Chinese OpenAI competitor DeepSeek was released on January 20 but didn't catch the world's attention until this past week when it took economic markets by storm, slashing AI stocks and deepening a sell-off for many AI coins. Trump also commented on DeepSeek's rapid success noting this should be a “wake-up” call for U.S.-based AI companies. Investment analysts see the sell-off of AI stocks as an overreaction, but how seriously should DeepSeek be taken?
2️⃣ Fed Opts Not to Cut Rates
To not so many people's surprise, the Fed decided to leave interest rates as is this week, despite Donald Trump's wishes, who said in the past that he will “demand that interest rates drop immediately.” With unemployment near historic lows and the inflation rate on the rise due to some of Trump's economic policies, the Fed appears to want to proceed cautiously. Powell commented on the current state of the U.S. economy, saying it's “in quite a good place.” Analysts are forecasting that the Fed will either not cut rates for the rest of the year or there will be a single cut in 2025.
3️⃣ OpenSea2 Beta goes Live
This past week, OpenSea launched OS2, but it is still in its beta phase. However, only users who held OpenSea's Genesis NFT, around 50,000 users, were able to gain access to this private beta. One of the more notable aspects of OS2 is its points program in which users can earn XP by listing NFTs, making offers on blue-chip NFT collections, and providing feedback.
Trump Media & Technology Group, the parent company to Truth Social, has announced they are launching a fintech company called Truth.Fi, which will reportedly also engage in the crypto space. Trump has been getting more personally involved in the crypto space over the past years with the launch of his NFT collection, World Liberty Financial, and most recently his meme coin.
5️⃣ Danny Ryan Garners ETH Support
Community chatter over the future of the Ethereum Foundation's leadership continues to build. This week, supporters of former ETH researcher Danny Ryan conducted an informal onchain vote voicing their support for him becoming the “sole executive director” of the EF.
FRIEND & SPONSOR: MANTLE
Season 2: Methamorphosis is now live on mETH Protocol, following the launch of their governance token, COOK, and cmETH, the liquid restaked version of mETH. With cmETH, holders can enjoy yields across multiple restaking protocols like Karak, EigenLayer, Symbiotic, while earning Powder for more COOK.
Joining us this week is Haseeb Qureshi who is here to help walk us through this week's events.
We cover the major shift in the U.S. government’s stance on crypto, as Trump signs an executive order that establishes a national digital asset stockpile working group and bans CBDCs.
Meanwhile, Venice AI’s token launch made waves, and Abstract Chain went live with a focus on creators and streamers. In markets, Nvidia’s $600B plunge rattled investors, and the Czech National Bank considers adding Bitcoin to its reserves. Plus, Gary Gensler lands a new job—back at MIT.
From major shifts in policy to unexpected shake-ups, there’s plenty to unpack.
Not financial or tax advice. Bankless content is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.
Disclosure. From time to time, we may add links in this newsletter to products we use. We may receive a commission if you make a purchase through one of these links. Additionally, the Bankless team holds crypto assets.
