Podcast Summary
Crypto Developments: The SEC recognized Ethereum as a commodity, hinted at an ETH ETF launch, airdrop season continued, Bitcoin's correlation with the S&P 500 continued, MicroStrategy's Bitcoin buying added pressure, and the crypto market showed signs of growth and maturation
This week saw significant developments in the crypto space with the SEC dropping charges against Ethereum, the approval of more airdrops, and Bitcoin's correlation with the S&P 500. Ethereum officially recognized as a commodity, and hints about the ETH ETF's imminent launch. Airdrop season continued with Layer Zero and ZK Sync token launches. Bitcoin saw a 3% decrease in price, while ETH was an outperformer. The S&P 500 reached new all-time highs, and Bitcoin's price correlation with it continued. MicroStrategy's continued Bitcoin buying using debt and proceeds from convertible notes added buying pressure. The big question is when MicroStrategy will join the S&P 500. Bitcoin's price increase could potentially double MicroStrategy's stock price. These developments highlight the ongoing growth and maturation of the crypto market.
Asset accumulation, Cryptocurrencies: Having a high income is not enough for financial growth, owning assets like real estate, stocks, and cryptocurrencies is crucial. Ethereum (ETH) has seen recent price increase due to potential ETF and 'flippening' news, but the total crypto market cap has decreased this week.
Wealth accumulation goes beyond just having a high income. Owning assets is crucial for financial growth. Assets can include anything from real estate and stocks to cryptocurrencies. The rules of the game may not be fair, but having more assets can help level the playing field. In the world of cryptocurrencies, Ethereum (ETH) has been experiencing ups and downs, with recent news of an ETF potentially going live on July 2nd leading to a price increase. The trend for ETH to eventually surpass Bitcoin's market cap, known as the "flippening," is estimated to occur around November 16, 2026. The total crypto market cap has seen a significant decrease this week, with most coins underperforming, including Solana, Dogecoin, Cardano, Avalanche, Shib, Chainlink, Polkadot, and Uniswap. Layer 2 solutions, such as Mantle, are seeing increased activity and demand, leading to a higher cost for blobspace, which is essential for these solutions to function effectively.
Layer 2 solutions, Ethereum Layer 1: Layer 2 solutions like Arbitrum and Solana are gaining popularity with lower fees and more users, but Ethereum Layer 1 still leads in volume due to larger market capitalization and high transaction fees. A new combo ETF for Bitcoin and Ethereum is being filed with the SEC, and the airdrop season continues with ZK Sink and ZRO, each with unique requirements to claim tokens.
The crypto market is seeing significant growth, with layer 2 solutions like Arbitrum and Solana gaining popularity in terms of both users and volume. Solana, in particular, is dominating in terms of unique users due to its low fees and the popularity of meme coins. However, Ethereum Layer 1 still leads in terms of volume due to its high transaction fees and larger market capitalization. A new development in the crypto space is the filing of 19 SEC filings for a combo ETF, which would allow investors to hold both Bitcoin and Ethereum in the same wrapper, potentially improving both returns and sharp ratio. Additionally, the airdrop season is in full swing, with ZK Sink and ZRO being notable examples. ZK Sink is claimable and tradable this week, while Layer Zero's ZRO token debuted at a unicorn valuation. However, to claim the ZRO token, users must donate to the protocol guild, which has sparked controversy. Overall, the crypto market is seeing innovation and growth, with new developments and trends emerging regularly.
ZK Sync airdrop reactions: Though some were dissatisfied with the ZK Sync airdrop distribution, a significant portion of tokens weren't sold immediately, indicating potential long-term holding.
The recent ZK Sync token air drop, which saw a significant portion of the tokens claimed by a small number of addresses, resulted in varying reactions from the community. While some were satisfied, others were upset about receiving less than expected. Despite this, only 40% of the tokens were sold immediately, suggesting that a significant portion of the recipients may be long-term holders. With a fully diluted valuation of $4.2 billion and a market cap of $740 million, ZK Sync's token is currently not among the top 100 cryptocurrencies by market cap. This is likely due to the fact that only 17.5% of the total supply is currently in circulation. Comparing ZK Sync to other layer 2 projects, it falls within a decent range of fully diluted valuations. However, the recent trend of air drops in the crypto space has left some in the community feeling exhausted, leading some founders to consider abandoning the distribution method altogether. The future of airdrops remains to be seen, but it's clear that the landscape is shifting as users and projects navigate the complexities of this new era of token distribution.
Trump token authenticity: Despite Martin Shkreli's claims, there's no concrete evidence or confirmation of Trump family's involvement in the DJT token. The token's authenticity and legitimacy remain uncertain, with the SEC investigating the matter.
There's ongoing speculation about the authenticity and involvement of former US President Donald Trump in a cryptocurrency project called DJT, or Donald J. Trump token. Convicted pharma bro Martin Shkreli, known for his controversial past, has claimed a partnership with Baron Trump in the creation of this token. However, there's no concrete evidence or confirmation from the Trump family regarding their involvement. The token, which is currently valued at over $160 million, has seen significant price fluctuations due to the rumors and hype surrounding it. The authenticity of these claims and the legitimacy of the token remain uncertain, with many in the crypto community expressing skepticism. The SEC is reportedly investigating the matter, adding to the uncertainty surrounding the project. Despite the lack of clear information, the DJT token continues to generate buzz and attract attention in the crypto world.
DJT Trump token creator controversy: The identity of the DJT Trump token creator is under investigation due to allegations of social engineering and potential collaboration with Donald Trump's son, Barron. The truth is not yet established, emphasizing the complexities and potential risks of the crypto world.
The identity of the creator of the DJT Trump token, a meme coin associated with Donald Trump, remains a subject of controversy. Martin Screlli, who claimed responsibility, is under scrutiny due to allegations of social engineering and collaboration with Barron Trump, Donald Trump's son. The evidence includes on-chain transactions and conversations between Martin and Barron. However, the truth is not yet fully established, and there are conflicting reports and bets regarding the authenticity of the association between Donald Trump and the token's creation. The situation highlights the complexities and potential risks of the crypto world, where anonymity and speculation can fuel intrigue and potential misinformation.
Ethereum SEC investigation: The SEC officially closed its investigation into Ethereum, ending fears of it being labeled a security and boosting confidence in the crypto industry
The SEC has officially closed its investigation into Ethereum, marking a major win for the Ethereum project and the crypto industry as a whole. This comes after a year-long investigation into potential securities violations, which many believed could have labeled Ethereum as a security. However, the crypto community's political activism and pushback against the SEC played a significant role in the investigation's closure. Meanwhile, Bitwise is making a big push into the traditional financial world with its Ethereum ETF, seeing Ethereum as a key entry point into the crypto market. Despite this positive news, there are still vulnerabilities in the crypto industry, as shown by a recent incident involving Kraken and a lackluster security audit. Overall, the crypto industry continues to face challenges but also makes strides forward, demonstrating the importance of community activism and innovation.
Cryptocurrency exploits and ethical dilemmas: Exploiting vulnerabilities in cryptocurrency exchanges can lead to ethical dilemmas and legal consequences, highlighting the need for responsible disclosure and ethical hacking practices.
The cryptocurrency industry is grappling with ethical and legal questions surrounding security research and exploits. A recent incident involving a cybersecurity firm, Sertik, exploiting a vulnerability in Kraken exchange to withdraw $3 million raised these concerns. While Sertik initially intended to disclose the vulnerability responsibly and earn a bug bounty, they instead took an excessive amount of funds and demanded a larger reward, leading Kraken to interpret it as theft. The incident has sparked strong reactions from industry experts, with many condemning Sertik's actions and advocating for responsible disclosure and ethical hacking practices. Meanwhile, the use of decentralized technologies and Layer 2 solutions like Mantle, Cartesi, and Cello continues to gain traction as they offer more expressive building blocks and scalability for developers and users in the Web3 space.
Crypto and Physical World Intersection: The crypto space is witnessing an increasing intersection with the physical world, with developments like tokenization of real-world assets on different blockchains and politicians expressing interest in crypto mining
While using Tornado.cash on Polygon for obfuscation is still legal, it's important to note that different contract addresses are involved, and it's the specific address that may or may not be on sanctions lists. Additionally, some real-world assets, such as web2 icon domain names and gold, are being tokenized on different blockchain platforms like Optimism and Aloy. For instance, 3DNS is registering web2 domains as NFTs, while Tether is tokenizing gold. These developments showcase the growing intersection of the digital and physical worlds in the crypto space. Another notable event is Donald J. Trump's explicit statement about wanting all remaining bitcoins to be mined in the United States, potentially indicating a shift in political stance towards crypto.
Bankless community voting: Bankless community members can propose and vote on podcast topics and guests, demonstrating the project's collaborative and inclusive nature
The Bankless community is actively engaging its members in decision-making processes through community votes. Recently, they held a competition where citizens could propose and vote on a podcast topic and guest. The winning proposal will result in a podcast episode produced by the Bankless team. This is a unique way for the community to have a say in the content they want to engage with, demonstrating the power and responsibility that comes with being a Bankless citizen. The submission phase is currently open, and the voting period will begin in two weeks. This innovative approach to community involvement is a testament to the collaborative and inclusive nature of the Bankless project.
