Trakx Weekly Update: April 28

Key Crypto Market Figures

CTIs Weekly Performance

The digital asset markets saw consistent growth over the past week, with our flagship Trakx Top10 Crypto CTI rising nearly 10%. The standout performer, however, was the Meme CTI, which surged by over 43%, boosted by a remarkable rise in the value of the Official Trump token (more on this below). Close behind, the AI Agents CTI saw a 36% increase as artificial intelligence regained its position as a leading sector in the broader token space. (In fact, our AI CTI was another major weekly gainer, climbing over 20%). On the other hand, the Trakx Inflation Hedge CTI was the weakest performer, but even it it still finished in the green, gaining just under 1%

Top Trumps

Meme coins experienced a major rally last week after US President Trump announced that the top 220 holders of his $Trump coin would be invited to a gala dinner with him on May 22. The top 25 holders would also be treated to a VIP reception and a White House tour. This announcement fueled a 60% surge in the Trump token’s value, meaning that qualifying for the gala now requires holding nearly $400,000 worth of the coin. Despite the economic turmoil associated with his tariffs, the strength of the rally confirms that Trump’s core supporters seem unaffected.

That said, the spectacle of a sitting president engaging in crypto degen behaviour by actively boosting the value of his own token, likely did little to endear him to his critics. In fact, Democratic Senator Jon Ossoff from Georgia called Trump’s promotion of the token an “impeachable offense.”

Twenty One Launches in the US

A new special purpose acquisition company (SPAC) called Twenty One, named after Bitcoin’s 21 million supply cap, has launched in the US The company aims to promote Bitcoin by developing financial infrastructure aligned with the cryptocurrency, including native lending programs and capital market instruments. Led by Strike CEO Jack Mallers, with a significant minority stake from SoftBank, Twenty One is essentially an iFinex venture. It will be majority-owned by Tether and Bitfinex (iFinex is the parent company of both) in exchange for an initial endowment of 42,000 Bitcoin. The SPAC will merge with Cantor Equity Partners, a division of Cantor Fitzgerald, a traditional finance firm that also acts as the primary custodian for Tether’s U.S. Treasury holdings. Although Twenty One could be seen as competition to MicroStrategy, the Bitcoin-focused company led by Michael Saylor, it could also serve to further legitimize Bitcoin’s role in corporate treasuries and provide greater validation for the broader cryptocurrency space.

SNB Against BTC Reserve

While the creation of Bitcoin reserves – both in the public and private sector – are very much a hot topic this year (as we envisaged it would be), not everyone is in favour. Despite support for Bitcoin in Lugano, home of the annual Plan B Bitcoin conference, Swiss National Bank Governor Schlegel argued that such a move would be imprudent, citing Bitcoin’s lack of liquidity and stability—criticisms that echo those from the European Central Bank.

Sources: Trakx, Coingecko, Alphavantage

Market Trends

• Trump memecoin soars 60% after president pledges to invite top holders to ‘gala dinner’ at golf club: DLNews
• Trump’s top memecoin holders’ dinner is an “impeachable offense,” says Sen. Ossoff: CryptoSlate
• Cantor teams up with Tether, Softbank for $3.6 billion crypto venture: Reuters
• Swiss National Bank President Reportedly Dismisses Bitcoin as Reserve Asset: CoinDesk
• Ethereum is destroying the competition in the $16.1T TradFi tokenization race: Cointelegraph
• Solana Foundation Shifts Validator Strategy to Promote Self-Sufficiency: Decrypt

​Trakx News

• Ryan Shea will publish the April crypto update later this week assessing what the volatility-inducing Trump tariffs means for the asset class. Stay tuned!

Sources: Coingecko and AlphaVantage

*Return of bitcoin is calculated since 01/05/2020, while CTIs performances were calculated since their respective launch date.
**Includes simulated performance.
***The risk signal is determined according to the historical volatility level, the higher the riskier.

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Disclaimers: No Investment Advice. Index returns and statistics are for illustration only. Index returns do not reflect any transaction costs or expenses. Past performance does not guarantee future results. The information provided in this newsletter does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the newsletter content as such. Trakx.io does not recommend that any cryptocurrency should be bought, sold, or held by you. Readers shall conduct their own due diligence and consult their financial advisors before making any investment decisions.