Wallet 1 mystery: who is buying KAS?

Hey, welcome to Kaspa Daily Pulse, here's what the Kaspa community's been buzzing about today.

First up, price and mood. Kaspa spent the day retesting lows, and people were openly wondering whether we'd hold the last lows or make new ones. The thing folks kept pointing to is that the bulls defended 3 cents, and someone flagged about 92 million KAS in one-hour volume on Bybit USDT spot during that dump. Later in the day KAS was up around 3% while BTC was down about 1%, and the KAS/BTC chart looked sideways to some people, which they called fuel for up. Predictions are all over the place. One person said an end of year close of at least 8 cents, another said a month close around 3.9 cents, helped by the fact that November has been green for Kaspa in the past. And one more person said that topping at 8 cents would honestly feel like success at this point. A few holders were also venting about missing the 5 cent area and watching gains round trip.

Second, the Wallet 1 debate. People are still fixated on that big buyer. The talk was that Wallet 1 increased volume and frequency under 5 cents, and one theory is that once the buying stops, or the wallet gets revealed, price could head to all time highs within a month. Others, half joking, called it a trojan horse that's keeping price down. Nobody actually knows who it is, so take that one as pure speculation.

Third, and this was the most substantive thread: the Kaspa decentralized dollar and whether stolen funds could taint it. Someone asked what happens if stolen KAS gets washed into it. The worry was that exchanges might start blocking deposits of mixed coins. The counterpoint was that overcollateralized stables don't scale by design, with one person saying we'd be lucky to reach 10 million. Then someone pointed to Moria and MUSD on Bitcoin Cash, where collateral sits in individual loan UTXOs. So opening one position with tainted coins doesn't merge that taint into everyone else's collateral. The takeaway: the KAS inside Kaspa dollar wouldn't be tainted. It's also still a design choice, whether you handle it at the core or let actors handle it, and it's unclear whether the covenants will be separate. Zero knowledge proofs and more elaborate covenant designs were mentioned as options.

Fourth, the fundamentals reality check. One holder said it plainly: Kaspa needs apps that people actually use. Another added that with Kaspa's emissions, the security budget becomes a concern if activity doesn't show up. A pasted AI take said the same thing: demand is still the bottleneck, and fees remain a tiny fraction of miner revenue. On the flip side, folks said that holding Kaspa lets them sleep, and called the risk to reward juicy.

And finally, a quick macro note. Stocks were recovering after a rough patch, with some saying it's the AI trade bouncing back. There was also a report that Russia's central bank approved retail trading of Bitcoin, Ethereum, and USDT, though with a limit of about 3K dollars per year.

That's it for today's pulse. Let's see what tomorrow brings. Catch you then.