Podcast Summary
Bankless 2.0 Launch and Market Downturn: Bankless 2.0 launches with a new website, experience, and media company. The crypto market experiences a downturn due to the Fed's interest rate hike, causing Bitcoin and Ethereum to drop. Rhino Fi, a DeFi app, is introduced as an alternative to traditional finance platforms.
Today, March 10, 2023, marks the launch of Bankless 2.0, a new era for the crypto community with a revamped website, experience, bank list, and media company. The bull market is also said to have started. Other notable news includes the Silvergate liquidation event, Elizabeth Warren's targeting of Binance, and the SEC taking an L. The markets saw a downturn, with Bitcoin dropping 8.7% and Ethereum 7.3%. The Fed's decision to raise interest rates is believed to be the cause. Rhino Fi, a one-stop DeFi app, was introduced as an alternative to traditional finance platforms. Despite the market's current state, the speakers remain optimistic and encourage listeners to check out Bankless.com for more information.
Crypto Market Facing External Challenges, But Optimistic for Long-Term: Despite short-term volatility from external factors, the crypto market is optimistic for long-term growth as regulatory uncertainty and rising interest rates subside.
The crypto market is experiencing short-term volatility due to external factors such as regulatory uncertainty and rising interest rates. These external forces are keeping the price of cryptocurrencies suppressed, but the market's equilibrium is for crypto to rise. The speakers believe that as soon as these external forces subside, the crypto market will experience a bullish trend. They also discussed the current prices of Bitcoin and Ethereum, and the fact that the total crypto market cap is just below a trillion dollars. The Fed's chair Powell's recent statements indicating a tougher path for rate hikes has added to the market's volatility. The speakers expressed their views on the ongoing debate between Powell and Warren regarding the need to tighten monetary policy versus the potential impact on jobs and the economy. Overall, the crypto market is facing challenges but remains optimistic for the long-term.
Political Debate on Inflation and Employment: Politicians challenge Fed's approach to inflation, arguing against job losses from rate hikes, while the Fed aims to control inflation and balance employment concerns. Economic conditions and political influence add complexity.
The ongoing debate between politicians and the Federal Reserve, specifically regarding inflation and employment, is a complex issue with significant implications. While the Fed aims to control inflation by raising interest rates, which could potentially lead to job losses and a recession, politicians argue that this approach may not be necessary and could harm working people. However, it's important to note that inflation and unemployment are not the only economic concerns, and fiscal policy, including government spending and debt, also plays a role in the economy. Ultimately, there is pressure on the Fed to address inflation, but finding a solution that balances both inflation and employment concerns is a challenge. The debate also highlights the political influence on monetary policy and the potential for conflict between different branches of government. For crypto, this means continued uncertainty and potential volatility in the market as economic conditions evolve. The ongoing debate underscores the importance of a comprehensive approach to economic policy that considers the interplay between fiscal and monetary policy and the long-term consequences of various economic decisions.
Record credit card debt vs. Tether surge and Silvergate liquidation: Americans carry more credit card debt than savings, while Tether sees a surge due to Binance's BUSD outflows. Silvergate announces liquidation, and the SEC's stance against crypto exchanges is a topic of debate. Kraken sponsors Bankless 2.0 and Metamask Learn launches to help onboard newcomers into web 3.
Americans are carrying more credit card debt than savings, with credit card debt reaching a record high and mortgage rates increasing to 7.1%. Meanwhile, Tether (USDT) is experiencing a surge due to outflows from Binance's BUSD, with Tether's total value reaching $71 billion. However, the stability and backing of Tether remain questionable. Additionally, crypto-focused bank Silvergate has announced voluntary liquidation due to industry and regulatory developments, with all deposits set to be fully repaid. The SEC's stance against crypto exchanges, such as Binance, is also a topic of discussion, as some believe the tide may be turning against the regulatory body. Furthermore, the launch of Bankless 2.0 is the biggest news of the week in the crypto space. Kraken, a leading crypto exchange, was highlighted as a strategic sponsor for 2023, emphasizing its commitment to security, transparency, and client support. Metamask Learn, an open educational platform about crypto, was also introduced to help onboard people into the world of web 3 in a jargon-free and friendly way.
Fears of a Bank Run at Crypto-Friendly Silvergate: Despite regulatory scrutiny and external pressures, crypto banking isn't experiencing a run like FTX, and every DeFi app in the crypto world remains solvent.
The recent scrutiny on crypto-friendly bank Silvergate, which had $11 billion in assets compared to Signature Bank's $114 billion, has led to fears of a bank run. Regulators, including the FDIC, have been evaluating the bank's compliance with financial laws and safety and soundness obligations. Some in the crypto community believe this is a result of external forces, such as regulators and politicians urging people to withdraw funds from crypto banks. Ryan's perspective is that we live in a fractional reserve banking system where banks operate on faith, and a run on the bank can occur if everyone decides to withdraw their money at once. He also noted that Silvergate could have had stricter AML/KYC policies and risk management. However, he doesn't think this is an "FTX-type situation" and that there's been a run on the bank, perpetuated in part by regulatory and congressional influencers. This is part of a larger trend of efforts to discredit crypto and crypto banking, which some see as the continuation of Operation Choke Point. It's important to remember that crypto and crypto banking are not the same thing, and every DeFi app in the crypto world is still solvent.
Regulatory Scrutiny on Crypto Industry: Risks and Consequences: Regulatory crackdown on crypto banks and exchanges due to fraud, money laundering allegations and systemic risks could limit US access and stifle crypto sector growth.
The crypto industry is facing increased scrutiny and regulation from authorities, with high-profile incidents like the failure of crypto-focused bank Silvergate and allegations of fraud and money laundering against Binance leading to calls for stricter oversight. Senators like Elizabeth Warren and Sherrod Brown have been vocal critics of crypto banks, warning of systemic risks and potential harm to consumers and taxpayers. These regulators' actions, some argue, could stifle the growth of the crypto sector and limit access for US citizens. Meanwhile, Binance, one of the largest crypto exchanges, is under investigation for enabling money laundering and reducing KYC compliance checks. The outcome of these investigations could significantly impact the crypto market and its perception by the broader public.
Binance and TZ: Regulatory Concerns and Money Laundering: Regulatory tensions and unclear involvement of Binance in potential money laundering activities highlight the need for better centralized exchange regulation and the benefits of decentralized finance.
The relationship between TZ and Justin Sun, and Binance's alleged attempts to evade US regulations, have raised concerns about potential negligence in enabling money laundering and illicit activities on centralized exchanges. However, it's important to note that the extent of Binance's involvement and the accuracy of the reports are still unclear. This situation highlights the need for better regulation of centralized exchanges while also acknowledging the benefits of decentralized finance as a self-sovereign option for individuals. The ongoing tensions between regulators and the crypto industry create a complex and frustrating landscape, with both sides having valid concerns. The SEC's recent actions against Voyager's sale to Binance US further illustrate the regulatory challenges in the crypto space. Ultimately, a collaborative approach between regulators and the industry is necessary to address these issues and ensure the long-term growth and integrity of the crypto ecosystem.
Voyager's Restructuring Plan Approved, Grayscale vs SEC Update, Coinbase News, and Earnify for Airdrops: Judge approves Voyager's restructuring plan for 73% recovery, Grayscale faces SEC skepticism, Coinbase introduces new features, and Earnify helps users claim unclaimed airdrops
The US bankruptcy judge's approval of Voyager's restructuring plan brings hope for approximately 73% recovery for impacted customers. This decision came after 97% of Voyager account holders voted in favor of the plan. Meanwhile, in the Grayscale versus SEC case, judges are expressing skepticism towards the SEC's argument, questioning why they haven't allowed a spot market Bitcoin ETF to address a $4 billion gap caused by the discounted GBTC trust. The court system is acting as a crucial check and balance, requiring the SEC to explain their reasoning. Additionally, Coinbase is making waves with upcoming news, including Tornado Cash 2.0, Uniswap Wallet, and the highly anticipated Bankless 2.0. The ease of use offered by Uniswap, such as its fiat on ramp and NFT aggregator, continues to make it a go-to platform for users transitioning from traditional finance to the decentralized world. Finally, Earnify is a useful tool for those looking to claim any unclaimed airdrops from the last bull market.
Tracking crypto airdrops and financial opportunities with Earnify and Bankless 2.0: Users can use Earnify to stay informed about new airdrops and upgrade for additional features, while Bankless 2.0 offers access to crypto-native media content and native POAP minting through crypto payments
Earnify is a platform that helps users keep track of airdrops and other financial opportunities related to their crypto wallets. It notifies users via email when new airdrops become available, and users can upgrade to a premium version for additional features like setting reminders for multiple wallets and accessing exclusive airdrops. Bankless 2.0, on the other hand, is a new crypto-native media company website where users can access and consume all of Bankless's content, including podcasts, articles, and daily briefs. The site also allows users to pay and log in with crypto, and it features native POAP minting. Both platforms offer unique value to crypto users and represent exciting developments in the Web 3 space.
Exploring solutions beyond Ethereum Layer 1 and Bitcoin: Coinbase introduced Wallet as a Service, lowering barriers for crypto adoption, and acquired One River Digital Management to bridge institutional investors and crypto industry.
That the Axelar Interoperability Conference highlighted the importance of layer 2 solutions, eigenlayers, and cosmos content, as the focus was on everything outside of Ethereum Layer 1 and Bitcoin. A notable development was Coinbase's introduction of Wallet as a Service, which allows companies to create and deploy fully customizable on-chain wallets, making it easier for users to access web 3 without the need for complex authentication methods. This infrastructure lowers the barrier for crypto adoption and increases the accessibility of wallets across the internet. Additionally, Coinbase's acquisition of One River Digital Management bridges the gap between institutional investors and the crypto industry. Overall, these advancements demonstrate the industry's continuous efforts to make crypto more accessible and easier to use for a wider audience.
Shifting the narrative of crypto from quick riches to long-term vision: Crypto industry is working to improve finance perception, tackle confusion in business days, introduce PR campaigns, and offer privacy tools to distinguish users from sanctioned individuals, while navigating regulatory focus and pushing for a free, open internet.
The crypto industry is working to improve the perception of finance and banking by offering better solutions through decentralized technologies. The discussion touched upon the confusion surrounding business days and bank holidays, and the frustration with traditional finance systems. The introduction of PR campaigns, such as Coinbase's ad, aims to shift the narrative from quick riches to a long-term vision of updating the financial sector. Additionally, the topic of privacy and anonymity in crypto was discussed, with Tornado Cash and its alternative, privacy pools v zero, being mentioned. These tools allow users to prove their innocence and distinguish themselves from those on sanction lists, potentially defanging the argument for making such privacy technologies illegal. The conversation also highlighted the ongoing regulatory focus in the crypto space and the innovative steps being taken, such as Uniswap Labs' mobile wallet. The overall sentiment was one of optimism and a desire to push boundaries and create a free, permissionless, and open internet.
Rocket Pool's mini pools lower collateral requirement and increase participation: Rocket Pool's mini pools reduce collateral from 16 ETH to 8 ETH, allowing more people to stake and increasing node operator fees.
Rocket Pool, a decentralized Ethereum staking solution, is launching mini pools, which lower the collateral requirement from 16 ETH to 8 ETH. This increases capital efficiency and allows more people to participate in the network. Rocket Pool's mini pools also enable node operators to charge higher fees, increasing their yield. Additionally, Ethereum is now available on Euler, a lending and borrowing marketplace, and there's a rumor of an upcoming Arbitrum airdrop. Cosmos, another blockchain project, is also making strides towards becoming more centralized and Ethereum-like by giving the green light to interchain security, making Cosmos Hub the central security provider for other app chains that opt-in. Overall, these developments show progress in the decentralized finance (DeFi) and blockchain space, with more efficient staking solutions and interconnected networks.
Exploring the Differences in Layer 2 and Layer 3 Solutions between Ethereum, Cosmos, and Bitcoin: Ethereum and Cosmos have unique approaches to layer 2 and layer 3 solutions, with Ethereum utilizing its native currency and Cosmos hiring Atom holders as validators. Bitcoin's sovereign rollups represent a trustless solution, but their classification remains debated.
While Ethereum and Cosmos have different approaches to building their respective layer 2 and layer 3 solutions, both are focusing on shared security and interoperability. Cosmos is allowing developers to hire Atom holders as validators for a fee, creating a mercenary-like system, while Ethereum is the native currency for its cryptoeconomic system. Bitcoin, the first cryptocurrency, is also considered a token or a coin depending on perspective, and it's now possible to run sovereign rollups on Bitcoin, which is a more trustless solution compared to sidechains. The debate continues on whether these sovereign rollups truly qualify as rollups or something else, as they don't use zk-proofs but instead rely on validity proofs. Ultimately, these developments demonstrate the ongoing innovation and evolution in the blockchain space as projects strive to improve scalability, security, and interoperability.
A shift in Bitcoin narrative control: The Bitcoin ecosystem is evolving, with a focus on new technologies and innovators, but concerns about centralization and precedent-setting behavior persist.
The Bitcoin ecosystem is experiencing a shift in narrative control from fundamentalist maximalists to builders and innovators. This is evident in the growing popularity of new technologies like the Ordinals protocol and the emergence of new Bitcoin builders like Casey Rodemore. However, the decentralized nature of Bitcoin was put to the test with Yuga Labs' controversial auction mechanism for Bitcoin NFTs, which raised concerns about centralization and precedent-setting behavior for potential spammers and attackers. Despite these concerns, the Bitcoin community remains bullish on the potential of new technologies and the pluralism they bring to the ecosystem. The demand for block space on the Bitcoin network has seen significant fluctuations, with recent spikes likely due to the Yuga Labs auction, but overall, the trend seems to be in favor of the Ordinals protocol. This new season of Bitcoin is bringing excitement and innovation, and the community is embracing the pluralism and new character arcs that come with it.
Amazon enters NFT market with real-world assets, Multi Coin Capital suffers massive loss, Judge rules on financial advice through emojis: Amazon enters NFT market linking digital tokens to real-world assets, Multi Coin Capital experiences a significant loss, a judge rules financial advice can be given through rocketship chart emojis but a shruggy emoji acts as a disclaimer
Amazon is entering the NFT market by tying digital tokens to real-world assets. The specifics of the initiative are unclear, but it's likely that high-value physical items will be paired with NFTs. This news comes after a significant loss for Multi Coin Capital's hedge fund, which suffered a 91.4% loss in 2022. The crypto market as a whole experienced a downturn that year, and Multi Coin Capital had significant exposure to FTX and Solana. The loss was a significant one, but not unprecedented in the volatile crypto market. In other news, a judge has ruled that financial advice can be conveyed through rocketship chart emojis, but a shruggy emoji acts as a disclaimer, nullifying any previous financial advice given. This ruling adds another layer of complexity to the already nuanced world of crypto and social media communication. Overall, these developments highlight the ongoing evolution of the crypto industry and the importance of staying informed and adaptable.
Exploring Music NFTs and Ethereum Scaling Solutions: New podcast 'Invest in Music' discusses music NFTs and Ethereum scaling solutions, like Scroll, Bankless, Phantom, and Arbitrum, bringing faster transaction speeds and lower gas fees to web 3 music investments and sharing.
A new podcast called "Invest in Music" has emerged, focusing on the world of music NFTs and the growing economy related to investing and sharing web 3 music. Ethereum Layer 2 scaling solution Scroll reached a significant valuation of $1.8 billion in a new funding round. Bankless, a popular podcast in the crypto space, is hiring a protocol engineer for layer 2 projects. The Phantom wallet, popular on Solana, is coming to Ethereum and Polygon, bringing its staking and NFT features. Arbitrum, a scalability solution for Ethereum, is accelerating the web 3 landscape with faster transaction speeds and lower gas fees. A listener asked about the possibility of chains using a stablecoin as the native token for gas. While Terra attempted this in a unique setup, it did not work out. Chains typically use their native tokens for gas due to economic and technical reasons, including security, decentralization, and incentive alignment for validators. Additionally, the podcast mentioned upcoming segments, including questions from The Nation, hot takes, memes, and bullish picks, as well as coverage of ETHDenver. Sponsors, such as Phantom and Arbitrum, were highlighted for their contributions to the show.
Ether's Role as Native Currency in Ethereum Blockchain: Ether is essential for securing Ethereum blockchain, incentivizes miners and stakers, and is economically and technically enforced through EIP-1559. New wallet feature, account abstraction, eliminates need for Ether in user wallets.
Ethereum's native currency, Ether, is essential for securing the Ethereum blockchain and enshrining the value of transactions. Ether's role as the native currency is economically necessary to incentivize miners and stakers and technically enforced through Ethereum Improvement Proposal 1559. While this restriction doesn't apply to layer 2 solutions, the use of stablecoins or other assets as gas is still subject to securities laws and other regulatory considerations. A new development in Ethereum's wallet design, account abstraction, allows users to have transactions paid for by other wallets, eliminating the need for Ether in their own wallets. This new feature expands the possibilities for users and shows the continuous evolution of Ethereum's technology.
Bitcoin's Ordinals project and Ethereum's influence: As Bitcoin explores block space utilization through Ordinals, it faces challenges similar to Ethereum's, including monetary policy and issuance. Ethereum's culture and technology have influenced Bitcoin, leaving builders behind in the conversation. Skeptics like Krugman may come to appreciate crypto's value through real-world experiences.
As Bitcoin embarks on its Ordinals project and faces increasing block space demand, it will encounter similar challenges Ethereum has dealt with over the past few years, including monetary policy, enshrining Bitcoin as the asset for block space, and issuance. This is because, as Wong John Ian pointed out, Ethereum's culture and technology have influenced Bitcoin's, and Bitcoin's fundamentalists have been in the lead, leaving Bitcoin builders behind in the conversation. Meanwhile, Paul Krugman's recent experience with Venmo serves as a reminder that even skeptics may come to appreciate the value of crypto when they experience the limitations of traditional systems. Ultimately, the freedom that crypto offers can't be achieved through centralized systems, and the bullishness on the bankless nation continues to grow.
Bankless community launches new platform: Bankless team launches new platform, expanding reach and impact, offering newsletter, premium membership, crypto features, and more resources for their growing community, symbolized by the launch of the inaugural POAP.
The Bankless community, which started from a solo attendee's experience at ETH Denver five years ago, has grown into a vibrant and united group of individuals with shared values. The recent launch of the Bankless.com platform, a result of the team's desire for more freedom and control, is a testament to their commitment to expanding the reach and impact of their movement. This new platform not only serves as a homebase for their newsletter, premium membership, and crypto features but also allows them to build on top of it and provide more resources for their growing community. The launch of the inaugural POAP (Proof of Attendance Protocol) is a symbolic gesture, representing the christening of their new "ship" and a way for existing subscribers to claim a piece of this collective journey. Overall, the Bankless team is excited about the possibilities this new platform brings and the opportunity to continue setting the path for their movement.
Security and exclusivity in crypto: POAPs require email addresses for minting: Crypto prioritizes security and exclusivity, POAPs ensure account ownership and prevent attacks, but come with risks and require email addresses for minting.
In the world of cryptocurrency and blockchain technology, security and exclusivity are prioritized over accessibility. This was highlighted in the discussion about POAPs (Proof of Attendance Protocols), which require users to have an existing account and provide an email address before being able to mint them. This measure is put in place to prevent potential attacks on the system. The conversation then took a light-hearted turn with a mention of Sam Bankman-Fried's toilet paper meme. Despite the risks involved in crypto, the excitement and adventure of being on the frontier were emphasized. The conversation ended with a reminder of the importance of imagination and the beauty of the new Bankless 2.0 website. It's important to note that this discussion should not be taken as financial advice, and as with all things crypto, there is a risk of losing the investment made.
