The Disrupt Weekend

“Beyond the popularity of investing in digital assets, futurists envision blockchain technology as a disrupter poised to reshape the entire finance and investment industry from top to bottom – and this future might not be as far off as we once thought.

Last week, traditional asset manager WisdomTree announced that it is launching WisdomTree Prime, a digital wallet that will be made available to investors via a mobile app.

The result is an offering unlike any currently available to investors, said Peck, where they can see their cryptocurrency, other digital assets, stocks, bonds, real property and banking assets within the same architecture and the same user experience.

We can now fractionalize anything with an NFT, and that allows us to take any physical asset we’re very confident in the pricing trajectory for over the next 50-100 years and fractionalize the risk of ownership and make it liquid so people can trade it whenever they want to. That’s a huge innovation because that is how the stock, bond and commodities markets work – now you’ll see cars, watches, art and physical assets creep in and gradually start to trade in the same way.

There isn’t a single instrument that has been invented in the past 100 years that can’t be tokenized.

If you want to know what’s coming down the pike, it’s a tremendous amount of institutional and high-net-worth capital.”

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“This week, researchers at the Federal Reserve Bank of New York published an academic-style study in which they tried to estimate the impact on bank lending under three different regulatory frameworks for stablecoins.

With appropriate safeguards and regulations, stablecoins have the potential to provide a level of stability that is on par with traditional forms of safe value.

Scenario 1: “Narrow bank” – Under this framework for stablecoins, physical cash would be tokenized and issuers would be required to back their stablecoins with central bank reserves. The impact on bank lending would largely be minimal. When it comes to deposits, however, this framework could have a negative impact because the deposit-backed funding for lending would be reduced as regular commercial bank deposits would move to separated accounts at the central bank.

Scenario 2: Two-tiered intermediation – In this scenario, stablecoins would be backed by deposits held at commercial banks. And then the banks could lend the stablecoins to new borrowers. Contrary to the narrow-bank approach, large inflows into stablecoins could have a positive impact on lending, while the overall balance sheets and asset holdings of commercial and central banks would remain unchanged.

Scenario 3: Security holdings – This framework would require cash-equivalent securities to be held as reserved collateral for stablecoins. The central bank’s balance sheet would shrink slightly with lower banking reserves. The impact on lending would be neutral because commercial bank deposits would be recycled back into the banking system.

The researchers concluded that the “two-tiered” system could help to maintain traditional forms of bank lending even as stablecoins grow. The “narrow-bank” framework, meanwhile, could lead to credit disintermediation but might ‘bring the most stability.’

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“From using bitcoin and monero to updating your computer’s operating system, Seth for Privacy presents 10 security tips.”

“Solana’s spectacular rise, which has seen it vault into the top ten coins, has come from its spiffy technology and also from a certain celebrity pixie dust sprinkled by the likes of FTX founder Sam Bankman-Fried and others.

But lately, the shine has started to come off Solana as the upstart blockchain has been battered by a series of issues.

The most recent came this week when a hacker exploited a cross-chain bridge called Wormhole, making off with $320 million worth of wrapped Ethereum in the process. A forensic analysis by Paradigm researchers revealed the hack came about due to a flaw in Solana’s interface with Wormhole.

The stolen funds were not exactly chump change, and people blasted Solana for neglecting the security side of Vitalik Buterin’s famous “Blockchain Trilemma.” And they have a point. Solana is in the big leagues now, and hackers should not be able to waltz away with $320 million.

The episode was smoothed thanks to the Chicago investment firm Jump Crypto swooping in, but it also served to highlight another issue with the blockchain: the outsize role of venture capitalists’ involvement with the project. Solana’s token allotment is more stacked toward professional investors than most. Retail SOL buyers are likely to get hosed when token lock-up periods expire and the professionals dump their bags on the open market.

Put all this together—the security breach, the VC-heavy token allotment, the congested chain—and it’s hard to view Solana in the same fresh light that made everyone fall in love with it in 2021.

“Axie Infinity eliminated the daily quest and the adventure mode, meaning gamers would now earn SLP tokens only through area combat. The decision expects to reduce the SLP token daily supply by 56%. Simply put, the Season 20 update would make SLP scarcer, thus potentially making Axies more valuable.

That is vital as players burn SLPs to enable old Axies to breed new ones. Of late, the Axie Infinity team created more SLP to reward players than burned through breeding. Unfortunately, that led to a higher SLP inflation, prompting its per token rate to crash from its summer 2021 highs of $0.40 to $0.008 on Feb. 3.

The Axie economy requires drastic and decisive action now or we risk total and permanent economic collapse.”

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“BuzzFeed published an investigation revealing the identity of two of the four BAYC co-founders, who until now have been known simply by their ape personas, Gordon Goner and Gorgamel.

It turns out these apes are two fairly ordinary 30-somethings from Florida named Wylie Aronow and Greg Solano, who once had literary aspirations but then got into crypto. The company behind BAYC, Yuga Labs, confirmed their identities after BuzzFeed’s report.

BuzzFeed’s report did not contain anything scandalous about the men, but the reaction on Crypto Twitter has been ferocious.

Fundamentally, the controversy over BuzzFeed and BAYC boils down to whether crypto billionaires should be able to avoid the same sort of scrutiny that politicians and business leaders are subject to in free societies–scrutiny that helps citizens hold them accountable and understand who is running powerful segments of society.

The opposite view, in which any sort of public scrutiny is treated as unacceptable invasion of privacy, prevails in China and Russia where wealthy elites silence and jail their critics.

As for Solano and Aranow, both men appear to be taking the controversy in stride.”

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