Happy Thursday!

In today's Daily, Notcoin launches a new Telegram game, spot Bitcoin and Ethereum ETF flows fail to impress, Morpho Labs raises $50 million, and more.

Meanwhile, the Montenegro appeals court rules that Do Kwon will be extradited to South Korea.

Notcoin launches new 'Lost Dogs' Telegram game

Notcoin has launched a new Telegram game called "Lost Dogs," integrating NFTs, NOT tokens, and a new in-game currency, WOOF.

• The game is a collaborative effort with TON social projects team Lost Dogs Co and the NFT trading platform Getgems.
• Notcoin rose to prominence, becoming the first Telegram game to pioneer the tap-to-earn model, capturing the attention of a claimed 35 million players.
• Players can earn in-game currency through a simple button press, which later led to a $1 billion NOT token airdrop on the TON blockchain.
• The new free-to-play game features a dog-themed quest where players join communities or "squads," invite new players, and influence their dogs' actions.
• Characters in the game are represented by Lost Dogs NFTs launched in March 2023, which evolve and gain powers as the story progresses.
• Players earn Notcoins and can mine WOOF tokens by participating in daily decisions that affect the game's narrative. The game will run for six weeks.

US spot Bitcoin and Ethereum ETFs flows fail to impress

U.S. spot Bitcoin ETFs recorded a mere $299,000 in net daily inflows on Wednesday.

• Grayscale's new mini spot Bitcoin ETF (BTC) and BlackRock's IBIT logged substantial net inflows of $18 million and $21 million, respectively.
• Spot Ethereum ETFs saw net outflows of $77.2 million, adding to a total of $483.6 million in net outflows since trading began last week.
• Grayscale's converted ETHE fund continued to dominate outflows in other spot Ethereum ETFs, with a notable $133.3 million in net outflows on Wednesday.

Ribbit Capital leads $50 million raise for Morpho Labs

Venture firm Ribbit Capital led a $50 million funding round for decentralized lending developer Morpho Labs, with participation from Coinbase Ventures, Brevan Howard, and Kraken Ventures.

• Morpho Labs previously raised funds from Pantera Capital earlier this year and $18 million in 2022 from Andreessen Horowitz and Variant.
• Morpho Labs' initial product, Morpho Optimizer, improved interest rates for users on Aave and Compound, now serving as an independent financial infrastructure layer, according to co-founder Paul Frambot.
• Morpho Labs' latest product, a decentralized lending protocol called Morpho Blue, launched last October, amassing over $1.5 billion in total value locked as of July 30.

Riot Platforms buys more Bitfarms shares despite Q2 losses

Riot Platforms reported a widened net loss of $84.4 million in Q2, compared to losses of $27.4 million last year.

• Riot produced 844 BTC in Q2, down 52% year-over-year, despite nearly doubling its installed hash rate.
• The reduction was attributed to the halving event in April and an increase in network difficulty.
• Riot purchased 10.2 million Bitfarms shares in July, worth around $26 million, increasing its holdings in the Bitcoin mining rival to 15.9%.

Kamala Harris' improving election chances could hurt bitcoin, analyst says

According to analyst Ruslan Lienkha, Bitcoin's price might suffer if Kamala Harris' election chances improve.

• Concerns about stricter cryptocurrency regulations from a Democratic administration could lead to decreased investor confidence in Bitcoin, particularly with Harris gaining momentum in swing states.
• Online prediction market PredictIt shows Harris as a marginal favorite to win in November, while Donald Trump leads in presidential election odds on the decentralized Polymarket platform.

In the next 24 hours

U.S. nonfarm payroll data are due at 8:30 a.m. on Friday.

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