As the blockchain industry continues to grow, the need for efficient and scalable solutions is more important than ever, especially in areas like supply chain management and asset tokenization. Since its launch, IOTA has set itself apart by surviving in the challenging crypto landscape, where many projects from 2015 have failed. IOTA has continuously adapted to meet market demands. While traditional blockchain platforms often face scalability and high transaction fees, IOTA has become a transformative force by providing a decentralized foundation for smooth data and value exchange.

Initially focused on Internet of Things (IoT) applications, IOTA has evolved to introduce the Move programming language for its Layer 1 solution, further enhancing its capabilities. This flexibility allows IOTA to tackle ongoing challenges in the industry, such as interoperability and operational efficiency. With nearly a decade of development and several real-world use cases, IOTA is now the third Move Layer 1 solution next to Sui and Aptos, featuring strong tokenomics and attractive staking annual percentage yields (APY). The project is committed to creating a decentralized framework that empowers businesses and developers, making it an important player in the blockchain space.

This month’s review will explore IOTA’s various product features, including IOTA Rebased and the dedicated team behind the project, and delve deeper into its strengths and potential challenges in the rapidly changing blockchain ecosystem.

What is IOTA and IOTA Rebased

Since its inception, the IOTA Foundation has been dedicated to pioneering innovative alternatives in the blockchain space, moving away from practices that proved inadequate. Central to IOTA’s evolution is its unique technical foundation, originally characterized by a scalable, parallelized ledger that set it apart from other Layer 1 solutions. This commitment to innovation has culminated in the launch of IOTA Rebased, a transformative protocol designed to accelerate the introduction of programmability and full decentralization into the IOTA ecosystem. By transitioning from a UTXO-based model to an object-based ledger powered by the Move VM, IOTA Rebased unlocks advanced programmability and scalability, enabling sophisticated applications such as DeFi, tokenized assets, and supply chain systems.

IOTA Rebased is born out of the need for reliable blockchain infrastructure that “just works,” addressing scalability, efficiency, and programmability gaps. The integration of MoveVM alongside Ethereum Virtual Machine (EVM) creates a dual smart contract ecosystem, enabling seamless development across both platforms while enhancing cross-chain interoperability. Leveraging nearly a decade of experience, IOTA has optimized the Move programming language — used by leaders like Sui and Aptos — to achieve greater decentralization, security, and throughput of over 50,000 transactions per second (TPS) with sub-500ms confirmation times.

This positions IOTA as a scalable and programmable blockchain infrastructure that meets the needs of modern developers and enterprises. Furthermore, features such as staking rewards (up to 10–15% APY), fee-burning mechanisms for economic stability, and feeless-sponsored transactions ensure robust network engagement and sustainability. With these advancements, IOTA Rebased not only enhances its ecosystem but also establishes itself as a formidable competitor capable of surpassing Sui’s and Aptos’s performance while maintaining fair tokenomics and real-world utility.

Overview of Features of IOTA Rebased include:

• Programmability: The introduction of move-based smart contracts on a parallelized, DAG-based ledger, enabling advanced application development.
• High Throughput & Low Fees: Achieving transaction speeds of over 50,000 transactions per second with negligible fees, complemented by a fee-burning mechanism for long-term economic stability.
• Staking Rewards: Competitive annual percentage yields (APY) of up to 10–15% for token holders who secure the network, fostering engagement and community growth.
• Decentralization: Transitioning to a Delegated Proof of Stake (DPoS) mechanism, with plans to scale up the validator count from 40–50 at launch to 150, ensuring a robust decentralized network.
• Real-World Adoption: IOTA’s partnerships and projects include digitizing supply chains and tokenizing yield-bearing assets, paving the way for enhanced financial ecosystems and asset management.

Following the successful community vote in December 2024 in favor of IOTA Rebased, the stage is now set for the protocol upgrade, marking a pivotal step in the evolution of the IOTA network. This initiative not only signifies a commitment to creating substantial value for token holders but also sets the stage for IOTA to further integrate real-world assets and applications.

Recent Partnerships and Community Initiatives

IOTA has established itself as a trusted partner in driving real-world blockchain applications through strategic collaborations with governments, enterprises, and global organizations. In Europe, the IOTA Foundation plays a pivotal role in initiatives such as the European Blockchain Services Infrastructure (EBSI) and the European Blockchain Sandbox. These projects have focused on developing solutions like digital product passports and intellectual property rights management, showcasing IOTA’s ability to comply with stringent regulatory requirements while addressing sustainability challenges. Additionally, IOTA has partnered with organizations like the World Economic Forum and the Tony Blair Institute to revolutionize global trade through its Trade and Logistics Information Pipeline (TLIP). By enabling real-time data sharing and reducing administrative overhead, TLIP has been adopted in countries like Kenya and is expanding to the UK and UAE, demonstrating IOTA’s effectiveness in digitizing legacy systems and fostering interoperability in international trade.

In Abu Dhabi, IOTA is collaborating with Realize to launch the first tokenized T-Bills fund within the Abu Dhabi Global Market (ADGM), marking a significant milestone in real-world asset tokenization. This partnership leverages IOTA’s scalable architecture to tokenize U.S. Treasuries, offering new opportunities for institutional adoption and integration into decentralized finance ecosystems. The initiative aligns with ADGM’s vision of becoming a global leader in tokenized assets while adhering to stringent regulatory standards.

Beyond financial applications, IOTA has co-financed sustainability projects such as EnergieKnip in the Netherlands, incentivizing sustainable energy consumption for over 50,000 households. Similarly, its collaboration with Imperial College London on the I3-Lab focuses on circular economy solutions powered by distributed ledger technology (DLT), emphasizing recycling and reuse over consumption. These partnerships highlight IOTA’s commitment to solving real-world problems through innovative blockchain applications.

In addition to forging new partnerships, IOTA is launching the IOTA MOVEATHON, the first in a series of global hackathons spanning nine weeks and culminating in a live showcase event in Singapore on June 6, 2025.

With over $150,000 in prizes, the MOVEATHON invites participants to leverage the new Move VM to push the boundaries of decentralized innovation across four tracks.

Image Source: IOTA X Profile

Team

The IOTA Foundation, with nearly ten years of experience at the forefront of distributed ledger technology, brings together a team of 140 highly skilled professionals. Over the past decade, the Foundation has built a strong track record in innovation, research, and real-world adoption — making it one of the most experienced and respected organizations in the Web3 space.

This strong foundation of talent and experience makes IOTA uniquely positioned to execute its bold Move strategy with confidence and precision.

Analysis

Strengths:

• Established Reputation and Proven Track Record: Since its launch in 2015, IOTA has built a strong reputation as a pioneer in distributed ledger technology (DLT). Its resilience through market cycles and innovative approach, such as the adoption of Tangle technology, have positioned it as a trusted name in the blockchain space. The IOTA Foundation’s non-profit governance further enhances its credibility, particularly with institutional and governmental partners.
• Advanced MoveVM Technology: IOTA Rebased introduces cutting-edge MoveVM technology alongside EVM compatibility, creating a dual smart contract ecosystem that rivals competitors like Sui and Aptos. This innovation allows for high throughput (50,000+ TPS), low latency, and advanced programmability, making IOTA highly attractive for developers and enterprises seeking scalable solutions for decentralized applications and tokenized assets.
• Real-World Adoption and Government Partnerships: IOTA has demonstrated significant real-world utility through partnerships with governments and enterprises. Notable collaborations include tokenizing U.S. Treasuries with Realize in Abu Dhabi, digitizing global trade with the Trade and Logistics Information Pipeline (TLIP), and supporting sustainability initiatives like EnergieKnip in the Netherlands. These partnerships highlight IOTA’s ability to integrate blockchain into legacy systems, addressing tangible challenges across industries.

Challenges:

• Competitive dApp Ecosystem: The blockchain space is increasingly crowded with ecosystems offering diverse decentralized applications (dApps) and protocols. While IOTA’s technical advancements are impressive, standing out among established competitors like Ethereum, Solana, and newer entrants like Sui remains a challenge.
• Community Perception and Awareness: Educating the community about its transformation into a versatile blockchain platform capable of supporting DeFi, tokenization, and real-world asset adoption is critical. By emphasizing its tangible impact and technological advancements, IOTA can reshape perceptions and attract broader interest from developers, investors, and enterprises alike.

What’s Next for IOTA

In the coming months, IOTA aims to leverage the exciting opportunity presented by IOTA Rebased to overcome existing roadblocks and emerge as a leading global blockchain infrastructure. If adopted, IOTA Rebased would significantly enhance the utility and competitiveness of the IOTA ecosystem, providing a more efficient path than the original IOTA 2.0 plans. With Move-based smart contracts and a scalable, object-oriented ledger inspired by Sui, IOTA Rebased is set to achieve programmability and decentralization more rapidly, meeting the increasing demands from industries and developers.

Learn more about IOTA

🌐 Official website: iota.org/

🐦 Official Twitter: twitter.com/iota

📝 Blog: blog.iota.org

About Morningstar Ventures

We are a proprietary investment firm specializing in digital assets and blockchain technology.

We are a global entity but primarily based in Dubai. Under the leadership of founder Danilo S. Carlucci, our team consists of seasoned professionals with years of experience across various fields, such as technology, marketing, growth strategy, design, UI/UX, and more.

We are not only investors but also builders and have established several subsidiary projects since our inception, such as our Web3 Space 37xDubai, our consulting firm MSV Studio, our software platform Atlas Technologies, and our guild MSV GG.

Website ️| Community | Twitter | Telegram | LinkedIn | Instagram

Project Review: IOTA was originally published in morningstar-ventures on Medium, where people are continuing the conversation by highlighting and responding to this story.

Recap — session with Persistence, Nexio, and Portal

• Jeroen Develter, COO of Persistence One
• Chandra Duggirala, Founder of Portal to Bitcoin
• Jake Gordon, Co-Founder of Nexio

🎙 Listen to the full Recording 🎙

Top 3 Key Takeaways from Our Guests:

1. Bitcoin dominance is reshaping market dynamics.

The guests agreed that Bitcoin’s market dominance is strengthening — but for different reasons than in past cycles. Chandra pointed to the fundamental change triggered by ETF approvals, noting that institutional capital flowing into Bitcoin today doesn’t follow the same path as retail did in previous years. Instead of rotating into altcoins, this capital remains in Bitcoin, tightening its relationship with macroeconomic trends.

Jeroen expanded on this idea, explaining that Bitcoin is no longer just a “digital gold” narrative. With the growing presence of Layer 2s and infrastructure upgrades like Taproot, BTC is becoming the gravitational center for development. Jake emphasized that cultural perceptions have also shifted — Bitcoin is no longer a fringe asset. With governments and corporations beginning to accumulate BTC, the network is gaining legitimacy in ways that were unthinkable just a few years ago.

2. Technical maturity is powering new use cases

Beyond market sentiment, each speaker highlighted the significant leaps in technical capability across the Bitcoin ecosystem. Jeroen explained how Persistence enables secure, seamless asset swaps across the dozens of emerging BTC variants — without relying on risky bridges. Their intent-based solution creates a new paradigm for interoperability across Bitcoin L2s, improving composability and user experience.

Chandra described how Portal is solving the long-standing problem of trustless cross-chain trading. Portal enables exchange-like speed without custody or bridge-based vulnerabilities by building on atomic swaps and implementing channel factory-based scaling. Jake, meanwhile, discussed Nexio’s mission to bring familiar tooling and development environments to Bitcoin, empowering builders to deploy DeFi protocols using the Move VM and scaling frameworks typically found on more developer-friendly chains.

3. The Ecosystem is growing — quietly but powerfully

What surprised the guests most over the past year was the speed at which Bitcoin’s narrative and infrastructure have matured. Chandra acknowledged that he initially underestimated the cultural and technical impact of Ordinals and BRC-20s, which have evolved from a novelty into a major driver of attention and experimentation within the Bitcoin ecosystem.

Jake pointed to the rise of treasury strategies among publicly traded companies, highlighting that more firms are beginning to follow MicroStrategy’s playbook and treat BTC as a strategic reserve asset. Meanwhile, Jeroen reflected on the unexpected surge in Bitcoin staking and yield-generating mechanisms, particularly around the Babylon ecosystem. What once seemed incompatible with Bitcoin’s architecture — staking, DeFi, and cross-chain liquidity — is now becoming foundational for its next growth phase.

Recap: “The Future of Networking”

🎙 Listen to the full recording 🎙

Top 3 Takeaways from Our Guest:

1. Bondex is Transforming Professional Networking with Web3 Principles.

The conversation starts with Ignacio sharing his journey into the crypto world and how Bondex aims to disrupt traditional recruitment platforms, particularly LinkedIn. He emphasizes the inefficiencies in the current labor market, laden with middlemen that ultimately diminish value for talent and employers alike. Bondex’s goal is to create a decentralized professional network that empowers users to manage their identities and connections without the burdens of traditional intermediaries.

2. The Introduction of Bondex ID and Reputation Features Takes User Trust to New Heights.

Ignacio discusses the recent Bondex ID and Reputation features launch, designed to verify users and create a trust layer across platforms. These features allow individuals to aggregate their professional achievements and social presence, creating a comprehensive reputation score that enhances their credibility. Bondex aims to combat spam and fake accounts by integrating existing social media profiles, which is particularly important in the evolving digital landscape filled with bots and unreliable identities.

3. The Future of Work is Fractionalized, and Bondex is Leading the Charge.

Highlighting the changing nature of work, Ignacio asserts that the gig economy is here to stay, and users need to monetize their skills flexibly. The platform’s design facilitates this by offering various micro-task opportunities beyond typical full-time positions. With the integration of gamification mechanics, users can earn rewards while boosting their reputations, directly aligning individual contributions with community-driven economic incentives.

— — — — — —

Thanks to our guests for an insightful conversation. We host monthly Twitter Spaces Roundtables and Live Podcasts featuring inspiring individuals from across the crypto space. Follow us on Twitter to set a reminder for our next event so you don’t miss out!

Podcast — Interview: Bondex, Ignacio Palomera was originally published in morningstar-ventures on Medium, where people are continuing the conversation by highlighting and responding to this story.

As the blockchain industry expands into various sectors, it has started to complement the wellness and data industry, where users are able to leverage decentralized technology and take control over their personal health data. With global interest in health wearables on the rise, the connection between blockchain and personal health management is becoming a common focus. However, despite notable growth in wearables, a crucial gap remains: users often lack true ownership of their data and do not benefit from the rewards generated by their health activities. Seeking to address this issue is CUDIS, a portfolio company of Morningstar Ventures, which is pioneering efforts to redefine data ownership and user engagement in the wellness space.

CUDIS has developed an AI smart ring and health app designed to capture health data directly from users, facilitating daily tracking and management while empowering users to monetize and share their data responsibly. CUDIS distinguishes itself not only through its comprehensive data-tracking capabilities compared to competitors like Oura but also by introducing real-time incentives via its proprietary ring. This CUDIS ring, coupled with a personalized AI coach and app, provides users with tailored insights and motivational rewards. Apart from the ring, the CUDIS app is accessible to everyone, regardless of whether users own the ring, this ensures that anyone can benefit from a wide range of wellness data, allowing the app and data network to empower individuals to enhance their wellbeing.

This month’s review will explore CUDIS’ ring and app, the project’s growth trajectory, the team, and the integration of wearables with blockchain technology. The review will also analyze the project, assessing its strengths and potential challenges.

What is Cudis: Ring, App, and Partnerships

Since its official product launch in April 2024, CUDIS has made significant strides in the health and wellness industry, generating approximately $4 million in revenue and selling over 15,000 rings. The project has also built a robust community of 100,000 members spanning over 100 countries.

The CUDIS ring, developed by BeatBit Wellness Lab, is presented as a Web3 alternative to the popular Oura ring and Samsung ring, which have captivated the health and wellness market. Utilizing DePIN technology, the CUDIS ring enables users to monetize their anonymized health data, which are then reintegrated into the ecosystem to enhance personalized health insights.

The wellness data collected by CUDIS is encrypted and stored anonymously on the IPFS after being indexed on the Solana blockchain. This anonymized data drives the creation of customizable AI modules, which produce personalized insights into users’ mental and physical well-being.

CUDIS has built an ecosystem of products and services, including:

• Cudis Ring: An advanced smart ring that tracks vital health metrics and sports activities, providing users with personalized insights via an integrated AI coach.

• Cudis App: A free, accessible platform with social challenges and an AI coach, engaging users in fitness tracking without requiring ownership of a CUDIS ring.
• Cudis Data Network: A decentralized network that aggregates data from various wearables, ensuring user ownership and enabling secure data trading while disrupting traditional data-sharing models.
• $CUDIS Token: The governance token of the CUDIS ecosystem, managing wellness data, driving data transactions, incentivizing active participation, and ensuring equitable value distribution among all participants.

The CUDIS ring is the flagship product that enables users to track over 30 sports activities and monitor vital signs, including blood oxygen levels, heart rate variability (HRV), resting heart rate (RHR), temperature, sleep patterns, and stress indicators. With the integration of an AI coach through the CUDIS app, users receive actionable insights tailored to their wellness journey, making personal health management intimate and user-friendly.

Over a short period of time, the app has already garnered significant traction, reaching:

• 60K downloads
• 4m+ heartbeats tracked
• 300k workout sessions
• 1m+ health tips given from coaches to users
• 1b+ steps

Another feature key to the CUDIS ecosystem is the CUDIS Data Network, which integrates data from both the CUDIS smart ring and over 70 additional wearables. This network puts users in control of their digital health data, allowing for secure data trading that disrupts existing exploitative data practices. Users can thereby monetize their health data on their own terms, transforming personal insights into valuable assets. In fact, recently CUDIS launched its Data to Earn function, which allows users to own their health data with the CUDIS ring, but minting data into NFTs and earning points as users mint data.

Recent Launches and Partnerships

CUDIS has already forged some strong partnerships with UCLA Athletics, the Italian GT Championship, Padel and Fitness events, and Web3 companies World and Solana Mobile.

Recently, through CUDIS’ partnership with UCLA, they had in-game signage at a basketball game, showing the project is gaining a stronger presence outside of just the blockchain and Web3 space, and amongst mainstream audiences.

Team and Fundraising

CUDIS was founded by Edison Chen together with a dynamic team of entrepreneurs with previous experience from industry giants, including Google, Samsung, Microsoft, Binance, NextHealth, Nike, and Equinox. With roots in the crypto space dating back to 2016, this team has a history of successful ventures and exits, positioning them well to lead CUDIS in its mission to revolutionize health data ownership and engagement.

Since its inception, CUDIS has expanded its team to include a diverse group of professionals, all united by their passion for leveraging blockchain technology in the wellness industry.

Back in September 2024, CUDIS successfully raised $5 million in a funding round led by Draper Associates, with notable participation from Skybridge, Penrose, SNZ, Mozaik, NGC, Foresight Ventures, OGBC, Monke Ventures, DraperDragon, Block Patch, and Morningstar Ventures. The funding round also featured contributions from several prominent individual investors, including Sean Carey from Helium & Borderless, Kalin Stoyanchev of Render Network, Andrew Chatham from Dimo, Adam Jin of the Solana Foundation, and many others.

This recent infusion of capital aims at scaling operations, with ambitious plans to deliver over 1 million CUDIS rings within the next 18 months. The additional resources will support the project’s expansion, enhance product development, and accelerate the establishment of a consumer-centric Web3 wellness ecosystem.

Analysis

Strengths:

• CUDIS stands out in the wearable technology arena as the first Web3-enabled ring, leveraging strategic partnerships with leading mobile hardware companies like Solana and World Chain App. This innovative positioning not only enhances its market presence but also aligns it with the growing demand for greater data ownership and privacy in the health sector. As consumers become increasingly aware of their health data’s value, CUDIS capitalizes on this trend by offering an advanced solution that promotes user empowerment through personalized insights and rewards.
• Additionally, CUDIS has multiple avenues for growth, firstly, the app, which not only powers the CUDIS ring, but is available to everyone and not just ring holders, is a great opportunity for them to capture more market share as they can compete with other health apps.
• Finally, their collaborations with professional athletes and sponsorship opportunities elevate brand visibility across mainstream audiences.

Challenge:

• CUDIS could face some potential challenges in hardware development. The costs associated with producing cutting-edge technology can be substantial, and as demand increases, scalability and supply chain issues may also become critical obstacles. Moreover, educating potential users about the benefits of blockchain and the unique Web3 elements integrated into CUDIS products presents another hurdle. Many consumers are not well-versed in cryptocurrency concepts, and differentiating CUDIS from established competitors such as the Oura ring, Whoop, and the Apple Watch requires clear communication of how its blockchain foundation translates into tangible advantages.

What’s Next for Cudis

In the upcoming years, CUDIS intends to enhance its AI coaching and gamification features while advancing its decentralized infrastructure with open APIs, developer tools, and grants dedicated to health innovation. In the next 2 to 3 years, CUDIS aims to bring one million users to their platform, collaborating with partners across wellness and medical industries, and supporting AI and DeSci projects to turn health related innovations into practical solutions.

Additionally, with the rise of AI and its reliance on robust data, the team aims to inspire people to recognize the value of their health data, prioritize their well being, reduce healthcare costs, lower stress levels and enhance overall quality of life.

Learn more about Cudis

🌐Official website: https://www.cudis.xyz/

🐦Official Twitter: https://x.com/CudisWellness

🕹️Discord channel: https://discord.com/invite/cudis

✍️Blog: https://medium.com/@CudisWellness

App IOS: https://apps.apple.com/us/app/cudis/id6479181363

App Android: https://play.google.com/store/apps/details?id=io.beatbit.cudis

About Morningstar Ventures

We are a proprietary investment firm specializing in digital assets and blockchain technology.

We are a global entity but primarily based in Dubai. Under the leadership of founder Danilo S. Carlucci, our team consists of seasoned professionals with years of experience across various fields, such as technology, marketing, growth strategy, design, UI/UX, and more.

We are not only investors but also builders and have established several subsidiary projects since our inception, such as our Web3 Space 37xDubai, our consulting firm MSV Studio, our software platform Atlas Technologies, and our guild MSV GG.

Website ️| Community | Twitter | Telegram | LinkedIn | Instagram

Project Review: CUDIS was originally published in morningstar-ventures on Medium, where people are continuing the conversation by highlighting and responding to this story.

Recap: “Unlocking New Experiences for Web3 Builders & Gamers”

🎙 Listen to the full recording 🎙

Top 3 Takeaways from Our Guest:

1. Sonic SVM Celebrates A Successful TGE

Chris Zu kicked off the conversation by highlighting Sonic’s successful TGE of $SONIC, marking one of the first major launches of the year. With a market valuation of $3 billion and a current valuation of $1.8 billion, Chris shared how the team exceeded expectations despite facing market volatility shortly after the launch. He reflected on key lessons learned, including the importance of preparation and adaptability in the ever-changing crypto landscape, emphasizing that such milestones not only validate Sonic’s vision but also set the stage for future growth.

2. Harness TikTok for Community Growth and Engagement

A significant portion of the interview revolved around Sonic’s innovative approach to integrating with TikTok. Chris detailed how the platform serves as a powerful tool for building community engagement, notably through the tap-to-earn model designed to reward users for their participation. This strategy has successfully driven user acquisition, with Sonic onboarding 300,000 new wallets via airdrops in a short timeframe. Chris also emphasized the need for tailored marketing approaches across different regions, recognizing TikTok’s diverse user base and strategically tapping into various local gaming interests.

3. Build a Robust Ecosystem Through Developer Incentives

Chris further elaborated on Sonic’s commitment to fostering a vibrant developer ecosystem. Through grant programs and co-investment initiatives, Sonic aims to attract and support talented teams building on its platform. By incentivizing developers, Sonic is creating a pipeline for high-quality gaming projects that can thrive within its infrastructure. Chris underscored the importance of collaboration and innovation, stressing that developing a sustainable ecosystem capable of attracting diverse talent is essential for long-term success in the blockchain space.

Thanks to Chris and the Sonic team for sharing their insights and journey! We look forward to future developments of Sonic SVM. Join us for our next Twitter Spaces discussion to stay updated on the latest trends and innovations in Web3.

Podcast — Interview: Sonic, Chris Zu was originally published in morningstar-ventures on Medium, where people are continuing the conversation by highlighting and responding to this story.

As 2024 comes to an end, it’s time to reflect on an incredible year of growth, innovation, and milestones at Morningstar Ventures. From exciting new investments in projects to hosting unforgettable events, we’ve had a year of progress and collaboration.

Investments & Portfolio Companies

This year, we’ve been proactive in identifying and connecting with innovative Web3 projects. Thanks to the efforts of our investment team, we’ve successfully selected and supported some top ventures with our capital and expertise.

Our 2024 investments span across diverse sectors, including infrastructure, gaming, and the Bitcoin ecosystem, featuring KIP Protocol, Cudis, Lingo, Movement Labs, Sonic, PINGPONG, COTI, Tap Protocol, Gudchain, Kollectiv, Bondex, Playember, Sharpe, Allo, Merkle Trade, E Money Network, Defi.Money, Tevaera, Treat, Evedex, Nexio, Tadle, ETHgas and Synthr.

We also made big new bets via follow-on investments in existing projects such as Gunzilla Games, XION, Particle Network, and Ethernity.

• Gunzilla Games: Our flagship investment and the gaming publisher behind Off The Grid, a Web3 game making waves globally. Since its launch on PS5, Xbox, and PC, it has achieved over 11.7M users, 233 million transactions, 14.5 million blocks mined, 4 million+ Twitch watch hours, and a peak of 155,274 viewers.

• XION: An infrastructure project focused on simplifying crypto through Generalized Abstractions. With the successful launch of the $XION token this month and major partnerships, the team has laid a strong foundation for 2025. More than 4.25 million meta accounts have been created, and over 200 projects are actively building within the XION ecosystem.

• Particle Network: A modular Layer-1 blockchain platform that streamlines cross-chain interactions with universal accounts, liquidity, and gas solutions, serving over 4 million daily users across 56 chains, securing $2 billion in assets, and partnering with 60+ blockchain projects while integrating with 900+ dApps.

• Ethernity: An entertainment-focused Layer 2 blockchain platform built on Ethereum, designed to bring global entertainment franchises onto the blockchain with enhanced security, low transaction costs, and AI-driven digital rights management. It has conducted over 2.74 million transactions on its testnet and counts over 127,000 Twitter followers.

Last but not least, we have made several liquid bets on traded coins such as humans, Injective, World Mobile, Zentry, Covalent, and Biconomy.

Achievements & Initiatives

• MSV Creators: We launched a platform to connect content creators with exclusive events, deal flow, and performance analytics within the Web3 ecosystem. Learn more: here

• Podcasts Recap: In 2024, we hosted 14 Twitter Spaces, attracting more than 30K listeners. If you missed our sessions, you can visit our Spotify page here. In the meantime, feel free to check out some of our best sessions:

1. Roundtable: “How Blockchain Technology Is Shaping the Future of Gaming” with Sonic, Legend of Arcadia, and PlayEmber
2. Roundtable: “Growing the Bitcoin Ecosystem” with TAP Protocol, XVerse, and Bitfinity

Events and Conferences

Our investment team has been actively participating in and hosting events worldwide to strengthen our presence in key regions and forge connections with founders, builders, and investors. We have hosted over 8 events across 10 countries and 12 at our Web3 space 37xDubai.

• Token 2049 Series: To celebrate the crypto community’s gathering at this year’s Token 2049 conference in Dubai, we hosted a week of side events at 37xDubai, our premier Web3 venue, welcoming more than 5k attendees. See highlights: here

• Gaming Night Series: We organized two successful events (Bangkok & Dubai) centered around the Off The Grid game, bringing gamers together to play, connect, and engage. Building on this success, we are excited to announce plans for new gaming events in the near future. Check our past events: here

• Binance Private Meetup: We are proud to have hosted Binance for a private event at 37x to bring together blockchain enthusiasts and community leaders for insightful discussions and networking. Watch our event recap: here

That’s it for 2024! Thank you again for your continued support. We look forward to connecting with many new founders and our community throughout 2025.

To stay updated on Morningstar Ventures and our team, find all our social channels: ➡️ here

2024: A Year in Review was originally published in morningstar-ventures on Medium, where people are continuing the conversation by highlighting and responding to this story.

Recap: “Web3 Data - The Intersection Between AI & Blockchain”

🎙 Listen to the full recording 🎙

Top 3 Takeaways from Our Guest:

1. Covalent’s Business Remained Immune During Market Cycles

The interview started with Ganesh explaining how he and Covalent have been affected by recent market conditions, with BTC surpassing $100K. Ganesh explained that Covalent’s core API business remains immune to market cycles while their token, $CQT, experiences volatility. He also noted that Bitcoin’s unexpected surge to $100K has identified Dubai and New York as emerging crypto hubs for the future.

2. AI Agents nee Blockchain for Financial Rails and Provenance Layer

When discussing what differentiates AI and enhances personalization, Ganesh highlighted that Covalent’s vast amount of data — measured in terabytes — plays a crucial role. This data enables the establishment of financial systems and a provenance layer for AI agents. Ganesh outlined several use cases for Covalent, including wallet services, NFT management, taxation and ERP solutions, and emerging AI applications.

3. Covalent has three key roadmap items launching in Q1 2025

Ganesh concluded the talk by walking the listeners through Covalent’s upcoming roadmap. In the first quarter of 2025, people can expect significant advancements in AI agent technology from the project, along with enhanced branding and narrative positioning Covalent as a leading infrastructure solution. Additionally, the team is working on launching a novel technology called a lite client product, which is currently available on the testnet. The project is onboarding hundreds of users weekly to prepare for the final mainnet launch.

Podcast — Interview: Covalent, Ganesh Swami was originally published in morningstar-ventures on Medium, where people are continuing the conversation by highlighting and responding to this story.

The Bitcoin DeFi (BTCfi) space has seen a significant influx of players, each introducing versions of Bitcoin derivatives over recent years. Despite this growth, the sector faces a critical challenge: liquidity fragmentation among numerous Bitcoin variants (WBTC, cbBTC, sBTC, etc.). This issue is a significant barrier to BTCfi’s development, as the complexity involved in swapping between different BTC variants contributes to a fragmented ecosystem.

BTCfi, composed of many Layer 2 protocols, sidechains, lending platforms, and innovative yield-generating mechanisms, aims to enhance Bitcoin’s scalability and programmability. Doing so enables the creation of decentralized financial applications on Bitcoin’s robust security framework. This has led to a need for interoperability, as it would solve the complex environment for swapping BTC derivatives, hindering BTCfi’s potential. Resolving this core issue could help the industry grow into an estimated market worth over $250 billion, similar to Ethereum’s DeFi market share.

Focused on expanding the Bitcoin ecosystem and addressing liquidity fragmentation is Morningstar Ventures’ portfolio company Persistence One, a project building a BTCfi Liquidity Hub to unify liquidity across Bitcoin Layer 2s and BTC variants. By reducing liquidity fragmentation, Persistence establishes itself as the BTCfi Liquidity Hub. It enables fast, near zero-slippage swaps for its native token $XPRT and $ BTC-related assets on the Persistence DEX.

This month’s review will cover Persistence, its recent closed beta testnet launch, various product features, its team, and more. The review will also end with an analysis of the project and outline its strengths and challenges.

What is Persistence — Products & Ecosystem

Persistence V1, Persistence’s flagship DEX, has been live for almost 2 years and has been built up as the center of BTCfi Liquidity. It continues to build liquidity for XPRT, BTC, and other BTCFi-related tokens (such as projects building on top of Babylon). Persistence V2, on the other hand, which will be connecting to V1, aims to address Bitcoin’s liquidity fragmentation by enabling fast and no-slippage cross-chain swaps for all BTC-related assets. This helps unify BTC liquidity and promotes greater ecosystem efficiency. This product aims to provide a seamless experience for users who exchange various BTC derivatives and related assets.

The core technology driving this innovation is “intents,” which allow users to specify the desired outcome of a transaction without determining the execution path. This approach simplifies the trading process, differentiating it from traditional automated market maker (AMM) models. Persistence One’s mission is to enhance the Bitcoin ecosystem by promoting interoperability and scalability.

Persistence as a project also aims to support a wider range of tokens, paving the way for more comprehensive decentralized finance (DeFi) applications, including integrating decentralized exchanges (DEXes) for any-to-any swaps.

Below is a full overview of Persistence’s various product offerings:

Persistence V1: XPRT, BTC & BTCFi Swaps (Live)

• A decentralized exchange platform that enables efficient trading of $XPRT and $BTC-related assets.
• Users can provide liquidity and earn from swap fees and liquidity provider (LP) rewards.
• Serves as the main liquidity hub for the $XPRT token.

Persistence Core-1 Chain (Live — soon also secured by Bitcoin)

• The foundational infrastructure underpinning the Persistence ecosystem, built on the Cosmos Tech Stack.
• The chain has been running smoothly for approximately 4 years and will be one of the first Proof-of-Stake chains secured by Babylon Bitcoin Staking.
• Provides essential features for scalability, security, and interoperability across applications.
• Supports various tools and infrastructure, including wallets and explorers, for users to interact with the ecosystem.

Persistence V2: Bitcoin Cross-Chain Swaps (Coming Soon):

• The flagship product focused on providing fast, zero-slippage swaps for Bitcoin across Bitcoin Layer 2s.
• It is powered by intents, ensuring user-friendly and secure transactions.
• Addresses the fragmentation in the Bitcoin ecosystem created by the rapid growth of Layer 2 solutions.

By partnering and integrating its solution with various projects and tools within the Web3 space, such as MetaMask, BitLayer, and the BNB Chain, Persistence aims to establish itself as a primary gateway for cross-chain BTC swaps.

Closed Beta Testnet Launch

Persistence One recently completed a phased closed beta testnet to enhance the user experience and directly address initial feedback. This structured rollout enabled Persistence to manage rising user engagement effectively while iterating on the product based on user input. Each phase is designed to ensure the platform can handle increasingly larger volumes of users, ultimately leading to a more refined and robust interoperability solution in the BTCfi space.

Despite the launch being a closed beta, the team garnered over 5K users and ample feedback, leading to a better public open testnet experience.

Token Economy

$XPRT is the native staking token of the Persistence Core-1 chain, launched in April 2021. It is designed to support the development of a DeFi ecosystem by enabling innovative use cases that extend beyond traditional DeFi primitives. The token serves to bootstrap ecosystem applications, promote network adoption, and secure the core infrastructure through staking. Stakers of $XPRT also have the opportunity to participate in governance, influencing the direction and longevity of the network.

Image Source: Persistence Website

As Persistence DEX attracts assets from different ecosystems, the Persistence Core-1 chain is positioned as an inter-blockchain communication (IBC) hub, facilitating enhanced interoperability across the ecosystem. Through its liquidity-focused architecture, $XPRT also plays a key role in bootstrapping and incentivizing liquidity for BTCfi assets across the Persistence DEX.

Team

Tushar Aggarwal founded Persistence in 2019 and has built a team of 17 strong crypto-native professionals based in Europe, the Middle East, and Asia. The team is experienced in finance and has strong business acumen.

Apart from building Persistence, the team is heavily focused on creating more awareness for BTCfi with its podcast hosted by COO Jeroen Develter. They also have an extensive educational blog that covers their product updates and discusses the BTC ecosystem.

Analysis

Strengths:

• The total addressable market for BTCfi is estimated to reach $250B+ over the next decade, meaning there is a solid market opportunity for projects like Persistence to grow within the BTC ecosystem.
• Persistence addresses a crucial issue within BTCfi and the broader Web3 space: liquidity fragmentation. By unifying liquidity across Bitcoin Layer 2s, BTC BTC-related assets and enabling seamless BTC swaps, Persistence is positioned as the BTCfi Liquidity Hub, solving one of the ecosystem’s most pressing challenges.
• The Persistence team has already been building since 2019. The team has a strong background in Web3 and crypto and has shown strength throughout the difficult bear market conditions in 2022. Their community of solid projects and various integrations with top-tier Web3 projects is also a testament to their hard work and being a promising project.

Challenges:

• Other ecosystems, such as Ethereum and Solana, build stronger products faster than the BTC ecosystem, which is often considered slow. Furthermore, Bitcoin holders are less susceptible to adopting new technologies due to security concerns and the nature of “BTC Maxis.”

What’s Next for Persistence

Persistence is gearing up for a much greater push for visibility, focusing on expanding its presence within the BTCfi ecosystem. The team is set to introduce new assets to the Persistence DEX, broadening trading options across the Bitcoin ecosystem.

Additionally, Persistence One aims to leverage its Intent-based infrastructure to support cross-chain swaps for synthetic BTC, address key liquidity gaps, and enhance user accessibility in BTCfi.

Learn more about Persistence.

🌐 Official website: persistence.one/

🐦 Official Twitter: x.com/PersistenceOne

🕹️ Discord channel: discord.com/invite/vyvp3scWnH

📖 Telegram: https://t.me/persistenceone

✍️ Blog: blog.persistence.one

About Morningstar Ventures

We are a proprietary investment firm specializing in digital assets and blockchain technology.

We are a global entity but primarily based in Dubai. Under the leadership of founder Danilo S. Carlucci, our team consists of seasoned professionals with years of experience across various fields, such as technology, marketing, growth strategy, design, UI/UX, and more.

We are not only investors but also builders and have established several subsidiary projects since our inception, such as our Web3 Space 37xDubai, our consulting firm MSV Studio, our software platform Atlas Technologies, and our guild MSV GG.

Website ️| Community | Twitter | Telegram | LinkedIn | Instagram

Project Review: Persistence was originally published in morningstar-ventures on Medium, where people are continuing the conversation by highlighting and responding to this story.

Recap: “Chain Abstraction — Elevating UX Web3 to the Next Level”

🎙 Listen to the full recording 🎙

Top 3 Takeaways from Our Guest:

1. Crypto is entering a market set-up for success

The interview starts with a quick introduction of Ethan and asks him his opinion about the current market and the aftermath of the US elections. Despite his political views, he says crypto is set up for success in the upcoming months, not just from a price perspective but also from a developer and adoption angle. More consumers are getting into the space, subsequently putting more pressure on projects to create better and more user-friendly applications for the influx of new adopters to come with the current bull market.

2. Blockchain fragmentation is getting increasingly worse for users, and chain abstraction is here to solve that

The conversation continued by focusing on Chain Abstraction and what Particle Network offers users and developers to ensure seamless UX and a less fragmented blockchain ecosystem. Ethan says that user experience could be generally better, and there is currently no flow in many projects. Users, at the end of the day, don’t care too much about which blockchain they are on; they want to make sure they can trade and access their portfolios seamlessly. Particle Network’s Universal Account solves this by allowing users to have a single account with one single balance, no matter what chain it is usually on. Hence, the experience is no longer fragmented.

3. Chain Abstraction can benefit many verticals in the future

The interview ended with a question about another top narrative, Meme Coins. Ethan expressed he initially was not a fan of meme coins but has seen that it is an excellent use-case for the industry and that many people are now ok with the fact that one of the top use cases in the web3 space is speculation — derived from mainly the meme coin boom. When asked if he thinks the meme coin narrative is overshadowing infra or chain abstraction, he said, on the contrary, that he believes chain abstraction would be an excellent solution for meme coin trading by allowing people to trade more seamlessly via one account.

Podcast — Interview: Particle Network, Ethan F. was originally published in morningstar-ventures on Medium, where people are continuing the conversation by highlighting and responding to this story.

Blockchain technology has already made a lasting impact in numerous areas within the media and entertainment industry. The sector often struggles with IP infringement, navigating a wealth of data, and royalty payments, so it has been searching for ways to integrate Web3 technologies to create more efficiency and transparency.

However, due to the often complicated nature of blockchain and difficulties with mainstream adoption, entertainment companies have struggled to embrace Web3. A company looking to bridge the gap between entertainment industries and blockchain solutions is Morningstar Venture’s portfolio company, Ethernity — a builder-friendly Layer 2, enabling global entertainment franchises to bring their intellectual property (IP) on-chain.

This month’s review will cover Ethernity, its recent mainnet launch, various product features, fundraising, and more. The review will also end with an analysis of the project and outline its strengths and challenges.

What is Ethernity?

Initially launched as an NFT marketplace, Ethernity has evolved into a comprehensive ETH Layer 2 platform featuring enhanced AI-driven security. This allows global entertainment franchises to integrate their IP on-chain. As part of the Optimism Superchain, Ethernity uses Optimism’s OP Stack to provide enterprise partners and consumers with an efficient, cost-effective, and secure experience.

The platform’s infrastructure is enhanced by Ethernity Intelligence, an AI-driven security protocol that ensures protection for digital assets on the chain. By merging scalability with AI security, Ethernity offers a solution to facilitate the entertainment industry’s transition to decentralized technology.

By leveraging its infrastructure, Ethernity positions itself as the premier choice for global brands to transition their franchises onto the blockchain. The project has already collaborated with famous names like Lionel Messi, Shaquille O’Neal, and the Muhammad Ali brand and now continues to work with notable names within the wider entertainment industry.

Since its launch, the project has gained significant traction, boasting a community of over 500K followers across its social channels and reaching 635K testnet transactions in the last 14 days.

Products

Mainnet Launch

The Ethernity Mainnet launched on October 29th, with Phase 1 involving the rollout of a Permissioned Mainnet for early development partners and flagship applications. This phase allows selected users to deploy products on Ethernity, supported by an AI-powered security layer known as Ethernity Intelligence to protect digital assets.

Several projects across various sectors, including real-world asset tokenization, decentralized finance, and Web3 ticketing, are ready to launch during this stage. Participants in Phase 1 will benefit from advanced security features and a scalable Layer 2 infrastructure for efficient and cost-effective transactions. Interested developers can apply for access, explore documentation, and join the community to get involved.

AI-Powered Copyright Protection

Ethernity Intelligence is Ethernity’s AI-driven Digital Rights Management (DRM) Protocol, developed to protect brands’ intellectual property. Designed to secure copyrights and prevent infringement, this protocol leverages AI to analyze and detect unauthorized usage of IP on-chain, offering a robust solution for safeguarding brands and licensed content.

Through similarity scoring and proactive monitoring, Ethernity Intelligence ensures that brands can bring their assets to the blockchain, knowing they are protected.

NFT Marketplace & Farmers Market

The Ethernity NFT Marketplace platform offers authenticated, licensed digital collectibles from top brands, athletes, and artists worldwide. Within the Marketplace, the Farmers Market is a unique reward protocol where users can engage in exclusive experiences, earning access to digital collectibles and real-world assets (RWAs).

The Farmers Market bridges digital ownership with physical rewards through mystery box drops, limited-edition releases, and special promotions, giving the Ethernity community tangible value alongside their digital assets.

Arcbound

Arcbound is an upcoming comic series developed with contributions from Tom Hardy, Scott Snyder, and Frank Tieri. Snyder, known for his work on Batman and Tieri, who is experienced in the Marvel Universe, will provide narrative expertise. At the same time, artists Ryan Ottley, Dan Panosian, and Ryan Smallman will handle the illustrations.

Arcbound Issue #1 will launch in comic book stores across the US in November 2024.

Fanable by Ethernal Labs

Fanable is a platform that digitizes physical collectibles and utilizes blockchain technology to ensure secure ownership. It aims to address issues like authenticity and security in the collectibles market by providing a process for tokenizing items. With a focus on mobile accessibility, Fanable allows users to trade and manage their collections and offers features such as collectible loans and exclusive drops.

The team is already running community campaigns on the Fanable X page and plans to launch the app in Q4 2024.

OxLoans

0xLoans is a peer-to-peer lending platform that operates on both Ethereum and Ethernity, allowing users to borrow and lend digital assets. The platform enables asset owners to use their holdings as loan collateral while lenders can earn interest. By facilitating direct transactions, 0xLoans aims to improve liquidity in the digital asset market and provides a decentralized option for asset utilization, catering to various users in the digital asset ecosystem.

The team is currently working towards the platform launch — also set for Q4 2024.

Token Economy — $ERN

The $ERN token is essential to the Ethernity ecosystem, supporting various platform activities. It is considered the privilege token for Ethernity’s digital asset collections, allowing users to interact with products built on Ethernity Layer 2 with reduced fees.

$ERNs features include:

• Fixed Staking: Users can lock $ERN tokens for a set period to earn rewards, which supports the network and provides additional $ERN to stakers.
• Liquidity Pool Staking: $ERN can be used in liquidity pools on decentralized exchanges. Liquidity providers earn a share of transaction fees, enhancing the liquidity and stability of the $ERN ecosystem.
• Stones Farming: Users can engage in stones farming to earn rewards through specific strategies using $ERN within the DeFi space.

Governance through DAO Voting

$ERN holders can participate in governance through a DAO, allowing them to propose and vote on decisions shaping the future of the Ethernity ecosystem. This fosters a decentralized and community-driven approach.

Team and Fundraising

The team was founded by co-founders Nick Rose (CEO) and Marcel Pham (Chief Engineer). Since its inception, the team has grown to around 20 core team members working from Los Angeles and other parts of the globe.

In March 2021, Ethernity raised $2.8M in a strategic round with participation from us at Morningstar Ventures, as well as, GBV Capital, Spark Digital Capital, Woodstock Fund, and others.

Recent Announcements and Partnerships

At the beginning of September 2024, Ethernity launched a $10 million grant program to foster innovation in the entertainment and creator economy through its Layer 2 blockchain solution. This initiative is designed to support developers, founders, and startups by providing financial assistance, mentorship, and business resources for projects that align with Ethernity’s mission to transform digital entertainment.

The program focuses on several key areas, including:

• Games and Entertainment Products
• Blockchain Infrastructure
• DeFi Tools
• Digital Assets
• Educational Outreach

People can apply globally by submitting detailed project proposals, with grant recipients gaining financial support, mentorship, technical resources, and opportunities for further investment. Learn more about the program: ➡️ here

Analysis

Strengths:

• Growing Entertainment and Media Market: The entertainment and media sector will reach $3.4 trillion by 2028. This immense market opportunity provides Ethernity with a landscape for growth and innovation. By tapping into this industry, Ethernity can leverage partnerships with iconic brands and influential figures, thus attracting a diverse user base for integrated digital experiences.
• Strong Brand Partnerships: Ethernity’s existing collaborations with renowned names like Lionel Messi and the Muhammad Ali brand position it favorably within the marketplace. These affiliations enhance the platform’s credibility and create exclusive content and offerings that can drive engagement. Moreover, such partnerships can lead to unique marketing opportunities, attracting fans and collectors who want to participate in the ecosystem.
• Diverse Product Ecosystem: The variety of products being developed by both the Ethernity team and selected third parties provides versatility to the platform. By supporting projects in gaming, entertainment, and social finance (SocialFi), Ethernity encourages creativity and innovation. This multifaceted approach ensures the platform can cater to different user needs and preferences, fostering a vibrant community of developers and users.

Challenges:

• Scalability Concerns: As Ethernity’s platform gains more traction, it may encounter scalability issues commonly faced by many blockchain networks. Ensuring consistent performance and transaction speeds as user demand grows is critical. Additionally, differentiating its Layer 2 solutions from other competing L1 and L2 networks will require strategic developments and unique value propositions that can sustain interest and usability.
• Legal and Technological Barriers in Onboarding IPs: Onboarding intellectual properties (IPs) to the Web3 space poses significant challenges due to legal complexities and technical limitations. Many IP owners may be hesitant to enter the blockchain domain due to concerns regarding copyright, ownership rights, and the implications of smart contracts. Addressing these issues necessitates Ethernity to establish clear frameworks and partnerships that simplify the onboarding process, providing reassurance to IP holders about the legality and safety of their digital assets.

What’s Next for Ethernity

The team just launched on Mainnet and will be working on onboarding new users. Furthermore, Ethernity has three projects, Fanable, Arcbound, and Oxloans, to launch in Q4 2024, further expanding the project’s ecosystem.

Learn more about Ethernity

🌐 Official website: www.ethernity.io

🐦 Official Twitter: x.com/EthernityChain

🕹️ Discord channel: discord.com/invite/ethernitychain

📖 Marketplace: marketplace.ethernity.ioAbout Morningstar Ventures

About Morningstar Ventures

We are a proprietary investment firm specializing in digital assets and blockchain technology.

We are a global entity but primarily based in Dubai. Under the leadership of founder Danilo S. Carlucci, our team consists of seasoned professionals with years of experience across various fields, such as technology, marketing, growth strategy, design, UI/UX, and more.

We are not only investors but also builders and have established several subsidiary projects since our inception, such as our Web3 Space 37xDubai, our consulting firm MSV Studio, our software platform Atlas Technologies, and our guild MSV GG.

Website ️| Community | Twitter | Telegram | LinkedIn | Instagram

Project Review: Ethernity was originally published in morningstar-ventures on Medium, where people are continuing the conversation by highlighting and responding to this story.