Morpheus Week!

We have a huge week next week featuring Morpheus core contributor David Johnston, along with Willy from the Nounspace team. Here is whats cooking:

Monday: Deep dive into Morpheus’ MOR20 fair launch platform.

Tuesday: Our very first X Space in collaboration with the Nounspace team, the FIRST MOR20 fair launchooors.

Wednesday: Newsletter deep dive into Morpheus’ new staking feature AND another X Space with the Morpheus team featuring OG contributor David Johnston.

Make sure you set reminders for the two Twitter spaces we’re hosting this week:

• Tuesday 4pm CT: Onchain Outpost <> Nounspace

• Wednesday 6pm CT: Onchain Outpost <> Morpheus

Market Metrics

Total Crypto Market Cap: down 1.1% to $2.46T
Total AI Sector Market Cap: down 2% to $28.8B

Top Movers (7 days):

📈Orbofi AI (OBI): up 21.8% to $0.01329
📈NEURALAI (NEURAL): up 19.1% to $2.97
📈Spectre AI (SPECTRE): up 17.8% to $2.93

Mindshare Check:

The AI sector currently accounts for 22.19% of the total crypto market’s narrative mindshare, up from last week. DeFi has crept up into second place at 12.8%.

Daily News

🟠Mira and Chainbase both closed fundraising rounds, bringing in $9 million and $15 million respectively.

🟠 A huge IT outage has struck the United States and the better part of the western world. Technical infrastructure decentralization is required and inevitable.

🟠 Indian cryptocurrency exchange WazirX was hacked, resulting in a loss of approximately $235 million in various cryptoassets. Onchain analysis by Elliptic suggests the hack was carried out by actors affiliated with North Korea, and the stolen funds are already being laundered through decentralized services.

Highlight of the Week

💎 Grayscale Launches DeAI Fund

Grayscale's unexpected launch of its Decentralized AI Fund marks a pivotal moment for the cryptocurrency and AI sectors. This new fund offers institutional investors exposure to a curated selection of AI-focused cryptocurrencies: NEAR, FIL, RNDR, LPT, and TAO. The move is significant as it signals growing institutional interest in liquid AI assets within the crypto space.

This development is particularly noteworthy because:

1. It shifts focus to liquid markets: Recent AI investment opportunities have primarily been concentrated in private markets, limiting access for retail investors. This fund could rebalance opportunities, allowing traditional retail investors to participate in the AI boom through publicly traded assets.

2. Asset allocation: The selection and weighting of assets in the fund are unconventional, differing from what many industry observers might have predicted. However, Grayscale has indicated that these allocations may be adjusted based on shareholder sentiment, adding a dynamic element to the fund's composition.

3. Management fee: At 2.5%, the fee structure is relatively high compared to many traditional ETFs. This pricing suggests Grayscale's confidence in the fund's potential performance and the specialized nature of its focus.

4. Current scale: While the initial assets under management (AUM) of approximately $535,000 are modest compared to established cryptocurrency ETFs (particularly Bitcoin ETFs), this is not unusual for a newly launched, specialized fund. Industry watchers anticipate growth in AUM as institutional interest in AI-focused crypto assets continues to develop.

This fund's launch could be a harbinger of increased institutional involvement in the intersection potentially leading to greater liquidity and mainstream acceptance of these assets.

Meme of the Day

Chat, does Bitcoin fix the IT outage?