Daily Conquest #163
Deep Dive: What is Canto (CANTO) and why is it pumping?
The best daily source of crypto news, insights and alpha.
Overview
- Canto: Strong fundamentals or all hype?
- Market: BTC testing established support.
- CFTC asking Congress to help prevent the next crypto crisis.
- Doodles 2 launching on the Flow Blockchain!
Good Morning Fam,
The crypto market is soaring, and altcoins like CANTO are leading the pack with impressive performance. But is it all just hype, or is there some real substance behind its climb? That’s what we’re here to find out!
Some tokens are skyrocketing just because people are talking about them, while others are rising based on strong fundamentals. So let’s take a deep dive and see what’s really driving CANTO’s success.
Canto: Decentralization Built Atop Cosmos.
Source: CoinGecko
According to its whitepaper, Canto is a permissionless general-purpose blockchain running the Ethereum Virtual Machine (EVM). It was built to deliver on the promise of DeFi — that through a post-traditional financial movement, new systems will be made accessible, transparent, decentralized, and free.
The team behind Canto has a strong focus on decentralization:
- No token presale.
- No venture capital funding rounds.
- No official foundation.
- No vesting rounds
- Decentralized stablecoin: $NOTE
Canto’s blooming DeFi ecosystem:
Canto embodies strong tokenomics. The creators allotted a small portion (13%) for initial contributors and a long, subtle emissions schedule:
- Utility: Used to pay for gas fees on the Canto blockchain.
- Staking with a 21-day lock: Earns 10% commission.
- Governance of the ecosystem when staked.
Source: Canto.io
Canto currently sits on DeFi Llama’s TVL list with 83.84m locked in the ecosystem, putting it above major competitors Near Protocol (NEAR) 70.11m, Aptos (APT) 21.17m, Cardano (ADA) 59.21m and Hedera (HGLD) 36.25m. Impressive!
Source: DefiLlama
That’s cool but are people actually using the chain?
As far as volume, the Canto blockchain is the top-performing protocol atop Cosmos, with $65.18m of transactions in the past seven days, placing it #10 on Defi Llama’s top volume gainers.
Source: DeFiLlama
Overview
Behind a strong commitment to decentralization, Canto has quickly become one of the most active ecosystems built atop Cosmos SDK. As a result, Canto has all the goods to become a top contender in the L1 race: DeFi, great community, great tokenomics, and decentralization.
Moreover, after a tumultuous year in crypto (2022) partly because of venture capital selloffs, Canto is taking the correct approach to a decentralized community through its permissionless Free Public Infrastructure (FPI).
Stay alert, as Canto presents a tremendous growth opportunity with its modest $125 million market capitalization.
Market update 🌍
BTC/USDT 4H
BTC experienced another flat day in what’s been a relatively quiet week. However, volume remains slightly elevated on the daily charts as BTC continues to hover above the $22,500 support level (green). Watch for a candle closure below the aforementioned support, which could send BTC to $20,700. BTC completed the daily candle down -0.21% to $23,009.
High-resolution chart.
ETH/BTC 1W
Despite BTC’s recent performance, the weekly ETH/BTC chart looks bullish for the long term. Price action has created an ascending triangle pattern, which, if punctured through the topside, could send ETH hurling into price discovery mode against BTC. The setup could be lining up nicely with Ethereum’s Shanghai upgrade scheduled for March 2023.
High-resolution chart.
Newswatch 📰
CFTC urges Congress to help prevent the next crypto crisis. The Commissioner of the Commodity Futures Trading Commission (CFTC) wants Congress to change laws to give the agency more power to investigate any company — domestic or foreign — that plans to buy at least 10% of a CFTC-registered market participant. This is in response to the example of LedgerX, a CFTC-regulated entity before it was acquired by West Realm Shires (FTX US) in 2021 and is now facing bankruptcy proceedings of FTX. The commissioner also suggested that the CFTC should start a process for proposed acquisitions to provide the agency with more information about the financial health, corporate governance, and risk management of any business that wants to invest in a CFTC-regulated entity.
Aave clears bad debt left by Mange exploiter. Aave has executed Aave Improvement Protocol (AIP) 144, which seeks to remove the bad debt of 2.7 million Curve DAO Tokens (CRV) on the Ethereum v2 liquidity pool. The bad debt resulted from an exploit orchestrated by Avraham Eisenberg in November 2022. Eisenberg is also responsible for exploiting Mango Markets for $117 million in October 2022.
South Korean prosecutors look to arrest Bithumb’s Owner. Bithumb owner Kang Jong-Hyun and two executives face charges of embezzlement, fraud, and breach of trust by the Seoul Southern District Prosecutor’s Office. At the same time, the National Tax Service investigates possible tax evasion.
News tidbits:
- Sen. Ted Cruz (R-Texas) wants Capitol Hill vendors to accept crypto.
- ParaSwap’s PSP 2.0 is live.
- Payments giant Stripe eyeing public offering.
- Tron’s season 4 2023 hackathon.
- Mango Markets to relaunch project.
NFT & metaverse update 🐵
- Pussy Riot teams up with street artist Shepard Fairey for the NFT project Putin’s Ashes to help support Ukraine.
- Amazon is planning an NFT initiative for spring 2023.
- Doodles 2 NFT project to launch on the Flow blockchain.
My five cents…
Wow, the crypto market is on fire! With steady gains, minimal hiccups, and funding rounds (Injective, Fantom) back in the game, it’s a great time to be in the industry. Plus, various protocols are adjusting for the future by altering token emissions and outdated tokenomics (dYdX, Sushiswap). But let’s not get too ahead of ourselves; the market is always unpredictable and can change in a flash. So, keep your eyes peeled and fingers crossed that the good times keep rolling, but always be ready for any potential twists and turns. It’s a wild ride, but it’s always worth it!
Enjoy your weekend, and see you on Monday!
Gabriel
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