Good afternoon, my crypto degens. How are you doing this fine afternoon? I’m not feeling well—my throat is killing me, and I’m tired—but I had to send you some crypto love today, as I do every day, even though only two or three people watch it. So, the market is dipping a bit today, which is great. I took advantage of it and stocked up more through my usual DCA. I love DCA when prices are low, so that’s great news.

Commodities vs. Securities in Crypto

Yesterday, we discussed how the SEC, or the US government, decided that most established crypto coins and blockchains are commodities, not securities. I didn’t explain why that’s a good thing, so let’s dive into it. The main reason is that commodities don’t have to follow as many rules, regulations, and disclosures as securities do. When you classify a crypto asset as a commodity rather than a security, it has significant regulatory and market implications, especially in the United States.

Commodities are regulated by the CFTC and face fewer disclosure and registration requirements. In contrast, securities, regulated by the SEC, must comply with strict rules, registration, investor disclosures, reporting, and ongoing compliances. The benefit is that crypto projects can avoid costly and complex processes. What I love about crypto is that anyone can create a coin. It doesn’t have to be sophisticated or useful; it can simply represent what you’re doing, like I did. Anyone can buy it, participate in your company, or business, just like buying a stock. It’s super simple: you get on the blockchain, send your money to the network, like Solana, and buy whatever you want. If a business does well and the price goes up, you make money. It’s a great system. If they don’t complicate it, it retains its free-flowing nature. But if everything becomes complicated, this won’t be possible anymore.

Benefits of Crypto as Commodities

There are also easier exchange listings. Securities can only trade on registered securities exchanges or alternative trading systems, while commodities can trade more freely on crypto exchanges. Tokens are easier to list, access, and trade globally. There’s reduced legal risk as well. If a token is deemed a security, issuers might face lawsuits or enforcement actions for unregistered offerings. This was happening with the SEC suing crypto companies like XRP, creating a lose-lose situation. Commodities are generally open to retail participants, leading to wider adoption and liquidity.

Additionally, there’s flexibility in token design. Securities are tied to investment contracts, whereas commodities are treated as assets with intrinsic or market-driven value. Projects can focus on utility without being structured as investment vehicles.

Tokenized Memes and Digital Collectibles

Now, this is great news for crypto. Crypto assets are commodities for the most part, anything that’s established. Muse mentioned that the SEC just labeled tokenized memes as digital collectibles, not securities. This is fantastic because you can buy a meme or any coin like a meme, and it’s not a security. You can hold it, buy it, sell it, without extra rules or regulations. Anyone can create one, which is how crypto was meant to be—for the little guy. You can do things easily without needing to be an accredited investor. It’s smooth and easy.

Senator Lumis’s Game-Changing Plan

Next, Senator Lumis just revealed a game-changing plan: every US bank could offer Bitcoin to customers by the end of 2026, despite a $100 million lobbying pushback. That’s incredible. Despite the lobbying, which I dislike because of the corruption and how everyone is bought and sold, imagine every bank offering crypto. That’s amazing. Imagine how many people are going to…

Future Value of Bitcoin and Market Momentum

The future value of Bitcoin is a topic of much speculation. Some suggest that Bitcoin’s fair value is currently $165,000, though it’s unclear how this figure was determined. It seems like an arbitrary number meant to suggest that Bitcoin is undervalued at present. Despite this, the overall sentiment is that Bitcoin’s value will increase significantly over time. The crypto market is gaining momentum, with crypto funds recording $1.06 billion in inflows last week, marking the highest since January’s third week. This is the third consecutive week of inflows, totaling $2.8 billion, which offsets most of the $3.9 billion outflows from the previous five weeks.

Impact of ETFs on Crypto Stability

ETFs have not necessarily stabilized the crypto market. Instead, they seem to amplify Bitcoin’s price movements: when Bitcoin’s price drops, ETFs are sold, and when it rises, ETFs are bought. However, ETFs have attracted more participants to the market, which is seen as a net positive.

Developments in XRP and Corporate Crypto Strategies

Wendy Crypto Wendy O reports that Evernorth has filed a form S4 for a SPAC merger to go public and launch a $1 billion XRP treasury on NASDAQ, which is promising news for XRP enthusiasts. Meanwhile, American Bitcoin (ABTC) has become one of the top 16 Bitcoin holders, surpassing Galaxy Digital with its mining operations and strategic acquisitions. This development is setting a new standard for corporate treasuries in the crypto space.

The Trump Family’s Shift to Crypto

The Trump family, particularly Trump’s sons, turned to crypto after being debanked due to political reasons during Trump’s first term. This shift was driven by the need to manage payrolls and loans without traditional banking services. Their involvement in crypto suggests that Trump may support crypto-friendly policies. The family is involved in Bitcoin mining and DeFi through companies like World No Finance.

BNB Chain and AI Agent Transactions

BNB Chain is leading in AI agent transactions, surpassing Ethereum with over 500,000 daily transactions. Despite its current high price, BNB remains a strong investment. Other chains are cheaper, but BNB’s performance and potential make it a worthwhile consideration.

Animoka Brands and the Avalanche Ecosystem

Animoka Brands, known for creating Axie Infinity, has partnered to accelerate growth in the Avalanche ecosystem. Axie Infinity was a pioneering play-to-earn game that allowed players, especially in developing countries, to earn significant income. However, like many play-to-earn games, it eventually collapsed due to its Ponzi-like structure, relying on new players to sustain payouts. This experience highlights the risks associated with such gaming models.

Bitcoin and Memecoins

We’re on the brink of surpassing BlackRock as the largest Bitcoin holder. It seems like I’m always discussing Strategy in every feed and recording. He’s become the poster child, the cheerleader for crypto, especially Bitcoin. Luxie mentioned, “How can I sleep when some kid turned 79 cents into 858,000?” Someone asked Grog if this was real, and he confirmed it. Although I’m not sure which memecoin it was, it must have been one that went parabolic, and he likely bought in at the very beginning when it had no market cap. It’s insane, like winning a lottery ticket.

The Metaverse Hype

Imagine investing 80 billion in a project, changing your entire company name and brand at a cost of three billion, only to abandon the project. That’s what happened at Meta with the metaverse. There was a massive hype in 2021 and early 2022 about the metaverse, with claims that everyone would live in digital worlds and have all these experiences. I thought it didn’t make much sense. People were saying you’d go to work in the metaverse, connect to your office, and sit in a pretend chair. It seemed absurd. Then Facebook, under Mark Zuckerberg, went all in, changing their name to Meta and aiming to build a massive metaverse. It turned out to be a waste of time.

During that hype, I had Sandbox, which skyrocketed, but unfortunately, I didn’t have Gala, which also soared. I kept buying Sandbox after the market crashed, thinking it was cheap. Then I discovered there were only 13 users a day on Sandbox, a metaverse game where you can build your own worlds and games. With so few users, I realized it was worthless and sold it. It was ridiculous.

Arin Zhao commented about buying a house in the metaverse, referencing the Facebook situation. I did something similar, spending 400 on land in a game. Everything was going up, and it seemed like you just had to throw money at things to see what would succeed. Spending 400 felt insignificant because everything was rising, but then it all crashed. These games, part of the play-to-earn trend, collapsed.

Investing in Crypto

Bitcoin is a different story; just hodl it. There’s a cool graphic, though I’m not a fan of Nike anymore. Nike used to be my favorite brand as a kid because it symbolized superiority, featuring top athletes in their ads. But then they went 100% woke, and it wasn’t the same. I don’t understand why brands get involved in politics; they should stay out of it.

L Davis mentioned that most people sold at the bottom, but those who didn’t are about to see why patience was key. Bear markets aren’t the end; they’re the entry point. Those who held through the chaos will benefit. I’m still in, 100%. Everything is super cheap, and things are going great for crypto laws and adoption. The prices are still incredibly good, and every time there’s a dip, I buy more. Fortunately, I have some money to invest now. I’m happy with this situation and don’t mind if prices stay low for a while; I just keep buying more. I DCA (dollar-cost average) and accumulate, focusing on good coins with strong adoption potential. That’s it for today. I hope you have a great evening, and I’ll see you tomorrow.