AB Research Letter Mar'25
Greed vs Fear
AB updates are for informational purposes only. Do not construe any of the following as investment, financial, or other advice. You make your own decisions.
The AB Research Letter is a culmination of research & insights from the diverse capacity of the AB Team. Ultimately our focus & mission is financial freedom.
March 2025:
Max Pain
Comparing Tokens To Early Websites
World Liberty Financial & Positive Regulation
YLDS: The First SEC-Registered Yield-Bearing Stablecoin
AB Portfolio
Max Pain
Shits ugly. No avoiding it. A major part of investing is mastering emotions.
Bitcoin has corrected from $109K to $78K. This is the 30% drawdown that comes every bull market. A tough pill to swallow.
More liquidations on BTC than either major bear market catalyst from last cycle. Impressive. I don’t even want to look at ETH or Alts. Leverage is a dangerous game.
As prices go down, investor sentiment changes quickly. A few months ago we were talking about super cycles and now it is Extreme Fear. The pendulum swings.
When you’re scared to buy, it is probably the best time to. Investing is fighting against human emotions. The Fear & Greed index is at levels not seen since June 2022. That was a good time to buy. Will history repeat itself?
At the end of the day you’re in control. If you were buying a few months ago, and not now - what changed? The asset you wanted got cheaper? Cheaper prices usually mean less risk.
We’re in it for the long run. Position your portfolio so you are as well.
AB Researcher: Whitetail
Comparing Tokens To Early Websites
Emerging technologies go through phases where early adopters recognize its potential, while skeptics dismiss it as a fad. The internet in the 1990s was one such revolution, and today, the world of blockchain-based tokens finds itself in a similar position.
The 1990’s internet had websites that were static and gimmicky, sometimes visually flashy but lacking real functionality. Many companies launched websites simply because it was "the thing to do," even if they had no clear use case. The same can be said of many tokens today: they are created, marketed, and traded, but only a few have real-world utility. Just as websites evolved from static pages into the foundation of e-commerce, social media, and digital finance, tokens will likely evolve beyond speculation into tools for digital economies.
The 1990s saw an explosion of websites as businesses rushed to stake their claim on the World Wide Web. However, most early websites were little more than digital brochures—offering basic information but no real interactivity. Early websites include:
The Space Jam Website (1996): One of the most famous examples of an early website that still exists today. It was a simple promotional page for the movie, featuring low-resolution images, text, and some basic animations.
Pets.com (1998-2000): A classic example of the dot-com bubble, Pets.com raised millions by selling pet supplies online but failed due to poor logistics and an unsustainable business model. Now look at Chewy.com
Yahoo! (Founded 1994): Initially just a directory of links, Yahoo! provided a way for users to navigate the growing internet but had limited functionality compared to modern search engines.
At the time, skeptics questioned whether websites could ever become truly valuable. Many thought the internet was just a passing trend—until businesses like Amazon and eBay emerged, proving that digital platforms could reshape entire industries. For example in 1999 the number of worldwide internet users grew to 150 million, with more than half residing in the United States.
Today, crypto tokens are in a similar state. Many exist purely for speculation, with little inherent utility beyond hype. Consider:
Fartcoin & Dogwifhat (Memecoins): Just as the 1990s had gimmicky websites with no real business model, the crypto world has an abundance of joke tokens (shitcoins!) created purely for speculative trading.
Uniswap’s UNI Token (2020): UNI was airdropped to early users of Uniswap and quickly became a novel distribution method, but its primary utility—governance—remains underutilized. Many holders treat it more like a speculative stock than a functional governance tool.
Filecoin (2017 ICO): Initially promising decentralized storage, Filecoin raised $257 million but struggled for years to deliver a product, much like how many dot-com startups failed to execute.
Like early websites that evolved into successful companies, some tokens are beginning to show real-world utility. As the internet matured, websites transitioned from static pages to interactive platforms that transformed business, media, and communication. Milestones in website evolution were:
E-commerce (Amazon, eBay, PayPal) – Enabled people to buy and sell goods online.
Search & Navigation (Google, Yahoo, AltaVista) – Made the internet usable by organizing information.
Social Interaction (MySpace, Facebook, Twitter) – Turned websites into places for communication.
User-Generated Content (Wikipedia, YouTube, Blogs) – Shifted the internet from passive consumption to active participation.
This shift made websites indispensable. Tokens are on the brink of a similar transformation, where they could evolve beyond speculation into critical financial infrastructure. The future will be built on Ethereum.
Stablecoins as the First True Use Case
Real-World Asset Tokenization (RWA)
Tokenized real estate, stocks, and commodities could turn blockchain into the infrastructure of global finance.
Companies like Franklin Templeton are already issuing tokenized treasuries. Franklin OnChain U.S. Government Money Fund is a tokenized fund investing in U.S. government securities.
…about to hockey stick… Governance & Protocol Revenue Models
MakerDAO’s MKR Token: Early experiments in protocol governance and buybacks, paving the way for more sophisticated token utility.
Aave (AAVE): Aave started as a decentralized lending protocol, allowing users to lend and borrow assets without intermediaries. AAVE holders can vote on protocol upgrades, risk parameters, and new asset listings.
Non Fungible Tokens (NFTs)
NFTs like Ethereum Name Service (ENS) changed how people read and interact with blockchain addresses. Changing from 0x... to ab1.eth
NFTs like Crypto Punks became a way for crypto enthusiasts to create a "community" of people on the internet with similar profile pictures.
Other projects like Uniswap incorporated NFTs into their protocol to represent a "position" such as an LP position in a liquidity pool.
Similar to how websites became more than digital billboards, tokens will become the backbone of decentralized financial systems.
For both the internet and crypto, mainstream adoption is driven by three key factors: regulatory clarity, corporate adoption, and financial innovation.
Regulation: The Wild West to Austin in 2025.
The early internet had minimal regulation, leading to fraud and excessive speculation (dot-com bubble).
Crypto today faces similar growing pains—FTX’s collapse was reminiscent of early internet scams.
MiCA in Europe & U.S. SEC guidance are beginning to provide clarity, just as financial regulations did for internet commerce in the 2000s.
Corporate Adoption: Legitimacy Through Big Players
When companies like Microsoft, Amazon, and Netflix started using the internet for business, it signaled legitimacy.
Today, BlackRock, Fidelity, and Visa integrating crypto signals a similar shift.
Financial Innovation: The Turning Point for Crypto
The launch of Bitcoin and Ethereum ETFs mirrors the moment when Wall Street embraced online trading platforms.
…when fidelity asks for ETH staking, everyone listens… Tokenized bonds, stocks, and RWAs could be the crypto equivalent of when financial services moved online.
The lesson? The internet’s legitimacy was cemented when finance embraced it. The internet’s growth surprised many—Crypto will do the same. Will you recognize the transformation as it happens?
AB Researcher: @L2explorer
World Liberty Financial’s Crypto Portfolio
World Liberty Financial (WLFI), a project associated with the Trump family, has experienced significant financial setbacks, with its cryptocurrency portfolio incurring losses of approximately $110 million. Initially, WLFI invested around $336 million across nine digital assets, which have since depreciated to a combined value of about $226 million. Notably, Ethereum (ETH) constitutes 65% of WLFI's holdings and has been the primary contributor to these losses. The firm acquired ETH at an average price of $3,240 per token; however, the current market price has declined to just below $2,000, leading to substantial unrealized losses.
Despite these challenges, WLFI remains committed to its long-term investment strategy in the cryptocurrency sector. The company has continued to augment its digital asset portfolio, purchasing additional ETH and Wrapped Bitcoin (WBTC) tokens even amid market downturns. This approach underscores WLFI's belief in the enduring value and potential of blockchain technology. Investing in ETH shows a belief in mass adoption of decentralized blockchain technology across many sectors.
Don’t forget, the United States is now “The Crypto Capital of the World.”
OCC Regulatory Clarity
The Office of the Comptroller of the Currency (OCC) just made a major move that could accelerate crypto adoption in a big way. They’ve updated their guidance, making it easier for banks to offer crypto-related services without needing special approval. Previously, banks had to get regulatory sign-off before providing things like crypto custody or holding reserves for stablecoins. Now, as long as they follow proper risk management practices, they can move forward without additional red tape. This change removes a significant hurdle that’s been slowing down traditional financial institutions from fully integrating crypto into their services.
This is a big win for the industry because it paves the way for wider mainstream adoption. When banks start offering crypto services directly, more people will have secure and regulated ways to access digital assets—without needing to rely on less established platforms. It also signals growing acceptance of crypto within the broader financial system, making it more attractive to institutional investors and businesses. With this regulatory shift, crypto is taking another important step toward becoming a standard part of global finance.
AB Researcher: Alec Beckman
YLDS: The First SEC-Registered Yield-Bearing Stablecoin
A new kind of stablecoin just hit the markets and its implications are massive. For years, USDT and USDC have dominated the market, quietly earning billions in yield on reserve assets while holders recieved none of it. Tether, the company behind USDT, was estimated to be the most profitable company in the world per employee. However their lucrative model may not last much longer.
Enter YLDS, the first-ever SEC-registered, yield-bearing stablecoin announced by Figure Markets on February 20th, 2025, launched on the Provenance Blockchain. Unlike its predecessors, YLDS actually distributes yield to holders—paying out at SOFR minus 50bps, backed by prime money market funds. For U.S. investors and institutions, it’s the first yield generating, stable, AND regulated digital dollar that actually works like a financial asset.
But this is bigger than just another stablecoin.
YLDS is a registered security—the first of its kind in the U.S. The SEC approval process was a hajj, but now Figure has something unique: a compliant, yield-generating stable asset that U.S. banks, institutions, and individuals can hold. The implications are massive. Stablecoins are already a $200B+ asset class, but none have provided U.S. investors with compliant access to yield—until now.
Why does this matter?
Banks & TradFi can actually use it – Unlike USDT/USDC, U.S. banks and institutions can hold YLDS without compliance issues.
Programmable Yield – YLDS offers a seamless way to earn a regulated, transparent return on cash held onchain.
Collateral in DeFi & TradFi – YLDS can become the preferred collateral for both onchain and off-chain financial applications.
24/7 Liquidity – Unlike money market funds or tokenized treasuries, YLDS can be transferred peer-to-peer at any time.
Figure’s CEO Mike Cagney described it best: “We see tremendous applications for YLDS—exchange collateral, cross-border remittances, and payment rails are just the beginning.”
This isn’t happening in a vacuum. YLDS is part of a massive wave of Provenance Blockchain adoption in the past few weeks:
HELOCs on Provenance Blockchain – Figure, founder of Figure Market and Provenance Blockchain, are now underwriting 15-20% of all US home equity lines of credit (HELOCs) onchain.
$200M Investment from Sixth Street into Figure’s DART Lien Registry, which is already backed by Goldman Sachs, Jefferies, and Deutsche Bank.
Infineo surpassing $500M in tokenized life insurance TVL—a record-breaking move for onchain RWAs.
Provenance is quietly leading the RWA race while other chains fight for attention. If HASH (Provenance’s native token) lands on CEXs, as I predicted in January, its market cap could soar past $10B.
YLDS isn’t just another stablecoin—it’s a blueprint for the future of onchain finance. The question is no longer if or when stablecoins will evolve, but who will be left behind when they do.
AB Researcher: Jackson Blau
AB Portfolio
Disclaimer: Our buys/watchlist should not be taken as financial advice/investment suggestion. We share this information in the nature of education & transparency. We value the ability for our network to be aware of new projects & ecosystems we’re actively researching, participating & investing in. Always invest responsibly. And remember… Fundamentals > Pumpamentals !!
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AB Researcher: Rocketpilot
AB updates are for informational purposes only. Do not construe any of the following as investment, financial, or other advice. You make your own decisions.
Fantastic article!