📉DeepSeek AI Launch Triggers Crypto Market Sell-Off

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The cryptocurrency market was hit hard on Monday, dropping nearly 7%, with over $1 billion in liquidations following the launch of China’s DeepSeek AI model. On a more positive note, the Ethereum Layer 2 blockchain Abstract, developed by Igloo Inc., has officially launched its mainnet.

Meanwhile, Solana-based DEX aggregator Jupiter saw a 40% spike in its JUP token. Additionally, the pro-crypto Trump administration and a Republican-controlled Congress are expected to bring major regulatory changes that could benefit the crypto industry.

✍️ In today’s newsletter:

DeepSeek AI launch sparks crypto market sell-off
Solana-based social-fi protocol Tribe.Run gains momentum
Cryptocurrency market drops 7% after china launches AI rival to ChatGPT
Why real estate tokenization hasn't taken off yet
Jupiter token surges after DEX aggregator reveals buyback plan using half of its fees
Solana surpasses Ethereum in transaction fees
Trump's crypto regulatory overhaul begins with SEC task force
Abstract blockchain unveils mainnet

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🚨DeepSeek AI Debut Sparks Crypto Market Sell-Off Amid Rising Tech Competition

The launch of DeepSeek, a Chinese AI model aimed at competing with OpenAI's ChatGPT, caused a sell-off in U.S. tech stocks and a dip in the crypto market. However, analysts suggest that cheaper AI models like DeepSeek could ultimately benefit both the crypto and AI industries.

⬆️Solana-Based Social-Fi Protocol Tribe.Run Takes Off

Social-Fi gained traction in the crypto markets over the weekend as activity on Tribe.Run surged. Tribe, a Solana-based social media platform incubated by Alliance DAO, allows users to buy and sell tokens for access to exclusive chatrooms, much like FriendTech.

🤨Why Real Estate Tokenization Isn't Working Yet

MANTRA, a Layer-1 blockchain platform, and DAMAC Group, a leading UAE real estate developer, have announced a $1B deal to tokenize DAMAC’s real estate, hospitality, and data center assets by early 2025. However, without direct integration with Dubai’s land registry system, these tokens may remain illiquid.

📈Jupiter Token Spikes as DEX Aggregator Plans to Spend Half its Fees On Buybacks

Jupiter's JUP token spiked 40% on Sunday after the Solana DEX aggregator announced plans to use half of its fees for token buybacks.

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Web3 is often fragmented, with users struggling to manage multiple blockchains, wallets, and bridges. Okto is addressing this by adopting ERC-7683, a proposed Ethereum standard that simplifies cross-chain interactions. Instead of dealing with complex processes, users can express their goals—like swapping tokens—in a single message. Specialized "fillers" then handle the technical details, executing these tasks across chains. This reduces confusion, lowers costs, and improves efficiency. Okto is integrating ERC-7683 into its platform to create a more unified and decentralized Web3. Although still in draft status, ERC-7683 has gained support from major protocols like Across Protocol, Uniswap Labs, and Polygon Labs, aiming to make cross-chain transactions as seamless as browsing the internet.

🗣️Trump’s Crypto Regulatory Changes Kick Off With SEC Task Force

With a pro-crypto Trump administration and a Republican-controlled Congress, major changes to crypto regulations are imminent. This includes potentially ending the Securities and Exchange Commission’s classification of all cryptocurrencies, except bitcoin and ether, as securities.

🏃🏻‍♂️‍➡️Solana Widens Lead Over Ethereum in Transaction Fees

Solana surpassed Ethereum in transaction fees by the end of last year, according to new data – but it's still behind Tron. This can be attributed to Ethereum’s March Dencun upgrade, which helped reduce transaction fees.

🆕Abstract Consumer-focused Blockchain Launches Mainnet

Abstract, the highly anticipated Ethereum Layer 2 blockchain developed by Igloo Inc., the parent company of Pudgy Penguins, is now live. This was confirmed in a Jan 27 post on X in which Abstract announced that its mainnet is up and running.

🤖Cryptocurrency Market Tumbles 7% Following Release of Chinese AI Rival to ChatGPT

The global cryptocurrency market dropped nearly 7% on Monday, with nearly $1 billion in liquidations, following the launch of China’s DeepSeek AI model. Bitcoin (BTC) fell 4% to $100,000 while Ethereum (ETH) dropped 6% to $3,100.