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*Ninepoint Digital Asset Group, is a division of Ninepoint Partners LP.
(7 Day Change as of Apr 6, 2023 1:15PM ET)
Bitcoin Price: $28,083  (0.75%)
DeFi Total-Value-Locked: $50.6B
Ethereum Price: $1,880  3.18%
Crypto Market Cap: $1.18T
Bitcoin Range: $27,228 - $28,826
BITC.U Close: $8.29 (as of Apr 05, 2023)
Ethereum Range: $1,763 - $1,944
BITC.U NAV: $8.31
Bitcoin Dominance: 47.28% (0.67%)
BITC.U Discount: 0.24%

El Salvador President Introduces Bill Eliminating Taxes for Tech Innovation

El Salvador's President Nayib Bukele sent the Law for the Promotion of Innovation and Manufacturing of Technologies bill to Congress on Friday, eliminating income, property, capital gains, and import tariff taxes on technology innovation, computing, and communications hardware manufacturing. As the first country to adopt Bitcoin as a legal tender, the Bitcoin Association of El Salvador continues to try and position the country as an innovation hub.

Activision Blizzard President Daniel Alegre Joins Yuga Labs as CEO

Activision Blizzard’s former President and COO, Daniel Alegre, has officially become Yuga Labs’ CEO, the blockchain technology company behind Bored Ape Yacht Club, CryptoPunks, Otherside, and other prominent non-fungible token (NFT) projects. Yuga Labs developed its impressive portfolio of NFT projects under outgoing CEO Nicole Muniz, who will remain a strategic adviser and partner. Alegre’s appointment was announced in December 2022, with Yuga Labs confident that his gaming expertise will help advance the company’s ambitions for an immersive Web3 world. Having raised $450 million in March 2022 at a $4 billion valuation, Yuga Labs looks to continue providing its passionate community of NFT holders with long-term utility, surprise airdrops, and full NFT intellectual property rights for commercial uses.

Silk Road Bitcoin Auction: US Government to Sell Remaining 41,500 Bitcoin This Year

The United States government has been busy selling off Bitcoin seized from the notorious dark web marketplace Silk Road. A recent court filing revealed that more than 9,800 Bitcoin, worth approximately $215 million, have already been liquidated. However, 41,500 Bitcoin, valued at around $1.2 billion, remain to be sold off in four batches throughout this year. The sale follows the seizure of assets from James Zhong, who pleaded guilty to hacking Silk Road in 2012 and stealing over 50,000 Bitcoin. Members in the crypto community understand these upcoming sales will create elevated selling pressure; Tron Founder Justin Sun tweeted his willingness to purchase the remaining Bitcoin at a 10% discount to "minimize the potential impact on the market."

The Battle for Canada’s Crypto Market Heats Up!

By Alex Tapscott

Canada’s crypto market is in the spotlight this week. The biggest news is the proposed merger of Canada’s three largest crypto exchanges, WonderFi, Coinsquare and Coinsmart, into a single ‘mega-exchange.’ The double whammy of US competitors plus increased regulatory costs makes this merger feel necessary at this moment. It is not totally clear that in a bear market, these businesses as standalone companies are viable.

The combined company will have over 1.65 million registered Canadian users and over $600 million in combined assets under custody. The merger offers a path to profitability and scalability for the companies amid a heightened regulatory environment with increased costs. The regulated trading business will be consolidated under Coinsquare's investment dealer registrant, Coinsquare Capital Markets Ltd., with WonderFi shareholders owning 38%, Coinsquare shareholders owning 43%, and CoinSmart shareholders owning 19% of the combined company.

Back of the envelope, the all-stock merger values the combined company at approximately $125 million (approx. 600 million fully diluted shares x $0.205 per WonderFi share, based on Tuesday, April 4th close). According to the press release, the combined company will have no debt and cash and other assets worth around $50 million. Even if most of those assets are not ‘cash’ the enterprise value is probably sub-$100 million, which feels shockingly low for a company that has an opportunity to consolidate the Canadian market. By contrast, Coinbase, which has a dominant position in the U.S. market, has a $16 billion market cap. By no means are they apples to apples, but if this new company can achieve similar success in the Canadian market, the old “divide by 10 rule” ought to apply for thinking about a future value for this company.

Of course, that assumes that the bigger US players won’t muscle in and grab market share from the Canadian leader.

On that note…

The largest cryptocurrency exchange in the United States, Coinbase, has announced its official international expansion plans in Canada, hiring Lucas Matheson as Country Director, a local tech hub of over 200 engineers, and signing a Pre-Registration Undertaking with Canadian regulators. Coinbase aims to provide Canadians access to its reputable and trusted platform to buy, sell, and trade cryptocurrencies while bringing clarity to the industry by creating a solid crypto regulatory framework. The company believes and is confident that collaboration and constructive dialogue with government officials, policymakers, and the industry are imperative in promoting the widespread understanding and adoption of the crypto asset class within Canadian borders.

We also heard that Kraken, a US-based cryptocurrency exchange, is filing pre-registration paperwork with the Ontario Securities Commission to become a registered Restricted Dealer in Canada and ensure compliance with the nation's tightened rules governing crypto exchanges. The exchange has served Canadian users for just over a decade, with a dedicated Canadian team consisting of more than 250 employees. It wants to maintain compliance to hold and build on that success.

Disrupting the Creator Economy Through Decentralization with pplpleasr of Shibuya

Join Alex Tapscott as he decodes the world of DeFi with special guest pplpleasr, a multidisciplinary artist with a focus on Web3, NFTs, crypto, DAOs, and philanthropy. Listen in as they discuss pplpleasr’s fascinating Web3 origin, Shibuya’s story, the evolving IP model landscape, their recent $6.9 million funding round, next steps for the studio and platform, generative AI and art opportunities, and more!

Pplpleasr’s work with Uniswap has inspired the formation of the prolific investment group PleasrDAO, helped define the aesthetic of the decentralized finance movement, been showcased on the cover of Fortune and Vouge magazines, collaborations with Steve Aoki and Sotheby's. She ranked in the Forbes 30 under 30 last year and ranks in the top 5 of fortunes nifty 50, and has donated more than $1.5 million to charity with her NFT sales. Shibuya is a Web3 content studio and creator platform that leverages blockchain technology for the secure distribution and monetization of content. Raising $6.9 million in a recent funding round, including investment from Andreessen Horowitz, Variant Fund, and celebrities like Kevin Durant and Paris Hilton, Shibuya aims to empower creators to establish deep-rooted connections with their fan by providing an array of quality tools and resources.

Tune in to the 90th DeFi Decoded episode to hear Alex and pplpleasr discuss all things Web3 and Shibuya. How is Web3 changing the game for creators, and what is pplpleasr’s personal experience with its impact? What is Shibuya’s story, and how do NFTs intersect with in its telling? What is the opportunity that angel investors see in Shibuya, and why the celebrity involvement?

Source: glassnode
Chart #1: Bitcoin’s Price Action: Technical Analysis Indicators Point To Bullish Sentiment 
The Bitcoin’s Technical Pricing Models chart by Glassnode highlights four popular technical analysis indicators used by traders: Pi Cycle Indicator (111D-SMA), Mayer Multiple (200D-SMA), Yearly Moving Average (365D-SMA), and the 200 Week Moving Average (200W-SMA). Bitcoin has remained above all four pricing models for two consecutive weeks, indicating a positive market sentiment from a technical analysis standpoint. The Mayer Multiple is often the transitionary point between a bear and bull market; Bitcoin’s price broke through this with upward momentum on January 13th and is up 49% since, showcasing a considerable market shift and how the bottom may be in.
Source: Messari
Chart #2: USDT Rides High on USDC’s 25% Circulating Supply Drop This Past Month
Circle’s USDC stablecoin has experienced a significant decrease in its circulating supply since the company’s initial Silicon Valley Bank partial reserve exposure announcement. The USDC supply has dropped 25%, plummeting from $43.41 billion to $32.54 billion in less than a month. Despite the considerable decline, USDC is still the second-largest stablecoin in the market, outsized only by USDT, the largest stablecoin by market capitalization. USDT benefitted immensely from USDC’s recent decline; USDT expanded by $8 billion in the same timeframe, bringing its total current circulating market capitalization to $80 billion.
Source: The Block
Chart #3: The Crypto King: Bitcoin’s Dominance Continues to Rise, Nears 45%
The Block’s Bitcoin Dominance chart depicts the market capitalization of Bitcoin compared to all other cryptocurrencies. Bitcoin’s dominance has risen from 38.43% at the start of the year to 44.61%, while its price has appreciated 69.27% YTD. This upward trend may suggest a shift in investor sentiment towards more established cryptocurrencies like Bitcoin to take advantage of its considerable YTD price rally and move away from small-cap altcoins with greater risk profiles. It will be essential to keep an eye on this chart; a sharp decline in Bitcoin’s dominance could indicate an altcoin bull run market, with Bitcoin investors realizing profits and funnelling them into other crypto assets.