Intel Report 17/9

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Analyst Note
For the time being, our intelligence will be delivered through a report-based newsletter, combining LLM systems with human analysis to deliver value-packed web3 reports. Free users can enjoy a lite version, while paid subscribers get full access to daily and seasonal reports. Thank you for your support! - Adam, Lead Researcher.

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Summary
GM, SEC continues its legal battle with exchanges like Kraken over the classification of digital assets as securities. Internationally, the Bank for International Settlements' Project Agora is expanding with major financial firms to explore the integration of tokenized deposits and CBDCs. The BRICS bloc is developing a blockchain-based payment system to reduce USD dependence, potentially impacting global trade dynamics. These developments are occurring as the market anticipates potential Federal Reserve rate cuts, which could significantly influence the valuation and sentiment in the web3 market.

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News Headlines
📊 Fed Rate Decision Looms: Market Speculates on Cut Size

• Current indicators show a 59% probability for a 50 basis points cut and 41% for 25 basis points in the upcoming Federal Reserve rate decision.

• A 50bps cut could evoke concerns over a recession, while 25bps may be seen as standard. Some Democratic senators have called for an even larger cut of 75bps.

• Analysts anticipate a shifting landscape influenced by these upcoming decisions and the growing adoption of tokenization among prestigious asset managers.

💰 MicroStrategy Announces $700M Debt Offering to Buy More Bitcoin

• MicroStrategy plans to raise $700 million by issuing convertible senior notes due in 2028, marking its third debt offering of 2024.

• The proceeds will be used to pay off $500 million in existing debt and to purchase more Bitcoin, continuing the company's strategy of leveraging debt to acquire digital assets.

• Despite significant losses attributed to digital asset impairment, MicroStrategy's stock has surged nearly 295% over the past year.

📈 Crypto Investment Products See $436M Inflow, Ethereum Struggles

• Crypto investment products experienced a significant rebound with $436 million in net inflows, primarily driven by Bitcoin.

• Ethereum continues to struggle, facing $19 million in outflows in one week, adding to a cumulative $98 million over the previous week.

• The ETH/BTC ratio has reached its lowest level since April 2021, raising concerns about Ethereum's profitability compared to Bitcoin.

🎮 Flappy Bird Creator Disavows Revived Game with Crypto Ties

• Flappy Bird's original creator, Dong Nguyen, has distanced himself from a newly trademarked revival of the game, hinting at possible crypto connections.

• The Flappy Bird Foundation claims it obtained rights from Gametech Holdings LLC, which successfully contested Nguyen's earlier trademark claim.

• Hidden website pages suggest that the new game may feature elements of a potential token.

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Market Metrics

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Fundraising & VC
1. Yellow (Seed, $10M) - L3 Protocol with liquidity aggregation
2. Ferma (Seed, $5.2M) - Universal proof generation marketplace
3. 0xAstra (Seed, $3M) - Cross-chain strategy game
4. Limitless Labs (Pre-seed, $3M) - Prediction market
5. Magic Block (Seed, $3M) - Open-source GameFi stack