Tether Continues Winning 🏆

GM. This is Degen Scoop. It’s Wednesday and officially November, here is what has happened since the conclusion of spooky szn:

• Tether Continues Winning 🏆

• Unibot Experiences $600K Exploit 💸

• The Bad of A Bitcoin ETF 👎

• Whale Moves 🐋

• Threads You CAN’T Miss 🧵

Tether’s Q3 Report Shows Firm Resilience, Poised For Next Bull Market

Tether, the company behind the largest stablecoin USDT, shows in their latest attestation report for the third quarter that cash and cash equivalents now constitute the highest percentage ever of its total reserves, reaching 85.7%. The majority of these reserves are in U.S. T-Bills, totaling $72.6 billion in both direct and indirect exposure.

The rise of interest rates have allowed Tether to flourish in its business model and continue their dominance in the crypto space. Paolo Ardoino, CEO of Tether, emphasized the commitment to liquidity and stability in the stablecoin ecosystem. Apart from cash and equivalents, Tether holds $1.7B in bitcoin and gold valued at $3.1B.

The report also indicates excess reserves of $3.2B, with total Tether tokens outstanding at $83.2B. Tether's market dominance sits at 68.4% of the total stablecoin supply at $91.1 billion as of October 30. It’s clear that crypto’s top stablecoin is in a safe space thanks to the interest rate environment and is more than ready for the coming bull market.

Unibot Sees $600K of User Funds Get Exploited From Hack

Unibot, a Telegram trading bot, has fallen victim to a "token approval exploit," a vulnerability in smart contract permissions that allows unauthorized access or movement of user tokens beyond intended limits. Needless to say, many users lost funds due to this.

The project assured users that their keys and wallets are safe, and all funds affected by the exploit would be compensated. Initial estimates suggested around $640K worth of funds were impacted. The token ($UNIBOT) price fell from $57.56 to $32.94 after the news broke but has since recovered about $45.

The exploiters utilized Tornado Cash to conceal their tracks after executing the exploit. These incidents serve as reminders of the challenges as crypto progresses into mainstream adoption. The story is developing, but it does appear that all affected users will be made whole by Unibot.

The Acceptance of A Bitcoin ETF Will Contend With The Original Bitcoin Ethos

As anticipation mounts for the approval of a Bitcoin ETF, conflicting opinions emerge about its implications for the crypto industry. Analysts from CryptoQuant suggest that the green light for a Bitcoin ETF could result in a flood of institutional capital into the space, triggering a substantial surge in Bitcoin's price. This is absolutely expected, but there are further implications.

Others contend that the market has already factored in this development, AKA “priced in” which reduces the chance of positive short term price action. We at Degen Scoop wholeheartedly disagree with these views. The larger concern comes from privacy-oriented Bitcoin enthusiasts who believe that a Bitcoin ETF might undermine the fundamental principles of Bitcoin.

The concerns center around the potential for increased centralization and government scrutiny, all of which could compromise the original ethos of Bitcoin. This is not wrong and is the tradeoff when an ETF gets accepted. For those seeking decentralization, you can always use cold storage. The debate reflects the ongoing tension between mainstream adoption and the preservation of the foundational principles.

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Conclusion

Touch grass, hit the gym, and don’t forget about what’s really important outside of magical internet coins.

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DISCLAIMER: This newsletter does not constitute financial advice. This is strictly educational and should not be used to make any financial decisions. Be responsible and do proper due diligence before aping.