Crypto Market Newsreel \ SEPTEMBER 17 - 30, 2022

New Crypto VCs and Future of L3s

Despite the continuous decline in the cryptocurrency market, institutional investors' appetite for crypto keeps getting more obvious. This time we discuss Microsoft's venture capital investment in decentralized apps, a new UK-based $350M VC fund, more BTC bought by Microstrategy, and UNICEF NFT project for children.
Market Cap
In the last two weeks, the market cap dropped to $0.939 Trillion, according to CoinMarketCap. Bitcoin price fell to $18,876.0 and Ether is currently trading at $1,292.2 on the Aximetria app.
$939 Billion
* Crypto market capitalization is the total value of a cryptocurrency. It is calculated by multiplying the cryptocurrency price with the number of coins in circulation.
BTC Treasuries
BTC Treasures are alternative inflation hedges and stores of value that are especially popular in the times of world economic destabilization.
Exchange Traded Funds
808,688 BTC
50,779 BTC
46,351 BTC
Public Companies
258,531 BTC
130,000 BTC
Private Companies
316,067 BTC
Mt. Gox
141,686 BTC
Grayscale Bitcoin Trust
643,572 BTC
Top 3
Top 3
Top 3
Top 3
Learn more at Buy Bitcoin Worldwide
2,381 BTC
El Salvador
1,981 BTC
40,000 BTC
Galaxy Digital Holdings
Voyager Digital LTD
12,260 BTC
140,000 BTC
The Tezos Foundation
17,500 BTC
CoinShares / XBT Provider
48,466 BTC
Purpose Bitcoin ETF
25,284 BTC

  • Cardano's founding entity Emurgo plans to invest $200M to support the ecosystem

According to founder Ken Kodama, Cardano development lab Emurgo is going to invest over $200 million to boost the ecosystem's growth over the next three years.

The funds, which are from Emurgo's own capital, will be provided to projects directly building atop Cardano and to projects from other networks that build products that integrate Cardano's network alongside their own.

Earlier this month, Cardano's highly anticipated Vasil hard fork went live. The upgrade is aimed to reduce transaction size and allow more network activity while lowering costs.

  • MicroStrategy purchased 301 more bitcoins, overall holding 130,000 BTC

In the past two months, MicroStrategy bought 301 bitcoins (BTC) for about $6 million, according to a filing with the U.S. Securities and Exchange Commission.

It now has 130,000 bitcoins, acquiring them for a total price of $3.98 billion, or $30,639 per coin.
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  • Microsoft's venture capital M12 leads $20M funding for decentralized data platform
Space and Time, a blockchain data platform, raised $20 million in strategic funding led by M12, Microsoft's venture capital arm. The news comes two months after Space and Time raised $10 million in a seed round, and shortly before the alpha release of the data platform at the end of 2021.

Other investors in the strategic round included Framework Ventures (who led the seed round), HashKey, Foresight Ventures, SevenX Ventures, Polygon, Blizzard the Avalanche Fund, Hash Capital and Coin DCX, among others.

Space and Time combines on-chain and off-chain data in a trustless environment that supports enterprise-scale analytics. The startup is also developing a novel cryptographic protocol called proof of SQL that would allow blockchain applications to rapidly generate analytical insights in a decentralized, low-cost and secure way.

  • Asset manager Fasanara Capital set up a $350M VC fund to support Web3 projects
London-based asset manager Fasanara Capital founded a new $350 million venture capital fund focused on fintech and Web3.

The firm has more than $3.5 billion in assets under management and also has a team dedicated to digital assets arbitrage trading and lending.
Having gained a reputation as the leader in the space, we are now seeing a deal flow of unprecedented quality and we want to capitalize on it
Francesco Filia, Fasanara Capital CEO

  • SWIFT partners with Chainlink for a cross-chain crypto transfer project
Interbank messaging system SWIFT has partnered with price oracle provider Chainlink to work on a proof-of-concept (PoC) project which would allow traditional finance firms the ability to transact across blockchain networks.

The project will connect SWIFT's network to nearly every blockchain to allow traditional finance players access to digital and traditional assets on one network.

Chainlink added this collaboration with SWIFT allows financial institutions to gain blockchain capability without replacing, developing and integrating new connectivity into legacy systems, something it said would require substantial modifications with an "exceptionally high" cost.

  • UNICEF Giga NFTs plans to connect schools in developing countries to the internet
A UNICEF-led initiative is tackling the problem of the lack of internet connectivity at local schools in undeveloped countries through a joint venture with the International Telecommunication Union, which led to the creation of Giga in 2019.

This time, Giga teamed up with Dutch artist Nadieh Bremer to launch a collection of 1000 procedurally generated NFTs minted on the Ethereum blockchain. The NFTs were produced using Giga's school data to represent those with and without internet connectivity.

The NFT public sale raised around 240 Ether (ETH) in totality, valued at $700,000, which went directly to connecting schools to the internet.
From Nadieh Bremer & Giga NFT collection
Featured on Aximetria
Market Cap is $222,334,008

0x is an infrastructure protocol that allows users to easily trade ERC20 tokens and other assets on the Ethereum blockchain without relying on centralized intermediaries like traditional cryptocurrency exchanges.

0x wants to build the most efficient, transparent, and equitable financial system in history. 0x team defines its mission as creating a tokenized world where all values can flow freely.

ZRX is a utility token that is used to reward relayers with trading fees for hosting an order book. ZRX also derives value from being a governance token. All ZRX token holders can vote on protocol upgrades and developments, which could drive demand for the token.
Crypto Regulation Updates
The Reserve Bank of Australia (RBA) plans to conduct a pilot project for eAUD
Read more
Israeli crypto exchange receives license allowing it to work with local banks. This is the first licensed crypto firm in the country.
Read more
Japan is expected to enact new rules on money transfers to prevent the use of crypto for money laundering
Read more
U.K. introduced a new bill to improve anti-money laundering (AML) regulations
Read more
Analysts Talk
Last week, Ethereum co-founder Vitalik Buterin published a piece about Layer-3 blockchain solutions and their potential to disrupt the industry once again if used smartly.

A quick reminder: Layer-1 solutions usually describe the underlying main blockchain architecture (Bitcoin, Ethereum, Solana, Cardano, etc.).
Layer-2 protocols lie on top of the underlying blockchain and help scale it. L-2 is a separate blockchain (or sidechain) that extends the L-1 blockchain and inherits its security guarantees. Popular examples of L-2 solutions include Lightning Network and Polygon.

But what to expect from Layer-3 solutions? More scaling? Maybe security?
Let's hear what experts from Starkware and Vitalik Buterin have to say about it.
  • Gidi Kaempfer
    Head of Core Engineering, StarkWare
    'L3 promises hyper scalability, better control of the technology stack for various needs, and privacy, while maintaining the security guarantees provided by Ethereum (L1).

    The recursive concept it employs may be extended to additional layers for fractal layering solutions.'
  • Vitalik Buterin

    Russian-Canadian developer, co-founder of Ethereum
    'We can compress the article by Starkware down into three visions of what "L3s" are for:

    1. L2 is for scaling, L3 is for customized functionality, for example, privacy.

    2. L2 is for general-purpose scaling, L3 is for customized scaling.

    3. L2 is for trustless scaling (rollups), L3 is for weakly-trusted scaling (validiums).'

    Buterin also believes a third layer on the blockchain makes sense only if it provides a different function to Layer 2s, which have been used mainly to enhance scaling via zero-knowledge (zk) Rollup technology.

    'There is clearly an important role to be played by "layers" of some kind that serve non-scaling needs like privacy, and there is clearly an important function of proof aggregation that needs to be filled somehow, and preferably by an open protocol.

    But at the same time, there are good technical reasons to make the intermediary layers that connect user-facing environments to the layer 1 as simple as possible; the "glue layer" being an EVM rollup is probably not the right approach in many cases.

    I suspect more sophisticated (and simpler) constructions such as those described in this post will start to have a bigger role to play as the layer 2 scaling ecosystem matures.'
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