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Ain’t much to be said - we’ve got a good one for you today.

Prices are up, Bear Themed Blockchains are thriving, and the US Government still (probably) hates crypto.

Today’s sections:

• 📈 Markets: We’re So Back

• ❌ How the US Government Tried to Kill Crypto

• 💰 Internet Capital’s Crypto Sectors Update

• 🐻 Berachain: A Bear Themed Blockchain

Check out our recent interview with Mode Network founder James Ross!

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Markets: We’re So Back

Bitcoin was briefly back over $65k, memecoins are flying, and investor sentiment is improving. While its nice to have some positive developments, I still believe that the US Presidential election will determine the market’s direction in the medium-term.

In the long-term? Money printer go brr and our coins go to all-time highs by the end of 2025. (Not financial advice of course 😆). 

We’re keeping the markets section brief today, giving you time to read the next section about how the US government tried to kill crypto last year 😱. Here’s some research to keep you updated on the current market conditions:

• Weekly market commentary [BlackRock]

• Weekly: Takeaways from Token2049 [Coinbase]

How the US Government Tried to Kill Crypto

The following is adapted from Nic Carter’s “Inside the Biden Admin’s Plot to Destroy Silvergate and Debank Crypto for Good”

By mid 2022, Silvergate Bank was a thriving player in the crypto industry, with its “Silvergate Exchange Network” (SEN) enabling 24/7 transaction settlement for the industry’s leading institutions. However, by 2023, Silvergate had collapsed, filing for bankruptcy and leaving shareholders with significant losses.

While mainstream narratives blamed the bank's downfall on its risky crypto ties, compliance failures, and involvement with Sam Bankman-Fried's FTX, there’s another, less discussed theory: Silvergate was deliberately targeted by the Biden administration as part of a covert effort to stymie the domestic crypto industry.

This theory argues that the Biden administration, spearheaded by regulators and backed by political figures like Senator Elizabeth Warren, sought to dismantle key banking infrastructure supporting crypto companies.

By applying extraordinary regulatory pressure, including an unofficial and arbitrary 15% cap on crypto deposits imposed on Silvergate, regulators effectively forced Silvergate into unnecessary bankruptcy. The bank’s voluntary liquidation, rare for an institution of its size, is seen as a sign that regulatory mandates, rather than organic business failures, led to its demise.

This coordinated effort, termed "Operation Choke Point 2.0," allegedly sought to decapitate the U.S. crypto sector by cutting off access to banking services, leaving the industry crippled.

Critics of the Biden administration argue that this backroom approach, rather than a transparent legislative process, not only damaged the crypto sector but also worsened the broader banking crisis.

This theory posits that Silvergate's fate was ultimately sealed by a political agenda aimed at stifling crypto, rather than the financial risks it had taken. A true disservice to a burgeoning tech industry in the United States.

Internet Capital’s Crypto Sectors

We’re almost done completing our methodology for tracking crypto sectors! Expect an update next week, and check out last week’s post for an overview of what this section will look like!

Let me know if you have any questions, concerns, or suggestions below in the comments!

Whiskey: A Hedge Against Market Volatility

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Schedule a call with a Vinovest advisor to learn more.

Berachain: A Bear Themed Blockchain

What is it?

Berachain is an EVM-identical Layer 1 (L1) blockchain that uses a unique consensus mechanism called Proof-of-Liquidity (PoL). Built on top of the modular consensus framework BeaconKit, Berachain combines Ethereum compatibility with innovative blockchain economics to incentivize liquidity and foster a decentralized ecosystem. Through PoL, Berachain aligns the incentives of validators, users, and protocols, creating a more collaborative and liquid-driven network that enhances security and long-term growth.

How does it work?

🔗 EVM-Identical: Berachain’s execution layer is fully compatible with the Ethereum Virtual Machine (EVM), meaning developers can deploy Ethereum-based smart contracts using existing tools like Geth, Erigon, and more. This ensures seamless integration with the broader Ethereum ecosystem, and any future EVM upgrades can be adopted by Berachain immediately.

🤝 Proof-of-Liquidity (PoL): PoL is Berachain’s novel consensus mechanism that secures the network through liquidity. Validators on Berachain stake the native $BERA token to propose blocks, but their rewards are amplified by the liquidity they bring to the network. Validators allocate governance tokens ($BGT) to Reward Vaults, which direct incentives to liquidity providers. This aligns the interests of protocols, validators, and liquidity providers, promoting ecosystem-wide growth.

⛵ BeaconKit: Berachain is built using BeaconKit, a modular consensus framework that integrates CometBFT’s single-slot finality and composability features. BeaconKit allows Berachain to achieve faster block times, increased security, and better scalability, while supporting future Layer 2 solutions and customizable blockchain architectures.

How can you use it?

1. Stake and Earn with PoL: Participate as a validator by staking $BERA tokens and distributing governance rewards ($BGT) to liquidity providers. Validators earn incentives based on the liquidity they support within the network.

2. Provide Liquidity: Users can deposit assets into Reward Vaults to provide liquidity for native dApps like BEX (a decentralized exchange) and Berps (a perpetual futures platform). In return, they earn $BGT and can influence the ecosystem’s growth.

3. Governance Participation: Accumulate $BGT through liquidity provision and participate in Berachain governance by delegating your tokens to validators. This influences network rewards and protocol development.

4. Leverage $HONEY: Use Berachain’s stablecoin, $HONEY, to participate in lending, borrowing, and trading within the ecosystem, earning additional rewards and contributing to network stability.

For more information, visit Berachain’s official documentation.

Other News

• Trump’s World Liberty Financial Opens Whitelist for Eligible Investors [Donald Trump X Post]

• FTX to set aside up to $230 million for shareholders, not creditors, from gov't forfeiture proceeds [The Block]

• EigenLayer’s EIGEN token unlock looms, futures tip a $6.8B FDV [CoinTelegraph]

• BlackRock's spot Ethereum ETF surpasses $1 billion in value for the first time [The Block]

Thanks for reading!

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Nothing in this newsletter is meant to be taken as legal, tax, investing, or other advice. Internet Capital is for educational and entertainment purposes only. All views are our own, and not representative of any organizations with which we are affiliated. For any business partnerships please reach out via the email [email protected]