The R Roundup: Solana MemeCoin Craze 😹 - Issue #120

Solana's bullish run has brought its $SOL token flying above the $100 mark, fuelled by a meme coin frenzy and the blockchain's acclaimed transaction speed and low fees.

The value locked in Solana applications soared from $400 million in November to $1.3 billion, reminiscent of levels last witnessed in July 2022. Trading metrics highlight Solana's allure, surpassing Ethereum's volumes and network fees over seven days.

SOL has surged over 830% year-to-date, largely propelled by recent growth. Despite significant selling pressure from FTX's bankruptcy estate, the token maintains strong buying momentum, hovering around $109 per token.

The resurgence of dog-themed meme coin bonk (BONK) triggered a cascade of similar coins like Dogwifhat (WIF), boasting staggering gains of over 10,000% for early adopters.

WIF alone has added 35% to its market cap in the past 24 hours, underscoring the continued frenzy surrounding meme coins in the crypto space.

Developers have jumped on this trend, issuing thousands of meme coins, typically experiencing swift but modest market cap escalations. Analysts anticipate Solana's outperformance to persist, driven by retail investor interest and a surge in Google searches related to Solana, surging by 250% in the last two months.

Phantom Bitcoin Ordinals & BRC-20 Integration 🍊

Phantom's expansion into supporting various chains progresses further with the announcement of enabling Bitcoin, Ordinals, and BRC-20 token trading and transfers.

This feature is currently in beta, offering users an opt-in choice, as outlined in Phantom's recent announcement on X. Expressing gratitude for Bitcoin's foundational role in enabling Solana, Ethereum, and the broader web3 ecosystem, Phantom enthusiastically introduced Bitcoin (in beta) to its platform.

Initially recognized as a Solana-centric wallet, Phantom's pivot toward multichain functionality began with Ethereum and Polygon support. Brandon Millman, Phantom's co-founder and CEO, previously emphasized the importance of cross-chain interoperability in shaping the future of digital asset management.

Since its 2021 launch, Phantom has rapidly gained popularity, amassing over 3 million active users within a year. Credited to Ethereum developers, the wallet offers a browser extension facilitating access to decentralized finance applications.

The platform's growth trajectory continued with a significant funding boost, securing $109 million in Series B financing during early 2022. Paradigm led this funding round, joined by a16z, Variant, Solana Ventures, and Jump Crypto, further cementing Phantom's position within the expanding landscape of multichain digital asset management.

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Hong Kong To Welcome Spot Crypto ETF Applications🇭🇰

Hong Kong is set to pave the way for spot crypto Exchange-Traded Funds (ETFs) as its financial regulatory body, the Securities and Futures Commission (SFC), announces its readiness to accept applications for such offerings.

In a recent joint circular with the Hong Kong Monetary Authority, the city's de facto central bank, the SFC outlined a revised policy for intermediaries engaging in virtual asset-related activities.

This move expands beyond existing crypto futures ETFs, as the SFC is now open to receiving applications for authorization of funds with exposure to virtual assets, including Virtual Asset Spot Exchange-Traded Funds (VA spot ETFs).

The circular delineates strict criteria for these funds, requiring transactions to occur through SFC-licensed crypto platforms or authorized financial institutions. Custody of the assets held within these funds must adhere to specific standards, limiting delegation solely to SFC-licensed VATPs or those compliant with HKMA's crypto custody guidelines.

Regarding valuation, management companies must adopt an indexing approach based on trade volume across major virtual asset trading platforms for spot virtual asset valuation. Furthermore, funds intending to have crypto exposure exceeding 10% of their net asset value require prior consultation with the SFC.

Hong Kong's positive stance on the crypto industry stands in contrast to mainland China's broader crackdown. The region has actively welcomed crypto firms, encouraging banks to collaborate with them. This move signals Hong Kong's openness to embracing innovative technologies.

Three Arrows Capital Founders' $1 Billion Asset Freeze ❄️

A British Virgin Islands court has frozen assets valued at up to $1.1 billion belonging to Su Zhu and Kyle Davies.

Su Zhu and Kyle Davies are the founders of the now-defunct crypto hedge fund Three Arrows Capital, along with Davies’ wife, Kelly Chen. The freeze, initiated on December 18, prohibits the trio from handling their global assets. Teneo, the company’s liquidator, revealed that the court order aims to halt the founders and Chen from managing their assets worldwide. Allegations suggest their actions led to Three Arrows Capital’s significant financial decline, prompting the freeze, equivalent to the alleged deterioration caused.

This development follows Zhu’s September arrest at Singapore’s Changi airport and his recent court appearance in response to Teneo's pursuit to recover $3.5 billion from creditors. A Singapore court had also granted a domestic freezing order just before the BVI court's decision.

Three Arrows Capital faced financial upheaval amid the collapse of the Terra ecosystem, filing for bankruptcy in July 2022. Documents at the time indicated debts exceeding $3.5 billion owed to creditors, marking a challenging period for the firm amidst the crypto market's turmoil.

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