Seeds of Wisdom RV and Economic Updates Thursday Evening 7-25-24

July 25, 2024 DINARRECAPS8

Good Evening Dinar Recaps,

XRP ETF Expected as Ripple Partner SBI Enters US ETF Market

SBI Holdings plans to enter the US ETF market, sparking speculation of an XRP ETF due to its strong partnership with Ripple and digital asset focus.

Ripple partner SBI Holdings is making headlines as it prepares to enter the ETF market. This move has led to speculation about a potential XRP ETF, given SBI’s strong partnership and association with Ripple, a company that holds the largest share of XRP.

For instance, on July 1, SBI Holdings began minting non-fungible tokens (NFTs) for the upcoming 2025 World Expo in Osaka, Japan. SBI leaders have also consistently endorsed XRP.

Now, a local report reveals that SBI Holdings plans to establish an investment management company with Franklin Templeton, a major US investment firm. This new venture will focus on digital assets, with SBI holding a 51% stake and Franklin Templeton 49%.

The new company from SBI Holdings and Franklin Templeton, expected to form by the end of the year, will focus on crypto assets, reports suggest. Notably, SBI will hold 51% of the company, while Franklin Templeton will hold 49%.

Launching XRP ETF Makes Sense
In June, Ripple President Monica Long had argued that launching an XRP spot ETF in the US market makes sense.

She highlighted that XRP, consistently among the top 10 cryptocurrencies, meets key criteria for such an investment product. However, Nate Geraci, President of The ETF Store, suggested that the market is not ready for an XRP spot ETF. He noted that an XRP futures ETF must precede a spot ETF, emphasizing the need for a regulated trading history.

Industry Opinions on XRP
Recall Yoshitaka Kitao, Chairman and CEO of SBI Holdings, had shared his optimistic views on XRP’s future, expressing confidence that XRP would benefit significantly if Ripple ultimately wins its ongoing legal battle with the US Securities and Exchange Commission (SEC).

On his hand, Crypto expert The Bearable Bull predicts that XRP will hit new all-time highs this cycle. He asserts there’s “0% chance XRP won’t go to new all-time highs.” According to him, XRP’s price has often depended on Bitcoin’s rise. With the approval of a BTC ETF and new record values, he expects XRP ETFs in 2025.

The Bearable Bull identifies several bullish catalysts for XRP. These include its relisting on all exchanges, the launch of AMMs, the Xahau sidechain, Ripple’s stablecoin, and the Metaco custody solution. He also mentions a potential Ripple IPO, increased political focus on crypto, and expected regulatory clarity. Additionally, Ripple’s legal case is likely to conclude this summer.

@ Newshounds News™

Read more: The Crypto Basic

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Gold price collapses to two-week low amid robust US economic data

—Gold prices fall 5% from July 17 peak of $2,483 to $2,364.
—US Q2 GDP beats expectations, strengthening the US Dollar and impacting gold.
—Market certainty grows for a Fed rate cut in September as Treasury yields decline.

Gold price tumbled to a two-week low on Thursday after the US Bureau of Economic Analysis reported that the economy in the United States (US) fared better than expected in the second quarter of 2024. This weighed on the precious metal, which lost over 1.30%, and XAU/USD trades at $2,364 at the time of writing.

Bullion prices hit their highest level on July 17, at $2,483; since then, they have fallen about 5% toward the current spot price. XAY/USD’s fall is mostly attributed to profit-taking as US Treasury yields also dropped while the Greenback remained firm.

US data revealed that the Gross Domestic Product in Q2 was better than expected, crushing the first-quarter numbers. Meanwhile, the number of Americans filing for unemployment benefits dipped compared to the week ending July 30. Durable Goods Orders contracted more than -6%, though excluding aircraft and transport, they recovered from May’s drop.

Despite all that, the US 10-year Treasury note coupon edged lower by more than four basis points (bps) and ended at 4.245% on Thursday. According to the CME FedWatch Tool data, investors seem 100% certain that the Federal Reserve will slash interest rates a quarter of a percentage point at the September meeting.

Daily digest market movers: Gold price on the backfoot as US GDP advances
—US GDP for Q2 2024 jumped from 1.4% to 2.8% QoQ, exceeding forecasts of 2% on its advance reading.
—US Initial Jobless Claims for the week ending July 20 rose by 235K, less than the estimated 238K and lower than the previous week's 245K.
—US Durable Goods Orders plummeted by -6.6% MoM in June, significantly below the estimated 0.3%. However, Core Durable Goods, which excludes aircraft, expanded by 0.5% MoM, up from -0.1% and above the consensus projection of 0.2%.
—The Fed’s preferred measure of inflation, the Core PCE, is expected to dip from 2.6% to 2.5% year-over-year (YoY).

@ Newshounds News™

Read more: FX Street

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Copper: Demand expectations melt down – TDS
7/25/2024

Prices are more likely to overshoot to the downside, notwithstanding the likely overly pessimistic sentiment surrounding demand, TDS senior commodity strategist Daniel Ghali notes.

Demand sentiment may be nearing a local bottom
Our gauge of demand sentiment embedded within the cross-section of commodities prices is now nearing its lowest levels of the year. These levels are now quantitatively inconsistent with recent history, and considering macro vol has been fairly muted, commodity demand sentiment now appears oversold.

This is a massive shift from just a few short months ago when demand sentiment appeared extremely overbought, contributing to the speculative fervor that catalyzed a momentous rally in Copper prices. Today, we now estimate that 80% of discretionary length in the red metal has already been liquidated, and we now see signs that the top traders in Shanghai are notably covering their shorts.

That being said, CTA trend followers still hold a substantial amount of dry-powder to sell and now have only a narrow margin of safety against selling programs. In fact, our simulations of future prices also suggest that a flat tape can now spark large-scale CTA selling activity over the next week. Overall, this suggests that prices are more likely to overshoot to the downside, notwithstanding the likely overly pessimistic sentiment surrounding demand.

@ Newshounds News™

Read more: FX Street

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Setting Sail for Success: TLIP and IOTA’s Role in Maritime Advancements through the EU-Funded MISSION Project

—The EU-funded MISSION project aims to address the maritime industry’s challenges by leveraging IOTA’s TLIP infrastructure, which uses distributed ledger technology for secure and seamless data sharing.

—The MISSION project also aims to integrate TLIP with AI-driven smart contracts thereby enhancing responsiveness to exchanged data.

Maritime transport, which accounts for nearly 80% of the global trade has been facing major challenges with the fragmented IT infrastructure. So far, this sector has been using disparate IT systems used by different intermediaries within the supply chain involving port community systems and fleet performance management systems.

Although these systems can automate data for real-time data sharing, they usually operate in isolation and separately leading to resource-intensive efforts in order to maintain essential information. However, this inefficiency in real-time communication largely disrupts the maritime supply chain as all actors are not in sync to receive the updated information.

In the absence of a comprehensive system for planning and monitoring port operations and sea traffic, most maritime ports operate the ships on a first-come-first-serve basis instead of working in a well-orchestrated and planned scheme. this leads to greater inefficiencies and delays within the maritime industry.

In order to address all these challenges, the EU-funded MISSION project is working on a new communication and logistics platform to optimize planning, orchestrate port operations, and coordinate port traffic. Thus, to solve all the crucial challenges associated with the maritime industry, project MISSION will leverage IOTA’s TLIP infrastructure.

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🚢🌍 IOTA plays a pivotal role in the EU-funded MISSION project! Using its distributed ledger technology, IOTA ensures secure and seamless data sharing within the Trade and Logistics Information Pipeline (TLIP). This enhances port operations by decreasing traffic, costs, and...

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Leveraging IOTA’s TLIP Infrastructure
The IOTA TLIP infrastructure uses distributed ledger technology to facilitate seamless integration with existing systems while using APIs and state-of-the-art data standards, per the CNF report. TLIP’s role would be very crucial in the implementation of the MISSION project, thereby ensuring the security and auditability of shared data even within complex environments.

One of the key advantages of TLIP is inherent interoperability which facilitates a seamless integration of the MISSION platform into the European Blockchain Service Infrastructure (EBSI), as updated by Crypto News Flash. This integration will boost the platform’s data-sharing capabilities significantly.

Along with being crucial for just-in-time port call optimization, TLIP will improve the planning and alignment of port operations with better coordination of vessel arrivals and departures. It addresses the challenges posed by ships at sea with limited bandwidth and unstable connections, making it an essential component of the MISSION project. TLIP revolutionizes data sharing, fosters collaboration, and propels port operations into a new era of innovation.

Moving ahead, project MISSION is planning to integrate TLIP with AI-driven smart contracts thereby enhancing responsiveness to exchanged data while including alarms for non-compliance and delays. This integration of TLIP in the MISSION project highlights IOTA’s commitment to improving global supply chains via the industrial adoption of its technology, as reported by CNF.

Amid the broader market sell-off, the IOTA cryptocurrency is currently trading 7.1% down at $0.1575 with a market cap of $529 million and daily trading volumes shooting by 53%.

@ Newshounds News™

Read more: Crypto News Flash

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Charles Hoskinson Envisions Cardano Surpassing Bitcoin: ADA’s Growth Trajectory and Upcoming Chang Hardfork

—Cardano’s founder has unveiled the plans to topple Bitcoin in the near future.

—He believes in giving developers the tools to create usable tools that can add value.

Cardano (ADA) founder Charles Hoskinson is highly optimistic about the blockchain taking up Bitcoin (BTC) position as the leading digital asset. The founder hinted at the disclosure, ADA’s growth movement, and the upcoming Chag Hardfork upgrade in an interview on Altcoin Daily.

Hoskinson Touts Cardano as a Major Bitcoin Contender
The Cardano founder said his interest in crypto stems from the profound effect it has on the economic, and socio-political systems of the world. Hoskinson highlighted that Cardano has lived up to what Satoshi started with the creation of Bitcoin. According to him, the Cardano ecosystem is built on a growth engine that continuously adds people, absorbing the technology of its competitors.

“At some point, you just outgrow, and then you wake up, and it’s a multi-trillion-dollar ecosystem with trillions of dollars of value moving around every single day,” he added.

Hoskinson claims the key to flipping Bitcoin is to enable various teams within the Cardano community with the tooling necessary to get to the next level. He emphasized that Bitcoin has stalled over the years, the only valuable proposition being its size.

“It’s not some new technology, it’s not some new capability, it’s not the fact that it’s super easy to use for something interesting; it’s big and successful,” Hoskinson stated.

He drew historical comparisons between the rise of more flexible and inventive solutions and the demise of companies like Yahoo, Microsoft, MySpace, and BlackBerry. He also cited how Artificial Intelligence (AI) search engines are becoming a huge threat to the usability of Google.

Challenge With Bitcoin Flexibility
Furthermore, Hoskinson claims Bitcoin’s relevance over the last 10 years is due to the simplicity of its model, but like Gold, Bitcoin cannot grow above a certain floor. Cardano, on the other hand, seeks to provide the foundation for international payment networks, credit, and voting systems, offering a higher utility. ☝️

The Cardano founder says the way to remain relevant is to embrace decentralization, preserve the integrity of systems, create the right incentives for users, and embrace new ideas.

Per blockchain, Hoskinson says Ethereum (ETH) is currently suffering from its inflexibility to innovation, with Layer-2s emerging as a major competitor.

“Yeah, I do believe we can do this, this is why we are so focused on the fundamentals because you can’t stop that once it is going fast enough,” stated Hoskinson.

Update on Cardano’s Chang Hardfork Upgrade
Hoskinson also highlighted the relevance of good governance in guaranteeing the long-term viability of blockchain initiatives. His words coincide with anticipation of the Chang Hardfork, which is scheduled for later this year.

He went into further detail on the pros and cons of on-chain governance, highlighting the need for a system that allows for quick decision-making. Hoskinson noted that the Hardfork will be initiated as soon as 70% of stake operators upgrade to the final version of Node 9.0.

Meanwhile, ADA, the native coin of the Cardano blockchain, is currently trading sideways. At press time, ADA declined by 5.6% in the past day to trade at $0.3955, with the market cap pegged at $14 billion. Nonetheless, Cardano’s Total Value Locked (TVL) recently surged by 38%, as noted in our earlier article.