ROLLUP: Merge Alpha | Optimism Token?! | Ethereum Foundation Report | Coinbase NFT Beta | Beanstalk Exploit

3rd Week of April, 2022 ------ 📣 THE GRAPH | Graph Day in San Francisco | June 2-5 https://bankless.cc/GraphDay ------ 🚀 SUBSCRIBE TO NEWSLETTER: https://newsletter.banklesshq.com/ 🎙️ SUBSCRIBE TO PODCAST: http://podcast.banklesshq.com/ ------ BANKLESS SPONSOR TOOLS: ⚖️ ARBITRUM | SCALED ETHEREUM https://bankless.cc/Arbitrum ❎ ACROSS | BRIDGE TO LAYER 2 https://bankless.cc/Across 🏦 ALTO IRA | TAX-FREE CRYPTO https://bankless.cc/AltoIRA 👻 AAVE V3 | LEND & BORROW CRYPTO https://bankless.cc/aave ⚡️ LIDO | LIQUID ETH STAKING https://bankless.cc/lido 🔐 LEDGER | NANO S PLUS WALLET https://bankless.cc/Ledger ------ Topics Covered: 0:00 Intro 5:50 MARKETS 5:54 BTC Price 6:43 ETH Price 7:05 Ratios, BED, Gas https://www.indexcoop.com/bed 7:39 Total Crypto Market Cap https://www.coingecko.com/en/global_charts 8:13 Dollar Strong? DXY https://imgur.com/nTyNBTR 10:10 Crypto Correction Incoming? https://cryptohayes.medium.com/the-q-trap-f1a38312f00f 12:55 6 Signs Optimism Token is Coming https://twitter.com/optimismPBC/status/1516439426330599428 https://twitter.com/optimismPBC/status/1516767142720331777 15:45 Price Page for Optimism?! https://www.theblockcrypto.com/linked/142651/coinbase-shows-price-page-for-optimism-suggesting-a-token-could-be-on-the-way 18:35 UST: Crypto’s 3rd-Largest Stablecoin https://decrypt.co/98069/terra-stablecoin-ust-crypto-third-largest 19:19 Share of NFT Market https://imgur.com/e8paHhK https://www.sfermionresearch.com/research/a93zqom4t8df05icmjba1y43fpvoi3 23:15 RELEASES 24:00 SNEAK PEAK: Coinbase NFT Marketplace is Here (Beta) https://blog.coinbase.com/gm-coinbase-nft-is-now-in-beta- 25e6c052aa43 https://nft.coinbase.com/discover 26:30 Powered by 0x https://www.theblockcrypto.com/post/142684/coinbase-nft-marketplace-beta-launch https://www.coingecko.com/en/coins/0x 27:50 Ethereum Foundation Report https://twitter.com/AyaMiyagotchi/status/1515949698779164672 https://ethereum.foundation/report-2022-04.pdf 28:40 80% of Treasury Holdings https://thedefiant.io/ethereum-foundation-treasury/ 30:40 $JPG NFT Index from Index Coop https://twitter.com/indexcoop/status/1516780112443633667 31:40 Volt Protocol April 22, 2022 https://medium.com/volt-protocol/presenting-volt-f0ea2a38eb2e 34:15 Bankless Spring Calendar https://twitter.com/BanklessHQ/status/1516890191989936130 35:50 RAISES The Sandbox $400M - $4B Valuation https://www.theblockcrypto.com/linked/142466/the-sandbox-gears-up-to-raise-400-million-at-a-4-billion-valuation-report Framework Ventures $400M Blockchain Gaming Fund https://www.theblockcrypto.com/linked/142512/framework-ventures-unveils-400-million-fund-with-a-special-focus-on-blockchain-gaming Indian Crypto Exchange - CoinDCX $135M at $2.15B https://techcrunch.com/2022/04/18/indian-crypto-exchange-coindcx-tops-2-1-billion-valuation-in-new-135-million-funding/ EPNS $131M Series A https://twitter.com/epnsproject/status/1514605465530818567 Kevin O’Leary’s WonderFi Acquires Coinberry https://decrypt.co/98122/kevin-oleary-backed-defi-platform-wonderfi-to-acquire-coinberry-for-38m 37:35 JOBS https://pallet.xyz/list/bankless/jobs 39:45 NEWS 39:50 MetaMask 39:55 NFTs Getting Stolen Too https://www.theblockcrypto.com/post/142304/metamask-advises-users-to-disable-automatic-icloud-backups-of-its-wallet-data-to-prevent-hacks 40:00 Do This NOW! https://twitter.com/MetaMask/status/1515727239391809536 41:30 Beanstalk Exploit https://www.coingecko.com/en/coins/bean 44:50 North Korea hacked Ronin https://blockworks.co/fbi-says-north-korea-behind-625m-ronin-hack/ 47:00 ETH MakerDAO ETH L2 StarkNet Integration https://www.theblockcrypto.com/post/142641/makerdao-starknet-integration-ethereum-layer-2 47:22 NFTs 47:25 Punk 6529’s OM https://twitter.com/punk6529/status/1514718020849000461 50:15 Warner Music Group Partners with POAP https://www.prnewswire.com/news-releases/warner-music-group-partners-with-leading-web3-protocol-poap-inc-to-mint-shared-memories-as-nfts-301525635.html 52:05 NFT Influencer Shill List https://twitter.com/zachxbt/status/1516129830873583617 53:00 DeFi 53:05 Compound Ditch Yield Farmers Proposal? https://thedefiant.io/compound-incentive-overhaul/ 55:55 World 55:56 Crypto funding military defense… https://twitter.com/FedorovMykhailo/status/1515610384811626497 59:00 TAKES 59:30 Make Your Friends & Family Worry https://twitter.com/ljin18/status/1516884317200396288 1:01:30 Andre Cronje Culture https://www.theblockcrypto.com/post/142299/andre-cronje-crypto-culture-has-strangled-crypto-ethos 1:04:00 Welcome to Clown World https://twitter.com/Tree_of_Alpha/status/1515967463892168705 1:04:30 Mfers New Money Printer https://twitter.com/sartoshi_nft/status/1516680193842294787 https://twitter.com/TrustlessState/status/1517142456218750982 1:06:30 Spicy L222 https://twitter.com/TrustlessState/status/1516345954768666625 1:06:35 What David’s Excited About 1:14:30 What Ryan’s Excited About 1:22:20 MEME of the Week https://twitter.com/stusim/status/1514641617369640960 1:23:20 Closing & Disclaimers ----- Not financial or tax advice. See our investment disclosures here: 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.

• 0:00Ryan Sean Adams?

  All we know is this space is going up. Crypto, Bitcoin, ETH, they are going up and to the right over the long-term time horizon.

• 0:09Ryan Sean Adams?

  Bankless Nation, it is the third week of April. David is in Amsterdam, I'm in the US, and we are getting ready to present you with the weekly roll-up. David, how you doing, man? How's Amsterdam going?

• 0:22David Hoffman?

  Dude, Amsterdam is absolutely majestic. Something that has complete consensus with everyone here is that Amsterdam is a great city. It's so walkable, it's so pretty, the weather's beautiful. Sun is out, but it's cold and crisp. There's canals, I went on a boat ride yesterday.

• 0:39Ryan Sean Adams?

  What?

• 0:39David Hoffman?

  It was also 420 in Amsterdam yesterday, so some people got up to some shenanigans.

• 0:45Ryan Sean Adams?

  That's like the 420 capital of the world, see, right?

• 0:48David Hoffman?

  That's exactly right, yeah.

• 0:51Ryan Sean Adams?

  That's cool, man. So, but what were you there for? It was like a crypto conference, right? DevConnect?

• 0:55David Hoffman?

  Oh, yeah, maybe that's relevant. DevConnect, yeah. So, this is an Ethereum, the EFs, basically what they did, really genius model, is they hired, they rented out the convention center in the middle of the city, and it's now just a co-working space. And so, everyone who signed up can just co-work there. So, I've just been hanging out there. And that's all that they did. On theme, with a modular structure, all the EF did was rent out this center space for us to converge upon. And then, many, many, many other entities made other, like, short-term, like, day-long panels, or day-long talks, or day-long events. So, there's the Shelling Point from Kevin Owoke. I was at Obelfest from Colin Myers. There was also, what is it?

• 1:40David Hoffman?

  TrustX, where I had a, I was on a panel with some giga-brains. Danny Ryan, Preston Van Loon, Dan Crad. And so, it's just like, everyone is appending their own conference, their own day of talks.

• 1:52Ryan Sean Adams?

  So, it's kind of like an unconference, right? Where everyone sort of just, you know, creates their own event and brings their piece to the party. So, is this like a mini DevCon, then, would you say?

• 2:04David Hoffman?

  I'd say so, yeah, yeah, it's it's it's a something it's a something brand new. All of the core Ethereum researchers, like the client researchers, they all got into a room and powwowed. And so like actually made some progress. And that is actually the big theme, I would say, of this particular event where like people are busy. Like people are getting work done. And so like, it's not like the it's not like NFT NYC, or it's not like, like Eat Denver, which was more of like a festival. Like we're here, we're here to build, right? And you can actually see that in some of the nightlife where people are going out to parties like 10pm. But then the parties kind of shut down between midnight and 1pm because people got stuff to do the next day.

• 2:46Ryan Sean Adams?

  Builder culture badass, that's awesome. Well, we'll talk more about that because I want to hear if you've got any updates on like Ethereum research, like when merge, David? Can you be the when merge guy? But of course, we've got some-

• 2:57David Hoffman?

  I will tell you what people have been saying about the merge day.

• 3:00Ryan Sean Adams?

  Tell us, that's all we're asking.

• 3:01David Hoffman?

  That was, I actually met Justin Drake for the first time. And so I got a beer with Justin Drake and he was just like lovely to hang out with. And of course, we talked about the merge. So more on that at the end of the show.

• 3:13Ryan Sean Adams?

  Okay, merge alpha, we'll see what Drake thinks about the merge. Of course, we've got some other topics of the week because crypto can't stop, won't stop. Sneak peek into the Coinbase NFT platform launch. We have the beta, we have our hands on a copy. I've given it a trial run, I want to hear what you think about it too, David. We'll go through that also. North Korea apparently was the attacker of the Ronin sidechain. That massive $600 million plus exploit, that was actually North Korea. So the US government is saying. So what does that mean? We are now nation state attacked blockchains after a fashion? Also, Arthur Hayes, Bitmex CEO, founder, thinks we're headed for a bear. I think we had to talk about that in the market section, see if he's right, see what the bear case is for crypto right now.

• 3:56Ryan Sean Adams?

  Andre Cronje, also, he's a DeFi developer, of course. He had some spicy takes this week, David, about regulation in DeFi. It seems to be the anti-Andre move and he wants to incorporate some regulation in DeFi, so we're going to weigh in on that.

• 4:09David Hoffman?

  And there were also some spicy takes about his spicy takes. A lot of people- Called Cult and BS on Andre Cronje's take, article, very short article. So that was very hot in the Twitter sphere this week.

• 4:21Ryan Sean Adams?

  So we're going to talk about all of those things. One thing, talking about conferences, talking about Dev Connect and a builder conference, another builder conference that you absolutely should attend, must attend, is Graph Day. This is happening in San Francisco. It's going to be a four day event, June 2nd through the 5th. Day one is the talks, right? That's where you listen, you learn, you get educated. But the remaining three days of this four day conference, it's all, it's all pure hackathon, which is amazing for builders. So if you are in a builder, if you are a builder, you want to get into the Web 3 space. Like the graph protocol is basically indexing everything about the metaverse, everything about crypto. They are like a data layer for this whole universe, Web 3 universe that we have delved into.

• 5:05Ryan Sean Adams?

  So it's a fantastic place to meet other builders, to actually participate in the hackathon, earn bounties for yourself and get into the space. Maybe you're looking for a career in the space. This would be the event to attend. Look at these speakers, David.

• 5:20David Hoffman?

  It's stacked, it's stacked, yeah. Cami Russo is going to be there, Reese Linmark, one of my personal heroes is there, Ava Baylin. Yeah, it's, check out the lineup and the talks, I'm sure are going to be fantastic. And of course, if you are a hacker, they have money for you. That's what a hackathon does. And so if you want to compete for some money and you are a hacker who wants to hack on things, sign up to join the hackathon.

• 5:42Ryan Sean Adams?

  Go get your tickets now. If you use the, the code in the bankless show notes, there is a $50 discount for you as well. All right, speaking of discounts, are we, are we discounted on Bitcoin and ETH this week? Let's start with the Bitcoin charts as we get to markets. What, what's Bitcoin looking like?

• 5:57David Hoffman?

  We are certainly not discounted this week, Ryan. We started the week at 39,700, just below that $40,000 number, which we do not want to be below at. And we are currently above that number at $42,640, up about 7% on the week.

• 6:13Ryan Sean Adams?

  Amazing, look, man. Last week I said I was bullish. I didn't exactly know why, other than like a gut feeling.

• 6:18David Hoffman?

  Are you claiming victory, Ryan?

• 6:20Ryan Sean Adams?

  I'm not, look, man. Yeah, I'm claiming victory. I was right from last week to this week. I will never claim when I'm wrong, but when I'm right, I'm happy to claim that David. I'm short-term price action, but seriously, guys, don't listen to me on anything short-term price related. All we know is this, this space is going up. Crypto, Bitcoin, ETH, they are going up into the right over the long-term time horizon. Just my caveat.

• 6:41David Hoffman?

  Speaking of up into the right, Ryan, Ether started last week at $3,000. It hit a low of $2,900. We do not like that $2,900 number. We want to be above that 3,000 number, of which we are currently clocking in at $3,150. Overall, up 4.5% on the week. So Bitcoin takes a week for this week. This Bitcoin's win this week.

• 7:01Ryan Sean Adams?

  Look, Bitcoin outperformed ETH this week. Hasn't done that for a while, and that reflects in the ETH-Bitcoin ratio. That's gotta be down this week.

• 7:08David Hoffman?

  Yeah, down about a percent and a half, down to 0.074. Down a little bit, down a little bit.

• 7:14Ryan Sean Adams?

  Are people getting Bitcoin bullish off of Bitcoin Miami, do you think? Or why do you think, why do you think this happened? We just can't read too much into this data?

• 7:23David Hoffman?

  Yeah, one part noise. Let's not read into it too much, but also one part if we are bullish, like it is traditional to let Bitcoin go first. As is tradition.

• 7:32Ryan Sean Adams?

  After you, after you Bitcoin. Let's take a look at the total crypto market cap and can compare Bitcoin and ETH to that. So, looks like we are up on the week for total crypto market cap, but not by a ton. What's that?

• 7:46David Hoffman?

  Up 5%, brother. 1.96 trillion last week to 2.07 trillion this week.

• 7:53Ryan Sean Adams?

  But Bitcoin outperformed total crypto market.

• 7:55David Hoffman?

  Bitcoin outperformed, yeah.

• 7:56Ryan Sean Adams?

  Which it hasn't done that in a while.

• 7:58David Hoffman?

  Old man Bitcoin, yeah. Outperformed the market by like 3%, and Ether underperformed the market by 0.5%.

• 8:05Ryan Sean Adams?

  We're proud of you Bitcoin. Well done. We'll see. We'll track it next week. I make no more predictions. I'm just, you know, but one thing to watch, I think, in the backdrop of this crab market, whether are we in? Bull territory, are we in bear territory? We're kind of somewhere in between is the DXY, which is the dollar index. And the dollar's been breaking out, man. So this is kind of weird. It's like when, when we say breaking out, it's appreciating relative to other fiat coins.

• 8:36David Hoffman?

  Dollar strength.

• 8:37Ryan Sean Adams?

  Yes, dollar strength relative to other fiat, not, not relative to crypto, of course. And it's up, like, look at the chart, man. It's up to like above any level since, since COVID. And people are like wondering maybe, why does the dollar go up? When we are being faced with eight and a half percent inflation? Just like the dollar went up in value in the early days of COVID, if you recall. And I think the reason for this largely is the dollar is still a flight to safety asset. And people are uncertain. They don't know what the Fed is going to do. They don't know how that's going to affect other asset classes. And so what do they do temporarily?

• 9:18Ryan Sean Adams?

  They retreat into the dollar for a while, wait for other assets to fall and then redeploy their dollars into those assets. It's kind of like what, you know, traders do. Sometimes you and I might do this for rebalancing. We might rebalance back into stable coins out of crypto for a period of time. Wait things out and then buy lower. What are your thoughts on this?

• 9:38David Hoffman?

  Well, okay, so the general correlation is that as the DXY, as the Dixie, they call it, goes up, crypto is correlated, inversely correlated. So crypto goes down. Crypto didn't go down too much. I mean, it's gone down since like January or so as the DXY has gone up.

• 9:51Ryan Sean Adams?

  Not like with COVID. The other time the dollar was on a tear, like crypto died.

• 9:55David Hoffman?

  Yes, yeah. What I'm seeing, Ryan, and maybe I'm just spinning it to talk my own books, but when I see the dollar going up, I just see more for it to fall, so.

• 10:05Ryan Sean Adams?

  David, not bullish on the dollar long run. You know, but this is kind of the, the big question. Arthur Hayes, the CEO of Bitmex, who is a, you know, big crypto trader, obviously monitors these things from a macro perspective. He made the case that a crypto correction is incoming. This is a.

• 10:21David Hoffman?

  He said crash, Ryan. He said crash in his article.

• 10:24Ryan Sean Adams?

  Did he? I'm gonna say, I'm gonna go search the word crash.

• 10:27David Hoffman?

  Yeah, no, it was, it's a crash.

• 10:28Ryan Sean Adams?

  Well, no, he said that.

• 10:29David Hoffman?

  Nope.

• 10:30Ryan Sean Adams?

  Yeah, crypto crash helmet.

• 10:31David Hoffman?

  Helmet, yeah.

• 10:31Ryan Sean Adams?

  Put on your crypto crash helmet. Okay. Colorful language. Love Arthur, you know, in his predictions. And basically, his rationale was crypto is correlated with tech stocks. He gives all these examples of how crypto is correlated with tech stocks. Lots of charts. Tech stocks are going down, right? It's like, do you see Netflix this week, by the way?

• 10:54David Hoffman?

  Oof, big oof.

• 10:55Ryan Sean Adams?

  Lost $50 billion, right? Netflix subscriptions are down. So tech stocks going down as a result of the Fed policy tightening. And so what does that mean? Yeah, Arthur is just putting one and one together. And he's just like, well, that equals crypto is also going down. Crypto is also classified as a risk on asset, just like tech stocks. So if tech stocks are going down, of course crypto has to follow it. And put on your crypto crash helmet is what he's saying here. That's the bear case.

• 11:22David Hoffman?

  Yeah, it also got way more nuanced than that, though. He also talks about the central bank of Japan and the Japanese equities market as like a canary in the coal mine as well. Some really big brain finance economy stuff that I'm not capable of reiterating. So if you want to learn more, just read the article that's in the show notes. But the summary, TLDR, is that he believes that Bitcoin and Ether are crashing to the low, low prices of $30,000 Bitcoin and $2,500 Ether, which Ryan, like, we, I'm kind of confused as to why he's calling that a crash.

• 11:55Ryan Sean Adams?

  Not worried about that. That's not a crash helmet, man.

• 11:56David Hoffman?

  We saw that, we saw that this year, right? Yeah. And like, yeah, like, that's fine. Like, I'll see those numbers again.

• 12:02Ryan Sean Adams?

  Don't need a helmet for that. That's just like, okay.

• 12:03David Hoffman?

  You need a bib for that.

• 12:05Ryan Sean Adams?

  Yeah. Did you say a bib?

• 12:07David Hoffman?

  Bid.

• 12:08Ryan Sean Adams?

  Oh, okay.

• 12:10Ryan Sean Adams?

  Like a bib, like you're drilling or something. I don't know. But, okay.

• 12:12David Hoffman?

  I could say that too, yeah.

• 12:15Ryan Sean Adams?

  Yeah, so, I don't know. You know, the interesting, I guess, opposite case is coming out on Monday's podcast with Dan Moorhead. So Dan Moorhead does not think that crypto will remain correlated with tech stocks. And if you want to hear why, listen to him. He is the CIO, co-founder of Pantera Capital. And a lot of good macro takes here. So you could see the bear case put out by Arthur and kind of the bull case. But even Arthur is not very bearish when you boil it down to pricing.

• 12:44David Hoffman?

  Yeah, that's just a bad week. Perhaps a really bad week, but that's not, that's not like blood in the streets level.

• 12:51Ryan Sean Adams?

  No way. That's not crash helmet level, for sure. Just put on your bibs, guys. That's all you need. Optimism.

• 12:57David Hoffman?

  This is fun. Yeah. Okay. So this is the talk of the town right now at DevConnect. Everyone is talking about optimism. And we've got six indications that optimism is interested in a token. And so this is the first one.

• 13:12Ryan Sean Adams?

  Interested in or imminently deploying a token?

• 13:14David Hoffman?

  Yeah, perhaps more of the latter, Ryan.

• 13:17Ryan Sean Adams?

  Okay.

• 13:17David Hoffman?

  And so there are some breadcrumbs being trailed, perhaps. And everyone at DevConnect is like, oh, yeah, those are big breadcrumbs. So here's the first one. On April 19th, a few days ago, optimism tweets out, optimism's story thus far by the numbers, saved $1.1 billion in gas fees for its users, onboarded 300,000 unique Ethereum addresses, secured $900 million in value, and facilitated $17.4 billion of transaction volume, and also generated $24.5 million in revenue.

• 13:51Ryan Sean Adams?

  That revenue is impressive.

• 13:53David Hoffman?

  That's a great revenue number. Yeah. $24.5 million from the sequencing of the transactions. These are how rollups make their money. And then they finish this off with, "A new chapter is near. Let's take a minute to reflect on the path thus far." A new chapter is near. So Ryan, they're talking a lot about financial.

• 14:11Ryan Sean Adams?

  New chapters?

• 14:12David Hoffman?

  Like money numbers. And then they say, "A new chapter is near." What could a new chapter be?

• 14:17Ryan Sean Adams?

  That's clue number one. But you said you had six.

• 14:20David Hoffman?

  Six, yes.

• 14:21Ryan Sean Adams?

  What's this? What am I looking at? These, uh?

• 14:24David Hoffman?

  This is, uh, this is the red dot. There's, this is a red dot emoji. There's like some dot emojis with the underscore with a red dot emoji. And this is generally a meme that many communities have. And this is now what optimism tweeted out as like, okay, here's, here's our community. But all the other communities, Ryan, have tokens that do this. Optimism would be the first community to do this that doesn't have a token.

• 14:47Ryan Sean Adams?

  Hmm, that's kind of playful. Okay, clue number two.

• 14:50David Hoffman?

  Very playful, very community generation.

• 14:52Ryan Sean Adams?

  Wait, this, what is this?

• 14:53David Hoffman?

  I have no clue what this is, but like, everyone is like, the optimism team, their sense of humor is very indie and, and kind of surreal, I would say. Absurdist humor, I would say. And so for the listeners, this is a cat with its paw on a bunch of watermelon, but the watermelon are all red.

• 15:11Ryan Sean Adams?

  Plush toys?

• 15:12David Hoffman?

  And they're titled OPs. Are they plush toys? Yeah, maybe they're plush toys. They look like watermelon. But like, they're all circles, right? They're all like token-ish. And so with OP written on them. And I guess it's just kind of absurdist humor, but like, everyone's like, I don't know how or why this makes me think that there's a token, but it does.

• 15:30Ryan Sean Adams?

  Clue number three. All right, what's number four?

• 15:33David Hoffman?

  Uh, okay, this one's a little bit more explicit, Ryan.

• 15:35Ryan Sean Adams?

  It's kind of blatant.

• 15:36David Hoffman?

  Yeah.

• 15:37Ryan Sean Adams?

  This always gets in the territory of a leak.

• 15:39David Hoffman?

  Yeah, Coinbase shows price page for optimism, suggesting a token could be on the way. This might have been an accident by Coinbase, but they added a token page under the title of optimism. And so this is all happening all at the same time.

• 15:55Ryan Sean Adams?

  Thank you, internet sleuths for uncovering that. So is that number four?

• 15:59David Hoffman?

  That's number four. That's number four. And number five is that I'm at DevConnect and everyone is talking about it. And so that's the other thing. That's the other thing.

• 16:08Ryan Sean Adams?

  You're talking explicitly about a token.

• 16:10David Hoffman?

  Everyone's talking about, oh yeah, have you seen the hints that optimism is leaving on the table? I was listening to a panel where all the layer twos were talking about layer two stuff, hosted by Anthony Cizano. Saw my best friend, saw he was great, gave him a big hug. And then he hosted a panel and I watched that. And of course, his final token, his final question is, when token, as a meme, like, when token, ha, ha, you don't have to answer that. But then Ben Jones from, from optimism immediately grabs the mic and he goes, all information about this will, is viewable on our public website. There's no information on there, but like, yeah, the exuberance of grabbing the mic to say that, I thought was interesting. So that's number five, Ryan. And number six, are we ready for number six?

• 16:50Ryan Sean Adams?

  I, you know, I'm ready, but I just want to interject one thing. So like optimism releasing a token to me. Kind of kicks off Layer 2 summer, Layer 2 22 that we've been saying, right? The big thing, they've got the traction, they've got the value, they're generating the revenue. The next thing Layer 2s need is a token to accelerate all of this. So with that, what is the sixth clue?

• 17:13David Hoffman?

  The sixth clue, Ryan, is just we're just gonna straight up ask them on the State of the Nation on Tuesday.

• 17:18Ryan Sean Adams?

  They're coming on Tuesday.

• 17:19David Hoffman?

  Because that is when they are scheduled for. So Optimism's coming on the State of the Nation on Tuesday, and we are just going to ask them what their plans are with the token.

• 17:28Ryan Sean Adams?

  Well, hopefully you were a user of Optimism in the past. You probably saw them in our airdrop guide that we published on Bankless back in October. And, you know, we'll see, we'll see what happens. We'll see if this is imminent. It'd be very interesting if they were one of the first major Layer 2s besides like Polygon and that sort of thing to release a token. I think that's a great news for retail who previously hasn't had exposure to many Layer 2 options, investing options.

• 17:56David Hoffman?

  And there is a spicy take that in addition to, we'll talk about this later in the take section. But in addition to L222 coming, L222, Ryan, is going to be spicy. You know how spicy the alt Layer 1 wars were?

• 18:09Ryan Sean Adams?

  Yeah.

• 18:10David Hoffman?

  Layer 2 wars are gonna be the same thing, brother.

• 18:12Ryan Sean Adams?

  You're talking about like Layer 2s against Layer 2s?

• 18:15David Hoffman?

  Yep.

• 18:15Ryan Sean Adams?

  Why do the kids have to fight, David?

• 18:17David Hoffman?

  Kids are gonna have to fight, Ryan.

• 18:20Ryan Sean Adams?

  Come on, I don't know, like, just we're all on Team Ethereum, are we not?

• 18:24David Hoffman?

  Yeah, this is true. We're all on Team Ethereum, but you know, you gotta compete for the users. There's only so many users and so much TVL to go around.

• 18:32Ryan Sean Adams?

  I want to talk to you more about that later, but let's keep moving for now. So in other news, UST, that's the Terra stablecoin, just became crypto's third largest. So they'd just overtaken Binance USD. So it's probably just Tether and USDC leading, and then, and then UST now. Go stablecoin enters number third. What do you think about this?

• 18:54David Hoffman?

  Yeah, I mean, you gotta, gotta do the tip of the hat to the growth strategy of Terra. They scalable blockchain, scalable stablecoin. When you add those two scalable things together, like you get a bunch of scale. And so tip of the hat to UST becoming stablecoin number three.

• 19:12Ryan Sean Adams?

  Don't screw it up, guys, please.

• 19:13David Hoffman?

  Don't screw it up.

• 19:17Ryan Sean Adams?

  Share of the NFT market. This is fantastic from Andrew Steinwald, who's a NFT investor, saw this a long time coming. In fact, predicted NFT season long before, on a Bankless podcast, long before it came. Anyway, put together a fantastic report through his crypto fund, his NFT fund on total sales volume of NFTs. And it's divided into four categories: art, collectibles, gaming, and the metaverse as a percentage of dollars. And what's interesting about this chart, David, is you could see kind of the squilly lines, how the different categories ebb and flow. So we had a massive sort of art season at first, and these would be probably one of ones in, you know, 2020, 2022. And that has kind of tamed down as a percentage of market. And what's really jumped in-

• 20:02David Hoffman?

  That's gotta be art block season, right? Like, that's-

• 20:04Ryan Sean Adams?

  Yeah.

• 20:05David Hoffman?

  That's gotta be art block season. Yeah.

• 20:06Ryan Sean Adams?

  Now we got collectible as a big category and metaverse. Anyway, it's interesting to track these different categories of NFTs over time, because even within the NFT sector, some categories of NFTs can be bullish and others can be kind of bearish. And new ones are emerging all of the time. Some other broad metrics, I think, are pretty useful for you guys if you want a chart of what the NFT market share looks like, but in aggregate-

• 20:30David Hoffman?

  Click on the second graph.

• 20:32David Hoffman?

  Yeah, click on that one.

• 20:34Ryan Sean Adams?

  I'll just blow this up here.

• 20:35David Hoffman?

  Oh, okay. Doesn't do it.

• 20:37Ryan Sean Adams?

  Actually, I can't. There you go.

• 20:38David Hoffman?

  Look at that, man. So from, it started, really, everything NFT related started kicking off, it looks like, in June of 2021. And that, like, total sales volume, the volume of NFT sales, has just had a very strong floor ever since then. Like, huge spike in, like, August of 2021. But ever since then, like, NFT volume, it looks like it's here to stay forever.

• 20:58Ryan Sean Adams?

  Here it is. We're at almost 10 billion in total NFT sales volume from the beginning of this year. That's just the beginning of this year. So-

• 21:06David Hoffman?

  There's hope. There's hope for your underwater NFT, guys. Like, there's still volume out there.

• 21:10Ryan Sean Adams?

  Thank you. You tell me turtles are still gonna be a thing, David?

• 21:13David Hoffman?

  Turtles might still be a thing.

• 21:15Ryan Sean Adams?

  You know, David, we're going to talk about some more things that could be bullish for the NFT sector, in particular Coinbase. They just released their NFT platform. But before we do, we want to thank the sponsors that made this episode possible.

• 21:26David Hoffman?

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• 22:08David Hoffman?

  want to stake your ETH, Terra, Sol, or Matic and get liquidity on your stake, go to lido.fi to get started. That's L-I-D-O dot F-I to get started. If you're trying to grow and preserve your crypto wealth, optimizing your taxes is just as lucrative as trying to find the next hidden gem. Alto IRA can help you invest in crypto in tax-advantaged ways to help you preserve your hard-earned money. Alto Crypto IRA lets you invest in more than 150 coins and tokens with all the same tax advantages of an IRA. They make it easy to fund your alternative IRA or crypto IRA via your 401k or by contributing directly from your bank account. There is no setup or account fees, and it's all you need to do to invest in crypto tax-free. Let me repeat that again.

• 22:49David Hoffman?

  You can invest in crypto tax-free. Diversify like the pros and trade without tax headaches. Open an Alto Crypto IRA to invest in crypto tax-free. Just go to altoira.com/banklist. That's A-L-T-O-I-R-A dot com slash banklist and start investing in crypto today.

• 23:09David Hoffman?

  Aave is the leading decentralized liquidity protocol. And now Aave V3 is here. Aave V3 has powerful new features to enable you to get the most out of DeFi, including isolation mode, which allows for many more markets to be launched with more exotic collateral types. And also efficiency mode, which allows for higher loan-to-value ratios. And of course, portals, allowing users to port their Aave position across all of the networks that Aave operates on, like Polygon, Phantom, Avalanche, Arbitrum, Optimism, and Harmony. The beautiful thing about Aave is that it's completely open source, decentralized, and governed by its community, enabling a truly bankless future for us all. To get your first crypto collateralized loan, get started at Aave.com. That's A-A-V-E dot com.

• 23:50David Hoffman?

  And also check out the Aave Protocol Governance forums to see what more than 100,000 DAO members are all robbing about at governance.aave.com.

• 23:59Ryan Sean Adams?

  Hey guys, we are back with the releases of the week. Have to start with the hottest release of the week, which is the Coinbase NFT platform just rolled out into beta. Alright, so only for a subset of users, this is the Coinbase blog. GM Coinbase NFT is now in beta. David, I know you've been super busy this week. Have you had a chance to take a look at this?

• 24:20David Hoffman?

  Absolutely not.

• 24:22Ryan Sean Adams?

  Do you have an invite though?

• 24:23David Hoffman?

  I do have an invite, yeah. Coinbase, the Coinbase NFT platform invited me, but I was like, I don't have time for this.

• 24:28Ryan Sean Adams?

  Yeah, I saw they DM'd me from the Coinbase and they said, here's an invite code. And I was like, what, is this a scam? And it looks like it's legit from Coinbase. And turns out, I just clicked. Yeah. I have an invite to the beta platform. This is kind of what it looks like. So if you guys are viewing this on YouTube, you can sort of see. And what was interesting about this, and this is from our conversation with Brian Armstrong, is how social network-y it actually is, right? So look at this, this looks like a timeline you might find on a social network. See this timeline? Accounts to follow?

• 25:02David Hoffman?

  Which makes sense because the NFT ecosystem moves forward in time very, very quickly, right? Like the fads move very quickly. So it makes sense for a timeline structure to be that way.

• 25:13Ryan Sean Adams?

  Well, it has an account, like you can go follow Brian Armstrong.

• 25:15David Hoffman?

  Brian Armstrong, the new Tom of the Coinbase NFT platform.

• 25:18Ryan Sean Adams?

  Who's he following? He's not following me yet. Brian Armstrong, please follow. But he's got 1,000 followers, right? And you can see what's in his wallet. I could actually like see everything in my wallet. I'm not logged in at the moment. And then, of course, there's the OpenSea Shop capability, right? So you can actually start to buy some of these things. I don't know, man. Look, Mark Zuckerberg talking about the metaverse, right? Last week, we talked about his plan was to do a 50% commission on any NFT sale. Do you think he sees this and is like, shit in his pants right now? Do you think he's concerned about what Coinbase is doing?

• 25:53David Hoffman?

  Tax is real, then he has to like, it's completely unjustifiable. Anyways, yes, yes, yes, is your answer to that.

• 26:01Ryan Sean Adams?

  Yeah, it's just, look, Coinbase is becoming more of a social media type brand with this play. And well, I like it. Personally, I like it. I think there's a lot of potential here. It's fairly simple right now, but I'm excited to see it expand. So this isn't beta now. It'll go generally available, I'm sure, in the kind of the weeks to come. Of course, Coinbase is attending the Commission Permissionless Conference and their VPs over this are going to talk more about it. So if you're attending that, you can, you can get the scoop. But also it did something to 0X token price, David. What's that about?

• 26:31David Hoffman?

  Yeah, so 0X, the 0X network is a relaying network for messages about trades. And so they said they, Coinbase NFT platform announced that they are using the 0X network to facilitate trades. And as a result, the 0X token is up 30%. So congratulations to the 0X network, the 0X Dow and 0X token holders.

• 26:52Ryan Sean Adams?

  That's cool.

• 26:53David Hoffman?

  They claim the very strong gas efficiency and also cross-chain messaging for cross-chain chain sales, which I think is, I don't know how that would work because you can't like buy an Ethereum NFT on Solana, but maybe you can pay for an Ethereum NFT and get your Ethereum NFT using Solana tokens, something like that.

• 27:11Ryan Sean Adams?

  Yeah, this is just kind of going multi-chain, like being able to view it. Yeah, but I'm not sure how the trading works, whether they're bridging from chain to chain, if that's what you're talking about. But right now, the Coinbase marketplace, NFT marketplace is just Ethereum only. So that's where they're starting, but I'd imagine they'd expand to other chains as well. So pretty cool launch. We'll see, we'll see how this goes. Hopefully this mainstreams more people into the NFT world, right? There's like, what, 40, 40 million or so, maybe 50 million Coinbase users?

• 27:40David Hoffman?

  TBD signups.

• 27:40Ryan Sean Adams?

  Yeah, exactly. So, and they had a lot of interest for this, too. Another thing that happened this week, I guess, in the releases section is the Ethereum Foundation. Finally released their financial transparency report. What's the significance of this, David?

• 27:54David Hoffman?

  Yeah, this has been long sought after by from the general Ethereum community to EF. Tell us what your bags are. The EF is a nonprofit that got spun up at the very genesis of Ethereum. It had part of that genesis allocation of Ether from the very beginning. And they've been slowly selling that Ether over time to fund stuff, developer salaries, things like DevConnect and DevCon, for example. But there hasn't really been too much transparency into the actual financials of the EF. And largely, the first like two years, three plus years of the EF was very, very chaotic. And so like getting all the ducks in a row.

• 28:31Ryan Sean Adams?

  It almost went underwater? Like they almost ran out of money?

• 28:33David Hoffman?

  Yeah, yeah, right. But like, things are really shaping up around the EF. And then they finally released a report that describes what is actually in the EF treasury. And it's a lot of money, Ryan. I think it's over a billion dollars. And 80, yeah, 1.61 billion dollars in Ether. Excuse me, 80% of that is in Ether, which is, if you are curious, that is 0.3% of the total circulating supply of ETH. And also, they hold 11 million dollars in other cryptocurrencies, probably Bitcoin, because they took the Ether, like genesis sale, the pre-sale in Bitcoin. So they've probably been holding some of that Bitcoin for a really long time. And then probably the rest is in dollars as well.

• 29:14Ryan Sean Adams?

  Yeah, I think it's pretty close, right? So you said it's a lot, 1.6 billion dollars is a lot of money, 80% in Ether. But think about it from the perspective of total supply. It's tiny, it's so tiny.

• 29:26David Hoffman?

  It's so small.

• 29:27Ryan Sean Adams?

  0.3% of all Ether supply. Compare that to the other centralized bodies that are trading clients on some of the other alternative layer ones that like own 10, 15, 20.

• 29:40David Hoffman?

  10, 15, 20%. Sometimes way more, yeah.

• 29:42Ryan Sean Adams?

  Sometimes way more, massive amounts. So this is actually a modest, relatively modest amount. Good, of course, to see that they're holding it in ETH. I imagine they'll stake. Like, you could basically create kind of a perpetual funding for something like the EF. If you just take a large portion, say a billion dollars of your ETH, you stake, you generate a 4% or 5% return, and then you kind of fund the protocol for what it needs. I wonder if that's what the plan is.

• 30:06David Hoffman?

  Long term, yeah, instead of having block rewards funding, which is extremely contentious, but also very, very sustainable, like proof of stake yields from a billion dollars, that can fund a lot of salaries for a large amount of time.

• 30:18Ryan Sean Adams?

  Yeah, and that's a billion dollars at today's ETH price, right? When ETH hits 10K, when ETH hits 20K, when ETH hits 30K, as it's going to do.

• 30:25David Hoffman?

  When ETH fulfills its manifest destiny.

• 30:29Ryan Sean Adams?

  That'll be a lot more, so that's good. And look, they're spending about $48 million per year right now, so they do have a fairly high burn. There's a breakdown of that, too. Good to see some additional transparency here. It's bullish. David, another release this week, we're still on the releases. An NFT product from Index Co-op. It's called JPG. What is this?

• 30:50David Hoffman?

  Yeah, it's designed to provide liquid access to the top NFT collections through a single index token. And so in order to be included in this new JPG index, a token must be a claim on or be collateralized by or provide currency for NFTs. Basically, it's not an index with NFTs inside of them. It's an index with ERC 20 tokens that are related to NFTs. So there's fractionalized CryptoPunks, for example. There's the Jenny Dow. There's the SOX token for the Unisox. There's also the Doge currency out of the Doge ecosystem from Pleaser Dow and a few others as well. Basically, it's a, if you are a token that has financialized NFTs in some way, this is an index for that.

• 31:36Ryan Sean Adams?

  Cool. I'm excited to see that grow with some other financialized ERC 20 assets as well. Also, Volt rolled out this week. This is like a CPI-adjusted stablecoin designed by like the tribe ecosystem, the creators of Faye. To me, when I read this, David, it seems sort of similar to what we were talking about with Sam, which is Fraxis CPI-adjusted stablecoin, which is basically like inflation is 8.5% per year. You can hold your money in stablecoin dollars, but why not create something new and create some sort of stablecoin that doesn't degrade at the rate of inflation? So it keeps up with CPIs. You could hold it in this asset and not get that 8.5% inflation rate.

• 32:19Ryan Sean Adams?

  They do that with an on-chain oracle that measures CPI. What do you think about this?

• 32:25David Hoffman?

  Yeah, I'm actually kind of skeptical about these whole CPI adjusted stablecoins. I guess they're good for holding, but when you break the peg of the dollar, you lose the dollar standard, right? And one of the reasons why stablecoins have so much liquidity is because they're all interchangeable with each other. DAI, Tether, USD, USDC, and there's a lot of liquidity there.

• 32:46Ryan Sean Adams?

  You use like the unit of account, right?

• 32:48David Hoffman?

  Right, breaking the unit of account loses a lot of network effects. And so like, can this thing be super liquid, like TBD? I could totally understand, like, if you are interested in just holding your savings in dollars, then this would be a good thing to hold it in. But then are you going to be able to yield farm with this thing as much as you can with dollars in DeFi? Like, kind of unsure about that one. And so I'm a little bit skeptical as to the adoption of this thing.

• 33:14Ryan Sean Adams?

  Yeah, it's like a different standard. One thing I'll say is super cool that crypto can produce something like this. Because this is not available in like the quote unquote TradFi real world. But yeah, I kind of agree with you. Like, my idea about like, you know, storing wealth is I'll store some in dollars, right? But then I want to store everything else in like ETH. I don't want this mid-in-between thing that is just protecting me from CPI inflation. I'd rather just have some dollars over here and then ETH over here that's providing the protection. And kind of the the middle part of the barbell, I just don't really care too much about. But we'll see, that's just me.

• 33:51David Hoffman?

  I mean, inflation was 8.5% reported, like 10% plus actual. Again, Dan Moorhead podcast, gonna be a great one. And so like, I guess if you can't yield farm more than that, then it makes sense. But like, you can yield farm, you can get your yield farm returns pretty high.

• 34:07Ryan Sean Adams?

  Yeah.

• 34:07David Hoffman?

  So it's gonna be a tug of war here.

• 34:09Ryan Sean Adams?

  Yeah, it's cool. By the way, look, you mentioned the Dan Moorhead podcast, that's coming up. We just released the spring lineup for the Bankless podcast, let me tell you.

• 34:17David Hoffman?

  Is this a Bankless release?

• 34:19Ryan Sean Adams?

  This is a Bankless release, we're fitting this in the releases. So read out what's coming, what's coming down the pipe for Bankless.

• 34:26David Hoffman?

  Dan Moorhead coming on Monday, but followed by Steve Aoki. Steve Aoki, the entrepreneur who's into NFTs, who also throws cake in the face of his fans. He's coming, we're recording him on Wednesday. Ryan, I bet you didn't know that Steve Aoki is known for throwing cake at people.

• 34:41Ryan Sean Adams?

  I didn't know that, no.

• 34:42David Hoffman?

  Yeah, he's known for that, yeah. Jim O'Shaughnessy, he's coming on the podcast, followed by Raul Paul, and then Kevin O'Leary, Mr. Wonderful, he's coming on, we're gonna livestream with him, getting the other half of the crypto shark tank, and then Ryan, I think, this last one's so great.

• 35:01Ryan Sean Adams?

  Drumroll.

• 35:01David Hoffman?

  Mark Andreessen and Chris Dixon, Mark Andreessen comes back to, comes to the podcast for the first time, the Andreessen of A16Z, and then Chris Dixon coming back to co-host with him as well.

• 35:13Ryan Sean Adams?

  That's awesome, man. Look, Andreessen doesn't do crypto podcasts, this might be his first one, I'm super excited to talk to him.

• 35:19David Hoffman?

  Okay.

• 35:20Ryan Sean Adams?

  We're stacked.

• 35:21David Hoffman?

  There are so few people left for the Bankless Podcast, and those people are Elon Musk, Ray Dalio, and that's about it.

• 35:30Ryan Sean Adams?

  Barack Obama.

• 35:31David Hoffman?

  Barack, yeah, when he gets, he needs to buy his NFT first. So if you can get us access to Ray Dalio, we really want Ray Dalio, he needs to come on Bankless, and also Elon Musk, Elon Musk will come eventually, but Ray Dalio is the one we're really looking for.

• 35:45Ryan Sean Adams?

  Who's actually on my list, David, is Elizabeth Warren. I want to have a nice talk with Elizabeth.

• 35:51David Hoffman?

  Yeah, I bet you do.

• 35:52Ryan Sean Adams?

  About crypto things. All right, let's go to raises, man, raises. So the Sandbox, which is a Metaverse platform, they just geared up for another raise, this is a $4 billion valuation, they just raised $400 million. Pretty crazy. What's this next one, David?

• 36:08David Hoffman?

  Framework Ventures, Vance Spencer, he was our first big episode on the podcast ever, the bull case for DeFi, they raised an $400 million fund with a special focus on blockchain and gaming. So congratulations to the team over at Framework Ventures, I've met some of your guys here at DevConnect.

• 36:24Ryan Sean Adams?

  Yeah, it's a really talented team, super crypto native, an Indian cryptocurrency exchange called CoinDCX just topped a $2 billion valuation, $130 million funding. Interesting to see every one of these nation-state geographies have their own sort of set of exchange players, and India is certainly one of them, so it's onboarding more Indians to crypto, which is fantastic. What's this next one?

• 36:50David Hoffman?

  Yeah, EPNS, the Ethereum Push Notification System service, raised $10 million at a valuation of $131 million. This is like push notifications for anything that's happening to your wallets, in case, like, I don't know, you get an airdrop, you can get a ping on your phone. $131 million valuation, congratulations, guys.

• 37:10Ryan Sean Adams?

  That's cool. Speaking of Mr. Wonderful coming on the podcast, live streaming, Kevin O'Leary, his backed platform called Wonderfy just acquired Coinberry for $38 million. Coinberry is a Canadian cryptocurrency exchange. That's where Kevin's from, Canada. So it looks like he's wanting to get in on the Canadian market there with crypto. It's pretty cool as well. David, did you have any jobs talk this week in Amsterdam? Are people hiring?

• 37:39David Hoffman?

  The joke was Bartek, this is going to be also again later in the takes, but Bartek from L2B talked about when he was going through his talk, he's like, "Well, I'm interested in hiring, but everyone in this room is interested in hiring." And so there's nothing new information. Everyone is hiring in crypto. And so if you've got the talent, you can find the jobs.

• 38:00Ryan Sean Adams?

  Yeah. And to find the jobs, go to bankless.pallet.com/jobs and you'll be able to find them. Okay. I'm going to read some out for you guys.

• 38:08David Hoffman?

  This first one though, I'm going to read this one out, Ryan. Bankless, junior designer, plus After Effects skills. You might have remembered our ultrasound money, there is no floor meme a while ago, a gif, a very long gif. There was also this football gif. If you are good with After Effects and also have junior design skills and want to be paid to make dank memes, Bankless, the company that you are listening to right now, is hiring. So special call out for that.

• 38:34Ryan Sean Adams?

  We're always in the dank meme market. Also, an Ethereum core developer? Well, that's a really bold job position from Nethermind. They're an Ethereum client. A Golang engineer for Storknet client, Nethermind as well. We're still looking for a newsletter editor. I see David. He's up there. He's dancing. This is great. Content manager at Tally, director of developer relations, a solidity architect at Alu, a marketing manager at Masha, UX designer at Prometheus Research Labs, community manager at DGEN Dogs Club, co-founder for innovative OmniChain, DeFi Primitive, TBD, blockchain engineers at Messari, software engineer at Messari, operations manager at Syndica, senior product designer at Smart DeFi Senior Go, Rust engineer at Syndica Senior, full stack engineer at Syndica. Senior software engineer, AirDrop Labs.

• 39:18Ryan Sean Adams?

  And David is now jumping on the bed in his hotel room in order to help you get a job in crypto. That's the link this man is going to, to help you get your job in crypto, which is where you need to spend your career. It's, we're only going to keep hiring. It's just like, this job list is only going to get longer.

• 39:35David Hoffman?

  Some people have their, their snow dance. When they want snow to happen, they have their snow dance. I have the, "I want bankless listeners to get a job in crypto" dance.

• 39:43Ryan Sean Adams?

  Join us, join us. Let's talk about this news time. One of the big news items of the week was a MetaMask hack exploit. Okay, don't, don't, don't freak out. It's not every MetaMask account, of course, but this is an interesting security hole. So, one MetaMask user just lost $655,000 worth of crypto. A lot of these were NFTs using MetaMask on mobile. What happened? Well, apparently, if you have your settings set up to do this on your iPhone, MetaMask will actually upload MetaMask private keys to the iCloud, Apple's cloud, as a backup, right? To help restore MetaMask if you lose your phone or something, a backup, nice, nice friendly backup.

• 40:28Ryan Sean Adams?

  Well, this user had his iCloud account compromised. And so some of those private keys were compromised. And so I think this is sort of a PSA. This is what, like, public service announcement. If you're using MetaMask on mobile, if you have an Android, if you have an iPhone in particular, and you are uploading that, your backups, your private keys to iCloud, like, don't do that anymore. Turn off that setting. Go check your phone right now. We'll include a link in the show notes where you can find the exact setting to disable under Profile, iCloud, Backups. Just don't back up your private key. Keep your private keys on your phone if you're using MetaMask in the, in this setting.

• 41:08David Hoffman?

  Name a worst duo, private keys and the internet.

• 41:11Ryan Sean Adams?

  Don't put them in the cloud, guys. Good private key management, good reminder. David, there was another exploit this week. I'm wondering if you'd talk about this and maybe we should start with the bean price chart, because that's where the exploit was, this token called Bean.

• 41:27David Hoffman?

  It looks like it's up 100%, but it's not. It's not actually on the actual front page. It's actually down very, very big. Yeah, so there was a exploit for to the tune of $80 million, 24,838 plus 36 million bean token. All right, what is Bean? It's a decentralized algorithmic stablecoin. I think it's got reminiscent, it was reminding me of empty set dollar a while ago. When price goes above a dollar, they create more of these tokens to bring the price back down. And then when the price goes down below, they attract new buyers by issuing credit. And, you know, very risky, very experimental. Seemed to be going well if you like, yeah, look at that market cap. Market cap was going up and to the right really, really fast.

• 42:10David Hoffman?

  And then it went to zero because of an exploit.

• 42:14Ryan Sean Adams?

  Near zero.

• 42:15David Hoffman?

  Very near zero, basically to zero. And so the exploit was pretty interesting, actually. It was a flash loan governance attack that enabled the attacker to drain all of the money in the treasury, I guess. So there is a BIP, what I can imagine is a Bean Improvement Proposal 18 was flash loan approved by a hacker. And once that EIP was merged on chain, I think this is how this works, that enabled this exploit to happen. And then in that same transaction, the attacker approved the governance proposal and then drained the treasury with this flash loan and was yoinked all the funds.

• 42:54Ryan Sean Adams?

  $80 million. I've never seen a chart like this, David. Look at this, man. This just falls off a cliff, right? This is what happens when an Elgo stablecoin gets hacked. You go from $100 million in market cap all the way down to like 5 million in the space of like 24 hours, like 96, 97% loss, boom.

• 43:11David Hoffman?

  Yeah, a $5 million market cap, Ryan, is essentially zero.

• 43:15Ryan Sean Adams?

  It may as well be. And this hack was interesting. You know, what I think we've been talking a lot about algorithmic stablecoins recently. And a lot of the concern about them is sort of de-pegging risk, right? If it's not backed, there's a kind of a run on the bank. And then everyone tries to cash out. There's not enough liquidity and the price crashes, right? That's definitely one way an algo-stablecoin could die in a hurry. But the other way is it just gets hacked. This was an economic exploit. So issues with the smart contract code essentially led to some flaws, which allowed the flash loan governance attack. And this also kills the algo-stablecoin. So a lot of risks when we're talking about these types of stablecoins.

• 44:00David Hoffman?

  Yeah, especially when like algo-stablecoins are inherently faith-based, right? Anything under-collateralized, its remainder collateralization is therefore faith. And this one had zero collateral. And so it was all faith. And so if, once the economic incentives break and then it goes into faith. And if there's not enough faith there to back it up because it just got exploited, it just goes to zero.

• 44:24Ryan Sean Adams?

  The Bean community is still trying to resolve, you know, trying to come back from this. I don't know if they'll be successful or not. Certainly some of the other stablecoins that have just evaporated and never came back, like empty-set-dollar basis cash, they're all in the dustbin of history. So we'll have to see. Ryan, you knew that these algo-stablecoins in particular are incredibly risky and experimental. David, we said this in the intro, North Korea was actually responsible for last month's massive side-chain Ronin theft. The FBI is now confirming this. What's the story here?

• 44:58David Hoffman?

  Yeah, I actually don't know how we confirmed that it was North Korea, but this Lazarus group, which has been associated with North Korea, is apparently discovered to be responsible for the hack. So North Korea now owns $625 million worth of ETH. I tweeted out during that hack, like, hey, if you steal like $600 million from an exploit, you have to pay taxes on that. And it turns out in this case, they don't because it's North Korea.

• 45:24Ryan Sean Adams?

  Wow, and they're actually cycling a lot of this through tornado cash, or some of it through tornado cash to try to wipe the slate clean.

• 45:30David Hoffman?

  That confuses me because like, what does it matter? They're in North Korea. They're not hiding from anyone.

• 45:38Ryan Sean Adams?

  Then they can change it, like they can cycle it into, I guess, another asset and sort of cash out. Because right now, you know, the ETH that they stole is kind of blacklisted from a lot of exchanges from the rest of the world.

• 45:51David Hoffman?

  But the whole country is blacklisted, Ryan.

• 45:54Ryan Sean Adams?

  I don't know. I don't know. You know what is interesting to me, and this was not quite a, this is more like a multi-sig attack where, again, someone like validates we're keeping their private keys in the cloud, which again, like, do not do this, especially if you're a bridge or a sidechain. So that's the way it was hacked. But it also reminds me of like, something we talked about a long time ago during the earlier days of crypto is this concept of being, having sovereign security resistance. So like the Bitcoin or concept of one day the nation states are going to come attack our blockchain and we have to be ready for that. We have to be resilient against those forms of attack. We're not exactly sure how they will do this.

• 46:37Ryan Sean Adams?

  But this is now kind of a nation state operative group attacking crypto assets and after a fashion attacking chains. So we're at that point in history where blockchains are getting attacked by nation states. And that's why security matters, I think, more than ever, particularly at the base layer. So somewhat interesting.

• 46:56David Hoffman?

  Security is tight. We like security.

• 46:59Ryan Sean Adams?

  This is cool too. Maker is integrating Starknet. What is, what's happening here?

• 47:03David Hoffman?

  Yeah, basically they are deploying multi-collateral D.I. They're deploying Maker DAO on to Starknet natively. And so that's, that's the news. So congratulations to Maker DAO.

• 47:13Ryan Sean Adams?

  10x improvement in gas costs, of course. That is the big carrot that these protocols have for moving to layer two. David, let's talk about this in NFT news. So punk6529 has just released something called OM. What is OM?

• 47:30David Hoffman?

  Yeah, OM. I actually don't know what OM stands for. My guess was open metaverse, but the name actually isn't whatever that stands for isn't out, or maybe it just means OM. OM is a digital museum. And so 6529 has a fantastic NFT collection. He's a collector of collectors. And so he's building out this OM museum to display his NFTs in like some sort of like, it's also a digital land space. And so there is, it's kind of like, I think a hub and spoke model, where there are actually 10 museums out there, and this is just the first one. And there are going to be, I think, sales for the remaining amount of land. People can come and check out all of the NFTs in the gallery, probably with some sort of like

• 48:14David Hoffman?

  virtual reality, but probably viewable on your computer as well. And so all of his first, the first district, they're calling them districts, is going to display 2,000 NFTs from different collections, including 6529's as well as some others. Bored, CryptoPunks, all the art blocks. And then over time, these different districts, 10 self-governing cities, he describes them, will be unveiled and slowly rolled out in what is being called the alpha mode version of this metaverse museum.

• 48:45Ryan Sean Adams?

  This is pretty stunning. I love these visuals. This looks great. Do you think this will catch on? Do you think like the future of NFT museums is not physical? Going to a museum in person and seeing like a digital display, but actually going to the metaverse and displaying NFTs in somewhere like this?

• 49:01David Hoffman?

  I certainly think there's room for both, but I definitely think that the product market fit behind a digital NFT museum, I mean, it's the same thing, like so many more people see my CryptoPunk on my Twitter avatar than they would if I displayed my CryptoPunk in my apartment, although people do see that because it's in the background of my weekly rollups. But still, people see that on Twitter more. And so a digital metaverse, a digital museum is going to be much more accessible than a physical one.

• 49:26Ryan Sean Adams?

  Do you know, as cool as this is, David, it does also feel a little skeuomorphic, right? Because we're sort of replicating the museum. This is the first phase of crypto display where we're sort of replicating the museum experience, but putting that in the digital world. And I wonder how much more we'll unlock, right? It's kind of like the early, early stages of the internet where we would just take a physical magazine, we just upload that, basically. And then we found out, no, website design is much more fluid, much more dynamic. There are way better ways to display this content than just porting the print magazine format to, to the digital world. I wonder if we'll see that in the future as well.

• 50:01David Hoffman?

  Yeah, I think that's a good take, but in order to get to the internet, Ryan, you still had to start with putting a magazine on the internet.

• 50:07Ryan Sean Adams?

  You have to go through the skeuomorphic phase, no matter what, absolutely. That is the model. This is cool. Warner Music Group just partnered with PoAP, the PoAP Protocol, to mint shared memories as NFTs. We've talked about PoAP in the past. This is now a record label partnering with PoAP to do that. What do you think this means?

• 50:25David Hoffman?

  Yeah, I think they're just going to be integrate NFTs in the same way everyone else loves NFTs and they're very, they're huge at conferences. Ryan, I saw actually out of the, the PoAP team, credit card sized, credit cards, I guess, PoAP RFID chips, right? And so I can hand you my credit card and you can put your phone on it and then boom, you can mint my NFT, or my PoAP, I mean.

• 50:47Ryan Sean Adams?

  Really?

• 50:48David Hoffman?

  Yeah, yeah. So like the cool thing is instead like I have all these stickers. I have some of them here in this bag. Like this is the boomer phase of PoAPs where I've been handing out these stickers.

• 50:55Ryan Sean Adams?

  The skeuomorphic phase?

• 50:56David Hoffman?

  A QR code on the back. Yeah. And then people throw like, then they get the QR code and they can slap the sticker somewhere. But then this one is just like a card, like you hold in your credit card wallet and you can just like place it under somebody's phone and then boom, mint a PoAP. And so, you know, this mine is the You Met David Hoffman PoAP. There is with Warner Music Group, rapper Kevin Gates, here's an example of how this is going to get used. Kevin Gates, never heard of him. It's related to integrate PoAPs into his Kaza tour, making one available to fans who up, who attend his upcoming show at Red Rocks Amplifier.

• 51:29Ryan Sean Adams?

  Wow, so you go to, you go to a concert, you get a PoAP, like proof of memory.

• 51:32David Hoffman?

  Right, like duh, that's, that's perfect. Like, I was there, I was there. No, no one needs to explain that.

• 51:36Ryan Sean Adams?

  And you get these hardcore fans who I, I went to 10, I went to 20, I'm touring, I'm, I'm like basically going with this band all across the country, all across the world. I'm collecting these Po apps. And then maybe on the other side of that, now the creator has like an airdrop list.

• 51:51David Hoffman?

  A list, he has a subscriber list.

• 51:53Ryan Sean Adams?

  Yeah, I want to see who your 1,000 top fans are. Well, it's people who have the most Po apps. And so what do you do with that? It's super cool.

• 52:01David Hoffman?

  Totally.

• 52:02Ryan Sean Adams?

  Yeah, it's a really, really exciting. Yeah, they, they, they sure seem to be. And yet at the same time, we do have these like top signals, maybe? Some 2017 vibes in the NFT world. This is a, an influencer shill price list. And so people aren't aware, there are a lot of NFT influencers in the space and they actually get paid to promote things. Okay. So like, be aware of this. This is, um, this is for, if you want an, an NFT influencer to retweet your NFT, retweet something, or do a shill tweet, uh, to their followers. This is, this is the price point for that. You can get Lindsay Lohan, David. How much is Lindsay Lohan tweet going for to, to shill our NFT?

• 52:44David Hoffman?

  A Lindsay Lohan tweet, a shill tweet is $25,000. A retweet is $20,000. And then you can get a package deal for two tweets plus one retweet for $35,000, Ryan.

• 52:57Ryan Sean Adams?

  So something else that's going on is compound, the lending and borrowing protocol. One of the, the kickstarters of DeFi summer and the yield farming movement, they might actually ditch yield farming. No longer issue tokens to those supplying liquidity to the protocol. And, uh, this comes, I think on the back of a down bad for comp token, right? Like it's been bleeding relative to dollars, but also bleeding relative to ETH.

• 53:25David Hoffman?

  Everything. Well, as all DeFi tokens have.

• 53:27Ryan Sean Adams?

  All DeFi tokens have, but particularly the ones that are giving a lot of generous yield to those that are farming them, those that are basically providing liquidity to them because that acts as a, a supply drain, right? So what are yield farming farmers doing? They're taking their, their tokens. They're saying, thank you very much. And they're converting that to dollars or, or ETH or Bitcoin. They're just selling it.

• 53:50David Hoffman?

  Market sell.

• 53:51Ryan Sean Adams?

  So the holders of COMP in the governance are saying, hey, this is not a sustainable strategy. Let's no longer do that. And there's some governance proposals in the work to stop yield farming from the originators of the yield farming movement. What do you think?

• 54:04David Hoffman?

  Yeah, it's nice to see, one, it's nice to see the COMP governance actually doing something. COMP hasn't done anything in a long time. Like Compound has just been the way that it is, which is why people appreciate it, right? Generally considered rock solid. But like also, you guys could have done this, you guys could have seen this coming forever ago. Like COMP has been yield farmed to death for like, oh, it was, it's kickstarted DeFi summer, and now it's killing the whole, it's killing the thing that it started, like almost two years later. Yeah. I mean, when, when the token price is down bad, people are like, hey, let's stop issuing.

• 54:40Ryan Sean Adams?

  That's natural. They should, right? This is why these tokens need to be governed and the, and the holders need to be economically like incented, and they certainly are for token value appreciation. Some other people like Teddy from Notional Finance think it's a very bad idea, saying that what will happen is your liquidity will dry up and your yields will dry up and people will stop using the Compound protocol, right? Like what would happen is if you moved COMP rewards, your, your interest rates on DAI would move from 2.7% to like

• 55:12David Hoffman?

  .7%.

• 55:13Ryan Sean Adams?

  .72%, right? And so like, are you going to be able to sustain the liquidity after token, the token rewards dry up? That's the big question.

• 55:24David Hoffman?

  Well, they should be able to because as demand goes up, yields go up as well. And so is there enough DAI to borrow? It's not like Compound is, is an exchange that needs to have like liquid markets. It just needs to have ample supply. And if more DAI gets demanded out of the protocol, the yields do increase. So I'm not concerned about that.

• 55:43Ryan Sean Adams?

  Yeah, I do think all token communities start thinking more about their economics during the bear season, right?

• 55:49David Hoffman?

  Certainly.

• 55:49Ryan Sean Adams?

  Ethereum is no different, Bitcoin's no different, they all do this. Let's talk about this, David. So crypto, as we talked about before, is funding military defense. Look at this. This is from Ukraine. I think these are, these vests?

• 56:02David Hoffman?

  These are, no, they're bulletproof plates. Yeah, so they slip into a vest. So it's just kind of nice to see the evidence of all the crypto donations. We're 200 sets of ballistic plates of class four, four-class bulletproof vests. Don't know what that means, but I'm sure someone with military experience does. But yeah, crypto buying bulletproof vests, cool.

• 56:22Ryan Sean Adams?

  Crypto funding military defense? Like, it's kind of, it's kind of cool. It's also a little dystopian, maybe? I don't know how I feel about it, but yeah.

• 56:30David Hoffman?

  It feels like we're in the 2020s.

• 56:31Ryan Sean Adams?

  Yeah, this, welcome to the 2020s. This is what we're doing now. Guys, we'll be back with the takes of the week, but before we do, we want to thank the sponsors that made this episode possible.

• 56:40David Hoffman?

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• 57:21David Hoffman?

  And also check out the Aave Protocol Governance forums to see what more than 100,000 DAO members are all robbing about at governance.aave.com. Living a bankless life requires taking control over your own private keys, and that's why so many in the bankless nation already have their Ledger hardware wallet. And brand new to the Ledger lineup of hardware wallets is the Ledger Nano S Plus, a huge upgrade to the world's most popular hardware wallet. With more memory and a larger screen, the Nano S Plus makes it easy to navigate and verify your transactions. And the paired Ledger Live desktop app gets you increased transparency as to what is About to happen with your NFT. What you see is what you sign. The Nano S Plus gives you the smoothest possible user experience while you're doing all of your crypto things.

• 58:01David Hoffman?

  So go to the Ledger website to check out the features of the new Ledger Nano S Plus and join the waitlist to get yours. And don't forget about the Crypto Life Card, also powered by Ledger. The CL Card is a crypto debit card that hooks right into the Ledger Live app, right next to all the DeFi apps and services that you're already used to doing, like swapping tokens and staking. So if you don't have a Ledger hardware wallet, go to ledger.com, grab a Ledger and take control over your crypto. Arbitrum is an Ethereum Layer 2 scaling solution that's going to completely change how we use DeFi and NFTs. Over 300 projects have already deployed to Arbitrum and the DeFi and NFT ecosystems are growing rapidly. Some of the coolest and newest NFT collections have chosen Arbitrum as their home. All the while, DeFi protocols continue to see increased usage and liquidity.

• 58:44David Hoffman?

  Using Arbitrum has never been easier, especially with the ability to deposit directly into Arbitrum through all the exchanges, including Binance, FTX, Quobi and Crypto.com. Once inside, you'll notice Arbitrum increases Ethereum's speed by orders of magnitude for a fraction of the cost of the average gas fee. If you're a developer who wants low gas fees and instant transactions for your users, visit arbitrum.io/developer to start building your DAP on Arbitrum. If you're a Dgen, many of your favorite DAPs on Ethereum are already on Arbitrum, with many moving over every day. Go to bridge.arbitrum.io now to start bridging over your ETH and other tokens in order to experience DeFi NFTs in the way it was always meant to be. Fast, cheap, secure and friction free.

• 59:23Ryan Sean Adams?

  All right, guys, we are back with the takes of the week. This is one from Li Jin. Why don't you read this out, David?

• 59:28David Hoffman?

  Yeah, Li Jin, previous podcast guest about the creator economy. She says, "Do things that make your friends and family worried about you." I definitely appreciate it. What do you think she means, Ryan?

• 59:40Ryan Sean Adams?

  I think she's meaning like her parents, her friends, her family are probably saying, "Are you sure you want to like dive into crypto?"

• 59:48David Hoffman?

  Right.

• 59:49Ryan Sean Adams?

  Like to this degree? Go all in? It seems risky. We're worried about you. Is everything okay? I don't know. What kind of reaction did you get from your family when you told them about your crypto shenanigans?

• 1:00:01David Hoffman?

  Oh yeah, I kind of added that my own take down to her take right below it. You can see it. And I go, "My mom, my mom about my career choices throughout 2018 to 2020." And she was like, "Well, he's happy, so."

• 1:00:15Ryan Sean Adams?

  Such a mom thing to say. Amazing. What does she think now, though? It's like 2021, 2022. What, you know, for me, my family is like, had no idea what I was really doing. But then like Mark Cuban came on the Bankless Podcast and they were like, oh my god. Mark Cuban?

• 1:00:32David Hoffman?

  Right.

• 1:00:33Ryan Sean Adams?

  That was the name for them that really stuck out. I'm like, Mark Cuban's cool. I like Mark Cuban. But like, we had Vitalik on, okay? That should be a big deal to you. But no, they were unimpressed by Vitalik, really excited about Mark Cuban.

• 1:00:45David Hoffman?

  For my family, it was Hester Purce. My family is like, definitely like political and engaged. My sister works in government, so having SEC Commissioner Hester Purce was like a big deal.

• 1:00:53Ryan Sean Adams?

  Legitimacy?

• 1:00:54David Hoffman?

  Legitimacy, yeah. And then, and then also Andrew Yang, because they knew I was a big Yang fan. They're like, oh yeah, Dave's, Dave's climbing all the way up there. That's pretty cool.

• 1:01:01Ryan Sean Adams?

  Do you think your family was always before like Hester Purce came on the podcast, like, I don't know what David's doing. It seems a little sketchy. And then when you got an SEC Commissioner?

• 1:01:09David Hoffman?

  Yeah, I definitely explained it to them. So like, oh, Dave's doing what he really, really likes. Uh, and, but it was just like a, a normal job back then. Uh, and now it's like, yeah, the, the, the leading podcast in the crypto industry, which is a little different of a story.

• 1:01:23Ryan Sean Adams?

  Well, he's happy. David's calm.

• 1:01:25David Hoffman?

  He's happy.

• 1:01:25Ryan Sean Adams?

  He's happy. Big smile on his face. That's awesome, man. Uh, Andrew Cronier, we talked about this in the beginning.

• 1:01:32David Hoffman?

  Somebody who's not happy.

• 1:01:34Ryan Sean Adams?

  He's not happy. Um, basically a line from his Medium post is crypto culture has strangled crypto ethos. So he went through this whole blog post called The Rise and Fall of Crypto Culture. Crypto is dead. Long live crypto. I think the TLDR of this post is basically, we need more regulation. I now more than ever see the need, he says, or even necessity for regulation, not as a mechanism to prevent, but as a mechanism to protect. It's like a child trying to stick their finger into the electric outlet. You stop them before they can learn why they shouldn't. One day they will understand, but not today. Andre, the father of many DeFi protocols and sort of the, I guess, one of the, the main architects behind that like, ship fast, break things.

• 1:02:19David Hoffman?

  Yeah.

• 1:02:20Ryan Sean Adams?

  That's like his strategy at like, I test in prod. Remember that was the line? Coming out of, uh, you know, 2020. And now is saying, we need tighter controls, more regulation, more oversight of this industry. What do you think?

• 1:02:33David Hoffman?

  This is ridiculous, dude. He was the guy that incentivized this behavior. He like, he became Andre Cronje because he gave the apes fuel. He gave the apes things to ape into. And now he's like, you know what? This industry needs less things for the apes to do. It's like, dude, you're the reason why you're making the complaints in the first place. Like, it reminds me of like the quick, like, there was this guy, I can't remember who it was, but the Bit license in New York was made by like this federal regulator or something and made the Bit license, which made it very, very hard to actually like spin up a Bitcoin or crypto company in New York. And you know what he did after that, Ryan? After he made that, he made the Bit license?

• 1:03:16Ryan Sean Adams?

  No.

• 1:03:17David Hoffman?

  He started consulting for how to get approved for the Bit license.

• 1:03:22Ryan Sean Adams?

  You think Andre wants to become a regulator?

• 1:03:24David Hoffman?

  I don't, well, I don't know. He, but first he's like, he's like, oh dude, all of this ape culture is terrible, but he got rich off of ape culture. He got famous off of ape culture. He's got like extremely well respected by his populist following because of ape culture. And I was like, well, I don't like ape culture because it needs to be regulations. They're too apey. It's like, dude, you created this.

• 1:03:45Ryan Sean Adams?

  Yeah, testing and prod kind of does that to you. This is, uh, this is another take from a critic who I think shares some of your points. You want to read this out?

• 1:03:52David Hoffman?

  Yeah, it goes, "A man who makes nine to 10 figures, building multitudes of shitcoins and projects, thanks to crypto's lack of regulation, then quits the space and now advocates for the biggest meme of all, investor protection and regulation. Welcome to the clown world." Yep, that's, and this seems to be consensus by people that I've, that I've talked to.

• 1:04:12Ryan Sean Adams?

  I, uh, I would like to actually talk to Andre at some point about this take and hear how he explains it. It's actually been a while since he's been on the podcast, but maybe we'll just let this blow over for a bit and see what happens. David, you had another take about, uh, again, this is, this is sort of about MFers, which I think MFers are really cool. These, these NFTs that work off of the Creative Common License. So anyone can create a derivative of them. Anyone can essentially fork them and create their own version of those. And there was an airdrop to all MF holders.

• 1:04:43David Hoffman?

  On 420.

• 1:04:44Ryan Sean Adams?

  On 420, alright. There's these awesome crazies, they're called MFers, that were just airdropped to everyone who has an MF, uh, an MF, NFT.

• 1:04:55David Hoffman?

  Yeah.

• 1:04:56Ryan Sean Adams?

  Yeah, and, um, like you just got it automatically. And there's like psychedelic derivative MFs that look pretty awesome. And you got a take about this? What's your take?

• 1:05:06David Hoffman?

  Yeah, I said MFers are the new money printer because MFers are like the OG of the MFer ecosystem. But there's been thousands, what seems like thousands of derivatives, right? Some airdropped, some just randomly minted, some you get to claim if you have an MFer, some are completely different. But it reminded me of like the era of Bitcoin fork and fair launches where people would fork off Bitcoin and then make their own like new blockchain using the Bitcoin state. And if you had Bitcoin, you had all of these new tokens because it was a fork off of, off of the Bitcoin network. So if you had Bitcoins, you had tokens on this new chain. And so Bitcoin was the, the brand for Bitcoin at the time was Bitcoin gets all the upside of all these derivatives because you can always.

• 1:05:50Ryan Sean Adams?

  Bitcoin Cash, Bitcoin Diamond, Bitcoin Satoshi's Vision, whatever else.

• 1:05:54David Hoffman?

  So if you sold all of your Bitcoin forks, you would just get a lot more Bitcoin, right? And so like I'm seeing the same thing play out because MFers are so easy to make derivatives of. The OG MFers are like the OG Bitcoin, right? You get all the derivatives. Like you just get the money printer. Uh, and so that was my take. MFers are the new money printer, but for NFCs this time.

• 1:06:13Ryan Sean Adams?

  It's cool. It's openness can be a competitive advantage and a competitive strategy. Certainly. That's what Creative Commons License provides for, uh, for MFers.

• 1:06:21David Hoffman?

  Also, I have a lot of MFers. So this is me shilling my bag here.

• 1:06:25Ryan Sean Adams?

  Well, full disclosure there then. Um, I only have one, David. I should probably have more. But now I have some derivatives too. Um, man, should we get into it? What are you excited about this week?

• 1:06:33David Hoffman?

  Well, Ryan, we still have all the rest of the week for Dev Connect. Uh, so today's, there's some parties. Tomorrow's gonna be some even more parties. And then on, on Sunday, there's Rave. So I'm excited to finish up Dev Connect. But one thing I noticed is that during, uh, the Layer 2B, the Layer 2 Amsterdam, uh, uh, two day summit of sorts. There was, you could get a very like hint of what's coming down the line during L2 season. And then we kicked off, the first Dankrad opened up about a very well-informed talk about what is left in the L2 ecosystem to really, the boxes that need to be checked, right? Very good talk to get up to speed with L2s.

• 1:07:12David Hoffman?

  And then followed by Bartek from L2B, talking about his risk framework, saying like, okay, like, we got, we have like upgradable contracts, that's something that needs to be fixed. We have centralized sequencers like over time, that needs to decentralize. And like he, in L2B does a really good job of like showing all the weaknesses and all the different L2s that need to be patched. And he used the Arbitrum 12-hour sequencer downtime that happened like last September. As an example. As an example, and actually we reported on this, Ryan, like, oh yeah, in L2s, if they go down, you can just exit through the Ethereum L1, you can just exit through the main chain. And yes, that is true in theory about L2s in their very mature state, but that wasn't true, Ryan, about Arbitrum at the time. And a lot of people didn't actually know that.

• 1:07:56David Hoffman?

  And so Bartek was talking about the, and this is what he's trying to get known by the ecosystem is there's a lot of lacking of standards and definitions that we can't really talk about, like what is true and what is not true without this risk framework. Cause that's what Bartek is working on right now. But it got really spicy, Ryan, because he was talking about, yeah, like little did people know, you couldn't actually have gotten that L1 transaction through. It wouldn't have worked because there's still a lot of gaps in the armor for these L2s. But you could hear, I was sitting, the Arbitrum team and the Arbitrum, I think this was the CEO, unconfirmed, was sitting behind me and you could hear them, I was like, wait a second, that's not true. That's not true, that's wrong. And then basically they got really frustrated and the Arbitrum CEO, I think, said, just loudly said, that's not true.

• 1:08:40David Hoffman?

  And made Bartek stumble and like got really spicy in the room. Some tension, some tension in the room, right? And so then I, then I went to a couple of the, after, after that talk like wrapped up, I went to a couple of the, the L2 teams and talked about that moment because they weren't there in the room. And then we're like, whoa, actually, no, it actually was true. But the point is, is exactly like the reason why we can't come to consensus on what's true or not is because why we need. Definition.

• 1:09:03Ryan Sean Adams?

  Imprecise definitions.

• 1:09:05David Hoffman?

  Exactly.

• 1:09:06Ryan Sean Adams?

  So Arbitrum is right under their definition and other other teams are right under their definition. But I guess the takeaway here is you're saying there's like, the kids are fighting. There's some tension here.

• 1:09:15David Hoffman?

  They're claiming, they're trying to clamor for like legitimacy and they're trying to clamor for just like, you know, they're clamoring, people are clamoring. And like, we got the hints of the optimism token coming soon. And so that's gonna kick off.

• 1:09:28Ryan Sean Adams?

  You know what tokens do is they just, they just add steroids to everything you're doing. So if you have a little hint of tribalism, just a little hint of like, our layer two is better than yours, which is only natural, right? They're all competitive environments. Add a token to that. And your tiny campfire becomes an inferno.

• 1:09:46David Hoffman?

  Right.

• 1:09:46Ryan Sean Adams?

  And suddenly you have like tokenized communities who just are just meme armies, like shitting on all sorts of different communities and battles back and forth. And we get what we already have in the alt layer one world, which is all of these communities fighting with one another. And then people go and shaking their heads and be like, why is crypto so tribal? It's because the incentives make us very tribal, don't they?

• 1:10:07David Hoffman?

  That's exactly right. That's exactly right. So like for better or for worse, Ryan, this is coming and competition is always good for the end user. So I think this is really going to accelerate the development of layer twos. L222 is just around the corner. You can taste it. And Ryan, that is what I'm excited about.

• 1:10:24Ryan Sean Adams?

  Well, I am sort of, my position is kind of the, I want all the kids to get along and the whole family to get along. I want us all to scale decentralization, want us all to scale Ethereum. So I am excited about all of these various experiments. I think many of the, all of the layer two teams, almost all of them are just legit. Like passionate, doing this for the right reasons, just fantastic. But it kind of reminds me, you know, we use the nation state analogy for like the United rollups of Ethereum. It's kind of like the, the US and the states are the various rollups. And Ethereum is kind of like the federal government. It's almost like California kind of wants to get in a fight with Texas a little bit.

• 1:11:01David Hoffman?

  Right.

• 1:11:01Ryan Sean Adams?

  And take like market share from Texas. Yeah, it's a little like, yeah, Biggie versus Tupac. I don't know. North versus South, something like this. Florida versus Texas, California. I don't know. There's something like that, and I think that's coming too. So we will, of course, have to navigate that. But can I, like, just to tie off the DevConnect conversation?

• 1:11:20David Hoffman?

  Wait, wait, wait. Before we do, though. We all know the crypto industry runs on attention, and what is going to make, have more attention than a bunch of Layer 2s fighting with each other? Like, bullish fighting?

• 1:11:33Ryan Sean Adams?

  Bullish?

• 1:11:33David Hoffman?

  Question mark?

• 1:11:35Ryan Sean Adams?

  But I don't want to fight all the time, David.

• 1:11:38David Hoffman?

  No, it's coming, Ryan. It's coming.

• 1:11:40Ryan Sean Adams?

  Buckle up, guys. I just kind of thought maybe some of the LTs would just, I don't know, band together? It's a common mission?

• 1:11:49David Hoffman?

  Well, they are going to be bridged together by the bridges. So at the end of the day, we're all one big ecosystem. At least we're not separate Layer Ones, Ryan. We're all in it together.

• 1:11:58Ryan Sean Adams?

  That's the worst alignment. That's the worst alignment you can have. All right, well, just to tie up DevConnect, then, what were your big takeaways from DevConnect? And we promised a little bit of alpha through Justin Drake conversation. So what did Drake tell you? When merged, David?

• 1:12:12David Hoffman?

  Yeah, so we were

• 1:12:13Ryan Sean Adams?

  Don't give us a date.

• 1:12:14David Hoffman?

  We were getting beers, right? And we wanted to, we were asking Justin this, and we were joking about, all right, we're going to put all of our empty beers in front of Justin and give him the last full beer. And then we're going to take a picture of Justin. And Justin says, "We're going to merge tomorrow." We ended up not doing that, obviously. But he said a few months. And so the consensus has shifted amongst a very small set of people at this table to sometime to August to October? August to October is the new shelling point of time? Question mark. But the core devs were all locked in a room together, kind of like how you like, got to lock all the politicians together if you needed them to come up with something. But they are making, they're doing a ton of progress. They're doing all these ghost forks. Again, this is not some sort of like

• 1:12:59David Hoffman?

  New York Mainnet Consensus, CoinDesk Consensus Conference. Shit is getting done right now at this conference and you can actually see it. The BarTechs talk for Layer 2 is about, here is the checkboxes that the Layer 2s need to get done. We need to work on this.

• 1:13:14Ryan Sean Adams?

  I want to watch that talk.

• 1:13:16David Hoffman?

  Yeah, you gotta watch that. Yes, yes, yeah. I also had a fantastic talk with a lot of the core teams. Danny Ryan, Dankrad, Preston Van Loon, a few others. Really good talk as well. I'll try and find that and link that in the show notes as well. Just so much information being passed around, so we're all syncing our nodes about what the state of the industry is, is in, so we can progress forward. Again, the vibes in the coworking space, the Shelling Point, where everyone goes to hang out, which is where I'm going next after this, are just fantastic. I'm meeting a ton of new people, also seeing a ton of all my friends. Oh, it's just, it's just great, man.

• 1:13:53Ryan Sean Adams?

  That's awesome. How's, how's Sisano doing?

• 1:13:56David Hoffman?

  Oh, Sisano's doing great. He led the Layer 2 panel, you know, and yeah, it's great to see him, great to hang out.

• 1:14:04Ryan Sean Adams?

  That's awesome, man. Oh, very cool. Good stuff.

• 1:14:07David Hoffman?

  Progress gets made when the ETH people all get together.

• 1:14:10Ryan Sean Adams?

  Yeah, I mean, there's a lot of doubters on Twitter right now saying, yeah, you're just hedging and the merge is never going to happen. Or if it does happen, it's certainly not happening in 2022. So the only way you can quiet that is to actually ship the thing.

• 1:14:24David Hoffman?

  Do it.

• 1:14:24Ryan Sean Adams?

  So I think we're getting close.

• 1:14:26David Hoffman?

  Yeah. Deft Connect is a yearly thing, so I'm looking forward to doing this again next year. Yeah. Ryan, what are you excited about, my man?

• 1:14:33Ryan Sean Adams?

  We just bought banklesshq.com, alright?

• 1:14:35David Hoffman?

  Yes, we did. Yes, we did.

• 1:14:37Ryan Sean Adams?

  So last week it was the trademark. This week we got banklesshq.com. We'd been on the hunt for this for a while and, you know, we found, we found the person who was selling it, did a private transaction. So that is in the process of getting transferred. That's not my story though, okay? Like, that's what's exciting. But my story is about, like, sometimes I like to torture myself. We still have to have a bank account for certain things. So when you buy a domain name, you have to, like, transmit funds to an escrow service, right? So it's all fiat. There's this service called escrow.com. So the only Way, David, for us to get money from our fiat bank account, which again, we have to have for certain things. I can't pay for this thing with USDC or ETH, for example, is to use our bank account.

• 1:15:22Ryan Sean Adams?

  Okay. And like a couple of years ago, actually before, you know how Vitalik started Ethereum? Cause you know, the joke is his warlock and wow got nerfed. Right. Okay. I partially started the bankless newsletter because I was pissed because Bank of America shut down my bank accounts, my business bank accounts. All right. Like true story. It's just like kicked me out. Just received a Dear John letter. Within 30 days, you and all of your assets have to go bye bye, see you later. And why? The reason was because I had a cryptocurrency transaction, a withdrawal from Coinbase to my Bank of America account. Coinbase. And that flagged me. Oh, it must be shady. So booting. So we've had, for bankless, we've had like a credit union, which are generally more friendly. Like the cannabis industry has experienced this.

• 1:16:07Ryan Sean Adams?

  Little banks instead of a big bank. Tiny banks, right? With like, they know their community managers, part of the community and they don't have these big risk assessments. Anyway, we're trying to transfer funds, wire funds. I have to show up at the credit union in person, present my ID. They ask me like, what I'm doing with the funds. I'm like, just, you know, are you buying property? Yeah. After a fashion, digital property, it's a domain name. And you know, got that process through. Anyway, what happened is the wire did not get transferred that day. And apparently this got escalated through the credit union because they looked up bankless and they saw that we were a crypto podcast in the crypto industry. And there were internal meetings and it was deemed risky.

• 1:16:51Ryan Sean Adams?

  And so, yeah, you're just hearing this because you've been in Amsterdam. So I had multiple conversations with like the bank managers at the credit union, trying to explain what we were doing. Like we're a podcast, we have a subscription service. We're extremely legitimate. And they were like, but you're issuing a token. What's your token? I'm like, oh, you're talking about an NFT? Because if you are a bankless premium member, yes, there is a Poet badge that you can get. It's an NFT. Are you familiar with what? NFTs were, and the guy I was talking to is just hilarious, right? Cause he was like, oh, I'm totally down with NFTs. I just, I love it. I just have to convince these guys, these other guys, right?

• 1:17:30Ryan Sean Adams?

  Like this younger, uh, bank manager, I guess, having to talk to the three to five old guys in the office and convince them that they should not kick us out of our credit union bank. They should actually process-

• 1:17:45David Hoffman?

  Oh, we almost got unbanked?

• 1:17:46Ryan Sean Adams?

  Oh, totally dude. They were this close, right? This close to being flagged. Yeah. And so, okay, that story, right? I just, you know, it's not, I'm not, we're not being super persecuted, whatever. We still have crypto rails. It's just kind of an inconvenience. It's annoying. But it reflects on me that if you have a money in a bank account, you don't actually own the money.

• 1:18:09David Hoffman?

  Right.

• 1:18:10Ryan Sean Adams?

  You want to move that money out? Imagine, because this is what really happens. You ask five guys in, in suits, in some office somewhere, if you can move your own damn money. Please, sir, can I move my money from one place to another? Please, will you allow me to do it? No, because you're in the crypto industry, or no, because we don't like your political perspective, or whatever it is, right? Uh, so it just drives the point home that the, this is why we need to go bankless, David. You know, this is, we, we need the ability to exit the existing system and we need the freedom to be able to move our funds from one place to another. That is a civil liberty for the digital era, for the 21st century.

• 1:18:55Ryan Sean Adams?

  And if you have your money in account, you don't have those liberties. You don't actually own your money in a bank account.

• 1:19:00David Hoffman?

  You know what the cherry on top of that story is? That the escrow service that you're, yeah, we were sending the money for, could have just been a smart contract.

• 1:19:08Ryan Sean Adams?

  I know, dude. Totally. Totally. Like this could have been done like that. Smart contract. Oh, and if it's an ENS domain, boom.

• 1:19:16David Hoffman?

  Right.

• 1:19:16Ryan Sean Adams?

  Both the parties deposit, done. Probably for less money, too.

• 1:19:20David Hoffman?

  Yeah, inside of 10 minutes, one gas fee, like no five dudes in ties, you know, take time out of their day.

• 1:19:27Ryan Sean Adams?

  In a building.

• 1:19:27David Hoffman?

  And like in a physical building with.

• 1:19:29Ryan Sean Adams?

  I talked to like three branch members. I had to go in person, like say hello. Somebody paper filled out the wire transfer information, copying it from digital to, like, it's just so inefficient.

• 1:19:39David Hoffman?

  People consumed gas in their car to get to that building on that day. Like that's taking up space that could have been housing for people. Like, you know, you gotta go bankless, right? Like people, people could talk about how much energy like Bitcoin is consuming. What about all the unnecessary ridiculousness of the entire banking industry that could be automated?

• 1:19:57Ryan Sean Adams?

  They also talk about how crypto UX just sucks and has like, yeah, sure, parts of it, but like, no, that UX sucks. I just tried to get money from one place to another and I can't do it without talking to like five different people, showing up in person, presenting my ID, arguing my case, almost getting kicked out of my bank account. That sucks. That's bad UX.

• 1:20:16David Hoffman?

  So there was, there was one time I had to make a wire transfer that was like over the limit of like $15,000 or something. And I was not home. I was in San Francisco at the time and I couldn't go into a Wells Fargo branch. And so I called them and say, hey, can you, we just like ignore this $15,000 limit because I gotta, I have to do it. I had to be done like that day, basically. And they were like, ah, no, like we can't do that. Like in order to do anything above $15,000, we need to send you like a PGP key or something, like one of those little USB authenticators. And I'm like, okay, but like I need to do this a day. So it's not going to happen fast enough. A PGP key. They wanted to send me a PGP key so I could USB it into my computer so I could verify my identity. That's just a boomer, uh, hard, uh, hardware wallet.

• 1:21:00Ryan Sean Adams?

  I don't even understand how, how do they know it's you who they're sending it to?

• 1:21:03David Hoffman?

  Cause they sent it to, they would send it to my address and then I would have it and they could have like, I don't, I don't know. But it's basically a private key. They're, they're asking me for have a hardware wallet, except it's a PGP key, like Google auth and a USB. It's a hardware wallet. They just want me to have a hardware wallet.

• 1:21:17Ryan Sean Adams?

  With extra steps.

• 1:21:18David Hoffman?

  With extra steps and it's worse. Yeah, oh, it's so broken, dude. It's so broken.

• 1:21:24Ryan Sean Adams?

  It is broken, but you know, you gotta use the banking system every once in a while to to see how far we're coming to like, it always reestablishes the crypto vision for me. I'm like, oh, yeah, this does suck. Don't give me this crap and tell me like TradFi is fine as is.

• 1:21:37David Hoffman?

  Right.

• 1:21:38Ryan Sean Adams?

  Dead end.

• 1:21:39David Hoffman?

  Crypto UX definitely has room to improve, but at least you get to do it from the comfort of your own home.

• 1:21:45Ryan Sean Adams?

  Anyway, we're not kicked out of the bank account. The good news is they didn't kick us. They finally processed the wire. Maybe they listened to a bankless podcast in the process. I don't know. They definitely looked us up. So we still have our credit union. So, you know, we're on the path to going bankless, but we still got that credit union for now.

• 1:22:00David Hoffman?

  Thank you for taking care of that. Congratulations for taking care of, for getting the banklesshq.com. Thank you for taking care of that. Also, the alpha is that the banklesshq.com website is coming. Not anytime soon. Still gotta build it, but Web3 bankless on the way.

• 1:22:16Ryan Sean Adams?

  Doing things. Splash page soon. David, meme of the week. What's the meme of the week? All right, I'm showing it now.

• 1:22:23David Hoffman?

  Here we go.

• 1:22:23Ryan Sean Adams?

  What do we got?

• 1:22:25David Hoffman?

  Oh, yeah. Okay, so this is a, this is a little bit of a deep cut, but for those that remember the Constitution Dow, this is a Brooke Lampy who was on Team Constitution Dow when we were submitting our bids to buy the Constitution. And it goes, breaking Musk retains services of Brooke Lampy from Sotheby's to lead Twitter deal. Not much of a meme, but yeah.

• 1:22:45Ryan Sean Adams?

  She was actually taking the calls, right? And it was Constitution Dow versus, what's his name? Ken Griffin?

• 1:22:52David Hoffman?

  Yeah, she represented Constitution Dow in the auction. Yeah.

• 1:22:55Ryan Sean Adams?

  Yeah, and Ken Griffin ended up winning. So, yeah, she's become a crypto meme. And have you been following the Musk thing, acquisition of Twitter more this week?

• 1:23:04David Hoffman?

  A little bit, but not really.

• 1:23:05Ryan Sean Adams?

  It's kind of fun. It's like there's poison pills, there's back and forth with Musk, and what's he gonna do? Anyway, it's a fun story. Guys, that's all we have time for right now. David's got to get to some things in Amsterdam. But thanks for hanging with us on the weekly rollup. As always, none of this has been financial advice. Bitcoin, ETH are risky. So are NFTs. You could definitely lose what you put in, but we're headed west. This is the frontier. It's not for everyone, but we're glad you're with us on the bankless journey. Thanks a lot. Hey, we hope you enjoyed the video. If you did, head over to Bankless HQ right now to develop your crypto investing skills and learn how to free yourself from banks and gain your financial independence.

• 1:23:43David Hoffman?

  We recommend joining our daily newsletter, podcast and community as a Bankless Premium subscriber to get the most out of your Bankless experience. You'll get access to our market analysis, our alpha leaks and exclusive content and even the Bankless token for airdrops, raffles and unlocks. If you're interested in crypto, the Bankless community is where you want to be. Click the link in the description to become a Bankless Premium subscriber today. Also, don't forget to subscribe to the channel for in-depth interviews with industry leaders, Ask Me Anything's and weekly rollups where we summarize the week in crypto and other fantastic content. Thanks everyone for watching and being on the journey as we build out the Bankless Nation.