Avalanche to Repurchase 1.97M AVAX From Luna Foundation

Avalanche to Repurchase 1.97M AVAX From Luna Foundation

The Avalanche Foundation has reached an agreement to repurchase nearly 2 million AVAX tokens from the bankrupt estate of the Luna Foundation Guard (LFG), pending court approval. The tokens were initially purchased in April 2022 in a $100 million deal to support the now-collapsed Terra ecosystem, and their value has since dropped by 44% to $55 million.

The repurchase will help shield the tokens from a potential liquidation by the bankruptcy trustee. The deal also ensures that LFG will not violate the original agreement’s restrictions on how the tokens can be used. The Avalanche Foundation said the agreement aligns with its goal of protecting the ecosystem from market instability linked to Terra’s collapse. The court is expected to approve the deal soon.

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MicroStrategy’s Saylor Sees $1 Trillion Bitcoin Bank Vision

MicroStrategy’s founder Michael Saylor shared his long-term vision for the company, aiming to transform it into the leading Bitcoin bank. Saylor outlined a strategy of borrowing capital at low rates, reinvesting it into BTC, and creating Bitcoin-backed financial instruments. With over 252,000 BTC currently valued at $15 billion, MicroStrategy holds 1.2% of the supply, making it the largest Bitcoin treasury holder.

Saylor believes that Bitcoin will grow to millions of dollars per coin and that MicroStrategy can scale its strategy to build a trillion-dollar company. His focus is on capital market instruments like equity, convertibles, and fixed income, which would be built on the back of Bitcoin. Saylor also emphasized that borrowing capital for Bitcoin investments carries less risk than traditional lending.

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Australia’s First Spot Ethereum ETF Launches This Week

Monochrome Asset Management is set to launch Australia’s first spot Ethereum ETF, IETH, on Cboe this Monday. Following the success of its Bitcoin ETF launched in June, the company is positioning itself as a leader in Australia’s crypto ETF market. The ETF aims to attract investors with its in-kind subscriptions and redemptions, offering tax efficiencies for long-term holders.

Monochrome’s unique bare trust structure allows investors to transfer Ethereum into the ETF without triggering capital gains taxes, setting it apart from US counterparts. The ETF will track the CME CF Ether-Dollar Reference Rate with a management fee of 0.50%. Available on most Australian platforms, the ETF will use BitGo and Gemini for custody services.

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Sonic Labs' Andre Cronje Critiques Layer 2 Appchains

Andre Cronje, co-founder of Sonic Labs, critiqued layer 2 appchains, claiming they are impractical for developers due to high costs and fragmented liquidity. Cronje revealed that his team has already spent $14 million this year on appchain infrastructure, making it difficult to focus on core applications. He also criticized the reliance on bridges for liquidity, which he argued increases security risks.

Other experts, like Gelato Network founder Hilmar Orth, countered Cronje’s points, noting that rollup-as-a-service providers have made infrastructure more accessible. Orth emphasized that built-in support systems make it easier for developers to create appchains. Polygon Labs' CEO Marc Boiron also expressed optimism, suggesting that better liquidity management solutions could help.

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Data of the Day

Google search volumes for “Bitcoin” dropped to a one-year low in mid-October, while “memecoins” saw significantly higher interest, reaching a score of 77 out of 100. Meme coins have outperformed all other crypto sectors in 2024, showing no signs of slowing down.

According to data from Solana Floor, the Solana network alone saw nearly 500,000 new token creations since September, many of which were meme coins.

This explosion of meme coins has been driven by platforms like Pump.Fun, which offer easy-to-use tools for launching tokens with low fees. As a result, Solana’s meme coins now hold a market cap of over $10 billion and daily trading volumes of $2.3 billion.

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More Breaking News

• British man is suing council for $647 million after they blocked his request to excavate a landfill where he discarded a hard drive containing 8,000 Bitcoin.
• German national, charged in a $150 million crypto fraud case, has gone missing after allegedly tampering with his ankle bracelet while under house arrest.
• Mt. Gox has postponed its repayment deadline to October 31, 2025, temporarily easing concerns about Bitcoin selling pressure on the market.
• Ripple co-founder donated $1 million in XRP to a political action committee supporting Kamala Harris' presidential campaign, the first crypto donation to her.
• Arkham Intelligence to launch a crypto derivatives exchange in November (not be available in the US) and the company will relocate to the Dominican Republic.
• A crypto whale lost $35 million worth of wrapped ETH on the Blast layer 2 network after falling victim to a phishing attack that drained their wallet.
• A proposal to recall $120 million worth of ARB tokens from Arbitrum's Gaming Catalyst Program is gaining attention due to the initiative's failure to meet deadlines.

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