Yesterday in Crypto - Issue #23

Read time: ~7 minutes

Dubai is aggressively positioning itself as a leading tech hub in the Middle East and North African Region (MENA) by offering substantial incentives to web3 and Artificial Intelligence (AI) companies. The city's announcement of a 90% discount on registration fees for tech firms is a clear signal of its commitment to fostering innovation. The United States, once a beacon of innovation and technological advancement, is at risk of falling behind as other nations make strategic moves to embrace the future of technology.

Dubai's initiative, known as the Dubai AI and Web3 Campus, is not just about attracting businesses; it's about building a robust tech ecosystem that fosters collaboration, innovation, and growth. While the U.S. grapples with regulatory uncertainties and a fragmented approach to tech adoption, Dubai is laying out the red carpet for global talent.

While the U.S. was instrumental in shaping the first two eras of the web, it's now at risk of missing out on the web3 revolution—a decentralized internet powered by blockchain technology. As Dubai takes proactive steps to be at the forefront of this technological shift, the U.S. must reevaluate its stance and adapt swiftly.

If America wants to maintain its position as a global tech leader, it needs to recognize the potential of web3 and AI and create an environment conducive to innovation and growth. Otherwise, it risks being overshadowed by nations like Dubai, who are already several steps ahead in the game.

Europe has marked a significant milestone in the cryptocurrency space with the launch of its first spot Bitcoin ETF. This ETF, which allows investors to gain direct exposure to Bitcoin without actually holding the cryptocurrency, has been listed on the Euronext Amsterdam exchange. The product, introduced by London-based Jacobi Asset Management, trades under the ticker "BCOIN."

The introduction of a spot Bitcoin ETF in Europe is a notable development, especially when compared to the U.S., where regulators have been hesitant to approve such products. Want an update on US Spot ETFs? We covered it HERE.Spot ETFs differ from futures-based ETFs in that they hold the actual underlying asset, in this case, Bitcoin, rather than contracts that bet on future prices. This means that buying pressure on the ETF can directly influence the price of Bitcoin.

The launch of this ETF in Europe could potentially pave the way for similar products in other regions, offering both retail and institutional investors a more straightforward way to invest in Bitcoin. As the crypto industry continues to mature and gain mainstream acceptance, tools like spot ETFs play a crucial role in bridging the traditional finance world with the realm of digital assets.

Sei Labs has officially launched the mainnet of the Sei Blockchain after a successful testnet phase that saw over 7.5 million unique wallets and more than 400 million transactions. The Sei Blockchain is tailored for smooth trading and efficient digital asset exchanges. Jeff Feng, Sei Labs' co-founder, emphasized that the primary purpose of blockchains is to facilitate the exchange of digital assets. Unlike other blockchains like Solana, Sui, or Aptos, Sei boasts rapid transaction speeds, processing up to 20,000 transactions in under half a second. This speed is attributed to Sei's "single slot finality" consensus mechanism, which achieves consensus in fewer blocks but can face temporary shutdowns if validators disagree on a block.

Initially built using the Cosmos software development kit (SDK), Sei has since undergone a complete overhaul. Feng clarified that Sei is now distinct from Cosmos, but he acknowledged the benefits of starting with Tendermint and the Cosmos SDK. As Sei's mainnet launches, it will feature 30 to 40 validators, with the majority being independent, reducing the risk of a 51% attack. Over 250 teams are set to deploy on the mainnet, with SushiSwap, a decentralized exchange, notably creating new contracts specifically for Sei.

Sei Network's native token, Sei (SEI), achieved a fully diluted valuation of $1.8 billion on its first listing day. However, many in the Sei community are disappointed in the launch.

Sei has long hinted at an airdrop for early supporters. Unfamiliar with Airdrops? Click HERE and scroll to the 3rd headline to learn more about them.The airdrop was confirmed a few days ago. The reason for the disappointment is that the $SEI token launched on Binance before the airdrop. “Sei-lors” from all over are furious - they feel the airdrop should have happened before the Binance listing. Did the Sei team do this so they could dump some of their allocation before retail airdrop receivers could?Two things:

1. Airdrop recipients should be thankful regardless - free money is free money right?

1. Research tokenomics to help you set expectations for your airdrop.

Let’s do some quick math. In this case, Sei has allocated 3% of the total supply to the “first season” airdrop.

Total $SEI supply = 10 billion. 3% of 10 billion is 300 million.

300,000,000 * a current price of $0.22 per SEI = $66,000,000

Sei will be dropping around $66,000,000 to its early users.Sounds great, right?

Remember the stats from Sei’s pre-launch: over 7.5 million unique wallets were made.$66,000,000 / 7,500,000 = $8.8

Assuming an equal airdrop for each wallet (it wont be), you can expect about $8.80 of SEI.

Airdrop tips:

1. Temper your expectations for airdrops.

2. Seek under the radar projects - a larger % of a smaller drop may be better than a smaller % of a big drop.

3. Farm multiple airdrops - that way if you’re disappointed, you have more to look forward to.

That’s all for today. We’ll see you tomorrow.

“Bitcoin will do to banks what email did to the postal industry.”

– Rick Falkvinge, Entrepreneur