Welcome to this week’s Bestla VC market recap, where we distill the latest developments in the crypto and blockchain sectors, spotlighting news of interest to venture capitalists and projects alike.

Top Stories

Space and Time Labs Secures $20 Million in Series A Funding
Microsoft-backed Space and Time Labs has successfully raised an additional $20 million in its Series A round, bringing its total funding to $50 million. Led by Framework Ventures, Lightspeed Faction, Arrington Capital, and Hivemind Capital, this funding aims to enhance the startup’s AI and blockchain integration capabilities. The investment will accelerate the development of verifiable large language models (LLMs) and support both engineering and community growth—an important signal for VCs tracking AI/blockchain convergence.

Aave Labs Proposes BlackRock Integration
In a significant move, Aave Labs has proposed integrating BlackRock’s BUIDL token into its GHO stablecoin system through the GHO Stability Module (GSM). This enhancement is designed to improve capital efficiency and support fixed-ratio swaps between USDC and GHO. With the proposal currently undergoing a community temperature check, it highlights Aave’s strategy to align with institutional-grade assets—key information for projects considering similar integrations.

MakerDAO Rebrands to Sky, Introduces New Tokens
MakerDAO, as part of its “Endgame” plan, has rebranded to Sky and is set to launch new upgradeable tokens—Sky Dollar (USDS) and SKY governance tokens—on September 18. This rebranding includes a 1:1 upgrade from DAI to USDS and a 1:24,000 conversion from MKR to SKY. Sky will also distribute annual rewards and offer options for future decentralized project participation, underscoring the growing trend of governance token evolution.

Nasdaq Seeks SEC Approval for Bitcoin Index Options
In collaboration with CF Benchmarks, Nasdaq has filed with the SEC to list and trade Nasdaq Bitcoin Index Options (XBTX). If approved, these will be the first cryptocurrency derivatives cleared by the U.S. Options Clearing Corporation (OCC). Featuring European-style exercise and cash settlement, this development is a notable step towards institutional adoption of crypto derivatives—relevant for VCs eyeing opportunities in financial products innovation.

Market Movements

• Bitcoin: Trading at $57,874, down 2.57% in the last 24 hours.
• Ethereum: Valued at $2,455.21, experiencing a 4.83% decline.
• BNB: Priced at $517.96, with a 1.07% drop.
• Solana: Reduced to $131.96, falling 2.08%.
• XRP: Slightly up by 0.554%, trading at $0.597.

In the Spotlight

OpenSea Receives Wells Notice from SEC
NFT marketplace OpenSea has been issued a Wells Notice by the SEC, indicating potential enforcement action regarding the classification of NFTs as securities. OpenSea plans to contest the allegations and has committed $5 million to support NFT creators facing similar legal challenges. This is a crucial development for projects operating in the NFT space, as regulatory clarity—or lack thereof—could significantly impact future valuations and legal strategies.

TON Blockchain Experiences Six-Hour Outage
The TON blockchain experienced a six-hour outage due to an abnormal load triggered by a memecoin airdrop. The disruption affected exchanges like Binance and Bybit, which temporarily suspended deposits and withdrawals. As blockchain infrastructure continues to face scalability challenges, this incident serves as a reminder for VCs to evaluate the robustness of the platforms they are investing in.

Sony Launches Soneium Layer 2 Testnet
Sony has introduced the Minato testnet for its Soneium Ethereum Layer 2 network. Aimed at providing a cost-effective environment for developing consumer-grade applications, this testnet integrates the ASTR token as a key asset. For projects looking to leverage Layer 2 solutions, Sony’s entry into this space could offer new partnership or investment opportunities.

CEO of Haru Invest Stabbed During Court Hearing
Hugo Hyungsoo Lee, CEO of Haru Invest, was critically injured during a court hearing in Seoul. The attack occurred amidst ongoing trials for alleged fraud involving $1 billion in investments. This tragic event underscores the volatility and risks associated with high-profile crypto executives, a consideration for VCs during due diligence.

Lido Is Losing Millions Every Month
Despite being the largest DeFi protocol with $25 billion of ETH in Total Value Locked (TVL), Lido is running at a loss. Data from Dune Analytics indicates Lido has lost $7.9 million every month on average since launching in December 2022. This highlights the importance of sustainable business models, even for market leaders—a critical factor for VCs evaluating long-term investment potential in DeFi.

Final Notes

Hamster Kombat Token Airdrop Scheduled
The Hamster Kombat game will conduct a token airdrop on September 26, following a delay. The airdrop will distribute tokens to players, market liquidity providers, and ecosystem partners. This event could provide insights into token distribution strategies and their impact on project ecosystems.

Markets rallied as the latest U.S. economic reports exceeded analysts’ expectations. BTC and ETH rose 2%, while Solana and Polkadot remained flat. Additionally, Base and Taiko are enjoying record-high transaction volumes, Aave is looking to collateralize GHO with BlackRock’s BUIDL, Cobie’s Echo platform has invested $10 million into early-stage projects, Hamster Kombat is set to launch a token next month, and Proof of Play is planning a second Pirate Nation appchain.

Stay tuned for more updates and insights on the evolving crypto landscape, with a focus on opportunities and challenges for VCs and innovative projects.