JZL Capital Blockchain Industry Weekly Report No. 30: V God interprets the latest blueprint of Ethereum

Overview of the week

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- V God announced the latest roadmap on ETHCC5, what is the main content?

- Tesla dumped 75% of Bitcoin when its Q2 financial report was in line with expectations. Which other technology giants are worthy of attention?

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1. Industry dynamics

Last week, the crypto market bottomed out and rebounded. Since July 14, it has been positive for 7 consecutive days. The rebound momentum is obvious. In addition to following the U.S. stock market, this rebound also has its own deleveraging and the expected implementation of the Ethereum upgrade. The quiet period is negative out of some reasons. 7/21 Tesla released its second-quarter financial report. The financial report itself was in line with expectations in all aspects, and there was no thunderstorm that people were worried about. However, its sale of 75% of its Bitcoin holdings near $29,000 hit the encryption market slightly , Musk said in the meeting that selling Bitcoin is a temporary measure for the company's cash flow, and does not rule out the possibility of continuing to buy in the future. At the same time, he did not sell other tokens such as SHIB and DOGE. What he said in March "will not sell Bitcoin" is a slap in the face. Microstrategy CEO also remotely interacted with Musk on Twitter, sending out the MEME expression of "Diamond Hand" posted by Musk in March, and at the same time dispelled people's criticism. Microstrategy may sell bitcoin concerns. As of writing, Bitcoin closed at 22755.6, up 7.89% for the week, and Ethereum continued to perform strongly, with an astonishing 19.33% gain for the week.

From July 19th to 21st, the fifth Ethereum Community Conference ETHCC5 (Ethereum Community Conference) was held in Paris, during which there were more than 250 speakers and 1,200 participants. Vitalik, the founder of Ethereum, also participated in this meeting and A presentation was given on Ethereum's current development roadmap and reflections on its long-term future. The latest development roadmap of Ethereum is divided into five parts, namely The Merge, TheSurge, TheVerge, ThePurge and The Splurge.

•The Merge (Merge): The merge stage is the ongoing upgrade stage of Ethereum. At present, only the last testnet Ropston has not been upgraded. After the testnet is the long-awaited mainnet upgrade and open bETH redemption back function. But Vitalik did not give the exact time when The Merge occurred.

• The Surge: The Surge stage aims to introduce sharding on Ethereum, and Vitalik emphasized the importance of Rollup technology to sharding in this speech. While Sharding technology can reduce the price of Rollups by 10 times, It also gives theoretically that Ethereum can reach more than 100,000 TPS at this stage.

• The Verge (boundary): VerkleTree will be introduced at this stage, which is an upgrade to Merkle Tree, allowing smaller proof sizes (Proof Sizes), which will optimize storage on Ethereum and help reduce node size improvements The scalability of Ethereum, which has a considerable cost-cutting advantage for future nodes of Ethereum, the current PoS nodes will be more or less limited by the size of cloud storage and elastic hard disks, and cloud storage is a key factor in cloud services. The price is quite expensive. If the storage can be effectively optimized, it will be an effective improvement for the decentralization of Ethereum.

• The Purge: Similar to The Verge, in order to reduce the hard disk space required by the verifier, and no longer force nodes to store all historical data, or delete some historical data to improve performance.

•The Splurge: After the completion of the first four stages, a series of miscellaneous small upgrades will be carried out in this stage to ensure the smooth operation of Ethereum after the completion of the above four stages. Vitalik mentioned that the current Ethereum may only be 40% complete relative to the entire development blueprint, and it will reach 55% after The Merge. Ethereum will enter the PoS era, which is an extremely important milestone for developers.

At the U.S. stock level, several financial reports released last week provided a strong boost to the entire market. Tesla withstood the pressure of the supply chain and the shutdown of the Shanghai factory and handed over a passing answer sheet. Selling Bitcoin The behavior is also a good thing for shareholders, and the stock price also rose by 10%. Netflix also ended three consecutive quarters of thunderstorms through the phenomenal American drama "Stranger Things", but the financial reports of social media software such as Twitter and Snapchat are not particularly satisfactory. Among them, SNAP's stock price plummeted by 40% due to the thunderstorm in its financial report (after a 22% rise in the past 5 days), and at the same time pulled down all companies related to the advertising business such as Google and Meta. It can be seen that the recent financial report has a strong guidance for the stock price sexual meaning. This week, more technology giants will release financial reports, including Microsoft, Apple, Amazon, Google, etc. Considering that the giants have a relatively large weight on the market, the trend of the market this week will depend on the disclosure effect of financial reports, which may cause a certain trend Appear.

In addition, since March and April this year, there have been endless discussions and incidents regarding crypto asset management. Under the premise that crypto institutions provide returns exceeding the market average, how to safely and transparently carry out risk control is an important issue. JZL Capital also has This topic has a deep understanding and participation. People in the industry are welcome to contact us through the contact information at the end of the weekly report.

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2. Macro and technical analysis

After the strong rebound, the market is in an information vacuum period. The FOMC meeting will be held within the week, and it is expected to raise interest rates by 75bp. In the short term, the rebound is over, and the subsequent progress will still be dominated by a downward trend.

BTC stood at 22,000 USDT. Following the release of negative sentiment in the market in the short term, after a certain rebound, it fluctuated sideways. It is expected that the rebound will end in the short term, and there is a possibility of a downward trend in the future.

ETH rebounded by 50% and then stagnated. In the short term, it is more likely to fall.

After the Nasdaq index touched 12,000 in the short term, it turned around and fell. Market expectations were chaotic, and it would be mainly sideways in the short term. It is unlikely that it will fall below 10,000 in the short term. The market will decide the direction after raising interest rates.

U.S. Treasury bond interest rate: The 2-year U.S. bond is sideways, and the current interest rate is 2.99, which has already reflected the intensity of interest rate hikes and the annual interest rate throughout the year.

Ahr999: 368, this position is not as cost-effective as before, but still has a certain cost-effectiveness.

MVRV: 038, the cost performance is the same as Ahr999.

Number of ETH currency holding addresses: The overall number of addresses has increased steadily, and the area of ​​addresses with more than 100 currency holdings is slow.

The short-term sharp rise needs to be digested, so it is unrealistic to expect a sharp rise, and follow-up operations should be based on caution.

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3. Summary of Investment and Financing

• During the reporting period, 21 investment and financing events were disclosed, with financing of approximately US$6.4 billion. In terms of specific tracks, 10 projects on the Web 3.0 & NFTs track accounted for 50%, 3 projects on the Defi track, 3 projects on the Cefi track, and 5 projects on the Infrastructure track;

•background

• 2. Agency of the Week – Susquehanna International Group (SIG)

• background

• In January 2022, TP ICAP, one of the world's largest brokers, announced that it has added quantitative trading company SIG as a market maker for the upcoming spot digital asset trading platform. SIG will join Flow Traders, JaneStreet and Virtu Financial as a liquidity provider for the TP ICAP crypto platform, ensuring that cryptocurrencies can be bought and sold at competitive prices on the trading platform;

•On July 22, 2022, the cryptocurrency exchange Kucoin received a strategic investment of US$10 million from Wall Street quantitative trader SIG. Kucoin’s plan includes using part of the funds to add 300 new employees to its existing team of 1,000 people. Collaborate to launch an incubation program to support other crypto startups, especially those building projects on the Kucoin blockchain;

• On July 24, 2022, given that the Bahamas has a relatively friendly regulatory environment for cryptocurrencies, quantitative trading company SIG plans to open an office in the Bahamas.

  

• Introduction

•SIG is the world's leading quantitative trading financial company headquartered in the United States. It has unique innovative and rigorous trading concepts and technologies, and is a global leader and innovator of high-performance, low-latency transactions. As of now, SIG has more than 2,000 employees worldwide;

• The business started with propriety trading, and gradually expanded to institutional brokerage business, VC/PE investment, etc. Among them, it is well known that its Haina Asia Venture Capital Fund, as one of the largest investors, invested in ByteDance.

•Quantitative job configuration

• As of the press date, Wintermute has completed 3 rounds of financing, including 15 investors including LightspeedVentures, PanteraCapital, Fidelity, com, CoinbaseVentures FBG Capital, etc. The company's total share capital is 16,026,086 shares, including 5 types of shares including Growth and Ordinary:

• The technology team's systems engineers, network architects, technical analysts and software developers collaborate with traders and quants to create industry-leading technical solutions.

4. Encrypted ecological tracking

1.NFTs

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4. Encrypted ecological tracking

1) Dynamic summary: Downward pressure still exists

•Under the uncertain macro situation, the NFT market also maintained a volatile trend after a short-term rebound. However, unlike the cryptocurrency market, blue-chip projects have shown a downward trend in the past 7 days, and there has also been a significant retracement in the 30 days. Prices fell to levels at the beginning of the month.

•On the other hand, we still see the continuous construction of new and old projects at this stage. It can be seen that the phenomenon-level Web3 transformation and the popularization of NFT will become an inevitable trend in the next stage, which we will also focus on below.

• 3,2) Key investment and development progress:

• • Sandbox: AlphaSeason 3 is approaching

• Agoriaverse：

333 metaverse avatars of electronic music king Steve Aoki will officially go live on July 25th, each avatar will be a playable avatar in The Sandbox with unique features that will give owners a chance to Earn SAND by playing.

Signed up with online threat detection firm BrandShield (BRSD) to secure crypto wallets and NFTs on its marketplace. In a two-month period from March to April 2022, BrandShield removed 120 phishing sites and 58 fake social media accounts posing as Metaverse platforms, allowing The Sandbox’s economy to run safely, the company said.

•The Sandbox is collaborating with French multidisciplinary artist, DJ Agoria, to create a conceptual Agoriaverse within The Sandbox. The goal of the collaboration was to transplant Agoria's ideas and concepts into his land in The Sandbox, generating a unique metaverse experience that leverages his talents and diverse vision.

•Agoria, also known as Sébastien Devaud, is an electronic music producer, composer and DJ with a wide range of interests including contemporary art, fashion, AI and poetry. He has produced four albums, including Blossom (2003), The Green Armchair (2006), Impermanence (2011) and the soundtrack to the film Go Fast, which has more than 25 million.

• https://twitter.com/TheSandboxGame/status/1549742169845530624

•Uniswap：

• • Agoria is known for its "drift" style of music, a new style of expressing freedom in musical taste that encourages listeners to flow between styles while allowing artists greater latitude to create. In The Sandbox, he will create an interactive experience combining art, philosophy and music.

• • The Agoriaverse will be centered on the Jungian mandala, with multiple circulation layers built around an iconic totem tree. This artistic vision harmonizes with Agoria's concepts of science and art, chrysalis and butterfly, and root totem. Sebastien Devaud said: "One Life Two Bodies is about creating a sacred space, a space where harmony is at its core. The harmony of two worlds: the transcendence of the virtual self on the one hand, and our physical and real existence on the other." State. In other words, the immanence of code in life.”

Former Coinbase product senior director Will Ruben joined Uniswap as vice president of products. Before joining Coinbase, Will Ruben served as Meta product director and Instagram product management director.https://www.bilibili.com/video/BV1bt4y1t7JJ?vd_source=75907b3c81d535d89456ff580d54dae2

The head of Uniswap product said on Twitter that Uniswap will realize NFT transactions by integrating sudoswap. As previously reported, the NFT trading platform sudoswap publicly released the NFT market agreement sudoAMM, users can create a liquidity pool and gradually buy and sell NFT according to the price curve, provide liquidity for the liquidity pool of buying and selling NFT to earn fees, and directly list their assets at a fixed price NFT. In addition, LP can fully control the pricing of the liquidity pool and can adjust it at any time.

•Singer Deng Ziqi and Warner Music China jointly released the metaverse teaser video for the new album "Apocalypse". The teaser story is set in the metaverse Afterland (paradise) as the background, including the virtual game player Gloria in the image of Deng Ziqi and the virtual game player in the image of Ouyang Nana Lulu. It is reported that the entire big story is composed of 14 episodes of the series MV. The background of the story is based on the concept of the metaverse, covering Deng Ziqi's dialogues in three worlds: Paradise, Wasteland, and the real world. In addition, the new music series will be released on August 9. officially released.

3) Key project introduction: The Potatoz

•Officially launched free mint on July 21, the trading volume exceeded 1600E in just two hours, and has reached 5100E so far, with a total value of $7.7M.

• The Potatoz appeared as an early life form - "potato", intending to build a great ecosystem on the barren land of Memeland. "The POTATOZ" is a collection of 9,999 utility-enabled PFPs. Each PotatozNFT is a passport to the Memeland ecosystem, and will be related to tokens, lists, etc. in Memeland.

• Memeland is 9GAG's web3 ecosystem, aka Memetaverse. 9GAG's previous projects include "YOU THE REAL MVP", a private group of 420 legendary Memelandmvp's.

•MEMELAND CAPTAINS will be the main collection of Memeland. It is a collection of 9,999 utilitypfp. Each captain will unlock $MEME, private club membership, exclusive access to the creator NFT marketplace, IRL events, upcoming Memeland & 9GAG drops, and more.

• • 9GAG is a joke sharing website, founded in 2008 by brothers Chen Zhancheng and Chen Zhanjun from Hong Kong. Users upload and share user-generated images here. Headquartered in Tsuen Wan, Hong Kong, 9GAG has 200 million users worldwide, including websites, apps, Instagram, Facebook, Twitter and TikTok, and now has nearly 17 million Twitter Followers. 9GAG is backed by First Round Capital, FreestyleCapital, GreycroftPartners, TrueVentures, YCombinator, 500 Startups and others.

• •Advantage:

• The project behind it has been in operation for a long time, with a wide audience and not limited to twitter and discord. There are many supporting organizations behind it, and the project party has published more articles, and most of the consultants and investors are celebrities.

• This project is the same project party as YOU THE REAL MVP 9GAG, and the current floor price of YOU THE REAL MVP is 23E.

Freemint+Noroadmap is more in line with the current market participation sentiment.

•Evaluation: It is like a Yuga Labs+BAYC model transformed from web2. The background of entertainment media itself really made 9GAG easy to transform, and let the original fans and crypto natives immediately show their faith in its model, coupled with the assistance of KOL and capital in the industry , if the development progress meets market expectations, it is likely to be a potential competitor to shake the leading position of BAYC.

1) Overall review

https://www.coingecko.com/en/categories/gaming

2. GameFi blockchain games:

1) Overall review

• Last week, chain game concept tokens followed the market and generally rose, but the overall performance was slightly weaker than ETH, Layer2, mainstream public chains and DeFi tokens.

• Among them, AXS rose by a large margin. In addition to the oversold rebound, it also benefited from the launch of the new version AxieInfinity: Origin. The new version focuses on Free to play, which lowers the entry barrier and the number of users has rebounded.

• ENJ's rise is due to good news: Enjin announced that it will cooperate with Square Enix, the developer of the "Final Fantasy" series of games, to release its "Final Fantasy" 25th anniversary commemorative NFT in the spring of 2023, which will use a physical card package + digital code Users can use digital codes to cast NFT on the Efinity (Polkadot parallel chain developed by Enjin, dedicated to NFT) chain.

• Among traditional game manufacturers, SquareEnix is ​​relatively active in exploring GameFi. In addition to issuing NFT, SquareEnix is ​​also an early investor in The Sandbox. Last week, SquareEnix participated in the game payment production platform ZEBEDEE (to be introduced below).

• In contrast, Microsoft's multiplayer online sandbox game "Minecraft" released an announcement on July 20: In order to ensure the player's game experience (due to the speculative mentality of NFT will divert the player's attention from playing the game) Open, turn to profit), will prohibit the integration of blockchain technology in client and server applications, and will not allow the use of "Minecraft" in-game content, such as skins, character items or other modules through blockchain technology Create scarce digital assets. This move is not surprising. Bill Gates is opposed to encrypted assets. He once said that cryptocurrencies and NFTs are scams based on the Greater fool theory.

•Affected by this, the price of NFT Worlds tokens, a metaverse project that focuses on integrating blockchain and NFT into Minecraft, plummeted by more than 60%. The amount increased by 1154.11%. The trading volume in the past 24 hours ranks fourth in OpenSea.

• NFT Worlds is an NFT project that combines the traditional centralized game "Minecraft" with decentralized assets. It is a large-scale multiplayer multiverse game composed of 10,000 unique NFT worlds. Players own and can play in each Create infinite experiences and possibilities in the world. NFT Worlds takes advantage of the open source nature of Minecraft to seamlessly import pre-generated NFT virtual lands into Minecraft, allowing players to browse, build and change these NFT virtual lands in Minecraft. At the end of June, the transaction volume of the "Free to Mint" NFT project NFT Worlds has exceeded 100 million US dollars.

• Its team members expressed that they will strive to continue to operate on the "My World" platform. If they cannot continue to operate, they will consider migrating the project to a game engine and game platform similar to "My World" or transforming it into a GameFi platform. For game developers or Game studios provide technical services. NFT Worlds also stated that it is currently recruiting developers from the Minecraft ecosystem to join NFT Worlds, and the launcher and game pages of NFT Worlds will remain open until the development of the new game is completed.

• Yat Siu, co-founder of AnimocaBrands, posted on his social media account that the "Minecraft" NFT ban excludes a small user base is very "hypocritical" because NFT is more inclusive and NFT-based games should not be excluded , and NFT did not harm any players of "Minecraft". YatSiu pointed out that Mojang Studios' approach is purely based on an opinion, determined by their preferences, without citing evidence, not even correctly pointing out what NFT is, and not communicating with NFT Worlds. What NFT does is to give the community more freedom And power, redistributing the player economy, adding value to the game, as well as decentralizing and redistributing power within the game.

• Tim Sweeney, co-founder and CEO of Epic Game, the well-known game "Fortnite" developer, responded to a user on social media asking the company to follow the example of "Minecraft" developer Mojang Studios When banning NFTs, it stated: "Developers should be free to decide how to build their games, and players should be free to decide whether to play them. I don't think game app stores and OS makers should do so by imposing their views on others. Intervene. We will never.” When Steam announced the ban on NFT and blockchain technology in October last year, the Epic Games Store also stated that it would not follow suit and would continue to support NFT games.

2) Project of the week

• On July 19, ZEBEDEE, a game payment processing platform, announced the completion of Series B financing of US$35 million, with investors including KingswayCapital, TheRaine Group and SquareEnix.

•ZEBEDEE, founded in 2019, is a game financial technology and payment service provider. It has built an infrastructure based on the Bitcoin Lightning Network for game developers, enabling Bitcoin to be used for game rewards and transactions through the Lightning Network infrastructure . For example, game developers can add a token reward system to their games through ZEBEDEE's API and development tools.

•Currently, there are many client games and mobile games on the platform, including "CS:GO". Players can link to Steam to join the server through its ZBD Infuse program, and get bitcoin rewards in real time when killing other players.

• As a platform-based infrastructure, ZEBEDEE can cooperate with any game developer, from 3A masterpieces to casual mobile games, providing game developers with flexibility so that they can focus on game development.

1) Dynamic summary of the public chain

3. Infrastructure infrastructure:

1) Dynamic summary of the public chain

•Aptos

• • The TVL of the encryption market showed a slight rebound trend last week. The overall lock-up volume (including Staking) of all public chains reached 76.3 billion US dollars, an increase of about 6.3% from the 71.8 billion US dollars at the end of last week, and a sharp rebound of more than 50% compared with last week’s ETH. And the gas fee has dropped to about 10gwei, and the activities and popularity on the chain have dropped sharply at this stage, reflecting the speculative sentiment in the market;

• 2) Key investment introduction

• The public chain project Aptos has discussed a new round of financing with investors, and the company's valuation will be 2.75 billion US dollars. The valuation could increase as talks progress, the people added. Using a cutting-edge technology called zero-knowledge cryptography, Aleo enables developers to build decentralized applications that provide users with personalized Web3 services without sacrificing control over their personal data.

•Cardinal

• On March 15th, Aptos, a public chain project initiated by former team members of Meta (formerly Facebook) Stablecoin project Diem, announced the completion of a strategic financing of US$200 million. This round of financing was led by a16z, TigerGlobal, KatieHaun, MulticoinCapital, ThreeArrows Capital, FTXVentures and Coinbase Ventures and others participated in the investment. Aleo’s single round of funding broke the record for the largest funding round ever in the zero-knowledge industry.

• On May 31, the payment giant PayPal confirmed that its venture capital arm, PayPal Ventures, was one of the participants in the $200 million financing of the public chain project Aptos in March. This investment is the first Layer 1 public chain project invested by PayPal Ventures.

Cardinal, the Solana ecological NFT infrastructure agreement, announced the completion of a $4.4 million seed round of financing, led by Protagonist and Solana Ventures, with participation from AnimocaBrands, AlamedaResearch, DelphiDigital, and CMS Holdings.

OMA3

It is reported that Cardinal provides functions including leasing, pledge and ticketing to help improve the practicality of NFT. Cardinal launched the first version of the rental marketplace earlier this year and is expected to release a second version in the coming days, which will feature a redesigned user interface and experience.

4.DAO Decentralized Autonomous Organization

On July 18, AnimocaBrands, TheSandbox, and DapperLabs jointly announced the establishment of the DAO organization Open Metaverse Alliance for web3 (OMA3), which also includes Decentraland, AlienWorlds, Splinterlands, StarAtlas, etc. It is reported that the four core principles of OMA3 are transparency, inclusiveness, decentralization and democratization. OMA3 will exist as a DAO to ensure a transparent and user-centric governance system.

The vision of OMA3 is to provide infrastructure for the establishment of an unlimited metaverse, to achieve interoperability and interconnection of various platforms, and users can freely convert all their digital assets (NFT), identities, etc. in the metaverse of OMA3 without the need to Platform Licensing.

OMA3 will operate through the DAO model, and the specific governance mechanism has not been disclosed; its main projects will include: cross-chain interoperability protocols and asset standards, convertible metaverse identities, decentralization and ownership in the metaverse, cross-world portals (including mapping, indexing and wrapping).

Alliance members intend to join the recently announced Metaverse Standards Forum — a group of Web3 companies that will coordinate the need for and support for existing standards and develop standards relevant to the Metaverse.

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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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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.