Binance joins Elon in Twitter Deal, zkSync “Baby Alpha” Goes Live, Kimbal Musk's Big Green DAO
CZ Teams Up with Elon, ETH Post Merge Update, Green DAOs and zK + EVM Scaling
Happy Halloween Everyone! 👻🎃
@HooiTerrence
By Terrence Hooi
Chief Investment Strategist
The below is the opinion of the authors. Any conclusions are their own. This should not be considered as investment advice. Investing involves the risk of loss and returns are not guaranteed.
1. Binance CEO Joins Elon in Twitter Deal
This week, Binance’s CEO CZ joins Elon Musk in a $44 Billion deal to buy Twitter which was confirmed this week. CZ confirming this week with a $500 Million investment towards the takeover bid.
In this move seeing Crypto billionaire and Tesla and SpaceX CEO officially taking control of the social media platform, it paves an exciting future for crypto to be further integrated into the social media platform or ~1.1% Stake in Twitter.
Binance CEO supported the global free speech platform as he also uses Twitter “very heavily” by joining this movement of allowing people to freely interact and create content, without a single intermediary.
Singular’s Take: Although it’s unclear how involved Binance will be in the operations of Twitter, this move could help Elon pave the way for "Web 3” adoption within the platform.
Singular’s Action: Long Web 3, Short Twitter bans. The company also began the initial development of Bluesky, a decentralized social media platform that is focused on the foundation of creators economy and Web 3.
2. ETH Post Merge Aims to Become *Ultra Sound Money
Now that we are six weeks into Ethereum’s the Merge, the new Proof-of-stake algorithm consumes ~99% less power than the previous proof-of-work (PoW) system since Ethereum was created in 2015.
Based on real time chart tracking ETH issuance on UltraSound Money, only about 1084 has been issued since Ethereum transitioned to Proof-Of-Stake. Let’s take a took ETH’s daily issuance Pre and Post Merge
Pre Merge (PoW)- 518,966 ETH would have been issued, an annualized inflation rate of 3.599%.
Post Merge (PoS)- 13.06 ETH (worth ~$20,000 at current prices), not so great for an annualized inflation rate of just 0.008%.
In addition, zkSync “Baby Alpha” Goes Live this week! zkEVM is considered the holy grail of scaling, as it combines the transactional throughput of a ZKR with the network effects and developer tooling of the EVM Ethereum virtual machine and how it relates to state, transactions, and smart contracts.
Singular’s Take: Although the ETH issuance since the transition to Proof-of-Stake is minimal, Ethereum has already reduced its issuance by 99.99% in the PoS regime.
Singular’s Action: We have already seen ETH appreciated ~+19.2% since the completion of the Merge. Long ETH with 6-12 months horizon. ETH might become an ultra-sound money with the new system being net deflationary since the merge.
3. Kimbal Musk Joins Web 3 Revolution with Big Green DAO
Elon Musk’s brother Kimbal Musk launches a Big Green, non-profit DAO that aims to build “learning gardens” around the US with about 650 schools educating 350,000 children daily.
Fast forward 28 years, Musk sees parallels with Web 3 with strong conviction that “blockchain is now here the internet was in the early 90s”. Musk’s Green DAO aims to improve nutrition security while improving the mental health throughout the US. Musk added during the ETHDenver this year” It improves your nutrition security. It improves your mental health.”
Singular’s Take: Kimbal Musk’s ties to fun run deep starting with a restaurant group in Colorado followed by urban farming startup based in Brooklyn, NY.
Thanks for reading and see you again next week!