Hey there, PoI readers! 🙌

It's your favorite crypto connoisseur, Mochi, back with another serving of tantalizing tech and web3 news. From FTX's bittersweet repayment plan and a Satoshi-era Bitcoin wallet's awakening to Warren Buffett's AI bombshell and Hermetica's Bitcoin-backed synthetic dollar, we've got a smorgasbord of stories to dive into. So, grab your favorite snack, settle in, and let's embark on a journey through the ever-evolving landscape of digital assets! 🌐

INTEL BRIEF

🟧 FTX's latest proposal offers creditors up to 118% repayment, but some argue it's not enough as it's based on November 2022 asset values.

🟧 A dormant Bitcoin wallet from the Satoshi era has transferred 687 BTC to two different wallets after 10 years of inactivity.

🟧 Warren Buffett compares AI's impact on financial scams to the atomic bomb during Berkshire Hathaway's annual meeting, citing his experience with a convincing deepfake of himself.

🟧 Hermetica is launching USDh, the first Bitcoin-backed synthetic dollar with a 25% yield, raising questions about its long-term sustainability.

FTX's Repayment Plan: A Glimmer of Hope or a Disappointing Compromise?

FTX, the once-mighty crypto exchange that crumbled like a house of cards in 2022, has a new proposal on the table. They're offering to repay creditors' claims plus "billions in compensation for the time value of their investments." Sounds pretty sweet, right? Well, not everyone's jumping for joy just yet.

Here's the deal: FTX is promising to repay all creditors' claims, plus an extra 18% for those with claims under $50,000. That's a whopping 98% of FTX's creditors! The total payout is expected to be between $14.5 and $16.3 billion, and it'll happen within 60 days of the plan's approval.

But wait, there's a catch! The repayment is based on asset values from November 2022, when FTX went belly-up. Since then, the crypto market has been on a wild ride, with Bitcoin soaring nearly 280%. Some creditors argue that they should be repaid based on current market prices, not the values from the dark days of the FTX collapse.

FTX CEO John J. Ray III is "pleased" with the proposal, but not everyone shares his enthusiasm. Mike Belshe, CEO of BitGo, took to X (formerly Twitter) to express his disappointment, saying, "let's not pretend victims are getting their money back."

It's a bittersweet situation, folks. FTX is trying to make amends, but some feel it's not quite enough. The company has been hustling to recover funds, even selling $884 million worth of shares in AI firm Anthropic. But let's be real, it's going to take more than a few AI shares to fill that $8 billion hole left by the collapse.

So, what's the verdict? Is FTX's repayment plan a step in the right direction, or is it just a Band-Aid on a gaping wound? Only time will tell, but one thing's for sure: the road to recovery is going to be a bumpy one for FTX and its creditors.

FTX proposes repaying creditors' claims plus 18% for claims under $50,000.

Repayment based on Nov. 2022 asset values, not current market prices.

Some creditors and industry leaders argue the plan isn't fair enough.

Sleeping Beauty: Satoshi-Era Bitcoin Wallet Awakens After a Decade

A Satoshi-era Bitcoin wallet that's decided to wake up from its decade-long slumber. Yep, you heard that right – a wallet from the days when the mysterious Satoshi Nakamoto was still active has come back to life!

On May 6, this sleepy Bitcoin wallet, containing a whopping 687 BTC (worth $43.9 million), decided it was time for a change of scenery. It split its holdings between two wallets, sending 625.43 BTC to "bc1qky" and 61.9 BTC to "bc1qdc." Talk about a big move!

Now, whenever these ancient wallets start stirring, the crypto community goes into a frenzy. Everyone starts speculating about whether it's Satoshi's secret stash or just some early adopter looking to cash in on their investment. It's like a game of "Who's That Pokémon?" but with digital currency!

According to the brainiacs at Chainalysis, there are 1.75 million Bitcoin wallets that have been snoozing for over a decade. These dormant wallets are sitting on a gold mine, with an estimated 1,798,681 BTC (worth around $121 billion) just waiting to be awakened. That's a lot of zeroes, folks!'

In recent years, we've seen quite a few Satoshi-era wallets spring to life, only to transfer their BTC to new addresses or even gasp crypto exchanges. In July 2023, one such wallet moved $30 million in BTC after an 11-year nap. And in November 2023, three wallets believed to be connected transferred a jaw-dropping $230 million in BTC after six years of inactivity.

So, what's the deal with this latest wallet awakening? Is it Satoshi finally deciding to treat themselves to a lavish vacation? Or just another early adopter looking to cash in on their patience? Your guess is as good as ours, dear readers!

One thing's for sure: these Satoshi-era wallets are like the sleeping beauties of the crypto world. They may slumber for years, but when they wake up, they sure know how to make an entrance!

A Satoshi-era Bitcoin wallet containing 687 BTC ($43.9 million) has woken up after 10 years.

The wallet transferred its holdings to two different wallets.

1.75 million Bitcoin wallets have been dormant for over a decade, holding an estimated $121 billion worth of BTC.

Warren Buffett's AI Bombshell: From Deepfakes to Doomsday

At Berkshire Hathaway's recent annual shareholder meeting, the Oracle of Omaha himself, Warren Buffett, had some choice words about artificial intelligence (AI). Despite the company's impressive growth and Buffett's own net worth skyrocketing by $16 billion in the first five months of 2024, the billionaire couldn't help but express his concerns about AI's potential for misuse.

Now, let's be clear: Buffett isn't claiming to be an AI expert. In his own words, "I don't know anything about AI, but that doesn't mean I deny its existence or importance or anything of the sort." But that didn't stop him from dropping a bombshell comparison that left everyone's jaws on the floor.

Buffett, you see, had a close encounter with a deepfake doppelganger that was so convincing, it looked, dressed, moved, and talked exactly like him. This experience led him to compare the impact of AI technologies in illicit financial activities to the advent of the atomic bomb and the proliferation of nuclear weaponry. Yikes!

In a moment of dark humor, Buffett quipped, "If I was interested in investing in scamming, it's going to be the growth industry of all time." He went on to say that based on the deepfake he saw, he'd "practically send money to myself over and over in some crazy country." Talk about a self-scam!

While Buffett acknowledged that AI has potential for good, his focus on the scary side of things is notable, especially considering that Berkshire Hathaway's largest investment is in Apple. The tech giant recently lost its top spot to Microsoft, which has been riding high on its investment in ChatGPT maker OpenAI.

As Apple scrambles to catch up in the AI race, one can't help but wonder how Buffett's views on the technology will shape Berkshire Hathaway's future investments. Will the Oracle of Omaha steer clear of the AI hype, or will he find a way to navigate the potential pitfalls?
Only time will tell. But one thing's for sure: when Warren Buffett speaks, the world listens. And this time, he's sounding the alarm on AI's potential for financial mayhem.

Warren Buffett compares AI's impact on financial scams to the atomic bomb.

Buffett's concerns stem from his experience with a convincing deepfake of himself.

Despite his views, Berkshire Hathaway's largest investment is in Apple, which is focusing on AI.

USDh: The Bitcoin-Backed Synthetic Dollar Making Waves with a 25% Yield

Hermetica, a Stacks-native DeFi protocol on Bitcoin, is gearing up to launch USDh, the first-ever Bitcoin-backed synthetic United States dollar with yield-generating capabilities. That's right, folks – a synthetic dollar that's fully backed by Bitcoin and offers a mouth-watering 25% yield! Talk about a game-changer!

According to Jakob Schillinger, founder and CEO of Hermetica Labs, USDh will allow Bitcoiners to hold and earn yield on their U.S. dollars without having to trust the banking system or dive into non-Bitcoin-related products. It's like having your cake and eating it too, but with Bitcoin!

But wait, you might be thinking, is a 25% yield sustainable in the long run? After all, we've seen what happened with Anchor Protocol and TerraUSD (UST) when they promised high yields. Well, fear not, dear readers! Schillinger assures us that the yield is sustainable and derived from futures funding rates.

In fact, Hermetica's backtest data from January 2021 to March 2024 shows an average APY of 11.71%, with the 2022 bull market boasting an annual return of 26.11%. Schillinger believes that the structural demand for long leverage in the Bitcoin futures markets will keep USDh's yield sustainable.

The launch of USDh is just one example of the growing trend of protocols building more utility and DeFi capabilities around Bitcoin.

Schillinger sees the introduction of Ordinals as a major catalyst for Bitcoin DeFi (BTCFi) and predicts that it will match and eclipse the size of Ethereum DeFi in the next five years.

With over $1 trillion in latent BTC capital, Bitcoin DeFi is indeed primed for explosive growth. And who knows, maybe USDh will be the spark that ignites the BTCFi revolution!

The world of Bitcoin-native DeFi is about to get a whole lot more exciting, and USDh is leading the charge. Will it be a sustainable success story, or will it face the same fate as UST? Only time will tell.

Hermetica is launching USDh, the first Bitcoin-backed synthetic dollar with a 25% yield.

USDh's yield is derived from futures funding rates and is considered sustainable by Hermetica's CEO.

The launch of USDh is part of a growing trend of protocols building DeFi capabilities around Bitcoin.

And there you have it, my brilliant PoI readers! I hope this edition left you feeling informed, entertained, and maybe even a little bit more optimistic about the future of crypto (despite some of the bumps in the road). Remember to stay curious, stay informed, and keep spreading the love. Until next time, this is Mochi, signing off with a virtual fist bump! 🤜🤛✨

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