Morning Minute is a daily newsletter authored by Tyler Warner. The views and analyses presented are those of the author and do not necessarily represent the opinions of Decrypt.
Good morning!
Key headlines today include:
- Major cryptocurrencies are showing slight declines as ETF inflows diminish; BTC is priced at $65k
- Bitcoin ETFs experienced $225M in net outflows, breaking a streak of inflows; ETH recorded a $26M inflow
- The Clarity Act is likely to miss the August recess deadline, according to Thune
- MoonPay has partnered with Discover to enhance crypto access for millions of cardholders
- Vlad Tenev’s account on X was hacked to promote the “vladhood” meme coin, generating $30M in trading volume
🔐 A consortium of financial and crypto leaders, including BlackRock and Coinbase, has established a $15 million fund aimed at enhancing Bitcoin's defenses against quantum computing threats.
The newly formed Bitcoin Security Consortium, which includes prominent firms such as BlackRock, Coinbase, Strategy, Anchorage Digital, ARK Invest, Block, Blockstream, Fidelity Digital Assets, and Galaxy, has committed a total of $15 million over the next three years to support research and open-source initiatives focused on fortifying Bitcoin against potential quantum threats.
Each member of the consortium will independently choose which developers and researchers to fund, without the group directing Bitcoin development or influencing protocol changes. Mike Schmidt from the nonprofit Brink will volunteer as the coordinator. According to Robert Mitchnick, BlackRock’s head of digital assets, the consortium aims to provide additional funding for the crucial work of Core developers, who play a vital role in Bitcoin's security.
While there are currently no quantum computers capable of compromising Bitcoin's cryptography, approximately 6.9 million BTC (valued at $450 billion) are held in addresses that would be at risk if such technology becomes available. Addressing this vulnerability necessitates coordinated updates across wallets, exchanges, miners, and users, a process that could take years. This urgency is driving the initiation of proposals like BIP 360, aimed at reducing public key exposure and introducing post-quantum signature solutions.
This consortium is well-positioned to support quantum defense efforts, given that BlackRock offers the largest spot Bitcoin ETF, alongside Fidelity and ARK. Strategy is the leading Digital Asset Trading (DAT) firm and manages 843,775 coins. Coinbase handles a significant portion of the institutional supply, and its offerings primarily focus on crypto trading. These firms have substantial financial exposure to Bitcoin, making investments in its long-term security a prudent form of insurance.
The quantum threat to Bitcoin is widely recognized as a significant concern for the near future, with many investors indicating that Bitcoin is not a viable investment until quantum vulnerabilities are addressed. Some are skeptical regarding the ability of core BTC developers to implement necessary changes swiftly enough to mitigate this risk. However, this consortium may have the right resources to tackle the challenge effectively.
🌎 Macro Crypto and Markets
- Major cryptocurrencies are slightly down as interest rate hike expectations affect the market; BTC -1% at $65k; ETH -2% at $1,880; SOL -3% at $75; HYPE -1% at $58.40
- BEAT (+4%), HASH (+4%), and INJ (+3%) were among the top gainers
- Oil remains steady at $90; Gold down 1% at $4,060
- Stock futures show slight gains; DOW +0.4%, Nasdaq +0.1%
- The CLARITY Act is likely to miss its deadline before the summer recess, with Majority Leader Thune expressing a desire to “at least get Clarity started” but acknowledging the August 7 deadline is likely to be missed
- Goldman Sachs CEO David Solomon has voiced support for the CLARITY Act despite pushback from the banking sector regarding its stablecoin yield regulations, differing from peers who have lobbied against these rules
- Brian Armstrong warned that failure to pass the Clarity Act could compel part of Coinbase to relocate offshore
- Coinbase has introduced AI agent payments for corporate clients, enabling businesses to accept payments from autonomous agents
- Uniswap is expanding into tokenized assets with permissioned trading pools that allow regulated real-world assets to trade in restricted environments instead of open markets
Corporate Treasuries & ETFs
- Bitcoin ETFs suffered $225M in net outflows on Thursday, breaking a seven-day inflow streak, while ETH ETFs saw $26M in inflows
- Japan may introduce its first Bitcoin ETF as early as 2028 with revisions to its crypto investment regulations
Meme Coin Tracker
- Meme coins mostly declined; DOGE -4%, SHIB -2%, PEPE -3%, PENGU -3%, TRUMP -3%, BONK -2%
- Vlad Tenev’s X account was hacked to promote a token during the meme coin surge, leading to a $30M volume for the “vladhood” token
- The Robinhood chain was led by PONS (+36%) and TENDIES (+49%); Cashcat increased by 7% to $52M
- Solana-based projects included looong (+43x), Cupsey (+70%) and World (+30%); ANSEM remained stable at $175M
💰 Token, Airdrop & Protocol Tracker
- The Discover Network has partnered with MoonPay to allow US cardholders to purchase thousands of supported tokens directly, including BTC, ETH, BNB, XRP, SOL, TRX, HYPE, and ZEC
- Stripe is reportedly negotiating to acquire OpenRouter for up to $10 billion, roughly eight times its previous valuation; the AI-model marketplace is led by OpenSea co-founder Alex Atallah
- Kaito has announced that it has established a data agreement with X to facilitate various use cases
🚚 What is happening in NFTs?
- NFT market leaders mostly remained stable; Punks steady at 32 ETH, BAYC down 1% at 8.6 ETH, Pudgy down 2% at 4.1 ETH; Hypurr held steady at 185 HYPE
- Kaito Yapybaras (+93%) and TTT (+42%) were the top gainers
- FWA has risen 14% today to $8M, with the protocol experiencing over 30,000 NFT transactions and 1,500 ETH in volume within its first four days