Welcome to The Wise Guy,
Where we take cryptocurrency news so seriously that we’ve invented a new currency: jokes. (Just kidding – we wouldn’t do that to you.)
Actually, we take cryptocurrency seriously enough to curate the best bits from not just one, not two, but FIVE premium newsletters:
MilkRoad, Defiant, Messari, Bankless, and CoinDesk Node.
It’s like the Avengers of crypto journalism, only without the spandex. So sit back, grab some popcorn, and let us take you on a journey to the center of the crypto universe.
Don’t worry, we promise to make it entertaining (and maybe even a little educational).
Bankless’ Top Story
Polygon’s co-founder just dropped a blockchain bombshell that’s shaking up the proof-of-stake world like a snow globe stuck in an earthquake.
Spoiler alert: it involves zero-knowledge proofs, lower transaction fees, and some security tradeoffs.
But hey, no one said making crypto history was easy!
So here’s the scoop: just a few months ago, Polygon launched its own sidechain called zkEVM. But now, Polygon’s co-founder wants to make the big move and transition its main proof-of-stake chain to what’s known as a zkEVM validium.
Confused? Don’t worry, it’s not as complicated as it sounds (unless you’re a first-grader, in which case, good luck).
Essentially, a validium executes transactions off chain and maintains their data via zero-knowledge proofs of chain as well.
In simpler words, Polygon’s co-founder is betting big that this move will make the network leaner, meaner, and more competitive with other layer 2 networks like Optimism and Arbitrum.
It’s a bold move, and one that may have a few bumps in the road (or potholes, if you live in New York City).
Let’s not forget that Polygon has been dealing with regulatory headaches lately after the SEC took aim at its native MATIC token, which has been delisted by several exchanges. Maybe zero-knowledge proofs can help with that too?
Defiant’s Pro Desk
Well, well, well, look who’s back in the crypto game like a phoenix rising from the ashes: DeFi tokens! While Bitcoin has been hogging the limelight lately like a Broadway diva, DeFi assets have been quietly scheming their comeback.
The native tokens of Uniswap, Aave, Compound, and Synthetix have been posting double-digit gains in the past 24 hours, leaving other crypto assets green with envy (or maybe just algae, we’re not sure).
And it’s not just hype: DeFi assets are breaking out of their long slump and making a comeback like Britney Spears in the early 2000s.
Combined total value locked in DeFi protocols and the market cap of DeFi assets are both up more than 10% in the past ten days. Who says you can’t teach an old dog new tricks? (Or in this case, a blockchain new moves.)
This resurgence in DeFi activity may be due in part to the rise of liquid staking tokens (LSTfi, if you want to get technical).
Liquid staking tokens, like Lido’s stETH and Rocket Pool’s rETH, allow holders to accrue staking rewards without running a node or locking up their liquidity. It’s like getting all the cake (or CAKE) without having to bake it yourself.
And DeFi integrations are only making it easier for traders to maximize their capital efficiency and get even more yield. More than 8M ETH is locked in Ethereum-based LST tokens, according to Dune Analytics. Looks like DeFi is back, baby!
Messari’s Premium Desk
First, BlackRock filed for a spot bitcoin ETF, signaling a seismic shift in market sentiment. And now, numerous companies like Valkyrie, Bitwise, WisdomTree, and Invesco have jumped on the ETF bandwagon, hoping to ride the wave of BlackRock’s success like a surfer dude on a gnarly wave.
Eric Balchunas, Senior ETF Analyst for Bloomberg, even predicts that a bitcoin ETF has a 50% chance of being approved, thanks in no small part to BlackRock. We’re not saying they’re trend-setters, but hey, everyone wants to be like Mike (Jordan, that is).
But that’s not all – the TradFi train keeps chugging along like a locomotive on steroids!
Deutsche Bank, a $1.4 trillion asset manager, has applied for a license to offer crypto custody services. It’s like the big banks are slowly realizing that crypto is the cool kid in school they always wanted to be friends with (but never had the courage to ask out to prom).
And check this out: Citadel, Fidelity, and Charles Schwab have just backed a new crypto exchange called EDX Markets.
All of this TradFi interest in the crypto space begs the question: what’s next?
Despite ongoing regulatory challenges from the SEC, the crypto market is feeling bullish, with bitcoin rallying past $30,000. It’s like Christmas in July for crypto investors, and the TradFi players are bringing the presents. Who knows what’s next? Maybe a crypto-themed parade down Wall Street? We can only hope.
Milk Road’s Educational Desk
MilkRoad’s latest find is a database of use cases called The Value Prop. It’s so cool it’ll make you think you’re in a James Bond movie. One of the witty use cases we came across? Tokenized Carbon Credits.
Now, let me break down carbon credits for you. You see, global warming is getting so bad that it makes Michael Jackson’s “Bad” look good. But never fear, smarty-pants humans came up with a fantastic solution: carbon credits. Here’s the deal:
– Every time a project successfully removes 1 ton of carbon from the atmosphere, they get 1 carbon credit.
– These beauties are then sold to companies around the world. Companies buy carbon credits to reduce their carbon footprints and meet regulatory requirements.
– Companies try to buy 1 carbon credit for every 1 ton of C02 they spew from their factories or trucks (that’s an “offset,” kind of like when your friend offers to buy you a beer to offset the one you just bought them).
– But here’s the rub: these transactions are slow and done over the counter.
CoinDesk’s Best Story
Move over, Judge Judy – crypto is coming to the Supreme Court! Or at least, that’s what we thought until Coinbase won a reprieve from the high court on Friday.
The court ruled that a lawsuit filed by one of Coinbase’s users couldn’t proceed until the exchange was able to appeal a previous judicial decision in a lower court.
Looks like Coinbase lawyered up like a mob boss and got the job done.
The lawsuit centers around Coinbase user Abraham Bielski’s complaint that the exchange isn’t doing enough to protect consumers from scammers.
We feel his pain – losing $31,000 to a scammer stings worse than a bee at a honeycomb convention. But the real legal quagmire here is over arbitration, not crypto itself. The Supreme Court will have to decide how courts should handle scuffles over arbitration. Sounds thrilling, right?
Until then, Coinbase gets a temporary reprieve from the lawsuit’s progress and can continue its efforts to compel arbitration against the putative class action lawsuit.
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?
