JZL Capital Blockchain Industry Weekly Report No. 38: CPI exceeds expectations, fear of raising interest rates intensifies

1. Industry dynamics last week

1. Industry dynamics last week

The CPI data was higher than expected on Tuesday, and the encryption market followed the U.S. stock market to dive, basically smoothing out the previous week's gains. As of writing, Bitcoin closed at $19,857.3, down 8.24% during the week. Ethereum is more volatile. On Wednesday, Beijing time, Ethereum completed The Merge upgrade event and successfully entered the PoS era. The performance in terms of price is that the benefits are exhausted, and the market divergence is increasing. Part of it is more ETH inflows. PoS nodes, more than 11.3% of the current Ethereum circulation has participated in the PoS consensus; the other part is that the stock of ETH in the exchange is also increasing, and it is currently close to the highest stock value in half a year, indicating that a large number of chips have been transferred to the exchange, and the risk of selling Increase, as of writing ETH closed at $1417.02, a 19.82% drop during the week, much higher than the market average. Let’s talk about ETHW, the incidental output of this Ethereum upgrade. After the Ethereum upgrade was successful on Wednesday, various exchanges took snapshots and carried out ETHW airdrops. The first few exchanges such as OKX, Gate, etc. Was able to snag a good sell price, but then blew out as expected and is currently around $5.83. It is worth mentioning that the inflation rate of Ethereum has slowed down significantly after the upgrade, and the supply performance of Ethereum has indeed dropped significantly after the merger as expected, which will provide strong support for the future price performance of Ethereum.

Ethereum has been successfully upgraded this time, and SEC Chairman Gary Gensler also said that cryptocurrencies and intermediaries that allow holders to "pledge" their tokens need to pass the "Howey test" to determine whether their assets are securities, which also means PoS cryptocurrencies led by Ethereum may be subject to the SEC.

So what is the Howey test? The Howey test originated in a Supreme Court case in 1946. A company named WJ Howey sold citrus groves to the outside world, and the company reached an agreement with the buyer that the buyer would lease the citrus grove back to Howey immediately after the sale and harvest the output. citrus products and profits, in this case the Supreme Court ultimately ruled that the transaction constituted an investment contract and thus a security. And the four judgment criteria in making a decision become the way securities are tested in the future:

- Must be a monetary investment

- The nature of the cooperation is Common Enterprise

- Profit expectations

- The generation of interest originates from the issuer or a third party, not the investor

Stocks are a well-known type of securities. The current PoS-type cryptocurrencies governed by DAO can more or less meet the conditions of the Howey test, so the SEC is always watching their every move. The upgrade of Ethereum may become a regulatory The fuse of the landing may be a more favorable behavior for the market in the long run.

On Friday, the Nasdaq gapped and fell at the opening of the market. It fell below the important support level of 11,500 points and closed at 11,448 points, forming a large head-and-shoulders pattern. If it wants to reverse, it will wait until the interest rate hike is implemented next Wednesday to see if it can be released. Some easing remarks comforted the market. At present, the outside world's guess on the interest rate is 4.25% through the dot plot. In this way, after the 75-point interest rate hike this time, there will be at least 100 points of interest rate increase. 50, stay once and add it next year. If this is the arrangement and there are no other black swans, the US stock market is expected to usher in a turning point early next year.

2. Macro and technical analysis

2. Macro and technical analysis

The decline of BTC in this round is weaker than that of ETH, and the overall price is still at 20,000 USDT. It is expected that the probability will be close to the previous low in the future.

ETH has the same trend as BTC, but it is likely to be weaker than BTC.

ETH has the same trend as BTC, but it is likely to be weaker than BTC.

The two-year U.S. debt remains high and sideways.

Nasdaq fell as expected, breaking an important support level.

Arh999: 0.36, the cost performance is already in a relatively good position, and regular investment can be made.

MVRV: 0.932, relatively high cost performance

3. Summary of investment and financing

3. Summary of investment and financing

1. Review of investment and financing

• 1. Review of investment and financing

• During the reporting period, the number and scale of financing were relatively sluggish. There were 17 investment and financing events disclosed (down 16% month-on-month), and financing was about US$239 million (down 59.62% month-on-month);

• In terms of specific tracks, the number of Infrastructure financing surpassed Web 3.0 & NFTs for the first time, and completed 7 project financing rankings.

• 2. Current Situation of the Organization

2. Current Situation of the Organization

4. Encrypted ecological tracking

1. NFTs

4. Encrypted ecological tracking

• 1. Market overview

• After a short-term continuation of the volatile trend last week, the NFT blue-chip project index ushered in a wave of rebound on Tuesday, but then continued to fall into sideways shocks.

• This week, the total market value of the NFT market increased by 1.42% year-on-year, and the total transaction volume decreased by 5.34% year-on-year. And the number of traders dropped by more than 20%.

• This week, the cumulative transaction volume of the ENS project totaled more than 6,780ETH, ranking first in the transaction volume list this week. The main reason is that on September 16, ENS founder Nick Johnson said that the domain name wrapper Name Wrapper will be launched soon, which can wrap ENS domain names into ERC-1155NFT. A parent domain name can set more permissions for its subdomains, providing better permission control and more consistent API support for domain names.

The project with the second turnover is RENGA, a new PFP project launched by DirtyRobot. Among them, a total of 10,000 NFTs were sold in the form of "blind box", which attracted a large number of users to participate. RENGA (liange) is a unique poetry genre, a literary "tangram", which focuses on the accumulation and interest of sentences, rather than the expression of personal feelings. The first feature of Liange is collective creation, that is, each sentence must be connected with the previous sentence of others, and the turning point is purely accidental, so the author needs to have a kind of resourcefulness. The second characteristic of Liange is improvisation, which has no fixed format since ancient times, but it is excellent to arouse the current emotion. Renga hopes to let the community participate in the construction through the form of co-creation.

• 2. Dynamic focus

• a16z Crypto released the NFT "Proof-of-Merge" commemorating the merger of Ethereum, and users can mint it for free before the merger occurs. The NFT is a dynamic NFT that outputs different metadata and illustrations based on the value of "difficulty" and the estimated time of merging, and features ASCII art to present different visual effects in computer language.

• The life cycle of the NFT has three stages, all of which are based on the reading of the above-mentioned "difficulty" embedded in the EVM. In the first stage, two separate circles are shown while pre-merging. In the second stage, as the merger approaches, the two circles will begin to intersect until they overlap, creating an eclipse-like picture; once the merger occurs, the shape will transform into its final form: the yin-yang symbol.

• The NFT rental agreement Rentable has announced its closure. All services will stop from October 14th, and the official front end will no longer be accessible. Users must withdraw and withdraw before then. The team stated, “We have not found a product that fits the market, and our development path is over. After many careful considerations and conversations, we prefer to move in the direction of closure rather than further funding.”

• On September 17, 7UpDAO founder "26x14" posted on social media that the NFT project Azuki was valued at US$1 billion in a new round of financing and has already overraised. On September 18, the transaction volume of Azuki series NFT in the past 24 hours was 604 ETH, with a growth rate of 1130%. The transaction volume ranked second on Opensea, and the average transaction price rose from 7-8 ETH in the past week to 10.3 ETH. Follow-up can focus on Azuki's post-financing trends.

• The digital collection distribution platform "YSC" was officially launched on September 16, and the "YSC" series of collections was also launched simultaneously with the YSC platform, each issuing 2022 copies. "Y", "S", and "C" respectively correspond to the sections: "Xiaoyang Art", "Digital Trends", and "Cultural Intangible Cultural Heritage Art".

According to Forbes, Doodles has completed $54 million in financing at a valuation of $704 million. Investors include Reddit co-founder Alexis Ohanian's Seven Seven Six, Acrew Capital, FTX Ventures and 10T Holdings. Doodles is using the financing to expand its team, as well as fund things like product development and technology.

Doodles project introduction:

• 1. Project overview:

• Doodles is a community-driven collectibles project featuring art from Burnt Toast. Doodles come in a joyous array of colours, characters and sizes, with a collection size of 10,000. Each Doodle allows its owner to vote on experiences and activities paid for by the Doodles Community Treasury.

• Project Title: Doodles

• Item Type: PFP (profile picture) Mint Date: 2021/10/17

• Original minting price: 0.123 ETH

Highest price ever sold: Doodle #6914 sold for 296.69 ETH on January 7, 2022

• 2. Fundamentals of the project

• Doodles is a community-driven collectibles project featuring art from Burnt Toast. Doodles come in a joyous array of colours, characters and sizes, with a collection size of 10,000. Each Doodle allows its owner to vote on experiences and activities paid for by the Doodles Community Treasury.

• Doodles' hand-drawn doodles mainly include skeletons, cats, aliens, apes and mascots. The Doodle Collection also includes dozens of rare avatars, outfits, and colorways from the artist's palette.

The current total market value of Doodles is 110.88K ETH, ranking 11th among the NFT projects included in NFTgo; the total number of addresses currently held is 5351; the average price of a single transaction within 30 days is 7.63 ETH.

• 3. Marketing model

• Publicity mode at the initial stage of the project: The initial success of the Doodles project stemmed from the team's "hunger marketing" strategy. About a month before mint, the Doodles project closed the community entrance early when the number of members in the Discord community just exceeded 1,000 , so that the participants who joined the project early had a strong sense of identity with the Doodles community identity, which gave birth to a strong cohesion within the community, and also made those who were not able to enter the whitelist of the first batch of projects arouse curiosity and a desire to explore.

After the entire supply of Doodles sold out, the Discord community reopened, successfully attracting a large number of new collectors and enthusiasts. The subsequent participation of a large number of artists and influencers in the NFT field has also consolidated Doodle's community ecological status.

• 4. Project ecology"bladder management"and"and"driving ability

• Such statistics determine the ability and scarcity of graffiti people in space.

• Currently the only way to obtain the above wearable devices is by purchasing the Genesis Box issued by the Doodles team. All Boxes in this series have been auctioned on June 29, 2022, and are currently available for trade and resale on OpenSea.

2. GameFi blockchain games

• 2. GameFi blockchain games

• This week, the mainstream tokens in the Gaming sector fell with the market, but outperformed ETH, but underperformed the mainstream public chain, and the overall market value ranking continued to fall

• Game developer Knock Knock Games proposed in ApeCoin DAO to build a web-based third-person shooter game "Ape Worlds: Shooter Edition" for the community to bring more users, and combine it with The Otherside in the future. The development process is about 4 months , the application budget is 171.6K $APE (approximately 1 million US dollars). The AIP-103 proposal has entered the voting stage, and the deadline is September 22, but the proportion of negative votes has reached 77%.

Judging from the proposal information, the game is rough in production and lacks new ideas, and the community may not want the IP image to be damaged. But this Web3 model of game developers looking to DAOs for budget may become more common. Stella Fantasy

• Item of the Week –

• RPG game Stella Fantasy developed by South Korean chain game developer Ring Games completed a new round of private equity financing of US$6 million, led by Krust Universe, Animoca Brands, Planetarium, Defiance Capital, Play Ventures, Double Peak, DWeb3 Capital, GuildFi, Avocado DAO and PathDAO participated in the investment. Previously, the project had completed financing of US$5 million at the end of June, led by Animoca Brands and Planetarium.

• Stella Fantasy is an RPG game with the concept of Play and Earn. The game style and character design are biased towards two-dimensional animation. The overall gameplay is similar to "Original God", with copy battles, story mode, PVP, character NFT collection, real estate, props production, etc. elements. In the real machine demonstration on the official Youtube channel, the characters are rich and exquisite, the combat movements are smooth, and the overall quality is good. Although there is not much innovation in the mechanism, it is expected to have good playability.

• Stella Fantasy completed the first round of pre-sale of NFT Stella Boxes last week. Holders can experience the gameplay and NFT characters in the Beta closed test. The pre-sale was sold out within 10 seconds. The second round of pre-sale will be opened at the end of the Beta closed test.

• According to the official roadmap and white paper, Stella Fantasy will open the Token Public Sale in November. The token is named Stella Fantasy Token (SFTY). It adopts a single-token model, with an initial release of 500 million tokens and a release limit of 10 within 72 months. 100 million, will be used as the governance token and the basic token of the in-game economic system, with functions such as staking and destruction to avoid infinite inflation and continuous selling pressure.

3. Infrastructure construction

1. Market overview

1. Market overview

As of September 18, the overall lock-up volume (including staking) of each public chain was US$63.2 billion, a decrease of 7.2% compared to last weekend, and the ranking of the top five public chains remained unchanged.

• 2. Cosmos ecology

• Cosmos will hold the Cosmoverse conference on September 28, at which further information about Atom 2.0 will be disclosed, including the strengthening and construction of the ecosystem. The design team also clearly revealed that Cosmoverse will have greater upgrades and updates to the ATOM and Cosmos ecosystems.

Recently, Cosmos has been positive and has risen against the trend. The token ATOM has risen from about $12.3 on September 7 to about $15.8 at present, an increase that exceeds ETH and mainstream public chains.Quicksilver

• Items of the Week -

• Quicksilver, the cross-chain liquidity staking protocol of Cosmos ecology, can be combined with cross-chain and Liquidity Staking modules, and can quickly and seamlessly join any Cosmos-SDK-based Zone without permission.

At present, Quicksilver has formulated an airdrop plan, in which the number of Quicksilver token rewards is 102.7 million, and the first airdrop reward will be distributed to eligible pledgers of Cosmos Hub, Juno Network and Osmosis.

Community Labs

• 3. Key investments

• Community Labs announced this week that it has received $30 million in strategic investment from Lightspeed Venture Partners, Bain Capital Crypto, Arweave and Blockchain Capital. This investment will be used to fund the construction and team of the Arweave ecosystem, as well as build the Community Labs team. For this $30 million strategic investment, Lightspeed Venture Partners, who led the investment, commented that "decentralized data storage is a key part of Web3 infrastructure".

• Community Labs is an Arweave-native software development company and venture capital studio focused on data storage in the Arweave ecosystem. Community Labs, led and founded by 19-year-old Tate Berenbaum, creates solutions for trustless and serverless application development. Community Labs will use this strategic investment to grow its team and build data storage tools. The founder of Community Labs, Tate Berenbaum, is a 19-year-old student from the University of Virginia. He has temporarily left the university to better focus on the development of Community Labs.

• Tate Berenbaum believes that Arweave will expand even more, so that it will be similar to Solana and Ethereum. He has built a service called Verto on Arweave, a decentralized exchange for trading tokens. The community lab is also interested in improving consumer-facing applications for Arweave, such as storage of NFTs, he said.

Arweave is one of the largest decentralized data storage providers in the industry, enabling permanent storage of data on the chain. In blockchains, immutability — the ability of a blockchain’s history to remain permanent and unchangeable — is fundamental to ensuring trust, correctness, and proper functioning of decentralized networks.

Magna

• 4. DAO Decentralized Autonomous Organization

• DAO infrastructure and token management platform Magna completed a $15 million seed round of financing, with a post-investment valuation of $70 million, led by Tiger Global and Tusk Ventures, Shima Capital, Circle Ventures, Solana Ventures, Avalanche Labs and Galaxy Labs and other institutions Participate in voting.

• The main function of Magna is token distribution, which enables DAO to issue tokens (including airdrops, unlocking, payment, etc.) to investors and employees safely and conveniently, ensuring that its release is carried out according to the token release plan; Launch management functions, including management of SAFTs and Warrants. Magna supports multiple public chain ecosystems, including Ethereum, Solana, Avalanche, etc.

• The co-founders of the project are Bruno Faviero and Arun Kirubarajan. CEO Bruno Faviero graduated from MIT with a CS major, has continuous entrepreneurial experience, and runs an early VC agency; CTO Arun Kirubarajan graduated from Princeton University with a CS major. Lecturer, also worked as a Quant in an asset management company.

Large-scale investment in the infrastructure field of DAOs is frequent, and projects generally can obtain tens of millions of dollars in financing in the early stage (within one year of establishment) of the seed round. The founders of such projects generally have a good background, with prestigious schools and entrepreneurial experience. At the same time, the projects focus on solving some pain points in the current management of DAOs.

We are always looking for creative ideas, business and cooperation opportunities, and we also look forward to your reading feedback, welcome to contact hello@jzlcapital.xyz.

about Us

JZL Capital is a professional organization registered overseas, focusing on blockchain ecological research and investment. The founder has rich experience in the industry. He has served as the CEO and executive director of many overseas listed companies, and has led and participated in eToro's global investment.

The team members are from top universities such as University of Chicago, Columbia University, University of Washington, Carnegie Mellon University, University of Illinois at Urbana-Champaign and Nanyang Technological University, and have served Morgan Stanley, Barclays Bank, Ernst & Young, KPMG, HNA Group , Bank of America and other well-known international companies.

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contact us

We are always looking for creative ideas, business and cooperation opportunities, and we also look forward to your reading feedback, welcome to contact hello@jzlcapital.xyz.

If there are obvious facts, understandings or data errors in the above content, welcome to give us feedback, and we will correct the report.