THE PHENOM CRYPTO LETTER

GM,

Welcome to the Phenom Weekly Update, where the crypto world proves it’s never short on entertainment. Arthur Hayes is making waves with his big DeSci investments (because apparently, science is the new yield farm). Meanwhile, Hex founder Richard Heart is back in the spotlight—this time courtesy of a police run-in, because why not? And, of course, Michael Saylor is out here preaching the Bitcoin revolution like it’s a full-blown religion. Let’s dive into the drama, the deals, and the Saylor soundbites that are keeping crypto weird.

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• CONTENT WE ARE READING

• NEWS

• CRYPTO TWITTER

• MEMES

Hayes Fund Bets Big on DeSci

Arthur Hayes, Chief Investment Officer of Maelstrom fund, is steering the firm into the burgeoning Decentralized Science (DeSci) sector, aiming to address inefficiencies in traditional scientific research through blockchain technology. In his recent blog post, Hayes emphasized his strategy to "turn the risk dial" towards high-risk investments, focusing on undervalued DeSci tokens.

Maelstrom has invested in seven DeSci tokens: BIO, PSY, CRYO, VITA, ATH, GROW, and NEURON. Notably, BIO represents half of the sector's valuation, while PSY focuses on tokenizing intellectual property related to psychedelics, and CRYO supports cryopreservation research. These tokens offer investors opportunities in funding, governance participation, and early access to product commercialization.

The DeSci sector, currently valued at approximately $2.2 billion, has seen significant growth, with research firm Kaito reporting a 2,600% increase in mindshare in 2024, surpassing interest in AI and memecoins. Maelstrom analyst Lukas Ruppert views DeSci tokens as an asymmetrical bet, highlighting the limited number of "OG DeSci blue chips" and the substantial upside potential of small-cap inaugural BioDAOs.

Hayes maintains a bullish outlook on Bitcoin, reiterating a $200,000 price target and providing insights into the anticipated peak timing.

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Time’s Up: Finnish Police Seize $2.6M in Watches from Hex Founder Richard Heart

In the ever-entertaining saga of cryptocurrency's colorful personalities, Richard Schueler—better known as Richard Heart, the founder of Hex—has once again graced the headlines. This time, Finnish authorities have relieved him of over $2.6 million in luxury watches, predominantly Rolexes, discovered in an Espoo residence. One might say his timing was off.

The charges against Schueler are as varied as his watch collection:

• Tax Evasion: Allegedly dodging taxes between June 2020 and April 2024, with unpaid dues potentially reaching several hundred million euros.

• Assault: Accused of a 2021 incident involving a 16-year-old, which has earned him a spot on Europe's most wanted list.

Not to be outdone, the U.S. Securities and Exchange Commission (SEC) has also taken an interest, charging him with conducting unregistered securities offerings that raised over $1 billion. They allege he misappropriated at least $12 million for personal luxuries, including high-end automobiles and, unsurprisingly, more watches.

Despite these mounting legal challenges, Schueler remains active on social media, continuing to promote Hex and engage with his audience. One might admire his commitment to staying on brand, even as the walls close in.

In the world of crypto, where fortunes are made and lost in the blink of an eye, it's comforting to know that some things—like the penchant for opulence among its self-proclaimed visionaries—remain constant. As for Schueler, perhaps it's time he invests in something more practical, like a good lawyer.

READING CORNER

A collection of longer form content we are consuming this week 

If you are a TAO investor this site tracks all the subnets. Worth looking into as many of them will have their own token once dTAO launches.

NEWS

Quick Hitters from the week

• Trash Collectors in Africa Turn to Crypto for Livelihood: A ReFi project empowers African waste workers to earn crypto while supporting their families, combining environmental impact with financial inclusion. (Cointelegraph)

• Bitcoin’s 2025 Outlook: Balancing Short and Long-Term Prospects: Experts weigh in on Bitcoin's near-term challenges and its long-term potential in the evolving crypto landscape. (CoinDesk)

• Outgoing SEC Chair Gensler Defends Crypto Stance: Less than two weeks before stepping down, Gary Gensler stands by his controversial approach to cryptocurrency regulation. (The Block)

• Crypto Market Liquidations Exceed $655M Amid Second Day of Declines: A steep sell-off triggers massive liquidations as the crypto market struggles to stabilize. (The Defiant)

• Do Kwon's Criminal Trial Scheduled for 2026: Lawyers face the daunting task of sifting through a vast trove of evidence in the high-profile Terra founder's case. (CoinDesk)

• Crypto’s Record-Breaking Year Marred by Kidnappings and Ransom Schemes: The rise of crypto-related crimes highlights the darker side of the industry's explosive growth. (CoinTelegraph)

• Bitcoin ETFs Bought 270% More BTC Than Was Mined in December: Demand for Bitcoin ETFs surged, significantly outpacing the monthly production of new Bitcoin. (CoinTelegraph)

• Coinbase Explores Tokenized Coin Shares on Base: Coinbase considers offering tokenized equity shares for U.S. users on its Base blockchain. (Cryptonomist)

• Tether’s Market Cap Drops $3B as Europe’s MiCA Regulations Bite: The implementation of MiCA regulations sparks a sharp decline in Tether's market cap, reflecting the regulatory challenges facing stablecoins. (The Defiant)

THE TWITTERVERSE

A collection of the most interesting stuff on Crypto Twitter this week

MEMES

For the (crypto) Culture

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