Gm degens, this Debrief brings to you a weekly curation of key updates & alpha from the cryptoverse.
It's time to dive into another wild week in the world of crypto! So, grab your coffee, strap in, and let's go! ☕
Estimated reading time: 5 minutes.
Here’s what’s inside…
1️⃣ Highlights from the Market 📈
2️⃣ Big Story of the Week ✨
3️⃣ Crypto Expert Takeaways 🎧
4️⃣ Crypto Twitter Roundup: Top 3 Threads 🔥
5️⃣ Trending NFTs: This Week's Standouts 🃏
1️⃣ Highlights from the Market 📈
State of the Market - Essential Updates You Need to Know
1. How the Top 10 Coins are Faring:
It’s been largely a red week with most coins bleeding week-on-week
BTC has remained almost flat, and most alts have bled vs BTC
It’s likely that alts continue to take a hit if BTC corrects further
2. The Crypto Fear/Greed Index:
Still in “Greed” territory
We can see that ever since the BTC mid-March rally, it has remained fairly high on the greed meter (50-70)
This is not out of the ordinary in a bull market
3. Top Trending Category - NFT Marketplace Coins:
Many coins in the Aptos ecosystem have performed well
“Bluemove” is up ~70%+ on the week
It is the leading NFT marketplace on Aptos- this shows that NFT activity on the chain is picking up!
4. Funds Flow Summary: A Look into the Big Boys’ Activity:
Bearish sentiment continues for the second week as digital asset investment products experience US$72m in outflows.
This is likely due to anticipated interest rate hikes by the US Federal Reserve.
Bitcoin faced the majority of these outflows with US$46m, and short-Bitcoin saw its largest outflows since December 2022.
Ethereum also struggled with US$19m in outflows, marking its largest week of outflows since the Merge in September 2022.
2️⃣ Coinbase Takes on the SEC: A Battle for Clear Crypto Regulation⚔️
In a bold move, Coinbase has filed a court action against the Securities and Exchange Commission (SEC), pushing for specific rulemaking on crypto assets.
This marks a significant moment in the ongoing struggle for clear and fair regulation in the fast-evolving world of cryptocurrency.
J.W. Verret, a law professor, discusses how both parties are playing this game on a recent Unchained Podcast episode. Here are the key takeaways. 👇️
🤺 Coinbase's Battle for Regulatory Clarity
For years, Coinbase and other exchanges have tried to adapt to the current regulatory regime.
They have been seeking special licenses and requesting public rulemaking, all without success. The recent court action seeks a writ of mandate for tailored exchange rules, which could bring strategic advantages to Coinbase in the face of potential enforcement action by the SEC.
🤔 The Major Questions Doctrine and Its Potential Impact
The Major Questions Doctrine is a concept in administrative law that has been gaining traction in recent years.
Justices Kavanaugh and Gorsuch are key proponents, and it has been applied in various cases of national significance. This doctrine could play a crucial role in the ongoing litigation process concerning crypto regulation.
🛣️ A Long Road Ahead for Crypto Regulation
The battle for clear and fair regulation is expected to take years, causing uncertainty for industry stakeholders.
However, the SEC's tailored registration regime for asset-backed securities could serve as a model for establishing a suitable regulatory framework for cryptocurrencies like Ethereum.
📜 The Bahamas Takes the Lead with DARE Bill
The Bahamas' Commission has opened a consultation on the Digital Assets and Registered Exchanges (DARE) bill.
This aims to ensure that crypto exchange operators have adequate systems and controls in place. The bill includes expanded definitions, disclosure requirements for crypto staking, and tighter rules for stablecoin issuers.
As the cryptocurrency industry continues to grow, the need for clear and tailored regulation becomes increasingly important.
Coinbase's court action against the SEC signifies a turning point in the ongoing struggle for regulatory clarity. With countries like the Bahamas taking proactive steps and the potential application of the Major Questions Doctrine, the future of cryptocurrency regulation remains uncertain but hopeful.
Here is the podcast episode 👇️
3️⃣ Crypto Expert Takeaways 🎧
Bite-sized alpha from an Illuminati Round Table chat
📊 Stablecoin Shake-Up: Yama Finance's Edge
Crypto enthusiast King discusses his journey in the space, the potential of crypto becoming the reserve currency, and the importance of omni-chain stablecoins.
Here’s a snippet from this discussion 👇️
“What are the chances of crypto becoming the reserve currency?”
• King jokingly talks about how if he knew the answer, he would be wealthy right now.
• He says that crypto can play a massive role in the upcoming years and months with the geopolitical circumstances going on right now.
• Furthermore, he states that the correlation between Trad-Fi and crypto is still clear and that he doesn’t see this changing any time soon.
• However, he says he sees crypto as a relative store of value compared to some emerging economies' fiat.
📑 Check out the full round table recap here
🎧️ Listen to a clip from this Twitter Space 👇️
4️⃣ Crypto Twitter Roundup: Top 3 Threads
Essential CT News & Alpha to Catch Up On
🥷 The Hidden Nationalization of US Banking
The recent $JPM / $FRC deal unveils a new reality in the US banking sector, as regulators quietly push for a de facto nationalization of the industry. Here are the 5 key takeaways from a tweet thread by Arthur Hayes on this topic:
The $JPM / $FRC deal indicates US regulators are effectively nationalizing the banking system.
The 8 "Too Big to Fail" (TBTF) banks are now government-backed, with socialized losses and privatized gains.
When required, TBTF banks must absorb struggling smaller banks, protecting depositors while wiping out equity holders.
The government offers rule exemptions and preferential loans to facilitate these deals, maintaining the appearance of private sector bailouts.
Non-TBTF banks are at a disadvantage as long as inflation remains high and political factors influence banking, credit, and debt.
A longer essay coming soon on my take. This $JPM / $FRC deal means the US regulators decided to nationalise the banking system. https://t.co/BNfzSweoQS
— Arthur Hayes (@CryptoHayes)
May 1, 2023
🐳 This Whale Has a Habit of Being Early
hoeem breaks down what we can learn from him 👇️
The wallet holds Numeraire, a hedge fund software enabling AI-driven equity trading.
DeFi activity in the wallet is limited; locked in BTRFLY ($40k) and yielding yCRV ($10k).
BTRFLY is the wallet's main DeFi position, with multiple buy and sell transactions.
The wallet also holds Redacted Cartel tokens, indicating a strong belief in the team's capabilities and long-term prospects.
The wallet's owner shows conviction in their investments, making it worthwhile to monitor their future moves.
0xab2 bought PENDLE at $0.057 (It’s now $0.47) over a 600% move.
You can track his portfolio live.
What can we learn from this whale that has a habit of being early? 🧵👇 https://t.co/IiS8Jg25Oa
— hoeem (@crypthoem)
May 1, 2023
✅ Consensus 2023: Key Insights and Trends
Ram Ahluwalia asked everyone he spoke with in Consensus 'What did you learn? What is your non-consensus view?' and shared his learnings in a super thread. Here are the key takeaways. 👇️
Trustless staking solutions have arrived, enabling DAOs to create yield-bearing tokens and unlock composable liquidity.
The ongoing debate revolves around which layer will capture more value: L1, L2, or the app layer, with credit cards as a potential analogy.
Startups are moving to more crypto-friendly jurisdictions like Japan and Singapore, while Asia represents a significant growth opportunity for NFTs and Web3.
International clients offer better prospects for startups due to regulatory uncertainty in the US, with Europe, Singapore, and Japan ahead on digital asset regulation.
There is a need for better infrastructure to support investment advisors in offering crypto to clients and addressing the critical issue of crypto estate planning.
1/ Consensus 2023 was a blast.
I asked everyone I spoke with 'What did you learn? What is you non-consensus view?'
Superthread covering innovation, regulatory, new product.
The future of Digital Assets is bright.
— Ram Ahluwalia, higher for longer crypto CFA (@ramahluwalia)
Apr 30, 2023
5️⃣ Trending NFTs: This Week's Standouts
NFTs that are hotter than your altcoins
The following collections have been creating waves this week (Stats Source: https://www.nft-stats.com/)
1) Pepe Editions by Matt Furie
7-Day Volume: $711k | NFTs Sold over 7 days: 2.6k
PEPE.fun features NFT editions from the illustrious creator of Pepe the frog, Matt Furie.
2) MONGS NFT
7-Day Volume: $389k | NFTs Sold over 7 days: 1.1k
“MONGS are a culture, a vibe. They believe that somehow this is new, and hip, and an attack on the powers of society.”
Check out their website
Coinbase has sued the SEC - do you think it can win?