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
🔄 FED Hike Minutes
Bitcoin, Ethereum and every other altcoin experienced a steep decline, hitting multi-month lows. The trigger for this downturn was the release of minutes from a Federal Reserve meeting, which suggested the possibility of more interest rate hikes in the near future. Understandably, investors rushed to offload risk assets in response to this news.
💼 Coinbase Wins Approval To Offer Crypto Futures
While this market turmoil stole the spotlight, there was some bullish news from Coinbase. The popular exchange received approval from the U.S. National Futures Association to offer crypto futures, albeit to a select group of users. This development is being seen as a significant step towards regulatory clarity for cryptocurrencies in the United States.
Messari’s Desk
Let’s dive into the ever-changing world of NFTs, where the landscape has experienced a major transformation over the past year.
The focus has shifted towards the financialization of profile picture (PFP) collections, moving away from their original purpose as community-driven art initiatives and turning them into speculative investment instruments.
A pivotal player in this evolution is Blur, an NFT trading platform that has increased liquidity by making NFT transactions more streamlined. However, this advancement has come at a cost. It has amplified the erosion of effective price discovery mechanisms, thanks to an influx of newcomers and speculative trading. As a result, NFT valuations have become detached from their intrinsic artistic value.
Unfortunately, this shift hasn’t been kind to major PFP collections, as they have generally witnessed a decline in value across the board. One of the contributing factors is the rise of derivative projects that dilute the uniqueness and scarcity value of the original collections.
But amidst this changing landscape, a shining star emerges — the Milady Maker collection. Unlike its peers, this collection has seen an impressive 4x increase in its floor price since January, defying the broader market downtrend. The key to Milady’s success seems to lie in its vibrant and engaged community.
This community actively participates in the collection’s growth and passionately advocates for it on various social platforms, creating a sense of digital counterculture. It harkens back to the NFT boom of 2021, where collectors were driven by a strong sense of belonging and passion for the art.
This brings us to a crucial question about the future of PFP collections: Will financialization continue to dominate the NFT landscape, or can projects that foster strong communities, following the Milady model, chart a sustainable path forward?
As the NFT world continues to evolve, it’s an intriguing prospect to see if the power of community can counterbalance the pull of financial speculation. Stay tuned to witness the ongoing battle between these two forces in the exciting realm of NFTs.
Bankless’ Desk
⚡️ETH Futures ETF on the Way
While the SEC seems to be dragging its feet on approving a Bitcoin spot ETF, we have some encouraging news for Ethereum. According to Bloomberg, the SEC might soon give the green light for several Ethereum futures exchange-traded funds (ETFs).
Around 12 companies, including Bitwise, ProShares, and Volatility Shares, have applications in the works. These ETFs would be based on futures contracts and would not directly expose investors to ETH. It’s certainly a bullish development for the industry, although we’re still keeping a close eye on the BTC spot ETF process.
💼 Trump the Crypto Whale
Guess who’s been making some waves in the world of crypto? None other than Donald Trump himself! Financial disclosures have revealed that the former president has earned almost $4.9 million in licensing fees from his NFT collections.
And that’s not all—he currently holds 1,535 ETH in a crypto wallet, which is worth over $2.5 million at the time of writing. Who knew Trump had such significant crypto holdings?
Base L2 Surpasses the Rest
Coinbase’s Base L2 has been making some serious waves lately. In August, it recorded more daily transactions than the more established Arbitrum and Optimism rollups. The surge in activity was boosted by the launch of Friend Tech, a social platform that has already sparked rumors of an upcoming airdrop. It looks like Base is becoming the go-to Ethereum scaling blockchain network, leaving other contenders behind.
Milk Road’s Fed Analysis
We’ve got some Milk Notes™ from the recent Fed Minutes that you don’t want to miss. Think of it as the nerdy monetary policy version of “60 Minutes” (minus the scandals, unfortunately).
So, what’s the scoop? The majority of Fed officials are leaning towards higher interest rates. Yup, you heard that right. Only “a couple” of them think rates should stay unchanged. It’s a rather hawkish stance they’ve taken.
But why the push for higher rates? Well, it seems most participants see significant upside risks to inflation. In simple terms, they’re concerned about prices going up too much. To combat this, they might tighten monetary policy even further.
On the brighter side, the Fed no longer predicts a recession in 2023. So there’s a glimmer of hope on the economic front.
Now, all eyes are on Jerome Powell, the man also known as “JP MoneyMan.” He’s set to deliver his annual speech at the Jackson Hole Economic Symposium next week. Last year, his speech sent crypto and stocks plummeting, so it’s safe to say we’re all a bit nervous about what he might announce this time around.
CoinDesk’s Best Story
In the latest news on the legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs, the SEC is one step closer to appealing a partial decision. The initial ruling by Federal Judge Analisa Torres stated that Ripple violated securities laws only when selling XRP to institutional buyers. However, the SEC intends to challenge this decision and has been granted a pathway to do so. The agency will still need final approval from Torres and the Second Circuit Court of Appeals.
Meanwhile, troubled crypto lender Celsius is planning to vote on a proposal to sell its remaining assets to a consortium of crypto investors called Fahrenheit. A judge overseeing the process suggested that creditors could recover between 67% and 85% of their losses.
✨ Milestone for Digital Assets Industry: FIT Act Votes in Congress
The digital assets industry recently reached a significant milestone with the votes on the Financial Innovation and Technology for the 21st Century Act (FIT Act) by two House committees. The FIT Act is the most comprehensive legislation for the digital assets industry that has been voted on by elected officials in the House or Senate. Notably, it gained bipartisan support, highlighting the recognition that the crypto sector is too important to be regulated solely by existing frameworks. Congress is now taking the lead in determining an appropriate regulatory framework for the industry.
🤝 Boosting Bipartisan Collaboration
The recent votes on the FIT Act demonstrate a growing momentum towards bipartisan collaboration to address the complexities and potential of cryptocurrencies effectively. Lawmakers have expressed concerns about the ineffectiveness of the current regulatory regime and the SEC’s enforcement campaigns. The crypto industry is gaining increased awareness and acknowledgment from Congress, leading to a shift towards developing intelligent regulations that foster innovation while ensuring consumer protection and financial stability.
📈 The Need for Continued Industry Progress
The crypto industry has faced challenges recently, with high-profile incidents damaging its reputation. However, there is a growing understanding in Washington D.C. that cryptocurrencies and blockchain technology cannot be ignored. As these technologies continue to revolutionize financial systems, regulators must create smart, forward-thinking rules that maintain market integrity and protect consumers and investors.
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?
