Good Morning,

Here's a quick preview of today’s content: An unlucky Hyperliquid trader makes headlines for his eye watering P&L statement, DEX Hyperliquid beats Nasdaq in profit, SEC Chair is expanding Project Crypto, Polygon Labs introduces a new partnership, and so much more

Happy Monday - Let’s dive in

Market Snapshot

Click here to learn more about the Gannon’s portfolios and subscribe to the strategies on Autopilot.*

• Major altcoins like Dogecoin and Solana surged, with BNB hitting a new ATH

• Bitcoin and Ethereum each rose to roughly three-week highs

  • These gains come off the back of price jumps, with both at their highest points this month

• Investors are feeling good about the Fed cutting interest rates next week, which could benefit crypto markets 

  • Bitcoin's hash rate surged to 1.12B TH/s, a new ATH

  • The surge in hash rate has also adjusted BTC difficulty to an ATH of 136.04T

  • Strong BTC miner and corporate accumulation fuel speculation on BTC price surpassing $140k

  • BTC’s market share drops -3.5% in the past month, with indexes tracking it against altcoins entering "Altseason" territory

• Risk assets such as Bitcoin, Gold and Equities remain positioned for long-term gains if easier policy persists

Headline Roundup
^{_{The major headlines driving crypto markets}}

• Coinbase accuses the SEC of destroying a year of former Chair Gary Gensler's text messages (DC)

• Gemini’s shares trade above $40 per share, pushing the Winklevoss-led blockchain firm’s valuation to $4.75B (TB)

• Unknown Hyperliquid trader becomes biggest losing whale with $40M in losses within a month (CT)

• Prediction market platforms Polymarket and Kalshi consider raising additional capital at valuations of $9B and $5B (TB)

• Solana memecoin project streamed on Pump.fun soars 2,000% after gym influencer slaps one of the creators (DC)

• DEX Hyperliquid beats Nasdaq in net income at $1.24B (CS)

• Spot Bitcoin ETFs log $553M in daily inflows (TB)

• Crypto protocols raise $1.9B in August, down 30% from July (CS)

• The Real-World Asset Summit will take place on September 16 and 17 in Brooklyn (TD)

• Tokenized U.S. Treasuries on public blockchains hold $7.42B (CS)

• Ethereum founder Vitalik Buterin calls ‘AI governance’ a “bad idea” (CS)

• Twerk from Home weekly competition allows winner payouts to be received in crypto (DC)

• Ethereum hits 12M daily smart contract calls (CS)

• Public companies acquire 47,718 BTC in August worth $5.2B (CD)

• World Liberty Financial approves plan to use liquidity fees for a buyback-and-burn mechanism (CD)

• Crypto exchange Bitstamp records a 21% rise in crypto trading volume to $14.4B in August (CT)

• The FTX and Alameda estate redeem 192,000 SOL from staking (TB)

• Bitcoin “shark” wallets add 65,000 BTC to their holdings (CT)

• REX-Osprey Solana staking ETF surpasses $200M in cumulative flows (CS)

• Galaxy Digital receives over 2.31M SOL from wallets on Binance, Coinbase and Bybit (TB)

• Polygon Labs announces a partnership with Dubai-based Cypher Capital to expand institutional access to POL across the Middle East (CS)

• Capital Group, a mutual fund, grows a $1B position in Bitcoin-related stocks into more than $6B (CT)

• Chainlink’s data streams integrate with prediction platform Polymarket (DC)

• Native Markets to issue and manage Hyperliquid crypto exchange’s USDH after claiming the USDH ticker (CT)

Market Predictions

• Bettors on Kalshi are predicting if Solana will hit a new ATH this year

• Trade your predictions on a range of events, only on Kalshi

• Sign up with code LIT and get a $20 bonus when you trade $100

Venture Capital

• Rapyd raises $500M in a Series F led by BlackRock, Fidelity, and more (CR)

• Runesol raises $4M in fundraising led by Bitgo Capital, IGC Global, and more (CR)

• Althea Limited, a purpose-built blockchain transforming payments for broadband, utilities, and critical infrastructure, raised $25M from GEM Digital (PULSE)

M&A Announcements

• The Smarter Web Company, the UK’s largest corporate Bitcoin holder, considers acquiring struggling competitors to expand its treasury (CT)

Launches

• Tether announces a U.S.-specific stablecoin designed to comply with new laws (DC)

• Africa launches the Africa Bitcoin Corporation, the country’s first crypto treasury company (CT)

• Ethena Labs launches its synthetic dollar USDe and sUSDe on Layer 1 blockchain Avalanche (TD)

• WisdomTree launches a new tokenized fund which tracks a basket of 35 publicly traded funds (CD)

• Phemex crypto exchange introduces Multi-Assets Mode, which consolidates multiple cryptos for perp futures trading (CD)

Regulation

• Paul Atkins expands on Project Crypto, saying the SEC will deliver clear rules for crypto (CD)

• Industries and Senators clash over crypto market structure legislation (BW)

• The FTC issues orders to AI companies requiring detailed disclosure of safety protocols and monetization strategies (DC)

• Pakistan’s crypto regulator calls on global crypto firms to apply for local licenses to serve Pakistan’s 40M users (TB)

• U.S. Reps say that earlier stablecoin effort should be edited by the pending market structure bill (CD)

• UK groups press the British government to include stablecoins and tokenization in the UK-US Tech Bridge (TB)

Cybersecurity

• Researchers uncover undetectable malware draining crypto browser wallets (DC)

• The U.S. DOJ files a civil forfeiture action to recover over $500k in USDT from an Iranian national (DC)

• A wallet tied to a $300M Coinbase hack bought 3,976 Ether for $18.9M (CT)

• An unidentified crypto investor loses over $3M in a phishing attack after unknowingly authorizing a malicious contract (CS)

• The Shibarium bridge, which connects the Layer 2 network to Ethereum, is  hacked in a flash loan attack that drains $2.4M (TB)

• Top Web3 white hats are earning millions more than traditional cybersecurity roles (CT)

• THORSwap issues a bounty offer following an exploit of a personal user’s wallet valued at $1.2M (TB)

• Yala’s Bitcoin-backed stablecoin YU fails to regain its dollar peg following an “attempted attack” that sends the token plummeting (CT)

Extra Reads

• The IRS has expanded its reach from targeted probes to near real-time blockchain surveillance, reshaping crypto tax compliance - Inside the IRS’s Expanding Surveillance of Crypto Investors

• U.S. ETFs hit $12.19T in AUM with $799B in inflows this year, raising questions over whether the Fed’s influence on markets is fading - Are the Record Flows for Traditional and Crypto ETFs Reducing the Power of the Fed?

Chart of the Day

Ethereum holders with a balance between 10K-100k ETH hits a new ATH.

Meme Dump

Pls send us crypto memes to be featured in the newsletter 🤝

🐦 Follow Us: Visit our X account for daily updates on all things web3, DeFi, & crypto.

💰 Gannon’s Crypto Portfolio: Trade alongside Gannon’s crypto on Autopilot

💵 Litquidity Ventures: Accredited investors & qualified purchasers within the Litquidity community can gain access to alternative investments such as venture, late-stage growth, and private equity through Litquidity Ventures. Interested? Fill out this form.

☎️ Book a call with Lit: Want to pick Litquidity’s brain on business advice, insights, or just chat to say what’s up? Buy his time here.

📧 Launch your own newsletter: Have great content ideas and looking to launch your own publication? We highly recommend Beehiiv to get started.

*DISCLAIMER: Investment advice provided by Autopilot advisers LLC, an SEC registered investment advisor. Past performance does not guarantee future results. Investing carries risks including the risk of the loss of principal. Performance doesn’t include fees. See more here.