Dear Borgerz,
As we bid farewell to the sunny days 😎of August and gear up for the autumnal 🍂breeze, it’s time to reflect on what’s been an exciting month of August in the world of crypto – and of course, here at SwissBorg. So grab a coffee, sit back, and let’s dive into all the fun and frenzy of the past month!
The Cryptosphere: August Adventures 🚀
August was once again quite the rollercoaster, wasn’t it? The cryptosphere saw a mix of ups, downs, and everything in between. Here are a few highlights:
- August started with the Bank of Japan pulling a move we hadn't seen in 30 years… increasing interest rates. This tiny 0.25% hike did put a major kink in the popular reverse carry trade strategy, sending the Yen's value soaring against the USD. We already discussed the other catalysts (geopolitical tensions and risks, US politics and recession fears) in the previous edition.
- In August, central banks around the world decided it was time to change gears. About 50% of countries, including Switzerland, Canada, Sweden, the EU, and the UK, began cutting rates. Now, in a textbook economy, central banks would delicately raise rates to keep inflation in check and lower them to ward off a recession. But let's face it – the global economy isn’t exactly a textbook case right now. It’s still feeling the aftershocks of COVID lockdowns and that generous wave of money printing. The recent flurry of rate cuts signals a quick shift in thinking. Jobs are dwindling, manufacturing’s slowing, and the economy’s feeling the pinch. Time to inject some cash back into the system. But, like any good party, things really kick off when the main guest shows up – and all eyes are on the US Fed. With a rate cut of 0.25% to 0.5% expected on September 18th (and more possibly on the way in November and December), the big question is: Will the Fed's entrance set the tone for what comes next?
- The Banana zone: in August I heard many people talk about the banana zone…what is it exactly? The "Banana Zone" usually kicks in when the business cycle reaches its peak. The expansion phase of the business cycle is fueled by fresh liquidity flowing into the economy. This influx is driven by several factors, including, but not limited to, lower interest rates that encourage borrowing and spending. And as we just mentioned, the stars (or rather, the central bankers) seem to be aligning for a Fed rate cut in September. So, while the markets might be having a rough patch in the short term, the conditions necessary to usher in the Banana Zone are quietly coming together.
- Telegram’s CEO arrested: August also brought us a stark reminder of the vulnerabilities of centralised systems when Telegram’s co-founder and CEO, Pavel Durov, was arrested in France. The charges? Allegedly failing to moderate illegal content on the platform – including serious crimes like drug trafficking, child exploitation, and fraud. If convicted, Pavel could be facing up to 20 years in prison. This is where decentralised systems shine. In a decentralised model, there’s no single point of control – no one person, company, or entity holding all the cards. This makes it much harder for external forces to influence, shut down, or manipulate the system. When control is relinquished, so too is the risk of having all your eggs in one basket.
💚 SwissBorg 💚 Updates: the summer Heat Wave 🔥
Enough about the world – let’s talk SwissBorg! August has been an action-packed month for us too, full of new launches, milestones, and, as always, a few surprises.
- XBorg: Earlier this month, XBorg announced that its XBG token would be launched in a decentralised way on SwissBorg, Raydium, and Uniswap. The leading player identity protocol stated that it’s time for a new meta and that it will do an on-chain fair launch with 100% community-raised token unlocks. After over two years of building, more than $9,000,000 in funding and much anticipation from the Web3 industry, the XBG token launch was finally here.
- Alpha: once again SwissBorg was here to allow you to invest in the juiciest deals the digital world has to offer! Domen, our beloved PM, dropped a very insightful article on how to Maximise Your Alpha Gains: Understanding Vesting and Redemption Periods. If you haven’t read it yet don’t miss it here. And here is the overview of the deals which were offered in August:
- - Privasea: Privasea is a DePIN (Decentralised Physical Infrastructure) network designed to prioritise the privacy and security of data throughout the AI data computation process. To achieve this, it uses an innovative technology called Fully Homomorphic Encryption (FHE), which enables computations to be conducted on encrypted data, producing results that are identical to computations performed on unencrypted data. This ensures that privacy of the data is preserved throughout the entire workflow, including AI model training and evaluation.
- - Solana ID: Solana ID is a digital identity and reputation platform that combines both Web2 and Web3 activities and credentials. To do that, they are leveraging blockchain as well as Zero-Knowledge (ZK) technology to link every identity credential to a public-private key wallet that can be neatly carried around the internet in a private, secure, and scalable manner. In that way, each user can be linked to a reputation score and every source information can be verified using this system and linked to its related user reputation score. An ideal solution for installing trust in trustless systems and fighting against bots, fake accounts, or even deepfakes.
- New tokens added: ZIL: Zilliqa (ZIL) is a pioneering Layer-1 blockchain platform founded in 2017 and headquartered in Singapore, with teams in London and Dubai. Known as the first blockchain to implement sharding for scalability, Zilliqa aims to drive real-world adoption across various segments by addressing the heterogeneous requirements of decentralised applications.
- Educational content:
- - Great article giving a comprehensive macro overview. The title is Where Are We Now? A Dive into the Business, Financial and Crypto Cycle Phases. We have advocated that it made sense to position yourself long on crypto since early 2023. We were early and saw things finally materialising in Q4 of 2023 and Q1 of 2024. There was confirmation of our anticipation and we thought we had it right and that the bull market had started and Bitcoin would go parabolic. We believed the SwissBorg token (BORG) would go to an all-time high (ATH) before summer and that retail would rush back into the space, understanding that it’s not too late to buy and ride the wave this time. Unfortunately, like often in life and especially in markets, things have not unfolded that way and we have been taught a new lesson of humility. Please read the full article here!
- - And of course the BorgPad manifesto. This piece of art will tell you all about the fact that “we stand at the edge of an era where AI will redefine what it means to be human”. Interesting, no? Thrilling you mean!!! And this is only the first part! The next release will be on “Our collective investment into Humanity's optimistic future”. Stay tuned!
Wrapping Up 🎁
August has been nothing short of amazing, and it’s all thanks to you – our incredible Community. Your passion, feedback, and support are what drive us to keep innovating, creating, and challenging the status quo. As the summer comes to a close and we step into September, it feels a bit like “back-to-school” season in the cryptosphere. Markets are gearing up for what promises to be an eventful few months, with September already showing signs of being a volatile period. Central banks across the globe continue to adjust their strategies, and all eyes remain on the US Federal Reserve, as their next moves could shape the direction of the markets. But with volatility comes opportunity. Many in the space are hopeful that we’ll begin to see stronger signals of a global bull run. Whether it’s the banana zone aligning, Breakpoint & Token 2049 or exciting developments across the Web3 landscape, September could very well be the beginning of a new chapter for crypto enthusiasts. So sharpen your pencils, charge up those devices, and stay prepared for what’s ahead. It’s going to be an exciting ride, and we’re thrilled to have you with us on this journey!
Here’s to a bullish September, full of potential and new beginnings 🚀. Until next time, stay informed, stay inspired, and as always, stay BORG!
Proud Founder and CEO of SwissBorg 🇨🇭, always here to serve you 🙏,
To the moon and beyond,
Cyrus Fazel ✍️
🚀💼🌟
Meme of the month:
