Welcome to The Wise Guy,
Where we take cryptocurrency seriously, but we also know how to have a good time.
That’s why we’ve curated the crème de la crème from not one, not two, but FIVE newsletters.
MilkRoad, Defiant, Messari, Bankless, and CoinDesk Node.
Defiant’s Top Story
Following a fortnight of bullish progress driven by expectations for a Bitcoin ETF and geopolitical events, the cryptocurrency market has slowed down. The total crypto market cap fell by 4% in the past 24 hours, and numerous DeFi assets recorded significant losses.
What Happened
The crypto market’s slowdown comes after a period of consistent growth, propelled by positive sentiment around a probable Bitcoin ETF. However, the recent drop hints at a possible significant market correction. Additionally, Sam Bankman-Fried, co-founder of FTX, was found guilty on all seven charges against him and could face up to 115 years in prison.
Why It Matters
Bankman-Fried’s conviction brings the crypto industry a step closer to resolving its largest fraud scandal. When FTX was insolvent, over $7 billion in customer assets were missing, with a considerable portion since retrieved by its bankruptcy estate.
What’s Next
The Aragon Association has announced it will close and distribute $115M worth of treasury assets to ANT token holders. Control of Aragon’s intellectual property, infrastructure, and operational strategy will be assumed by the newly formed “Product Council”. In related news, PayPal has been subpoenaed by the U.S. Securities and Exchange Commission over its PYUSD stablecoin, and is cooperating with all document requests.
On The Flip Side
Immutable disclosed that a dozen web3 game developers have pledged to develop games on its upcoming Polygon-powered Layer 2, Immutable zkEVM. The GameFi sector is witnessing a revival, with four of the top ten GameFi assets gaining over 9% in the last seven days.
Read Next: Bitcoin, Ethereum, Dogecoin Mixed As Rally Hits Pause: Analyst Says Apex Crypto ‘A Brain Dead Play’ Now,
Messari’s Desk
What Happened
This week, an interview with Rashan Colbert, Head of Policy at dYdX, was conducted to discuss decentralized finance (DeFi) and its implications for policymakers. The interview explores the concept of DeFi, the role of dYdX in the space, and the advantages and risks of decentralized trading platforms. Additionally, the interview addresses the concern of illicit finance in DeFi and discusses potential policy approaches.
Why It Matters
DeFi presents a unique challenge for policymakers due to its decentralized nature and reliance on blockchain technology. As policymakers explore ways to regulate this emerging field, it is important to understand the fundamental concepts of DeFi and consider the benefits and risks associated with decentralized trading platforms. Additionally, policymakers need to find a balance between addressing illicit finance concerns and fostering innovation in the DeFi space.
What Next
Moving forward, it is crucial for policymakers to engage in further study and collaboration to develop effective regulations for DeFi. Legislation focused on stablecoins, such as the Clarity for Payment Stablecoins Act, is important to ensure the growth and stability of the crypto ecosystem. Public engagement and advocacy can also play a significant role in shaping sensible DeFi policies, as everyday Americans have the power to make their voices heard.
On The Flip Side
While DeFi offers the potential for increased transparency, safety, and fairness in the financial system, it also requires users to take on a greater level of responsibility for managing their own assets.
Policymakers must carefully consider the benefits and trade-offs of decentralization when crafting policies that govern decentralized networks. Balancing the need for regulation with the principles of innovation and individual autonomy will be key in addressing the unique characteristics of DeFi.
Bankless’ Desk
OpenSea, a leading player in the Non-Fungible Token (NFT) marketplace, disclosed on Friday that they would be letting go of half their staff due to the steady decline in the NFT market.
What Happened
OpenSea’s CEO, Devin Finzer, made the announcement, stating that the company would undergo restructuring. Once appraised at $13.3 billion during a bullish phase, OpenSea has been feeling the heat from competition, particularly from Blur, who made substantial headway with its airdrop. Industry behemoths like Yuga have also criticized OpenSea for its royalty policies.
Why It Matters
OpenSea’s choice to lay off a significant portion of its workforce is indicative of the company’s struggle to stay afloat in a liquidity market that’s rapidly drying up. With the floor prices of their top collections taking a nosedive, the company’s growth potential has been severely hampered.
What Next
OpenSea is not ready to throw in the towel just yet. According to CEO Devin Finzer, the company plans to rebuild its “operating culture, product, and tech from the ground up.” This restructuring strategy aims to breathe new life into the company’s performance, which has been waning in the face of stiff competition in the NFT market.
On The Flip Side
Even with the current market slowdown, some key players in the crypto market seem to remain unscathed. For instance, Solana (SOL) reported double-digit percentage gains, leaving BTC, ETH, and other top projects trailing in its wake.
MilkRoad SBF
THE U.S. vs SAM BANKMAN-FRIED VERDICT IS IN… ⚖️
It was a Thursday evening at Milk Road HQ when we received an unexpected text from the Milk Man: “The verdict is in…” The team immediately halted their Crypto Thursday Night Football festivities to gather around and see the next messages. Moments later, the news came in: “GUILTY! ON ALL 7 CHARGES!”
The entire place erupted with excitement. Our researchers couldn’t contain their joy and started doing backflips (who knew our nerds were so athletic?). Our office manager even ran outside and streaked down the street, while our Head of HR poured a gallon of milk on her head (no one really knows why).
And, well, it seems like our interns decided to have a little rendezvous in a closet together…
Needless to say, we’re all pretty happy over here. Crypto needs justice, and that’s precisely what we got. Sam Bankman-Fried, the reckless player who stole billions from customers, lied to investors, and tried to cover it all up, has been convicted of fraud and may face up to 115 years in prison. As my grandpa always says, “Don’t do the crime, if you can’t do the time.”
MOVE ASIDE LIQUID STAKING
Liquid staking has been the talk of the town lately. However, traditional staking shouldn’t be forgotten. Everstake is leading the way when it comes to traditional staking, offering the following benefits:
Easy setup with just 3 simple steps, along with an “Instant Stake” feature for quicker staking.
Passive management allows investors to earn rewards without actively managing their assets or claiming rewards.
Network validation is achieved by locking tokens, contributing to a stable and secure Ethereum network.
Everstake even provides instant access to unstaking funds, giving users ultimate control.
“BITCOIN’S RISK-REWARD IS IN A DIFFERENT UNIVERSE” – FIDELITY DIRECTOR
Meet Jurrien Timmer, the Director of Global Macro at Fidelity, one of the world’s largest asset managers. Jurrien recently created a risk-reward chart for various investment assets, including gold, stocks, fiat currencies, and Bitcoin. The results were striking, with Jurrien stating that Bitcoin’s risk-reward “is in a different universe.”
Despite being down 54% from its two-year high, Bitcoin is also up 84% from its low. This risk-reward potential surpasses that of government bonds and many other asset classes. You can bet we’ll be adding this information to our list of things to share with our families during Thanksgiving.
CoinDesk’s Best Story
SBF Convicted: Winners and Losers
In a quick deliberation, Sam Bankman-Fried (SBF) was found guilty on all seven charges. Damian Williams, the U.S. attorney for the Southern District of New York, sees this trial as a warning to crypto wrongdoers. Williams expressed his determination to hold fraudsters and crooks accountable, stating that the crypto industry might be new, but fraud and corruption are not. The conviction marks a significant milestone for justice in the crypto space.
Cryptos Rally: Bitcoin’s Growth and Altcoin Surges
Michael Saylor, chairman of MicroStrategy, believes that bitcoin still has a long way to go and could increase tenfold from its current levels. He emphasized the upcoming supply cut after the “halving” in 2024 and the potential changes to accounting rules, which could encourage more companies to adopt bitcoin as a treasury asset. Bitcoin saw a 14% increase this week, while meme coin PEPE jumped 76% due to a token burn. Other notable gains include LINK, Injective Protocol’s native token, and Solana, which experienced a 50% rally driven by retail buying on Coinbase.
PayPal Introduces PYUSD
PayPal has announced a new digital currency called PayPal USD (PYUSD). This stablecoin is backed by U.S. dollar deposits, short-term U.S Treasuries, and similar cash equivalents. Eligible U.S. PayPal customers can now transfer PYUSD between PayPal and compatible external wallets, send it to friends on PayPal or Venmo without fees, shop using PYUSD on various platforms, and convert supported cryptocurrencies to and from PYUSD. PayPal continues to revolutionize digital payments, making financial services more convenient and secure.
$54M Crypto Seized from Drug Ring Leader
Federal agents have successfully seized $54 million worth of cryptocurrency from Christopher Castelluzzo, the leader of a notorious New Jersey drug ring. Castelluzzo and his co-conspirators used crypto wallets to launder the proceeds of their drug operations on darknet sites Silk Road and Blue Sky from 2010 to 2015. While serving a 20-year prison sentence, Castelluzzo was caught discussing his crypto strategy, including plans to evade taxes and liquidate his holdings in various countries.
BitGo and Copper Join Forces for Custody Settlement
Crypto custody giants BitGo and Copper are collaborating to combine their in-custody settlement networks. This collaboration enables users to access trading on major exchanges without their assets leaving secure cold storage. By integrating BitGo’s Go Network with Copper’s ClearLoop system, users gain access to exchanges like Bybit, OKX, Powertrade, and more. This partnership aims to outcompete traditional financial firms, such as Goldman Sachs and Fidelity, who are expected to enter the custody space in the future.
Twice weekly crypto goodness, coming your way! Catch us every Monday, Tuesday and Friday. And hey, don’t forget to check us out on Wednesdays for all the latest AI news – because why limit yourself to just one kind of intelligence?
