THE PHENOM CRYPTO LETTER

GM,

Welcome to the Phenom Weekly Update—the only crypto newsletter you need if you’re tired of “to the moon” predictions and philosophical Twitter rants. This week, we’re breaking down the latest drama, and some choice tweets, so you can stay informed. If you’re ready to cut through the noise and get to the good stuff, you’re in the right place. Let’s dive in.

Here’s what we’ve got this week:

• Tether Slams Wall St Journal

• BTC ATH but where’s retail?

• Optimism is handing token likes candy

Jump to :

• CONTENT WE ARE READING

• NEWS

• CRYPTO TWITTER

• MEMES

Tether Slams WSJ for "Stale Allegations" of Faked Bank Documents

Tether is pushing back against a Wall Street Journal report alleging that Tether and its sister company Bitfinex used fake documents and shell companies to open bank accounts. According to the report, leaked emails suggest that these firms went to unusual lengths to maintain banking access, with some emails pointing to intermediaries allegedly using fake invoices in China. Tether dismissed these accusations as “stale” and “wholly inaccurate,” highlighting its compliance with anti-money laundering laws and collaboration with law enforcement.

• WSJ Allegations: The article accuses Tether of using shell companies and falsified documents to retain banking services.

• Tether’s Response: Calling the claims outdated and inaccurate, Tether insists its compliance practices are top-tier.

• Impact on Reputation: This marks another round in Tether’s ongoing battle with mainstream media, as questions around transparency continue to swirl.

Tether's statement stresses its cooperation with authorities, yet the report adds to the ongoing scrutiny of its operations. For now, it seems the debate over Tether’s transparency and practices isn’t ending anytime soon.

Bitcoin Near All-Time Highs – But Where’s the Buzz?

Bitcoin’s price may be brushing up against its all-time highs, but things are unusually quiet in the crypto world. The reason? Retail investors haven’t returned. Here’s why this is big:

Over the last six months, altcoins saw a massive rally, with many coins rising 4-5x, and trending tokens in sectors like AI and memes jumping as high as 10-15x. Yet, retail investors didn’t jump in until the final month of the rally, around February, after months of pumping. This “late arrival” phenomenon mirrors the Pareto Principle: 80% of the gains and attention occur during the last 20% of a market move. In short, retail tends to blink only when the action’s already been running hot for months. 📈

This time around, altcoins have only been rallying for four weeks after a six-month downtrend, so retail attention may still be a few months away. Given the trust built during the last rally, the lag might not last as long—but the window is open for early positioning.

When Bitcoin finally breaks its all-time high, the ripple effect will likely spread wealth into the altcoin market, attracting retail investors and boosting momentum across the space. So, while it may take time for the general public to jump back in, now’s a critical moment for early movers to seize the opportunity before the mainstream catches on. 🚀

Optimism Foundation Hands Kraken $42.5M in OP Tokens – Layer 2 Deal of the Year?

In a hefty move that’s turning heads, the Optimism Foundation has decided to hand Kraken $42.5 million in OP tokens as part of a new Layer 2 agreement. The deal, recently undisclosed is eye turning. This deal is being touted as scaling the Ethereum network, and Kraken's involvement is Optimism's latest push to get major players on board. However, if you need what is essentially a $40m bribe to build on a chain that raises some questions as well…

Here’s the rundown:

• $42.5 Million in OP Tokens: At today’s prices, at the time of signing it was worth $100m, signaling Optimism’s confidence in Kraken as a strategic partner.

• Ethereum Scaling: The deal aligns with Optimism’s goal of making Ethereum more efficient through Layer 2 solutions, reducing congestion and fees.

• Kraken’s Role: Kraken will use the tokens to provide liquidity, integrate Optimism’s Layer 2 tech, and perhaps even win over more retail investors to Layer 2 solutions.

This isn't just a one-time token drop; it's a calculated move to bring Ethereum scaling mainstream, with Kraken playing a critical role in expanding adoption to its customer base. It’s Optimism’s subtle way of saying, “We’re betting big on Layer 2, and you probably should too.” But only time will tell if this collaboration pays off.

READING CORNER

A collection of longer form content we are consuming this week 

NEWS

Quick Hitters from the week

• ETH and SOL Catch Up to Bitcoin’s Momentum: Ethereum and Solana join the rally as Bitcoin narrowly misses a new price record, falling $175 short on Tuesday evening.

• Goat Tokens Moved After 'Terminal of Truths' Developer's X Account Hacked: Developer secures all Goat Tokens following a social media hack that netted $600,000 through a scam token pump.

• Coinbase and Visa Launch Instant Funding Amid Bitcoin Demand Surge: New functionality enables users to fund accounts instantly, enhancing trade access during high-demand periods.

• Hacker Returns $19M in Stolen Crypto to US Government: Just a day after the breach, the hacker returns the funds, potentially avoiding further consequences.

• Microsoft to Vote on Bitcoin Investment Assessment: Places "assessment in investing in bitcoin" on the agenda for December's shareholder meeting.

• South Korea Plans Reporting Mandate for Cross-Border Crypto: New proposal requires reporting of all cross-border crypto transactions, adding regulatory oversight.

• Consensys Cuts Workforce by 20%: MetaMask developer announces a layoff of 20% of its employees amidst strategic restructuring.

• Andreessen’s Boost Helps AI-Powered Fund ai16z Near $100M Cap: Shoutouts from Marc Andreessen push ai16z, an AI-driven VC fund, close to a $100 million market cap.

• Hong Kong to Issue More Crypto Exchange Licenses by Year-End: Pledges to approve additional crypto exchange licenses to support sector growth.

THE TWITTERVERSE

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

MEMES

For the (crypto) Culture

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