Hey there Hodl Heroes!

You’re reading the Hodl Report, where our crypto news and insights are served hot and spicy, just like your favorite meme coin! 🌶️🪙

Here’s what we have for you this week:

• Degen betting for everything 🤑

• Sizzling stories from the week 📰

• FTX scandal closure 💸

• Crypto comedy 🤣

People would have you believe that this crypto cycle is over, but we firmly believe it's only just getting started (remember our rant from last week? 😉). Past cycles had their defining narratives like ICOs, DeFi, NFTs… and if this cycle were to now end early, it seems like meme coins might be the headline narrative.

If that’s the case, what a buzzkill! Imagine a cycle defined by a bunch of dog-themed coins. Woof, what a disappointment. 🐶😒

But don’t lose hope just yet! Prediction markets like Polymarket are popping up and bringing some fresh energy. Imagine betting on anything, from politics to sports to the bizarre, all on a decentralized platform. Although currently, US politics is the hot favorite:

• The top market at $248 million is a bet on the 2024 presidential election winner (Trump at 61% – no surprise there, he's the meme coin of politics)

• $106 million on the 2024 Democratic nominee (a nail-biter between Biden at 43% and Harris at 41% – talk about sibling rivalry)

• And much further down the list (with a category that isn’t politics) is the winner of the Euro Cup, with $4.6 million in bets (Spain 60% favored to beat England 40% – sorry, Brits!)

While betting on politics is currently where all the action is right now, it’s comforting to know there’s a decentralized playground where us degens can put our money where our mouths are. Whether it’s the more traditional politics or sports bets or something a little more fun like who will be the next James Bond actor 🕴️or if the US will confirm aliens exist 👽, we’ve got a betting market for that!

So, let’s not let the meme coins define us. This cycle has just begun, and there’s plenty of wild, wacky, and wonderful stuff ahead. Place your bets, folks – the crypto circus is in town! 🎪💸

1. Trump to speak at upcoming Bitcoin Conference: Former president Donald Trump is confirmed to speak at the upcoming Bitcoin Conference in Nashville, Tennessee from July 25-27. It’s fitting considering the pro crypto stance he has recently taken. Another presidential candidate (RFK) is also scheduled to speak.

2. Biden’s veto on banks able to custody crypto holds up: The House voted to overrule Biden’s veto of SAB 121 but didn’t get the needed 2/3 vote. As a result, banks still can’t custody crypto for clients, so crypto holders must use alternative custodians or self-custody. A step in the wrong direction for adoption.

3. Interest rate cut odds up on Polymarket: The Consumer Price Index (CPI), that measures inflation, came in lower than expected this week. Interest rate cuts are expected once inflation rates get down to acceptable levels. Rate cuts lead to more liquidity and more interest in riskier investments, which help to push crypto prices up.

4. Mobile shooter game built on Solana sees success: For The Win (FTW), a team-based shooter, is currently released as an Alpha version in South America and has already attracted over 100,000 downloads within its first month. Being built on the Solana blockchain will allow players to receive monetary rewards (in crypto) for their in-game performance.

5. Crypto thefts surged in H1 2024: More than double the amount from the entire 2023 (but lower than 2022). The majority came from smart contract exploits and private key compromises. Stay safe out there!

FTX Saga Wrapping Up

Positive News for the Markets?

FTX, once a shining star in the crypto galaxy, crashed and burned spectacularly in late 2022. 📉🔥 Founded by Sam Bankman-Fried (SBF), the Bahamian crypto exchange was living the high life until it was revealed that its finances were shakier than a Jenga tower in an earthquake.

FTX’s downfall began when a report showed that its sister company, Alameda Research, was propped up by FTX’s own FTT tokens. Binance’s CEO, CZ, decided to sell off their FTT holdings, triggering a panic that led to a massive bank run. Customers rushed to withdraw $6 billion in a day, but FTX didn't have the funds. The company quickly filed for bankruptcy leaving customers with crypto assets frozen in the exchange and some holding a bag of worthless FTT tokens. 🤬💼

Almost 2 years after the bankruptcy filing, creditors are finally going to see the saga come to an end. It could even be a happy ending as creditors are set to be paid back in cash based on 2022 prices thanks to FTX’s assets being liquidated.

With around $16 billion due to be returned, August 16th is the deadline for creditors to vote on the repayment plan. October 7th is the date that a judge will officially approve the plan and if all goes well, payouts could start as early as Q4 2024.

The big question (which I think we all know the answer to) is whether this cash will flow back into the crypto market? 🚀