly. The ETH transaction volume of Ethereum NFT has dropped by 55%, from 1.3 million It fell to 584,000 pieces. If denominated in US dollars, the transaction volume fell from less than 2.6 billion US dollars to 672 million US dollars, a drop of 70%. Restoration, the risk aversion sentiment in the NFT market is also high.
2) Key news:
• NFT artist Molly Dickson partnered with blockchain non-profit organization COWGIRLDAO to raise funds for abortion rights groups across the United States, Molly Dickson issued 10,000 NFT collectibles, each priced between 0.03 ETH and 0.9 ETH between. 98.5% of sales proceeds were distributed to organizations supporting reproductive freedom, Endaoment kept 1.5%, and Dickson donated a total of $3 million in sales after the NFT was fully minted.
• A Meta spokesperson stated that it has begun testing Ethereum and Polygon NFTs on Facebook for some US creators, and will soon add support for Solana and Flow NFTs. Meta product manager Navdeep Singh said users will have an "NFT" tag on their Facebook profile where they can display the NFT they own, representing ownership. Users will be able to connect cryptocurrency wallets to Facebook profiles and also generate NFTs into Facebook posts that users can like, comment on and share like any other post.
• On June 28, the leaseable NFT standard "EIP-4907" launched by the NFT leasing market Double Protocol has passed the final review of the Ethereum development team and has become the 30th ERC standard with a status of "Final" (final version) on Ethereum . The standard realizes the separation of NFT ownership and use rights through the dual-role setting, and is the first to automatically withdraw the use right when it expires. The application of the "ERC-4907" standard will reduce the development and integration costs of utility NFT rentals such as games, metaverses, and membership cards, and make NFT assets more liquid. It is reported that the number of projects that have confirmed the application of the "ERC-4907" standard has reached 12. It is worth noting that the ERC-4907 protocol itself does not implement the leasing function. When leasing, an application-level leasing contract needs to be introduced. Proposals with similar designs in the previous period also included EIP-4400 and ERC-4610, while the EIP-4907 proposal took only 3 months from proposal to approval to enter the final state, which is much lower than other NFT-related proposal processes, so is it true? What is more, a proposal that will bring great innovation to the NFT market has yet to be witnessed.
•Dope Ape Club will become the first NFT issued by BAYC holders through Sigroll's official authorization. Sigroll is the first authorization platform on the P2P chain. Through the platform, blue-chip NFT holders can be directly connected to obtain blue-chip NFT copyright authorization, and blue-chip NFT holders will receive corresponding authorization fees. Through P2P on-chain authorization, NFT holders can empower their assets in commercial application scenarios outside the Collection. Through Sigroll, NFT holders, authorized users, and the community can more efficiently match their needs, and then complete lightweight IP authorization cooperation. At the same time, Sigroll will also help both partners manage their licensing fees and share.
3) Key investments:
•Web3 game start-up Project Twelve (P12) announced the completion of US$8 million in financing. MetaApp, ProjectGalaxy, PrimaveraVentures, CyberConnect, CCV, InfinityLeague, SmrtiLab, etc. participated in this round of financing. The financing will be used to build a sustainable Web3 game ecosystem and launch the Genesis Soul-Bound NFT airdrop. It is reported that Project Twelve has built a full-featured metaverse content engine "Inra" that can be used in games.
4) Project of the week: Doodle Genesis Box
• 24,000 NFT blind boxes of wearable devices will be sold through auction, warming up the second product of the Doodle series, which contains rare clothing and accessories for Doodles 2.
• This auction will use a Bucket Auction where bidders can choose how much ETH to bid in the initial bid and have the option to increase the bid. At the conclusion of the auction, a liquidation price will be determined, and successful bids above the liquidation price will receive NFTs and a refund of any ETH balance earned from calculating individual user bids/liquidation prices. Unsuccessful bids below the liquidation price will receive a full refund.
• Doodles 2 will be a mass-market, identity-focused non-mainstream game where collectors can express themselves through wearables, animated characters, fully licensed music, and more, with the ability to mix and match wearables on doodles Equipment to suit different people's styles.
•• Genesis Box NFTs are Doodles 2's first set of wearables. They will be used as initial financing for the wearable and will be considered a limited edition product. OG Doodles were able to bring their character traits into Doodles 2 and apply them to new Doodles 2 via Dooplicator. In Doodles 2, the wearable via Dooplicator is the most OG-worthy wearable.
• The team has reserved 4,000 slots for distribution of Doodlers and Dooplicator holders at Genesis Factory's IRL event.
• As a top-ranked and beautifully designed blue-chip NFT series, Doodle quickly imitates the growth path of BAYC, and chooses a route where the increment is greater than the value in the bear market, and expands the user base. Although for the benefit of the community, it adopts a novel bucket auction The model hopes to expand the audience while reducing gas fee consumption and unnecessary costs, but it is very likely that the giant whale will have the possibility to control the series. Centralization and decentralization will be the most important points of contention for the expansion of Crypto and NFT in the future. The more active projects that have survived this bear market will give us more inspiration.
2. GameFi blockchain games:
1) Data review
2. GameFi blockchain games:
1) Data review
• During the reporting period, the Gamefi concept tokens followed the market rhythm and experienced a large decline. Among them, AXS, ENJ, GALA, CHR, YGG, ALICE and other project tokens all dropped by more than 20%. IMX is the only Gamefi concept project token with a positive increase during the reporting period, with an increase of 0.5%;
•• During the reporting period, only 2 game projects completed financing, namely 1) Stella Fantasy’s US$5 million seed round financing led by AnimocaBrands and Planetarium; and 2) NFT metaverse game Mech.com with participation from Polygon and others Completed a $6.5 million seed round of financing.2) This week's project – AxieInfinity: Ronin cross-chain bridge restart
•Land pledge: After 2.5 billion U.S. dollars worth of encrypted assets were stolen due to a hacker attack 3 months ago, Ronin Bridge has been restarted after 3 audits by Verichains and Certik. Amount of support. At the same time, with the relaunch of Ronin Bridge, AxieInfinity officially launched the in-game Land Staking function (Land Staking). The project party will provide 11,194.62 AXS rewards to land pledgers every day, and players can only pledge up to 3 pieces of land in one transaction;
•Loss account: In the handling of this hacking incident, except for the 56,000 ETH belonging to AxieDAO Treasury, which has not yet been compensated, the client’s lost assets will be distributed to the newly launched Ronin at a ratio of 1:1 with the strong support of Binance and original investors. Full payment in Bridge;
•future arrangementsabout the game
3. Infrastructure
1）: Although AxieInfinity actively compensates for Ronin sidechain attacks and continues to improve project playability, it does not help much in terms of player participation and AXS token prices.
3. Infrastructure
Cosmos ecology
On July 1, Peng Zhong, CEO of Ignite (formerly Tendermint), the developer of the Cosmos blockchain ecosystem, announced his resignation. Following news of Peng Zhong’s departure announcement, on July 2, CoinDsek reported (allegedly sourced from former employees and sources) that more than 50% of Ignite’s workforce had been laid off or voluntarily resigned this week in exchange for severance fee.
In addition to the recent market impact, internal struggles in management may also be one of the reasons for the layoffs. At the end of May, former CEO and Co-Founder Jae Kwon announced his return. Ignite will be split into Ignite (continued to be led by Peng Zhong) and New Tendermint (led by Jae Kwon), but the new organizational structure is still unclear. It is reported that Jae Kwon has said that he will reduce the number of employees. Perhaps this is Jae Kwon's revenge for being forced to step down as CEO due to management conflicts in February 2020.
Thanks to Cosmos' decentralized community governance, Ignite's recent turmoil does not seem to have too much adverse impact on the Cosmos ecology and the price of ATOM. Just last week, dYdX, the largest decentralized derivatives exchange, announced that it would join the Cosmos ecosystem as a new application chain.
In addition, the development of the interchain security function (Interchain Security) is also in progress and is expected to be released in August or September this year. This week, the Cosmos Hub community released the PROPOSAL #72 Bringing Liquid Staking and DeFito the Cosmos Hub with Interchain Security proposal, proposing that the community allocate 150,000 ATOMs (approximately $1.2 million) to fund smart contract applications that want to use this function. Applications can build a blockchain in the ecosystem that is secured by Cosmos Hub by deploying Contract Consumer Chain. Proposals are being voted on and will close on July 7.
The lack of a "soul figure" leading is one of the controversies in the Cosmos ecology. Maintenance and governance by a decentralized community may lag behind projects with a higher degree of centralization in terms of efficiency, but it also avoids problems such as founders leaving and management conflicts. Due to the turbulence brought about by such problems, the community can carry out construction projects in an orderly manner according to the plan.
Perhaps the crypto project needs a certain degree of centralization to lead the development in the early stage of development, but the final growth of the project still needs to rely on the entire community.
2) Key financing situation
•Layer1 blockchain Linera announced the completion of a $6 million seed round of financing, led by a16z, with participation from CygniCapital, KimaVentures and Tribe Capital. It is reported that Mathieu Baudet, founder and CEO of Linera, is a former employee of Meta and helped create the Libra blockchain. The Linera blockchain has properties such as low latency and linear scalability, and consists of shards or a single thread, adding additional validators to improve network efficiency, enabling most account-based operations to be performed within a fraction of a second confirm.
• Aptos, a public chain project founded by Diem's former team members, announced the launch of the Aptos Ecosystem Funding Program. The grant funds will be distributed in US dollars, but in the future it may choose to distribute tokens to help motivate the long-term growth of the ecosystem. In addition, Aptos announced that 100 projects have been built on the network, with use cases covering DeFi, NFT, games, etc., and it is expected to launch the Aptos mainnet around the end of September. It was previously reported in March that Aptos wanted to restart the Diem (formerly Libra) project, and completed a financing of US$200 million led by a16z for this purpose.
•Encrypted data company Kaiko announced the completion of US$53 million in Series B financing. This round of financing was led by Eight Roads (Eight Roads Capital, which invested in Alibaba in 1999), French venture capital firm Revaia and existing investors Alven, PointNine, Anthemis and Underscore participated in the round. Headquartered in Paris, Kaiko began providing encrypted data to the largest players in the market in 2017, and currently counts CoinShares, Paxos and Messari among its clients. As previously reported, on June 23, 2021, Kaiko completed a $24 million Series A round led by Anthemis and UnderscoreVC. Kaiko’s company valuation in this round of financing has tripled compared to the previous round of financing.
• Web3 network peaq, which promotes the Internet of Things economy (EoT), completed US$6.5 million in financing. Fundamental Labs led the investment, and HashKey, GSR, DeltaVC, Mulana, CypherCapital, GravityX, Waterdrip, Ceras, Masterventures, etc. participated in the investment. This round of financing will be used to support the continuous expansion of the peaq network, expand the development team, launch new products and features for the peaq ecosystem, and increase the popularity of the project. In addition, peaq has established ecosystem partnerships with industry alliances including GAIA-X and the German Automobile Association. It is reported that peaq's Layer1 blockchain is built on Substrate, making it compatible with Polkadot. peaq provides identity, access and payment functions as the core functions for developers to design DApps for EoT. The peaq network allows individuals and organizations to build, manage and monetize DApps for their vehicles, robots and devices.
• R Labs, a blockchain financial technology company, announced the completion of a pre-seed round of financing of US$5 million, led by well-known investment institutions such as Softbank, AGF and Prodege. It is reported that R Labs was co-founded by GeetaSankappanavar and Chelsea Cain Maclin, and built a social impact ecosystem in Web3. project. The company will launch a purpose-driven NFT project this summer, designed around five core areas of mental health, inclusion, sustainability, education, and entertainment.
4.DAO Decentralized Autonomous Organization
On June 28, Molecule DAO, a biotechnology and pharmaceutical platform, announced the completion of a $12.7 million seed round of financing, led by Northpond Ventures, with participation from Shine Capital, 1kx, Fifty Years, KdTVentures, BACKED V, The LAO, Compound VC, and individual investors Including Balaji Srinivasan (former CTO of Coinbase) and others.
Molecule is a decentralized biotechnology agreement and DAO organization, building a web3 market for IP related to biopharmaceutical research, with the vision of democratizing biopharmaceutical research and development.
Traditionally, biopharmaceutical R&D is a high-risk investment, and funds tend to be allocated to mature researchers and fields, lacking funding for early-stage and potential projects and incentives for relevant researchers.
Molecule is working to address this pain point, including R&D staff incentives and financing gaps. By creating an open ecosystem (marketplace), Molecule helps projects raise funds, and investors (including patient groups, researchers, charities, venture capital firms, and pharmaceutical companies) can fund, own, and manage the corresponding intellectual property rights. On the one hand, investment risks are dispersed, and on the other hand, specific groups such as communities and patient groups can choose which projects to fund and obtain the IP of treatments for their diseases.
We are always looking for creative ideas, business and cooperation opportunities, and we also look forward to your reading feedback, welcome to contact hello@jzlcapital.xyz.
about Us
JZL Capital is a professional organization registered overseas, focusing on blockchain ecological research and investment. The founder has rich experience in the industry. He has served as the CEO and executive director of many overseas listed companies, and has led and participated in eToro's global investment.
The team members are from top universities such as University of Chicago, Columbia University, University of Washington, Carnegie Mellon University, University of Illinois at Urbana-Champaign and Nanyang Technological University, and have served Morgan Stanley, Barclays Bank, Ernst & Young, KPMG, HNA Group , Bank of America and other well-known international companies.
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contact us
We are always looking for creative ideas, business and cooperation opportunities, and we also look forward to your reading feedback, welcome to contact hello@jzlcapital.xyz.
If there are obvious facts, understandings or data errors in the above content, welcome to give us feedback, and we will correct the report.
Note: JZL Capital currently has a Cosmos ecological theme fund. The opinions in this article may have a high degree of interest correlation with the company. This report should not be used as investment advice.
