Ecosystem Update July 23

Dear investors,

We are thrilled to share our July 2023 ecosystem update, offering a comprehensive overview of key company updates, the latest advancements, and achievements within the Advanced Blockchain ecosystem as well as insights into macro-level industry developments, providing a comprehensive summary.

ABAG Update

We are delighted to share with you the highly anticipated news that our audited consolidated financial statements for the year 2022 have finally been released. We understand that many of you have been eagerly awaiting this moment, and we appreciate your patience.

Consolidated Financial Statements 2022 results:

Key figures from the audited financial statements (in mEUR) include:

• Sales: 14,916 (VJ.: 17,422)
• EBITDA: 1,942 (VJ.: 6,781)
• EBIT: 1,798 (VJ: 6,751)
• Jahresüberschuss: 1,873 (VJ: 5,568)

The release of these financial statements marks a significant milestone for our firm and reflects our commitment to transparency and accountability. Through meticulous auditing and rigorous financial reporting processes, we have ensured the accuracy and reliability of the data presented.

Advisors Update:

With immense pleasure, we share with you the inclusion of Klaus Rainer Kirchhoff, the esteemed Founder and Chairman of the Supervisory Board at Kirchhoff Consult AG, to the distinguished team of Advisors at Advanced Blockchain. Drawing from his wealth of experience and expertise in financial communication and strategy, Kirchhoff will be providing valuable insights and guidance to our organization for the next four years. 

Klaus Rainer Kirchhoff is a renowned expert in financial communication and strategy. Currently, he serves as Chariman of Kirchhoff Consult AG, a global leading firm specializing in annual report consultancy and design, IPOs, investor relations, and ESG strategy consultancy. Drawing from his extensive expertise, he has successfully guided 72 companies through IPOs and collaborated with prominent DAX-listed companies, the German government, and various other organizations. Apart from his impressive professional achievements, Kirchhoff is also an accomplished author with 12 published books to his credit and a sought-after speaker, imparting knowledge through lectures and active participation in panels on a global scale. Kirchhoff graduated in law in 1983 and practiced law in Hamburg until 2022. In 1994, he founded his own successful company, which he later sold to Team Farner Holding in 2022.

Read more about this exciting news in this dedicated blog.

Virtual Annual General Meeting:

The Annual General Meeting is scheduled to take place virtually on August 22nd, 2023, at 10:00 CET. For in-depth information about the meeting structure and all relevant details, kindly access the comprehensive invitation available on our Investor Relations page.

Please don’t hesitate to contact us via investors@advancedblockchain.com to clarify any open questions you may have. We value staying connected with you and are more than happy to assist in any way we can.

Moving forward, we will take a closer look at the advancements made within our ecosystem throughout July:

Ecosystem Update

Summary

• Peaq secured Polkadot’s 45th parachain auction through community contribution of $1+ million and has been featured by TechCrunch for accelerating Web3 adoption.
• Composable Finance concluded Centauri bridge testing and introduced PICA token staking.
• Panoptic has been featured by Yahoo Finance for enabling permissionless options trading on Ethereum.
• Binance Research highlights Maverick's capital efficiency edge over Uniswap, Curve, and Balancer.
• Moxy Token Generation Event raised nearly $1 million 
• Manta Network team raises $25m in series A, resulting in a valuation of $500m

peaq

Peaq has been featured by TechCrunch for its groundbreaking work in accelerating Web3 adoption! Through their Decentralized Physical Infrastructure Networks (DePINs) technology, they have successfully enabled the first 100 tokenized Teslas to generate revenue via car-sharing, leveraging the power of peaq's innovative tech.

TechCrunch highlights that "Car-sharing revenue could be a first step to mainstream adoption of Web3 in the enterprise." This exemplifies the crucial role of asset tokenization in driving Web3 adoption and making an impact on the broader economy.

Additionally, peaq emerged as the winner of Polkadot's parachain auction No. 45, securing the slot on the Polkadot network through community contributions totaling around 207,141 DOT (equivalent to roughly $1+ million). This achievement paves the way for the team's preparation for the mainnet launch.

Composable Finance

Composable Finance team has concluded the mainnet testing of Centauri connection the Polkadot and Cosmos as well as launched the first ever DeFi interaction between these two ecosystems. 

Moreover, Picasso's native token, PICA, can now be staked on Centauri, offering token holders and attractive 13% Annual Percentage Rate (APR) on their locked token. These staked tokens play a crucial role in validating transactions originating from both Substrate-based blockchains (such as Polkadot) and Cosmos-based blockchains.

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In addition to their technical accomplishments, the Composable Finance team participated in the Nebular Summit held in Paris on July 24-25. During the event, they presented the Centauri bridge and shared insights into their future plans for expanding bridges to other blockchain ecosystems.

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The team is actively engaged in integrating additional Polkadot parachains and Cosmos appchains, enabling seamless transfers between all blockchains constructed on both ecosystems.

Lastly, the team is currently addressing the technical hurdle of Ethereum bridging, a development that holds substantial potential to enhance the overall value of the ecosystem.

Panoptic 

Yahoo Finance has featured Panoptic for the release of its recently released litepaper, emphasizing the role of Panoptic in facilitating the permissionless trading of options on the Ethereum network. 

Additionally, the team has introduced Panoptic Gated, an initiative in the form of a trading competition aimed at optimizing their platform. This initiative has gained significant traction, as evidenced by 4000 signups, showcasing the growing interest in their options protocol.

Maverick

Binance Research team has highlighted Maverick's protocol edge, demonstrating a capital efficiency of approximately 107% compared to leading protocols like Uniswap, Curve, and Balancer. This underscores the significant contribution of the team to the entire DeFi market by offering innovative solutions that enhance liquidity provision and generate higher profits for liquidity providers (LPs). Capital efficiency, in this context, refers to how effectively the Automated Market Maker (AMM) utilizes the capital deposited by LPs to maximize returns.

Maverick protocol has achieved yet another milestone, securing its position as one of the top 3 Decentralized Exchanges (DEX) by trading volume across all chains, as reported by DefLIama.

Talisman

Talisman Github repository has undergone a significant update, making it completely public and fully open-source. This change allows the community not only to view the commits and contributions made by the involved builders but also provides access to important security audits, which play a crucial role in evaluating the protocol.

Furthermore, the Talisman team has entered into a strategic partnership with Mises browser, facilitating the usage of Talisman on mobile devices and promoting wider adoption of the wallet.

Neon Labs

Neon Labs team has recently made an announcement regarding their official launch on Solana mainnet. This development enables developers to build Ethereum-native applications on the Solana blockchain.

Neon Ethereum Virtual Machine (EVM) innovative protocol aims at enabling the execution of Ethereum’s smart contracts on Solana blockchain, solving the scalability issues faced by Ethereum by allowing quicker and more cost-effective transactions.

Furthermore, the Neon Labs team had a remarkable presence in the Eth Paris conference, where they conducted a workshop, held presentations and set up a booth to engage and connect with fellow developers and builders in the Ethereum community.

Neon Labs

Everstake, one of the industry’s top-performing validators, announced its participation as a validator in the second round of testing Obol-based distributed validators (DVs). 

Furthermore, Neon Labs attended Eth Paris giving a dedicated talk around Obol’s distributed validator’s technology. 

Moxy 

Moxy’s Token Generation Event (TGE) went live on the 10th of July, selling 18,000,000 MOXY at $0.055 USD per token and raising almost $1 million in total. 

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Manta Network

Manta Network development team has raised $25 million lead by leading investors, such as Polychain Capital, SevenX Ventures, Alliance DAO and Coinfund.

Macro Industry View 

The Ripple vs. SEC case reached a critical stage with the long-awaited ruling on the 13th of July 2023. In 2020, the SEC filed a lawsuit against Ripple Labs, alleging that it conducted an unregistered securities offering through the sale of its XRP tokens worth $1.3 billion. U.S. District Judge Analisa Torres ruled partially in favor of Ripple, stating that the XRP offering was not an unregistered securities offering. However, she highlighted that if XRP tokens were sold to institutional investors, they could be considered securities as they meet the criteria of the Howey Test. This ruling represents a partial victory for Ripple, but it also raises significant open questions that require further clarification. As a result, the SEC has announced an appeal.

It will be interesting to see how this case continues. The ruling sets a direction and moderates Gary Gensler's rigorous stance on all tokens except for Bitcoin being considered securities in a favorable way for the crypto industry. This ruling's effects will extend to the Coinbase case and likely provide leverage to defend against the SEC's accusations regarding the listing of unregistered securities on their platform. This is particularly striking as Judge Torres explicitly pointed to programmatic sales that happened on digital asset exchanges in the case of Ripple.

There may be early signs of moderation on the horizon for the crypto industry in the US, something that has been highly demanded due to the regulator’s firm stance over the last 6 months. Progress in this area would be crucial, as it would be needed quickly to restore regulatory clarity and prevent the drain of crypto projects out of the US and into more progressive jurisdictions, thereby preserving the growth of the crypto industry within the country.

After the adaptations to the refiling of the Blackrock Bitcoin ETF earlier this month, Larry Fink, the founder and CEO of Blackrock, has been increasingly bullish on Bitcoin. Comments like Bitcoin could revolutionize the financial system provide a very different tone after almost three years of bashing the asset at every corner.

His latest comment on crypto, describing it as a technology that is going to transcend any one currency, almost raises doubts on why he would 180 on his former statements, when a 50/50 position would have been more credible. We assume he used crypto synonymous for Bitcoin, possibly because he is currently unable to talk about Bitcoin specifically given the application for the Bitcoin Spot ETF. However, the creation of a Spot ETF is not necessarily only a good thing, as it could potentially allow the development of a paper-based Bitcoin market on top of the spot market, which might have certain implications, at least to some extent. One can definitely say now though that Wallstreet has finally arrived in the crypto space. The influence it will gain over Bitcoin and hence crypto will depend on the willingness to sell by all the HODL’ers in the coming months.

Lastly, the rate hike of the US policymakers by a quarter point, brings interest rates to the highest level in 22 years. The door remains open for further hikes, while overall we are getting mixed messages between supposedly a continued decrease in inflation in the US, which may indicate the end of the monetary tightening and reduction in interest rates but does not necessarily fit the actions of the FED. The continued increase in the M2 money supply post the debt ceiling is rampant. This has historically been well correlated with Bitcoin price developments. It almost appears that macro is also lining up with the upcoming Halvening in April of next year.

We extend our gratitude for your continued support and belief in Advanced Blockchain’s vision. Your partnership remains essential to our collective success, and we look forward to a promising future ahead.

Thank you for being a part of our journey.

Best regards,

Advanced Blockchain Team