GM Explorer,

Cardano debuts its first zero-knowledge smart contract, promising secure, private transactions and groundbreaking scalability. Discover how this milestone changes everything.

Here’s what we got for you today:

• 👏 Cardano launches first zero-knowledge smart contract!

• 🤔 Trump considers handing crypto regulation to the CFTC!

• 🔎 Market Insight:

• 🧱 Around the Block: UK to roll out comprehensive crypto regulations by 2026.

👏 Cardano Launches First Zero-Knowledge Smart Contract!

Cardano (ADA) has achieved a significant technical milestone!

The network has successfully rolled out its first zero-knowledge (ZK) smart contract on the mainnet.

This milestone, fueled by the Plutus v3 ledger language, paves the way for ZK applications and partner chains like Midnight to merge effortlessly with Cardano's ecosystem.

Input Output – Cardano’s core development team – executed the transaction using the Halo 2 proving system for zero-knowledge verification.

Here’s how it all went down:

• The process started with an initial transaction, locking funds for a transaction cost of just 0.16 ADA.

• Next, a second transaction took place, where those funds were unlocked via a ZK proof generated by Halo 2 at a fee of 2.03 ADA.

While this deployment marks a monumental step forward, Input Output emphasized that more work is still needed.

But for now, let’s dive deeper into what this “Halo 2” is all about below:

It’s an advanced zk-SNARK (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge) proving system that validates transactions securely without exposing any underlying data.

This means no need for a trusted setup, effectively reducing potential security risks.

Plus, it supports recursive proofs – This capability breaks down computations into smaller segments, allowing for efficient proof aggregation that boosts performance and scalability.

And wait, there's more!

Halo 2 incorporates the PLONK zk-SNARK framework, a universal zk-SNARK framework that optimizes efficiency and flexibility.

Thus, it lowers operational overheads and speeds up proof generation and verification, making it suitable for practical use cases.

Impressive right? We certainly think so!

There’s much more to discover about this incredible advancement, so check here for more details.

🤔 Trump Considers Handing Crypto Regulation to the CFTC!

The Trump administration is about to shake up the crypto world once again!

Reports suggest they’re considering giving the Commodity Futures Trading Commission (CFTC) a lot more power.

How?

By making the CFTC the main regulator for cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), effectively kicking the SEC to the curb.

The main idea is to classify these cryptos as commodities, allowing for a more relaxed, innovation-friendly regulatory environment with less red tape and more exciting developments in the crypto space.

And honestly, who wouldn’t be excited about that?

Former CFTC chair Christopher Giancarlo is all in on the idea, believing the CFTC could handle regulating digital commodities—if given the right resources, of course.

And you know what else?

This move could finally resolve the ongoing tug-of-war between the SEC and CFTC regarding the classification of digital assets.

In fact, the CFTC already has some authority over Ethereum’s futures contracts, so it’s not entirely new territory.

Oh, and a bipartisan bill (the BRIDGE Digital Assets Act) is in the works that could help align the two agencies.

Still, there are a few wrinkles to iron out.

For one, the CFTC is smaller and less funded than the SEC, so while it’s more business-friendly, some are concerned it might be biting off more than it can chew.

Also, traditional CFTC supporters like agricultural traders are raising eyebrows and wondering how this shift might impact them.

But trust me, if these concerns are addressed, this could be a game-changer for crypto regulation.

So, what do you think? Is this the crypto regulatory shift we’ve all been waiting for, or is it another regulatory mess in the making? Only time will tell.

But for now, it looks like Trump is still on track to fulfilling his promises to the crypto industry.

You can read the full report here.

🔎 Market Insight

Celestia (TIA) is one of the most hated coin in the entire crypto market.

Many investors are frustrated because they bought TIA near its peak price of $21 and staked their tokens to access a free airdrop.

Unfortunately, the value of their tokens dropped over 80%, and the airdrop they received was worthless.

Others resent Celestia because some venture capitalists (VCs) who invested in the seed rounds staked their locked TIA tokens and sold the rewards they earned from staking.

Some VCs made back more than their initial investment from the seed rounds just through selling these staking rewards.

This prompted an outcry on Twitter.

Lastly, there was significant FUD on Twitter at the time regarding an upcoming Celestia token unlock (this has already happened).

Many people anticipated that the price of TIA would decline further once the VCs gained access to their tokens.

Remember, VCs got their TIA coins during the seed round, and at that time, some of them were already 100x in profits.

But despite the negative sentiment, Celestia's fundamentals were incredibly strong.

Since its launch on the mainnet, TIA has captured nearly 50% of the market share of Ethereum (ETH) and has quickly shown itself as the king of the data availability space.

In September, Celestia announced a funding round in which they raised $100 million (almost double the initial seed round) and attracted notable investors like 1kx, Bain Capital and Placeholder.

At the time of the announcement, TIA was priced at $5.99, while the funding round was rumored to be valued at $3.50 per token, which was about 70% lower than its market price at the time.

This was the final confirmation we needed to invest in TIA. (our average entry price is $5.62).

Since the $100m funding was just 70% away from the market price at the time, we knew that the new VCs would defend the coin (even with the huge token unlock) and pump the price upward.

That assessment proved to be true.

Note: We didn't inform you about this because we hadn't started this segment then.

However, current technical analysis shows that TIA is a strong trading opportunity.

It has impressive strength against its BTC pairing and the potential to break above the Bull Market Support Band.

We anticipate TIA could easily reach between $50 and $100 in this cycle.

🧱 Around The Block

• UK to roll out comprehensive crypto regulations by 2026.

• Bitcoin reserve bill introduced in Brazil’s Congress

• US MetaMask users can now use Venmo to buy cryptocurrencies.

• BitWise files for 10 crypto Index ETFs with SEC.

• Vitalik Buterin donated $1M in Ether to Coin Center hours after Tornado Cash victory.

• U.S. court sides with Tornado Cash and overturns sanctions.

That's all we've got for you today.

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Catch you soon.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions.