THE PHENOM CRYPTO LETTER

GM,

Welcome to another edition of the Phenom Weekly Update—where we recap the latest happenings in crypto, sift through Crypto Twitter, and make sense of the stuff that actually matters (or at least pretend to). If you’re here for insightful analysis into the latest crypto news, you’re in the right place. Let’s break down the week in crypto

Here’s what we’ve got this week:

• Bitcoin is the Best Performing Asset of 2024

• Crypto is Growing Faster than the Internet

• North Korea is infiltrating the Crypto Industry

Jump to :

• CONTENT WE ARE READING

• NEWS

• CRYPTO TWITTER

• MEMES

Bitcoin Leads the Pack in 2024: The Best-Performing Asset

It’s official: Bitcoin is dominating 2024 as the best-performing asset of the year, according to NYDIG. With gains that surpass traditional investments, Bitcoin continues to outperform, leaving other assets in the dust. 🥇

• Impressive Growth: Bitcoin’s year-to-date returns have beaten out stocks, gold, and bonds.

• Why? Increased institutional interest, regulatory clarity, and its role as a hedge against inflation are driving factors. 💸

• Market Confidence: Despite market volatility, Bitcoin remains resilient, showing its long-term potential.

Bitcoin remains the asset to watch in 2024!

BlackRock: Crypto Adoption Outpacing the Internet’s Early Days 🌐💸

In a major endorsement for crypto, BlackRock—the world’s largest asset manager—has dropped a bold statement: global adoption of cryptocurrency is happening faster than the internet did in its early stages. That’s right, the tech revolution that reshaped how we live and work is being matched (and possibly overtaken) by crypto. Here’s the breakdown:

• Adoption Speed: BlackRock’s data suggests that crypto is growing at an accelerated pace compared to the internet’s early growth trajectory in the 90s. 🚀

• Why So Fast? The infrastructure is already in place! Thanks to the internet, digital payments, and blockchain technology, people can hop into the crypto world with ease. No dial-up modems necessary. 📡

• Institutional Interest: Big players like BlackRock, Fidelity, and even central banks are diving into the crypto pool. Their involvement helps push adoption rates and gives crypto some street cred. 💼

• Crypto Everywhere: More industries are integrating blockchain, from finance to gaming to healthcare. And with the rise of decentralized finance (DeFi) and non-fungible tokens (NFTs), we’re seeing applications that weren’t possible just a few years ago. 🎮💊

The world is changing fast, and crypto is speeding things up even more. As BlackRock keeps betting big on this space, it’s clear: we’re just getting started.

North Korea’s Crypto Infiltration: A Growing Threat to Blockchain Projects

In a shocking twist, North Korean IT workers have successfully embedded themselves within some of the largest crypto projects, including Cosmos, SushiSwap, and Yearn Finance. Posing as developers from countries like the U.S., Canada, and Japan, these workers have been covertly funneling their crypto earnings back to the North Korean regime, reportedly to fund weapons programs.

How It Happened:

North Korean operatives were able to deceive blockchain companies by creating fake profiles, complete with fabricated backgrounds and experience, and securing roles in significant projects. These aren’t just small freelance gigs—they have been involved in high-profile projects, often gaining positions with access to sensitive information. One standout case involves a $7 million hack on Truflation, where a confirmed North Korean operative participated.

Security Risks and Sanctions:

These revelations highlight the growing risks in the crypto industry. Hiring unknown developers without robust background checks opens the door to significant security threats. These covert operatives have proven adept at not only infiltrating projects but also orchestrating hacks and heists.

In addition to the security concerns, there’s also the looming threat of sanctions. Companies that unknowingly hire North Korean workers could face severe penalties from governments worldwide, especially the U.S., which closely monitors North Korea’s illicit activities in the crypto space.

The Takeaway:

The crypto industry's decentralized nature and reliance on remote work create fertile ground for bad actors. As North Korea leverages these vulnerabilities, the need for enhanced security and thorough vetting in blockchain hiring practices becomes paramount. The consequences of overlooking this threat could be catastrophic—not just for individual projects but for the entire crypto ecosystem.

READING CORNER

A collection of longer form content we are consuming this week 

Murad has been all over this week after his talk at Token2049. Catch up on his meme theory in this podcast video

NEWS

Quick Hitters from the week

• Crypto.com Receives Wells Notice from SEC: The SEC issued a Wells Notice to Crypto.com, indicating potential regulatory action over securities violations.

• Samsung Pay Adds Crypto Payments via Alchemy Pay: Samsung Pay integrates with Alchemy Pay, allowing users to spend crypto through the same virtual card already available on Google Pay.

• FTX’s Reorganization Plan Approved by Bankruptcy Judge: Nearly two years after its collapse, FTX’s reorganization plan is approved, marking a significant step toward reimbursing users.

• Telegram to Launch NFT Conversion for Gifts Feature: Telegram plans to enable NFT conversions for its new Gifts feature, expected to launch later this year.

• EigenLayer Loses $5.5 Million in Token Attack: EigenLayer reports an erroneous transfer of $5.5 million in tokens to an attacker.

• Tether Delisting from EU Exchanges: Tether is set to be delisted from multiple European Union exchanges.

• PayPal, EY, and Google Cloud Use Coinbase for B2B Payments: Major corporations turn to Coinbase for seamless business-to-business crypto payment solutions.

• Visa Launches Tokenized Asset Platform: Visa introduces its Tokenized Asset Platform, facilitating the development of fiat-backed and digital asset tokens.

• Kalshi Allowed to Offer US Election Betting: A federal appeals court gives Kalshi the green light to offer prediction markets on US elections.

• SEC Appeals Ripple Case Ruling: The SEC files an appeal, arguing that the Ripple case ruling conflicts with Supreme Court precedent.

THE TWITTERVERSE

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

MEMES

For the (crypto) Culture

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