ROLLUP: Voyager Bankrupt | Solana Phone | ENS Domains | Facebook NFTs | Reddit NFTs | EU Crypto Regulation

First Week of July, 2022 ------ 📣JUNO | Crypto Friendly Banking https://juno.finance/bankless ------ 🚀 SUBSCRIBE TO NEWSLETTER: https://newsletter.banklesshq.com/ 🎙️ SUBSCRIBE TO PODCAST: http://podcast.banklesshq.com/ ------ BANKLESS SPONSOR TOOLS: 🚀ROCKET POOL | ETH STAKING https://bankless.cc/RocketPool ⚖️ARBITRUM | SCALING ETHEREUM https://bankless.cc/Arbitrum ❎ACROSS | BRIDGE TO LAYER 2 https://bankless.cc/Across 🦁BRAVE | THE BROWSER NATIVE WALLET https://bankless.cc/Brave 🌴MAKER DAO | DECENTRALIZED LENDING https://bankless.cc/MakerDAO 🔐LEDGER | SECURE STAKING https://bankless.cc/Ledger ------ Topics Covered: 0:00 Intro 3:30 MARKETS 6:50 Macro Sentiments https://twitter.com/KobeissiLetter/status/1543591588970070016 8:35 Dollar Go Up https://www.bloomberg.com/news/articles/2022-07-05/euro-falls-to-lowest-since-2002-against-the-us-dollar 10:35 Oil Go Down https://www.cnbc.com/2022/07/05/oil-tumbles-more-than-8percent-breaks-below-100-as-recession-fears-mount.html 12:38 USDC Gains on Tether https://cointelegraph.com/news/circle-s-usdc-on-track-to-topple-tether-usdt-as-the-top-stablecoin-in-2022 17:20 ENS June Numbers https://twitter.com/ensdomains/status/1542989987456569344?s=20&t=W7lXFFpRefHsFfMCuRqDeg https://twitter.com/ensdomains/status/1542989987456569344?s=20&t=W7lXFFpRefHsFfMCuRqDeg 21:30 Voyager Goes Bust https://www.investvoyager.com/ 24:00 What Happened? https://www.investvoyager.com/pressreleases/voyager-digital-provides-update-on-asset-and-risk-management 25:30 The 3ac Plunge https://seekingalpha.com/news/3850830-voyager-digital-stock-plunges-after-disclosing-over-660m-exposure-to-three-arrows-capital 31:20 Three Arrows Capital Bankruptcy https://www.theblock.co/linked/155578/three-arrows-capital-files-for-chapter-15-bankruptcy-in-new-york?utm_source=twitter&utm_medium=social https://www.theblock.co/linked/155578/three-arrows-capital-files-for-chapter-15-bankruptcy-in-new-york?utm_source=twitter&utm_medium=social 34:20 Three Arrows NFTs 37:05 Nexo Eating Vauld https://www.theblock.co/post/155790/nexo-vauld-offer-potential-acquisition?utm_source=substack&utm_medium=emailhttps://www.theblock.co/post/155790/nexo-vauld-offer-potential-acquisition https://www.theblock.co/post/155790/nexo-vauld-offer-potential-acquisition?utm_source=substack&utm_medium=emailhttps://www.theblock.co/post/155790/nexo-vauld-offer-potential-acquisition 39:00 FTX Acquires BlockFi https://blockworks.co/ftx-reaches-deal-to-acquire-blockfi-for-up-to-240m/ 42:40 Celsius WBTC Vault https://twitter.com/cryptoworldjosh/status/1545024254735171584?s=21&t=z-kyYYLrQC-2xDEuQnAiRw https://twitter.com/cryptoworldjosh/status/1545024254735171584?s=21&t=z-kyYYLrQC-2xDEuQnAiRw 47:00 Sepolia Merge https://www.theblock.co/post/156013/ethereum-developers-activate-the-merge-on-sepolia-testnet 50:00 Facebook NFTs https://decrypt.co/104205/facebook-begins-testing-ethereum-and-polygon-nfts-on-profiles 52:07 Solana Phone https://solana.com/news/saga-reveal 54:20 Polygon Phone https://twitter.com/MihailoBjelic/status/1544019899827322880?s=20&t=mYQvkX_SFA5r5y9SZHusfA https://twitter.com/MihailoBjelic/status/1544019899827322880?s=20&t=mYQvkX_SFA5r5y9SZHusfA 56:24 Immutable Off-Ramp https://twitter.com/Immutable/status/1544155189166641152?s=20&t=MfDRmaNg_eBYYrHOnKPltw https://twitter.com/Immutable/status/1544155189166641152?s=20&t=MfDRmaNg_eBYYrHOnKPltw 58:00 Reddit NFT Marketplace https://www.reddit.com/r/CollectibleAvatars/comments/vtab05/introducing_collectible_avatars/ 59:45 Moonbirds Go Up https://twitter.com/jerrykestel/status/1544016979140427782 1:00:45 Axie Hack Story https://www.theblock.co/post/156038/how-a-fake-job-offer-took-down-the-worlds-most-popular-crypto-game 1:02:30 Uprise Big Oof https://twitter.com/TheBlock__/status/1544674260152733697?s=20&t=qUznXkny5NYvG9G6nwAdBQ https://twitter.com/TheBlock__/status/1544674260152733697?s=20&t=qUznXkny5NYvG9G6nwAdBQ 1:04:54 Crypto EU Deal https://www.europarl.europa.eu/news/en/press-room/20220613IPR32840/cryptocurrencies-in-the-eu-deal-struck-between-parliament-and-council RELEASES 1:07:00 Aztec Connect https://twitter.com/aztecnetwork/thread/1545046832597700611 1:08:40 Bankers Going Bankless https://www.coindesk.com/business/2022/07/06/three-execs-leave-jpmorgan-this-week-to-join-crypto-firms/ 1:09:00 Jobs https://pallet.xyz/list/bankless/jobs 1:11:00 Questions from the Nation Post-Merge Fees https://twitter.com/KristinaKlaudy1/status/1544720722135769090?s=20&t=6qFTy8_wEDQk2Nv8wYLkbQ https://twitter.com/KristinaKlaudy1/status/1544720722135769090?s=20&t=6qFTy8_wEDQk2Nv8wYLkbQ 1:14:20 Data Sharding https://twitter.com/DiscoverCrypto1/status/1544874701473730565?s=20&t=6qFTy8_wEDQk2Nv8wYLkbQ https://twitter.com/DiscoverCrypto1/status/1544874701473730565?s=20&t=6qFTy8_wEDQk2Nv8wYLkbQ 1:16:25 TAKES 1:16:40 Leighton Celsius Take https://twitter.com/lay2000lbs/status/1545033033392193536 1:18:40 Ruled by Adults https://imgur.com/jutmOmL 1:19:52 No New Narratives https://twitter.com/pythianism/status/1544442176985133056?s=20&t=vEwAPR55xMjGsw3m4hbo0Q https://twitter.com/pythianism/status/1544442176985133056?s=20&t=vEwAPR55xMjGsw3m4hbo0Q 1:21:47 Bear Market Advice https://twitter.com/0xNader/status/1544126113059782656?s=20&t=KtqAQRiBwhpZ5hQ6_qYetQ https://twitter.com/0xNader/status/1544126113059782656?s=20&t=KtqAQRiBwhpZ5hQ6_qYetQ 1:22:10 What David’s Bullish On 1:24:20 What Ryan’s Bullish On 1:27:20 MEME of the Week ----- Not financial or tax advice. https://newsletter.banklesshq.com/p/bankless-disclosures

Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

• 0:00David Hoffman?

  The sky is starting to clear, like we, all the trash has already floated up to the surface and we've already started to like start doing a lot of that cleaning. I'm feeling pretty good.

• 0:12Ryan Sean Adams?

  Bankless Nation, it is the second week of July. I hope you are enjoying your Friday morning because it's time for the weekly roll up. I said it this time, not you David, but how are you doing, man? On the second week of July, crypto still being kind of crazy. We're getting some liquidations, we're getting some bankruptcies, some consolidation on the market. How are you feeling about things?

• 0:32David Hoffman?

  You know, pretty, pretty good, I'd say. Successful Sepolia Testnet merge, two of three Testnets ready to go is Gorley next. And like meanwhile, the BlockFi story has, I think concluded. That story is over. We're going to recap the conclusion of that story. Voyager goes bust, but we already knew that. The final death of Three Hours Capital, we kind of already knew that too. And also Reddit and Facebook doing NFT things and no one really noticed it. And so like, Ryan, like we're also like a little bit, we're actually more than a little bit green right now. Again, positive news on the merge. No more contagion. I feel pretty good.

• 1:11Ryan Sean Adams?

  You think things are getting cleaned up?

• 1:13David Hoffman?

  I think, yeah.

• 1:13Ryan Sean Adams?

  You think contagion is, we're getting our stuff together.

• 1:16David Hoffman?

  The sky is starting to clear, like we, all the trash has already floated up to the surface and we've already started to like start doing a lot of that cleaning. I'm feeling pretty good. How are you feeling?

• 1:27Ryan Sean Adams?

  Yeah, you know what? I think that the contagion might be over, at least this first pass. Unless we get another big leg down, right? So I'm always cautious to say that, but we've had a lot of crypto banks go under and that's been the story. And we're going to continue talking about it this week as well as everything that is else that is going on in crypto, including macro stuff. If, as always, if you guys enjoy these weekly rollups and Bankless in general, make sure you like and subscribe, all right, on the podcast. That means making sure you're subscribed on YouTube, hit that click subscribe button, and also giving us comments, throwing comments our way and five stars reviews. We always appreciate that. David?

• 2:08David Hoffman?

  Have we told them to get their morning coffee yet?

• 2:10Ryan Sean Adams?

  Uh, yeah, yeah. Get your morning coffee.

• 2:12David Hoffman?

  Get your morning coffee.

• 2:12Ryan Sean Adams?

  Second cup.

• 2:13David Hoffman?

  Yeah.

• 2:13Ryan Sean Adams?

  You've probably already drank your first cup.

• 2:15David Hoffman?

  It's gonna be a two cup roll up.

• 2:17Ryan Sean Adams?

  Let's talk about Juno though, David. This is a crypto bank that we actually do like and we do recommend because it is an easy way to bridge onto Layer 2. What is Juno doing for us?

• 2:29David Hoffman?

  Oh, my gosh, so much. The coolest thing about Juno, it's a, it's a normal checking account. It's a bank. You know, fun fact, I actually do have a bank account. That's how I pay, that's how I pay rent. So we all need our checking accounts. It's the place that, you know, the money goes before you buy Ether or Bitcoin. But with Juno, you can get from your checking account to a Layer 2 on Ethereum directly. Goes checking account to Layer 2 like immediately in seconds. So that's kind of crazy. Free withdrawals. And so you don't have to deal with like Layer 1 gas fees. You don't have to deal with like the bridge wait times. So that's already crazy. It's optimism, Arbitrum, I think, what, what else is there?

• 3:06Ryan Sean Adams?

  Polygon.

• 3:07David Hoffman?

  And then the ZK rollups are also coming out soon. Yep, yep. ZK Sync and Starware. And then you can, you can also trade crypto with zero fees. We like zero fees. We like crypto assets. And then if you so choose, you can get 6% on your USDC and 3% on your Bitcoin and Ether.

• 3:24Ryan Sean Adams?

  What I also love is they'll convert your paycheck. You can get your direct deposits into this and they'll convert your paycheck into crypto. And then you can like immediately withdraw that to Layer 2. And some people are saying, well, you guys are bankless. Well, we still also live in the real world.

• 3:37David Hoffman?

  It's a process.

• 3:38Ryan Sean Adams?

  I still have a Wells Fargo account sadly. I haven't been able to get rid of that. But I do also have a Juno account because that is a DeFi friendly crypto bank. Doesn't mean you have to keep all of your funds on Juno, right? Keep the minimum necessary in the banking system. But these fast withdrawals to Layer 2 and all of this crypto native and DeFi native support is super useful. So go ahead and get your Juno account. There's a link in the show notes. Also, if you go to bankless.cc slash capital J for Juno, you will be able to get that link and earn $10 when you deposit. David, let's talk about markets, man. What are the markets doing? We actually have a little bit of sunshine?

• 4:17David Hoffman?

  It's a green week, a little bit of sunshine, yeah. So Bitcoin started the week at $20,000. We are currently at $20,730, about 3.5% in the green, Ryan. 3.5%.

• 4:29Ryan Sean Adams?

  Above 20K is a good day. All right. How about ETH price? That's up even more.

• 4:33David Hoffman?

  Yeah. Are you ready for this one, Ryan?

• 4:35Ryan Sean Adams?

  Yes.

• 4:35David Hoffman?

  Ether started the week at $1,030. We are currently at $1,215. That is 18%. That is 18%.

• 4:44Ryan Sean Adams?

  That is big.

• 4:45David Hoffman?

  That's a big, that's a big green week.

• 4:46Ryan Sean Adams?

  What is this? Are people bullish suddenly?

• 4:48David Hoffman?

  I don't know. I didn't know that that was allowed in this market.

• 4:51Ryan Sean Adams?

  Well, let's look at the ratio because that's also bullish. That must have gone up with the numbers you just quoted me.

• 4:55David Hoffman?

  Yep. Up 8%. We are currently at 0.058 where we were down to 0.05453 earlier this week.

• 5:03Ryan Sean Adams?

  Do you still believe this is a reliable bull market, bear market indicator?

• 5:06David Hoffman?

  Oh, yeah.

• 5:07Ryan Sean Adams?

  So it's a little bit bullish on the week.

• 5:09David Hoffman?

  I mean, it's not bullish. It's a lagging indicator, not a leading indicator, but I mean, it's been, it's been up since June. The bottom was like June 10th or June 12th or something. So like, it's been slowly grinding up ever since June 12th, which was like when this contagion started. So like,

• 5:23Ryan Sean Adams?

  I guess.

• 5:24David Hoffman?

  A month of contagion in the rearview mirror, which is bullish.

• 5:27Ryan Sean Adams?

  Important to note though, in these bear markets, there's always these fake outs, right? So what'll happen, this happened in 2018. How many times did it happen where like we'd go for a steep drop? And then we'd recover and everyone's like, oh, here's a ray of hope. There's the sunshine. Like maybe we're out of it and then boom, we get hit by another major drop. It happened a lot and you know,

• 5:50David Hoffman?

  I had no idea what the hell I was doing in 2028.

• 5:55David Hoffman?

  I was like, yeah, you're, you're, you're the elder millennial here.

• 5:58Ryan Sean Adams?

  Yeah. Well, man, I, I remember and I thought a few times I was like, okay, this, this has got to be it. This has got to be the end. We're still on a road to recovery. Although I will say that the feeling is a little bit different this time, David. I feel like a lot of people are, have already capitulated to the fact that we are dead in a bear market. And we might be in a bear market for years.

• 6:17David Hoffman?

  Right.

• 6:18Ryan Sean Adams?

  At this point in time. And that to me is a good signal because we didn't see that in the first mega drops of 2018. People were still in denial and they spent more of this phase in denial in that like, oh, maybe the bear market, maybe the bull market's not over. Maybe we'll just recover and things will shoot back up. Maybe this is another big dip. But what is the cryptocurrency? Start telling us from a global perspective, how much value in crypto right now?

• 6:43David Hoffman?

  Yeah, total crypto market cap up from 934 billion to 976 billion. So.

• 6:49Ryan Sean Adams?

  It's going up too.

• 6:50David Hoffman?

  Yeah.

• 6:52Ryan Sean Adams?

  The sentiment, though, from a macro perspective, doesn't feel so great. An economic update. Here's a tweet. Could you read this one out, David?

• 7:00David Hoffman?

  Yeah. 58% of Americans now living paycheck to paycheck. Consumer confidence lowest since 1950. Stock market having its worst year since 1970. Mortgage demand lowest since 2001. Credit card debt up 20% in one month. And then they followed this tweet, these metrics up with. The recession is just getting started. This is where I always go back and forth like, okay, these are all like lagging indicators, right? These are telling us of, well, you know, the zeitgeist of the times. Everyone feels bad because the stock market is down. No one's buying homes. Everyone feels priced out of homes. Not only are homes still pretty high priced, but the mortgages are really, really high. And you can see this choice of these, the economic conditions showing up in impacting consumers because they're having to load up on credit card debt.

• 7:45David Hoffman?

  And credit card debt up 20% in one month. And so, but these are all as a result of the last like three months. And I don't think they are indicative of the future three months, but they could be.

• 7:56Ryan Sean Adams?

  Yeah, this is, I think it's a good marker of sentiment. And I do think some of these data points are probably like selected, right? So, you know, for instance, this stock market having its worst year since 1970. Well, you know, at the beginning of January, stock market was like close to like all time highs, right? So there's some data sampling here that is definitely skewing towards the bearish side. But definitely this R word, I'm seeing that everywhere now. The recession, recession, recession is just getting started. And I feel like sentiment from an economic perspective has shifted towards everyone's now expecting a recession, even though that hasn't formally hit yet. But what's the US dollar doing? Because I mean, the US dollar is still strong. It's looking good. In fact, it is pumping.

• 8:41David Hoffman?

  Yeah, yeah. For the first time ever, I think there's parity between the euro and the dollar at the moment. Not the first time ever, but first time in like. Far as I can remember. Yeah, so the headline here, Euro tumbles to a 20-year low, putting parity with the dollar in sight. The Dixie, the DXY, which is a chart that we don't have up, but it's the basket, it basically measures dollar strength versus a basket of other currencies is continuing to increase. And I think this is relevant to the dollar milkshake theory. If people are familiar with that, we had Brett Johnson on the podcast forever ago to talk about what the dollar milkshake theory is. Basically, it's the general theory that in economic hardship conditions, there's a flight to dollars,

• 9:24David Hoffman?

  which is what you would expect in a downturn, people just flight to flight of dollars. But also because there's so much debt pent up in the system, that when it comes time to pay the debts, it basically, there's a squeeze on the dollar supply. Because everyone's trying to get their hands on dollars to pay back their debts. And so in bear markets, as we've seen in crypto, everyone, when time, when numbers go down, people have to pay back their debts. This is why there's a discount on staked ETH, because people sell staked ETH for Ether because they need that liquidity. People are just selling assets for dollars because they need liquidity and therefore the dollar is really, really strong right now. Sadly, this is also an indication of a future recession because as dollar strength goes up, corporate profits go down,

• 10:07David Hoffman?

  like real rates go down, et cetera, et cetera. And so it slows growth. High dollar value slows growth. And that triggers a recession in addition to all the other things that trigger recessions.

• 10:18Ryan Sean Adams?

  The basic idea is the dollar drinks every other fiat currency's milkshake. That's why it's called the dollar milkshake theory. And we're seeing the Euro at its lowest level since 2002, and Yen is down even worse to its lowest level since 2001, which is pretty crazy. Another sign of recession, it feels like is oil. So remember, we were very concerned about oil. I mean, economists were very concerned about the price of oil shooting up for all sorts of different reasons, of course, you know, war in Ukraine, other reasons as well. Now, oil has just tumbled as much as 10%. I don't know about you, David, but around me, gas prices were just down on the week, down like Forty cents a gallon or something like that, forty, forty-five cents a gallon.

• 11:02Ryan Sean Adams?

  And it's incredible how fast that is happening. But of course, oil demand being down is another sign of recession. It could be a sign of waning inflation too. We don't know because inflation itself is also a lagging indicator. What are your thoughts on this?

• 11:19David Hoffman?

  Yeah, so this is, this is a mixed data signal, right? Oil prices are down because people are buying less oil because people are buying less in general because of, you know, the quote unquote recession that we are currently in. Still debated whether in a recession or not. So dollar, like, demand for oil is down. But that's good because we need prices to go down because oil price goes down means food prices go down, which means inflation comes down, which is literally the only way out of this recession is if we get inflation to come down. So like mixed signal here. And it's kind of the signal that you want to see. We want to see oil prices come down as a result of killing demand. And so like, you know, it kind of sucks that like we're having to quell inflation by having a recession.

• 12:04David Hoffman?

  But that's kind of the bargain that we made when we printed a bunch of stimmy checks two years ago.

• 12:08Ryan Sean Adams?

  This is definitely the bargain that Jerome Powell and the central bank explicitly wants to make. If you want more info on that, go tune into our Jim Bianco episode that we did a couple of weeks ago, where he's basically like, the Fed has one big stick and it has to beat inflation over the head with it. And that stick is called recession. That stick is called making everyone feel bad so that they don't spend as much money and decreasing demand. That's the stick that we're getting beaten over the head with. So this is expected, as you'd say. A few interesting crypto numbers in the midst of all of this is, David, did you know that USDC, Circle's USDC, is now on track to topple Tether, USDT? I thought this would happen a couple of years ago.

• 12:50David Hoffman?

  Right.

• 12:50Ryan Sean Adams?

  Right? Because just Circle is a regulatory, like, from a assurances perspective, it's a, it's a more transparent dollar, stablecoin than Tether. Looks like it's happening now.

• 13:03David Hoffman?

  I actually think it makes sense that Tether took such a long time to dethrone. Hasn't been dethroned yet, but like the Regulatory gray area that Tether lives in actually is one of the reasons why it's got adopted by so many people outside of the United States. But as soon as like the United States takes a leadership position, which is being helped by Circle, like eventually the regulatory, once the regulatory arm comes in and like we all start to have regulatory fears, people go from Tether to USDC. So, I mean, the writing's been on the wall for a while. Eventually crypto was going to become big enough where regulatory reasons are concerned. So you would naturally see that flow out of Tether and into USDC. Which is what happened, by the way, like Tether has seen a decrease in total supply,

• 13:46David Hoffman?

  but USDC's market cap has grown by 8.27% since May. Highest level ever hit of total USDC supply, 55.9 billion was hit on July 2nd. In contrast, UST suffered a 19% drop in total market cap and is currently at 66.14 billion. So, USDC at basically 56 billion and Tether at 66 billion. So, not far away.

• 14:11Ryan Sean Adams?

  You know what, all the crypto bulls that I know, even if they're exiting some of their, you know, positions, their core crypto holding positions, unless they need the money to go pay bills, they're not exiting to fiat, to like dollars in a bank account. They're exiting to something like USDT or USDC or DAI, right, to these stablecoins. So it's always interesting to me in these, even these bear market cycles, you do tend to see stablecoin grow. Stablecoins appreciate in terms of total market cap because that's where people are parking their money.

• 14:42David Hoffman?

  Isn't USDC, like if you own, buy USDC and put it in your Ethereum wallet, which is, by the way, Ethereum is called an account-based ledger system as opposed to Bitcoin's UTXO, Unspent Transaction Output System. Anyways, when you buy USDC and put it in your Ethereum wallet, your Ethereum account, aren't you just using it, isn't that like a proxy for a bank account?

• 15:02Ryan Sean Adams?

  Yeah.

• 15:03David Hoffman?

  Because like USDC is one-

• 15:04Ryan Sean Adams?

  A bank account in crypto rails.

• 15:05David Hoffman?

  Yeah, USDC is one massive bank account and then all USC account owners on Ethereum are one micro bank account. It's just another proxy for it.

• 15:14Ryan Sean Adams?

  It is, but it's on better rails, right? So like, I could send you as much as I want at any point in time. There's no like banking hours. I don't have to go like show up with my ID to my bank in order to wire you funds. I can send it to any ETH address. So it's like, it's still like USDC and stablecoins are still a crypto superpower, guys. This is still a use case the world hasn't woken up to. It's so much better than trying to wire money in the stupid traditional banking system.

• 15:40David Hoffman?

  Ryan, I had to send a $10,000 wire to this angel investment this week and no one knows where it went. It's just lost.

• 15:47Ryan Sean Adams?

  It's lost?

• 15:47David Hoffman?

  I have to go call my bank. They have to go call their bank and they're like, all right, like who, where did this money go?

• 15:53Ryan Sean Adams?

  Did you see like, do you know of any mistake that was made?

• 15:56David Hoffman?

  I have no clue. I have no, I have to go find that out. But it's just like, how do we just lose money? It's like, it's like, where'd it go?

• 16:04Ryan Sean Adams?

  There's no tracking.

• 16:06David Hoffman?

  I can see, I can send a 10,000 USDC transfer on Ethereum and I can watch it penned in real time and it's wherever it's going. The fact that it just like disappears and then it's like, oh, we lost it. Like this is ridiculous.

• 16:17Ryan Sean Adams?

  It's funny. It's like, to be honest, David, even ignoring all of the hassle, which is a massive hassle, when you show up in a bank, present your ID, do the wire thing, the cost, five days it takes to get something internationally, ignore all of that, okay? Just like, I am now more nervous to transfer a wire from one place to another than I am to send a crypto transaction. It used to be reversed to me. That's another like minor flippanting. I used to be terrified to send crypto, like double check, let me send like the test transaction. Let me check this 10 times.

• 16:52David Hoffman?

  Then I'll send $1, then I'll send $10.

• 16:55Ryan Sean Adams?

  Now I still obviously check everything and make sure like user experience has gotten a little bit better and like the fact that I can see it instantly. I mean, if you're wiring money, who knows where it's going? That is way more risky in my mind. That's been interesting, you know, flip that's happened in the last, you know, two or three years for me personally. Yeah, okay, Rocket Cool, 200K ETH staked, that's a big milestone too. Another crypto number we are looking at. And then also, ENS is still on a tear. What's happening with ENS? They just released their June stats. That is a bright spot in the NFT market.

• 17:28David Hoffman?

  Yeah, so E N S June numbers, 122,000 new dot ETH registrations, 3.3 million dollars in protocol revenue, all going to the Dow. That's 2,500 ETH in revenue. 25,000 new ETH accounts with at least one new E N S name. So that's 25,000 Ethereum wallets with a new E N S name. And Ryan, that was just June. We're one week into July. And you can see that tiny little bar chart down in the bottom right corner. So far, seven days into July, we are basically where all of June was. So the last seven days, we still have three more weeks, so the July numbers finish. We're basically on par. The first week of July is basically on par with all of June.

• 18:12Ryan Sean Adams?

  David, you know anyone playing this game?

• 18:14David Hoffman?

  Oh, I know. Yes. A lot of my, there have been a lot of my crypto friends that I've been trying to, I tried to get them into DeFi summer. I tried to get them into N F Ts. They did get into N F Ts and then got burned. Sorry about that. But then of their own accord, of their own accord, without me kicking them in the butt, they're all playing the E N S game. And so, yeah, they have, they've registered a ton of E N S names. They're sitting on a lot of them. Yeah, they're playing it. And so people have found a new market to play in N F T games.

• 18:45Ryan Sean Adams?

  Look, this has an analog, right? It's domain names are valuable. Dot coms are valuable. Dot nets are valuable. They weren't like, and you could just see this, obviously, they're going to be valuable in crypto and for various things. And, you know, anyway, DOWs, N F Ts, every single piece of property will want to have its own dot ETH name. That is the bull case for all of this. I don't play in the speculation, though, David. I just, you know, we collect a few things here and there. We got bankless dot ETH. I got, you know, my initials, a few other things, but I'm not playing these games.

• 19:17David Hoffman?

  Yeah, you saw David dot ETH got bought for 32 ETH.

• 19:20Ryan Sean Adams?

  Oh, my God, really?

• 19:21David Hoffman?

  Yeah.

• 19:22Ryan Sean Adams?

  Recently?

• 19:22David Hoffman?

  Yeah, this last week, yeah.

• 19:24Ryan Sean Adams?

  I wonder what Ryan dot ETH goes for? Do you think it's worth more or less?

• 19:28David Hoffman?

  Less than 32.

• 19:28Ryan Sean Adams?

  I think David's got to be worth more. There's more Davids. There's better Davids than there are Ryans.

• 19:34David Hoffman?

  Good take, Ryan. Good take.

• 19:37David Hoffman?

  Alright guys, we've got so much more to cover. The contagion that has spread, maybe this is the last week that we'll have to talk about that, but another C5 bank going bust. This is the conclusion of Voyager and we'll talk about that. Also BlockFi gets their bailout, some good news there and crypto banks are consolidating. We're going to talk about the big winners and what that means. We will get back to all of these things, but first we want to tell you about these fantastic sponsors to help provide some tools to help you go bankless. Rocketpool is your friendly decentralized Ethereum staking protocol. You can stake your ETH with Rocketpool and get our ETH in return, allowing you to stake your ETH and use it in DeFi at the same time. You can get 4% on your ETH by staking it with Rocketpool, but you can get even more by running a node.

• 20:21David Hoffman?

  Rocketpool is the only staking provider that allows anyone to permissionlessly join their network of validating nodes. Running a Rocketpool node is easier to set up than running a solo node and you only need 16 ETH to get started. Why would you do this? You get an extra 15% staking commission on the pooled ETH, so your APY is boosted. So if you're bullish ETH staking, you can increase your APY and get some extra tokens by adding your node to the decentralized Rocketpool network, which currently has over 1,000 independent validators. It's yield farming, but with Ethereum nodes. You can get started at rocketpool.net and also join the Rocketpool community in their Discord. You can find me hanging out there sometimes in the chat, so I'll see you there. Maker DAO is the OG DeFi protocol, the first DeFi protocol to ever exist, even before we called it DeFi. Maker DAO produces DAI, the industry's most battle-tested and resilient stablecoin.

• 21:05David Hoffman?

  Using Maker, you don't need to sell your collateral if you need liquidity. Instead, you can spin up a Maker Vault and use your collateral to mince DAI directly. With Maker, the power to mince new money is in your hands. And there's something new in the Maker DAO ecosystem. Every time a new Maker DAO is opened, the owner can claim a PoW, which contributes funds to One Tree Planted, an organization with ongoing global reforestation efforts, creating a world where digital participation and the health of our environment can live side by side. Soon Maker will be present on all chains and Layer 2s, bringing the biggest and best DeFi credit facility to everywhere there is DeFi. So follow Maker on Twitter, @makerdao, and learn from the oldest and most resilient DAO in existence. Alright guys, we are back talking about the first big item this week that

• 21:46Ryan Sean Adams?

  You need to know about which is Voyager, a crypto bank, a C-Fi lending service and borrowing service went bust. We've been talking about that. They had exposures to Three Arrows Capital. Here's how this resolved. You know, though, David, I feel like all of these new centralized C-Fi lending services are kind of coming out of the woodwork a little bit, like ones that I didn't really know much about. And I don't know about you, but I didn't know much about Voyager. Did you know anything about Voyager? All crypto banks? Yeah, right. It's like, I, you know, I know the Block Fives and the Nectos and, you know, the Celsius and such. I was not covering, like, following Voyager. I was just taking a scan at their website. Look, award-winning crypto app, 100 digital assets. Look how nice this looks.

• 22:26Ryan Sean Adams?

  Looks like a nice fintech platform. I get my debit card. Looks nice, safe and secure. I can go take a look at the products here behind this and Don't forget to click on the token tab, Brian. There's a token tab, too. Let's talk about the products. Get started in under three minutes. Look at these annualized rewards here. All very nice. They do have a token, the standard loyalty token. The Voyager token. Meet the Voyager token. Boost your crypto yield with the Voyager token. All right. Crypto banks like their loyalty token. You can stake it, of course, because why not? You go to the about section and take a look at the team. Oh, look, these guys look competent. Look at those suits. They all wear ties, Ryan. They all wear ties. Biggest red flag in the

• 23:11Ryan Sean Adams?

  universe. Super competent, though. Okay, this gentleman who's the CEO is a brokerage and market structure veteran who founded Lightspeed Financial. Previously, he worked as the CEO at E-Trade, professional trading. Oh, my God, this is great. This looks like a fintech platform meets crypto. It's got the LinkedIn button. Yeah, they must keep my money secure. It must be safe to deposit and earn like 8%, interest. Wow. Yeah, look at this, man. 8% on ApeCoin. 8% on ApeCoin? Dear God. 9% on USDC? Look at these tiers. You know, it all looks very standard. All looks very, like, fantastic. Nice and shrink wrapped. And by the way, Voyager is a publicly traded company.

• 23:54David Hoffman?

  Oh, yeah, I forgot about that.

• 23:55Ryan Sean Adams?

  This is listed on the Toronto Stock Exchange. So you've got that air of legitimacy, too. But why don't you take us through what happened with Voyager?

• 24:03David Hoffman?

  Yeah, so, like, on theme, the last few weeks, we have to go back a few, a few weeks, because these things happen over, you know, longer than seven days. On June 14th, Voyager releases a digital, an update on their asset and risk management policies, which I'm going to pull out a few quotes to read from. "As a public company, Voyager operates with a consistently high level of transparency, providing regular quarterly financial statements detailing the company's financial position and financial statements to closer surrounding risk management practices and counterparty exposure. Voyager differentiates itself through a straightforward, low-risk approach to lending and asset management by working with a select group of reputable counterparties." Reputable counterparties.

• 24:44Ryan Sean Adams?

  Low risk.

• 24:45David Hoffman?

  Low risk, which are all vetted through extensive due diligence by its risk committees. "Voyager holds a strong position in the crypto industry. Not only were we among the first to go public and provide full balance sheet transparency, our leadership also has deep financial expertise across the sector and has led companies through multiple market cycles," says Steve Elrich, Elrich, chief executive officer and co-founder of Voyager. "The company is well-capitalized and in a good position to weather this market cycle and protect customer assets."

• 25:16Ryan Sean Adams?

  Well, all this sounds great, David.

• 25:18David Hoffman?

  And this sounds so good.

• 25:19Ryan Sean Adams?

  What could go wrong?

• 25:21David Hoffman?

  "It's Voyager's goal to continue to build secure products and services, as well as build trust and leadership in the cryptocurrency industry." Okay, reminder, that was June 14th. That was about three weeks ago. June 22nd, let's go forward, June 22nd. The news breaks, Voyager digital stock plunges after disclosing over $660 million of exposure in a uncollateralized loan to Three Arrows Capital. An unsecured loan. And so this balance included $350 million of USDC. SDC and 15,250 BTC loaned to Three Arrows Capital. So that news got released on June 22.

• 26:00Ryan Sean Adams?

  That's pretty unique, too, that uncollateralized loan piece of it, right? Like BlockFi ran into trouble, but their loans were completely collateralized to Three Arrows Capital.

• 26:09David Hoffman?

  Yeah, okay, so July 6th, and here's the news of this week. Voyager goes bankrupt. And so they have filed for Chapter 11 bankruptcy. And so again, a few quotes I'm going to pull out. Crypto lender and broker Voyager Digital has filed for Chapter 11 bankruptcy, estimating that it has more than 100,000 creditors. That's retail. The single largest creditor is Alameda Research with unsecured loans of $75 million. Voyager Digital is a publicly traded company listed on Toronto Stock Exchange. The company has also issued VGX token, allowing users to earn boosted rewards, high referral bonuses, and better pricing on trades. On June 22nd, the company announced that it's exposure to Three Arrows Capital,

• 26:52David Hoffman?

  listed the assets that I just mentioned a second ago. And on July 2nd, Singapore-based Three Arrows Capital filed for Chapter 15 bankruptcy, which allows the company to shield US assets and block creditors like Voyager Digital from filing lawsuits. And so on a July 6th press release, Voyager announces that it has commenced a voluntary Chapter 11 bankruptcy to provide maximum values for stakeholders. Under this plan, which is subject to change and requires court approval, customers with their crypto account. So if you're a retail investor, if you're a retail depositor into Voyager, customers with their crypto in their account will receive an exchange of a combination of the crypto in their account, as much as they can get back from Voyager,

• 27:34David Hoffman?

  proceeds from the Three Arrows Capital recovery, which could be zero, common shares in a newly reorganized company, and more Voyager tokens. So common shares in a newly reorganized company. In order to pay back the debts that Voyager owes their retail customer, they're basically like giving them equity for a new company. It's like a future IOUs, like, sorry, we don't have any money to give you, but we can print equity and give that to you instead. And so the current state of Voyager is that they have about $110 million of cash and crypto assets on hand. Remember, they gave Three Arrows Capital $660 million.

• 28:12David Hoffman?

  And they said that they will provide liquidity to support day-to-day operations. So that's if they're going to pay their employees. And then moving on to the last quote that'll read. Voyager has approximately 1.3 billion of crypto assets on its platform, plus claims against Three Arrows Capital for more than 650 million. So like they're not completely like, they have assets. They have like, I would say like 50% to two-thirds solvency, but they're missing like a big chunk, missing a big chunk.

• 28:40Ryan Sean Adams?

  So the big picture story here is crypto market goes down and then press release to reassure everyone in Voyager. Look, we have our risk processes covered. We're solvent, everything's fine. We're a responsible company. Hey, look, we're publicly traded. Depositors, don't worry about it. And of course, if you're a crypto bank in this situation, you kind of have to say these things to project confidence so that you don't get a bank run. All right. Under, behind the scenes, they had a number of uncollateralized loans to like Alameda Group, also Three Arrows Capital. These loans were not low risk at all, particularly the one to Three Arrows Capital. That went completely bust.

• 29:24Ryan Sean Adams?

  And now if you are a depositor into Voyager, so retail investor, you were looking at the website earlier, David, with those attractive returns and look at the sleek interface and you got the mobile, you know, the mobile experience and it's an easy one-button click to deposit. Well, what do you get as a result? You ain't getting your money back. What you're getting instead is whatever crypto assets are maybe remaining, some percentage of 100% that you deposited, the proceeds from some sort of Three Arrows Capital recovery, Three Arrows Capital owes them 650 million. Will they get any of that back? Who knows? Maybe Suzu's yacht is for sale. Maybe you get a portion from that. I don't know. Common shares in a newly reorganized company,

• 30:08Ryan Sean Adams?

  whatever that's worth, and Voyager tokens. That's what you get. Do you, I don't know if you remember back in like, was it like 2016? I'm going back in my past year. There was Bitfinex, which had a major hack. It was Bitfinex and they like lost funds as a result. So they lost depositors' money. And they did something similar where they kind of spun out a token and gave that to some of their depositors. It's funny, last cycle, some crypto banks went bust because they actually got hacked, lost funds. This goes all the way back to Mt. Gox. This cycle what's happening is some of these crypto banks, these centralized lending providers,

• 30:48Ryan Sean Adams?

  were completely irresponsible with their clients' funds and lost it that way. But it's kind of funny how it's playing out in a similar way that, here you get tokens, you knew equity. It actually worked out for some of the Bitfinex depositors in that, over time, their tokens were actually worth more.

• 31:06David Hoffman?

  Bitfinex did pay their customers back. They made their customers whole. It took a number of years, but they got there.

• 31:12Ryan Sean Adams?

  Yes, this could have a happy-ish ending, I suppose. Really depends on what Voyager and the management team does from here and if they're able to unbury themselves and add more value to this equity. Not a good place to be if you're a depositor, though.

• 31:25David Hoffman?

  Absolutely not. And of course, because this is contagion, we're bleeding right over into the story of Three Ours Capital. Three Ours Capital has formally filed bankruptcy, so this story is slowly coming to a close, although it will definitely take a while to play out because there's going to be a fight in court. Three Ours Capital has petitioned the British Virgin Isles Court for bankruptcy. And the reason why you would want to do this is, well, because you have to, first off. But also, they say that "without the relief requested herein," this is in their filing, "creditors may pursue a value-destructive race to the courthouse to exercise rights in a manner that would enhance their own position vis-à-vis other similarly situated creditors." Basically, Three Ours Capital owes a bunch of money to a bunch of people,

• 32:10David Hoffman?

  and all of these people, all these entities are racing to seize Three Ours Capital assets the fastest so that they could get their money back before other people get their... There's like, you know, $10 billion owed and there's like $1 billion of assets left, and everyone's trying to get that $1 billion of assets left. And so because of this race, it would create capital destruction, it would force liquidation at unfavorable rates, et cetera, et cetera. And so they are filing for bankruptcy to preserve as much capital as possible, knowing full well it's ultimately getting... get liquidated, but they will just want to liquidate it for the most amount of value possible so that they can make their creditors as whole as possible. But the point I want to make is that this is a lesson that when markets break, things revert back to lawyers and courts.

• 32:54David Hoffman?

  This is what we saw in 2008. There is still, to this day, Ryan, fallout from 2008, going through court proceedings because of the mess, the absolute spaghetti mess of the credit default swap era of like of the 2008. And so this is exactly what's happening to Three Ours Capital. And when, when, when markets break, ultimately, we have to have lawyers say like, okay, these people are this and these people are all that. And so this is an example of when, when we, things we don't want to have happen.

• 33:24Ryan Sean Adams?

  Do you know, I want to put one asterisk on that, which is like, that's true in traditional finance and centralized like markets. That does not have to be true in DeFi, right? Number one, DeFi held up better. Number two, the code is the liquidator and the settlement engine.

• 33:44David Hoffman?

  The code is the court.

• 33:45Ryan Sean Adams?

  In the Ethereum world, in the DeFi world, the code is actually the law. And so you wouldn't see that if you're liquidating a Maker ETH, you know, collateral loan. First of all, that should happen in an orderly way. Second of all, it'll all be settled on chain, completely transparently. We don't have to go to the court system. That's where things get very expensive and inefficient. It's going back to the court system and having lawyers and nation states try to arbitrate all of this stuff. And that is exactly what we're trying to avoid with DeFi, which again, we'll say, has held up very well through this liquidation cycle. I think Leighton Kusak has a take on that later that we'll get to. But one other question I have in my mind, David, is, look, these are all Three Ours Capital's NFT holdings.

• 34:30David Hoffman?

  Oh, no.

• 34:31Ryan Sean Adams?

  Look, man, look at all the ARP blocks that they purchased. Autoglyphs, Sporty Yachts, Chromy Swingles. Like, what's going to happen to these things? And you know what this reminds me of?

• 34:41David Hoffman?

  Not the CryptoPunks.

• 34:42Ryan Sean Adams?

  Do you know what?

• 34:43David Hoffman?

  Hang on, for the listeners out there, we're looking at a pie chart. It's, and so all of Three Ours Capital's NFT holdings through their Starry Night Fund, I'm pretty sure. We got 40.7% of their NFT holdings are CryptoPunks. Ow, my bags.

• 34:57Ryan Sean Adams?

  It's gonna be liquidated, brother.

• 34:58David Hoffman?

  Art Blocks Curated is 33.5% of their holdings. They got some pegs, which I don't know what that is. Mutant Ape Yacht Clubs, they got a few Autoglyphs, some other things. God, they're gonna liquidate so many CryptoPunks.

• 35:15Ryan Sean Adams?

  All this stuff looks good on the way up. It doesn't look so good on the way down. And I'm reminded by this, to me, this was like peak NFT season. Do you remember this tweet from Suzu?

• 35:23David Hoffman?

  Right, they spent so much money on that.

• 35:26Ryan Sean Adams?

  Are we looking at an Art Blocks NFT? Is that what this is?

• 35:29David Hoffman?

  That is a ringer. That is an Art Blocks.

• 35:30Ryan Sean Adams?

  It's a ringer, which was, you know, peak NFT season. This was a tweet from Suzu from August 27th, almost a year ago. The thesis, we like the goose. It's because this random generated NFT art looks like a goose. And I like it too, but now it is part of that pie chart, David. It is being liquidated. I know that I like it for like $10 million or whatever was, was paid for this thing at the time. So that's what's happening with Three Ours Capital. A few other contagion events.

• 36:02David Hoffman?

  Hang on, hang on, hang on. I'm gonna go find out how much that goose was sold for.

• 36:07David Hoffman?

  You know where I found out?

• 36:09Ryan Sean Adams?

  Where?

• 36:10David Hoffman?

  Metaverse. Thanks, William. Hey, Ryan, you wanna know how much that goose was sold for?

• 36:16Ryan Sean Adams?

  I'm super curious. Can I guess, though?

• 36:18David Hoffman?

  Sure.

• 36:19Ryan Sean Adams?

  I'm gonna guess, I said 10 million just now. I'm gonna guess actually 15 million, I'm gonna round it, boost that up.

• 36:24David Hoffman?

  5.66 million, 1,800 Ether.

• 36:28Ryan Sean Adams?

  That's a deal.

• 36:29David Hoffman?

  So.

• 36:30Ryan Sean Adams?

  What's it worth now?

• 36:32David Hoffman?

  I don't think very much. I'm gonna go with like, under half a million dollars. Bought for 5.5 million, 5.6, under half a million dollars.

• 36:41Ryan Sean Adams?

  Do you know one thing? If it's Suzu's personal funds, but now that you know kind of the history of Three Ours Capital, and this is like, some retail money went into this.

• 36:51David Hoffman?

  Right, yes. If you deposited your money into Voyager, you helped Three Ours Capital buy the goose. Did you know you were doing that? They borrowed your money and bought NFTs with it and now those NFTs are down bad.

• 37:06Ryan Sean Adams?

  Things got silly, man. Things got very silly. But some consolidation is happening in the crypto banking system, at least the, the, the strong crypto banks, the ones that have survived, the Binance's of the world. We talked to CZ last Friday. He said he's looking at buying things. Sandbank Benfried from FTX will talk about what he's doing with the BlockFi deal. But also Nexo, which is a centralized lending and borrowing platform, a C-Fi crypto bank, has come out of this stronger and is now in the process of potentially acquiring crypto lender Vault. This is another one I haven't heard of. I haven't heard of Vault, but it looks like they're sniping those assets.

• 37:47David Hoffman?

  All crypto banks, they're coming out of the woodworks.

• 37:50Ryan Sean Adams?

  So we're seeing this consolidation. I think Nexo is going to come out of this stronger. I think FTX is going to come out of this stronger. Binance is going to come out of this stronger. Anyone who wasn't irresponsible during the bear market, if you weren't irresponsible or during the bull market, if you weren't irresponsible during the bull market, if you have some cash on reserve, if you didn't go margin long, if you didn't bet everything 100% of your net worth, you're going to come out of this stronger as well. And that is the lesson that we learn every single bull market, don't we?

• 38:21David Hoffman?

  If I had my money in Nexo, I'd be like, oh, thanks, guys. Thank you.

• 38:26Ryan Sean Adams?

  I guess. It's a crapshoot, though. Could you guess which one?

• 38:28David Hoffman?

  You don't know until, like, you don't know until after it's too late. And so like, it's like, it's like, all right, like, you want to get your yield, you're going to use a C-Fi lender. You got Celsius, you got Nexo, you got, I don't know, name some other ones for me. You got, you got all these ones.

• 38:43Ryan Sean Adams?

  Voyager.

• 38:43David Hoffman?

  It's just like, place your bets. Well, Voyager, no, Voyager was a crypto exchange. They weren't even a lend. Oh, they were a lender.

• 38:48Ryan Sean Adams?

  They were. They did that, too.

• 38:49David Hoffman?

  Yeah, you're right. So but it's like, you know, place your bets, which one of these is responsible and which one's not.

• 38:54Ryan Sean Adams?

  Because the marketing all sounds the same. The website looks the same. The management, the executives that they hire all are wear suits and ties and look very official. So you have no idea. Until something like this happens. That's pretty rough. It's a pretty rough existence. What happened to the BlockFi story, though?

• 39:12David Hoffman?

  We keep on reporting on this contagion every single week because, again, as soon as things goes to court, it takes a long time to play out. But at least one part of this story, we are going to formally wrap up, probably, which is the BlockFi side of these things. FTX and BlockFi have reached a deal for up to, but not at, $240 million. So they are acquiring BlockFi, all of BlockFi, right? Like, all of it, for up to $240 million, which also gives BlockFi a $400 million revolving credit facility, basically a loan, to allow for liquidity for their users. And so

• 39:49David Hoffman?

  this $240 million valuation depends on startups, on BlockFi's performance triggers. So they need to, like, hit certain milestones. And if they don't hit certain milestones, then that valuation goes down. What these details are undisclosed, but there's rumors that the lowest end of this thing is a $25 million valuation. And so here's a statement out of, or a quote from this Blockworks article. Although Prince, Zach Prince, the CEO of BlockFi, did not disclose the lower end of the acquisition, CNBC reported that the deal was pegged at $25 million. Prince denied CNBC's reporting, which he dubbed unfounded, which, I mean, is part, kind of,

• 40:31David Hoffman?

  par for the course for these, like, C-Fi banks that say, like, trying to preserve, like...

• 40:37Ryan Sean Adams?

  And maybe it is, maybe it's not, we don't know. But you know FTX is getting a great deal on this, right? They are in the driver's seat. They set the terms of the negotiation, like Darth Vader-style, coming in here and being like, "Hey, this is what we're gonna do for you." Do you know what's great about this, though, David, is in this BlockFi situation, because there's gradients of how irresponsible, or even responsible, that C-Fi lenders actually were, right? So you have Nexo, which is still left standing. They probably did an okay job, as evidenced, we don't know all of the details, but as evidenced by the fact that they're still standing in their building. FTX did a fine job managing risk buying. Did a fine man job managing risk, it seems.

• 41:19Ryan Sean Adams?

  Celsius on the other side did a terrible job managing risk. The only one worse that we've seen so far is probably Voyager, which was just handing out unsecured loans.

• 41:29David Hoffman?

  Well, 3O's Capital was the worst.

• 41:31Ryan Sean Adams?

  Yeah, yeah, of course. Yeah, on the other side of things, but they were, they were like, not accepting deposits directly from retail, even though they were behind the scenes.

• 41:39David Hoffman?

  No, they were, they were accepting deposits from retail aggregators.

• 41:43Ryan Sean Adams?

  Yeah, exactly.

• 41:43David Hoffman?

  Retail aggregators gave money to 3O's Capital. Again, we said this in the last roll up, 3O's Capital was the contagion. That like, that 7% that you saw on Voyager, 3O's Capital. That like, whatever percent you saw on Celsius, 3O's Capital.

• 41:58Ryan Sean Adams?

  Well, except Celsius was doing some other things. Remember Celsius was like, they were like, they were in staking assets. They were like betting in these weird speculative DeFi things. They were doing, they were off the, you know, doing something else completely.

• 42:11David Hoffman?

  Capital and Celsius.

• 42:12Ryan Sean Adams?

  But BlockFi, okay, they were kind of in the middle. They did some things that were irresponsible. I'm sure that they regret doing, but in this case, depositors' funds are going to be safe. FTX has bailed them out. It's looking good. If you have your funds in BlockFi, you should be able to get all of your money back. They never had to pause anything. So there's kind of gradients, right? We see like really bad case scenarios. We see decent risk management coming out of this stronger on the other side. And we see situations like BlockFi, which are kind of in the middle. They definitely failed, but not completely. This is the last, maybe, I hope, this won't be the last time we hear about Celsius. But what happened this week with Celsius, David?

• 42:52David Hoffman?

  Yeah, so Celsius famously has this Maker DAO vault. They have a bunch of WBTC inside and they pulled out a bunch of DAI. As of very recently, they have fully paid off their entire debt. So they no longer have debt in their, in their vault.

• 43:09Ryan Sean Adams?

  Is that a good thing?

• 43:10David Hoffman?

  Well, it sounds like a good thing. Basically, like, my interpretation is they are waving the white flag and say, like, we have had enough. Like, we are out. We are liquidating at whatever price.

• 43:20Ryan Sean Adams?

  So they're selling all this?

• 43:21David Hoffman?

  We're selling. And so, Hal Press says it does indeed look like Celsius is prepared to sell about $500 million with the BTC. That was tweeted out just a couple hours ago from the time of recording. And so, like, it's basically like a change of pace, where Celsius previously was like agro-leverage yield farming. Now they are being hyper-conservative at like suboptimal prices. And so, because of this like change in demeanor, my opinion is that they and other people are saying like, "Well, they're kind of gonna close up shop and this is what they're doing." That's just speculation, but the idea, the change of, like, we're going, we were going to try and have this business of leveraged yield farming, but now we're just gonna pay back all debt possible and just like liquidate whatever assets we have.

• 44:06David Hoffman?

  It's like, to me, they're just waving the white flag.

• 44:08Ryan Sean Adams?

  And so, this is a tweet from Light Crypto. "Sells, that's C E L, squeezing on vault repayment is comical when considering that this is likely a move in preparation for bankruptcy filing." I think "sell" is the Celsius token, right?

• 44:20David Hoffman?

  Correct.

• 44:21Ryan Sean Adams?

  And so, they're talking about price action here. It all begs the question of, what in the world is the "sell" loyalty coin actually worth, right? What is the Voyager loyalty coin that depositors are getting? What is that worth in this world? The truth is, nobody actually knows.

• 44:38David Hoffman?

  It's not equity, whatever that, whatever it is, it's not equity. Anyways, that is all of the contagion once again. There'll probably be more things to talk about next week, but at least some of these stories are coming to a close. Coming up next in the show, we're gonna have to burn through these because we took a really time, a little on time on the market section and contagion section, like I would imagine we would. But NFTs on Facebook, crazy that that's not like the biggest news of the week. Reddit, also deploying NFTs on Polygon, also crazy news. There's crypto phone wars to talk about, there's people getting into the hardware game, and also merge updates. Like, actually big news, but, you know, contagion.

• 45:17Ryan Sean Adams?

  Overshadowed.

• 45:18David Hoffman?

  If it bleeds, it leads, Ryan. If it bleeds, it leads. So we're gonna get to all of that news right after we get to some of these fantastic sponsors that make the show possible. Arbitrum is an Ethereum Layer 2 scaling solution that is going to completely change how we use DeFi and NFTs. Some of the coolest new NFT collections have chosen Arbitrum as their home, while DeFi protocols continue to see increased liquidity and usage. You can now bridge straight into Arbitrum for more than 10 different exchanges, including Finance, FTX, Huobi, and Crypto.com. Once on Arbitrum, you'll enjoy fast transactions with cheap fees, allowing you to explore new frontiers of the crypto universe. New to Arbitrum, for a limited time, you can get Arbitrum NFTs designed by the famous artists Ratwell and Sugoi for joining the Arbitrum Odyssey. The Odyssey is an eight-week-long event where you complete on-chain activities and receive a free NFT as a reward.

• 46:01David Hoffman?

  Find out more by visiting the Discord at discord.gg/Arbitrum. You can also bridge your assets to Arbitrum at bridge.arbitrum.io and access all of Arbitrum's apps at portal.arbitrum-one, in order to experience DeFi and NFTs the way it was always meant to be: fast, cheap, secure, and fiction-free. There is a brand-new staking feature in the Ledger Live app today. We all like staking the assets that we're bullish on, and now you can stake seven different coins inside the Ledger Live app: Cosmos, Polkadot, Tron, Algorion, Tezos, Solana, and of course Ethereum. With Ledger Live, you can take money from your bank account, buy your most bullish crypto asset, and stake that asset to its network, all inside the Ledger Live app. Through a partnership with Figment, Ledger also lets you choose which validator you want

• 46:46David Hoffman?

  to stake your assets with, and Ledger is running its own validating nodes, offering a convenient way to participate in network validation, and it even comes with slashing insurance. Ledger Live is truly becoming the battle station for the bankless world, so go download Ledger Live. If you have a Ledger already, you probably already have it, and get started securely staking your crypto assets. The merge! We have successfully merged Supoilia, the second of three test nets, has finally completed, that went through a couple days ago, and it was successful. There were a few hiccups here and there, but they were not related to the merge, and so the general consensus is that this is good news, and whatever the hiccups were, they were unrelated to actual merge progress.

• 47:29David Hoffman?

  So here's Terrence.Eth, who I believe works at Prismatic, yeah, I'm pretty sure that's true, and he says- Transition itself was a success. 25 to 30% of the validators went online shortly after the merge. The offline validators were due to wrong configurations. Since then, the offline parties have updated their configurations and validators are up. So like, there are no client bugs and the hiccups will not delay the merge. And so, cool, good news. We are at 95% participation rate. So that's like a 95% success rate, which is pretty damn good. The numbers that you don't want to see are 66% or below. I'd say like anything above like 92.5% ish feels pretty damn good. 95% is pretty good. 95% is pretty good.

• 48:11Ryan Sean Adams?

  David, what's the next one? Remind us. So we've got, these are dress rehearsals, right? We've got two down. Is it one, one left?

• 48:17David Hoffman?

  One left. The Gorley testnet, the last testnet. And this is the one where like, oh, this one makes it real. And so the state of the aftermath of the Gorley testnet, whether it's positive or negative, will become extremely indicative of the, of the actual merge. If it's a bad result, then like we might kick the testnet, the merge back one or two months. If it's a good result, like yo, like late August, early September.

• 48:41Ryan Sean Adams?

  Don't say it. Stop.

• 48:43David Hoffman?

  Late August, early September. I didn't say dates. I said late August, early September.

• 48:48Ryan Sean Adams?

  That's a date range, my friend.

• 48:51David Hoffman?

  Anyways, when the Gorley merge happens, TBD on the actual date, there has to be a date decided. The date will probably be decided. When's the next All Core Devs Call? A week from today. We are live streaming. We are live streaming this with the East Dakers group.

• 49:05Ryan Sean Adams?

  Oh, we are? Thankless.

• 49:06David Hoffman?

  Oh, you do not know that? Oh, yeah.

• 49:07Ryan Sean Adams?

  No, when is that?

• 49:09David Hoffman?

  Well, Ryan, in about seven days, the All Core Devs Call will determine when the Gorley testnet is.

• 49:14Ryan Sean Adams?

  I should listen to these rollups more closely.

• 49:16David Hoffman?

  Yeah. If it's not decided, then it'll be decided at a later All Core Devs Call. But when the Gorley testnet does merge, we will be live streaming it with the, with the East Dakers group and a bunch of other people. Maybe we'll invite Hal Press on, because good timing then. And that, that's when we get to see.

• 49:31Ryan Sean Adams?

  Oh, let's definitely have Hal Press back.

• 49:32David Hoffman?

  Yeah, let's do that.

• 49:33Ryan Sean Adams?

  I want to see if he's buying in yet.

• 49:34David Hoffman?

  Yeah.

• 49:35Ryan Sean Adams?

  What's happening? If he's still trying to bet on the merge.

• 49:37David Hoffman?

  Oh, I got dinner with Hal Press not too long ago. I got a bunch of alpha I haven't told you yet.

• 49:41Ryan Sean Adams?

  All right. I want to hear that too, after the show.

• 49:43David Hoffman?

  Yeah.

• 49:44Ryan Sean Adams?

  We'll leave it to a debrief, David, on the premium podcast feed. Guys, let's, let's talk about some news that went by the wayside.

• 49:52David Hoffman?

  We're totally gonna do that. Hal Press Alpha League on the premium feed.

• 49:56Ryan Sean Adams?

  No, we'll open that up to everyone. Facebook is testing Ethereum and Polygon NFTs on its profile. Facebook, this is the company now called Meta, but Facebook is the platform with 2 billion users worldwide. They're getting into NFTs and no one noticed this week. What's happening here?

• 50:15David Hoffman?

  Well, so, I mean, we already reported on the Instagram integration of NFTs and it's more like, more or less the same thing, but for Facebook. So users will have a digital collectible tab on their Facebook profiles where they can showcase their NFTs. And users will be able to connect their wallets to their Facebook profiles and they'll be able to turn their NFTs into Facebook posts, which can be reacted to, liked on, commented on. It's basically just like, kind of basic NFC integration into Facebook. So like, that's awesome. Like, Facebook's huge, right?

• 50:43Ryan Sean Adams?

  Now you can buy an NFT for your mom.

• 50:44David Hoffman?

  Right.

• 50:45Ryan Sean Adams?

  For Mother's Day, right?

• 50:46David Hoffman?

  And make a post about it. Yeah, but the thing is like, this is like, who's left on Facebook? It's like, our crazy aunts and parents and stuff.

• 50:54Ryan Sean Adams?

  I don't know. When's the last time you logged into Facebook?

• 50:57David Hoffman?

  Forever ago, dude.

• 50:59Ryan Sean Adams?

  You're heavy Instagram, though.

• 51:01David Hoffman?

  Yeah, I'm pretty heavy on Instagram. Don't follow me. Please don't follow me. I deny every single request. Not you.

• 51:09David Hoffman?

  The listener.

• 51:13Ryan Sean Adams?

  Now you've got me curious.

• 51:14David Hoffman?

  Yeah, no, you can follow me. I get a bunch of Instagram follower requests. I delete every single one, so don't try it.

• 51:20Ryan Sean Adams?

  NFTs on Facebook, though. That's a big deal, man.

• 51:22David Hoffman?

  Yeah. I mean, is it though? Cause like, now all of our aunts are gonna reach out to us and be like, "Son, can you help me set up my crypto wallet so I can share these NFTs?"

• 51:32Ryan Sean Adams?

  Dude, why are you making fun of that? I'm so happy to help all my aunts and uncles and everyone who wants to. I will help you, mom.

• 51:39David Hoffman?

  Good luck for that. Let me know how that goes.

• 51:43Ryan Sean Adams?

  Don't follow David on Instagram.

• 51:44David Hoffman?

  Don't follow me on Instagram.

• 51:45Ryan Sean Adams?

  Crypto Phone Wars. Did you see that this week?

• 51:48David Hoffman?

  I did see that.

• 51:50Ryan Sean Adams?

  We forgot to look at this. These are what the NFTs, for those looking at it on Facebook, this is what they're gonna look like in Facebook.

• 51:55David Hoffman?

  See, they're just normal pictures, but they just have like the digital collectible hexagon checkmark.

• 52:01Ryan Sean Adams?

  Yes.

• 52:01David Hoffman?

  The only thing.

• 52:02Ryan Sean Adams?

  Hey, these aren't just JPEGs, okay? This is property rights.

• 52:04David Hoffman?

  Verified verified JPEGs.

• 52:07Ryan Sean Adams?

  You know what? It's cooking up, uh, heating up, though. It's the crypto phone wars. Okay? Solana just released a flagship Android phone. I think they bought this company. It's called, um, Sega. The thesis here from Anatoly, what the founder of Solana, "Almost 7 billion people use smartphones around the world, and more than 100 million people hold digital crypto assets. Both of these will continue to grow." So Solana should own its own in-house phone company in order to deploy this. So far, David, sales not looking too good. You'd actually see this on chain. Sales, pre-sales have been about 2.5 thousand K pre-orders, which kind of begs the question of like,

• 52:50Ryan Sean Adams?

  does a blockchain really need to have its own phone? I know Anatoly has a history of like Qualcomm. He's very close to this. So maybe he feels differently. But I gotta tell you, this would feel really weird if the Ethereum Foundation was like, "And now we have a phone."

• 53:05David Hoffman?

  The Ethereum phone.

• 53:07Ryan Sean Adams?

  "We bought some like Android, uh, you know, startup company." It feels very strange. It feel, I'm, I'm not gonna say it. No, I'm gonna say it. It feels a little EOS, David, to me. Remember that they were off buying like?

• 53:19David Hoffman?

  Voice.com.

• 53:20Ryan Sean Adams?

  Yeah, and you know, social networks and all of these things, because they didn't know what else to do with their capital and they had so much of it. Maybe there's a justification for this. Maybe I'm wrong. I gotta be honest, though. I don't really get it. It seems like a massive distraction to a blockchain network.

• 53:37David Hoffman?

  The answer here is what is the unique properties of the hardware of the Solana phone versus a normal phone? Like, because that's the only reason why you would get into the hardware game.

• 53:48Ryan Sean Adams?

  A hardware game, yeah.

• 53:49David Hoffman?

  Solana, Ethereum blockchains, these things are software. So you want software in your phone. What is the difference? Like, we can have a secure enclave to have like verifiably, like basically a built-in hardware wallet in your phone, which is like separated and compartmentalized from the rest of the phone? That's the only like hardware thing I can really think of. That would be like different for that would enable like a blockchain phone. Other than that, it's only software.

• 54:14Ryan Sean Adams?

  Blockchain phones have been tried. They've never done well. They've never done well.

• 54:18David Hoffman?

  They've never done well.

• 54:19Ryan Sean Adams?

  Now, this is a different strategy. It's interesting, it's the same weakness. Why we call it the wars because there's size to this. So Polygon is taking a different approach to the the mobile phone wars. Here's what he says. Mass adoption of Web 3 will happen on mobile. Polygon is prepared for it. Our strategy is not to make our own devices. Interesting contrast. Instead, we will integrate with existing manufacturers. Today, we are proud to announce our first major integration. This is the HTC Desire, which is going to be a metaverse phone with Ethereum and Polygon support. So the difference in strategy here is they are not getting into the hardware game. They're not acquiring anything. They're partnering with existing phone manufacturers and phone builders. And to me, this makes a bit more sense.

• 55:04Ryan Sean Adams?

  But I guess we'll have to see these strategies play out and, you know, it could be proven wrong.

• 55:08David Hoffman?

  One, Ryan, one does not just make a phone. It's just not what you do.

• 55:13Ryan Sean Adams?

  Is a Bore Me or mean? One does not just make a phone?

• 55:16David Hoffman?

  Yeah, that's exactly right. Like, that's hard. That's an extremely saturated market. You're going up against like HTC, you're going up against Apple. Like, you don't have a competitive advantage just because you also have a blockchain ecosystem. That blockchain ecosystem does nothing for you. So it makes sense to like, what do Polygon should do what Polygon does best, which is build software. And they should partner with somebody that does hardware really, really good, like HTC. So a few more details. HTC preloaded its 4.6 inch phone with applications from its metaverse arm, Viviverse, offering users what is called a rich metaverse experience without a VR headset. With Viviverse apps and Vivi wallets built into the phone, users can create virtual avatars, manage crypto assets, including non-fungible tokens and cryptocurrencies on Ethereum and Polygon,

• 56:01David Hoffman?

  the company said in a press release. That seems to make much more common sense to me.

• 56:06Ryan Sean Adams?

  Hey, Bankless Nation, are David and I missing something? Tell us.

• 56:10David Hoffman?

  I mean, I'm not a hardware expert.

• 56:12Ryan Sean Adams?

  Tell us in the comments.

• 56:13David Hoffman?

  Actually, I have built a computer before. I know something.

• 56:16Ryan Sean Adams?

  Look, YouTube commenters will tell us if we're wrong, David. Even if we're right, they'll still say we're wrong.

• 56:21David Hoffman?

  The alpha is always in the YouTube comments, isn't it?

• 56:24Ryan Sean Adams?

  Talk about this. This is a, you know, a quick thing, but I think worth talking about. Immutable with a fiat off-ramp? What's this?

• 56:29David Hoffman?

  Right. Okay, so Immutable tweets out, "Major update: ETH off-ramp is now available to any developer building on an Immutable X-Power platform. Developers can enable their users to sell Layer 2 Ether and have their proceeds deposit directly into their bank account." Okay, so you know how we talked about Juno going from your checking account straight to a Layer 2? This is the opposite. So if you have Ether on Immutable, you can go from Immutable to your bank account. Why would you want this? Well, imagine you're somebody who does not care about crypto, but you do have this crypto game that you really want to play.

• 56:59Ryan Sean Adams?

  I can't imagine that. I can't get in that headspace, sir. But go on.

• 57:03David Hoffman?

  And you keep on playing this crypto game and you acquire a bunch of assets and you're like, "Oh, these assets that I've acquired are like, I can get like $200 into my bank account." Now you can, with a sample of your fingers, go from the gaming asset that you just acquired, sell them on some marketplace, which Immutable already has built, that's already done, turn that into Layer 2 Ether and then send that money straight into your bank account. So that is a user acquisition strategy. It's an integration strategy. It's an onboarding strategy. And it's also a Trojan horse, Ryan, for a bankless life. Because first you come in, you play a bunch of games, make a bunch of assets, sell a bunch of ETH, put your money back in the bank account, and then you're like, "Well, wait a second. But what about all that DeFi stuff?" And then all of a sudden, you're a bankless person.

• 57:44Ryan Sean Adams?

  This crypto thing becomes really real when people start earning money in it, right? So like, you're earning these crazy expensive gaming items, and then you can convert that to go pay your rent, pay your mortgage, buy something. That's when all of this becomes real. If Facebook wasn't enough, Reddit, 400,000 over 400,000 monthly active users is launching an NFT marketplace on Polygon. They're using Polygon for that. Pretty big deal to me. They're starting very small, David, though. Starting with one NFT community, a small set of avatars, but I don't know if you've ever seen this in Reddit. There's the ability to create your own avatar. And so they are going to, right now, this is not fully NFT enabled,

• 58:26Ryan Sean Adams?

  but it's going to be such that you can select a collectible that is an NFT and set that as your avatars. They're going to be selling these NFTs as well, and they're going to be partnering with artists. A 50/50 revenue split on transaction sales. So anytime a piece of art is sold on OpenSea, then the artist gets 50% of the transaction sales on that. So kind of a unique new model that Reddit is now experimenting, and I'm curious to see where this goes.

• 58:56David Hoffman?

  That is kind of the NFT adoption that we were really looking for. Rather than like NFT artists going straight to the blockchain or straight to some like, you know, front end, they're just going to more, you know, obfuscated platforms, abstracted platforms like Reddit. And just like ultimately things settle down back to the blockchain. But so much of the blockchain is hidden the way it should be anyways in the first place. Like if you think the future of NFTs are people like going to OpenSea and buying NFTs, that's not the future of NFTs. It's like aggregators like Reddit who use Polygon and like NFT minting in the backend and then just display the thing on the frontend.

• 59:33Ryan Sean Adams?

  Yeah, like you can buy these things with a credit card. It's like $25 in a credit card. Done. Don't even know you're on a blockchain.

• 59:39David Hoffman?

  100%. So that is just user acquisition right then and there.

• 59:43Ryan Sean Adams?

  Talk to me about more NFT stuff in the Moonbirds world. Is Moonbirds mooning again? Is that a thing?

• 59:50David Hoffman?

  Yeah, so apparently the Moonbird floor went up, and so somebody asked why. And somebody responded with a picture of a trademark, a trademark filing system. So there's a lot of text here. So I read what they were filing a trademark for. It's called Moonbird Ravens. It's basically an online NFT marketplace. The issuance of possible of currency, so like maybe like a Moonbird ERC20 airdrop. There's also online art gallery services that are part of this like spec for their trademark. create a virtual environment in the name of an online community for registered users to collaborate, share and comment on digital media and also with social networking services.

• 1:00:32David Hoffman?

  So Moonbirds filed a patent called Moonbird Ravens that does all of these things. So basically they're making a metaverse. So incoming Moonbirds token and Moonbird Metaverse. Cool.

• 1:00:42Ryan Sean Adams?

  There you go. Kevin Rose has been busy. We'll have to bring him back and see what he's up to. Also, do you remember that Axie story, the bridge hack? What happened there? Some details broke about what actually happened. It's kind of a crazy story.

• 1:00:53David Hoffman?

  Yeah, so no one really knew how the bridge got exploited. We just knew that it did get exploited. Apparently, we found out. And so one of the Axie people that was in charge of like running the the bridge nodes applied for a job that involved him downloading a PDF. And so that PDF had corrupted code in it and that corroded. And so this guy was specifically targeted by the Lazarus group, by the way. The Lazarus group is that North Korean hacking group. So like this, this Axie engineer was targeted by North Korea.

• 1:01:27Ryan Sean Adams?

  From applying to an external job, right?

• 1:01:28David Hoffman?

  Applying to an external job and this job application like had him download a PDF. And that PDF had corrupted code in it, weird code magic that that was able to expose the private keys to the validator and allowed for North Korea to drain the Axie Infinity Bridge. Ryan, I knew that a doc X file could have bad, like malicious code in it. I did not know that a PDF could have malicious code in it. That is news to me. What file format is safe? Are there any safe file formats?

• 1:01:57Ryan Sean Adams?

  JPEGs are still safe, David.

• 1:01:58David Hoffman?

  JPEGs?

• 1:01:58Ryan Sean Adams?

  All your NFTs and JPEGs are still safe, 100%. GIFs are safe. Beyond that, I can't tell you. Don't download any GIFs.

• 1:02:04David Hoffman?

  GIFs are safe?

• 1:02:04Ryan Sean Adams?

  Stop using the internet, sir. That's what you have to do. It's serious, though. I mean, this is a $540 million hack. And an individual being targeted in this way is, it's a pretty sophisticated attack. It still kind of boggles my mind. And I mean, people in crypto have to be very careful.

• 1:02:24David Hoffman?

  Right. And anyways, speaking of being careful and how crypto people need to do more of that. Uprise, again, a crypto bank or crypto investment fund, I don't even know, but some entity called Uprise lost 99% of clients' funds. You know, did you know what it was for, Ryan? By shorting Luna during the price crash. And so what did they do? They went, they shorted Luna at $30 with 100x leverage. And then Luna hit $32 before going to zero and they got liquidated. This is the lesson in fractals where like if you take 100x leverage, your timeframe goes from long to extremely short.

• 1:03:06David Hoffman?

  And so it doesn't matter if you are in a like a 99.99% downtrend. If you take 100x leverage, you're taking a micro slice of that price chart. And that thing could go up like a ridiculous amount. So like, what was Luna at the height? It was something like, I don't know, like $250. If it goes from $250 down to $30, that's like down like 85, 90%. If it goes up $3, that's up 10%. And if you take 100x leverage, you get liquidated at that level. That is ridiculous. Imagine losing your entire business by shorting Luna with 100x leverage.

• 1:03:42Ryan Sean Adams?

  So dumb. It's so dumb. It's embarrassingly stupid. This is, Uprise took custody crypto assets from customers and traded them in cryptocurrency futures market. And this is what they were doing with it. They say that they have an AI-enabled trading technology.

• 1:03:57David Hoffman?

  Ooh, AI-enabled, little boy.

• 1:04:00Ryan Sean Adams?

  With leverage crypto trading. Wow. And you're gonna go short Luna in this type of a market. It's just, you know, some of the mistakes that were made by so-called professionals this cycle are completely embarrassing. Like, I, it's hard for me to wrap my head around it, honestly. It's been the most surprising thing about this downturn is how dumb the so-called professionals have been. Not all of them, but enough of them where you're like, what? Like, is this your first time in crypto? Do you know nothing?

• 1:04:33David Hoffman?

  You're not a professional.

• 1:04:34Ryan Sean Adams?

  Oh, you're just taking leverage. I guess, I mean, maybe it's just the excess of greed that, because some of these are smart people. I actually don't, I fundamentally don't understand how these mistakes were made unless you use some explanation of like, you know, kind of greed and ego. It's, uh, it's, it's gonna be something we're, we'll, we'll study in the weeks to come, in the months to come. Gotta touch this quickly too. Recently, last week, the EU finalized some new crypto legislation. I'm going to read you some key points from a thread put together from the policy leader at Ledger, which of course Ledger, the hardware wallet, they are based in France. So they've been tracking this thing closely. And the TLDR of this legislation is called MICA.

• 1:05:15Ryan Sean Adams?

  It doubles down on the failed notion of leading in regulation. This is Seth, who's saying this from Ledger, rather than prioritizing innovation, but it could have been worse. So it fails in a lot of ways. It doesn't prioritize innovation. It prioritizes regulation, but also David, it could have been worse. Okay, here are some of the things that were good and some of the things that were bad. On NFTs, it was good. They were fully out of scope of this round of regulation. So that's a good thing. So is DeFi, another good thing. But Parliament failed to ban proof of work blockchains and assets directly. While they, while they didn't ban it directly, they snuck in a potential backdoor to ban it later.

• 1:05:59Ryan Sean Adams?

  So within two years, the commission must report on mandatory minimum sustainability standards for consensus mechanisms. So leaving the door open to completely ban proof of work, which is not awesome. Also, stablecoin regulation was particularly heavy handed and requires a physical presence in the EU. Not completely clear what that means, but I wonder if, if this means in some way, if you are issuing a stablecoin in the EU, you actually have to be jurisdictionally located in the EU. So there's some complications around that. So all in all, a big step. It's not done yet. There is going to be a second level of, of legislation, some review clauses, some more agency reports.

• 1:06:42Ryan Sean Adams?

  And I know those crypto companies that are based in, in Europe will continue fighting for this. So not great, could have been worse though. I guess that's what we should expect from legislators and regulators at this stage in the game.

• 1:06:56David Hoffman?

  Also going to be one of those things that we continually report on going into the future, something actually really cool pivoting here, really cool release out of the Layer 2 Aztec network, Aztec Connect finally got launched on mainnet. For those that don't know, Aztec Connect is kind of like a private VPN for your Layer 1 DeFi stuff. So you go to the Aztec Connect Layer 2, you put your money there, and then via that Layer 2, that Layer 2 will interact and engage with Layer 1 DeFi apps on your behalf in like this privacy wrapper. So it's like when you're on the Aztec Layer 2, you get to go do stuff in DeFi, but you still exist on the Layer 2 and it's private. And they use complicated cryptography magic

• 1:07:37David Hoffman?

  stuff to make that happen. Basically, what gets to happen is that you get to do confidential DeFi, staking, vault entry, lending and swaps, all private. You get significant gas cost reductions because there's this beautiful symbiosis between privacy and scalability. And you also get to have like private treasury management. So like DAOs get to manage their treasuries without like disclosing what they're doing. You also do like private NFT purchases and private trading and all that stuff. And so that's pretty cool. That is a release you can go and play around with that. And Aztec has not released a token. So maybe you would want to go play around with that.

• 1:08:12Ryan Sean Adams?

  Do you remember our last market segment, we were talking about privacy tokens and Zcash and Monera and all of these things?

• 1:08:17David Hoffman?

  Right.

• 1:08:17Ryan Sean Adams?

  Is this essentially embedding that as an app into Ethereum?

• 1:08:21David Hoffman?

  So I've always said, privacy is an app, not an asset. I don't understand privacy tokens. I do understand privacy apps. That makes much more sense.

• 1:08:32Ryan Sean Adams?

  This is really cool. And I think it's really bullish for privacy and hopefully this continues to pick up steam. David, we got some bankers that are leaving their banks and going into crypto. What's this? And do you think this is going to be a trend?

• 1:08:46David Hoffman?

  Yeah, quick headline, three execs leave JP Morgan this week to join crypto firms. So the brain drain out of TradFi and into DeFi continues. So bankers going bankless, what we love to see.

• 1:08:59Ryan Sean Adams?

  If you are a banker and you want a job in crypto, come on over to the Bankless Jobs Board, alright? Get a job in crypto. Even if you're not a banker, even if you have no financial skills, there's lots of things that are required. You can go take a look at the Bankless Job Boards. I'm going to read a few out for you right now. The first is from Steakfish, a smart contract software engineer, a backend full-stack software engineer as well, blockchain marketer from Steakfish.

• 1:09:26David Hoffman?

  It's non-technical.

• 1:09:27Ryan Sean Adams?

  Steakfish, front-end software engineer, DevOps engineer. Steakfish trying to hire everybody right now. Alliance Dow wants a CTO, a software engineer, a senior software engineer and an executive assistant.

• 1:09:39David Hoffman?

  It's non-technical.

• 1:09:40Ryan Sean Adams?

  Otterspace wants a solidity engineer, Abstract Ventures, a front-end engineer, Boolean Labs, founder and CEO, Blockchain Capital, research engineer. I could go on. We got Uniswap up here.

• 1:09:50David Hoffman?

  Ooh, was that the alpha? Ooh, look at that alpha. Alpha, go, scroll back over, alright? Scroll back up. Senior mobile engineer, iOS, Uniswap Labs. Ooh, that is some alpha. That's some alpha.

• 1:10:01Ryan Sean Adams?

  Uniswap, what are you brewing up?

• 1:10:03David Hoffman?

  What are you up to?

• 1:10:04Ryan Sean Adams?

  Guys, of course, you can find all of this. David and I will remind you every single roll-up, but you can find out for yourself on bankless.pallet.com/jobs. Make sure you add your email address so you get these to you in your inbox every day. David, we got some hot stuff next, including questions from the nation. As usual, some hot takes. Make sure you like and subscribe if you are enjoying this roll-up. We will be right back, but before we do, we want to thank the sponsors that made this episode possible.

• 1:10:30David Hoffman?

  The Layer 2 era is upon us. Ethereum's Layer 2 ecosystem is growing every day, and we need Layer 2 bridges to be fast and efficient in order to live a Layer 2 life. Across is the fastest, cheapest and most secure cross-chain bridge. With Across, you don't have to worry about high fees or long wait times. Assets are bridged and available for use almost instantaneously. Across's bridges are powered by Uma's Optimistic Oracle to securely transfer tokens between Layer 2s and Ethereum. Across is critical ecosystem infrastructure, and Across V2 has just launched. Their new version focuses on higher capital efficiency, Layer 2 to Layer 2 transfers, and a brand-new chain with Polygon, all while prioritizing high security and low fees. You can be a part of Across's story by joining. Their Discord and using ACROSS for all of your Layer 2 transferring needs.

• 1:11:13David Hoffman?

  So go to ACROSS.TO to quickly and securely bridge your assets between Ethereum, Optimism, Polygon, Arbitrum, or Bova Networks. The Brave browser is the user-first browser for the Web3 internet with over 60 million monthly active users. And inside the Brave browser, you'll find the Brave Wallet, the secure, multi-trained crypto wallet built right into the browser. Web3 is freedom from big tech and Wall Street. More control and better privacy, but there's a weak point in Web3: your crypto wallet. And most crypto wallets are browser extensions, which can easily be spoofed. But the Brave Wallet is different. No extensions are required, which gives Brave Browser an extra level of security versus other wallets. Brave Wallet is your secure passport for the possibilities of Web3 and supports multiple chains, including Ethereum and Solana. You can even buy crypto directly inside the wallet with Ramp.

• 1:11:56David Hoffman?

  And of course, you can store, send, and swap your crypto assets, manage your NFTs, and connect to other wallets and DeFi apps. So whether you're new to crypto or you're a seasoned pro, it's time to ditch those risky extensions and it's time to switch to the Brave Wallet. Download Brave at brave.com/bankless and click the wallet icon to get started.

• 1:12:12Ryan Sean Adams?

  All right, guys, we are back. Time for the questions from the nation. Of course, we tweet this out every week. You can ask your question by replying to the tweet. Follow @banklesshq. Hi, David and Ryan. This is from claudie.eith. I would like to ask about a post-merge situation. If I understand it correctly, those who stake on the merge should take a part at transaction fees, of transaction fees. But which part of the fees will it be? Base fee or tips? David, you got the answer for this one?

• 1:12:37David Hoffman?

  Yeah, so basically, all transaction fees when you pay on Ethereum are split into two parts: the base fee and the tip. The base fee fluctuates, the percentage of these things fluctuates, but there seems to be an equilibrium about 90 to 10 base fee to tip. So 90% of that transaction fee goes to the base fee, 10% goes to the tip. The base fee is burnt. That is the EIP1559 burn. So the majority of Ether is burnt. That is like the stock buyback. That's the ultrasound in ultrasound money.

• 1:13:06Ryan Sean Adams?

  So everyone gets that if you hold ETH in a way?

• 1:13:08David Hoffman?

  If you hold ETH, you gain exposure to that burn. Only if you stake ETH do you get that extra 10% tips. And you can see in the name, it is a tip that is paid. Made two stakers to prioritize their transaction over other transactions. So like the the base fee is is where where transactions used to be before EIP 1559. It used to be only tips and we just called that the gas fee. Now the gas fees are both the the base fee burn and now the tip. And so the tip has been reduced down to 10% and that goes directly to validators. And the more you tip, the fat the higher in the queue that you get. And so all validators get that 10% tip.

• 1:13:45Ryan Sean Adams?

  And just a reminder for other staking revenue sources. So one is definitely that tip portion. That's a transaction fee portion. Another is of course block rewards that a staker receives. And a third source of revenue is maximum extractable value MEV, which you also receive as a staker and a validator. So three revenue sources there. David, here's another question from discovercrypto.eth. I know how valuable L2s are to the ETH ecosystem. Once complete data sharding happens on Ethereum way down the line and transactions are fast and cheap on L1, what use will we have for things like optimism and arbitrage? David, what you got?

• 1:14:24David Hoffman?

  OK, so the asker discovercrypto.eth, thank you for the question. The way that you're phrasing this is that and transactions are fast and cheap on the layer one. They're going to be with data sharding, they're going to be faster and cheaper, but they will not necessarily be super fast and super cheap. So like it doesn't really matter what the state of transactions are on the layer one. That layer twos will always be orders of magnitude faster and cheaper than whatever the layer one is. Think of like layer twos as like an exponent of scale. And so like if the the layer one is X, then the the layer twos are like to the power of two or to the power of three. And so even if we do like a 2X, a 3X of the layer one throughput,

• 1:15:08David Hoffman?

  like it doesn't matter because that 2X turns into 2X squared with layer twos. I don't know if we were following the math analogy, but I think it makes sense to me. It doesn't matter how fast we can get transactions and how cheap we can get transactions on the layer one. Layer twos will always be an exponentially increased order of magnitude faster and cheaper than whatever the layer one is. And also like layer, while the layer one will get faster and will have more total space, I don't think it'll necessarily get cheaper. And so it'll, we will always need layer twos to have, if we ever want zero fee transactions, it's going to be on layer twos and layer threes. And then layer one is can it be kind of expensive probably all the time? While it will have more total data, it'll probably be pretty expensive and it'll probably be prohibitively expensive for most people.

• 1:15:52Ryan Sean Adams?

  Yeah, so to double down on that and be super explicit, transaction fees on layer one are probably never going down.

• 1:15:59David Hoffman?

  Yeah.

• 1:15:59Ryan Sean Adams?

  That's prob, that's not part of Ethereum's scalability strategy. It is scaling on layer two. And this is why we've encouraged people to start investigating these layer twos, like Arbitrum, Optimism, Immutable and others, because that's going to be your crypto home. That's where you go bankless is on these layer twos. Migrate, leave from layer one. We put out a couple of episodes about this, the great layer two migration that you can check if you want to learn a bit more about this. But I don't think transaction fees are going to go down long-term on mainnet. So we should all be migrating to layer twos. David, let's, let's do some hot takes of the week. Here's a first one from Leighton. What's he saying here?

• 1:16:40David Hoffman?

  Leighton Cusack, the guy that created all the Pooleys that we know and love, he says, "The only lenders Celsius has paid back, AVE, MakerDAO, Compound." And he continues, "Smart contracts have a higher liquidation preference than any paper agreement. DeFi protects you from Celsius." What, what he's saying here is that the agreements, the, the parameters for your loans in DeFi are steeper. They're steeper if they're AVE, if they're MakerDAO, if they're Compound. And this is the cost of decentralization. You pay higher liquidation penalties, you have to post higher collateral bonds. And so what he's saying is this, the automation of DeFi and the smart contract nature of DeFi requires higher level of security, therefore higher level of retail protections, Ryan.

• 1:17:23Ryan Sean Adams?

  Yeah, what's super cool about this is remember you said markets go bad? It's all arbitrated in court systems, right? Well, not the case with DeFi, as we made the point earlier, right? So Celsius can't get out of these collateralized loans in Maker and Compound and AVE. They just can't because it's written in code and all of their collateral will be, will be completely dissolved. So they have to pay them back. And so it puts, if you're in DeFi, puts you at the top of the stack in terms of liquidation preferences. And that's a great place to be. I think, once again, I can't say enough, David, that one of the big outcomes of this whole crypto meltdown that we've seen recently is just like seeing how well DeFi performed.

• 1:18:06David Hoffman?

  Right.

• 1:18:06Ryan Sean Adams?

  Right? Especially relative to C-Fi. Like, it held up strong. And I think that is incredibly bullish. And people will realize that on the other side of this bear market that, hey, at the end of the day, it was the smart contracts that saved us. And the centralized lending providers did not. And look at how well they held up. For all of the risk and the smart contract risk and all of these other things, they were the ones that actually preserved retail capital, investor capital during the crypto meltdown. So that's a bullish thing. David, what's this take from Vitalik?

• 1:18:42David Hoffman?

  I had to screenshot this tweet because it was actually deleted by Rudy Giuliani. So Rudy, this is a, Vitalik is retweeting a Rudy Giuliani tweet. And Vitalik says, "Claim: The crypto space is weird and dumb, and we should go back to mainstream institutions which are ruled by adults." And then reality, and this is where he is retweeting the Rudy Giuliani tweet, Rudy Giuliani tweets, "Great products at reasonable prices. Use code RUDI for additional savings." And we are looking at a picture of new sandals. But we have some like, like, like, bad, terrible, crock, knockoff-looking sandals.

• 1:19:21David Hoffman?

  Regular price $79.98, actual price $49.98 at mypillow.com, promo code Rudy, with like a star-spangled banner, like fireworks, Fourth of July savings. Rudy Giuliani is tweeting out a discount code to some knockoff-looking sandals. This is insane.

• 1:19:42Ryan Sean Adams?

  Yes, David, these are the adults ruling our political system right now. And yeah, I guess I'm fine with all the crypto weirdness in this context. Okay, here's a tweet from Vance Spencer. "We don't need any new narratives. We are like 0.1% of the way through the current narratives. We do need the grifters and low effort projects to capitulate. Once a wave of those announcements hit, we are close." Anyway, how old are you, son? I like the way this ends. I don't know why it ends that way. But here's his point. "Once a wave of those announcements hit, we are close." David, we've just seen a wave of those announcements. That's why it's kind of feeling like we're close.

• 1:20:21Ryan Sean Adams?

  And then Vance's other point is like, hey, let's get the whole like self-sovereign money thing use case down. Like, there's still a lot to do on that. Let's get the whole bankless DeFi money system down. Let's get NFTs in the metaverse to be true property rights for things that matter and people will use in their everyday life. Like, we have enough narratives in crypto to blow this thing up to like $100 billion, $100 trillion in total addressable market size. And so like, we're just a fraction of the way there. I think it's a great point.

• 1:20:58David Hoffman?

  Remember how we were talking about at the beginning of the episode? How like I lost this like wire transfer and like this, the UX UI of USCC transfers on Ethereum is just like orders of magnitude? Like, that's the whole 1% of the way. When we stop doing wire transfers, then we can actually get somewhere. Like, the whole paradigm of instant and permissionless liquidity and Uniswap is still underappreciated. Like, the boomer DeFi, and this is why I think he ended it on like, "How old are you, son?" Boomer DeFi, like DeFi 1.0? Like, that stuff is still crazy to most of the world. Like, that stuff is still brand new paradigms. And so Vance Spencer is like, yo, guys, like, I know crypto moves really fast. We cycle from narrative to narrative to narrative. But remember, like, the first narratives are also still really good.

• 1:21:43Ryan Sean Adams?

  This might be why he's bullish on some of the DeFi blue chips, as he told us last time. David, some advice for what to do during a bear market from Nader. Do you want to read these out?

• 1:21:51David Hoffman?

  Yeah, he says, "Top three things to do during a bear market. One, meet people that stick around. Two..." Learn about the technology to gain conviction. Three, build something you're passionate about. Man, I could have written this tweet. This is a great tweet.

• 1:22:05Ryan Sean Adams?

  That's why we included it in the roll up. Absolutely. Great advice from Nader there. All right, David, what are you bullish about this week, man?

• 1:22:12David Hoffman?

  I'm pretty bullish on ECC, which is happening in two weeks. So a week from, a week from tomorrow, we're flying out to France. ECC, I can't believe it's been one year, as in it's only been one year. But ECC was like the first conference I went to when conference season, 2021 conference season really started. And so ECC-

• 1:22:32Ryan Sean Adams?

  It's also the last for a while, right?

• 1:22:33David Hoffman?

  Yeah. Yeah, it is the last for a while. And so it was the first post-COVID conference. It was the conference I got my first COVID at. And, but like now everyone, now COVID's largely over. Everyone's going back. It's like Stani is going to be there. There's going to be a rave. Maker DAO is going to throw their die affinity. So many, like so many good talks. A lot of the things that were talked about at ECC last year became kind of like the, the cultural meta that was discussed in the next year. NFTs were big. Also, non-financial use cases of the blockchain were a very big thing. Vitalik spun that off. You know what that turned into, Ryan? Soulbound NFTs. And so like, you know, like six months, eight months later, that turned into a big, big

• 1:23:15David Hoffman?

  like part of the, the meme, the cultural meme at the, at the time. So I'm just going to go here and see what, what are people focused on next? And so I remember-

• 1:23:25Ryan Sean Adams?

  It's a pretty smart group, too. It's like a high IQ conference, right?

• 1:23:28David Hoffman?

  Yeah, high IQ conference.

• 1:23:29Ryan Sean Adams?

  Should that intimidate people, though?

• 1:23:32David Hoffman?

  I mean, so tickets are already sold out, I'm pretty sure, but so many people are going anyways for all the peripheral events. And this is pretty common for ECC. So like, if you're around or just want to go to Paris, you can go to ECC, try and bum a ticket off of someone, but if you can't, just go to all the peripheral events, because that's what, that's what I'll be doing. There's like a ton of peripheral parties, but also like actual, like side conferences and side talks. So I'm going to be doing some sort of like content there, whether it's like in-person interviews or just writing about it, IDK. But yeah, I'm bullish on ECC. Great conference. Looking forward to going back.

• 1:24:06Ryan Sean Adams?

  That's awesome, man. It's their fifth. These are our conference OGs.

• 1:24:09David Hoffman?

  ECC, by the way, sounds for Ethereum Community Conference.

• 1:24:13Ryan Sean Adams?

  Oh, cool. Yeah. I feel like I knew that and then I forgot it. And thanks for dragging my memory. Awesome, man.

• 1:24:18David Hoffman?

  All right, Ryan, what are you bullish on?

• 1:24:20Ryan Sean Adams?

  Uh, I'm not gonna say mine because you made fun of it, okay, David? I'm gonna say a different one. Uh, mine originally was, uh, I'm bullish about the future, guys. And I had this thing where like optimism is, you know, um, so important in how builders build for optimism. I was inspired by Josh Rizenthal. When we were going over this, David laughed out loud when he heard I was bullish on the future. So I'm not gonna say that. Uh, but I will tell you, I am bullish on NFTs, David.

• 1:24:47David Hoffman?

  Oh, yeah?

• 1:24:47Ryan Sean Adams?

  Like, the stuff that's going on-

• 1:24:49David Hoffman?

  Tell me why you're bullish on NFTs, Ryan.

• 1:24:49Ryan Sean Adams?

  The future of NFTs, I'll say that. The stuff that's going on with like Reddit and Polygon is the, um, it's incredible how quickly the, um, narrative and sentiment has shifted on NFTs. Now everyone's like, like, I guess the popular narrative, not everyone, not, not people who are deep in crypto, like, NFTs were a scam, they're only JPEGs. We're like back to that again. And we just swung so far to the other end of, uh, end of the pendulum. You know, a lot of NFTs will fail. Many will go down 99% in value, but there will be a new generation of these NFT property rights, these ERC 721s, and we'll have a resurgence

• 1:25:31Ryan Sean Adams?

  the next, um, bull market. And look for these signs when you see like the social media companies of the world continuing to build, continuing to add into these things, you can see it, uh, start to happen, some of the foundation being laid. So I'm bullish on NFTs. I'm also bullish on the future.

• 1:25:46David Hoffman?

  Yeah, I bet you are. The, the problem with being bullish on NFTs is that like, it's hard to, you can be bullish on NFTs as a sector, but it's hard to like inject that into like, I'm bullish on this one particular NFT. You know what that makes me bullish on, Ryan?

• 1:26:00Ryan Sean Adams?

  What?

• 1:26:00David Hoffman?

  Blockspace. Because you always, people rotate through NFTs all the time, but there's only one blockspace. Well, there are layer two blockspaces, but it all collapses down to Ethereum blockspace.

• 1:26:11Ryan Sean Adams?

  Chris Dixon said it. Blockspace is the commodity of the crypto age, of the next couple of decades, for sure.

• 1:26:17David Hoffman?

  You know what's a good proxy for blockspace, Ryan?

• 1:26:19Ryan Sean Adams?

  I do. It's that ETH you're holding.

• 1:26:21David Hoffman?

  It's that ETH, yeah.

• 1:26:23Ryan Sean Adams?

  David, I like your plant, by the way. First roll up with the new plant in the new place.

• 1:26:26David Hoffman?

  They can't see it, but I'll, I'll bring it in here. Here we go.

• 1:26:28Ryan Sean Adams?

  Yeah, what is it? Does it have a name?

• 1:26:31David Hoffman?

  It's a Dresina. It's a Dresina Maganera. Here it is.

• 1:26:34Ryan Sean Adams?

  What's special about this plant?

• 1:26:37David Hoffman?

  It's easy to keep alive when I go travel away.

• 1:26:39Ryan Sean Adams?

  It looks great. It's got some purple hues. It's got some green. Really impressed. I'm looking forward to seeing your menagerie grow behind you. Slowly turns into a greenhouse.

• 1:26:50David Hoffman?

  This is not the plant corner. This is strictly the studio corner.

• 1:26:53Ryan Sean Adams?

  Oh, but we're gonna have plants.

• 1:26:54David Hoffman?

  Okay, so since we're, well, a few plants, but mainly studio. Since we're on the topics of things that we're bullish on, I think, I don't know if I've told you this. I told you I was going to do it. I don't know if I've told you I've done it, but I bought $10,000 worth of studio equipment yesterday, Ryan.

• 1:27:06Ryan Sean Adams?

  Oh, my God. Wow. So we're doing this, huh?

• 1:27:09David Hoffman?

  Oh, yeah, we're doing it.

• 1:27:10Ryan Sean Adams?

  Vengla Studio is happening. It's official. And look, guys, we're doing this during the bear market. That's how much we believe. That's how much we believe. David, you want to get to the meme of the week?

• 1:27:19David Hoffman?

  Meme of the week. Let's do it. Okay, this is a picture out of Kobe, and it's one of these ones that progresses, and it starts with Q1 2021. And this is Jerome Powell saying quantitative easing won't cause inflation. And then we go into Q2 2021, and okay, now we're, you know, some inflation, but it's transitory. Now we're at Q3 2021. Okay, high inflation, but we're peaking. Q4 2021. Okay, inflation might not be transitory, but job market wage growth very strong. And then Q1 2022, need to hike aggressively to curb inflation, but no worries, economy very strong and soft landing possible. Q2 2022, we are here, by the way, Q2 2022, negative growth in Q1, but no recession risk.

• 1:28:00David Hoffman?

  Q3 2022, so this is now predicting the future. Okay, recession coming, but you won't lose your home. Q4 2022, okay, you might lose your home, but you won't starve to death. Q1 2023, you may die, but you'll go to heaven.

• 1:28:16Ryan Sean Adams?

  I love this meme.

• 1:28:17David Hoffman?

  Which is super dark, and this is an explicit part of the agenda for the podcast that we're about to go record with Lynn Alden. Oh, God, in 10 minutes or in 1 hour and 10 minutes. Let me check our schedule.

• 1:28:28Ryan Sean Adams?

  No, 10 minutes, man. We gotta, we gotta be done.

• 1:28:30David Hoffman?

  Oh, fuck, 10 minutes. Okay, in 10 minutes, we are literally gonna go ask Lynn Alden about this question. That podcast is coming out this coming Monday or next Monday?

• 1:28:37Ryan Sean Adams?

  Yeah, and now we're actually, so we're not in Q2, David. You know, we transferred July is Q3. So we're at this phase where it's okay. Session coming, but you will not lose your home. And then the next phase is, okay, maybe you lose your own, but you won't starve to death. And then you actually die. That's the question we have for Lynn Alden. Are we all gonna die? Are we gonna be okay? Is macro gonna be fine?

• 1:28:56David Hoffman?

  Am I dumb for being bearish or bullish?

• 1:28:58Ryan Sean Adams?

  Well, like, does this guy have any idea what he's doing? Are the central banks driving us completely off a cliff? Anyway, stay tuned for the macro content for Bankless. As always, gotta end with, none of this has been financial advice.

• 1:29:12David Hoffman?

  You might die.

• 1:29:13Ryan Sean Adams?

  You might die. You could definitely lose what you put in. You get dysentery on the, on the journey. But we're right there with you. And of course, crypto is not for everyone, but we're glad you're with us on the Bankless journey. Thanks a lot.

• 1:29:26David Hoffman?

  If we all die, we all die together.