Today's news highlights:
1. The Prime Minister of Montenegro states that the procedures for extraditing Do Kwon to the U.S. have been completed.
2. The IRS releases temporary cryptocurrency tax relief measures allowing CeFi exchange users to bypass tax regulations in 2025
3. Sonic SVM: 57% of the total SONIC token supply will be allocated to the community, with the TGE scheduled for January 7, 2025.
4. SPACE ID discloses its 2025 roadmap: plans to expand its business beyond Web3.
5.FLock.io announces the launch of its mainnet and token generation event on Base
6 Musk tweeted twice containing frog elements
7. Dragonfly managing partner releases six key predictions for 2025: The distinction between L1 and L2 is disappearing, and EVM market share will continue to grow.
8. Messari releases six predictions for 2025: The outstanding performance of Hyperliquid may have ended, and ETH is expected to outperform SOL.
9. NFT sales in 2024 reach $8.83 billion, a year-on-year increase of 1.1%
Regulatory news
The Prime Minister of Montenegro states that the procedures for extraditing Do Kwon to the U.S. have been completed.
According to Bloomberg, Montenegro's Prime Minister Milojko Spajic stated on Tuesday that the country has completed the procedures for extraditing Terraform Labs co-founder Do Kwon to the U.S. Spajic posted on the X platform, stating, "This extradition demonstrates our unwavering commitment to international justice and the rule of law."
Do Kwon faces lawsuits in New York and Seoul due to the 2022 collapse of the $40 billion TerraUSD stablecoin. Last year, he was arrested in Montenegro for traveling with a forged passport. After a civil trial over allegations by the U.S. Securities and Exchange Commission (SEC), Terraform and its founder Do Kwon were found guilty of fraud. Terraform has agreed to pay $4.5 billion to settle with the SEC.
Switzerland plans to incorporate Bitcoin into its constitutional framework and has now initiated a referendum review process.
The Swiss Federal Government has officially begun reviewing a nationwide referendum proposal titled 'Building a financially robust, sovereign, and responsible Switzerland (Bitcoin Initiative).' This proposal has been published in the Federal Gazette and is entering the signature collection phase, aiming to incorporate Bitcoin into the Swiss national financial system through constitutional amendments.
The IRS issues temporary cryptocurrency tax relief measures allowing CeFi exchange users to bypass tax regulations in 2025.
According to Bitcoin.com, the IRS has released a temporary relief measure that will allow holders of cryptocurrencies on centralized exchanges to bypass strict tax regulations in 2025, thereby retaining flexibility in reporting and tracking digital asset sales. The IRS's temporary relief allows taxpayers to continue using their own records or tax software to identify the specific units sold. Chandrasekera stated: 'This means that if you sell assets on a CeFi broker, you can still use your books and records/crypto tax software to document the specific units you are selling.' The relief period only applies to CeFi transactions from January 1, 2025, to December 31, 2025. After this date, taxpayers will need to formally choose an accounting method with brokers.
Ten regions in Russia will completely ban cryptocurrency mining starting January 1, with three additional regions implementing partial bans.
Ten regions in Russia will completely ban cryptocurrency mining starting January 1, with three additional regions implementing partial bans. The government decree was passed on December 23, stipulating a complete ban on mining from January 2025 to March 2031, while in three other regions there will be partial restrictions each heating season (from November 15 to March 15 of the following year, except for the first year after the ban starts on January 1, 2025). Russian Deputy Prime Minister Alexander Novak stated in late December that the number of regions banning cryptocurrency mining could increase if requests from governors are received. The authorities of the Republic of Khakassia have already requested the Ministry of Energy to restrict mining activities in the region.
Syria proposes to legalize Bitcoin to promote economic recovery.
The Syrian Economic Research Center has proposed a plan urging the transitional government to adopt Bitcoin and other digital assets to cope with inflation, stabilize the economy, and attract global investment. This proposal comes amid significant rebuilding challenges following decades of war and financial disasters in the country. The focus of the proposal is to use Bitcoin as a lifeline for Syrian citizens and their ailing financial system. It suggests establishing a regulatory framework to legalize the use of Bitcoin in transactions, mining, and financial dealings.
Project dynamics
Binance Labs: In 2025, it will still 'focus on infrastructure' rather than price trends or market speculation.
Binance Labs' investment director Alex Odagiu stated that regardless of market cycles, the company will continue to support startups in the fields of Web3, artificial intelligence, and biotechnology. Binance Labs expects cryptocurrency venture capital to remain strong in 2025, but it is still 'focused on infrastructure' rather than price trends or market speculation. Odagiu emphasized that projects with real application scenarios, high product-market fit, strong teams, and sustainable revenue models are most likely to succeed.
Tangem wallet inadvertently collected users' mnemonic phrases due to an email-related failure.
Crypto wallet provider Tangem recently fixed a major security vulnerability in its mobile application, which had inadvertently collected some users' private keys via email. Previously, Reddit users raised concerns, pointing out that Tangem exposed users' private keys to email accounts and its employees, threatening the safety of investors' funds. User u/areklanga particularly noted that Tangem did not respond appropriately to the issue, and that users' private keys could remain in multiple email histories and ticket tracking systems, posing a security threat to all Tangem users.
On December 30, Tangem acknowledged the issue and explained that it was a bug in the mobile app's log processing, which has now been resolved. When wallets were created through mnemonic phrases, private keys were mistakenly logged in the application logs, which could be accessed during interactions with the support team. On the same day, Tangem released an app update, but did not mention specific details on its official site. Tangem also confirmed that it has permanently deleted all logs and attachments sent to the support team to ensure no data residue.
Although Tangem stated that the vulnerability only affected a small number of users, some members of the crypto community remain dissatisfied with its low-key handling of the issue. As of December 31, Tangem had not issued related announcements on social media. To mitigate potential private key leakage risks, all Tangem users are advised to update their mobile applications immediately.
CryptoQuant: Binance's stablecoin reserves hit a new high of $31 billion, indicating buying pressure is rising.
CryptoQuant contributor Darkfost stated that Binance's stablecoin reserves reached $31 billion on December 11, a record high. Notably, Binance's stablecoin reserves were only $7 billion in June 2023, having grown nearly fivefold since then. An increase in stablecoin reserves typically indicates rising buying pressure. The current reserve level remains around $30 billion, suggesting that investors are still actively engaged in the market, potentially maintaining strong buying pressure.
SPACE ID discloses its 2025 roadmap: plans to expand its business beyond Web3
The decentralized domain protocol SPACE ID disclosed its 2025 roadmap on its official blog: 1. Continue to expand identity features to more blockchains and ecosystems; 2. Begin planning to expand its business beyond Web3, providing integration between Web2 and Web3 domains; 3. Designing a brand-new way to simplify on-chain transaction processes, creating a customized solution to unify wallet addresses; 4. Exploring new partnerships in 2025.
Five Pudgy Penguins sold for a total of $175, possibly due to the seller misreading the price.
According to Cointelegraph, someone sold five Pudgy Penguins NFTs for a total of $175 today, with speculation that the seller mistakenly thought the price of 35 USDT was 35 ETH ($117,000), resulting in a loss of over $500,000.
Coinbase CEO calls for X platform to integrate USDC for payment
Coinbase CEO Brian Armstrong has expressed a desire to integrate Circle's USDC into the X platform's payment system. In a post on December 29, Armstrong suggested that USDC payments would be a valuable addition to the platform and urged the X team to explore implementing this feature.
Before this public call, Coinbase's chief engineer Travis Bloom had also made a similar suggestion, wondering when X's owner Musk would implement the function for users to send and receive USDC on the Base network. Market observers noted that implementing such a function aligns with X's broader vision of introducing a payment system, transforming the social media platform into a 'super app.'
In January, X announced plans to launch a peer-to-peer payment service similar to PayPal. While details on whether the currency used for this service will be fiat or cryptocurrency remain unclear, the platform has yet to launch the plan. However, X has made significant progress in obtaining money transmission licenses across the United States. Its subsidiary X Payments has now obtained licenses in 33 states, including California, Illinois, and Virginia.
FLock.io announces the launch of its mainnet and token generation event on Base
Decentralized AI training platform FLock.io officially launches its mainnet on Base. This release coincides with the token generation event (TGE) of its native token FLOCK, which will serve as a utility token for the FLock ecosystem through incentives and rewards for community participation.
The FLOCK tokens will be airdropped today to users participating in the incentive testnet during the token generation event (TGE). Users can access the platform to participate in decentralized AI training to earn FLOCK tokens. These tokens will play a vital role in the FLock.io ecosystem, facilitating collaboration between data providers, training nodes, and computing providers.
Previously reported, FLock announced its tokenomics and airdrop plan: 66.7% allocated to the community and ecosystem.
Sonic SVM: 57% of the total SONIC token supply will be allocated to the community, with the TGE scheduled for January 7, 2025.
Sonic SVM on the Solana SVM blockchain announces its native token SONIC's tokenomics; SONIC will serve as the native token for Sonic SVM and Multi-SVM ecosystems to drive long-term growth and development.
The total supply of SONIC is 2.4 billion tokens, with 57% allocated to the community, including community and ecosystem development (30%), initial claims (7%), and HyperGrid rewards (20%). The TGE is scheduled for January 7, 2025, with an initial circulating supply of 15% of the total. SONIC will be fully distributed within six years, by which time all SONIC will be in circulation, with the majority allocated to the community. No team or investor tokens will be unlocked in the first 12-18 months post-launch, and locked tokens cannot be staked.
The initial claim snapshot for SONIC has been completed as of December 31, 2024. 7% of the total supply of SONIC has been allocated to initial claims. The eligibility check tool for the initial claim program will go live on January 3, allowing users to verify if their wallets meet the claim criteria. Meanwhile, the SonicX TikTok airdrop event will remain open until January 6, providing more users with opportunities to acquire SONIC.
UXLINK announces that 10% of the total supply will be allocated for the second quarter airdrop.
The Web3 social platform and infrastructure UXLINK announced in its official blog that it will allocate 10% of the total supply for the second quarter airdrop to users and ecosystem partners, similar to Q1. It will also use anti-witchcraft technology to ensure that genuine community contributors receive airdrop rewards.
Michael Saylor: The BTC yield from MSTR financial operations since the beginning of Q4 is 47.8%
MicroStrategy co-founder and executive chairman Michael Saylor stated on the X platform that since the beginning of Q4, the BTC yield from MSTR financial operations has been 47.8%, bringing a net gain of 120,600 BTC to the company's shareholders. Calculated at $96,000 per BTC, this quarter's profit amounts to $11.6 billion.
Re-staking protocol ether.fi launches Berachain incentive deposit treasury
The Ethereum re-staking protocol ether.fi tweeted about launching the Berachain incentive deposit treasury, supporting deposits of weETH, WETH, stETH, eBTC, wBTC, cbBTC, and LBTC. After the launch of the Berachain mainnet, deposits will remain locked for 90 days.
Previously reported, Ethena's Berachain incentive deposit treasury is now live.
Africa accounts for 3% of the global Bitcoin mining hash rate, with Ethiopia contributing 2.5% through renewable energy.
According to Forbes, as of December 2024, Africa currently accounts for 3% of the global Bitcoin mining hash rate, with Ethiopia alone contributing 2.5%, which is more than double the entire production of the African continent in 2023, and all through renewable energy. According to data from the Ethiopian Electric Power (EEP), this year alone, Ethiopia earned over $55 million from electricity sales from Bitcoin mining, accounting for 18% of its total revenue.
Following Ethiopia's approval of Bitcoin mining earlier this year, local Bitcoin mining operations have grown significantly, with spending on mining infrastructure exceeding $1 billion in 2024 (reportedly), and other countries like Kenya joining the ranks of African nations eager to use Bitcoin mining to stimulate economic growth, electrify communities, and manage green energy projects. Africa has become a popular location for Bitcoin miners globally due to its access to the cheapest green energy in the world, with Ethiopia's price at 3.2 cents per kilowatt-hour.
The RWA stablecoin protocol Usual hinted on Twitter that it will activate the token fee switch.
The RWA stablecoin protocol Usual hinted on Twitter that it will activate the token fee switch: 'The era of fee switches begins. 2025 marks a turning point for DeFi: real value, real allocation. Get ready for your USUAL on January 7.'
Musk tweeted twice containing frog elements
Musk reposted a tweet containing frog elements today at 3:57, captioning it 'Kek.' Additionally, at 5:00 (Beijing time), he tweeted 'Brothers in Arms' along with an image of a Roman general's pepe.
Previously reported, Musk changed his personal profile picture and nickname on the X platform to Kekius Maximus. 'Kekius Maximus' is a term that combines internet culture with ancient Roman naming traditions. The 'Kek' here originates from internet slang, commonly seen in meme culture, especially within the 4chan community, where 'kek' serves as a substitute for 'LOL,' expressing laughter or humor.
Dragonfly managing partner releases six key predictions for 2025: The distinction between L1 and L2 is disappearing, and EVM market share will continue to grow.
Dragonfly managing partner Haseeb Qureshi releases predictions for the cryptocurrency market in 2025, divided into six parts: L1s/L2s, token releases, stablecoins, regulation, AI agents, and crypto x AI.
1. L1/L2
The distinction between L1 and L2 is disappearing. Users can no longer perceive the difference between L1 and L2. Despite the strengths of SVM and Move, the market share of EVM is expected to grow in 2025. Solana will force more blockchains to optimize for low latency.
2. Token release
The era of mass airdrops through point programs for everyone has ended, moving toward a dual-track world.
The first track: If a project has clear metrics, such as exchanges or lending protocols, they will distribute tokens entirely based on points.
The second track: Projects without clear metrics (such as L1 and L2) will turn to crowdfunding. They may conduct small-scale airdrops to reward social contributions, but most tokens will be distributed through crowdfunding.
Memecoins will continue to compete for market share with 'AI agent' coins.
3. Stablecoins
The use of stablecoins is set to surge, especially among small and medium enterprises. Not just for trading and speculation, real businesses will begin to use on-chain dollars for instant settlements. It is expected that by the end of 2025, banks will announce the issuance of stablecoins. They do not want to fall behind. But especially with Lutnick serving as the Secretary of Commerce, Tether will remain in the top position. It is expected that Ethena Labs will attract more capital, especially as government bond yields continue to decline in the coming year.
4. Regulation
The U.S. has passed stablecoin legislation, while broader market infrastructure reforms (FIT21) have been postponed. The adoption of stablecoins is accelerating, while Wall Street's adoption, asset tokenization, and other TradFi integrations will lag behind. Under Trump's leadership, Fortune 100 companies will be more willing to offer cryptocurrencies to consumers, with tech firms and startups showing a higher risk appetite.
5. AI agents
The AI agent craze may continue into 2025 but will ultimately fade away.
6. The actual combination of cryptocurrency and AI
AI's impact on cryptocurrency is a major direction, but cryptocurrency can also affect AI; truly autonomous agents will pay each other with cryptocurrency. Once there are relaxed stablecoin regulations, you will start to see even large companies running AI agents using stablecoins for agent-to-agent payments, as they are easier to set up than bank accounts; we will also see more and larger-scale decentralized training and inference experiments.
Messari releases six predictions for 2025: The outstanding performance of Hyperliquid may have ended, and ETH is expected to outperform SOL.
Messari releases six predictions for 2025 on the X platform, as follows:
The outstanding performance of Hyperliquid may have ended.
VIRTUAL FDV will surpass TAO FDV within three months.
Pudgy Penguins surpass CryptoPunks to become the hottest PFP series.
Peaq will surpass all L2s in 2025.
ETH's performance is expected to outperform SOL in 2025.
The AI agent framework is expected to peak in Q1 2025 and will not recover.
Financing news
FalconX is in talks to acquire crypto derivatives startup Arbelos, with an announcement expected in the coming days.
According to Bloomberg, digital asset trading and brokerage firm FalconX is in advanced talks to acquire Arbelos Markets, a derivatives startup founded by two veterans of the crypto industry in 2023. According to insiders, the deal will be financed through a cash and FalconX stock mix and is expected to be announced in the coming days. It is currently unclear what the valuation of Arbelos will be.
FalconX co-founder and CEO Raghu Yarlagadda stated in October that he expects a wave of industry 'consolidation' and added that the company will actively seek acquisition targets.
Crypto derivatives liquidity provider Arbelos announced a $28 million financing led by Dragonfly Capital in May 2024. FalconX was one of the investors in this round, with other investors including Circle Ventures, Deribit, Paxos, and StarkWare.
FalconX, founded in 2018 and headquartered in San Mateo, California, was valued at $8 billion when it raised $150 million in 2022. The company is backed by investors like Tiger Global, GIC, and B Capital.
Important data
Ethereum spot ETF saw a net inflow of $35.9324 million yesterday, with the ETF net asset ratio reaching 3.01%.
The Bitcoin spot ETF saw a net inflow of $5.3181 million yesterday, with the ETF net asset ratio reaching 5.69%.
A trader turned $1,947 into $2.34 million by trading KEKIUS tokens.
According to OnchainLens monitoring, a trader turned $1,947 into $2.34 million. 17 days ago, this trader purchased 35.57 million KEKIUS for $1,947 using only 0.5 ETH. So far, this trader has sold 27.93 million KEKIUS for 397.8 ETH (worth $1.34 million) and currently holds 7,647,148 KEKIUS, valued at $1 million.
After Musk changed his social media profile name to 'Kekius Maximus,' the KEKIUS token on Ethereum surged by about 110%.
NFT sales in 2024 reach $8.83 billion, a year-on-year increase of 1.1%
NFTs end the year with strong momentum, surpassing the record for digital collectibles sales in 2023, with an increase of over $100 million. On December 31, NFT data tracking platform CryptoSlam reported that blockchain-based digital collectibles sales reached $8.83 billion in 2024. This record is over $100 million higher than the NFT sales in 2023, which was around $8.7 billion. This marks a year-on-year growth of 1.1% in NFT sales.
Ethereum remains the highest-selling blockchain in NFT history, reaching $44.9 billion. Solana follows closely with sales of $6.1 billion, while total sales of Bitcoin-based NFTs reached $4.9 billion.
In December, NFT sales totaled $877 million, making it the fifth-best month of performance in 2024. The sales growth in December was driven by increased sales of Ethereum series NFTs, with the NFT monthly sales on that blockchain reaching $482 million. Bitcoin-based NFT sales totaled $172 million, while Solana-based NFTs achieved $100 million in sales in December.
Despite the increase in NFT sales, this year's figures are still far below those of 2021 to 2022. In 2021, NFTs ended the year with sales of $15.7 billion, up 43.9% from the record in 2024. In 2022, NFT sales totaled $23.7 billion, 62.8% higher than this year's record.
A whale bought ETH in a recent wave and sold it for $2.4 million in profit within the past half hour.
According to on-chain analyst Yu Jin's monitoring, as ETH prices rebounded tonight, a certain whale used 82.34 million USDT to buy 25,204.6 ETH at an average price of 3,322, and sold all of it at an average price of 3,417 after the price increase, earning $2.4 million.
This whale made a total of 23 swings in 2024, earning a cumulative profit of $7.77 million. Out of 23 swings, there were only 4 losses and 19 profits.
Investment in blockchain startups reached $13.6 billion in 2024.
According to Cointelegraph, citing DeFi Report data, investment in blockchain startups reached $13.6 billion in 2024, accounting for about 4.9% of the total investment (which was $279 billion) in 2024. This data reflects a recovery in the cryptocurrency industry since 2023 when crypto companies secured $10.1 billion in venture capital funding. However, the industry still lags far behind the peak in 2021, when crypto startups raised $32.4 billion.
One of the highlights of 2024 is that after Berachain secured $100 million to support its modular blockchain development platform, Monad Labs raised $225 million to build a layer 1 smart contract network. Additionally, the Bitcoin equity protocol Babylon raised $70 million, while the tokenization platform Securitize received $47 million from BlackRock.
Looking ahead, PitchBook's forecast indicates significant growth in the crypto space in 2025, expecting to attract over $18 billion in capital. Analysts from Galaxy Research also anticipate that the surge in venture capital activity will be jointly driven by declining interest rates and clearer regulations in the crypto space, which is expected to increase investor interest in venture capital opportunities.
