The Dypto Times - Are Crypto Treasury Companies the New Meme Stonks?

Welcome to September. The month so many crypto holders hate with a fiery passion. Why? In crypto, it’s known as Red September. It’s called “Red” because that’s the color of the candles you’ll be seeing quite a bit this month.

But that’s ok. Because it means Uptober is right around the corner? Despite September woes being on everyone’s mind, lots of interesting things happened in crypto this week. Let’s get after it.

From the Dypto Crypto Newsroom

Is Uniswap Going “Legit” With DUNI?

TLDR

• Uniswap has a new governance proposal up for a vote.

• It would create a Wyoming-based legal entity called DUNI to handle offchain business affairs.

• Many outlets aren’t giving this the press it deserves. It’s a much bigger deal than many people realize. Keep reading to find out why.

The crypto world loves its rebels and rule-breakers, but even the most decentralized protocols sometimes need to play nice with the traditional legal system. That’s exactly what’s happening with Uniswap right now — and it’s a bigger deal than you might think.

The Uniswap community is currently voting on a proposal that could reshape how decentralized finance (DeFi) protocols operate in the real world. They want to create a new legal entity called “DUNI” (Decentralized Unincorporated Nonprofit Association) in Wyoming. 

Why is this happening?

Here’s the thing: Uniswap has been operating in a legal gray area since its inception. Most DeFi projects do. While that’s worked fine for onchain activities, it creates headaches when the protocol needs to do basic offchain stuff like signing contracts, hiring people, or dealing with taxes. 

Uniswap’s move toward legal recognition represents a broader trend in the DeFi space. Crypto, as a whole, is maturing. And these projects are wanting the prestige and protections that come with that maturity. They’re now handling billions of dollars in transactions, and the regulatory pressure to “legitimize” operations continues to grow.

Currently, if you participate in Uniswap governance by voting on proposals, you could potentially be held personally liable for the collective decisions made by the protocol. That’s a scary thought, especially if governance votes lead to regulatory issues or legal challenges.

DUNI would create what lawyers call “limited liability protections” for governance participants. Essentially, it puts a legal shield between individual token holders and any potential legal or tax liabilities that might arise from collective governance actions.

Read the full article at Dypto Crypto

Red September Is Here. But What Is It?

TLDR

• Red September is upon us!

• Historically, financial markets have been red every September since the 20s.

• However, as time has gone on, the phenomenon has become more psychological than anything else.

September has arrived, and if you’re new to crypto, you might be wondering why everyone’s suddenly talking about “Red September” like it’s some kind of financial boogeyman. 

Red September, also known as “The September Effect“, is a pattern that’s been haunting financial markets for nearly a century. 

It’s not just crypto either — the S&P 500 has averaged negative returns in September since 1928, making it the only consistently negative month for the index. But Bitcoin? It’s even worse, falling an average of 3.77% each September since 2013.

Dun. Dunnnn. Duuuunnnnnnn! 

Don’t freak out. Don’t panic sell. Here’s why everything is ok.

Not everyone buys into the Red September narrative, though. Some experts believe Bitcoin’s fundamentals are stronger than ever and should help it overcome historical patterns.

Increased institutional adoption through ETFs and corporate treasuries are factors that have added stability to the market.  There’s also data supporting this view — Bitcoin’s September losses have moderated from an average of negative 6% in the 2010s to negative 2.55% over the past five years. In fact, Bitcoin has posted gains in September for the last two years.

Source

Read the full article at Dypto Crypto

PayPal’s Pay With Crypto Makes Crypto Payments a Breeze

TLDR

• PayPal is bringing a new use case to crypto.

• Pay with Crypto allows users to pay with crypto while the business receives their currency of choice.

• Users can also hold PYUSD in their wallet and earn interest (via a Coinbase partnership).

PayPal dropped some seriously exciting news that’s about to change how we think about crypto payments at the end of July. And yes, we know we’re a bit late to this party. But that’s ok. 

The fintech giant has launched “Pay with Crypto“, a new feature that’s adding digital assets to PayPal’s already user-friendly app. It’s also slashing transaction fees by up to 90%. 

How do you use it?

Think of Pay with Crypto as a universal translator for digital money. It connects merchants to over 100 different cryptocurrencies and popular wallets like Coinbase and MetaMask, then instantly converts your crypto into stablecoins or regular old-fashioned dollars (fiat currency, if we’re being fancy).

The magic happens behind the scenes. A customer in Guatemala can buy something from a shop in Oklahoma City using Bitcoin, Ethereum, or any of the other 100+ supported cryptocurrencies. The merchant receives payment in whatever form they prefer, and everyone’s happy.

To use Pay with Crypto as a customer, you’ll need:

• A supported crypto wallet (like Coinbase or MetaMask)

• Some cryptocurrency in that wallet

• A merchant that accepts PayPal’s crypto payments

The process is designed to be as simple as any other online payment. Select crypto as your payment method, choose your wallet, confirm the transaction, and you’re done — all through the PayPal app.

Read the full article at Dypto Crypto

Question of the Week

From an X DM - “I lost money on the WLFI dump. What did I do wrong?”

Meme of the Week

Source

Deep Dive - Are Crypto Treasury Companies the New Meme Coin?

Crypto treasury companies are having their moment. And we’re happy for them. These publicly traded businesses are pivoting from their original operations to hold major cryptocurrencies like Bitcoin, Dogecoin, or BNB as their primary assets. However, before you jump on this bandwagon as an investor, let’s discuss why these companies might be more smoke than fire.

Recent market movements tell a compelling story. When CleanCore Solutions — a Nebraska-based cleaning equipment manufacturer — announced its $175 million Dogecoin treasury strategy, investors weren’t exactly thrilled. The stock plummeted over 60% in a single day. Meanwhile, Windtree Therapeutics got kicked off the Nasdaq entirely after announcing its BNB treasury plans.

Many of the companies jumping into crypto treasuries aren’t tech innovators or financial pioneers. They’re struggling businesses from completely unrelated industries looking for a lifeline.

CleanCore makes cleaning equipment. Windtree was a biotech company. Bit Origin used to produce pork in China before becoming a Bitcoin miner. These aren’t exactly the crypto-native companies you’d expect to lead a financial revolution.

When a cleaning equipment company or biotech firm suddenly becomes a cryptocurrency treasury company, that’s not strategic evolution — that’s panic. Legitimate cryptocurrency strategies typically originate from companies with existing financial or technological expertise.

Strategy – Software

SharpLink – Chaired by the Ethereum co-founder

Windtree Therapeutics – Random dudes

See the difference?

Read the full article at Dypto Crypto

Question of the Week Answer

You did not do anything wrong, per se. The tokens were unlocked, and other investors dumped on you before you could dump on them. This is how DeFi works sometimes, especially with hyped-up projects that offer no real utility. Insiders take profits, while retail users with locked tokens lose a ton of value.

If you don’t want to make the same mistake in the future, ask yourself why you were drawn to this project. If it was to get in early, get tokens unlocked, and take quick profits, then you weren’t investing. You were gambling. And when you gamble, there is at least one loser for every winner. Sometimes you’ll win. But you’ll lose way more often.

This project isn’t doing anything new or groundbreaking. They’re rehashing the same playbook that DeFi projects did back in the summer of 2021. It didn’t work then, and it won’t work now. It’s only a matter of time before the project completely fails. They’re bringing nothing to the table that isn’t being done much better by other protocols. 

Closing Shenanigans

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