Ecosystem Update September 23

Dear investors,

We are thrilled to unveil our September 2023 Ecosystem Update. In this update, we provide a thorough overview of key industry trends, achievements within Advanced Blockchain’s ecosystem and the latest company developments, offering a comprehensive summary of our progress and the broader landscape. 

Macro Industry View 

The crypto market in the second half of 2023 has proven to be notably evolving, with numerous developments occurring not only in terms of regulatory changes. Yet, the Bitcoin price has been tightly consolidating and started to build a strong support at current levels. The near-term solution on the threatening government shutdown in the US should support risk on assets like Bitcoin and crypto. This is accompanied by ETH futures ETF, which may be launched as soon as Monday in the US. Many events this week with Monday starting off with a speech of Fed Chair Powell as well as several FOMC speeches this week will give an outlook on what has been historically the strongest performing month for Bitcoin since its inception. The Bitcoin ETF pressure should provide further positive momentum as market consensus assumes, the SEC will not drag a decision out to the last possibility and would likely approve all ETF applications at once. The latest date for the approval is currently scheduled for January 10, 2024.  

Scenario 1: ETF Filling are ultimately approved

As we progress toward approval, we may observe a price increase, followed by a substantial absorption of supply. This absorption is primarily fueled by major institutions such as BlackRock, Fidelity, Grayscale, and others accumulating BTC. Consequently, this may contribute to increased downward price volatility.

Nevertheless, there's also the possibility that price levels remain relatively stable, which may not be as favorable for these large institutions.

It is expected that shortly after the ETF approval and launch, the price may give in for the first couple of weeks. This “buy the rumour sell the news”-like scenario, would show a reduction in price, which should not hold long and lead towards a bullish market environment. 

Scenario 2: ETF Filling are ultimately rejected

While a rejection of such filings is not expected to significantly alter the market structure, the immediate market response is likely to be negative. However, new filings will be submitted until they are eventually approved.

Ecosystem Update

Summary

• Peaq demonstrates IoT advancements at IAA event, introduces peer-to-peer parking and charging system, and expands Ethereum developer support.
• Composable Finance enhances inter-blockchain communication for Ethereum, Polkadot, and Cosmos, benefiting institutions, investors, end-users, developers, and protocols.
• Panoptic releases smart contract code, participates in Token2049, and continues DeFi innovation.
• Cointelegraph features Moxy for its leading role in reshaping the future of gaming
• Myso Finance improved V2 testnet and integrated with Mantle Network, an Ethereum layer 1 with rollup tech.

peaq

At the recent IAA event in Munich, peaq in collaboration with Gaia-X moveID revealed significant advancements in IoT and the Economy of Things, where the team introduced a peer-to-peer parking and charging system on the Peaq ecosystem, eliminating the need for multiple accounts and cards Notably, autonomous transactions between vehicles and infrastructure were demonstrated, all powered by blockchain technology.

Gaia-X, funded by the EU with over €20 million, supports peaq, Bosch, and others. Its mission is to establish a secure, federated data infrastructure for European digital independence and future smart cities.

Besides the team participation at IAA, Peaq has broadened its capacity to cater to Ethereum developers, marking the first update that brings peaq IDs to peaq's Ethereum Virtual Machine (EVM) side.

The easier it is for EVM-native projects to utilize peaq’s DePIN functions, the higher the probability of witnessing more projects opting to build on peaq, bringing more solutions to the network and, in return, increasing the value of the protocol.

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Composable Finance

Composable Finance team is working diligently on the major initiative of enhancing the capabilities of IBC (Inter-Blockchain Communication) by connecting it with Ethereum. Their goal is to establish a secure and smooth connection between Ethereum, Polkadot, and Cosmos blockchain ecosystems. You might be pondering, what might be the fundamental advantage for the involved stakeholders?

This development brings multiple advantages to various parties, including institutions, investors, developers, end-users, and existing protocols within Ethereum, Polkadot, and Cosmos, as outlined below:

Institutions & Investors:

• Expansion of asset portfolio with reduced cross-ecosystem risks
• Open doors to increased transactional volume and revenue across diverse ecosystems

End-Users:

• high APR opportunities across multiple chains through a single user interface.
• Initiating transactions securely with the trust-minimized, non-custodial advantages of the IBC protocol

Developers:

• Development of applications that can seamlessly interact with different ecosystems    
• Maximization of unique capabilities of various chains and frameworks for a more efficient development 

Protocols across Ethereum, Polkadot and Cosmos:

• Attraction of Ethereum users to explore Polkadot & Cosmos-based applications and vice-versa
• Boosting liquidity, collaboration through open governance proposals, and offering new opportunities to users in a more liquid, interconnected, and diverse market.

The possibilities are limitless in this groundbreaking development, marking a pioneering stride in blockchain interoperability upon its deployment and testing.

Panoptic

Panoptic has successfully released its smart contract code to the wider community. This pivotal step paves the way for the highly anticipated beta launch, offering the community the opportunity to test out the core functionalities of the protocol.

Earlier this month, the Panoptic team had the privilege of attending the Token2049 conference and taking part in a DeFi panel where they shared valuable insights into their recent protocol developments and provided a sneak peek into the exciting releases on the horizon.

Talisman

The Talisman team participated in the Token2049 conference, where they showcased their latest wallet developments and introduced conference attendees to the innovative Talisman wallet solution.

Furthermore, the team remains dedicated to their ongoing efforts to optimize their product and introduce new features aimed at enhancing the user experience.

Manta Network

Manta Network has concluded the findings of audits on the Atlantic Network, which were carried out by multiple independent auditors, ensuring a comprehensive and all-encompassing evaluation of the protocol's underlying components. The audits of Manta Atlantic's services and protocols have confirmed the network's robust security. 

Beyond technical audits, Manta Network team has accomplished the successful deployment of the Pacific Alpha mainnet, establishing a global, inclusive ecosystem for user interactions with zero-knowledge capabilities.

Moxy 

Cointelegraph has highlighted Moxy for its transformative impact on the future of video gaming, as it stands as the inaugural plug-and-play solution accessible to game developers across all platforms.

Myso Finance

Myso Finance team has provided an update regarding their progress on the V2 testnet. They have focused primarily on enhancing capital utilization, improving efficiency, and optimizing cost structures. You can access a comprehensive guide on how to borrow and lend using the protocol right here.

A few days later, the team made an announcement that MYSO is now love on the Mantle Network. The Mantle Network is a layer 1 solution that utilizes rollup technology and is built on the Ethereum network.

Neon EVM

Neon EVM team actively engaged in DAPPCON23, the foremost developer-focused conference within the Ethereum ecosystem, offering exclusive insights and real-time updates on their latest developments.

Furthermore, the CEO of Neon was a featured speaker at the Ethereum Singapore conference, addressing the topic of scaling Ethereum decentralized dApps with Neon EVM on the stage.

ABAG Update

In early September, our CEO, Simon Telian, had the honor of meeting with representatives from the Ministry of Economy, Trade and Industry (METI) in Japan. This visit offered valuable insights into Japan's strategic vision for promoting Web3 adoption, presenting a significant opportunity for our ongoing efforts to expand our operations beyond Europe and establish collaborations with new partners across the Asia-Pacific (APAC) region.

Furthermore, just a few days ago, we released our half-year financial report for the year 2023. Despite the challenging backdrop of the previous year, which saw us engage in OTC token transactions and strategic expansions, we've steered our company toward profitability.

During the first half of 2023, we accomplished remarkable sales of €1.2 million, a significant achievement, especially in the face of challenging market conditions. Furthermore, our EBIT experienced a substantial upturn, increasing to €0.5 million in H1 2023, in contrast to the -€0.5 million deficit recorded in the same period in 2022. 

As of May 31, 2023, we achieved a noteworthy milestone by conducting an external valuation of our top 10 portfolio stocks. The results have shown a total valuation of EUR 39.65 million, based on acquisition costs of EUR 4.7 million, a testament to our investment success. Notably, this marks a first in the German blockchain industry, where token assets are included in portfolio valuation.

Looking ahead to the remainder of 2023, our commitment remains steadfast in pursuing sustainable growth and optimizing costs. We anticipate revenue from token transactions, especially OTC transactions, as well as potential returns from upcoming token launches.

Access the complete Half-Year report by following this link: https://shorturl.at/hpwyB

We express our heartfelt appreciation for your ongoing support and trust in Advanced Blockchain's vision. Your partnership continues to be pivotal to our shared success, and we eagerly anticipate a promising future together.

Thank you for being a part of our journey.

Best regards,

Advanced Blockchain Team