November Week of the 19th

TECH RESET
The OpenAI Board’s Attempt At Ousting Sam Altman Backfires

The past few days at OpenAI have seen more twists than a riveting script for a dramatic movie. On Friday, the sparks were set off by a blog post announcing the departure of CEO Sam Altman. If the OpenAI board aimed to quietly remove Sam Altman on a Friday, hoping it would go unnoticed, they were sorely mistaken. Not only did it fail to slip under the radar, but it set the internet ablaze, prompting a wave of resignations from key executives and employees at OpenAI.

Fast forward to Sunday, and Altman is back at the negotiating table for a potential return, setting and ultimatum: the existing board must step down for his return. Negotiations, rumored to be as intense as any high-stakes summit, continue with Microsoft's Satya Nadella mediating the talks.

The Altman supporters rallied, showcasing the level of loyalty or concern within the company. The situation has turned into a tug of war for control and trust within the AI giant. The weekend witnessed intense talks, speculation of mass resignations, and Altman, donning a guest badge, symbolizing either an end or a new beginning.

OpenAI, a company that started as a nonprofit before turning for-profit, now finds its future hanging in the balance, and the industry is watching with bated breath. Altman's potential return is not just about a change in leadership; it's a chapter that could redefine OpenAI's trajectory and the broader conversation about AI's role in shaping our future.

So as this week get underway we are at the edge of our seat to see how the rest of this saga plays out…. Stay Tuned 🍿🥤😎

MUSIC/TECH RESET
Revolutionizing the Music Industry with Web3

The music industry is on the brink of transformation, and at the heart of this revolution is Web3 technology. Web3, the decentralized internet, is reshaping the landscape by empowering artists and revolutionizing how they create, share, and monetize their music.

Traditionally, artists faced challenges in transparency, financial flexibility, and direct fan interaction. Web3 addresses these issues through blockchain, a digital ledger offering transparency in music metadata and rights management. This ensures proper crediting and compensation for artists.

Blockchain introduces Music Industry Tokenization, allowing artists to tokenize their work. Fans can buy, sell, or exchange these tokens, creating new revenue streams and turning supporters into investors in the artist’s success.

Web3 eliminates intermediaries, fostering direct artist-to-fan connections. Artists can communicate, sell their work, and generate revenue without relying on third parties, creating a more direct and intimate relationship with their audience.

In short, Web3, coupled with blockchain technology, is ushering in a new era of creative freedom and financial independence for musicians. It's not just a technological shift but a change in ideology, placing creators at the forefront of the music industry.

The future of the music industry looks brighter and more empowering than ever with Web3, promising a more equitable and innovative ecosystem for both creators and fans.

CRYPTO RESET
A Deep Dive into Solana's Surging Price

Solana's native token, SOL, has witnessed a remarkable 22% surge on Nov. 10, reaching beyond $54 for the first time since May 2022. Notably, this surge occurred amidst the continuous selling of SOL tokens by FTX’s bankruptcy estate, which gained court approval for the sale of assets, including 55.75 million SOL, in September 2023.

Investor enthusiasm for SOL’s surge could be attributed to tokens from bankruptcy proceedings being either vested or locked, coupled with a weekly sale limit of $100 million as part of FTX’s liquidation plan. Initially feared as a liquidation threat, these sales have had a limited impact, fueling optimism among investors.

SOL’s resilience during the FTX bankruptcy token dump is particularly noteworthy. As expressed by traders and analysts, once this seller's influence diminishes, there's anticipation for a significant upward movement in SOL's price.

The substantial 39% weekly gains in SOL have driven its futures open interest to $745 million, the highest since November 2021 when SOL achieved its all-time high of $260. While futures markets reflect leverage longs and shorts in balance, examining SOL’s funding rate provides a nuanced perspective.

The current futures funding rate, representing a 0.5% weekly cost for leverage longs, aligns with the bullish momentum. This shift from funding rate levels three weeks earlier, where leverage shorts paid for leverage, indicates a significant change in market dynamics.

Despite the potential influence of derivatives markets, Solana's ecosystem displays notable growth. Solana's total value locked (TVL) has reversed its declining trend after six consecutive weeks, indicating increased deposits in its smart contracts.

Further growth is evident in Solana’s decentralized applications (DApps) deposits, which have seen a 10% increase in the last three days. Although still below the levels prior to the FTX exchange bankruptcy, this trend suggests a positive trajectory for the Solana network.

Solana now ranks as the fourth-largest blockchain in decentralized finance (DeFi) TVL, accompanied by a 28% growth in the number of active addresses. This surge in activity differentiates Solana from competitors, including Ethereum, which faced a 22% drop in DeFi active users.

While SOL's recent rally has propelled its market capitalization to $22.8 billion, questions arise about sustainability compared to other networks like Polygon and BNB Chain. With no evident signs of excessive leverage demand in SOL derivatives contracts, the current fundamentals suggest cautious optimism for further upside, yet with an awareness of potential limitations in the future.

DISCLAIMER:
This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions or investments. Please be careful and do your own research.