Crypto SWOT: The detention of Telegram founder Pavel Durov has shaken the crypto venture capital sector

Strengths

Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Akash Network, rising 5.33%.
Bitcoin touched $65,000 for the first time in about three weeks, writes Bloomberg, aided by revived demand for U.S. spot Bitcoin ETFs and signs that the Federal Reserve is set to loosen monetary policy. Bitcoin rose as much as 1.2% to start the week and has since fallen back slightly, closer to $60,000 on Friday.

Digital asset manager ParaFi Capital, backed by KKR co-founder Henry Kravis, raised $120 million to invest in general-partner stakes in other crypto funds, reports Bitcoin.com. The aim is to build a portfolio of 30 to 50 stakes over the next three to five years as the crypto-fund landscape grows.

Weaknesses

Of the cryptocurrencies tracked by CoinMarketCap, the worst performer for the week was Notcoin, down 22.55%.
The detention of Telegram founder Pavel Durov has shaken the crypto venture capital sector, writes Bloomberg, particularly those who invested in Toncoin, a token linked to the Telegram app. The token’s value has plummeted amid concerns over the app's future due to Durov's legal troubles.
Binance Japan's CEO, Takeshi Chino, indicated that launching a stablecoin in Japan by the end of the year is challenging, with a dollar-denominated stablecoin now likely delayed until the first half of 2025.

Opportunities

Despite recent setbacks with exchanges withdrawing applications, there is a 70% chance the SEC will approve options on spot Bitcoin ETFs by May, following additional input from the OCC and CFTC.
MakerDAO, one of the oldest decentralized finance platforms, is rebranding as Sky to attract more mainstream users. The platform has plans to launch new tokens and simplify the user experience as part of its broader growth strategy.
Solayer Labs, the developer of the Solana restaking protocol, raised $12 million in a seed funding round led by Polychain Capital, bringing its valuation to $80 million. Solayer Labs aims to expand its team, integrate new protocols, and eventually launch a native token.

Threats

The U.S. SEC has settled with crypto lending platform Abra after charging the startup with selling unregistered securities to consumers and operating as an unregistered investment company, reports Bloomberg. Plutus Lending LLC agreed to settle with the SEC without admitting or denying the agency’s allegations.
Big law firms have earned over $750 million in legal fees from cryptocurrency-related bankruptcies since 2022, with the work nearing completion as most cases wrap up. This includes major cases like FTX, Genesis and Terraform Labs.
OpenSea has received a Wells Notice from the SEC, signaling potential legal action over allegations that the NFTs on its platform are unregistered securities, making it the latest crypto company to face regulatory scrutiny.

Frank E. Holmes

Frank Holmes is CEO and chief investment officer of U.S. Global Investors, Inc., a boutique investment advisory firm based in San Antonio that manages domestic and offshore funds specializing in the natural resources and emerging markets sectors. The company’s no-load mutual funds include the Global Resources Fund (ticker PSPFX), the World Precious Minerals Fund (UNWPX) and the Gold Shares Fund (USERX).

Please consider carefully the fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by visiting www.usfunds.com or by calling 1-800-US-FUNDS (1-800-873-8637). Read it carefully before investing. Distributed by U.S. Global Brokerage, Inc.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk.

The S&P/TSX Global Gold Index is an international benchmark tracking the world's leading gold companies with the intent to provide an investable representative index of publicly-traded international gold companies. The FTSE Gold Mines Index Series encompasses all gold mining companies that have a sustainable and attributable gold production of at least 300,000 ounces a year, and that derive 75% or more of their revenue from mined gold.

Holdings as a percentage of net assets as of 6/30/07: Jiangxi Copper (China Region Opportunity Fund 1.74%); Silvercorp Metals Inc. (World Precious Minerals Fund 2.78%, Global Resources Fund 0.89%, China Region Opportunity Fund 2.42%); Gold Fields Ltd. (Gold Shares Fund 6.05%, World Precious Minerals Fund 2.58%, Global Resources Fund 0.39%); Sino Gold Mining Ltd. (Gold Shares Fund 1.03%, World Precious Minerals Fund 0.58%, China Region Opportunity Fund 0.27%); Anglogold Ashanti (0.0%); Dynasty Gold (0.0%).

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

opinion

Crypto SWOT: The detention of Telegram founder Pavel Durov has shaken the crypto venture capital sector

By Frank E. Holmes

Kitco Commentaries
Opinions, Ideas and Markets Talk

Frank E. Holmes

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opinion

Crypto SWOT: The detention of Telegram founder Pavel Durov has shaken the crypto venture capital sector

By Frank E. Holmes

Kitco CommentariesOpinions, Ideas and Markets Talk

Frank E. Holmes

Tags:

Kitco Commentaries
Opinions, Ideas and Markets Talk