Welcome to this week's Phenom Weekly Update, where we’ve got Subnets on the brain.

Bittensor's subnet ecosystem has experienced remarkable growth, with the number of active subnets tripling over the past year, now totaling 100. This expansion underscores the increasing interest in decentralized AI networks and their potential for long-term value creation. Investing in Bittensor subnets over a 36-month horizon presents some interesting potential and I’ve been thinking about that space nonstop.

In other news:

• Worldcoin Launches Iris-Scanning Project in the U.S 

• Morgan Stanley to Offer Crypto Trading via E*Trade

• Kuwait Cracks Down on Crypto Mining Amid Power Crisis.

Scroll down to hear my back-of-the-napkin thoughts on Subnet hodling and more of this weeks news and memes.

To Subnet or Not to Subnet

As you guys know I’m irresponsibly bullish on Bittensor. I’ve invested in a few subnets but primarily I just hold a large bag of Tao. Last night I decided to do a thought exercise on what it might look like to hold subnet alpha tokens long term. What would be a likely outcome if I tossed $10k into a diversified pot of Bittensor subnets and hodled. What does that look like after 36 months?

Assuming my $10k investment equals 27 Tao and the average subnet price is 0.1 Tao thats roughly 270 Alpha tokens. Even if my subnets crash 400% from 0.1t to 0.02t with alpha yields likely holding around 150%+ before their first halving, my initial 270 alpha could swell to 4218. That is now 84 Tao. Pretty solid return.

Now, let’s say TAO climbs to $20k in three years. That $10k investment is now worth $1.6M even with a crash in subnet prices. If those subnet prices hold steady at 0.1 tao is now worth $8.4M.

If you do the math and are bullish on Bittensor, the compounding ability of yield farming on Alpha tokens is pretty compelling. The risk-reward ratio here is incredibly high.

These are just some quick thoughts but I’m going to do a deeper dive into this next week.

-Will

READING CORNER

A collection of longer form content we are consuming this week 

NEWS

Quick Hitters from the week

1. U.S. Recession Could Be a Tailwind for Bitcoin, Says Bitwise Analyst
   A Bitwise analyst believes a potential U.S. recession may actually benefit Bitcoin, with investors turning to BTC as a hedge against economic instability and weakening consumer sentiment. 🔗 Read more

2. Ripple Tried to Acquire Circle for $4–5 Billion, But Was Rejected
   Ripple reportedly made a bid to buy USDC issuer Circle for up to $5 billion, but the deal fell through after Circle turned down the offer, according to Bloomberg sources. 🔗 Read more

3. Tornado Cash Wins Court Ruling as Judge Blocks Further Sanctions
   A federal judge has ruled in favor of Tornado Cash developers, barring new sanctions and marking a major win for open-source code and DeFi privacy advocates. 🔗 Read more

4. BlackRock Files to Tokenize $150B Treasury Trust Shares on Ethereum
   BlackRock has filed to tokenize its massive Treasury Trust Fund on Ethereum, marking one of its boldest moves yet into on-chain finance. 🔗 Read more

5. Saylor: BlackRock’s Bitcoin ETF Will Be World’s Largest in a Decade
   Michael Saylor predicts BlackRock’s Bitcoin ETF will become the biggest ETF globally within 10 years, citing accelerating institutional adoption and the ETF’s early success. 🔗 Read more

6. Coinbase to Launch Yield-Bearing Bitcoin Fund for Institutions
   Coinbase is preparing a Bitcoin investment vehicle for institutional clients that offers yield, aiming to attract more traditional capital into crypto through familiar investment structures. 🔗 Read more

7. Stripe Building Stablecoin Product That Skips US, EU, and UK
   Payments giant Stripe is quietly developing a stablecoin product aimed at emerging markets, intentionally excluding the U.S., U.K., and EU to avoid regulatory hurdles. 🔗 Read more

8. Solana DeFi Protocol LoopScale Exploited for $5.8M Just Two Weeks After Launch
   LoopScale, a recently launched DeFi project on Solana, has been drained of $5.8 million due to an exploit, adding to growing concerns around rushed protocols. 🔗 Read more

THE TWITTERVERSE

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

MEMES

For the (crypto) Culture

📣 Share with your friends and get free stuff! 📣

If you like Phenom Crypto maybe someone you know would as well.

As a way to say thank you in case you refer someone, we’ve built a referral program. Check out our current reward milestones below!