🧵🧠 Operation Choke Point 2.0: Crypto in the Crosshairs
Degen Debrief - Week of April 10th
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: 5.5 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:
BTC is leading the charge this week, & is up ~7% week-on-week
Most alts are either flat or slightly down on the week vs. USD
The best performing alt in the top 10 is BNB. Binance Smart Chain has been getting a good uptick in usage lately.
2. The Crypto Fear/Greed Index:
Currently in “Greed” territory
A bit more "greedy” compared to last week. It’ll be interesting to see just how long this sentiment will persist.
3. Top Trending Category - Fan Tokens:
Most fan tokens have done well this week - the standout being OG Fan Token (OG)
This token was created by OG, a pro gaming team that plays Dota 2 and CS: GO, back in 2020
It has gained popularity among esports fans and investors due to its innovative approach to fan engagement
4. Funds Flow Summary: A Look into the Big Boys’ Activity:
TLDR; Low volumes, but positive sentiment & healthy inflows of $57M
Last week, investors put US$57m into digital asset investment products, reversing the net outflow trend this year.
However, trading volumes were low at US$970m for the week.
Bitcoin received US$56m of inflows, accounting for 98% of all inflows.
Even though the Ethereum network underwent the Shapella upgrade on the 12th April, inflows were negligible at US$0.6m.
2️⃣ The Big Story: Choke Point 2.0 - Crypto's Government Grapple 🤺
This episode on Unchained podcast, features Brian Quintenz, head of policy for a16z crypto, and Nic Carter, general partner at Castle Island Ventures.
There’re some great insights on Operation Choke Point 2.0, the relationship between the government and the crypto industry, the status of different tokens as securities or commodities, and potential future developments in the space.
Keep reading for the 🔑 takeaways 👇️
Govt. vs Crypto: Operation Choke Point 2.0 🪖
The original Operation Choke Point aimed to marginalize certain industries by pressuring banks not to do business with them. Similarly,
“Choke Point 2.0 is a coordinated effort by federal agencies to limit crypto companies' access to banking services.”
This crackdown has raised suspicions and concerns for the future of the crypto space.
Debunking the Crypto-Blame Game: Liquidity Risks and Interest Rates 📈
The panelists dive into the global banking crisis, dissecting the role of regulators and the impact of cryptocurrencies.
They highlight the soft power bank regulators wield, using paperwork requirements to disincentivize banks from dealing with crypto companies.
They also touch on the National Economic Council's statement, which advises against mainstream institutions diving headlong into cryptocurrencies.
Contrary to popular belief, the panelists argue that -
“The current banking crisis isn't caused by the crypto industry, but by rapidly changing interest rates and liquidity risks.”
Despite regulators' concerns that the crypto market could infect the traditional financial system, the panelists emphasize that the real issue lies in the banking system's reliance on confidence.
Adding some intrigue, they examine Silvergate Bank's perplexing decision to pay back a $4.3 billion loan from the Federal Home Loan Bank of San Francisco, which contributed to its shutdown.
The panelists call for transparency and better risk management to prevent future crises.
Silvergate and Signature Bank 🏦
The discussion then comes to the political pressure on Silvergate Bank and its impact on client withdrawals. The host highlights the importance of diversifying clientele in the banking industry to reduce risk exposure.
They also address the confusing situation surrounding Signature Bank and question the legality of the New York Department of Financial Services' ability to put a bank into receivership due to insufficient data.
“There is the possibility of a coordinated crackdown on crypto across government agencies. “
As enforcement actions from the SEC, CFTC, and other agencies target crypto firms like Kraken, Coinbase, and Binance, the timing raises questions about coordination.
The host also notes the peculiar treatment of crypto deposits at Signature Bank during its acquisition. While some argue that this is a conspiracy theory, others see it as a plausible reflection of government agencies' stance on cryptocurrencies.
They then go on to discuss enforcement actions, coordination across agencies, US Dollar & the financial system, geopolitics and ‘hyper-bitcoinization’ (check out the episode here)
3️⃣ Crypto Expert Takeaways 🎧
Bite-sized alpha from an Illuminati Round Table chat
📈 Bubblemaps: Navigating Crypto's On-Chain Terrain
Bubblemaps makes on-chain data more accessible and appealing to a wider audience through interactive, colorful, and gamified maps and charts.
The co-founder and CEO of Bubblemaps, Mick, talks about how their programs have been able to identify patterns and clusters of on-chain behavior, including identifying wash trading activities and clusters of wallets controlling a significant portion of a token's supply.
How can people use onchain data and Bubblemaps to identify alpha? Here are the key takeaways 👇️
Mick recommends using multiple tools to aid in trading, including Bubblemaps.
Bubblemaps can help identify where the smart money is going and avoid scams.
Bubblemaps can be used to locate specific projects, especially those with large supply clusters controlled by the team.
Due diligence should be done to confirm information from the whitepaper with data from Bubblemaps.
Checking for clusters of wallets working together can raise suspicion.
Bubblemaps is dynamic and can provide historical data through backtesting.
It's important to track a token's activity as it expands to different platforms.
Bubblemaps may eventually create a map for one wallet, not just one token.
NFT projects with more than 25 connected wallets may indicate wash trading.
📑 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
💬 A Real-Life Scammer Spills the Beans.
Rekt Fencer interviewed a scammer to learn how he duped people and stole their money. Key takeaways 👇️
MetaMask wallet hacking: Malicious software can enable scammers to crack wallet passwords, but strong passwords (15-20 characters) increase security.
Money laundering: Scammers use methods like swapping and transferring between various platforms and currencies to launder money.
Avoiding scams: Use antivirus software, avoid saving passwords in browsers, limit downloads, and create strong passwords for MetaMask and other sites.
Check out Telegram & Discord Security Best Practices by Officer's Notes for additional safety tips.
Post-malware action: Change passwords, set up new 2FAs, and reinstall your operating system if malicious software has been installed.
I interviewed a scammer to learn how he duped people and stole their money.
In this thread, I'll reveal the tactics he uses, and how to protect yourself from falling prey to these scams.
Don't get fooled, read on 👇🧵 https://t.co/7SZTX6ceG7
— Rekt Fencer (@rektfencer)
Apr 10, 2023
🎭️ You’ve Probably Heard of DWF Labs By Now.
But Who on Earth Are They?
DWF Labs: A mysterious firm investing large amounts (>$200m) in various projects, including liquid tokens, in the last 6 months.
Investment pattern: Transactions vary between 50-100k stables and up to $5m per transaction, with funds often deposited on CEXes.
Market impact: Post-investment, token prices have generally underperformed, with some losing between 10-90% in value.
Official face: Andrei Grachev, publicly accused of involvement in various crypto scams since 2018, including ICOs and OneCoin.
Sketchy appearance: Public information raises concerns about DWF Labs' legitimacy and true intentions.
1/ Who the heck is DWF Labs?
In the last couple of months, they have been everywhere, throwing ridiculous checks at everyone from legit projects to dead ones.
I dug a bit into on-chain data and other resources, and it doesn't look good.
— Nay (@nay_gmy)
Apr 10, 2023
🛍️ You Can Now Buy Crypto Directly from Metamask.
MetaMask's Buy Crypto feature now available in Portfolio Dapp, streamlining the purchasing process.
Extension users redirected to Portfolio Dapp after clicking BUY in the wallet.
Fiat-to-crypto on-ramp considers factors like region, payment method, and tokens for optimal quotes.
Onboarded new partners and local payment methods for 189 countries across 8 networks.
Connect wallet to Portfolio Dapp, select region, payment method, token, and amount to start.
We foxes at MetaMask 🦊 are excited to announce that our Buy Crypto feature now also resides in our Portfolio Dapp, providing a simple and smooth purchasing journey👌
— MetaMask 🦊💙 (@MetaMask)
Apr 10, 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/)
Otherdeed NFTs have been on 🔥 this week 👇️
1) Otherside Vessels
7-Day Volume: $4.6M | NFTs Sold over 7 days: 5.5k
“Each Vessel in the Otherside Vessels collection is occupied by a Shade, which will hatch into a Mara that, depending on its type–Enchanter, Farmer, or Hunter–will provide service to the Otherdeed on which it is living.”
2) Otherdeed Expanded NFT
7-Day Volume: $3M | NFTs Sold over 7 days: 1.1k
“These evolved Otherdeeds enable holders to play future games in the Yuga Labs universe”
Do you think most crypto companies will move outside the US after Operation Chokepoint?