[Issue] Consumer Notes #1

Table of Contents

In this week’s Consumer Notes,
Why Consumer Crypto?
Highlights 📢 📰
1. Meme Coins: Rise or Demise? - Makememe.now, marginfi’s The Arena, dumpy.fun
2. Abstract - The Consumer Chain of Pudgy Penguin Goes Live on Testnet
3. Telegram Launches TON Sites and Mini App Store with Native Support for Crypto
4. Blackbird Launches Flynet, Base L3 for Payment and Restaurant Loyalty
Roundup
Curated Insights
1. Video & Podcast
2. Article & Thread

Researcher

In this week’s Consumer Notes,

Meme Coins: Rise or Demise? -
Makememe.now
, marginfi’s The Arena,
dumpy.fun
Abstract - The Consumer Chain of Pudgy Penguin Goes Live on Testnet
Telegram Launches TON Sites and Mini App Store with Native Support for Crypto
Blackbird Launches Flynet, Base L3 for Payment and Restaurant Loyalty

Below, you can also find the Roundup, which summarizes the major market news, along with our Curated Insights, a curated selection of materials that offer valuable insights into the latest trends in consumer crypto.

Why Consumer Crypto?

Source: X(@0xshakib_eth)

Consumer-oriented applications in crypto are undergoing a rapid and exciting transformation. Every day brings news of innovative apps hitting the market. Entrepreneurs and developers are actively exploring novel business models and products, pushing the boundaries of what's possible in this space. Perhaps most notably, we're seeing products that have achieved product-market fit demonstrate power and utility that often surpasses traditional L1/L2 blockchains.

For years, the crypto industry has been heavily focused on building infrastructure and crafting compelling narratives. While these efforts have been crucial, we've reached a saturation point where the most pressing need is not more infrastructure, but user-centric applications. To truly thrive, our industry needs to deliver high-quality products that can attract broader group of users.

Despite the importance and dynamism of the consumer sector, there's a noticeable lack of dedicated coverage. This is due to the high frequency and volume of developments in consumer crypto applications, which often outpace the ability of traditional media to keep up. Moreover, many of these innovations fall outside the typical scope of mainstream tech and finance reporting, causing an information vacuum about the latest developments unfolding in consumer crypto.

This is where Four Pillars comes in. Our goal is to bridge this information gap by delivering insights and trends that you won't have to hunt down yourself. We'll be your eyes and ears in the consumer crypto space, bringing you curated, relevant, and timely information to keep you ahead of the curve.

Highlights 📢 📰

1. Meme Coins: Rise or Demise? - Makememe.now, marginfi’s The Arena, dumpy.fun

1.1 Makenow.meme

Source: Makenow.meme

Just when we thought meme coins could not get crazier, makenow.meme releases its meme token launchpad, letting anyone deploy coins directly on the Solana network by sending tweets on X. Unfortunately, in recent events, the makenow.meme launchpad had its account suspended for violating X’s rules. However, the team has announced that they are working on a solution and will provide updates on their website.

After blockchain links (Blinks) was announced, makenow.meme is the second experiment in recent weeks which have created new use cases by integrating the Solana network into external environments like X. Considering the massive reach of social platforms like X it is a very exciting development with great potential to introduce users to Web3 if implemented correctly.

1.2 The Arena by marginfi

Source: X(@marginfi)

marginfi launched a new product called, The Arena which will enable users to take leveraged long or short positions on any asset they want on Solana.

Previously, This process was controlled by the marginfi team, but permissionless creation of pools are set to be released soon. marginfi users can now short or long any token, including meme coins, celebrity coins, and large-cap tokens, using any collateral directly through the Arena app.

Whether you love or hate meme coins, they have undeniably been one of the largest narratives and best-performing sectors this year. marginfi’s launch of The Arena is a clever business move, allowing their platform to capture more market speculation while also expanding their product offerings.

To try out The Arena, you need to visit the new website and log in using the password ‘enterthearena’.

1.3 dumpy.fun

Amidst the meme frenzy fueled by the popular launchpad Pump.Fun, a rival named dumpy.fun, has gained traction on crypto Twitter in recent weeks. Through its shorting feature, this new platform allows users to potentially profit from the notoriously risky and volatile meme tokens.

Source: X(@dumpydotfun)

The platform can be thought of as the antagonist to pump.fun. It enables shorting by using individuals who deposit their meme coins on Save (formerly Solend) to earn high interest rates for liquidity. By using Save for borrowing and Jupiter for transactions, dumpy.fun lets bears battle it out with the bulls, betting on the demise of meme coins.

The beta version went live on Save on July 30th. Currently, tokens such as $WIF and $Bonk are available for shorting, but new coins will be added daily based on popular vote and liquidity.

Useful Links: Whitepaper, X

2. Abstract - The Consumer Chain of Pudgy Penguin Goes Live on Testnet

Source: X(@AbstractChain)

Abstract is an Ethereum Layer 2 that will leverage zkSync's ZK stack to provide low fees and scalability and Eigenlayer for secure transactions.

The new Layer 2 aims to become the leading consumer chain in crypto. Their heavily consumer-centric approach wants to bring real adoption by building a chain full of exciting consumer-facing dApps across DeFi, SocialFi, NFTs, and more. The chain is being developed by Cube Labs, an incubation of Pudgy Penguin's parent company, Igloo, which raised $11 million in a round led by Peter Thiel's Founder Fund.

Abstract isn’t creating a Layer 2 to become another ‘Ethereum-killer.’ Instead, their goal is to drive crypto adoption and onboard non-crypto natives to interact on-chain by offering improved UX and user-friendly consumer applications. This approach is both necessary and refreshing, and with the team having launched and helped build projects such as Pudgy Penguin, ZKsync, Frame, and Kubernetes, they have both the technical skills and the social network to create a strong and dynamic community around Abstract.

Useful Links: Docs, X

3. Telegram Launches TON Sites and Mini App Store with Native Support for Crypto

Source: Telegram refines in-app browser and adds ‘Mini App Store’

In its latest announcement, Telegram is making another move in Web3. It revealed the launch of the Telegram browser and a mini-app store with native support for crypto, among other new features.

Telegram's new browser will extend the application's use case beyond messaging, allowing users to view and interact with decentralized websites, so-called 'TON Sites' hosted on the TON blockchain.

The update also included a mini-app store that is natively integrated to support crypto. Telegram users can access games and services directly from the Telegram app store, such as the widely popular Web3 game Hamster Kombat. Additionally, a product called Telegram Stars was added, letting users buy digital goods through mini apps and access paid content.

Telegram's recent moves signal the company's intention to become a significant player in the Web3 industry. The introduction of TON Sites, a mini-app store with Web3 games and services, a gifting system, and crypto integrations, signifies a shift from a simple messaging app to a comprehensive Web3 app. Telegram’s new products will be offered to nearly one billion users, which is likely to benefit the crypto industry as consumers will have new ways to explore Web3.

4. Blackbird Launches Flynet, Base L3 for Payment and Restaurant Loyalty

Source: X(@blackbird_xyz)

Blackbird Pay is a Web3 payment platform for restaurants. In a recent announcement, Blackbird Labs revealed they are launching Flynet, an L3 blockchain built on top of Base that will go live on mainnet by the end of Q3 2024.

The consumer app is driven by the native token $FLY, available through the Blackbird app for purchasing goods and services from onboarded restaurants. It also underpins the loyalty, rewards, and scoring system that Blackbird has developed to drive improvements between customers and restaurants in the restaurant economy.

The goal of Blackbird Labs is to help restaurants address declining profit margins and depleted cash reserves by providing a new and improved payment and settlement system. The Blackbird Pay app lowers transaction fees to around 2% and accommodates payments using FLY tokens, USDC, or traditional credit and debit cards.

Source: Dune Analytics (@jhackworth)

The company has experienced steady growth in new members throughout the year. New Blackbird NFT memberships have risen from approximately 3,600 in February to over 125,500 in August. Although we don’t have an official number, it is noteworthy that Blackbird has successfully onboarded a significant number of restaurants in New York and Charleston, United States.

*“Blackbird, for example, is a restaurant loyalty app founded by Resy co-founder Ben Leventhal. It’s built on Coinbase’s Base L2 and uses embedded wallets so that it’s fast, cheap, and doesn’t feel like a crypto app. It feels like a regular app, with crypto benefits, and it’s rapidly expanding with great bars and restaurants in NYC. Soon, it will be crazy to launch a loyalty product that doesn’t use crypto.” -
Not Boring Newsletter
, Packy McCormick

Blackbird's use of Base L2 for fast and inexpensive transactions and Privy for seamless wallet integration has enabled them to provide a clean and straightforward user experience and product offerings, serving as an excellent example of a Web3 consumer app achieving real-world use cases and adoption.

Useful Links:Flypaper, Website, X

Roundup

Polymarket breaches
$1 billion
in betting volume
RobotNet’s
AI agent Pauly goes live on Polymarket
Founders Fund leads
$11 million round
for Abstract L2
Runescape-like
Cambria
reaches Over $100 million ETH won in Arena duels
MyShell
- App Store for AI Consumer dApps
New “Decision Market”
MetaDAO
raises $2.2M
Aerodrome
is now the second largest DEX on Ethereum
Smort, a losless prediction market on Solana
, is launched
Tether reports record-breaking
profit of $5.2B
for H1 2024
Swaye, a memecoin prediction market
, announced closed beta
Pump.fun surpass Ethereum
in 24H revenue, Again
Privy received
a strategic investment
by Coinbase Ventures
Moonshot
, a Robinhood for memecoin, is newly launched
The
California DMV is launching its own chain
on Avalanche
Social Media Betting App
Kizzy
Announces Coming Launch on Monad
Social War Game
Duper
Raises $8.7M
Zora pairing Uniswap
, to bring secondary market onchain
Decaf
Wallet Introduces Instant USD to
$USDC
Transfers for U.S. Accounts

Curated Insights

1. Video & Podcast

2. Article & Thread

The author of this report may have personal holdings or financial interests in assets or tokens discussed herein. However, the author affirms that no transactions have conducted using material non-public information obtained in the course of research or drafting. This report is intended solely for general information purposes and does not constitute legal, business, investment, or tax advice. It should not be used as a basis for making any investment decisions or as guidance for accounting, legal, or tax matters. Any references to specific assets or securities are made for informational purposes only and should not be construed as an offer, solicitation, or recommendation to invest. The opinions expressed herein are those of the author and may not reflect the views of any affiliated institutions, organizations, or individuals. The opinions and analyses expressed herein are subject to change without prior notice. In addition, beyond the individual disclosures included in each report, Four Pillars, may hold existing or prospective investments in some of the assets or protocols discussed herein. Furthermore, FP Validated, a division of Four Pillars, may already be operating as a node in certain networks or protocols discussed herein or may do so in the future. Please see below links in the footer for FP Validated's participating network disclosures and for broader disclosure details.

Consumer Notes #1