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
MetaMask Snaps Customize Your Wallet Experience
MetaMask, the popular cryptocurrency wallet, has introduced a new feature called MetaMask Snaps that allows users to personalize their wallet experience.
Developed by third-party developers, MetaMask Snaps offer additional functionalities and features that can be directly installed by users, making every wallet unique to its owner’s preferences.
By installing MetaMask Snaps, users can customize their wallets to reflect their aspirations and preferences in the crypto world. Whether it’s support for multiple blockchain networks, advanced security and identity features, or account abstraction, there are 36 Snaps available for users to choose from.
Grab Launches Web3 Wallet for Singaporean Users
Grab, the leading super app in Southeast Asia, has recently launched a web3 wallet specifically designed for users in Singapore. This centralized wallet supports selected non-fungible tokens (NFTs) and allows payments in Singapore Dollar stablecoins via the Polygon network.
With Grab’s enormous user base of 180 million users, the introduction of their web3 wallet could be a significant step towards onboarding new users into the world of cryptocurrencies. If the service expands to other Southeast Asian economies, it has the potential to further promote crypto adoption in the region.
Nouns NFT Community Divided Over Fork Proposal
The Nouns NFT community recently experienced a division when a proposal to fork the project gained support from one-third of its token holders. The fork would have resulted in around half of Nouns’ treasury reserves being taken along with the defectors. Many of those who supported the fork chose to redeem their tokens for treasury assets.
This splitting of the Nouns community highlights an emerging trend where project communities are successfully using governance to take control of treasury assets. It follows the example set by groups like the Risk Value Raiders, who target decentralized autonomous organizations (DAOs) with substantial treasury assets compared to the market cap of their governance tokens.
PostTech Emerges as Rival to Friend Tech in Social Trading
PostTech, a social trading app, is positioning itself as the top competitor to Friend Tech, a pioneering platform in the same field. With a user base of over 39,000, PostTech has already achieved a daily trading volume of more than $5 million.
One of its key differentiators is its fee redistribution model, which aims to benefit creators and traders rather than accumulating fees for its treasury.
PostTech’s approach seeks to attract users away from Friend Tech by offering a more community-centric and fair fee structure. The platform redistributes fees back to those who contribute, creating a more inclusive and rewarding environment for traders and creators.
Messari’s Desk
Over the past year, Ethereum staking has experienced significant growth, with the amount of ETH staked increasing by 80% since the Merge and Shapella upgrades. However, this rapid growth has raised concerns about the decentralization and economic security of the Ethereum ecosystem.
In particular, the high staking ratio, the prevalence of liquid staking providers like Lido, and Lido’s market dominance have all emerged as potential threats. In response, various solutions are being proposed to limit staking growth and increase decentralization, but there are still challenges ahead.
The Problems: Three main problems have arisen due to the growth in ETH staking. Firstly, as the number of validators increases, the communication required for consensus can lead to delays and potential failures. Secondly, the rise of liquid staked ETH via providers like Lido poses economic unpredictability and reduces incentives for holding ETH.
Finally, Lido’s rapidly approaching 33% market share raises concerns about its ability to delay finality and the potential for attacks on Ethereum.
The Solutions
To mitigate these problems, several solutions are being pursued. One solution is the implementation of EIP-7514, which will limit the rate at which more ETH is staked and provide time for researchers to find long-term solutions. Additionally, Lido is working towards decentralizing its protocol through a dual governance model, giving stETH holders more influence over decision-making. Lido’s recent upgrades have also paved the way for a decentralized validator set. Finally, user activism and awareness are important in pressuring Lido to self-limit and encouraging a prudent approach from users.
The Impact
The impact of these developments is still uncertain. While Lido’s market share is expected to hover around 32%, it remains to be seen if it will breach the 33% threshold or implement self-limiting measures. The fair value of LDO, Lido’s token, is estimated to be around $1.7, reflecting current profitability challenges and social concerns. In contrast, Rocket Pool (RPL) has seen steady growth and has a staking share of over 3%. With the potential for higher yields and competition from other providers, Rocket Pool’s staking share is expected to continue growing, with a fair value estimation of $38.
Bankless’ Desk
FTX sues SBF’s mom and dad
FTX has filed a lawsuit against Joe Bankman and Barbara Fried, the parents of CEO Sam Bankman-Fried. The suit accuses them of using their influence within FTX to benefit themselves. Allegations include receiving substantial gifts totaling $10 million and the purchase of a $16.4 million mansion in the Bahamas. FTX’s claims have been disputed by Bankman and Fried’s lawyers, who consider them false.
Crypto critic Senator charged with corruption
Senator Bob Menendez, a vocal critic of Bitcoin, has been charged with corruption and bribery. Menendez, a Democrat from New Jersey, allegedly accepted bribes including gold bars, cash, and mortgage payments in exchange for favoring wealthy businessmen in his state. The indictment states that Menendez and his wife agreed to accept hundreds of thousands of dollars in bribes. If convicted, he could face up to 20 years in prison.
ETH’s next big upgrade may be delayed
The anticipated Dencun upgrade on Ethereum, aimed at reducing transaction costs on Layer 2 networks, may face delays. During a meeting of Ethereum’s core developers, Tim Beiko from the Ethereum Foundation discussed the timing for the launch. He mentioned the need for a public testnet before Devconnect, a November 2023 conference, to ensure mainnet activation this year. Without a testnet by November, the upgrade may be postponed to 2024.
Friend.Tech copycat picks up steam
In the world of tech, it is common for successful projects to attract copycats. This week, a clone called Post.Tech gained momentum, attracting over $1.8 million in deposits. While Friend.Tech, backed by venture capital, has gained legitimacy, some in the crypto community remain skeptical about Post.Tech.
Optimism sells (and airdrops) more tokens
Optimism, a prominent layer 2 solution, distributed over 19 million OP tokens worth $27 million in its third community airdrop. However, controversy emerged when the Optimism Foundation announced the sale of 116 million tokens to private market buyers for an undisclosed sum. Critics raised concerns about the lack of community input or consultation in the substantial token sale.
MilkRoad
In the world of cryptocurrencies, Hal Finney holds a special place as a true pioneer. He is often associated with the mysterious Satoshi Nakamoto, the creator of Bitcoin, and has made significant contributions to the development of this groundbreaking technology.
One of Hal Finney’s notable achievements was being the very first person to download the Bitcoin software. He was intrigued by Satoshi Nakamoto’s vision and wasted no time in exploring the possibilities.
As he delved into the code, he also collaborated closely with Nakamoto, helping to find and fix bugs in the software. This early collaboration laid a strong foundation for Bitcoin’s success.
In fact, Hal Finney was not only involved in the early stages of Bitcoin, but he also played a crucial role in the first-ever Bitcoin transaction.
In 2009, Satoshi Nakamoto sent him 10 BTC, marking the beginning of a new era in digital finance. This significant event led some to speculate whether Hal Finney could be the elusive Satoshi Nakamoto himself, the enigmatic figure who created Bitcoin.
Hal Finney’s contribution to the development of cryptocurrencies goes beyond his collaboration with Nakamoto.
He was also a visionary in his own right. In a video from the Crypto ’98 Conference, which has recently resurfaced, Finney can be seen discussing zero-knowledge proofs.
This advanced cryptographic concept, now widely implemented in many cryptocurrencies, ensures privacy and security by allowing individuals to prove knowledge of a secret without explicitly revealing it. Hal Finney’s work on zero-knowledge proofs demonstrates his deep understanding and foresight in the field, a testament to his brilliance.
It’s worth noting that Bitcoin’s true power lies in its decentralized nature. Unlike traditional financial systems, it has no single authority figure making all the decisions or controlling its destiny.
This absence of a central controlling entity is one of the reasons Bitcoin has become so influential. While the identity of Satoshi Nakamoto remains unknown, this mystery only adds to Bitcoin’s allure and decentralized nature. It’s a testament to the power of collective ownership and the value of a community-driven initiative.
Today, Bitcoin continues to make waves, with millions of people around the world owning and using this digital asset. With a market cap exceeding $500 billion, Bitcoin has become the 13th most valuable asset globally. It has evolved into what it was originally envisioned to be: an asset for the people, by the people.
CoinDesk’s Best Story
FTX Seeks Legal Action for Asset Recovery
FTX, the crypto exchange, has filed a lawsuit against former employees of Salameda, its Hong Kong-based unit. The company aims to recover approximately $157.3 million, alleging fraudulent withdrawal of assets by Michael and Matthew Burgess, their mother Lesley, Kevin Nguyen, and Darren Wong.
These individuals supposedly received “preferential transfers” due to their connections to Sam Bankman-Fried through various affiliated firms. As part of its efforts, FTX is pursuing clawbacks from multiple individuals and entities associated with SBF, including friends, family, as well as FTX’s philanthropic and life science arms.
Bybit Halts UK Operations
Bybit, a cryptocurrency exchange, has announced the suspension of its operations in the United Kingdom. The move is in response to regulatory changes scheduled to take effect in October.
The new regulations by the Financial Conduct Authority require crypto firms to be registered with the authority. Despite exploring options to continue operating in the country, Bybit has not made it onto the FCA’s crypto register. Bybit is not alone in this decision, as PayPal also recently announced temporary service pause until next year, and Luno, a subsidiary of CoinDesk parent Digital Currency Group, will restrict certain UK clients from investing on the exchange.
Google Cloud Expands Support for Cryptocurrencies
Google’s cloud-computing division has added 11 networks, including Ethereum’s Goerli test network, Avalanche, Arbitrum, and Polkadot, to its “BigQuery” program for public datasets. BigQuery, known as a “serverless and cost-effective enterprise data warehouse,” provides a convenient means for cryptocurrency developers to retrieve data from off-chain providers like Google Cloud.
James Tromans, the global head of Web3 at Google Cloud, stated the company has been hiring and growing its crypto-related services during the bull market. Google Cloud has previously added support for Bitcoin on BigQuery and is considering adding support for the Bitcoin-based Ordinals project.
Ethereum’s Shanghai Upgrade Faces Challenges
JPMorgan analyst Nikolaos Panigirtzoglou expressed disappointment in Ethereum’s Shanghai upgrade. The research note revealed a 12% drop in transactions and nearly 20% decrease in daily active addresses since the upgrade was launched in April.
While the upgrade has seen a 50% increase in staking, enhancing network security, Panigirtzoglou raised concerns about the high concentration of liquid staking protocols like Lido, indicating potential centralization issues. Additionally, the adoption of layer 2 networks and reduced activity have led to a decrease in ETH burning, causing the supply of ether to become inflationary since the Merge last year, as highlighted by IntoTheBlock.
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?
