Many notable events are on the crypto industry’s schedule this week, including Frax Finance reformulating its stablecoin FRAX into a new asset backed by BUIDL, Sui unlocking 64 million governance tokens. administration, and six Israeli investment firms launch Bitcoin mutual funds.
Web3 SDK platform Empyreal is also preparing to launch a no-code AI launcher. Furthermore, Pendle will be doing an airdrop, Movement’s MOVE will be officially launched, and GammaSwap’s yield tokens are being audited. Overall, it was a busy week for the crypto community kicking off 2025.
Frax Vote for Stablecoin Powered by BUIDL
Frax Finance is vote to use BlackRock’s BUIDL Tokenized Fund as a backup asset for the new stablecoin frxUSD, which will end tomorrow.
“The DeFi Central Bank of Crypto” has been providing stablecoin solutions for years, and now they are planning convert existing FRAX stablecoin to frxUSD. Currently, voters support this proposal.
Securitize has submitted a proposal to integrate BlackRock’s BUIDL Token as a reserve for Frax’s soon-to-be-launched stablecoin frxUSD. By combining institutional-grade assets with DeFi, we are driving the next wave of innovation in stablecoins,” Securitize confirm via social networks.
In October, BlackRock publicly stated that it wanted exchanges to use the BUIDL Token as collateral for derivatives. Although Frax Finance’s new product does not fall into this category, it is not the first stablecoin using BUIDL to launch recently. Earlier in the month, Ethena Labs used BUIDL to back their new USDtb asset.
BlackRock has directed BUIDL to make some major expansions in the crypto space recently. Frax’s vote will close in one day and there is no significant community opposition to the proposal. It is very likely that this plan will be approved.
Sui Unlocked 64 Million Tokens
Popular Layer-1 blockchain network Sui is preparing for a major token unlock this week. On January 1, the protocol will unlock 64 million SUI tokens, in addition to the current circulating supply of 2.92 billion. Even after this large issuance, the majority of Tokens will still be out of circulation.
SUI is a governance token, and the main beneficiaries of this unlock will be early investors and contributors. Specifically, the opened Tokens will be sent to Series A and B participants, the community reserve fund, and the treasury of Mysten Labs.
Bitcoin ETF Stays Away from Israel, Mutual Fund Launches
Six Israeli investment companies are preparing debut Bitcoin-based mutual funds this week. Bitcoin mutual funds were trendy a few years ago when ETFs did not have regulatory approval.
In 2024, however, new crypto mutual funds are mainly for assets that do not have a viable ETF. Although Israeli businesses are making efforts, success is still far away.
“Investment firms have been begging for more than a year to get an ETF approved, and started submitting proposals for bitcoin funds mid-year. Regulators have their own rules. They need to check the details,” an executive from the anonymous investor told local media.
In other words, these plans may come too late to make a significant impact, especially as Bitcoin approaches a bear market.
Furthermore, regardless of Bitcoin’s performance, domestic investment factors have a major influence on these products. For example, Hong Kong’s Bitcoin ETF was hotly anticipated, but its actual issuance was disappointing.
Overall, the timing of this launch is questionable as BTC mutual funds are losing form, thanks to the ETF craze. Since Israel’s latest war began in 2023, foreign investment has declinewith cumulative capital outflows increasing by 63% by October 2024.
This country’s domestic technology industry is also suffering from a decline in capital. With these adverse factors, BTC mutual funds may encounter obstacles.
Empyreal Deploys Code-Free AI Launcher
Empyreal, a web3 infrastructure company, is preparing to launch a launch pad for codeless AI. Simulacrum AI is perform core operations, while Empyreal’s underlying technology will operate the core functions.
Through this no-code platform, users will have the ability to customize these AIs in several ways, including user interactions and custom data sets. These AIs are also capable of launching Tokens and managing their treasuries. The first live test will be performed via Simulacrum, an AI protocol.
Pendle Airdrop, Movement Mainnet, GammaSwap Audit
On December 31, Pendle will snap users have staked the company’s vePENDLE assets, and these users will receive a new airdrop with more Tokens. Pendle’s token value has fallen, despite a booming cryptocurrency market, as one of its biggest backers, Arthur Hayes, sold a large amount.
Movement is preparing for a Mainnet launch in January after having launched beta testing success earlier in the month. The platform’s MOVE token has surged in the crypto market following the event, and developers are banking on the subsequent success of the first Ethereum L2 based on Move.
GammaSwap, an on-chain perpetual options protocol, scheduled audit in today. This audit involves GammaSwap Yield Tokens, which can help users earn 60-80% Yearly Profit for Ethereum.
