WEEKLY UPDATE: Trump Wins in Landslide, Whats next?

Plus Pay-to-Play: Tron and Fantom accuse Coinbase of charging $300m to list tokens

Author

will stauner
November 07, 2024

THE PHENOM CRYPTO LETTER

GM,

Welcome to this week’s Phenom Weekly Update, where the news is almost as wild as the markets. With Trump’s landslide election win stirring up global headlines, crypto’s got its own reason to celebrate. The markets think it’s bullish for crypto, and we’re not here to argue. So let’s break down what it means, who’s saying what, and where the smart money might be headed next.

Here’s what we’ve got this week:

Jump to :

Trump Wins, Crypto Spikes: What’s Next?

Donald Trump has secured the U.S. presidency again, and the crypto industry is caught somewhere between bullish optimism and mild skepticism. Here’s a rundown of Trump’s promises and what they might mean for digital assets.

Key Highlights:

  • Gary Gensler’s Exit? Trump is vowing to fire SEC Chair Gary Gensler on Day 1. Gensler, known for a slew of enforcement actions against crypto giants like Coinbase and Uniswap, might be shown the door early (despite his term running until 2025). Whether this “Day One” dismissal happens remains to be seen. But hey, a campaign promise is a campaign promise, right?

  • Ross Ulbricht’s Sentence: In a nod to crypto’s libertarian side, Trump has hinted at commuting the sentence of Ross Ulbricht, the former Silk Road operator serving a double life sentence. Ulbricht’s fate has been a rallying point for crypto freedom advocates for years. This time, Trump’s backing has stirred the pot again, though whether he follows through is, as always, anyone’s guess.

  • Bitcoin Mining and Anti-CBDC: Trump’s playbook includes a pledge to boost Bitcoin mining within the U.S. while blocking any government-backed digital currency (CBDC). It’s a position that aligns with his preference for less central bank control and more decentralized assets.

So, should crypto rejoice? Well, let’s just say the industry has seen plenty of promises before. Whether Trump’s re-election will usher in a golden age for crypto—or just more unfulfilled hype—will depend on how seriously he (and Congress) follow through. Our take is that his win is highly bullish (hard to argue with the markets spiking). We believe a Trump administration will offer clear regulation, a stop to the regualrory war under Biden and the creation of an innovation friendly environment for the first time in cryptos history.

Pay to Play? Sun and Cronje Accuse Coinbase of $300M Token Listing Fees

In industry drama news, recent allegations have surfaced against Coinbase, one of the industry's leading exchanges. Justin Sun, founder of Tron, and Andre Cronje, founder of Fantom, claim that Coinbase demanded exorbitant fees—up to $300 million—to list their respective tokens, TRX and FTM.

Allegations:

  • Justin Sun's Claim: Sun alleges that while Binance listed TRX without charge, Coinbase requested 500 million TRX tokens (approximately $80 million) and a $250 million Bitcoin deposit for custody.

  • Andre Cronje's Claim: Cronje asserts that Coinbase proposed listing fees for FTM ranging from $30 million to $300 million.

These assertions are particularly striking given Coinbase CEO Brian Armstrong's recent statement that "asset listings on Coinbase are free."

Industry Implications:

If these claims hold water, they could prompt a shift toward decentralized exchanges (DEXs), which typically don't impose such hefty fees. Simon Dedic, CEO of Moonrock Capital, suggests that the high costs associated with centralized exchanges (CEXs) might drive projects toward DEXs.

Market Dynamics:

The crypto market is witnessing a growing preference for DEXs. Over the past year, DEX trading volumes have surpassed $250 billion monthly, indicating a significant shift in trading behavior.

Our Take:

The allegations against Coinbase, if substantiated, could accelerate the migration from centralized to decentralized trading platforms, reshaping the crypto trading landscape. As the industry evolves, the balance between accessibility and cost will remain a focal point for projects and exchanges alike. Either way watching some of the biggest names in the industry snipe at each other on X is pure entertainment 🤣 

READING CORNER

A collection of longer form content we are consuming this week 

The election results bode very well for the crypto industry

NEWS

Quick Hitters from the week

THE TWITTERVERSE

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

Up only, plz

BTC hashrate reaches ATH

MEMES

For the (crypto) Culture

crypto boys after the republican sweep

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.

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