• Injective Labs has successfully launched a $150 million ecosystem fund, with support from notable venture capital firms in the Web3 space.
• The ecosystem fund seeks to accelerate the adoption of interoperable systems and decentralized finance (DeFi).
• Members will support promising projects using Cosmos to build innovative solutions across various sectors such as trading, scalability and DeFi.

Injective Labs has recently unveiled a groundbreaking $150 million ecosystem fund, with the support of some of the most influential venture capital firms in the Web3 space. Pantera Capital, Kucoin Ventures and Kraken Ventures are among the firms joining this initiative, which seeks to accelerate the adoption of interoperable systems and decentralized finance (DeFi).

The new ecosystem fund will focus on providing support to developers, projects and teams that are building upon the Cosmos network and creating innovative solutions across various sectors such as trading, scalability and DeFi. This support will come in the form of token and equity investments, mentorship, business development, research, marketing and more. It is hoped that this initiative will encourage more people to join the Injective and Cosmos ecosystems and to help them build the future of open finance.

As part of the new ecosystem fund, Injective will also be hosting a global hackathon to further encourage the development of innovative solutions on the platform. Eric Chen, co-founder and CEO of Injective Labs, expressed his excitement over the success of the new ecosystem fund, noting that it will provide “unmatched opportunities for builders to bring their vision to life.”

The launch of the $150 million ecosystem fund is a clear indicator of the growing demand for interoperable systems and DeFi. It is expected that this initiative will provide a significant boost for the Injective and Cosmos ecosystems, and will help to further the development of open finance.

• Polkadot recently launched an upgrade to its Cross-Consensus Messaging (XCM) infrastructure.
• This launch, dubbed XCM V3, is expected to foster cross-chain interoperability, frictionless cryptoasset transfers, NFT support, and more.
• The DOT token has seen decent price growth in the past seven days, up by more than 22 percent.

Polkadot recently announced the go-live of an upgrade to its Cross-Consensus Messaging (XCM) infrastructure, XCM V3. This launch is expected to bring a vast array of essential improvements to the Polkadot ecosystem, including seamless cryptoasset transfers, enhanced cross-chain interoperability, non-fungible token (NFT) support, and more.

Gavin Wood, the co-founder of Polkadot and former CTO of the Ethereum Foundation, revealed the news via Twitter, describing the launch of XCM V3 as the culmination of exactly 15 months in development. The upgrade is expected to make bridges, cross-chain locking, exchanges, NFTs, conditionals, and context-tracking much more efficient and user-friendly.

The Polkadot native DOT token has seen a decent price growth in the past seven days, up by more than 22 percent. At press time, DOT is exchanging hands for $5.95, with a market cap of $6.58 billion, making it the world’s 12th-largest cryptocurrency.

The Web3 Foundation has recently made it clear to the Securities and Exchange Commission (SEC) that the DOT token is not a security. The foundation is making efforts to bring regulatory clarity to the blockchain space by properly classifying digital assets.

The Polkadot XCM V3 upgrade is expected to increase the efficiency and usability of both Polkadot’s blockchain network and DOT token. With the integration of bridges, cross-chain locking, exchanges, NFTs, conditionals, and context-tracking, this upgrade is expected to bring a whole new level of usability and reliability to the Polkadot ecosystem. We look forward to seeing how this upgrade will affect the price and market cap of the DOT token in the future.

• Mike Novogratz, CEO of Galaxy Digital, believes that the outlook for cryptocurrencies is neutral right now.
• He said that the future of cryptocurrencies won’t be fantastic, but will also not be terrible.
• Novogratz believes that 2023 might be less pleasing for the cryptocurrency market due to the current issues that Gemini and Genesis are facing.

Cryptocurrency markets are in a state of limbo, according to Mike Novogratz, CEO of Galaxy Digital. In a recent interview with CNBC, Novogratz said that the outlook for cryptocurrencies is neither good nor bad at the moment, but rather falls somewhere in the middle. He noted that the future of cryptocurrencies won’t be fantastic, but it won’t be terrible, either.

Novogratz believes that 2023 might be less pleasing for the cryptocurrency market due to the current issues that Gemini and Genesis are facing. He said that they are currently dealing with several issues, which could make the cryptocurrency market more difficult to manage in the first half of 2023. This could lead to an outcome that is less satisfying.

Cameron Winklevoss, one of the co-founders of Gemini, recently sent a scathing letter to Barry Silbert, the CEO of Digital Currency Group, in which he demanded that Silbert be removed from his position and accused the bear market of having a significant negative impact on Galaxy Digital, just as it had on other companies.

Novogratz added that regulators have become increasingly involved in the cryptocurrency space, and this has led to the introduction of more stringent rules and regulations. He said that this has made it more difficult for companies to operate in the cryptocurrency space, as they now have to meet certain regulatory requirements in order to remain compliant.

Despite the current market conditions, Novogratz remains optimistic about the future of cryptocurrencies. He believes that 2023 could be a watershed moment for continued existence and the prospect of growth further into the future. He also believes that the regulatory environment will continue to evolve and become more accommodating to the industry.

Overall, it is clear that the outlook for the cryptocurrency market is uncertain. Novogratz believes that the future of cryptocurrencies will neither be fantastic nor terrible, and that 2023 could be a challenging year. However, he remains hopeful that the regulatory environment will continue to evolve and become more accommodating to the industry, and that the market will find a way to survive and continue to grow.

• Decentraland announced its first metaverse architecture and design biennale embassy event on January 6th, 2023.
• The event will be open to all registered users and will feature lectures, performances, public talks, and NFT contests.
• Opinion leaders, partners, and creators from around the world will be in attendance, allowing for collaboration and grants for realization.

Decentraland, the virtual world powered by blockchain, recently announced its first ever metaverse architecture and design biennale embassy. The event, organized by Dearch.space and Metancy, is set to be deployed at DCL coordinates -67:10 and will be open to anyone who wants to visit.

This unique experience will be a large district that is a union of architectural pieces created by major architects. It will include events, public talks, lectures, and performances and hopes to host over 50,000 visitors over five days, with an additional one-month grace period open to public exposition. Registered users will have a unique opportunity to participate in NFT contests and will be in a position to receive gifts and other merch.

Part of the major visitors will be creators from all over the globe who will be able to pitch new ideas about the Metaverse and can win grants for realization. Opinion leaders and partners funding the organizations will also be in attendance, allowing effective collaboration among creators. The event will be available on two major platforms, Decentraland and Arhead.

The program for the event will start with opening and closing sermons and then will feature lectures and public talks. It’s sure to be a thrilling experience for all involved, and will no doubt set the stage for more exciting events to come. So if you’re a creator, opinion leader, or partner looking to participate in this exciting event, be sure to mark your calendars for January 6, 2023!

Bullet Points:

• Huobi’s native token (HT) has dropped 30% in value over the past month.
• Reports indicate that Huobi has shut down internal staff communication channels and is insisting employees take their salaries in stablecoins.
• Chinese blogger Colin Wu has confirmed that Huobi’s HR department has communicated with employees, asking them to change their salaries from cash to USD Coin (USDC) or Tether (USDT).

Huobi, a Seychelles-based crypto exchange, is facing major trouble with its native token, HT, dropping 30% in value over the past month. Reports across crypto media and crypto Twitter hint at layoffs and potential insolvency, making investors increasingly worried.

Data from the crypto ranking website CoinMarketCap shows the price of Huobi’s HT token has decreased by 9% over the last seven days, and a total of 30.4% in the last 30 days. The drop in HT’s price was attributed to reports that the exchange had shut down internal staff communication channels and insisted employees take their salaries in stablecoins.

Chinese blogger Colin Wu confirmed these reports, writing that Huobi’s human resources department had communicated with the employees, asking them to change their salary from cash to USD Coin (USDC) or Tether (USDT). Those who failed to heed the new instructions were allegedly liable for dismissal. The move sparked protests from some employees, which added to the investors’ uncertainty.

Huobi has yet to make an official statement regarding the reports and speculation. However, some analysts have suggested that the exchange may have decided to move towards stablecoins in order to save money and reduce costs during this difficult financial climate.

Whatever the reason, the news of Huobi potentially facing insolvency and layoffs has sent shockwaves across the crypto industry. Investors are watching closely to see how the situation develops and whether Huobi will be able to get back on its feet.

• Bank of France Governor Francois Villeroy de Galhau has suggested stricter regulatory standards for cryptocurrency firms.
• The Financial Markets Authority (AMF) requires registration of all cryptocurrency businesses offering custody and trading services.
• The Markets in the Crypto Assets bill (MiCA) has been the subject of great deliberations in the EU parliament since September 2020.

The regulation of cryptocurrency firms in Europe is facing a potential setback as Bank of France Governor Francois Villeroy de Galhau has suggested stricter regulatory standards. In a speech on Jan 5th, Villeroy said that due to the recent volatility in the market, France should impose stringent licensing requirements on Digital Asset Service Providers (DASP) before the European crypto regulations (MiCA) take full effect in 2024.

The Financial Markets Authority (AMF) requires registration of all cryptocurrency businesses offering custody and trading services, but so far only about 60 crypto entities, including Binance Holdings, have obtained the AMF registration. The optional DASP license has yet to be applied, and the central bank head has requested for a regulatory framework for DASP’s to be in place by 2023.

The current France law allows for all unlicensed firms to operate until 2026, so the MiCA, if passed in 2024, would have no effect. The MiCA bill has been under great deliberations in the EU parliament since September 2020, with the EU Council, European Commission, and European Parliament all having their say. The bill seeks to provide a unified framework to regulate the crypto industry across the European Union, including provisions on market integrity and investor protection.

Hervé Maurey, a member of the Senate Finance Commission, had proposed an amendment to remove the provision which allowed businesses to operate without a license, but this has been met with resistance. With the French central bank now pushing for stricter regulations, it is yet to be seen what the outcome of the deliberations will be. Nevertheless, it is clear that the crypto sector is facing a potential setback in its attempt to establish itself in Europe.

• Polygon has overtaken BNB Chain as the most used smart contract blockchain in the past month, recording more transactions than BNB Chain.
• Polygon, formerly known as Matic Network, is a blockchain platform that aims to make it easy for developers to build and deploy decentralized applications.
• Despite Polygon having registered more transactions than BNB Chain in the past 30 days, data also shows that ethereum layer 2 projects like Polygon have experienced a steep decline in daily transaction volume over the past year.

In the past month, Polygon has surpassed BNB Chain in terms of transaction volume, becoming the most used smart contract blockchain in the cryptocurrency space. Polygon, formerly known as Matic Network, is a blockchain platform that enables developers to quickly and easily build and deploy decentralized applications. The platform utilizes an ethereum-compatible sidechain system, providing users with a more affordable alternative to the ethereum network.

Polygon’s success is due to the trust that users and developers have placed in it, as well as the major partnerships the platform has made with projects in the cryptocurrency space, and the increasing number of mainstream brands getting involved with DeFi, NFTs, and web3. These developments have helped to solidify Polygon’s position as a leading blockchain platform.

Although Polygon has registered more transactions than BNB Chain in the past 30 days, data shows that ethereum layer 2 projects such as Polygon have experienced a significant decline in daily transaction volume over the past year. This is likely due to the increased competition in the DeFi space, as well as the emergence of permissionless and permissioned layer 2 solutions that offer cheaper, faster transactions.

Despite the decline in transaction volume, Polygon remains one of the most popular smart contract blockchains in the cryptocurrency space. With its easy to use interface, low transaction fees, and increasing number of partnerships, Polygon is well-positioned to continue to grow and be a major player in the blockchain space going forward.

• Japanese gaming giant Square Enix expressed its desire to invest aggressively in blockchain-backed games in 2023.
• Company president Yosuke Matsuda revealed that the company has three focus investment purposes for 2022, including blockchain.
• Square Enix made several efforts in the blockchain game industry in 2022, including the announcement that Final Fantasy collectibles would be available on the Enjin platform.

Japanese gaming giant Square Enix has expressed its desire to invest aggressively in blockchain-backed games in 2023. This move comes in the wake of the uncertainty of 2022, and is sure to establish the company’s foothold in the web3 gaming market.

Company president Yosuke Matsuda revealed that the company has three focus investment purposes for 2022, including blockchain. He stated that the company has devoted “aggressive investment and business development efforts” to blockchain entertainment, which he believes has become a “firmly established buzzword among businesspeople”.

Matsuda noted that Japan was taking steps towards proper crypto regulation, and Square Enix was ready to focus its efforts on decentralized blockchain gaming. Throughout 2022, the company made several efforts in the blockchain game industry. In July, it announced that Final Fantasy collectibles would be available on the Enjin platform, and further revealed its plans to move into the blockchain gaming space.

Square Enix has set its sights on the future, and is sure to make a significant impact on the blockchain gaming industry in 2023. With its aggressive investments and business development efforts, the company is looking to capitalize on the increasing popularity of blockchain-backed games and establish itself as a major player in the web3 gaming market.

• The stock-to-flow (S2F) model’s value estimation for bitcoin currently puts its price at around $109,000, however, the current price is only at $16,700.
• Back in 2011, the S2F deflection was 30.76 meaning that it was trading at nearly 31 times the estimated price.
• The S2F model is a method of valuing commodities based on the relationship between their current supply and the rate at which more is produced, with a higher stock-to-flow ratio indicating a higher value.

Bitcoin’s current price is drastically lower than the stock-to-flow (S2F) model’s value estimation of around $109,000, with the cryptocurrency trading at only $16,700 as of press time. This discrepancy between the estimated price and the current price is the furthest the two have ever been apart, with blockchain analysis service Glassnode noting that bitcoin is worth only 15% of its S2F estimated current value. However, this is not the largest deflection between the two that Bitcoin has experienced.

Back in 2011 when Bitcoin was trading at $18.72, the S2F deflection was 30.76, meaning that it was trading at nearly 31 times the estimated price. This discrepancy between the two values was much larger than the current deflection and highlights the volatile nature of the cryptocurrency market.

The S2F model is a method of valuing commodities based on the relationship between their current supply and the rate at which more is produced. Those who believe in its application, in this case, suggest that bitcoin’s value is directly proportional to its scarcity, with a higher stock-to-flow ratio indicating a higher value. The model gained notoriety because it has been able to successfully predict the long-term price of bitcoin in the past with a notable degree of accuracy.

The S2F model’s predictions are shaped by the idea that as the stock of bitcoin increases and the flow of new bitcoin decreases — due to the halving of the issuance rate, which occurs roughly every four years — the value of bitcoin should increase. This is due to the fact that the decrease in the issuance rate creates a sense of scarcity and drives up the price of the cryptocurrency.

Despite the current deflection between the estimated and current price of Bitcoin, supporters of the S2F model remain confident that the model will hold true in the future. However, with Bitcoin continuing to remain volatile, it remains to be seen if the model will be able to accurately predict its future price.