The Disrupt Weekend

“Flashbots aims to maintain a fair playing field for the extraction and democratization of MEV by reducing entry barriers to allow anyone to participate. Without a MEV solution such as Flashbots, market forces would result in MEV extraction being monopolized by a small number of highly-capitalized entities.

Ethereum was built around the fact that miners can run neutral software out of the box that maximizes revenues and network security. Flashbots helps maintain this property in the face of MEV while also providing the ability for users to protect their transactions from front running, sandwiching, and other risks.

Prior to Flashbots’ launch in early 2021, the Ethereum network suffered from chain congestion due to bidding wars between bots. These bots have now mostly been pushed out of the transaction pool.

In Ethereum, over 90% of miners have adopted Flashbots; however, as we approach eth2 and the transition to PoS, adoption will reset to 0. As such, for the health of the Ethereum ecosystem, it is imperative that validators also adopt an MEV solution for Ethereum post-merge. To assist in this adoption, we are pleased to announce the Flashbots Eth2 Working Group.

Flashbots maximizes the MEV revenue received by validators while eliminating the need for validators to actively extract MEV. Running Flashbots significantly increases the reward rate for validators. We have estimated that at the current 250k validators (8m ETH staked) can expect increased validator rewards by approximately 60%.

The initial proposal for the Flashbots eth2 architecture called MEV-Boost is available for feedback on ETHResearch and the working group is moving forward to integrate and test the solution with eth2 clients.”

“The rise of the Metaverse and Web 3.0 are set to disrupt multiple sectors including the billion-dollar global fashion industry. As the world moves from physical to digital, traditional fashion design can transform into virtual wearables that can be leveraged in both augmented reality (AR) and in real life.

While Kaspar is aware that digital wearables are being leveraged in decentralized gaming environments today — such as the NFTs utilized in Decentraland — she explained that in the next two years wearable fashion will be more interactive. For instance, Kaspar recently demonstrated how virtual NFT earnings and other accessories can be worn during video interviews.

Kaspar further mentioned that a “wear-to-earn” model will thrive in AR environments. In order to build long-term relationships with consumers, Kaspar noted that designers will pay consumers to wear their virtual items. Kaspar believes that the wear-to-earn model will eventually be bigger than play-to-earn.

Brands will compensate customers for wearing pieces by giving them access to exclusive items or airdropping fashion pieces to their virtual wallets. The more time you spend using the avatar, the more players can earn.”

StarkNet is a permissionless decentralized Rollup operating as an L2 network over Ethereum. StarkNet allows any dApp to achieve unlimited scale for its computation, without compromising Ethereum’s composability and security.

Among other features, StarkNet Alpha enables general computation smart contracts that support composability, both with other StarkNet contracts and via L1<>L2 messaging with L1 contracts.

We invite you to start writing your own applications over StarkNet. If you are ready to deploy, please follow this onboarding process; created to ensure all developers are well aware of the preliminary state of the system.”

See Also: Bancor introduces new staking pools and instant impermanent loss protection

“When money was invented, it was impossible to accurately measure everything that went into making a product and even more impossible to display that information to everyone who ever came in contact with that product. Now it is technologically possible to record, track and report much more information than our computers can process.

The big question is: What should we be measuring? Below I give one example of what we could be measuring as a starting point for thinking about how the replacement for money could more accurately represent value. The example would be useful if the purpose of the economy were to optimally redistribute the resource commonly known as “food.” Communities and nations could optimize these types of measures to reduce hunger.

New “currencies” might track:

  • How many people went without a meal each day, based on region, town and neighborhood.
  • Distance food traveled. Distance could be a proxy for ecological impact, nutritional value and support for local producers.
  • Amount of food wasted in any given region.
  • Amount and location of food nearing its expiration date.
  • Crops that will go unused/unharvested for any reason (market forces, weather, shortage of labor).
  • Empty space in people’s cars traveling the route from the food about to expire to where people went without a meal yesterday.

It’s fairly easy to see how a combination of distributed ledger technology, self-sovereign identity, zero knowledge proofs and supply chain transparency could be combined to create a suite of measures that are simple yet indicative of the outcomes that people truly want in their economies.

While it’s not obvious how society outgrows money, it is obvious that we need to re-calibrate our value-measurement and resource-reallocation systems. Blockchain offers us the opportunity.”

“In its infancy, Ethereum has largely become host to marketplaces for trading and lending crypto assets (Uniswap and Aave) and buying or selling digital art (OpenSea). The introduction of second-layer platforms built on top of Ethereum, like Arbitrum and Optimism, and technological solutions like ZK rollups, will drag down transaction fees and open Ethereum to decentralized social media platforms like Reddit.

Crypto assets, including ether, are still much more reflexive to demand than stablecoins and dollars, making them a better investment than a currency (for now). However, the larger the Ethereum ecosystem grows, the better the currency ether becomes.

Currently, speculators far outweigh actual blockchain users, but a blossoming ecosystem is changing that as ether can be used for DeFi, NFTs, validation, social media and more. In fact, in Coinbase’s Q3 earnings report, the company highlighted that it has seen a major shift toward people actually making use of blockchain technology by taking their tokens off exchanges.

If today’s trends are carried into tomorrow’s future, the world will be more financialized than ever. It’s too early to tell whether this will be a net positive for humanity, but crypto and DeFi have given a glimpse into the good and bad that come with tokenization.

Airdrops and equity distribution (when done correctly) have distributed wealth much more freely and fairly than corporations have done, historically. However, the other side is equally true as scams and exploits show how greed can be magnified through tokenization and the anonymous economy.

For good or bad, the definition of money will continue to become murkier as the digital economy grows, just as it did with the creation of credit cards and online payments and the move away from paper money.”

See Also: The World Bitcoin Will Build

“Emerging economies represent a huge opportunity for Ethereum.

I had doubts about whether EF would work well with a team from the United Nations. I felt they were a very traditional, big organization with conventional ways of doing things. But Chris shared a couple of lists of goals that they wanted to achieve using blockchain technology, and that blew my mind.

He and his team understood the importance of public blockchains, as well as the tradeoffs of various protocols. This was the moment when I felt confident that there was an opportunity for both groups to have an impactful partnership. UNICEF has a network, and resources that we did not have, with ongoing work in more than 190 countries, and collaboration with diverse stakeholders including NGOs, businesses, startups, and governments. They were also looking for new ways to change from the inside, and to embrace innovation.

The CryptoFund is the first vehicle in the entire UN ecosystem – and possibly the public sector at large – to receive, hold, and use crypto, and it makes investments in support of technology startups within developing countries that are aimed at improving the lives of children. These startups receive tokens and use them without converting to fiat currencies, within the goal of developing open-source, digital public goods. To date, 2,527 ETH and 8 BTC have been contributed, and 18 investments have been made.

At the same time, the CryptoFund is trying to tackle a key challenge for organizations like UNICEF – one of transparency and accountability. Traditionally, donors and other stakeholders don’t have access to a real-time, tamper-proof view of how a charity spends its money. In the case of the CryptoFund, every transaction the CryptoFund makes is visible on its website with a corresponding link containing immutable transaction details on blockchain explorers.

I cannot emphasize enough how influential this project has been – not only for the humanitarian sector and governments, but even to the world. It has raised awareness and let the public see how it is possible for a large, established and international organization to adopt public blockchains in efficient and transparent ways. I have heard so much positive feedback and truly hope that other traditional organizations like UNICEF feel more confident making use of these public goods too.”

See Also: Kimbal Musk’s Big Green DAO Is a Big Step for Web 3

“The “FTX’s Key Principles for Market Regulation” blog consists of a 10-points proposal aiming to help U.S. regulators build a crypto-centric regulatory framework. The policy recommends the market-structure choices made by several leading crypto exchanges and suggests its implementation across all jurisdictions.

Out of the 10 key principles, one of the recommendations calls for an alternative regulatory approach that proposes a unified regulatory regime for spot and derivatives marketplaces. FTX also explains the need for a direct membership market structure, i.e, allowing entities to perform regulated trades without the involvement of a third party. FTX also pointed out the need for regulating stablecoin issuance:

A platform operator that permits the use of stable coins for settlement of transactions should be required to explain the standards the platform operator uses in deciding which stable coins it permits for such purposes.”

See Also: FTX to Seek $1.5B in New Funding Round at $32B Valuation: Report

Bitcoin Holds 50wk SMA as Cryptos Flash Crash

“The world’s largest cryptocurrency began to decline during the US cash session to about $54k-$53k handle by late afternoon as near unanimous consensus emerged around a Fed announcement that Powell would announce a much faster taper on Dec 15. Then at midnight into the early hours of Saturday morning, during the traditionally illiquid Asian session when things normally go splat in the night for cryptos as one or more super levered Asian momentum chasers blow up, Bitcoin suffered a massive liquidation and crashed down to the $42k level. Price has recovered some, now trading around $47k.

The action overnight was leveraged buyers of Bitcoin being flushed out. According to Coinglass, over 410K crypto accounts were liquidated in the past 24 hours totaling $2.6 billion with the largest liquidation being $27 million.

We note that while Ethereum (and every coin) has been crushed, it has outperformed Bitcoin in this carnage and has pushed up to its strongest relative to the larger market cap coin since 2018.

It seems that investors are taking ETH as a hedge here.

The plunge is just another sign of risk aversion sweeping across global markets. Spiking inflation is forcing central banks to tighten monetary policy, reducing liquidity for risk assets. The omicron variant of COVID-19 has also compounded risk aversion as it derails the global economic reopening.

That said, El Salvador President Nayib Bukele is using the dip to buy even more Bitcoin.”

See Also: Bitcoin Drops $9K in an Hour on Spot Market Selling; El Salvador Again Buys the Dip

4 December

“Bitcoin was trading at the lower end of its weeklong trading range around $53,000 at the time of publication. BTC is up about 2% over the past week compared to a 7% gain in ether and a 13% gain in Solana’s SOL token over the same period. The dispersion in weekly returns suggests that alternative cryptocurrencies (altcoins) are starting to outperform.

On a relative basis, ether is poised to outperform bitcoin if a breakout above 0.08 in the ETH/BTC ratio is confirmed next week. For now, the options market remains bullish on ether.

This [pending] breakout is essential because it represents a resistance line going back to the 2017 top when one ETH was 0.15 BTC. The monthly close of the ETH/BTC chart was the highest bullish close in 45 months.

Some analysts are paying close attention to the slower pace of global monetary easing, which could reduce investors’ appetite for speculative assets such as cryptocurrencies and equities.

In our view, the speed with which global liquidity contracts is the most important factor for cryptocurrency performance in the weeks ahead and possibly even into early 2022.”

See Also: Academic research claims ETH is a ‘superior’ store of value to Bitcoin

Senator Pat Toomey, one of the ranking members of the Senate Banking Committee, has suggested Congress step in with legislation should the Securities and Exchange Commission (SEC) be unable to provide sufficient guidance on cryptocurrencies.

Toomey said he was dissatisfied with the answers SEC chair Gary Gensler had provided on the differences between securities and commodities in regards to token projects and stablecoins. The senator questioned some of the SEC’s seeming disparities in enforcement actions.

Chairman Gensler’s failure to provide clear rules of the road for cryptocurrencies underscores the need for Congress to act.”

See Also: SEC Chair Gensler: Bitcoin Competes With The US Banking System

“Indian news outlet NDTV reported on Thursday that it had obtained details of a cabinet note circulating in the government regarding the proposed crypto bill. The note contained suggestions to regulate cryptocurrencies as crypto assets, with the Securities and Exchange Board of India (SEBI) overseeing the regulation of local crypto exchanges.

According to Prabhu, investors will be given a specific time frame to declare their crypto holdings and transfer them to exchanges regulated by the SEBI, which suggests that private wallets may be banned.”

See Also: South Korea Delays Plans to Tax Crypto to 2023

Blockchain Visionary Vinay Gupta on his Predictions Mass Adoption and Best Uses Cases for NFTs

“On Friday, WisdomTree, a financial institution with over $76 billion in assets under management, announced it had created four cryptocurrency indices in the United States and Europe to provide diversified portfolio exposure to investors. The move comes in collaboration with Ritholtz Wealth Management, OnRamp and Gemini.

As interest in crypto assets remains high and becomes a bigger focus for investors, we will continue investing in our platform and capabilities to support investors in this fast-moving market.”

“Securitize, a technology provider for issuing tokenized securities, is bringing its system of identity verification to decentralized finance (DeFi) as the world of “degens” inches closer to Wall Street. Securitize is looking to join Fireblocks in offering ID tools for Aave Arc.

A community vote among stakeholders in Aave Arc, a KYC-compliant and institutional-grade version of the DeFi lending platform, will take place over the weekend.”

Spotify and Apple Music reportedly cut 75% from musicians’ revenues together with the cut paid to labels. New technologies like nonfungible tokens (NFT) will likely help artists grab back their fair share, Saxo Bank predicted.

The analyst noted that NFT-based music streaming projects are likely to kick off in 2022, including initiatives such as Audius, a blockchain music platform backed by Katy Perry, The Chainsmokers and Jason Derulo.

In contrast, the future of traditional streaming platforms such as Spotify is “bleak,” according to Saxo Bank. The company predicted that Spotify shares would tumble 33% in 2022.”

3 December

Goldman Sachs is among a handful of tier-one U.S. banks figuring out how to use bitcoin as collateral for cash loans to institutions. It’s an opportunity that lays the groundwork for more integrated crypto prime brokerage services in the future. It’s also a continuation of Wall Street’s relatively sudden embrace of a $2.7 trillion asset class.

Emulating tri-party repo type arrangements (a way of borrowing funds by selling securities with an agreement to repurchase them, involving a third-party agent), banks are exploring ways to follow the same path of not touching bitcoin, like other synthetic products.

Goldman is not alone; a handful of big banks are following the trail blazed by crypto-friendly banks Silvergate and Signature, both of which announced bitcoin-backed cash loans earlier this year. Coinbase and Fidelity Digital Assets were cited as potential custodians the banks were in discussions with.

We’ve probably spoken to half a dozen big banks about [bitcoin-backed loans].”

See Also: Goldman Sachs Sees Crypto Options Markets as ‘Next Big Step’ for Institutional Adoption

Mercado Libre, Latin America’s largest e-commerce company by market value, is integrating Paxos’ blockchain infrastructure to allow users in Brazil to buy, sell and hold cryptocurrencies. Mercado Pago’s new initiative will provide crypto and stablecoin access to more than 200 million Brazilians.

Starting later this month, users of Mercado Pago, Mercado Libre’s digital wallet, will be able to buy and sell bitcoin, ether and the stablecoin Pax dollar (USDP). Paxos will handle crypto trading and custody for Mercado Pago users in an arrangement similar to its integration with PayPal in late 2020.

This will accelerate mainstream adoption of cryptocurrency and stablecoins across the continent.”

“The Commission concludes that BZX has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirement that the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices’ and ‘to protect investors and the public interest.’

The decision comes seven months after the regulator said it would start evaluating the WisdomTree Bitcoin Trust, which the ETF giant filed with the Cboe BZX exchange in March. The agency delayed its decision in June and again in July.”

See Also: Fidelity Canada officially launches Bitcoin ETF and Bitcoin Mutual Fund
See Also: First NFT-focused ETF lists on NYSE Arca

“Electronic music producer deadmau5 and rock band Portugal. The Man are looking to non-fungible tokens (NFTs), not music streaming services, to sell their next platinum record. The artists’ newest song “this is fine” is being sold exclusively as a collection of 1 million NFTs on the Mintbase NFT marketplace, which runs on the Near blockchain, with tokens going on sale Thursday.

In a rarity for a music landscape dominated by platforms like Apple Music and Spotify, the artists’ election to circumvent streaming services, and the largely unfavorable revenue sharing that accompanies them, is indicative of how musicians have been willing to experiment with blockchain to disrupt industry standards.

It’s not about me working to better my bank account, it’s about all artists working to gain more control of their work.”

“Speculation in online channels is that the hack is the result of an exploit in the user interface, and not in the core protocol contracts. Many affected users report that while claiming yield farming rewards and interacting with Badger vaults, they noticed their wallet providers prompting spurious requests for additional permissions.

It looks like a bunch of users had approvals set for the exploit address allowing [the address] to operate on their vault funds.”

See Also: Square Stock Drops 6% Amid Block Rebrand

2 December

One of the world’s largest asset managers is set to launch a spot Bitcoin ETF in Canada this week. The new fund will be actively managed and will directly obtain physical Bitcoin instead of getting exposure to BTC through a derivative instrument.

This should be embarrassing for the SEC that one of America’s biggest, most storied names in investing is forced to go up North to serve its clients.

Earlier this year, Fidelity Digital Assets, the firm’s crypto-focused arm, conducted a survey among institutional investors, which concluded that 70% of respondents intend to buy or invest in digital assets in the near future.”

See Also: Bitcoin Futures Trading Rises on CME as FTX US, Prepare to Enter Market

“Ross Ulbricht, the founder of the defunct Silk Road marketplace, announced via a Medium post that he is auctioning a line of NFTs detailing various points in his life, from childhood to his time in prison.

Minted on Ethereum, the Ross Ulbricht Genesis Collection will launch Thursday at the 2021 Art Basel event in Miami. The collection will include ten items from Ulbricht, including artwork, writings, and original animation. The website, run by Ulbrich’s mother Lyn, says the NFT launch will act as a fundraiser for both prisoner support and Ulbricht’s freedom efforts.

Ulbricht says while his future looks bleak, he wants to do something to heal the damage he sees around him: ‘Prison shatters families. It shatters communities. And the kids are the ones who suffer.'”

See Also: China’s central bank proposes to monitor metaverse and NFTs

“Bitcoin briefly dropped below $57,000 during U.S. trading hours on Wednesday after news broke that health officials in the country confirmed the first case of the new coronavirus variant, Omicron, in California. The drop wiped out bitcoin’s earlier gains when it increased above $59,000 from a low at roughly $55,920 a day ago. Stocks also fell, with the S&P 500 dropping by 0.49%.

Bitcoin’s (BTC) price momentum is improving, which could limit further downside between the $53,000-$55,000 support range. Support remains intact given the upward-sloping, 100-day moving average. This indicates a positive intermediate-term trend, which could encourage additional buying on pullbacks.

Buyers will need to make a decisive move above $60,000 resistance to yield an upside target toward the all-time price high of nearly $69,000.”

See Also: Analysts Expect Positive Bitcoin Returns in December
See Also: JPM’s Kolanovic Suggests Omicron Could Be Positive For Risk And “End The Covid Pandemic”

“Ethereum developer Marius van der Wijden announced a new program to get the community involved in merge testing that caters to three tiers: non-technical users, developers with limited experience in blockchain, and highly technical and experienced blockchain developers.

For non-technical users, the self-guided program provides them with tasks, such as setting up consensus layer clients, reporting failures and sending transactions. Technical users can select objectives, such as running their own validators, testing and deploying contracts, and setting up their own testnets, while highly technical users can review the specifications, propose invalid blocks, and split the network by voting on invalid blocks.

According to the Eth2 page on, the Beacon Chain merge will have been officially completed by Q1 or Q2 of 2022.”

FTX’s Sam Bankman-Fried, Circle’s Jeremy Allaire, Bitfury’s Brian Brooks, Paxos’ Charles Cascarilla, Stellar Development Foundation’s Denelle Dixon and Coinbase Inc.’s Alesia Haas will speak at the session entitled “Digital Assets and the Future of Finance: Understanding the Challenges and Benefits of Financial Innovation in the United States.”

Waters has been an outspoken critic of crypto largely because of its unregulated nature.”

Square has announced it renamed itself Block in an apparent reference to blockchain—the technology that undergirds Bitcoin. Not that the company is expressly stating that. Block, it says, ‘creates room for further growth.’

We built the Square brand for our Seller business, which is where it belongs. Block is a new name, but our purpose of economic empowerment remains the same. No matter how we grow or change, we will continue to build tools to help increase access to the economy.

Square has been experimenting with a number of crypto-centric ideas. In November, it released a white paper for a decentralized exchange for trading Bitcoin and other assets. In October, Dorsey said the company was looking into building Bitcoin mining machines to go along with a hardware wallet that’s already under development.

As part of the name change, Square Crypto–a wing of the company that propels Bitcoin use cases—will be renamed Spiral.”

See Also: Croatia’s largest supermarket chain now accepts crypto

“Before the update, only a narrow segment of crypto companies was able to advertise on Facebook. According to the updated policy, the following crypto products and services can now run ads on Facebook:

  • Cryptocurrency exchanges and trading platforms
  • Cryptocurrency lending and borrowing services
  • Cryptocurrency wallet
  • Cryptocurrency mining infrastructure

In addition, products and services related to blockchain technology, crypto news, education, payment methods and merchandise can be advertised.

[O]ver the years the cryptocurrency landscape has matured and stabilized and experienced an increase in government regulation, which has helped to set clearer responsibilities and expectations for the industry.”

1 December

“Overall, trading conditions were choppy across global markets after the U.S. Federal Reserve Chair Jerome Powell suggested that monetary policy could tighten faster than expected.

Ether, the world’s second-largest cryptocurrency by market capitalization, was approaching $4,800, near its all-time high, and was up about 5% over the past 24 hours. BTC was roughly flat over the same period. Technical indicators suggest further upside is likely for ether relative to bitcoin.

The ETH/BTC ratio is attempting to break above a five-month trading range. Two consecutive daily closes above 0.080 could yield further upside in ETH/BTC.

Bitcoin’s market capitalization relative to the total crypto market capitalization, or dominance ratio, has declined about 10% over the past two months to the lowest level since September. The decline in BTC’s dominance reflects the recent outperformance of alternative cryptocurrencies (altcoins).”

See Also: Bitcoin Turns Lower as Fed Chair Suggests Inflation No Longer ‘Transitory’

“Yellen said stablecoins could lead to greater efficiencies and contribute to easier payments, but required proper regulation.

There are significant risks associated with them, including risks to payment systems and risks related to the concentration of economic power.

The Treasury Secretary also said she agreed with current FinCEN guidance that crypto firms and providers that don’t custody customer funds should not be regulated.

Yellen noted that in its updated guidance, the FATF clarified that its intent was not to regulate as virtual asset providers (VASPs) people or providers that ‘provide only ancillary services or products to a virtual asset network, including hardware manufacturers, providers of unposted wallets, software developers, or miners that are not otherwise engaged in covered activities.’

See Also: Novi Crypto Wallet Chief David Marcus Leaving Facebook

“Tornado Cash is a fully decentralized Ethereum (ETH) mixer protocol. Tornado Cash masks the path that tokens such as ETH take from sender to receiver, providing completely private transactions without the need to use privacy-focused coins.

Layer two networks on Ethereum boast faster transactions and cheaper fees while still benefiting from the security and decentralization of Ethereum. The deployment onto Arbitrum will allow more users to perform private crypto transactions while avoiding Ethereum’s high gas fees. L2 transactions are expected to be around 95% cheaper than those on L1.

Arbitrum is currently the biggest L2 on Ethereum with $2.68 billion in total value locked, representing 39% of the L2 market share.”

The loans will range from $10,000 to $100 million in USDT and other currencies, and will carry an 8.8% fixed-term annual percentage rate. Customers can use crypto as collateral, and the loan terms will range from three months to two years.

Exchanges licensed by Hong Kong’s Securities and Futures Commission can provide services only to professional investors, meaning those with over HK$8 million ($1 million) in their portfolio.”

“Aarika Rhodes, a Democrat running to represent California’s 30th congressional district in the U.S. House of Representatives, has begun to accept campaign contributions in Bitcoin using the Lightning Network. An elementary school teacher, Rhodes said she plans to use her time in Congress ‘fighting to keep Bitcoin innovation‘ in the United States.

During his time in office, Brad Sherman has made several anti-crypto statements, including calling for a ban on digital assets, and referring to supporters of initial coin offerings as “charlatans and scammers.””

30 November

“Bitcoin led the crypto market to its third straight day of gains, after a steep drop by more than 8% on “Black Friday.” The No. 1 cryptocurrency by market capitalization rose to nearly $59,000 on Monday before it sank toward the $58,000 level again.

Bitcoin (BTC) is holding support above its 100-day moving average, currently around $54,200, as last week’s sell-off stabilizes. Short-term momentum is improving, although buyers will need to clear $60K to sustain the uptrend.

See Also: Bitcoin Bears Retreat as Traders Buy on Dips

The Kelly Ethereum Ether Strategy ETF is an actively managed fund that will invest in cash-settled Ether futures contracts traded on registered commodity exchanges. The CME’s current position limits for ether futures contracts are 8,000 contracts for an applicable month with each contract representing 50 ether.

In August, VanEck and ProShares suddenly withdrew their applications for their futures-based ether ETFs, which suggested they received pushback from the U.S. Securities and Exchange Commission, which regulates ETFs.”

See Also: WisdomTree Lists 3 Crypto Basket ETPs in Europe
See Also: Trillion-Dollar Investment Firm Invesco Launches European Spot Bitcoin ETP

“The Federal Reserve Bank of New York launched the New York Innovation Center (NYIC) to build and test new financial technology, including central bank digital currencies (CBDC), stablecoins and cross-border payments, the central bank division announced Monday.

The NYIC plans to focus on five so-called opportunity areas: supervisory and regulatory technology, financial market infrastructures, future of money, open finance and climate risk. Jerome Powell said the innovation center will foster collaboration and the sharing of expertise among central banks.

In particular, the partnership will support our analysis of digital currencies, including central bank digital currencies, help to improve our current payment system, with a particular focus on making cross-border payments faster and less expensive.”

See Also: Israel Is Stepping Up Its Central Bank Digital Currency Efforts: Report

MicroStrategy said it bought 7,002 bitcoins for about $414 million in cash during its fiscal fourth quarter.

MicroStrategy now holds 121,044 bitcoins worth about $3.6 billion with an average purchase price of about $29,534 each.”

See Also: Citi Veteran Launches $1.5B Crypto Fund With Algorand as First Strategic Partner
See Also: Galaxy Digital raises $500 million in convertible debt to fund business expansion

“Today, Budweiser will release its first series of NFTs, dubbed Budverse Cans: Heritage Edition. The series will span 1,936 individual NFT collectibles, referencing the year the company first started releasing beer in cans. Each NFT will feature elements of classic photos, ads, and design documents charting the history of the brand.

These NFTs will act as your key to the Budverse and can unlock exclusive benefits, rewards, and surprises.

The Budverse Cans will be sold at two rarity levels, with Core Cans available for $499 apiece and Gold Cans selling for $999 each. The company has confirmed that the NFTs will be minted on the Ethereum network and sold on leading NFT marketplace OpenSea. Budweiser has also changed its Twitter name to “beer.eth.”

“Many on social media speculated that Dorsey made the move so he can devote more time to crypto.

Some speculated that Dorsey may step up his crypto ambitions through his work at payments company Square, which he also founded and where he remains CEO. The editor of TechCrunch suggested this could be because Square—which is building a Bitcoin wallet—is better positioned than Twitter to take the lead on Web 3.

It’s an open question whether Dorsey’s departure will lead Twitter to turn away from its recent pivot to crypto, which has included tipping with Bitcoin and plans for NFT integration.”

See Also: Twitter’s New CEO Parag Agrawal: Good for Bitcoin?

The Disrupt Weekend

Human civilization is a massive experiment in coordination. Turns out, coordination is tricky. Kingdoms have risen and fallen, ancient religions so old they’re not known to man today have burned hot then sputtered out, nation-states have conquered and crashed, then conquered again. All of history has been a massive coordination effort.

Time and time again, people have tried different mechanisms to corral humans into working together for the common good. We’ve tried all forms: Monarchies, dictatorships, co-ops, democracies, republics, committees, and countless permutations. And while DAOs are just another form of coordination, they represent a unique opportunity: Coordination unfettered by demographic constraints.

Our situation at hand is markedly different from that of the coordination attempts of years past. Throughout all of human history, you had to be in power to try your hand at large-scale coordination. You had to be born with royal blood, deemed an ancient prophet, elected to office, or lucky enough to be in a constitutional convention to have any say in how societies organize. Human coordination—save for a few revolutions—has never been in the hands of the masses.

The Decentralized Autonomous Organization is the greatest governance and coordination experiment to gain real community traction in centuries.

We have—and are currently building—trustless, permissionless structures that allow anyone in the world to join an organization they believe in, put forth their talents, and earn money to do it. When I say anyone, I mean that in the strongest sense of the word: DAOs are agnostic to age, gender, race, ethnic background, economic status, nationality, residence, and any other demographic identifier that might prevent someone from working and earning money for something they believe in.

This is a big f—ing deal. These solutions aren’t just elegantly built atop code—they’re our first real shot at a universally equitable work environment. People have power in their hands, and this power is not being wasted. This power is busy building communities. It’s generating ideas. It’s shipping products.”

Transaction fees on L1 have been very high for months and there is greater urgency in doing anything required to help facilitate an ecosystem-wide move to rollups. Rollups are already significantly reducing fees for many Ethereum users, however even these fees are too expensive for many users. This document describes a pragmatic path, which unlocks data space for rollups as quickly as possible and adds additional space and security over time.

Step 1: Tx Calldata Expansion

If we want to give a short-term boost to rollup capacity and reduce costs without requiring the rollup teams to do any extra work, we should just decrease the cost of transaction calldata. EIP 4488 should increase data space available to rollups to a theoretical max of ~1 MB per slot and decrease costs for rollups by ~5x. It can be implemented far more quickly than the later steps.

Step 2: A Few Shards

At the same time, we can start doing the work to roll out “proper” sharding. The first natural piece to implement is the “business logic” of the sharding spec, but avoiding most of the difficulties around networking by keeping the initial number of shards very low (eg. 4). This would increase rollup data space to ~2 MB per slot (250 kB per shard * 4 shards, plus the expanded calldata from step 1).

The sharding spec itself is not exceptionally difficult; it’s a boilerplate code change on a similar scale to the recently released Altair hard fork, and so it’s reasonable to expect it could be implemented on a similar timeframe to Altair’s implementation and deployment.

Step 3: N Shards, Committee-secured

Increase the number of active shards from 4 to 64. This would increase rollup data space to ~16 MB per slot.

Step 4: Data Availability Sampling (DAS)

Add data availability sampling to ensure a higher level of security, protecting users even in the event of a dishonest majority attack. Once data availability sampling is fully introduced, the sharding rollout is complete.”

See Also: Announcing Grants for Advocacy Non-Profits

“While I’m extremely bullish on crypto in the coming decade, there’s a point for every crypto investor where they might have too much in it. Sometimes it’s good to take money off the table and make meaningful investments elsewhere so you’re protected in the instance of another multi-year bear market.

Many of us are all lost on the same question: “Where else would I put my money?”

The barbell strategy is an investment concept that suggests that the best way to strike a balance between reward and risk is to invest in the two extremes of high-risk and no-risk assets while avoiding middle-of-the-road choices.

Historically, storing cash in a high yield savings account would provide steady passive income, this strategy doesn’t cut it anymore. The average interest rate on a savings account is 0.06% APR. But worse, the total amount of US dollars in circulation has increased by 37% since 2020.

If your net worth did not increase by the same amount in that period, you lost to Jerome and the money printer – you need to generate a higher return than the rate the M2 money supply is expanding. Therefore, if you entrusted the U.S. government to preserve and grow your purchasing power with 10Y or 30Y treasuries, just as the boomers did for decades, you’re down by -23% against inflation.

Today’s cash strategy is to hold what you need for living expenses and perhaps a few months in liquid cash.

That brings us to equity markets. The U.S. stock market has a long history of sustainable and moderate returns, so it may feel like the most natural alternatives for many crypto natives. The problem is that it doesn’t really fit into the barbell strategy. You have the high-risk box already checked off with crypto. You want something lower risk and uncorrelated. And in this risk-on environment, correlations are largely the same. If there’s some major market correction (see the COVID crash), crypto and stocks are likely to go down together. They’re both risk-on assets. You’re getting lower returns with the same correlation. Not worth it.

So cash, stocks, and bonds are largely out of the picture. What’s left? The best answer that I’ve found is real estate. And I think when paired with crypto assets, this could be the best barbell strategy heading into the next decade. Real estate, gold, and Bitcoin are all hard assets that have scarcity games. Like Bitcoin, real estate is a non-sovereign scarce asset. The key difference is that one is digital and the other is physical.

Stocks, bonds, commodities, cash—all of these are becoming increasingly less attractive by the day, especially for those with significant exposure to crypto. Either the returns are too low or the correlations are the same. Investing has changed. With the government beginning to abuse the money printer, you can’t rely on the same investments that made the previous generations their wealth.

The best barbell strategy for the coming decade is playing the two scarcity games, digital real estate (bitcoin) and physical real estate (property). The investors that can play these two games well may likely become some of the most successful individuals in the world in the coming decade.”

The base, foundational layer of the metaverse is hardware. The metaverse is dependent on physical devices to access and interact with the metaverse.

Cryptographically secured microchips are a way for people to hold their own keys when it comes to hardware. ‘Through these chips you have a way to interact without an arbiter.’ By addressing individual ownership at the hardware level, these chips can then be embedded in virtually anything, for secure access to digital assets and digital lands.

Kong Land [DAO] intends to do this through “silicon locked contracts” (or SiLos) to address digital and physical asset ownership at the hardware level. SiLos are low-cost, durable, secure element microchips that are cryptographically linked to a smart contract on a public blockchain.

Embedding a SiLo microchip into any physical item transforms it into a crypto asset that can be verified on chain, as well as interacted with in real life. NFTs enable verified ownership of assets to port between the physical and digital, and back to physical, as well as genuine ownership of assets for interoperability between metaverses.

While traditional tech companies focus largely on bringing users into virtual worlds or augmenting reality with digital experiences, we envision a seamlessly intertwined metaverse that doesn’t rely solely on wearable headgear.

The rapid experimentation of blockchain-based DAOs as crypto-cities and states is demonstrating innovative ways to link the digital and the physical. Fundamentally, the battle between an open, decentralized, crypto metaverse and a closed, extractive, corporate metaverse comes down to the hardware, as to how people will access digital worlds.”

The project is governed by a Creative Commons CC0 “No Rights Reserved” license, which means anyone can use the Nouns name and characters to create anything. It’s in the public domain.

There’s Nouns merchandise sold by someone who doesn’t own a Nouns NFT, for example, and derivative projects that have generated millions of dollars in trading volume—and that’s allowed. In the same sense, anyone could take the Nouns brand and style and create their own movies, books, and toys.

The Nouns creators, or “nounders,” like to think of the project as a protocol or application layer for others to build upon. Ultimately, the genuine Nouns are the originals, as proven by the publicly-viewable Ethereum blockchain.

You don’t need copyright anymore. In the same way that academic citations make the original paper more important, citation of Nouns in whatever form they come in—at least, this is our thesis—will make the originals more important and more valuable.

A lot of companies, I think, are going to be unwilling to make the transition—because they rely on this idea that their IP is a monopoly product. It will be very scary for them to have to compete in the marketplace, where other people can use the same IP that they can.”

See Also: Yearn Finance v3.0

“Ultimately, much like how crypto exchanges function, in the future, there will be two types of stablecoin issuers: those that purposely avail themselves to regulated jurisdictions and offer transparent accounting, clear rules for redemption, and investor protections in one basket, and conversely, there will be other issuers which have a robust secondary market but remain functional without clear rules that may be synonymous with financial institutions.

Gregory said that the first basket will be the likely venue for regulated financial institutions engaging in crypto-specific financial products and the latter being more for cross-border trading from countries with stringent currency controls, peer-to-peer marketplaces and access to offshore exchanges.

There’s a real recognition that as these payment stablecoins grow, they could grow at internet scale relatively quickly.”

27 November

The financial markets are a sea of red on Friday as worries over a new coronavirus variant appear to have zapped risk appetite. While bitcoin is trading 6.7% lower on the day near $55,000, the S&P 500 futures are nursing a 2.3% loss.

The cryptocurrency was better bid on Thursday and appeared set to cross the resistance at $60,070. That would have confirmed a double bottom breakout on the 4-hour chart. However, renewed COVID fears have played spoilsport.”

See Also: Goldman Says Fed May Accelerate Tapering from January: Report
See Also: El Salvador Buys 100 More Bitcoins as Crypto Market Falls

The Senate is poised to reject the White House’s choice to lead the Office of the Comptroller of the Currency (OCC), the federal agency charged with overseeing the country’s banks. She appears to have no path to confirmation as five Democratic Senators have told the White House they will not vote for her.

The impending rejection is significant for the crypto industry since the nominee, Saule Omarova, has been an outspoken critic of crypto. In recent months, she has described crypto as benefiting from a “dysfunctional” financial system, and shared a Financial Times story that framed Bitcoin as a symbol of American decline.

The Senate opposition to Omarova, a Cornell law professor, is not rooted specifically in her position on crypto. Instead, Senators have called attention to her academic writing, which has called for “hemming in” banks and giving citizens direct access to accounts at the Federal Reserve.”

“Major crypto mining pools including Binance Pool, F2pool, Poolin and ViaBTC are reporting connectivity problems. Binance Pool’s bitcoin hashrate is down 14% in the last 24 hours. F2pool has dropped almost 8% and ViaBTC has fallen by 7%.

The issue is caused by domain name system (DNS) “pollution,” Binance Pool and Poolin said on their Chinese Telegram channels. F2pool also said the pool’s domain name is not being properly resolved. DNS poisoning can occur when a hacker redirects traffic from the domain name to an imposter website. De La Torre thinks the Chinese government is likely interfering with the mining pools.

The connectivity issues appear to be primarily affecting Chinese miners.

Binance Pool, F2pool, and Poolin advised users to modify their DNS to solve the issue. Binance Pool said that a long term solution is to use a VPN to circumvent the country’s telecoms carrier.”

See Also: Hackers Are Attacking Cloud Accounts to Mine Cryptocurrencies, Google Says

“The new German government has cited crypto in its coalition agreement, advocating for an equal playing field between traditional finance and “innovative business models.”

Elsewhere on the continent, the European Council, which guides the EU’s political agenda, adopted two proposals named the “Regulation on Markets in Crypto Assets” (MiCA) framework and the “Digital Operational Resilience Act.”

While MiCA still needs to be ratified by the European Parliament, if enacted, it will subject crypto asset issuers to more stringent requirements, but nonfungible tokens and utility tokens will fall outside the scope of the regulation.

Because of the ‘Brussels Effect,’ there is a very good chance these rules will become international standards in the end. While everyone is focused on the US and China, the EU is casually leading the way.”

“DappRadar, a popular platform that provides analytics and portfolio tracking for the decentralized application (DApp) and nonfungible token (NFT) markets, has announced an upcoming company restructuring to a decentralized business model, in addition to releasing a native governance token, RADAR.

Founded in 2018, the site currently boasts over 4 million global users, 600,000 of which are uniquely active on a monthly basis, as well as playing host to over 8,300 DApps and 27 protocols. The purpose behind the evolution is to expand DappRadar’s ecosystem to a global audience and establish itself as one of the world’s leading DApp stores.

“Yaron Shalem, the chief financial officer of cryptocurrency lending platform Celsius, was one of the seven people arrested in Tel Aviv this month in connection with Israeli crypto mogul Moshe Hogeg. It is not clear what charge(s) Shalem was arrested on.

While this is in no way related to the employee’s time or work at @CelsiusNetwork, the employee was immediately suspended. We have also verified that no assets were misplaced or mishandled.

Shalem joined Celsius earlier this year. From January 2014 to March 2018 he worked as CFO for Singulariteam, a venture capital firm launched by Hogeg.”

See Also: Jutta Steiner Leaves Polkadot Builder Parity Technologies

TA: Bitcoin Retests Bull Market Support

See Also: Crypto Near-term TA (Video)

26 November

The crypto market on Thursday, the U.S. Thanksgiving day holiday, was not as quiet as some anticipated, after bitcoin prices briefly broke past $59,000, and trading volume remained at a level similar to the previous three days. Ether soared past $4,500, a more than 6% gain.

One analyst expects this bullish sentiment will continue during the December holiday season, particularly now that a few macroeconomic uncertainties have abated, including Jerome Powell’s reappointment as Federal Reserve chair.

The period after U.S. Thanksgiving is traditionally very bullish for risky assets and I would not be surprised to see a healthy Christmas rally for cryptos during the holiday season.

Yet there were also less optimistic signs in investors’ activities. ‘Bitcoin put options, derivatives offering downside protection, continue to become pricier, implying bearish sentiment.'”

See Also: Bitcoin’s put options become pricier amid Fed rate hike fears
See Also: Morgan Stanley Adds More Grayscale Bitcoin Shares Despite Heavy Discount
See Also: Celsius Network Series B Expands to $750M

“The Bank of Canada should issue a central bank digital currency that can be converted into a “loonie,” the colloquial term of the Canadian dollar, as cryptocurrencies grow in popularity, a new report by C.D. Howe Institute said.

Canadian-dollar-linked stablecoins could become attractive to Canadians by making them convertible into cash issued by the Bank of Canada, and ensuring that stablecoins are well designed and regulated from business conduct, competitive, operational, privacy and prudential perspectives.

Our preference is for an ‘indirect CBDC,’ one that is allowed to pass over the balance sheet of payment providers, mimicking cash/banknotes on the Bank of Canada’s balance sheet today.

The authors also highlighted that such adoption may incentivize private sectors to introduce Canadian-dollar linked stablecoins by enabling convertibility to cash to take place digitally, without relying on physical bank notes.

Canadians are more likely to favor those stablecoins if governments facilitate innovation in the payments world so that Canadians can benefit from ongoing advances in payments systems and crypto-technology, and the purchasing power of the Canadian dollar is maintained by keeping inflation low.”

The token of the decentralized virtual reality platform built on the Ethereum blockchain now has a reported market capitalization of $9.2 billion. The surge pushes it ahead of metaverse related play-to-earn game Axie Infinity’s AXS, which has a reported market cap of $8.6 billion.

Investors are still wanting to capitalize on the narrative of the metaverse since the rebranding of Facebook.

Pellicer said that the recent waves of transactions for MANA of over $100,000, could be signalling institutional demand. He also noted that the recent virtual real estate plot sales are putting Decentraland in the spotlight again. On Monday, the Metaverse Group, bought a patch of virtual real estate in the Decentraland metaverse for 618,000 MANA – equivalent to around $3.2 million at the time of writing.”

See Also: Axie Infinity virtual land slot sells out for 550 ETH
See Also: ConstitutionDAO: PEOPLE price pumps 200% as new ‘We The People’ token unveiled

“A particular focus she had was on how social media platforms, which have been used to influence elections through disinformation, could be combined with the cryptocurrency markets in a way to help state and non-state actors destabilize other countries.

There’s one other thing that’s on the horizon, which people are only beginning to pay attention to, and that’s the need to regulate the cryptocurrency market.

We’re looking at not only states such as China, Russia, or others manipulating technology of all kinds to their advantage. We’re looking at non-state actors, either in concert with states or on their own destabilizing countries, destabilizing the dollar as the reserve currency.”

See Also: UK Law Commission affirms English and Welsh laws apply to smart contracts