Podcast Summary
New developments in crypto despite merge and bear market: The crypto industry continues to evolve with new reports, hacks, and market volatility, despite the merge and bear market conditions.
Despite the merge being completed in Ethereum and the bear market conditions, there's still a lot happening in the crypto industry. The White House released a report with potential implications for the crypto industry, and a large hack occurred in a new and intriguing way. Do Kwon's whereabouts remain uncertain, and a new ETH staking opportunity called Swell has emerged. In the markets, Bitcoin and Ether experienced declines, but the lows may not be far off. The merge may have been priced in, but the market volatility remains. Swell, a new entrant in the liquid staking scene, aims to offer the best of both worlds between Lido and Rocket Pool. The crypto industry continues to evolve, even in a post-merge and bear market environment.
Ethereum merge fails to refill demand: The Ethereum merge did not significantly impact the price or refill the demand in the market. The bear market is expected to last for months, with focus on macro factors and eventual recovery.
Despite the Ethereum merge, which was expected to positively impact the price, the market has confirmed that we are in a bear market. The merge did not refill the demand bucket as expected, and there are no significant catalysts ahead. Ether's issuance rate has decreased significantly since the merge, but it is not yet ultrasound on a one-week basis. Gensler's comments did not cause the price drop, and the SEC did not declare control over the network. The bear market is expected to last for months, and the focus is now on macro factors and the eventual recovery.
Ethereum's Lower Issuance Rate and New Metrics: Ethereum's lower issuance rate, increase in staking rewards, and emergence of block builders contribute to Ethereum's unique dynamics, potentially impacting ETH price.
Ethereum's issuance rate is significantly lower than other popular cryptocurrencies like Bitcoin and Dogecoin. Ethereum currently issues new currency at a rate of 0.15%, which is much lower than Bitcoin's 1.75% and Dogecoin's 3.6%. This lower issuance rate is a result of Ethereum's transition from proof of work to proof of stake consensus mechanism, which has reduced the need for new ETH creation. Another key point discussed was the increase in staking rewards for Ethereum validators post-merge. The rewards have seen an increase of 172%, but they are not as high as some had hoped during the bull run. The majority of these rewards come from MEV and transaction fees rather than pure block space rewards. Furthermore, the post-merge world has introduced many new metrics and entities in the Ethereum ecosystem. There are now various block builders, such as Flashbots, BloxRoute, Block Native, Manifold, and Eden, which compete to build the most profitable blocks for stakers. These entities specialize in extracting as much MEV as possible from a block, and they offer different levels of compliance with regulations. In summary, Ethereum's lower issuance rate, combined with the increase in staking rewards and the emergence of various block builders, contribute to the unique dynamics of the Ethereum network. These factors will likely impact the price of ETH, but the effects may not be immediate.
Ethereum's Role Players Shift: Miners Out, Builders In: The Ethereum network is evolving, with miners being replaced by relayers and block builders. Block builders like Block Native and Manifold are proposing blocks at varying costs, with Manifold having a low number of blocks but high value per block.
The Ethereum network is undergoing significant changes, with the role of miners being phased out and new players like relayers and block builders entering the scene. The most profitable block builder so far is block native, proposing blocks at 0.23 ether per block. However, Manifold stands out with its low number of blocks, 63, but high value per block at 0.6 ether. The ecosystem is becoming more diverse, with various block builders gaining market share, and validators having the ability to choose based on their values. The Fed's decision to raise interest rates has led to a drop in crypto prices, and there is ongoing debate about the extent and timing of future rate hikes. The merge, a significant Ethereum upgrade, has passed, but the focus is now on how it will impact the network and the wider crypto market. The Fed's actions and the crypto market's reaction to it are interconnected, with the former potentially impacting the latter through interest rates and investor sentiment.
Fed's hawkish stance causing mortgage rates to surge and housing market concerns: The Federal Reserve's efforts to combat inflation through increased interest rates have led to soaring mortgage rates, causing monthly payments to double for some home buyers, raising concerns for the housing market.
The current economic situation, marked by high inflation and potential for recession, has many analysts and investors worried. The Federal Reserve, under Chair Powell, is taking a hawkish stance to combat inflation, leading to increased interest rates. This has significant implications for home buyers, with mortgage rates reaching levels not seen since 2008, causing monthly payments to more than double for some. The housing market is a potential area of concern for a potential break, but the Fed remains determined to continue its strategy. Economist Jim Bianco and investor Stanley Druckenmiller both warn of potential market stagnation for the next decade, which could impact both traditional equities and crypto markets. Druckenmiller specifically predicts a flat market for the next 10 years, reminiscent of the 1966 to 1982 period. The question remains how crypto will fare during such a period and whether it can decouple from traditional markets. While it's impossible to predict the future, investors and analysts continue to watch closely for signs of market shifts.
Biden administration's crypto framework focuses on consumer protection, financial stability, and illicit activities: The Biden administration's crypto framework emphasizes risk mitigation and regulation, including investigating scams, promoting financial access, and exploring a US CBDC. The conversation also highlighted new technologies like Arbitrum and Brave Wallet for faster, cheaper, and more secure crypto solutions.
The crypto industry is facing increased scrutiny from the White House, with a focus on consumer protection, financial stability, and combating illicit activities. The Biden administration's comprehensive framework for digital assets includes investigating crypto scams and exploits, promoting access to financial services, and exploring a US central bank digital currency (CBDC). While the report touches on innovation and competitiveness, the emphasis is on risk mitigation and regulation. This could potentially impact the crypto market, as investors and businesses navigate the evolving regulatory landscape. Additionally, the discussion highlighted the importance of new technologies like Arbitrum and the Brave Wallet, which offer faster, cheaper, and more secure solutions for DeFi and NFTs. Overall, the conversation underscores the need for responsible innovation and collaboration between the public and private sectors to ensure the long-term growth and success of the crypto industry.
White House report puts damper on crypto industry, particularly DeFi and algorithmic stablecoins: The White House report's emphasis on regulating illicit finance and stablecoins, especially those not backed by outside assets, could potentially harm the crypto industry's progress towards nonstate money in the US, driving talent and innovation offshore.
The White House's comprehensive framework for digital assets has put a damper on the crypto industry, particularly on decentralized finance (DeFi) and algorithmic stablecoins, due to the fallout from Terra's collapse. The report's emphasis on regulating illicit finance and stablecoins, especially those not backed by outside assets, could potentially harm the crypto industry's progress towards nonstate money in the US. Brian Armstrong, CEO of Coinbase, argues that crypto is a national security issue and that overly restrictive regulation could drive talent and innovation offshore. The crypto industry's rapid development may continue to create friction with regulators, as the industry evolves faster than regulations can keep up. MakerDAO and Frax are examples of projects that could be impacted by the potential regulation, depending on the definition of algorithmic stablecoins.
Misunderstanding Crypto's Decentralized Nature Leads to Confusion and Chaos in US Regulation: The US crypto industry is facing confusion and potential negative impacts due to a lack of understanding of decentralized systems, leading to unclear and potentially sloppy regulation and legislation.
The current state of regulation in the crypto industry, particularly in the US, is causing confusion and chaos due to a lack of understanding of the industry's decentralized nature. This misunderstanding could lead to sloppy regulation and legislation, which could negatively impact the industry. For instance, if the difference between centralized and decentralized systems is not recognized, it could result in unnecessary restrictions on decentralized systems. The implications of such regulation could be significant, as the US may be left behind in the crypto space, just like it was with 5G and semiconductors. The lack of clarity in the industry is causing concern, with many in the Senate having serious skepticism towards crypto. The debate around whether all tokens are securities or not is ongoing, with Senator Toomey advocating for clarity on sufficiently decentralized tokens. Meanwhile, in the crypto world, a major hack occurred, with Wintermute mining for a vanity address and losing $160 million. The industry continues to evolve during the bear market, with regulatory developments and security challenges being major concerns.
Using reputable tools for high-risk crypto ops: Reputable tools crucial for secure crypto ops, abandonment of Profanity vulnerability generator serves as reminder.
It's crucial to use reputable and actively supported tools for high-risk cryptographic operations, such as private key generation, to avoid potential vulnerabilities and exploits. The Profanity vulnerability address generator, which was abandoned by its creator, serves as a reminder of this lesson. With the crypto market post-merge, there's a sense of uncertainty about the next catalyst, leading to a demand problem and price downturn. Retail investors, who have been driving market momentum, need a break. Additionally, macroeconomic fears and the pivot to the next phase of crypto development add to the uncertainty. However, the ongoing building activity on the Ethereum protocol and application layers demonstrates the long-term commitment and product-market fit of the crypto industry. Despite the current market conditions, the builders continue to innovate and prepare for the next cycle.
Technological advancements fuel crypto market growth: Stay informed and invested during quiet periods to capitalize on explosive growth. Observe and understand underlying technologies for success in crypto.
The crypto market is driven by technological advancements and use cases that expand beyond macro trends in the stock market. These technological developments, such as the zkEVM from zkSync and EIP 4844, create platforms for bull markets to thrive. David's personal experience during the last bear market illustrates the importance of staying informed and invested during quiet periods to capitalize on the explosive growth that follows. The key to success in crypto is not just being aware of the latest trends, but also observing and understanding the underlying technologies and their potential applications. As the crypto landscape continues to evolve, it's essential to stay engaged and curious, as new opportunities and use cases will emerge.
Decentralized Solutions in Crypto: Juno, Lens Protocol, Infura, StarkWare, and OpenSea: Juno offers crypto-friendly banking, Lens Protocol decentralizes social media, Infura plans to decentralize infrastructure, StarkWare experiences community-driven bug fix, OpenSea adds support for Arbitrum on Ethereum layer 2 networks
The crypto space continues to evolve with new innovations and decentralized solutions. Juno, for instance, is bringing crypto-friendly banking to the table, allowing users to skip ACH wait times and gas fees when transferring funds to Ethereum layer 2 networks. Lens Protocol, on the other hand, is revolutionizing social media by enabling users to control their own profiles and followings, rather than being tied to specific apps. Another significant development is Infura's plan to decentralize its infrastructure, which is a long-awaited move in the Ethereum community. This shift towards decentralization is a recurring theme, as StarkWare, a major player in the ecosystem, also experienced a bug that was quickly identified and fixed by the community. OpenSea, a popular NFT marketplace, is expanding its reach by adding support for Arbitrum, another Ethereum layer 2 network. This move signifies the growing importance of these layer 2 solutions in the Ethereum ecosystem. Additionally, the crypto community continues to demonstrate a strong sense of collaboration and goodwill, as seen in the bug discovery and resolution by Vlad Pichak, Ehor Barenblatt, and DC Investor. Overall, these developments underscore the ongoing innovation and progress in the crypto space.
Universal Studios uses NFTs for Halloween scavenger hunt: Universal Studios introduces NFTs for interactive scavenger hunt, Tether under scrutiny, FTX and Binance in bidding war for bankrupt crypto lender, Do Kwon wanted in 195 countries
Universal Studios is leveraging NFT technology to add an interactive element to their Halloween theme parks through a scavenger hunt. Visitors who successfully scan all 7 QR codes using their mobile devices receive a special NFT, which may unlock additional perks according to MoonPay. This is a creative way to engage fans and add value to NFT ownership. Meanwhile, Tether, a stablecoin issuer, is under scrutiny as a US judge in New York has ordered them to produce documents detailing what USDT is backed by. This is a continuation of regulatory oversight in the crypto space, ensuring transparency and accountability for centralized entities. In the crypto market, FTX and Binance are in a bidding war to acquire the bankrupt crypto lender Voyager, showcasing the resilience of these two major players during the bear market. Additionally, Do Kwon, the founder of Terra, is wanted in 195 countries after South Korea issued an Interpol red notice for him. Despite his claims of full cooperation, the situation remains unclear. These events highlight the dynamic nature of the crypto industry, with both innovation and regulatory oversight shaping its future.
New Developments in the Crypto Space: Tribe DAO, Helium, Kraken, and Liquid Collective: Tribe DAO plans to reimburse hack victims, Helium partners with T-Mobile, Kraken's founder steps down, and Liquid Collective creates a shared protocol for liquid staking tokens. These developments highlight the evolving crypto landscape and ongoing efforts to build and innovate.
The crypto world continues to evolve at a rapid pace, with new developments and twists coming to light every day. For instance, the Tribe DAO community, which was under fire for not paying back victims of a hack, seems to have made a U-turn and is now planning to fully reimburse the affected parties. This is a positive sign for the DAO space, showing that they are capable of making things right when things go wrong. Another significant development is Helium's partnership with T-Mobile, which marks a major step forward for the project as it looks to expand its cellular network. Helium's token economics, which reward early adopters, are an innovative way to bootstrap a network, and this partnership could help bring the project to a wider audience. Additionally, the founder of Kraken, Jesse Powell, is stepping down as CEO, with David Ripley taking over. This comes as the Nasdaq Stock Exchange is planning to launch an institutional crypto custody service, which could help boost adoption of crypto, particularly during the current bear market. Lastly, the Liquid Collective, a consortium of centralized staking as a service entities, is coming together to create a shared protocol for producing liquid staking tokens. This could help mitigate concerns around centralized stakers and create a more cohesive ecosystem. Overall, these developments underscore the dynamic nature of the crypto space and the ongoing efforts to build and innovate.
Coinbase Launches Cloud Service, FTX Raises Funds, and More Crypto Developments: Coinbase introduces Coinbase Cloud, offering free API access for developers, drawing comparisons to AWS for blockchain. FTX aims to raise $1 billion for acquisitions. Messari secures $35 million in series B funding. Numerous crypto companies seek talent, and the bear market doesn't slow down innovation and growth.
The crypto industry is continuing to evolve and expand, with new players entering the market and existing ones making significant moves. Coinbase, a well-known name in crypto, is launching its cloud service, Coinbase Cloud, offering free and instant API access for developers. This is a significant move, drawing comparisons to AWS for blockchain. Elsewhere, FTX is raising another $1 billion for acquisition strategies, and Messari, a crypto analytics and media entity, has raised $35 million in series B funding. These developments underscore the ongoing growth and innovation in the crypto space. Despite the current bear market, there's a strong focus on building for the future, with numerous job opportunities available. Companies like Solid World DAO, Rubicon, Bankless, Econemia, and Superform are looking for talent in areas such as software engineering, marketing, and design. So, whether you're looking to get a job or become a crypto millionaire, there's plenty of opportunity in the crypto space. And don't forget to check out the sponsors, like Rocket Pool, that are making these episodes possible.
Boost your Ethereum staking rewards and become a first-class citizen on the network by running your own node or joining decentralized networks like Rocket Pool.: Running your own Ethereum node or joining a decentralized network like Rocket Pool enhances staking rewards, offers greater network sovereignty, and strengthens the Ethereum network's decentralization.
Participating in decentralized networks like Rocket Pool and running your own Ethereum node can provide benefits beyond just staking rewards. For Ethereum stakers, adding your node to Rocket Pool can boost your APY and earn you extra tokens. Running your own node, however, goes beyond just staking and offers greater sovereignty and security for the Ethereum network. By running a node, you become a first-class citizen on the network, connecting directly to the Ethereum blockchain without intermediaries. This not only improves your user experience but also serves as a crucial check on validator power, ensuring Ethereum remains a decentralized network. As more people run their own nodes, the network becomes more secure and less reliant on centralized services. Overall, running your own node is an essential part of the bankless philosophy, allowing for permissionless transactions and maintaining the decentralization of the Ethereum network.
Control Your Own Node for Power in Ethereum's Proof of Stake: Having control over your own Ethereum node gives you the power in proof of stake consensus, as the version with the most nodes wins, even with small stakes. Security concerns limit mobile phones as solo staking devices, and Ethereum's proof of stake and institutional appeal may challenge Bitcoin's dominance.
In the world of Ethereum and proof of stake, having control over your own node gives you the power, even if you have a small stake. This is because if the majority of validators install a certain software, there's a risk of a chain split. The version of Ethereum that the community chooses to support will win, and that's determined by which version has the most nodes running it. This is similar to how Bitcoin won against Bitcoin Cash in 2016 and 2017, as the community chose to support the original Bitcoin version. Regarding the question about mobile phones as solo staking devices, while it's technically possible, there are concerns about security and recovery of keys if the phone is lost. As for the ongoing debate between Bitcoin and Ethereum, Joe Weisenthal argues that with Ethereum's proof of stake consensus and lack of energy consumption issues, it may become the preferred choice for institutions. However, Dan Held, a notable Bitcoiner, is not giving up on Bitcoin and is instead advocating for a more pragmatic approach to Bitcoin's ecosystem. The terms "fundamentalism" and "maximalism" are being used differently in the crypto community, and it remains to be seen how Dan Held draws the line between the two.
Focusing on practical applications for mainstream adoption: During the bear market, crypto industry should focus on building useful apps, reducing conflicts, and demonstrating tangible value to win over skeptics and strengthen the community.
The crypto community, particularly those focused on Bitcoin, are facing a shift in perspective. According to Hayden Adams, founder of Uniswap, many people outside of crypto circles don't care about Ethereum or other cryptocurrencies, except for how they impact everyday life. Crypto critics are often labeled as "haters," but Adams suggests that a more productive approach would be to focus on building useful applications that resonate with the general public. Additionally, the crypto industry could benefit from reducing internal and external conflicts and focusing on demonstrating tangible value in the present. John from Delphi emphasizes that roll-ups, a promising solution for Ethereum's scalability issues, are not yet fully realized and still face significant risks. The industry should continue investing in research and development to address these challenges and bring crypto closer to mainstream adoption. Overall, the call to action during the bear market is to focus on creating practical applications and reducing internal conflicts to win over skeptics and build a stronger crypto community.
Exploring the Future of Crypto with Ethereum: Stay updated on Ethereum's roadmap and follow developers for a bullish outlook on crypto's future.
The crypto space is experiencing an unprecedented amount of development and innovation, with a focus on Ethereum and its roadmap. Boris and Ryan express their bullishness on the future of crypto, emphasizing the importance of following developers and their projects. A new YouTube channel, optimized for short videos, will be launching soon to cover these developments in detail. While some may choose to be bearish, the speakers encourage staying positive and excited about the potential of the technology. A meme was shared about the disconnect between crypto enthusiasts and those who don't understand the space, highlighting the importance of having a community to share in the excitement.
Ethereum's transition to proof of stake brings hope for reduced energy consumption: Mother's excitement about Ethereum's energy-saving transition, investing in crypto carries risk, buy and hold Ethereum, Bankless community resources
The Ethereum network is transitioning from proof of work to proof of stake mining, which is expected to significantly reduce energy consumption. This news brought excitement to the speaker's mother, who is an environmentalist. It's important to note that investing in crypto, including Ethereum, carries risk and none of the information presented should be considered financial advice. A listener was hesitant to buy ETH until it reached a certain price, but the speaker advised against waiting for market predictions and instead encouraged buying and holding the cryptocurrency. The Bankless community offers resources and opportunities for those interested in crypto to learn, connect, and grow their investments.