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I’m used to random crashes in Crypto.
Tesla sold their bitcoin. China bans Bitcoin for the 10th time. I will say that Google creating a quantum computer chip and causing a panic wasn’t on my bingo card.
There WILL be plenty of dips in the bull market.
You can’t predict – you can only prepare.
Here’s what we got today:
- Why did crypto crash? What to know about the quantum threat.
- AI Swarms narrative. And some projects on my radar.
- Around the web. Superseed is running a token sale, Dinero launched $zkETH, Movement started its airdrop, and more.
Today’s email is brought to you by Kernel — liquid restaking for BNB
Here’s your Edge 🗡️!
Market
The Quantum Threat to Crypto.
This week, a Google announcement tanked crypto prices across the board.
- BTC went down to $94.5k (3.5%)
- ETH went down to $3.5k (7.9%)
- SOL is down to $205 (8.4%)
What happened? Google introduced its latest innovation: the Willow quantum computing chip, an innovation that solved important challenges in quantum computing.
What is Willow? It is Google’s latest quantum processor, equivalent to the “CPU” of our computers. They’re the “brains” of quantum computers.
Quantum computers are computers that use the weird rules of quantum physics to process information. They’ll be much more powerful than the current super-computers.
For example, Willow completed in five minutes what would take a classical computer longer than the age of the universe to finish.
Quantum computers have a lot of benefits.
- Climate predictions. Make better weather and climate change predictions.
- Drug discovery: They can simulate complex molecules to help find new medicines.
- Optimizing systems: From traffic patterns to financial strategies, quantum computers can find the best solutions in record time.
But there’s a dark side to the story.
Why is it a problem? Blockchains use cryptography to secure assets
(Examples include public-key cryptography and various hash functions.)
The problem? Quantum computers could break blockchain encryptions easily. They’ll be able to derive your private key from your public address and control your assets.
$BTC, $ETH, $SOL, $TIA, are all vulnerable to attack from computers.
And it’s not just crypto at risk: banking, e-commerce, government communications, and most online data systems would also be at risk.
Don’t panic yet. Quantum computers aren’t ready to crack blockchains today, but they’re moving faster than expected.
In 2023, experts said it’ll take 15-20 years. But now people are expecting it much sooner.
What’s the solution? Well… blockchains will have to upgrade their cryptography to be quantum-resistant. Researchers are working hard on this.
I believe that major blockchains will be quantum-resistant by 2030.
In conclusion, yesterday’s crypto crash can be seen as markets repricing crypto to include the quantum threat. In 2-3 weeks, it’ll be just another FUD that no one will remember.
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Narrative
AI Swarms: The Next Phase of AI Agents
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The key to crypto investing is to enter narratives before they explode.
I talked about AI Agents here before they became hot on X. Today, I’ll cover the next phase of the Agent narrative before everyone on X starts yapping about it: AI Swarms.
What are AI Swarms? AI agents are software programs that can perform tasks autonomously.
They are a big deal cuz these agents can make decisions independently, and learn from interactions. In the digital world, they’re almost like real humans.
Now, imagine a society of AI Agents working together. That’s an AI Swarm: a collection of agents interacting and collaborating.
Can you imagine a company run by a swarm of AI Agents? A finance agent will do the accounting. A marketing agent to attract customers. A CEO agent to manage everyone. And so on.
Well… You might think it’s far-fetched. But that’s the kind of hopium AI Swarm narrative is going to sell.
In my radar, there are a couple of projects that are building AI Swarms.
#1. G.A.M.E from Virtuals. It is a framework for creating AI Agents that can interact/coordinate with other AI Agents.
- The partnership between SEKOIA (an investment agent) and SERAPH (a verification agent) seems to be powered by G.A.M.E.
- Virtuals have already unleashed an AI Swarm in a game: Project Westworld. In the last newsletter, we talked about it in detail.
#2. FXN is aiming to build a unified economy for AI agents.
FXN Protocol will enable AI Agents to securely share and monetize digital resources. For example, your Influencer Agent will be able to purchase text generation capabilities from another Agent on FXN.
Notably, it can connect to AI Agents from all frameworks: Virtual agents, ai16z agents, or any other upcoming agent types.
#3. Universal Basic Compute is similar to FXN. UBC focuses on creating markets for AI Agents to share resources. It attracted attention due to the products their swarms built.
- AI agents wrote a novel together.
- There’s an AI band that creates video songs.
- A multi-player game where humans and AI Agents create an evolving world.
#4. ARC Agents is focused on integrating AI Agents into games.
They use crowdsourced human gameplay data for training superintelligent gaming agents. These agents can then be deployed in many avenues like esports competitions.
These AI Agents are swarms that add value to stakeholders of various games.
#5. Eliza from ai16z is the tech powering the majority of Twitter text-based AI Agents. But they seem to have the ambition to create tools for coordinating those agents as well.
The AI Swarm narrative is just getting started. You should be looking for an interesting combination of agents and where value is flowing.
🚀 DeFi Catalysts
Superseed, an Ethereum L2 that will pay user debts, is conducting it’s token sale at a fully diluted valuation (FDV) of $100 million.
SushiSwap has released its 2025 roadmap. It includes franchising the Sushi brand and product stack into new ecosystems like Solana.
Arbitrum announced Trailblazer, a $1M grant program to support the AI Agent ecosystem on Arbitrum.
Farcaster is about to launch its own chain called Snapchain. Rather than charging fees for each transaction, it’ll charge users annually.
EigenLayer is looking to upgrade its restaking rewards system by January. It should bring greater flexibility, efficiency, and customization to rewards.
Spark, a subDAO in Sky Ecosystem (previously Maker), has implemented new savings and borrowing rates of ~12.5%.
Solayer has released its AVS reward system for BGSOL. sSOL holders who delegated to Bitget will receive up to 25% APY on the first $1,000 restaked.
Pendle has added yield trading market for $scrvUSD, the yield bearing stablecoin from Curve Finance.
SushiSwap has expanded to Tron, which is home to over 276 million users and has the most stablecoin volume.
🪂 Airdrop Alpha
Movement, an Ethereum L2, has started its token airdrop. Eligible users can now claim and receive $MOVE.
Magic Eden launched its token $ME. Eligible users can now claim their airdrop until 1st February 2025.
Seraphnet, the decentralized base layer for training AI Agents, has postponed its launch for 2 weeks. They’ll vest tokens to $DEAI stakers/community as well.
Syrup Finance will allow participants of seasons 1, 2, & 3 of its points program to claim parts of the $SYRUP allocation from December 18th.
Fuel Network, an Ethereum L2, introduced $FUEL. 20% of FUEL’s total initial supply will be given to the community. They might conduct token sale on platforms like Legion as well.
🚀 New Launches
Dinero (previously Redacted) launched $zkETH on zkSync. It aims to be the go-to ETH LST on zkSync Era and Elastic Chain.
Moonwell introduced a crypto debit card: Moonwell Card. You can even borrow $USDC against crypto assets and spend it anywhere VISA is accepted.
Nexus, which claims to be the building block of verifiable internet, has launched its testnet. You’ll get Nexus points for contributing resources.
🐦⬛ X Hits
- Analysis of 50+ memecoin strategies.
- What are devs building on top of Uniswap v4.
- Delphi Digital’s report on crypto markets in 2025.
- The tech-stack of crypto x AI.
- Top farms for yield.
