Author: Faith Yakubu

The latest frenzy gripping the crypto world revolves around the exchange of trading cards featuring prominent figures in the cryptocurrency space, courtesy of Fantasy.top.

Although the platform is currently on testnet, it is set to launch on the mainnet imminently. From Bitclout to FriendTech, it’s evident that Crypto Twitter thrives on speculating about each other.

The latest sensation takes the form of trading cards introduced by Fantasy.top, featuring nearly 250 crypto individuals available for trading on the platform. Users can collect these cards, assemble them into a team, and participate in competitions. The project’s X account reports that the latest competition attracted 23,800 participants.

Trading of these cards commenced on Fantasy.top in mid-February, gaining momentum recently following endorsements from influential crypto personalities such as crypto trader Ansem. Currently limited to testnet, users are not transacting with actual funds. However, the project is gearing up for its mainnet launch to gauge whether it can sustain the same level of interest.

Fantasy.top’s founder, known by the pseudonym Travis Bickle, noted that their growth has been explosive since the Ansem tweet. While they have observed Fantasy’s virality from the beginning, the current scale is unprecedented. Travis expressed anticipation for hitting full speed with the mainnet launch but is thrilled to witness such widespread interest already.

Although these figures reflect testnet activity, certain individuals have witnessed significant trading volumes for their cards. Ansem, for instance, recorded 439 testnet ether in trading volume, earning him rewards in testnet ether. FriendTech also experienced success by implementing a comparable model with high fees, incentivizing influencers to utilize and endorse the app.

Upon joining the platform, which currently operates on invite code-only access, users receive three testnet ether on the Blast Sepolia testnet, which they can utilize for purchasing cards. Additionally, new users are granted five starting cards, available in four categories: common, rare, epic, and legendary. To date, more than 1 million cards have been minted.

Fantasy.top provides social analytics data for individuals featured on each trading card, along with insights into their interactions on X. This feature aims to assist in valuing individuals based on their social media presence.

Built on Blast, a Layer 2 network on Ethereum launched on mainnet in February, Fantasy.top aims to offer a native-yield model for ether and stablecoins, providing 4% interest for the former and 5% for the latter. Blast was developed by Tieshun Roquerre, the founder of NFT marketplace Blur.

Building on Previous Social Finance Platforms

BitClout was among the pioneers in this domain, offering a similar experience to X, allowing users to speculate on the value of profiles. However, its launch was marred by controversy and missing features. BitClout seems to have been replaced or rebranded as Diamond.

FriendTech followed suit, allowing users to bet on individuals’ profiles, with the added feature of purchasing someone’s “key” for access to their private group chat. Despite a decline in activity, the project hints at a forthcoming next phase.

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Coinbase and MicroStrategy have seen significant gains of 8% and 12%, respectively, in early-day trading.

The surge in stock prices coincides with Bitcoin’s climb above the $72,000 mark.

Crypto-related companies started the week on a positive note as Bitcoin reached above $72,000 for the first time since mid-March.

Shares of Nasdaq-listed Coinbase and MicroStrategy rose by 8% and 12%, respectively, during early morning trading in New York. Coinbase shares surpassed $260, while MicroStrategy’s stock surged beyond the $1,600 mark within the past 24 hours, as per TradingView data at 10:00 a.m. ET.

Coinbase Price Target Raised

Oppenheimer, a New York-based financial firm, recently raised Coinbase’s share price target to $276 from a previous target of $200 while maintaining its buy rating. This increased target represents a roughly 6% rise from Monday’s opening share price for Coinbase.

Oppenheimer analyst Owen Lau stated that they estimate Coinbase’s trading volume for the first quarter of 2024 to increase by 95% compared to the previous quarter and by 107% compared to the same period last year, reaching $300 billion.

Bullish Outlook for MicroStrategy

According to a report on MarketWatch, Benchmark analyst Mark Palmer increased his price target for MicroStrategy stock to $1,875 from $990, reiterating his buy rating in an investor note on Monday. This new target implies approximately a 17% upside from the current opening price.

As per The Block’s Data Dashboard, MicroStrategy’s bitcoin holdings now stand at 214,250 as of the company’s March filing. In March, MicroStrategy acquired an additional 9,245 bitcoins for $623 million in cash, bringing its total holdings to over 1% of the total bitcoin supply.

Decrease in Bitcoin Long-Term Holder Supply

However, according to this week’s Bitfinex Alpha report, bitcoin sell pressure could arise due to a reduction in the digital asset’s supply held by long-term holders.

Bitfinex analysts noted that since reaching its peak of 14.91 million Bitcoins held by long-term holders in December 2023, the supply within this cohort has decreased by approximately 900,000 Bitcoins. It’s noteworthy that around one-third of this reduction, totaling about 286,000 Bitcoins can be attributed to outflows from the Grayscale Bitcoin Trust ETF (GBTC).

The report also noted an increase in the supply held by short-term holders, totaling 1.121 million Bitcoins. The analysts added that this increase not only counteracts the distribution pressure from long-term holders but also suggests an additional acquisition of approximately 121,000 bitcoins from the secondary market, including exchanges.

Since spot bitcoin ETFs started trading on January 11, the quantity of bitcoin held by these ETFs has risen from 621,390 to 836,120, as reported on The Block’s data page.

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Ripple’s Chief Legal Officer, Stuart Alderoty, has delivered a scathing critique of Gurbir Grewal, the Director of Enforcement at the Securities and Exchange Commission (SEC), regarding comments made about the compliance efforts within the crypto industry.

During a recent SEC event, Grewal suggested that the burgeoning crypto sector was employing various tactics to circumvent regulatory oversight, such as relocating or registering in different jurisdictions. He also addressed concerns regarding the SEC’s regulatory approach, refuting allegations of overreach and exceeding its regulatory mandate.

Alderoty, however, highlighted the inconsistencies in Grewal’s remarks, pointing out instances where the SEC had potentially overstepped its bounds and abused its authority. He specifically mentioned the DebtBox sanctions for “gross abuse of power,” a Ripple judge’s criticism for lacking “faithful allegiance to the law,” and the “arbitrary and capricious” ruling in the Grayscale case.

Moreover, Alderoty criticized the SEC’s erratic application of the Howey test, a standard used to determine whether certain transactions qualify as investment contracts. He noted that the SEC’s guidance on the Howey test, still present on its website, fluctuates arbitrarily, leading to confusion and inconsistency within the industry.

According to Alderoty, the SEC must address these concerns to restore credibility and trust. He urged the regulator to acknowledge and rectify the institutional damage inflicted by its approach to crypto regulation, emphasizing the necessity for enhanced transparency and accountability.

In conclusion, Alderoty emphasized that if the SEC genuinely aims to mend the institutional harm caused during what he termed as a “misguided war on crypto,” it must confront these truths and adopt a more responsible and balanced regulatory stance.

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Oppenheimer, a New York-based financial firm, has revised Coinbase’s share price target to $276, marking a notable increase from the previous target of $200, while maintaining its buy rating.

The new price target of $276 represents a roughly 10% surge from Wednesday’s closing share price of Coinbase, which stood at $251.58.

Owen Lau, Executive Director at Oppenheimer, highlighted the ongoing adoption of digital assets, particularly following the approval of spot bitcoin ETFs in January. Lau projected a significant increase in Coinbase’s 1Q24 trading volume, estimating a 95% quarter-on-quarter and 107% year-on-year rise to $300 billion.

Additionally, Lau pointed out the growing liquidity in the space, with USDC’s market capitalization witnessing a 12% uptick between the first quarter of 2024 and the last quarter of 2023.

According to Oppenheimer, the sustained adoption of digital assets and blockchain technology positions Coinbase as a key beneficiary in the cryptocurrency sector over the long term.

Lau emphasized that the upward revision of the price target for Coinbase shares reflects the company’s improved fundamentals and higher trading revenue. Factors such as strong inflows into spot bitcoin ETFs, the halving, and increased retail participation contribute to this growth. However, Lau noted that Coinbase’s Base Layer 2 wasn’t a significant revenue driver factored into the increased target price for the stock.

In pre-market trading on Thursday, Coinbase shares surged by 3.29% to $259.85 as of 8:56 a.m. ET. Since the beginning of the year, the cryptocurrency exchange’s share price has climbed more than 44%.

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Ethena Labs has announced the addition of bitcoin as a backing asset for its USDe synthetic dollar, tapping into the growing enthusiasm for the world’s oldest digital asset among traders.

The decentralized finance (DeFi) protocol stated in a series of updates that anchoring USDe with Bitcoin will facilitate significant scalability, multiplying its capacity by more than 2.5 times and enhancing safety measures for traders. This strategic move arrives as bitcoin derivative markets outshine their ether-based counterparts.

“With Ethena’s scaling trajectory nearing $10 billion, this enhanced backing provides a more resilient foundation, ensuring a safer environment for users,” the protocol remarked, noting that the current supply of USDe is valued at around $2 billion.

Ethena also highlighted Bitcoin’s superior liquidity and duration profile for delta hedging compared to liquid staking tokens as a key factor in the decision to incorporate it as a backing asset.

Previously, USDe was solely supported by staked ether (ETH), as indicated on Ethena Labs’ website. However, heightened trader interest in Bitcoin prompted the protocol’s adjustment.

Ethena noted a substantial surge in bitcoin open interest, which soared by 150% to reach $25 billion over the past year, leading to more than doubling USDe’s scalability potential. In contrast, ether’s open interest grew by 100% to $10 billion during the same period, according to data provided by the protocol.

Bitcoin’s robust demand coincides with its remarkable surge in speculative value, currently trading at $68,384 according to The Block’s price data, marking a 4% increase over the past 24 hours.

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