There are no facts, only interpretations. - Friedrich Nietzsche
Note from the CEO
2024 was a landmark year. As we approach our second consecutive year of Weekly Attestations and say goodbye to 2024, weâve weathered the wild highs and lows of the digital asset marketânavigating volatility, exploring opportunities, and finding stability amid uncertainty. While market performance took center stage externally, internally, we achieved some remarkable non-financial milestones that deserve celebration.
This year saw weddings, proposals, moves to new cities, journeys to far corners of the globe, and the opening of our first in-person office. We "10x'd" our internal tools and processes ensuring we operate with efficiency and precision. Through it all, weâve remained committed to building what we believe represents the pinnacle of digital asset management.
A heartfelt thank you goes out to our LPs and even our Weekly Attestation readers for being part of this rocketship ride while exploring a new and exciting ecosystem with us. Your trust and enthusiasm fuel our passion for what we do, and we hope that shines through in our work and performance. As always, if you have feedback or simply want to connect, please donât hesitate to reach out directly me at marcus@mjl.capital.
Iâd also like to extend my gratitude to Sean McElrath and Domenic Salvo for their unwavering partnership over these years. Their commitment to the Fund, our LPs, and each other has been nothing short of extraordinary. Through the ups and downs, weekends and weekdays, their steadfast dedication has made even the most challenging days fulfilling and meaningful. The three of us have often joked about being âcockroach strongââready to endure and rebuild, no matter the obstacles. After the apocalypse, when the acid rain clears and the Four Horsemen hang up their spurs, itâll be three resilient analysts crawling out of the rubble to start anew.
Reflecting on 2024: A Year of Milestones and Growth
2024 was transformative for digital assets marked by unprecedented milestones, political and regulatory shifts, and renewed interest. From Bitcoin's record-breaking surge to the resolution of long-standing legal battles, the industry showcased its resilience and innovation.
Bitcoin Hits Record Highs and ETF Milestones
Bitcoin was one of the undeniable stars of the year, reaching a historic all-time high of over $100,000 in late 2024. This surge was largely driven by the approval of spot Bitcoin Exchange-Traded Funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). The long-awaited approvals by major players like BlackRock and Fidelity opened the floodgates for institutional capital, legitimizing Bitcoin as an asset class and enabling broader adoption. Retail and institutional investors alike flocked to the market, cementing Bitcoinâs role as a cornerstone of finance.
The Return of NFTs and Memecoins
After a subdued 2023, NFTs and memecoins made a spectacular comeback in 2024. Iconic NFT collections such as Bored Ape Yacht Club and CryptoPunks saw renewed demand, driven by expanded utility and partnerships with major brands. Memecoins like Pepe and a newcomer, Dogelon 2.0, also surged in popularity, capturing the imagination of traders seeking explosive returns. This revival was bolstered by social media platforms integrating NFTs into user experiences, sparking a fresh wave of interest in digital collectibles.
Major Token Launches and Ecosystem Growth
Several new token launches gained significant traction, further enriching the ecosystem. Among the most notable was the expanded rollout of WorldCoin, introducing global identity verification via blockchain technology. Ethereum continued to dominate the smart contract space, with Layer-2 scaling solutions such as Base and zkSync gaining widespread adoption. The rise of real-world asset tokenization, including tokenized treasury bonds and real estate, demonstrated how blockchain is increasingly bridging the gap with traditional finance.
Political and Regulatory Shifts
Digital assets saw notable political and regulatory developments in 2024. Former President Donald Trumpâs return to office brought a new administration with positive views on digital assets. The departure of SEC Chair Gary Gensler marked the end of a contentious era for crypto regulation, with hopes for a more balanced approach under new leadership. Globally, crypto-friendly jurisdictions like Hong Kong and Dubai continued to thrive, while the EU implemented stricter oversight under its finalized MiCA (Markets in Crypto-Assets Regulation) framework.
FTX Payouts and Closing a Chapter
The long-running saga of FTXâs collapse saw resolution as creditors began receiving payouts from recovered assets. Former CEO Sam Bankman-Fried, now serving time in prison, remained a central figure in the narrative. Remarkably, asset recoveries exceeded expectations, restoring confidence among some investors. This marks a key moment in our journey toward greater transparency and accountability, highlighting the industry's capacity for self-correction.
Hacks, Rug Pulls, and Security Innovations
Despite its progress, 2024 was not without challenges. Major exploits, including a $600 million hack of a leading decentralized finance (DeFi) protocol, highlighted persistent vulnerabilities. Additionally, several memecoin rug pulls tarnished investor confidence in speculative markets. In response, security innovations, such as advanced smart contract audits and decentralized insurance solutions, gained traction, signaling the industryâs focus on mitigating risks.
Important Legal Notices
This reflects the views MJL Capital LLC (âMJLâ), but it should in no way be construed to represent financial or investment advice. Nothing in this correspondence is intended to constitute or form part of, and should not be construed as, an issue for sale or subscription of, or solicitation of any offer or invitation to subscribe for, underwrite, or otherwise acquire or dispose of any security, including any interest in any private investment fund managed by MJL. Any such offer may only be made pursuant to a formal confidential private placement memorandum of any such fund, which may be furnished to potential investors upon request and which will contain important information to be considered in connection with any such investment, including risk factors associated with making any investment in any such fund. Further, nothing in this correspondence is, or is intended to be treated as, investment or tax advice. Each recipient should consult their own legal, tax and other professional advisors in connection with investment decisions.
Domenic Salvo is a Managing Partner at MJL Capital, helping lead Portfolio Research and Investor Relations.
