2 November

“Binance chipped in $500 million as an equity partner with Elon Musk to buy Twitter in hopes of using the social media platform as a “sandbox” to deal with Web 3 issues, according to the exchange’s chief strategy officer.

Hillman said the world’s largest cryptocurrency exchange by volume is looking to be a “critical partner” in Twitter’s growth and innovation and would turn to “Web3 solutions” to solve some of the challenges on the platform, such as non-fungible token (NFT) user authentication and whether the platform could be used as payments system to “create small micro transactions.”

We look at this as a massive historic opportunity for R&D.

Being able to attack and address that bot issue is going to be critical to reopening a healthy dialogue around crypto.”

See Also: Elon Musk Tweet Sparks Flurry of Twitter-Themed Dogecoin Tokens

Risk assets, including cryptocurrencies, have recently found a footing on hopes the Federal Reserve will pivot away from jumbo interest rate hikes from December to end the so-called liquidity tightening sooner than expected, and will signal that at its Nov. 2 meeting. However, major investment banks believe the Fed could keep the doors open for continued jumbo rate hikes, and a potential switch to smaller rate hikes would not necessarily imply an early end of liquidity tightening.

The markets appear to have run ahead of themselves in pricing a slowdown in terms of both frequency and magnitude of rate hikes starting from December. Traders expect the rate hike cycle to peak at around 4.8%, down from the terminal rate of 5% priced two weeks ago, according to the futures tied to the Fed funds rate. Bitcoin has gained 10% in two weeks, while the dollar index has dropped by over 2%.

The Fed isn’t done hiking until the data says so. Core CPI is at cycle highs, U3 unemployment is at cycle lows. Corporates tell us their top challenge is hiring. China and U.S. are decoupling. [Capital expenditure] is rising. Food and energy are increasingly scarce. Inflationary pressures seem broad-based and increasingly entrenched. Short-term survey inflation expectations have risen.

The Fed’s job is not done. The Fed will stress data dependence next week. They will get two more NFP and CPI prints before the [December] meeting; if they stay hot, another 75 bps is in the cards, if not, a deceleration to 50 bps is possible.”

See Also: Dollar Reversal Could Bring Inflationary Pressure, Former US Treasury Secretary Larry Summers Warns
See Also: Uniswap Surpasses Bitcoin as Fed Rate Hike Decision Nears
See Also: Bernstein: Small Economic Recovery Would Make Ether’s Tokenomics Favorable

Nearly 40% of voters under the age of 45 reported being more interested in crypto in the current economic climate. Approximately one-third of Black and Latino voters told pollsters they were more crypto-curious because of the economy. Poll results also indicated that young and diverse voters aren’t just more likely to be interested in crypto – they’re also more likely to own it already. Roughly a third of Black (30%), Latino (32%) and young voters under the age of 45 (33%) already own cryptocurrencies.

Of the 2,000 voters surveyed, 37% said they would factor candidates’ policy positions on crypto before casting a vote. The overwhelming majority of voters surveyed in Grayscale’s poll indicated that they want more crypto-savvy politicians in office – and that they want those politicians to establish a clear regulatory framework for the crypto industry.”

See Also: 38% of US voters will consider candidates’ position on crypto in midterms: Survey

Payments firm MoneyGram (MGI) has added a service to its mobile app allowing nearly all U.S. customers to buy, sell and hold bitcoin (BTC), ether (ETH) and litecoin (LTC). The company expects to expand those cryptocurrency selections over the coming year.

The new functionality is being enabled by crypto exchange Coinme, in which MoneyGram made a strategic minority investment earlier this year.”

“When it launches, Aave users will be able to mint GHO against deposited collateral, much like MakerDAO’s DAI stablecoin. But there are a few key differences. For example, Aave will allow users to mint GHO against multiple types of collateral rather than creating a separate vault for each asset, like Maker.

The AAVE community is using the AAVE protocol for creating that stablecoin. So as a liquidity provider, you actually provide liquidity into the AAVE protocol and you earn on those assets that you’re supplying. And at the same time, you can mint the stablecoin.

Kulechov thinks Aave’s GHO will help attract stablecoin users because DeFi makes it more affordable to process transactions. ‘These layer 2s radically decrease the cost of actually transacting and inheriting the Ethereum security in layer 2s.‘”

See Also: Now Anyone Can Create an Ethereum NFT DAO With Zora’s Nouns Builder