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⛓ Telegram Founder Arrested, Solana Memecoin Generator, DeFi Renaissance 💵

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Internet Capital
August 25, 2024

gm friends —

Welcome back to Internet Capital! Whether you're here for the drama or the data, there's plenty to unpack this week— so let's dive in!

  • ✂️ Markets: Impending Fed Rate Cut Boosts Crypto

  • ⛓ Telegram Founder Pavel Durov Arrested

  • 💵 The DeFi Renaissance

  • 💊 Pump.fun: Solana Memecoin Generator

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Markets: Impending Fed Rate Cut Boosts Crypto

Crypto markets are experiencing renewed optimism following the Federal Reserve's dovish stance at the recent Jackson Hole meeting, where Chair Jerome Powell hinted at impending rate cuts.

This shift has fueled expectations that the Fed may ease its historically tight monetary policy as soon as September, sparking a rally in risk assets, including cryptocurrencies.

Bitcoin, which has been sluggish below $60k for weeks, saw a notable recovery, reflecting the market's growing confidence in a more favorable economic environment.

The upcoming presidential election adds another layer of complexity to the market's outlook. With both major parties now engaging more directly with the crypto industry, the election's outcome could significantly impact regulatory approaches and market sentiment.

The market is largely viewing a Republican administration as more favorable for crypto, especially in light of Trump's recent foray into the space and growing interest in DeFi.

Conversely, a Democratic administration is generally seen as neutral to slightly negative for the markets, with concerns over potential regulatory tightening under their leadership

Market takes:

Telegram Founder Pavel Durov Arrested

Co-founder and CEO of the popular encrypted messaging app Telegram, Pavel Durov, was arrested in France yesterday on charges linked to terrorism, trafficking, fraud conspiracy, money laundering, and more.

While Durov did not commit these crimes, he is being implicated for refusing to censor content on Telegram that facilitated the crimes. Dissidents include ex-Coinbase CTO Balaji Srinivasan, media personality Tucker Carlson, and Elon Musk, who are calling the arrest an attack on free speech.

The price of TON Coin - the native token of Telegram-affiliated blockchain “The Open Network” - dropped ~16% on the news, putting the crypto world on notice.

Durov founded Telegram in 2013, and it quickly became one of the world's most popular encrypted messaging apps, with over 900 million users today.

The Open Network (TON) was originally created internally at Telegram and evolved into its own operating entity due to regulatory pressure. However, the project remains closely linked to Telegram and is deeply integrated within the app.

The official TON Network Twitter account posted a statement in support of Durov shortly following his arrest.

TON burst on the scene as one of this year’s top crypto projects, and the ecosystem has accrued hundreds of millions of dollars in TVL.

TON’s success has made it a top 10 crypto asset and attracted massive investments from some of crypto’s top funds, including Pantera Capital, which made its largest investment ever into the project.

But if one thing is true, it’s that success in crypto is fickle. You can be on top of the world at one moment and in the gutter the next - ask Sam Bankman Fried or the 3AC guys or Alex Mashinsky or…

The point is that crypto investments - especially the hottest ones - are always risky. And the risks often extend beyond the technology and market volatility to include regulatory, operational, and “key man” risks.

In this case, it doesn’t look like Pavel or TON did anything wrong, but nonetheless, TON investors are still paying the price. May this serve as a reminder to do your own research and always be vigilant. Stay safe frens.

The DeFi Renaissance

The "DeFi Renaissance" is a crypto narrative that has emerged in recent weeks that encapsulates the market’s renewed interest in Decentralized Finance.

The narrative marks a significant revival of the sector after periods of market volatility, regulatory scrutiny, and the rise of other competing narratives within the market (Memecoins, AI, Restaking).

Sparked by Aave’s recent price outperformance (up ~37% over the past 30 days) and increased twitter mindshare, the DeFi Renaissance promises to reignite levels of activity not seen in the sector since DeFi Summer in 2020.

A resurgence in DeFi activity could bring about increased on-chain transactions, higher total value locked (TVL) across protocols, and a renewed wave of innovative financial applications.

We could also see the return of retail and institutional investors exploring on-chain yield opportunities, alongside a spike in decentralized trading volumes and governance participation.

However, for the DeFi Renaissance to truly take off, it needs a catalyst similar to the liquidity mining boom of 2020, which provided the necessary incentives to attract capital and users at scale. Without such a spark, the narrative risks fading as quickly as it has emerged.

That said, I remain optimistic about DeFi because it's one of the most mature and genuinely useful sectors within crypto. It has proven its utility through decentralized lending, borrowing, and trading, offering real alternatives to traditional financial tools.

Pump.fun: Solana Memecoin Generator

Overview

What is it?

Pump.fun is a platform on Solana that allows anyone to create their own meme coins with just a few clicks.

How does it work?

🚀 Easy Coin Creation: Pump.fun simplifies the process of creating a memecoin. Users start by customizing their coin by choosing a name, symbol, and supply.

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🔒 Fair Launch: Pump.fun attempts to ensure that all tokens created on the platform follow a “fair-launch model.” This means there are no presales or team allocations, reducing the risk of "rug pulls".

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💸 Bonding Curve Mechanics: After creating a coin, it enters a bonding curve mechanism where users can buy and sell the token. As more people buy the coin, its price increases along the curve. When a token reaches a market cap of $69,000, $12,000 of liquidity is deposited into Raydium, a decentralized exchange on Solana, and then burned.

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How can you use it?

1. Connect Your Wallet: begin by linking your Solana wallet (such as Trust Wallet) to Pump.fun. This will allow you to interact with the platform and create or trade tokens.

2. Create A Coin: Customize your memecoin by selecting its name, symbol, and total supply. Mint your coin, and it will be added to your wallet, existing permanently on the Solana blockchain.

3. Buy and Sell on the Bonding Curve: Explore the memecoins available on Pump.fun. Purchase tokens on the bonding curve and sell them whenever you wish to lock in profits or minimize losses.

4. Trade on Raydium: Once a token reaches the $69,000 market cap, a portion of its liquidity is deposited into Raydium, providing additional trading opportunities.

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For additional information, see Pump.fun’s official website

Other News

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