🤔Trump: ‘Crypto Strategic Reserve’

☀️Good morning. It's Monday, Mar. 3, and we're covering, DeepSeek Claims AI Cost-Profit Ratio Of 545%, Raising Industry Questions, China’s Honor Pledges $10 Billion AI Investment, European Leaders Push Ukraine Peace Plan To Secure U.S. Backing, and much more. First time reading? Sign up to get this newsletter: Sign up here. 

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MARKETS

Cryptocurrency Prices by Market Cap

• The global cryptocurrency market cap today is $3.04 Trillion, a 7.22% increase in the last 24 hours.

• The total crypto market volume over the last 24 hours is $197.97B, which makes a 185.95% increase.

• The total volume in Defi is currently $12.41B, 6.27% of the total crypto market 24-hours.

• The volume of all stablecoins is now $180.83B, which is 91.34% of the total market 24-hour volume.

• Bitcoin’s dominance is currently 60.10%, an increase of 0.03% over the day.

Trump Calls For A U.S. ‘Crypto Strategic Reserve’

President Donald Trump has publicly backed the creation of a federal reserve of cryptocurrency assets, initially naming XRP, Solana (SOL), and Cardano (ADA) as key holdings before later adding Bitcoin (BTC) and Ethereum (ETH) to the list. “A U.S. Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration. I will make sure the U.S. is the Crypto Capital of the World.”Trump’s endorsement builds on an executive order he issued in January, which directed a Presidential Working Group to explore a national digital asset stockpile. The group was tasked with proposing criteria for a reserve that could include assets lawfully seized by the government. (Read Deeper)

BUSINESS & FINANCE

DeepSeek Claims AI Cost-Profit Ratio Of 545%, Raising Industry Questions

Chinese AI startup DeepSeek has disclosed revenue and cost data for its V3 and R1 models, claiming a theoretical daily cost-profit ratio of 545%. However, the company clarified that actual revenue is significantly lower due to varying monetization strategies. DeepSeek’s efficiency claims contributed to AI stock sell-offs in January, as investors questioned whether U.S. firms need to spend billions on high-end chips.

Takeaways: DeepSeek claims it trained its AI models on Nvidia H800 chips, spending under $6 million—far less than OpenAI and other U.S. competitors. The H800 chips are less powerful than those used by leading U.S. firms, raising questions about the necessity of massive AI chip spending. Over $200 million, though actual earnings are lower due to free services and discounted off-peak pricing. (Read Deeper)

Xi Unveils China’s Biggest Stimulus In Decades As U.S. Trade War Escalates

As China’s National People’s Congress (NPC) convenes, President Xi Jinping is set to announce a major economic stimulus package to counter the impact of Trump’s escalating tariffs and drive 5% GDP growth. The government will raise the official deficit target above 4% of GDP, injecting trillions of yuan into the economy. Trump’s 10% tariffs on Chinese goods take effect just before the NPC, intensifying U.S.-China tensions. China is preparing for prolonged trade tensions, taking a measured approach to stimulus while keeping financial risks in check.

Takeaways: A 2 trillion-yuan sovereign bond program will fund high-tech manufacturing, AI, and EVs, shifting China away from its traditional property-driven growth model. With exports under threat, Beijing aims to stimulate spending and support businesses to offset economic pressures. Yuan stability remains a priority, with Beijing resisting devaluation to avoid worsening trade frictions. AI and high-tech manufacturing will drive future growth, with analysts predicting China’s AI sector could boost GDP by 0.3 percentage points by 2030. (Read Deeper)

TECHNOLOGY & SCIENCE

China’s Honor Pledges $10 Billion AI Investment

Chinese smartphone maker Honor announced a $10 billion investment in artificial intelligence over the next five years, aiming to transition from a smartphone brand to an “AI device ecosystem company.” The company, which spun off from Huawei in 2020, is looking to expand internationally and compete in the high-end market dominated by Apple and Samsung.

Takeaway: Honor is strengthening its ties with Google, incorporating Google’s Gemini AI into its devices and collaborating with Qualcomm on an AI-powered digital assistant. Integrate AI into its hardware and develop next-generation AI agents (advanced virtual assistants). Build a platform for AI-powered devices that work across multiple brands. Prepare for the Artificial General Intelligence (AGI) era. Honor committed to seven years of Android OS and security updates for its flagship Magic series. (Read Deeper)

Flashes: A Decentralized Instagram Alternative Built On Bluesky

Flashes, a new photo-sharing app built on the Bluesky network, has officially launched on the App Store, amassing 30,000 downloads in its first 24 hours. Developed by Berlin-based creator Sebastian Vogelsang, Flashes offers an Instagram-like experience with unique features that emphasize customization and decentralization. Similar to Instagram but within an open network.

Takeaways: Flashes is built on the AT Protocol, meaning posts can be seen across Bluesky’s 32M+ user base, increasing reach beyond just the Flashes app. Users have access to 50,000+ curated feeds on Bluesky, allowing them to control their content discovery. Part of a larger movement toward decentralized social platforms leveraging Bluesky’s infrastructure. (Read Deeper)

AROUND DE WORLD & POLITICS

European Leaders Push Ukraine Peace Plan To Secure U.S. Backing

European leaders, led by UK Prime Minister Keir Starmer, have agreed to draft a Ukraine peace plan to present to the United States, aiming to ensure continued U.S. support amid growing uncertainty over President Donald Trump’s stance on the war. The move follows Zelenskiy’s tense clash with Trump, raising fears that Washington might sideline Kyiv in peace negotiations with Moscow.

Takeaways: At a London summit, leaders including France’s Emmanuel Macron and EU Commission President Ursula von der Leyen pledged to increase defense spending and position Europe as a stronger security player. The plan could include: A one-month ceasefire (excluding ground combat), A European peacekeeping force if a broader agreement is reached and A U.S. security guarantee to deter Russia. Trump has previously criticized Ukraine, suggested Kyiv started the war, and engaged in talks with Russia without including European leaders. (Read Deeper)

Ex-Barclays CEO Staley Fights UK Ban Over Epstein Ties

Former Barclays CEO Jes Staley is appealing a UK financial industry ban over alleged misleading statements about his relationship with Jeffrey Epstein. Staley denies wrongdoing, arguing the FCA unfairly decided the case without allowing him or Barclays to explain the letter’s approval process. His appeal will include testimony from high-profile finance figures, including Bank of England Governor Andrew Bailey and Barclays Chair Nigel Higgins.

Takeaways: The FCA seeks to ban Staley from senior roles and fine him £1.8 million ($2.3 million). The case centers on a 2019 Barclays letter to regulators, allegedly misrepresenting Staley’s last contact with Epstein. The FCA cites 1,200 emails where Staley called Epstein a "profound" friend and "family". JPMorgan, where Epstein was a major client, may participate, as some evidence implicates the bank’s employees. (Read Deeper)

ENTERTAINMENT & SPORTS

Man United’s FA Cup Exit Highlights Club’s Decline Under Amorim

Manchester United crashed out of the FA Cup, losing to Fulham on penalties at Old Trafford. Despite Bruno Fernandes' late equalizer, United failed to capitalize, with Victor Lindelof and Joshua Zirkzee missing in the shootout, allowing Bernd Leno’s heroics to send Fulham into the quarter-finals. United’s only path to redemption lies in the Europa League, where failure against Real Sociedad could make this one of the worst seasons in club history. (Read Deeper)

Gene Hackman And Wife’s Deaths Under Investigation As Friends Express Shock

Oscar-winning actor Gene Hackman and his wife, Betsy Arakawa, were found dead in their Santa Fe home, leaving friends and investigators searching for answers. While authorities say there are no immediate signs of foul play, the circumstances surrounding their deaths remain “suspicious enough” to warrant a thorough investigation. Close friends Daniel and Barbara Lenihan said the couple appeared healthy during their last meeting. Authorities continue to piece together the events leading to their deaths, analyzing cell phone records, planners, and household items. (Read Deeper)

PODCAST(WHAT WE ARE LISTENING TO)

• Claude Shannon, an American mathematician and electrical engineer, is widely regarded as the father of the digital revolution. In 1937, at the age of 21, Shannon introduced the concept of applying Boolean algebra to electrical circuits in his master's thesis at MIT. (Listen)

EXTRA BREVITI

• The privacy-focused messaging app Signal has surged to the top of the Dutch app charts, with downloads skyrocketing by 958% since December 2024. (Read More)

• Mark Cuban Offers to Fund Ex-Government Tech Unit After Sudden Layoffs. ( Read More )

• SoftBank Seeks $16 Billion Loan to Double Down on AI Investments. (Read More)