UAE Rumored to Hold $40B in Bitcoin

Tai Mo Shan & Terra | Tether Invests $775M in Rumble

Marco Manoppo & Karon Pangestu
December 23, 2024

📢 Sponsor | 💡 Telegram | 📰 Past Editions

Good Morning.

I wrote a piece explaining how BTC is now integrated with TradFi (3,3). Given that we might potentially enter into more correction, it’s a timely piece so that you don’t sell your BTC.

x.com/i/article/1871…
— Marco Manoppo (@ManoppoMarco)
8:12 AM • Dec 23, 2024

In Today's Email:

What Matters: UAE Hold $40B in BTC? 🇦🇪
Product: DoubleZero Highlight 🌐
Charts: Jump $123M Fine, Tether $775M Investments 💰️

Narratives: Everybody is hoping that we’ll quickly revert and have the 3rd leg of the bull cycle, but we’ll see if the hawksih tone spook the broader risk markets.

For daily market updates and airdrop alphas, check out our telegram!

You read and share. We listen and improve. Send us feedback at marco@launchy.app.

TOGETHER WITH

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WHAT MATTERS

UAE Rumored to Hold $40B in Bitcoin

Source: @thepfund

State of play: Unconfirmed reports suggest the UAE has accumulated $40B in Bitcoin, potentially making it one of the largest national cryptocurrency holders.

This speculation gained traction following a tweet by Binance founder Changpeng Zhao referencing the alleged holdings.
Analysts estimate the UAE holds ~411,978 BTC, ranking it among the top three global BTC holders and the leading national government in crypto accumulation.
Middle Eastern countries have been speculated to increase their BTC reserves, however, these reports remain unverified.

What’s next: While the UAE's alleged Bitcoin reserves are yet to be confirmed, the recurring reports signal a growing interest among nations in leveraging Bitcoin for financial diversification and innovation

For builders and investors: If true, this could signal a growing interest from governments in leveraging Bitcoin for financial diversification, which might prompt both developers and investors to watch closely for the long-term impact on market dynamics.

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our list of 500 crypto VC individuals 👇

PRODUCT OF THE WEEK

DoubleZero: A Decentralized N1 Network

Source: Helius

DoubleZero introduces a DePIN leveraging underutilized dark fiber and dedicated communication links to create a high-performance, low-latency global network.

Designed as a new base-layer network, or N1, it is optimized for blockchain ecosystems like Solana and distributed systems.
Unlike traditional L1 or L2 solutions, DoubleZero establishes a foundational framework for permissionless, high-throughput networks.
The architecture incorporates DoubleZero Exchange Points (DZXs), fiber links, and FPGA network devices to filter, verify, and route traffic efficiently.
Tailored blockchain solutions include transaction filtering, state synchronization, and MEV system optimization.
Beyond blockchain, DoubleZero's infrastructure supports applications in content delivery networks (CDNs), online gaming, and AI models.

Other cool products:

TheStandard, zero-interest loans with automated yields.
Orbit, an AI agent creating the endgame abstraction layer.
Griffain, an AI agents that helps users take action on-chain.
Harmonix Finance, a DeFi platform that optimize yields and liquidity.
WAX.FUN, a token creation platform with no presale or team allocation.

CHARTS OF THE WEEK

Tether Invests $775M in Rumble

Source: Google

State of play: Tether, the largest stablecoin issuer, has invested $775M in Rumble, a YouTube-alternative platform with a conservative audience. Rumble's stock rose 44.6% in aftermarket trading following the announcement.

Rumble plans to allocate $250M to growth initiatives and use the remaining funds for a self-tender offer of up to 70M shares at $7.50 each.
Tether will acquire over 103M shares, while Rumble's CEO, Chris Pavlovski, retains his controlling stake.
The investment aligns with Tether CEO Paolo Ardiono's focus on censorship-resistant communication technologies.
Rumble reported $25.1M in Q3 revenue but posted a $31.5M net loss.
This move continues Tether's expansion into sectors like AI, bitcoin mining, and decentralized messaging.

Our take: Spending less than 10% of Tether’s annual net profit ($10B in 2024) to buy favor from Earth’s most powerful nation’s president is cheap.

Jump Trading Subsidiary Fined $123M

Source: Ray Raspberry

State of play: The SEC has fined Tai Mo Shan, a subsidiary of Jump Trading’s crypto unit, $123M for allegedly misleading investors by stabilizing TerraUSD’s peg during its May 2021 de-peg.

Tai Mo Shan spent $20M to prop up the stablecoin, creating the false impression that TerraUSD’s algorithmic stabilization mechanism was functioning as intended.
The penalty includes $86M in disgorgement and $36M in civil fines, Tai Mo Shan settled without admitting or denying the findings.
Do Kwon was accused of promoting the stablecoin’s resilience without disclosing Tai Mo Shan's intervention.

Our Take: I’m betting that this fine is less at most 25% of its net profits from propping up TerraUSD.

QUICK BITES

Unichain plans early 2025 for its public mainnet launch.
Usual catapults Hashnote’s USYC over BlackRock’s BUIDL.
HyperLiquid experiences record $60M in USDC net outflows.
Tether takes a $775M stake in video-sharing platform Rumble.
Saylor floats a $81T Bitcoin reserve plan for the US government.
Metaplanet continues buying BTC with the latest $61M purchase.
Securitize proposes adding BUIDL as Frax USD stablecoin backing.
Microstrategy names former Binance US CEO Brian Brooks to BOD.
SEC fines Jump Trading subsidiary $123M for propping up TerraUSD.
Richard Heart wanted by Interpol on tax evasion and assault charges.
Trump appoints GOP House nominee Bo Hines to head crypto council.

NOTEWORTHY READS & MEME

Qwerty’s read on trading reflection.
Emily Lai’s read on cookie3’s KOL intelligence tool.
Terence’s read on how to follow Ethereum core development.

Bro forgot to switch wallets?
— lynk (@lynk0x)
6:25 PM • Dec 22, 2024

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