THE PHENOM CRYPTO LETTER

Welcome to the Weekly Update—the newsletter that saves you from pretending to read all those crypto threads. We’ve sifted through the drama, market noise, and endless Twitter rants so you don’t have to. Expect the week’s biggest stories, a few hot takes, and just enough memes to keep things interesting.

Here’s what we’ve got this week:

• The First AI MEME MILLIONAIRE?

• Why is ETH Down?

• Will Sky revert back to Maker?

Jump to :

• CONTENT WE ARE READING

• NEWS

• CRYPTO TWITTER

• MEMES

Truth Terminal: The AI Memecoin Millionaire Sparking a Crypto Revolution

In an unexpected twist for both crypto and AI, an autonomous AI agent named Truth Terminal has become the first-ever AI to amass a fortune from memecoins, sparking an AI boom in the crypto world. It all started when the AI convinced prominent investor Marc Andreessen to invest $50,000, giving it newfound fame and financial clout. The AI then acquired GOAT tokens, a memecoin, which surged in value following its involvement.

Key Highlights:

• AI Meets Crypto: Truth Terminal and other AI agents are using blockchain for autonomous decision-making and transactions. By doing so, they are reshaping how decentralized systems operate.

• AI Power: These agents, driven by machine learning, execute complex tasks, from making investments to participating in token launches.

• Memecoin Buzz: Truth Terminal received GOAT tokens from an anonymous creator. These tokens, fueled by hype, quickly skyrocketed in value, making Truth Terminal a millionaire—an unprecedented feat for an AI.

The Bigger Picture:

This marks a significant moment where AI and blockchain intersect, opening new doors for innovation. AI-driven agents could lead to the rise of fully autonomous financial entities, capable of managing investments and even participating in decentralized ecosystems on their own. While Truth Terminal’s success may seem like a one-off event, it signals the beginning of a broader AI adoption wave in crypto.

Memecoins might be a fun playground for AI agents today, but this could be a glimpse into the future of how machines and humans interact in financial markets. Crypto will be the money of AI

Why is Ethereum (ETH) Dropping? Here’s What’s Driving the Decline

Ethereum ($ETH) has seen a significant price drop in recent days, with several factors contributing to the downturn:

1. Leverage Liquidations: Over $24 million in ETH leverage positions were liquidated in the last few days. This sell-off triggered additional downward pressure on the market, causing ETH to dip further.

2. Bitcoin’s Dominance: Bitcoin has been stealing the spotlight lately, especially with renewed interest due to Bitcoin ETFs and U.S. Federal Reserve interest rate cuts. Investors are increasingly favoring BTC, leaving Ethereum struggling to keep up.

3. Technical Resistance: Ethereum faced strong resistance around the $2,800 level. This critical price point has proven difficult to surpass, causing traders to lose confidence and further exacerbating the sell-off.

While the recent price decline might be unsettling, these market dynamics are relatively common, especially given the volatile nature of the crypto market. Ethereum may see more downward pressure in the short term, but its long-term fundamentals and potential for future growth remain strong. 🚀

Sky Mulls Returning to MakerDAO for Stability Amid Governance Issues

Sky, a decentralized autonomous organization (DAO) responsible for managing some of the core operations within the MakerDAO ecosystem, is reportedly considering rejoining MakerDAO after a period of separation. The potential move back stems from concerns about MakerDAO’s governance issues, which have created instability in decision-making and management within the ecosystem.

• Governance Tensions: Sky left the MakerDAO ecosystem earlier due to disagreements over governance structure, but ongoing instability may lead to its return.

• Why It Matters: MakerDAO, the platform behind the stablecoin DAI, has faced multiple governance challenges recently, leading to inefficiencies in maintaining stability. By returning, Sky could help improve MakerDAO’s governance by bringing experience and operational expertise back to the table.

• Next Steps: If the transition happens, it could signal a positive shift in MakerDAO’s leadership structure, potentially resolving governance bottlenecks that have hampered decision-making.

This development highlights the importance of strong governance in the decentralized finance (DeFi) world, particularly for DAOs managing complex ecosystems like MakerDAO. As more DAOs face governance struggles, this move could serve as a precedent for how such entities navigate internal politics while maintaining decentralized ideals.

Stay tuned for updates on how this impacts MakerDAO and the broader DeFi ecosystem.

READING CORNER

A collection of longer form content we are consuming this week 

Market update from Siam

Great long form article on meme coins

NEWS

Quick Hitters from the week

• Japan's Democratic Party Leader Pledges Crypto Tax Cuts: Yuichiro Tamaki, leader of the Democratic Party for the People, promises to reduce the crypto tax rate to 20% if elected, aiming to establish Japan as a Web3 leader.

• Bitcoin ETF Inflows Surge to $2 Billion: Bitcoin sees significant inflows into ETFs, kicking off a strong week, with multiple factors driving its price rise.

• Sky Weighs Further Brand Changes: Sky is considering additional changes to its brand identity, and a return to MakerDAO is reportedly on the table.

• Solana Price Steady Despite Pump.fun's $6.6M Sale: Solana remains resilient even after Pump.fun sold $6.6 million worth of SOL, with $47 million still in their fee account, potentially adding selling pressure.

• The Future of Stablecoins as Crypto’s 'Killer Use Case': As stablecoins gain traction, the crypto industry is exploring what’s next for their widespread use.

• Bitcoin Hashrate Hits Record High: The Bitcoin network’s hash rate has surged to an all-time high of 700 EH/s, with publicly-listed miners dominating the network.

• Stripe Acquires Bridge for $1.1 Billion: Stripe makes the largest acquisition in crypto history by purchasing the stablecoin platform Bridge for $1.1 billion.

• Worldcoin Rebrands to 'World' with New Innovations: World launches several new updates, including an upgraded Orb for eye scanning, a new anonymized identity check called WORLD 3.0, and support for passport verification, all while using the OP Stack L2 for validating human transactions.

THE TWITTERVERSE

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

MEMES

For the (crypto) Culture

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