Crypto Morning News: Powell Says Fed Not Allowed to Hold Bitcoin, Kelp DAO Releases Tokenomics
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Crypto Morning News: Powell Says Fed Not Allowed to Hold Bitcoin, Kelp DAO Releases Tokenomics
MicroStrategy may shift toward fixed-income securities in the future to raise funds for purchasing bitcoin.
Navigating Web3 tides with focused insightsAuthor: TechFlow
Yesterday's Market Dynamics
Framework Ventures Co-Founder Releases 2025 Predictions: Gaming and Artificial Intelligence to Become the Largest Verticals
On December 19, the co-founder of Framework Ventures released predictions for 2025, including:
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Inflows into Ethereum and Bitcoin ETFs reach parity, driven by the launch of combined ETFs, averaging $1 billion daily inflows each in the second half of the year
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A sustained altcoin season emerges
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Gaming x Artificial Intelligence becomes the largest vertical by MAUs/DAUs
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Energy DePIN projects led by Glow and Daylight match blue-chip DeFi protocols in fee generation
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Meme coins evolve into distinct categories (ephemeral, AI-driven, factory-produced, high-market-cap), causing further fragmentation
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Total DeFi fees reach $10 billion annually
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Major banks begin tokenization, paving the way to eliminate massive waste in the U.S. financial system
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Non-BTC/ETH crypto ETFs are delayed until 2026
MicroStrategy May Shift Toward Fixed Income Securities to Fund Bitcoin Purchases
According to Bloomberg, Michael Saylor, co-founder and chairman of MicroStrategy, said that once its current fundraising plan is exhausted, the company will focus more on fixed income securities to raise capital for cryptocurrency purchases.
When asked about future funding sources for crypto acquisitions, Saylor noted that so far MicroStrategy has used a mix of issuing new shares and selling convertible bonds. As the company’s stock price rises toward the conversion price of the bonds, bondholders have also received returns.
Kelp DAO Announces KERNEL Tokenomics: 20% of Total Supply Allocated for Airdrops
Ethereum liquid restaking platform Kelp DAO has unveiled its KERNEL tokenomics. Of the total supply, 55% will be allocated to community rewards and airdrops (20% for airdrops, 35% for future community incentives), 5% for ecosystem and partners, 20% for private sale, and 20% for team and advisors.
Additionally, the 20% airdrop allocation will be distributed across three airdrop phases. The first phase (10% of total supply) has a snapshot date of December 31, 2024. The second phase (5% of total supply) runs from January 1, 2025, to April 30, 2025, with an extra 15% loyalty bonus for restaking before January 15, 2025. The remaining 5% airdrop is pending further announcement.
Fed Cuts Rates by 25 Basis Points; Powell Says Fed Is Not Allowed to Hold Bitcoin
On December 19, the Federal Reserve announced its latest interest rate decision, cutting rates by 25 basis points as expected, bringing the federal funds rate target range down to 4.25%-4.5%. The Fed set the upper bound of the rate at 4.50%, in line with expectations and down from the previous 4.75%. According to the Fed statement, recent data shows economic activity has grown steadily, the labor market has eased somewhat, unemployment has risen but remains low, and inflation is near the target but has edged up slightly. The committee will continue reducing its balance sheet, with the decision supported by a majority—Beth Hammack dissented, favoring rates at 4.5%-4.75%.
During the press conference, Powell stated, "We are not allowed to hold bitcoin, nor do we wish to change the law."
U.S. Markets Close: Nasdaq Drops 3.5%, Dow Sets Longest Losing Streak in 50 Years
On December 19, U.S. markets closed Wednesday with the Dow Jones Industrial Average down 2.58%, marking its longest single-day losing streak since 1974 (10 consecutive days of decline). The S&P 500 fell 2.95%, and the Nasdaq dropped 3.6%. Tesla (TSLA.O) declined 8.28%, while Nvidia (NVDA.O) fell 1.14%. The VIX fear index surged as much as 78.0% intraday and stood at 28.32 after market close.
Trump-Backed Crypto Project WLFI Announces Strategic Partnership with Ethena Labs to Integrate sUSDe
World Liberty Financial (WLFI), a DeFi platform backed by the Trump family, announced a long-term strategic partnership with Ethena Labs. As the first initiative, WLFI plans to integrate Ethena’s yield-bearing token sUSDe into its protocol, with a governance proposal to be submitted this week.
Zak Folkman, co-founder of WLFI, said the collaboration with Ethena Labs will help advance the platform’s mission of inclusive finance. WLFI has already purchased $600,000 worth of ENA tokens, demonstrating long-term confidence in the Ethena network. The two parties plan to use sUSDe as WLFI’s first collateral asset within the Aave protocol. Even if the governance vote fails, both companies intend to explore other collaboration opportunities.
Bitwise: RWA Tokenization Will Be Ethereum’s Primary Growth Driver in 2025
Juan Leon, Senior Investment Strategist at Bitwise, published a weekly report stating that Ethereum will experience a strong rebound in 2025, primarily driven by real-world asset (RWA) tokenization. Data shows Ethereum currently holds an 81% dominant share of the tokenized assets market.
The report highlights that the global real-world asset market is valued at approximately $100 trillion, and with institutions like BlackRock and UBS actively entering the space, tokenized fund assets are expected to triple by 2025. Currently, Ethereum’s annual fee revenue totals $2.4 billion, but future fees from real-world assets could exceed $100 billion. Although Ethereum is up 66% year-to-date—underperforming Bitcoin’s 130% and Solana’s 106%—spot ETFs have attracted $2 billion in net inflows over the past 10 days.
Sonic Labs Announces Mainnet Launch
Layer 1 blockchain project Sonic Labs (formerly Fantom) announced the official mainnet launch. The network supports EVM compatibility, enabling 10,000 transactions per second and sub-second finality, along with a native decentralized gateway to Ethereum. FTM holders can now upgrade their tokens to Sonic’s native token S via the upgrade portal at a 1:1 ratio. The bidirectional swap window will remain open for 90 days after mainnet launch, after which only one-way upgrades from FTM to S will be supported.
Grayscale Updates DeFi Fund Holdings: UNI at 55.84%, AAVE at 24.54%
Grayscale’s latest disclosed data shows that as of December 17, the holdings of its DeFi Fund (DEFG)—which holds five tokens—are allocated as follows:
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Leading DEX Uniswap (UNI): 55.84%;
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Lending protocol Aave (AAVE): 24.54%;
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Liquid staking protocol Lido DAO (LDO): 8.43%;
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Decentralized stablecoin protocol Maker (MKR): 7.17%;
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Synthetic assets protocol Synthetix (SNX): 4.02%.
As one of the first pure DeFi investment securities, the fund allows investors to gain exposure without directly purchasing, storing, or safeguarding digital assets. The fund’s share value is calculated based on the reference rates and weights of the underlying digital assets in the DFX Index, minus fund expenses and liabilities. Investors can trade shares through traditional brokerage accounts in the over-the-counter market.
Market Update
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IOSG Founder: How Did Usual Achieve a Comeback Against All Odds?
The IOSG team conducted thorough due diligence on the Usual project and was impressed by the founder’s vision and execution, ultimately deciding to make a major investment.
During fundraising, Usual faced skepticism and rejection from many venture firms, yet IOSG remained committed and successfully co-led the round with like-minded investors.
Post-investment, Usual’s team exceeded IOSG’s expectations in execution, and IOSG has actively helped expand Usual’s community and ecosystem.
How to Position for the Abstract Airdrop Linked to Fat Penguin?
The parent company of Fat Penguin has launched Abstract, a consumer-focused Layer 2 public chain, set to launch its mainnet and conduct an airdrop in January next year.
Abstract aims to become the leading consumer crypto chain by focusing on culture, community, and builder support. It will also improve user onboarding through a unified wallet.
Users can earn Abstract points through various activities, including connecting wallets, completing social tasks, and minting NFTs.
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