ROLLUP: $ETH 3k! | TradFi Stonks ATHs | $STRK Now Live | Yuga Acquires PROOF

Last Week of February 2024 ------ 🏹 USE PODCAST24 FOR 10% OFF https://bankless.cc/Citizen2024 ------ 📣SUI | Register for Sui Basecamp https://bankless.cc/sui-basecamp ------ 🎧Listen On Your Favorite Podcast Player: https://bankless.cc/podcast ------ BANKLESS SPONSOR TOOLS: 🐙KRAKEN | MOST-TRUSTED CRYPTO EXCHANGE https://k.xyz/bankless-pod-q2 ⁠ 🔗CELO | CEL2 COMING SOON https://bankless.cc/Celo 🗣️TOKU | CRYPTO EMPLOYMENT SOLUTION https://bankless.cc/toku 🛞MANTLE | MODULAR LAYER 2 NETWORK https://bankless.cc/Mantle 💸 CRYPTO TAX CALCULATOR | USE CODE BANK30 https://bankless.cc/CTC ⚖️ARBITRUM | SCALING ETHEREUM ⁠https://bankless.cc/Arbitrum https://feeds.flightcast.com/%E2%81%A0https:/bankless.cc/Arbitrum ------ TIMESTAMPS & RESOURCES 0:00 Intro 3:01 Markets 3:23 ETH Price https://x.com/RyanSAdams/status/1760078604178792728 6:30 Bitcoin observations by Nic Carter https://twitter.com/nic__carter/status/1758159340886774270 https://youtu.be/acWTaENmYFw?si=da7JbWp_6SrSdtGK 10:18 L2 Update https://x.com/pseudotheos/status/1760612134189199462 11:30 Movers of the Week https://x.com/OpenAI/status/1758192960116785459 https://twitter.com/WillSmith2real/status/1759703359727300880 https://coinmarketcap.com/cs/currencies/worldcoin-org/ 15:22 BTC ETF FIRST https://www.fidelity.ca/en/investments/solutions-portfolios/all-in-one/ https://dune.com/hildobby/btc-etfs BTC ETFs gained $8.5B on gold ETFs in organic growth since Jan 11 launch! https://twitter.com/EricBalchunas/status/1760281449373065558 19:54 Coinbase earnings beat the expectations! https://x.com/coinbase/status/1758239866234839254 https://nft.coinbase.com/mint/coinearnings 21:38 NVDA Earnings https://www.cnbc.com/2024/02/21/nvidia-nvda-earnings-report-q4-2024.html https://x.com/TrendSpider/status/1760310911213207849 https://companiesmarketcap.com/assets-by-market-cap/#google_vignette 27:10 Starknet token is now live! Was this the Largest airdrop in history? https://twitter.com/StarknetFndn/status/1759910415335600584 https://www.coingecko.com/en/coins/starknetc https://token.unlocks.app/starknet 32:23 You can now check your eligibility in Claimables! https://twitter.com/BanklessApp/status/1760059308077654142 33:33 Pudgy Penguins & Luca Netz https://x.com/pudgypenguins/status/1760040978281271715 https://twitter.com/LucaNetz/status/1760042076379451693 https://twitter.com/Walmart/status/1760088434549395492 https://www.theblock.co/post/277947/pudgy-penguins-briefly-flips-bored-ape-yacht-club-in-floor-price 40:30 Big investment - A16z Invests 100m into Eigenlayer https://x.com/eigenlayer/status/1760666731859833048?s=20 https://x.com/TrustlessState/status/1760672144697229352?s=20 43:30 KelpDAO issues synthetic Eigen Points token https://x.com/KelpDAO/status/1760020436195389561?s=20 44:50 Ethena Mainnet https://twitter.com/ethena_labs/status/1759546702187696437 https://twitter.com/ConorRyder/status/1759706195709849806 https://x.com/0xngmi/status/1759734299861852372?s=20 https://twitter.com/sassal0x/status/1759772880014069989 48:00 Yuga Labs acquired Proof! https://twitter.com/yugalabs/status/1758583237964947796?s=20 https://x.com/kevinrose/status/1758586303095177229?s=20 https://twitter.com/HollanderAdam/status/175859548883878343 0?s=20 https://twitter.com/HollanderAdam/status/175859548883878343%200?s=20 50:23 The announcement of a large $OP airdrop to builders on February 21. https://x.com/Optimism/status/1760002821120983200?s=20 51:40 THE PEOPLE VS THE SEC https://twitter.com/amandatums/status/1760346084323344480?s=46 https://twitter.com/jchervinsky/status/1760349436713050249?s=20 https://x.com/RyanSAdams/status/1760428150863913195?s=20 https://x.com/jchervinsky/status/1760480771444294046?s=20 55:28 Do Kwon is heading to the US! https://twitter.com/WatcherGuru/status/1760348316288667763 https://twitter.com/RyanSAdams/status/1760354192458232039 59:29 Stablecoin wars are heating up! https://twitter.com/Pledditor/status/1758243599446089799 https://x.com/circle/status/1760108597218889998 1:04:35 Raises and BVC Investments INIT Capital raised $3.1M seed investment! https://twitter.com/InitCapital_/status/1760273773667004620 1:05:40 Reddit “Airdrop” https://warpcast.com/rsa.eth/0xb4d6eb5c 1:09:10 MEME of the Week https://warpcast.com/banklesshq/0x8180df86 1:09:44 Closing & Disclaimers ------ Not financial or tax advice. See our investment disclosures here: https://www.bankless.com/disclosures

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

• 0:00David Hoffman?

  You can see this story of the AI bubble starting to form. Like if you look left and right, like AI crypto tokens are up, Nvidia is up, it's holding up the entire stock market. Nvidia is now the seventh most valuable asset in the world, the fourth largest publicly traded company. And then how does that impact the crypto markets? Because it does.

• 0:23Ryan Sean Adams?

  Bankless Nation, it is a bullish February roll up, isn't it David? How are you doing, man?

• 0:28David Hoffman?

  Oh, we still have to be quiet? Quiet, all time highs.

• 0:30Ryan Sean Adams?

  I thought that was last week.

• 0:31David Hoffman?

  No, until all time highs.

• 0:34Ryan Sean Adams?

  Well, I'm gonna have a hard time being quiet because we've got 3K.

• 0:38David Hoffman?

  That's fair.

• 0:39Ryan Sean Adams?

  Ether this week, alright? So we gotta get loud about that, at least on the roll up.

• 0:43David Hoffman?

  I think we got 3K like three times this week. We actually don't have it right now. We have $2,990 on the ETH prize currently.

• 0:51Ryan Sean Adams?

  That counts, that's 3K. Just round that one up.

• 0:53David Hoffman?

  That is not 3K.

• 0:55Ryan Sean Adams?

  This is the first time ETH hit 3K since April 2022, so that's worth celebrating. David, what else we got?

• 1:01David Hoffman?

  The Starknet token is out and live, it is trading. So where did we end up with the ranks of the Starknet airdrop in size and addresses and amount of value distributed to people? We're gonna talk about that. And then some earnings, some earning reports. Both Coinbase and Nvidia have kind of rocked the street, the Wall Street that is. And we're gonna talk about the implications around the broader market.

• 1:23Ryan Sean Adams?

  Yeah, you call it the street, David. What do they call crypto? Like what's the crypto equivalent of Wall Street? Do we have like a cool name? Like the street?

• 1:31David Hoffman?

  The internet?

• 1:32Ryan Sean Adams?

  The blockchain?

• 1:32David Hoffman?

  On the chain, I like that.

• 1:34Ryan Sean Adams?

  On the chain?

• 1:35David Hoffman?

  We got the street and the chain. You're either on street or on chain, yeah.

• 1:38Ryan Sean Adams?

  We also have Pudgy's with their second Walmart round. And this time, they've got some more community participation. This is a big one. Pudgy's has been raising up the ranks of NFTs. And David, are points about to become liquid? I want to check in with you because you're covering this today. We're talking about the Eigen points maybe? Or what points are we talking about?

• 1:58David Hoffman?

  Yeah, I put out a satirical tweet a while ago saying, hey, guys, you know what we should do? We should tokenize points. And that is unironically what we are going to talk about later. That did happen. We have tokenized points. So we're going to get to all of this and more. But first, we're going to talk about SUI and the SUI Basecamp, which is an in-person conference in Paris during Paris Blockchain Week, April 10th through 11th. So if you are interested in a parallelized Layer 1 delegated proof-of-stake chain, the SUI Basecamp might be for you. There is a link in the show notes to get 20% off of your pass to the SUI Basecamp. This is the Move ecosystem for all the devs out there who enjoy Move.

• 2:41David Hoffman?

  SUI is like the spiritual successor to the whole Libra project, now turned into a Layer 1. And so, especially if you're a dev who's interested in parallelized, new VMs that are parallelized, there's a link in the show notes to get started.

• 2:54Ryan Sean Adams?

  Yeah, and that code is sui-bankless20. You get 20% off the standard prices there. And thanks to SUI for sponsoring this message for the Bankless Nation. David, you know what? We always, on the rollups, since the rollups have begun, we've always started with the number one asset by market cap, that is Bitcoin. We started every single week with Bitcoin first, then we go to Ethereum, then we go to the rest of the markets. This week, I think we got to do something different. I think we're going to switch things up, just celebrate ETH price hitting 3K for the first time since 2022. We got to start with Ethereum on the week.

• 3:30David Hoffman?

  You're really making a big deal out of this.

• 3:31Ryan Sean Adams?

  This is a big deal. I think it's a big deal. So tell us the ETH price. You don't think, wait, you don't think 3K is a big deal?

• 3:40David Hoffman?

  No, wake me up at 5K.

• 3:42Ryan Sean Adams?

  Are you serious?

• 3:43David Hoffman?

  Yeah, you know, we like round numbers, but I mean, yeah, the number's going up. We're all happy. I'm not making a big deal out of this. I'll make a big deal out of 5K.

• 3:51Ryan Sean Adams?

  Okay, well, then I'll take this one. Happy 3K, everyone.

• 3:55David Hoffman?

  Except for David.

• 3:58Ryan Sean Adams?

  Except for David, apparently, because he wants to wait for his celebration. I'm gonna give you some bull posts here, David, since you're not gonna do it for the Bankless Nation. Last time we hit 3K, here's why I think this is a big deal. Last time we hit 3K was April 2022. We sort of flirted with 3K for the beginning part of all of 2022. And we were sitting on a whole bunch of time bombs at the time that the crypto community didn't know about. Time bomb number one was the Terra collapse. It was right after April, we hit, the last time we hit 3K, Terra blew up and took markets with it. And then we had the death of Three Hours Capital. Then we had all of the BlockFi, Celsius, C5 failures. Then we had the Genesis fiasco.

• 4:43Ryan Sean Adams?

  Then we had the $10 billion FTX SBF fraud, okay? This time, the next time we hit 3K, which is now, hopefully it's where above at the time you're listening to this, we are sitting on a completely different foundation. None of those things are problems right now. Now, we might have other time bombs that we can't foresee, but it's so early in the cycle.

• 5:05David Hoffman?

  But those will happen later.

• 5:07Ryan Sean Adams?

  Those will happen later. Right now, we've got, we've got tailwinds. We've got L2 hyper acceleration, like just so many L2 chains going on. We've got another episode about L2s coming out on Monday. Restaking yields, okay? That's actually a narrative that is hitting Ethereum in a big way, ETH, the internet bond. We've got the ETH ETF. So I'm calling 3K as the floor this cycle, David. I think that this is a lower bound. And I think, like, of course, we'll bob around these numbers for a little bit, maybe in the weeks to come. But this is kind of the new floor, and it feels good. That's why I'm celebrating 3K, David.

• 5:46David Hoffman?

  I love that you're calling it the 3K floor when we are currently at $2,978.

• 5:52Ryan Sean Adams?

  It's still a floor. It's still gonna be a floor this cycle. Like, do you know what I mean? Like, if we, if we go up by, uh, you know, to 10K, to 12K, to something else, and we come back down, I don't think we're gonna fall below 3K.

• 6:04David Hoffman?

  You're gonna say, you're saying the, the bear market lows of next bear market will be above 3K?

• 6:10Ryan Sean Adams?

  I think so.

• 6:11David Hoffman?

  Yeah, I feel like that's a safe bet.

• 6:12Ryan Sean Adams?

  I mean, plus or, plus or minus, whatever, plus or minus 10%, 20%, something like that, but we're, we're in range. Uh, so, I don't know. I'm, I'm bullish. I'm sorry you didn't come in with the bullish vibes for Ethereum 3K. I was not prepared for that, David.

• 6:25David Hoffman?

  I'll come in, I'll, I'll do my, my service for this bullish podcast episode with a, with a Bitcoin price, cuz I'll just like regurgitate some of the bit, bullish Bitcoin observations from Nic Carter. First off, we're at 52, we started the week at $52,000 on the Bitcoin, down 1%. So ETH went up 6% this week. Uh, Bitcoin went down 1%, currently at $51,500. Uh, and then Nic Carter put out this tweet that I thought was, you know, a pretty nice summary of the current state of the Bitcoin landscape. It goes Bitcoin observations ranked by the most impactful to the least impactful. Number one, ETF flows are beyond the wildest dreams of even the most bullish analysts. Asset managers have barely activated their sales organizations. Hottest ETF launch in history.

• 7:07David Hoffman?

  I kinda talked about this last, uh, last week, but just like, this, the sales arm, the marketing arm of Bitcoin ETF salespeople hasn't even started. So, we still have like a sales force behind BTF, uh, the Bitcoin ETF incoming. The BitVM appears to be a fundamental step change in Bitcoin tech, enabling optimistic rollups without a soft work. Uh, explosion of VC dollars being allocated to Bitcoin startups and particularly Layer 2s. Ordinals and BRC 20 frenzies have, have created a hot ball of money with a Bitcoin meta, particularly in Asia. Uh, and then he has some, some like long tail stuff, finishing with, the halving is also a thing, I guess, he says. Uh, so these are all the reasons why Nic Carter is bullish on Bitcoin.

• 7:48Ryan Sean Adams?

  Yeah, I'll double down on the, the VC dollars flowing in. I have never seen so many. Bitcoin investable projects like layer two's in particular. It's an absolutely massive investment narrative right now. We did an episode actually with the Bitcoin Dave. So not you, David, but a literal Bitcoin Dave, who's very excited. David Seroyd, and he was talking about the BitVM project. So we put that out this week. If you guys want to get caught up on why people are excited about what's going on with Bitcoin. I think that's a great episode. David, let's talk about-

• 8:20David Hoffman?

  I also have an episode with Nic Carter coming out sometime soon, within ten days.

• 8:23Ryan Sean Adams?

  You guys talked about Bitcoin. It's Nic Carter, so I imagine you talked about Bitcoin a little bit.

• 8:27David Hoffman?

  Well, we talked actually about the Bitcoin civil war that's going on because all of the hot ball VC dollars that are going around Bitcoin are offending the other side of the Bitcoin cohort, which are the Bitcoin, like they call them the fix the filter camp because there's a part of the Bitcoin camp that wants to filter out all Bitcoin transactions that have arbitrary data in them.

• 8:47Ryan Sean Adams?

  Are you serious?

• 8:48David Hoffman?

  If it's not, if it's beyond just a normal BTC transfer, they don't want it in the men pool.

• 8:53Ryan Sean Adams?

  I thought all camps had something in like alignment and harmony and that is number go up. And so like this innovation, this building on Bitcoin, doesn't that help number go up use case? Can't everyone get behind that?

• 9:05David Hoffman?

  The fix the filter camp thinks that monetary maximalism is the best thing to have for Bitcoin. And if you put in arbitrary data into your Bitcoin transactions, you're diluting the monetariness of Bitcoin is their argument. It's a dumb argument. I'm just super dumb.

• 9:21Ryan Sean Adams?

  That's very silly. Okay. Well, interesting that that that that fight's still going on. Tell us about the ratio and then total crypto market cap. So ETH Bitcoin ratio, what are we at in the week?

• 9:31David Hoffman?

  0.0577 on the up and up in the last week or so, but still low, still low. I also am celebrating around 0.075.

• 9:40Ryan Sean Adams?

  Thanks to Kraken for all these charts as always. You can go check that out at Kraken Pro. How about total crypto market cap?

• 9:46David Hoffman?

  2.07. So we are making some big leaps in market cap. We're blowing millions of dollars on a week upwards. So you know, things are, things are starting to accelerate. You know, we're, we're almost, we hit the three trillion market cap at the peak of last cycle and we're above two right now.

• 10:04Ryan Sean Adams?

  So when are you, when are you going to celebrate the, the market cap? Are you going to wait for five trillion for that? You're going to celebrate at three?

• 10:10David Hoffman?

  Five.

• 10:11Ryan Sean Adams?

  Okay. Five is David's celebrate.

• 10:13David Hoffman?

  I'll note, I'll make a note at three and I will celebrate at five.

• 10:18Ryan Sean Adams?

  Uh, Layer 2 Beat. Let's do a quick Layer 2 update while we're talking about the numbers here. This is Layer 2 Beat. This is brought to you by Mantle, a new and up and coming L2 that we enjoy very much. Thanks to Mantle for sponsoring this segment. David, what are some numbers to look at for Layer 2s this week?

• 10:35David Hoffman?

  Yeah, we're pushing almost up to 10 million Ether locked in Layer 2s. One part, you know, thanks to Mantle and many of the other newer Layer 2s on the scene. Almost $30 billion on Layer 2s. And there's a bunch of more Layer 2s that are going to come on to mainnet sometime Q2, Q3, and they're going to be very different from the from the Layer 2s that we already know. Starknet is like kind of example of this, one that's like very technically differentiated. But then there's there's others like Eclipse and Phoenix and like Blast I'm starting to come around to and Scroll and Tycho. Congrats to Scroll, shout out to Scroll for crossing $100 million when their mainnet was only a few months ago. Congrats, guys. That's pretty cool.

• 11:17David Hoffman?

  And yeah, like all of these have tokens to drop. All of these have like incentives that they haven't even started with. Points to issue, if you will. And so like there's like so much pent up energy in the Layer 2 space, I think.

• 11:30Ryan Sean Adams?

  Speaking of tokens, David, then pent up energy, go to CoinGecko and sort by seven days.

• 11:37David Hoffman?

  The shitcoins on the move this week are insane, bro. Okay, so last week, Sora was released by ChatGPT and all of the internet like exploded about these like very realistic AI chat to video rendered.

• 11:51Ryan Sean Adams?

  Can we show that? Like, these are awesome. This is a this is a video of woolly mammoths. And this is, yeah, I was gonna say, obviously, it's not woolly mammoths do not exist. So this couldn't even be possible, but it looks realistic.

• 12:04David Hoffman?

  You need to say that woolly mammoths don't exist. This is a fake video. This is like the demo one, yeah.

• 12:10Ryan Sean Adams?

  A city somewhere in Asia. I mean, it just looks so real. This is what Sora can do.

• 12:16David Hoffman?

  And this is V1. So people people were comparing the video of Will Smith eating spaghetti, which was just like hilarious. It was like, yeah, it was chaotic. It was just, yeah, okay, here we go. Here's the comparison. And so these AI videos are just like blowing everyone's minds now realizing that like yo, if you're in like Hollywood, your job is threatened. If you're like a everyone's, everyone's who's like job is threatened is like freaking out right now. Meanwhile, non coincidentally, Nvidia stock is like larger than the Chinese stock market. And then what, how does that impact the crypto markets? Cause it does. World coin talked about the movers of the week, world coin, the AI associated token that is

• 12:58David Hoffman?

  associated with Sam Altman, up 180%, which is already a huge move. But the thing is, it is a fully diluted valuation of $86 billion.

• 13:07Ryan Sean Adams?

  Okay. I didn't see this one coming, but like, could world coin be the thing that goes and flippens?

• 13:12David Hoffman?

  Like, uh, Flippens Bitcoin by fully diluted, by fully diluted market cap?

• 13:16Ryan Sean Adams?

  Look, man, it's, it's number, it's just behind tether at this point. So it is the third largest chain in terms of fully diluted market cap right now.

• 13:26David Hoffman?

  Okay. Can you believe that? A lot of people say they fully diluted market cap is a meme and like it's, it's a valid perspective to have, but you also can't ignore it. The market cap of world coin is 1.1 billion. The fully diluted valuation is 86 billion. That is the largest discrepancy between market cap and fully diluted valuation that the crypto markets have ever seen. There is so much selling pressure coming to this thing.

• 13:51Ryan Sean Adams?

  Why? Who, who's buying this? Why in the world would it? Like, I guess you're not buying or holding. You're just trading the narrative here. You're just trading.

• 13:56David Hoffman?

  This is turning into a meme coin.

• 13:58Ryan Sean Adams?

  It's a Sam Altman meme coin, isn't it?

• 14:00David Hoffman?

  It's a, it's a Sam Altman meme coin. Yeah. And then the, the follow-ons on the other like movers of the week. Again, massive movers of the week. Singularity net AGIX cracked, cracked the 100, top 100 tokens, up 120%, $900 million market cap. Fetch AI up 60%. The graph, which I think somehow got categorized as like an AI token, up 60%. Render up 50%. Filecoin up 30%. Arweave up 27%. Falcon and Arweave are like data for AI. That's kind of the meme narrative here. And like, I'm not cherry picking here. These are literally top one through nine movers of the week are all AI coins. It's dumb. It's so dumb.

• 14:42Ryan Sean Adams?

  Big narrative trade energy right there. That's what's going on. But what's not dumb is Sora. That is so cool. By the way, you know this Will Smith thing? The second video is not a real video, by the way. I just point that out. Will Smith actually reenacted him doing the spaghetti thing. This is not AI-generated. The second one is not.

• 15:01David Hoffman?

  Oh my god, that's hilarious. That's really funny of him.

• 15:07Ryan Sean Adams?

  It's awesome. Anyway.

• 15:10David Hoffman?

  Wow.

• 15:10Ryan Sean Adams?

  He's trying to come back after the slap. You know, the slap incident.

• 15:13David Hoffman?

  Yeah, he's got a lot of debts to pay on that one.

• 15:16Ryan Sean Adams?

  Um, let's go to-

• 15:17David Hoffman?

  Don't slap people on live television, Biggie.

• 15:20Ryan Sean Adams?

  Let's go to the Bitcoin ETF news on the week. Actually, before we get into that, one correction we have to make for journalistic integrity, even though, David, you know, we're not journalists-

• 15:28David Hoffman?

  I'm writing this one on you.

• 15:29Ryan Sean Adams?

  This is my fault. I got a little excited about the Fidelity news last week. It is all true that Fidelity is including 1% of Bitcoin in some of its ETFs, upward to 3%. It's just only true for Canada.

• 15:45David Hoffman?

  Okay, so this was when we were talking about like the Fidelity 60/40 fixed income equity ETF portfolio that you could just buy and forget about. And there's a bunch of these portfolios. And we were talking about like, oh, and they're putting Bitcoin in them, which is true in Canada.

• 16:01Ryan Sean Adams?

  Yeah. All right. We've got the fidelity.ca. The Canadians got me there. So it's just Canada only.

• 16:06David Hoffman?

  Ryan sometimes forgets that Canada is not the United States.

• 16:09Ryan Sean Adams?

  It's a different place, right? Yeah, for me, it's just like one, one country, right? America's at it.

• 16:15David Hoffman?

  America's hat, yeah.

• 16:17Ryan Sean Adams?

  But let's check in on the Bitcoin ETFs in general. This is a chart from Hill Dobby. And did you know, David, right now Bitcoin ETFs, you include grayscale because it's converted ETF, 3.71% of Bitcoin's supply.

• 16:32Ryan Sean Adams?

  That's a lot. At some, at some point, I actually get a little bearish about that number. I don't know what, what like double digits, you get to 25% like Bitcoin and ETFs. I don't know about that. I don't know how I feel about that.

• 16:44David Hoffman?

  This was always the destination of Bitcoin, becoming a, becoming wrapped inside of an ETF.

• 16:50Ryan Sean Adams?

  And central banks, a central bank balance sheets, right?

• 16:54David Hoffman?

  Yeah, this is, this is what, um, uh, what's his face? Who's our friend who called it, uh, uh, Bitcoin jazz hands?

• 17:01Ryan Sean Adams?

  Oh, yeah. Uh, yeah. Ben, Ben Hunt, you talking about?

• 17:04David Hoffman?

  Ben Hunt, Ben Hunt. Yeah. It's like inside Bitcoin. This is like in the internal demand of Wall Street, pulling 3.7% of Bitcoins from becoming outside money to inside money. It's now outside Bitcoins, which is most Bitcoins. And now we have 3.71% of inside Bitcoins, inside the regulated Wall Street. Uh, Wall Street wants Bitcoins. Um, so this, this is always without like a strong DeFi system. Uh, this is the destination of where Bitcoin becomes the most capably efficient is inside ETF.

• 17:31Ryan Sean Adams?

  You're more into Bitcoin culture than, than I am, like, like at that level.

• 17:35David Hoffman?

  Which is funny because I own zero Bitcoin and you own Bitcoin.

• 17:38Ryan Sean Adams?

  Don't most sides of the Bitcoin spectrum, right? Like the, this, you know, the spectrum you named, the, the filters and, and the people who want to build on Bitcoin, they, they both see this as kind of a good thing, right? They want Bitcoin in the hands of central, like central bank balance sheet. That is the path to big, like Bitcoin, hyper Bitcoinization. It's all, it's all good. Who cares how much they own, right?

• 17:57David Hoffman?

  I think so. I think so. Um, there's probably some nuances there, but yeah, I think they both agree with that.

• 18:01Ryan Sean Adams?

  Well, anyway, it's going up and this is absorb Bitcoin supply. So if, over the last 14 days, the amount of Bitcoin that ETFs have consumed, if that perpetuates for the entire year, for a year, a year later, we would have about 9%, 9.1% Bitcoin supply in ETF. So, uh, Sailor's got a lot of catching up to do, David, if he's going to match these numbers.

• 18:25David Hoffman?

  No, yeah, no Sailor's getting left in the dust. Um, I mean, people will, I mean, people's like gut reactions will be like, oh, the size of BTC ETF flows are only, it's like all going to happen at the very start and then it's going to be down. Um, I wouldn't be so sure about that. I think we could sustain an equivalent, if not higher, level of flows. Especially, I want to, I think it's going to be really interesting post six months after approval, what these numbers kind of look like. So we've got five months left before we get that. I think we can see some more tailwinds around six months, especially, especially as number goes up and marketing around Bitcoin also goes up and FOMO on retail also goes up.

• 19:00Ryan Sean Adams?

  Here's what I kind of can't figure out is why in the world would you want to hold gold in an ETF when you can buy Bitcoin, right? Here's a tweet for Eric Balchunas. Speaking of killing the king, in the store of value category, the upstart Bitcoin ETFs is funny. Bitcoin ETF being an upstart. It is against gold and the Bitcoin ETFs have gained 8.5 billion on gold ETFs in organic growth. So, watch out gold? Is that what that means? I mean, 8.5 billion?

• 19:28David Hoffman?

  Bitcoin has lost 3.6 billion. Bitcoin has gained 8.5 billion.

• 19:34Ryan Sean Adams?

  Like, think about millennials, think about Gen Z, even like Gen Xers. You think they're buying gold relative to Bitcoin?

• 19:43David Hoffman?

  No. Who the hell is buying gold?

• 19:45Ryan Sean Adams?

  It's just a dumb metal. It's a dumb yellow metal.

• 19:48David Hoffman?

  It's legitimately a pet rock.

• 19:52Ryan Sean Adams?

  Anyway, we'll keep monitoring that. Coinbase had their earnings report last week. Some good news for the stock for sure. Do you want to give us the highlights?

• 20:00David Hoffman?

  Yeah, totally. So Coinbase just had a absolute stellar performance on their last quarter with a profit $273 million. It turns out, so they did a lot of operational cutting and they ended up saving a lot of money and they were still able to rake in a bunch more profit than what people expected. I think like the earnings per share came in way higher than expected. And so, yeah, they were able to reduce debt by $413 million, which we thoroughly enjoy. And then, yeah, their expected earnings per share was like 2 cents and it ended up being like a dollar or something like that. It was like crazy, crazy good. And then coin, the asset price surged by 15% in after hours and coin is pushing up against,

• 20:45David Hoffman?

  it's like $170 right now. It almost touched 200, but there's definitely some momentum around coin for sure. And Coinbase did something very, very cool, which is you could actually mint the earnings, Coinbase earnings as an NFT on base, which I totally did because that's super cool. Did you mint this, Ron?

• 21:04Ryan Sean Adams?

  I did, yeah. You told me about it, so I just went and I did it. I did it in Farcaster, actually. It was super easy.

• 21:09David Hoffman?

  I also did it in Farcaster. Yeah.

• 21:11Ryan Sean Adams?

  Yeah, it's very cool. What is the market cap of Coinbase now? Do you know that off the top of your head?

• 21:17David Hoffman?

  Let me look. In my Boomer Robin Hood app, the market cap of Coinbase is...

• 21:24David Hoffman?

  Forty point one billion dollars.

• 21:26Ryan Sean Adams?

  Forty billion. Okay, so I guess stack it is cheap about half, half a world coin then.

• 21:37Ryan Sean Adams?

  All right, well, let's talk about some more stocks that are up, speaking of like old school tokens here. Nvidia posts revenue of like they had a big quarter, basically, and Nvidia stock increased by how much?

• 21:50David Hoffman?

  Very high expectations.

• 21:52Ryan Sean Adams?

  Yeah, and they.

• 21:53David Hoffman?

  So there was twenty point six billion dollars in revenue was expected. That was what analysts were coming to consensus around. And they actually reported twenty two billion dollars, so beating by one and a half billion dollars. So earnings per share, four point six dollars expected. What they actually got is five point sixteen. Overall, the stock price went from six hundred and seventy. Ryan's laughing because I'm talking about boomer equity numbers. Stock price went from six hundred and seventy five dollars to seven hundred and forty dollars after hours. Total market cap of one point seven trillion dollars. Reminder, total crypto market cap, two point zero six billion dollars. Nvidia is not much behind the entire crypto market.

• 22:33Ryan Sean Adams?

  Nvidia is basically one crypto.

• 22:35David Hoffman?

  It's one crypto.

• 22:37Ryan Sean Adams?

  Pretty much the same. I was also laughing because of this meme. Do you see this? It's like Atlas holding this giant ball, the world on his shoulders, the entire global economy. And Nvidia is propping up right now. I think Nvidia has been a huge reason why S and P and all the stock indexes are up. Like that is the stock story right now.

• 22:55David Hoffman?

  You can see this story of the AI bubble starting to form. Like if you look left and right, like what AI, like AI crypto tokens are up, Nvidia is up, it's holding up the entire stock market. Nvidia is now the seventh most valuable asset in the world, the fourth largest publicly traded company. Gold, by the way, is the most valuable asset in the world. Bitcoin is 10th. Ethereum, 30th, behind Home Depot.

• 23:24Ryan Sean Adams?

  Yeah, Home Depot, that's probably the most embarrassing one. Also, Mastercard, I feel like JP Morgan Chase, once we flip in one of those big banks, that'll feel really good on the Ethereum side of things.

• 23:34David Hoffman?

  Ethereum ought to be higher than every single bank.

• 23:36Ryan Sean Adams?

  Look at this, you think Nvidia is going to flip Apple and Microsoft?

• 23:40David Hoffman?

  Let's see, Nvidia is $1.9 trillion, Apple is $2.8 trillion. If the AI bubble continues, for sure.

• 23:48Ryan Sean Adams?

  Microsoft has some of that tailwind though, right? With open AI investment and everything that they're doing with AI, they get some of that too. So we'll have to see. David, we're getting back to crypto when we come back. What do we got coming up?

• 24:01David Hoffman?

  Coming up next, we're going to talk about the Starknet token. Was it the largest airdrop in history? We're going to unpack some of the numbers. Pudgy Penguins continue to not lose, just racking in the dubs. And then Eigenlayer collects $100 million from A16Z. We're going to talk about all of this and more. But first, a moment to talk about some of these fantastic sponsors that make this show possible, especially Kraken. Where would we be without Kraken and their glorious charts guiding us through the weekly roll up every single week? Thank you so much, Kraken. Let's go hear from them right now. If you want a crypto trading experience backed by world-class security and award-winning support teams, then head over to Kraken, one of the longest-standing and most secure crypto platforms in the world. Kraken is on a journey to build a more accessible, inclusive, and fair financial system, making it simple and secure for everyone, everywhere, to trade crypto. Kraken's intuitive trading tools are designed to grow with you,

• 24:45David Hoffman?

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• 25:29David Hoffman?

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• 25:33David Hoffman?

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• 26:16David Hoffman?

  Arbitrum is the leading Ethereum scaling solution that is home to hundreds of decentralized applications. Arbitrum's technology allows you to interact with Ethereum at scale with low fees and faster transactions. Arbitrum has the leading DeFi ecosystem, strong infrastructure options, flourishing NFTs, and is quickly becoming the Web3 gaming hub. Explore the ecosystem at portal.arbitrum.io. Are you looking to permissionlessly launch your own Arbitrum Orbit chain? Arbitrum Orbit allows anyone to utilize Arbitrum's secure scaling technology to build your own Orbit chain, giving you access to interoperable, customizable permissions with dedicated throughput. Whether you're a developer, an enterprise, or a user, Arbitrum Orbit lets you take your project to new heights. All of these technologies leverage the security and decentralization of Ethereum.

• 27:00David Hoffman?

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• 27:10Ryan Sean Adams?

  The Starknet token is now live. We said it was coming, and here it is. The question in my mind, David, is: how big was this? Was this one of the largest, or the largest, airdrops in history? Let's get into it. Where should we start here, David?

• 27:25David Hoffman?

  728 million Starknet tokens out of 10 billion were airdropped to 1.3 million addresses. Over 400,000 wallets have already claimed. So we're going to see how many of those wallets are dead, but 400,000 wallets already breaks the number one spot in number of wallets.

• 27:43David Hoffman?

  Claiming Arbitrum used to be number one in that term. So when they were at 250,000 wallets, now the new high watermark is over 400,000 wallets. Depending on how you count the actual value being dropped, depending on the price that you put Starknet token at, Starknet, I think, does come in first. So Arbitrum dropped $1.5 billion to 250,000 wallets. If you count the Starknet token at current prices, it is equaling $1.5 billion. But it came in, the price of Stark token started at $3. And if you calculated that, then we're talking about like $2.5 billion. So I think Starknet now takes the number one, the high watermark for the largest airdrop in history.

• 28:27Ryan Sean Adams?

  Let's translate that into fully diluted valuation, kind of as a market cap. So it's like 10 billion total supply. So when you say $3, just multiply that by 10, we get 30 billion, basically, when it dropped. And right now-

• 28:38David Hoffman?

  At the moment of drop, but not, very few people actually discovered liquidity, sold their tokens at that valuation. So right now, we are coming in at $18 billion, fully diluted. And that would make our Starknet tied for first in value dropped to wallets. So it's somewhere between like the 2.5 to 1.5 million dollars dropped to wallets.

• 28:58Ryan Sean Adams?

  Of course, not much in terms of circulating supply. What do we have? Like, is it under 10%? Around 10%?

• 29:03David Hoffman?

  Yeah, it's like 7, 7% to 8% of the total supply of Starknet token is circulating, which is relatively low, relatively low.

• 29:11Ryan Sean Adams?

  But from a fully diluted valuation perspective, where does that stack up? I mean, let's take a quick look at that. So maybe comparing it, no, let's not compare it to WorldCoin. That would be sad. Let's compare it to some of the other Layer 2s. So Arbitrum is still a little bit ahead, at least at the time of recording, but they're kind of neck and neck. So Arbitrum is 18.5 billion, and then Starknet would be the second-

• 29:35David Hoffman?

  18.4, yeah.

• 29:36Ryan Sean Adams?

  -most valuable Layer 2 out there at 18.3. After that, you have to scroll a little bit down, and you see optimism at 15.7. And then keep scrolling. Am I missing anything? Matic. So that'd be Polygon at 9.7.

• 29:51David Hoffman?

  Matic is lagging the market so- So hard.

• 29:54Ryan Sean Adams?

  It really is right now. So what do you, what do you think? Do you think that like this is a rational valuation or like what's, what's your take on Starknet versus these other layer twos?

• 30:07David Hoffman?

  In terms of valuation, I'm going to like, people are like, kind of poking fun at Starknet for having such a low amount of total locked value inside of Starknet, saying like the, the amount of the total locked value in Starknet doesn't match the actual value, the fully diluted valuation. There's something like $110 million in value on side of Starknet. But like, you're kind of like judge, and you're like judging these things against like arbitrage or optimism. But that's not, that's not like the best way to compare these things because they, these are different roll up constructions that are meant to do different things. Starknet is really about like, a lot of compute, not necessarily a lot of DeFi. While they do want DeFi, they also want like, things like fully on-chain games. And fully on-chain games aren't really going to take in a lot of TVL. Anyways, it's like judging a fish how

• 30:52David Hoffman?

  to climb a tree. But like, at the same time, you still get to make that call. I will, I will like to check back in on the fully, the fully diluted valuation of Starknet after there is this unlock period for investors, which is coming very soon. In April, 13% of the total supply, $2.6 billion at current prices, is going to be unlocked to team investors.

• 31:16Ryan Sean Adams?

  An additional 13%.

• 31:17David Hoffman?

  An additional 13%.

• 31:19Ryan Sean Adams?

  So we've got like 7% unlocked right now, at least according to token unlocks.

• 31:23David Hoffman?

  So it's gonna, it's gonna jump to like 20%. And you, the Starknet people will say like, oh yeah, they're, these are long-term oriented investors. They just, they definitely want to help the network. I'm like, yeah, you guys gotta say that. Some people are up very, very bigly in paper gains. And when there are a lot of people up in paper gains, like, it's hard to not sell that.

• 31:43Ryan Sean Adams?

  Yeah. And like for any VC, which is, is what these unlocks are coming from, primarily VCs and teams, right? They gotta sell some portion of that, or else they're not being fiduciarily responsible to their, their LPs, I would say. So, yeah, you're right. We gotta get through that gauntlet. And when does that happen again, David?

• 32:00David Hoffman?

  Starts in April. Token dot unlocks dot app is a great place to check all token unlocks, especially as we progress through this bull market. And we are having a lot of high, fully diluted valuation, low float tokens come into the market. Definitely get into the practice of checking your unlock schedules. And there's a link in the show notes, token dot unlocks dot app in order to check your, your supply schedules.

• 32:23Ryan Sean Adams?

  Yeah, speaking of checking things, you gotta go, if you are a bankless citizen, you gotta be using the bankless app for this. So we did some analytics on our side. You know, we have our airdrop hunter project that basically shows you the quests in order to be potentially, hopefully eligible for airdrops. David, we had-

• 32:41David Hoffman?

  Our best guess for becoming eligible, yeah.

• 32:44Ryan Sean Adams?

  About 8,000 users of the bankless app using airdrop hunter in our claimables product were eligible for this drop. And so our citizens in particular, they received an average of $1,400 per individual. This is the time to go check out those quests. Add your address to the bankless claimables app. And actually, for our podcast listeners, David, to celebrate maybe the biggest airdrop that we have seen yet in crypto, we've got a code, PODCAST24, gets you 10% off a bankless citizenship subscription forever. There's a link in the show notes. Man, now's the time to be doing things on-chain and establishing-

• 33:25David Hoffman?

  This thing is supposed to pay for itself. It's the, we are designing this thing to pay for itself.

• 33:30Ryan Sean Adams?

  That's kinda working.

• 33:31David Hoffman?

  Some people got $1,400 on this one token drop.

• 33:34Ryan Sean Adams?

  You ready for the hard pivot, David? We're gonna move from token drops to penguin drops. All right. Pudgy Penguins, round two. Walmart just did a massive reorder of Pudgy Penguin NFT toys. What's going on here?

• 33:49David Hoffman?

  Yeah, so of course, Pudgy, the plushies of pudgies, got put into Walmart like half a year ago, six months ago, which was just a massive, just landmark thing for the NFT industry. And Walmart is doubling down. They're, they're doing again. They're putting in another order for more pudgies to go into more stores. 3,3100 Walmart stores across the United States. And of course, these are the same plushies as before. Now there's just even more of them. And a reminder, every single toy comes with access to Pudgy World, which is their on-chain gaming experience that they are building. And so these are just like thousands and thousands of people are buying like these first items and their first access onto Pudgy World, which is-

• 34:33David Hoffman?

  Built on ZK Sync is one of their like, um, their ZK Sync hypernet chains. And Walmart is saying like, oh yeah, we're ready to like double down on this relationship. We're gonna sell more of these things.

• 34:43Ryan Sean Adams?

  You know what's gonna be wild, David, is like, you could actually justify like airdrop questing, airdrop hunting by buying one of these plush toys. Because-

• 34:50David Hoffman?

  So like, people are, one of the reasons I think why they're selling out is because all these crypto degens are going and filling up their shopping carts with all these plushy toys.

• 34:57Ryan Sean Adams?

  Yes, because let's just, let's just connect the dots here, right? ZK Sync has not released a token, have they? And when you, each toy comes with a pudgy world on-chain experience NFT. Go do that, establish your on-chain profile for ZK Sync using pudgy, right? Will an airdrop happen as a result of this? I don't know, who knows, but go look at history, right?

• 35:19David Hoffman?

  Right.

• 35:20Ryan Sean Adams?

  Like, you could just, and you could imagine, I'm sure there's, I'm sure there are some crypto degens sort of playing this game. I'm sure there's also a lot of kids who just see a cute penguin, they buy a penguin.

• 35:31David Hoffman?

  Right.

• 35:32Ryan Sean Adams?

  And then they're gonna get a big tax liability at some point in time, can you imagine?

• 35:37Ryan Sean Adams?

  Buying a pudgy toy and you receive X amount of value in an airdrop.

• 35:41David Hoffman?

  I just love all of these like, uh, super young zoomers and then even the generation that's not even named yet, like the kids, like the elementary school, middle school kids who are like buying these plushies because they just want the stuffed animal and then they discover that there's this pudgy world thing and of course they're gonna go play it. And then they're just gonna like receive, I don't know, a couple thousand dollars from the ZK Sync airdrop. And then they go to their parents and their parents are gonna be like, what the shit is happening on the internet? What's going on?

• 36:10Ryan Sean Adams?

  Well, uh, that's just one possible future, who knows? Maybe, a lot of people are probably just buying it for the, for the cuteness here. Here's Luca standing in front of Walmart, we just, we had him on the podcast, we released that last week? Luca next to us.

• 36:22David Hoffman?

  Yeah, that episode's out, yeah.

• 36:24Ryan Sean Adams?

  Yeah, so, uh, there you go, you know what?

• 36:26David Hoffman?

  Absolutely, geez.

• 36:28Ryan Sean Adams?

  Yeah, uh, he's doing pretty well with his project. Pudgy briefly flipped the apes this week.

• 36:34David Hoffman?

  Oh, briefly, is it not over it?

• 36:37Ryan Sean Adams?

  I don't know, at the time of recording, this is, um, where should I go, NFT 4?

• 36:42David Hoffman?

  I got it, I'm looking at it. Oh, you're right. Yeah. Okay. So current price floor for Board Ape Yacht Club, 22 ETH. Pudgy, 19 and a half ETH. I, so they, okay, you're right. Pudgy's did briefly flip Board Ape, but they are not currently number three. I'm rooting for them. I'm rooting for them.

• 36:57Ryan Sean Adams?

  Yeah, you prefer the, you prefer the Penguins.

• 36:59David Hoffman?

  I prefer the Penguins. Yeah. I own neither, and I prefer the Penguins.

• 37:04Ryan Sean Adams?

  Yeah. You think the Penguins are coming for the Crypto Punks? Will you, will you be excited about that?

• 37:08David Hoffman?

  They're coming for their Crypto Punks.

• 37:11David Hoffman?

  That's what they would want.

• 37:12Ryan Sean Adams?

  So far unseated, so far unseated. Well, actually, you know, Apes flipped Punks last cycle, didn't they?

• 37:17David Hoffman?

  Apes were above Punks for like a year straight. Yeah.

• 37:20Ryan Sean Adams?

  Yeah. Punks are a bear market asset. You got a bunch of holders in the Punks community.

• 37:24David Hoffman?

  A high, high price floor. As soon, as soon as Ethereum becomes cool again, Punks are gonna moon.

• 37:29Ryan Sean Adams?

  All right, what's next?

• 37:30David Hoffman?

  Coming up next, the Athena mainnet drop. We're gonna talk all about that. The SEC gets sued. Circles going after Tether. Yuga Labs acquires proof and Eigenlayer points get tokenized, but not by Eigenlayer. We're gonna talk about all of this and more. But first, a moment to talk about some of these fantastic sponsors that make the show possible. Mantle, formerly known as BitDow, is the first DAO-led Web3 ecosystem, all built on top of Mantle's first core product, the Mantle network. A brand-new, high-performance Ethereum Layer 2 built using the OP stack, but uses Eigenlayer's data availability solution instead of the expensive Ethereum Layer 1. Not only does this reduce Mantle Network's gas fees by 80%, but it also reduces gas fee volatility, providing a more stable foundation for Mantle's applications. The Mantle Treasury is one of the biggest DAO-owned treasuries,

• 38:15David Hoffman?

  which is seeding an ecosystem of projects from all around the Web3 space for Mantle. Mantle already has sub-communities from around Web3 on-boarded, like Game7 for Web3 gaming and Bybit for TVL and liquidity and on-ramps. So if you want to build on the Mantle network, Mantle is offering a grants program that provides milestone-based funding to promising projects that help expand, secure, and decentralize Mantle. If you want to get started working with the first DAO-led Layer 2 ecosystem, check out Mantle at mantle.xyz and follow them on Twitter at @zeroxmantle. Are you launching a token? Is it already live? How are you managing the legal and tax obligations for providing token grants to your team? It's no secret that token management gets complicated. Between Learning all the legal language and tax obligations in every country that your team is in,

• 38:57David Hoffman?

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• 39:39David Hoffman?

  And with Opera MiniPay as one of the fastest-growing Web3 wallets, Cello is seeing a meteoric rise with over 300 million transactions and 1.5 million monthly active addresses. And now, Cello is looking to come home to Ethereum as a Layer 2. Optimism, Polygon, Matter Labs, and Arbitrum have all thrown their hats in the ring for the Cello Layer 2 to build upon their stacks. Why the competition? The Cello Layer 2 will bring huge advantages like a decentralized sequencer, off-chain data availability secured by Ethereum validators, and one-block finality. What does that all mean for you? With Cello Layer 2, gas fees will stay low, and you can even pay for gas natively using ERC20 tokens, sending crypto to phone numbers across wallets using social connect. But Cello is a community-governed protocol. This means that Cello needs you to weigh in and make your voice heard.

• 40:24David Hoffman?

  Join the conversation in the Cello forums. Follow Cello on Twitter and visit cello.org to shape the future of Ethereum. A16Z has invested $100 million into Eigenlayer. I guess it was a new fundraising round for Eigenlayer, which was a one-of-one by A16Z. Makes a ton of sense to me. And so, undisclosed valuation as to what Eigen Labs raised at. But to me, this makes a lot of sense, Ryan. A16Z's got a fantastic crypto research team. There's a lot of research left to be done about restaking and AVSs and what even all of the total products could be built on Eigenlayer. You know A16Z is kind of in it for the long run. And then I thought this was kind of cute in the actual article announcing this raise.

• 41:08David Hoffman?

  The definition of... Do you know what the definition of Eigen is? It's a German word.

• 41:12Ryan Sean Adams?

  I actually don't. What does Eigen mean?

• 41:14David Hoffman?

  So Eigenlayer means your own layer, as in like build your own layer. Build your own layer workshop. And so, you know, and then own as in like, yeah, exactly. And then own as in read, write, own. So I thought that was cute.

• 41:31David Hoffman?

  Anyways, like A16Z has just fantastic connections into like Silicon Valley, into the software as a service sector, into like Capitol, Capitol Hill and the political landscape and also Wall Street. This extremely legitimizing in Wall Street. And so I think this is their A16Z is like the perfect VC firm to take Eigenlayer's relationships and just like wait to the next level. I think this is like Eigenlayer is like swinging for the fences. I think they're going big. They're going for as big as they can get, which makes sense because they are doing something. They are exploring a frontier that is brand new to all of crypto and actually allows crypto to escape beyond some of its like internal infrastructure stuff.

• 42:11Ryan Sean Adams?

  How much ETH is in Eigenlayer right now?

• 42:12David Hoffman?

  Eight point something billion dollars.

• 42:14Ryan Sean Adams?

  Eight point something billion dollars. So what would that be like? Would that be like close to two to three million in terms of supply? I was just, we were ETH supply?

• 42:23David Hoffman?

  Oh, ETH supply? I don't know.

• 42:25Ryan Sean Adams?

  I mean, we're just looking at layer twos. Layer twos have 10 billion ETH supply.

• 42:30David Hoffman?

  7.8 billion in Eigenlayer, 7.8 billion. And then what is that in ETH terms? Approaching three.

• 42:37Ryan Sean Adams?

  I mean, that, that, that would be quite the flippanting if at some point in time, the amount of ether in terms of supply or like value, whatever, dollar value flips the amount of ether in layer twos. That'd be very interesting.

• 42:52Ryan Sean Adams?

  Not saying it could happen, but.

• 42:53David Hoffman?

  Well, like Eigenlayer will be able to actually increase the productivity and the utility of layer twos. So there's going to be some symbiosis here because you're going to be able to take like Eigenlayer LST tokens. Renzo actually announced this last week that you can mint easy ETH, the Renzo liquid resaking ether token. You can mint it natively on layer twos. And so that will actually count for both ether in Eigenlayer and on layer twos.

• 43:20Ryan Sean Adams?

  Well, people are going crazy for Eigenpoints right now, including, I guess, A16Z through their purchase. But Kelp Dow is doing something interesting. They are issuing synthetic Eigenpoints, introducing CAP, which is Kelp-earned points. What is this?

• 43:37David Hoffman?

  Basically, it is a claim on an Eigenpoint that Kelp Dow is earning from all of their ETH deposited into Eigenlayer. So basically, they have tokenized Eigenlayer points that they have in their, like, quote-unquote "treasury." And so now, like, restakers will be able to transfer and trade their earned points as tokens on Ethereum. I cannot believe they just tokenized points.

• 44:00Ryan Sean Adams?

  Well, but it's interesting because they are definitely not in control over, like, the minting of points or the supply of points or anything to do with points.

• 44:07David Hoffman?

  There's no settlement assurances. There's no property rights around points. So in theory, Eigenlayer would be like, "We're yanking your guys' points." Like, there's technically nothing stopping Eigenlayer from doing that.

• 44:16Ryan Sean Adams?

  Right. They could basically say, "Hey, anyone who, like, anyone with CAP just doesn't get points, right? If they wanted to."

• 44:24David Hoffman?

  Yeah, yeah. There's nothing, there's, I mean, yeah, points are not, if you're, listen to our points episode, points are not a smart contract. There's no contract about points. They are a number in a database that can be changed at will by the issuing entity. So Kelp is just like taking a gamble that Eigenlayer is not going to, like, mess with their points.

• 44:45Ryan Sean Adams?

  A good old-fashioned social contract. We'll see how that works out. Athena Mainnet. What is Athena, David? I have not been following this.

• 44:53David Hoffman?

  Athena is a new stablecoin, a USDE stablecoin that is created via this pretty novel mechanism. It is created via yield on two sides of a trade. One is the yield of stake to ETH, and then the other is the yield of funding rates from people who are paying to go short Ether in a leveraged fashion. So you slap these two yields together. You can earn them at the same time. And then this trade kind of trades out. So it's a delta-neutral hedging trade that produces yield as a result. If I was better at DeFi, I would have a better way to explain that. But basically, this is how this works. We should probably do a show on this. It's generating some hype for sure.

• 45:35David Hoffman?

  And it's also generating some controversy just because like there's a lot of yield that is being advertised here like over 20%. And that is like triggering people's PTSD from Terra Luna.

• 45:46Ryan Sean Adams?

  Yield on what? On like a dollar, right? So this is a, it's, what they're producing here is an ether based synthetic dollar that's offering like 27% APY. All right. And when you see a dollar representation that's offering like close to 30% APY, you immediately go back to how is that possible? Where's the yield coming from?

• 46:07David Hoffman?

  Anchor protocol on Terra Luna.

• 46:09Ryan Sean Adams?

  Another algo stablecoin. Yeah. People, people get freaked out about this, but it's generating the yield in a different way. How would you describe it?

• 46:17David Hoffman?

  Well, kind of what I said. So you have the yield of stake to ETH from Lido stake to ETH. And then you also have the yield from funding rates that people are paying to short ether. And you get both of these things. And the actual mechanism for how that flows into the dollar, I'm not totally sure. I need to brush up on this. But like it checks out. It does check out. There are plenty of risks in this system. There's a bunch of dependencies. This, a lot of this capital is on centralized exchanges. And so that's a risk. This is not a decentralized stablecoin. It is a stablecoin, it's not decentralized. It's a pretty cool experiment. And this experiment just hit main net. And now that's kind of like what the news is. And everyone's kind of reacting to it. Yeah.

• 46:58Ryan Sean Adams?

  I think we do not have time to explore all of the risks or get into that today, certainly. But there'll be some links in the show notes and then maybe expect an upcoming bankless podcast in this, in this category.

• 47:10David Hoffman?

  Oh, are we committing to that?

• 47:11Ryan Sean Adams?

  I think we should. I, I, finding it, this is a new source of yield. We gotta find out.

• 47:15David Hoffman?

  This is how we invite people onto the bankless podcast. We say we're going to do a podcast about them.

• 47:21Ryan Sean Adams?

  This is Anthony Sisana, who has backed this project, I assume is an angel investor. He said, "I'm glad, I'm very glad to see lots of people questioning Athena's design and asking how they can offer the 20% plus yield and also exploring what all of the risks are. This is very different to last cycle where people questioning things were the minority." So he's just making, making the point that it's good that people are asking this question.

• 47:44David Hoffman?

  It's healthy. It's healthy. Well done. Well done. If you're skeptical, well done. Good job. You did a good job. Thank you. Thank you. You're all becoming more mature. This is great.

• 47:54Ryan Sean Adams?

  Yeah. Yeah. No one's encouraging you to ape into this. You definitely have to understand it first. David, this was big news in the NFT sphere. So Yuga Labs acquired Kevin Rose's project, Proof, and all of the owls that go with it. What happened here?

• 48:09David Hoffman?

  So all of the IP, the Proof Collective, the Moonbirds, the Oddities, Mythics and Grails, all of the things owned by Proof is now owned by Yuga Labs. And so there's being, there's a handover period and Kevin Rose will now become an advisor to the Proof company. And so basically handing over control of all of Proof's assets over to Yuga Labs, which Yuga Labs has done, done this before. They acquired the MiBits and CryptoPunks IP and I think something else as well. But yeah, this is definitely inside of the Yuga Labs like business model.

• 48:43Ryan Sean Adams?

  How did the, how did the punks, like, was that a good thing for CryptoPunks overall? Would you say?

• 48:47David Hoffman?

  No change in price. No change in price.

• 48:50Ryan Sean Adams?

  No change in price? Any change in kind of culture or utility or did they do anything?

• 48:53David Hoffman?

  No, there is, there is no way to harness CryptoPunk culture. We are, we're a decentralized cohort of holders.

• 48:59Ryan Sean Adams?

  I, I think the price of Moonbirds, the price of Moonbirds went up after this.

• 49:04David Hoffman?

  Yeah. And then it went down. Then it went down. I think, I think it's overall unchanged. No, just kidding. I'm wrong. It went from one ETH to two ETH. So Moonbirds doubled actually in valuation.

• 49:15Ryan Sean Adams?

  But down from all time highs significantly, right? And I think-

• 49:19David Hoffman?

  Turns out the mint price was 2.5 ETH. So below the mint price.

• 49:23Ryan Sean Adams?

  Below the mint price. And then Moonbirds absolutely skyrocketed. So there's been a lot of negative reaction in the, in the NFT community and even in the Moonbirds community. Here's a tweet thread from Adam Hollander saying, "I effing hate this," saying that Moonbirds was mismanaged. It was a mess and they didn't follow through on their promises. So a lot of-

• 49:46David Hoffman?

  Wouldn't you be a fan of new management then?

• 49:49Ryan Sean Adams?

  I don't know. It depends what Moonbird does with it.

• 49:52David Hoffman?

  As a cohort, Moonbird holders as a cohort have been dissatisfied. I think maybe there was like very high expectations with how high Moonbird's price went, but like the vibe is like people are dissatisfied, but then we're getting new management. So like, don't we want that?

• 50:07Ryan Sean Adams?

  I don't know. I mean, it depends what the new management does with it. If they do what Luca did with the Penguins, that would be incredible. If they don't.

• 50:14David Hoffman?

  I'd actually rather have Luca buy them.

• 50:18Ryan Sean Adams?

  Oh, I think Luca's got his handful, a handful with, with his Penguin community.

• 50:24David Hoffman?

  One last airdrop to talk about optimism, the fourth optimism airdrop. This one's for $37 million. This was announced on February 21st. Optimism Collective recently announced its fourth airdrop specifically targeting artists and creators in the optimism ecosystem. 223,000 addresses with eligibility criteria based on engagement and creativity of artists. Anyone who deployed NFT contracts on the Ethereum Layer One at Base, OP Mainnet, and Zora before January 10th, and I think perhaps also interacted with the same NFT contracts. And so this actually might be a sneaky one. We, Bankless, we, because we have, we minted some NFTs, some podcast NFTs. We got like, how much money did we get? We got like 700 or maybe 1,200 dollars from this. Had

• 51:09David Hoffman?

  no idea without our own claimables product. So thank you. Thank you, Bankless Claimables, for making sure that we actually know our own airdrops, and that goes for you as well. So make sure that you are plugging in your addresses, just in case you got this optimism airdrop.

• 51:23Ryan Sean Adams?

  You just want to get an alert because these are like, these are like perpetual airdrops, right? It's like, and I think many, many Layer 2s and many airdrop like kind of communities of tokens will continue to do this. And so sometimes you just don't know. You got a, you got a present, you know, you got something in your ETH address. David, let's talk about the people versus the SEC.

• 51:44David Hoffman?

  So I love these words.

• 51:46Ryan Sean Adams?

  The crypto lawyers were pretty excited about this last week. What, what happened?

• 51:51David Hoffman?

  So there is a crypto exchange called Legit Exchange, which is suing the SEC, I think, preemptively, trying to ensure that All future tokens that they list and trade on their exchange will not be sales of securities. So they intend to facilitate the sale of crypto assets, the exchange of crypto assets on their exchange. And they are making, they are asking a court to order that the secondary market sales of digital assets are not the sales of securities. And also declare that Legit Exchange does not need to register with the SEC as an exchange broker or clearinghouse. And will also thirdly, prevent the SEC from bringing an enforcement action against Legit Exchange

• 52:31David Hoffman?

  and similarly situated CFAT members, basically saying, hey, SEC, we saw what you've done to Coinbase. We've saw what you've done to Kraken. We are going to get a court to declare that what we are doing is Gucci and you guys cannot sue us.

• 52:47Ryan Sean Adams?

  This is what you call, this is a preemptive strike, right? We're gonna sue you before you sue us, right? This is Amanda, it goes on, to be clear, this is the first time that a crypto market participant has proactively sued the SEC. We are now suing the SEC.

• 53:03David Hoffman?

  I love it.

• 53:03Ryan Sean Adams?

  Which is, and we, I mean the crypto community, not David and myself, although we would if we could.

• 53:07David Hoffman?

  We would.

• 53:08Ryan Sean Adams?

  Their project.

• 53:09David Hoffman?

  Give me a reason.

• 53:10Ryan Sean Adams?

  And pre anything by the SEC. Plaintiff are not looking for money. They're not looking for money, David, or any reward.

• 53:16David Hoffman?

  They're looking for a statement.

• 53:17Ryan Sean Adams?

  Legal clarity. Like, can we run this business? Because it seems like we should, but in the law, and so they're, they're asking the court to, to give them clarity here. I actually, like, this is Jake Trivinsky's take on it. Crypto goes on the offensive in the courts. That's why it's a big deal. This lawsuit proactively challenges the SEC's unlawful attempt to seize power over digital asset markets that has no authority to regulate. David, I had no idea. We could just go sue the SEC. That's great news. And so I asked all the crypto lawyers on crypto Twitter, like, how about we just launch a class action lawsuit against the SEC on behalf of American citizens in retails for the millions of dollars in missed token airdrops that we didn't get because we live in America?

• 54:00David Hoffman?

  Billions, billions.

• 54:01Ryan Sean Adams?

  Billions. Did I say millions?

• 54:03David Hoffman?

  To have claimed my Celestia tokens, Gary, but I did not. I don't have any Celestia tokens. Because of Gary Gensler.

• 54:10Ryan Sean Adams?

  Right. So I tweeted this out and I asked, hey, is that a dumb idea crypto lawyers? Is this like possible? And a whole bunch of Twitter responses were like, yeah, I'd join that class action lawsuit. I

• 54:21David Hoffman?

  I would join that class.

• 54:22Ryan Sean Adams?

  Make money on D Y D X.

• 54:23David Hoffman?

  Yes.

• 54:23Ryan Sean Adams?

  I missed Starknet.

• 54:24David Hoffman?

  D Y D X tokens, Celestia tokens.

• 54:25Ryan Sean Adams?

  Tia, I missed all of these things. It probably cost me tens of thousands, if not hundreds of thousands of dollars. I would jump in.

• 54:32David Hoffman?

  Can we bankrupt the S E C?

• 54:33Ryan Sean Adams?

  I would, I would love to, right?

• 54:35David Hoffman?

  I would love that.

• 54:36Ryan Sean Adams?

  Okay. Well, apparently Jake Trivinsky says, not your lawyer. Here's the thing, they have this thing called sovereign immunity, David, which is if you are a government regulator, you're kind of, you have sovereign immunity. It's your, it's your trump card. So we're not able to involve them in a civil case like, like this, unfortunately.

• 54:55David Hoffman?

  Oh, great. You got my hopes up. What the shit is this?

• 55:00Ryan Sean Adams?

  He said, there's still a chance though, David. He, Jake Trivinsky, again, not your lawyer is not legal advice. I'm sure he'd want us to say that, but you'd have to talk to your own lawyer to analyze whether this is possible. I'd like to think the legal system would find a way to deliver justice in a case like this, but the principles of equity only go so far. T L D R probably don't. That's probably not a good idea, unfortunately.

• 55:22David Hoffman?

  Damn it. Damn it.

• 55:24Ryan Sean Adams?

  I know.

• 55:24David Hoffman?

  Well, that was a fun, fun little segment then.

• 55:26Ryan Sean Adams?

  We tried though.

• 55:27David Hoffman?

  I got something else that's pretty fun.

• 55:29Ryan Sean Adams?

  Yeah, go for it.

• 55:31David Hoffman?

  Where in the world is Do Kwon? Do you remember?

• 55:34Ryan Sean Adams?

  Last I checked, it was Montenegro and then back to South Korea. Am I remembering this correctly? Wasn't he in South Korea?

• 55:40David Hoffman?

  So, South Korea and the United States have been fighting over Do Kwon for extradition.

• 55:46Ryan Sean Adams?

  Oh, they both want him.

• 55:47David Hoffman?

  They both, we both want him because he's a South Korean citizen, also an American, American citizen, maybe, but mainly hurt a lot of American investors.

• 55:54Ryan Sean Adams?

  So he lived in America.

• 55:56David Hoffman?

  I thought Stanford. I think he went to Stanford.

• 55:57Ryan Sean Adams?

  One of those, one of those.

• 55:58David Hoffman?

  Yeah. Anyways, he is going to be extradited to the United States. It's about damn time. He has been in Montenegro since his arrest in March of 2023. And so he's coming home. Do Kwon, coming home on shore.

• 56:15Ryan Sean Adams?

  Wow. What's gonna happen? I, I, I mean, will this be an SBF style court case? Are we in for something like that? It won't be as big a deal, I'm sure. They won't have the immediate fanfare, but...

• 56:27David Hoffman?

  There's less like dirt to like dig up. And yeah, but like I would love to see some of the internal conversations inside of like the Terra Luna Slack, for example, or whatever they used.

• 56:38Ryan Sean Adams?

  You know, one of my reactions to this is if, if the US wants you, like the US is the, is the boss of global finance. If they want you for financial crimes, they always get you.

• 56:49David Hoffman?

  They get you.

• 56:50Ryan Sean Adams?

  Right? Like people are extradited from all over the world. Outside, maybe if you live like Russia and China, there's no such thing as jurisdictions. It's just the US.

• 57:02David Hoffman?

  Can I bring up something that's like, can I bring up something that's actually pretty adjacent to this, but still relevant?

• 57:07Ryan Sean Adams?

  Yeah.

• 57:07David Hoffman?

  I think this is worthwhile to know. This is, this is a very big deviation side quest. Did you know that China sold AI technology to Iran? And Iran has extradited a German Iranian citizen using AI facial recognition technology to find him. And they extradited him from Germany to Iran and is going to be executed in Iran.

• 57:33Ryan Sean Adams?

  Wait, are you serious? Wait, so I lost the, the train here. So there's China, there's a German citizen and Iran.

• 57:38David Hoffman?

  Okay, so China, China AI technology purchased by Iran. Iran uses that AI technology to identify a German Iranian dual citizen living in Germany. That German citizen has been extradited to Iran and is set to be executed.

• 57:55Ryan Sean Adams?

  Why? What did this, what did this German citizen do? What are the charges?

• 57:59David Hoffman?

  Crimes against the Islamic Republic of Iran.

• 58:02Ryan Sean Adams?

  Oh, wow. So are you?

• 58:04David Hoffman?

  I, I thought.

• 58:05Ryan Sean Adams?

  Who's liable for that? Why, why, why? Yeah, what made you think of this?

• 58:09David Hoffman?

  So like AI is like being talked about all over the place. We had Vitalik on to talk about like defensive accelerationism and how like AI can be used in a very offensive capacity. And then we're just seeing like, like, you know, AI is starting to become like. I thought I thought this was far more theoretical.

• 58:28Ryan Sean Adams?

  Yeah.

• 58:28David Hoffman?

  And I definitely appreciate Vitalik's foresight here. Had no idea that this was actually already being done in practice.

• 58:34Ryan Sean Adams?

  This is, this is the reason that these power structures are kind of important. And like impressed upon me is like, the reason we are fighting so hard in the US is because the US is really important because they're like the mob boss of global finance. All right. So like, where do you, where do you go? If like, do I, I'm not going to China. I'm not, I'm not going to Russia. Do I go somewhere in Europe? Well, like, that's under the arm of the US financial powers as well.

• 59:02David Hoffman?

  Yeah.

• 59:02Ryan Sean Adams?

  That's why it's so important to like,

• 59:04David Hoffman?

  Right.

• 59:04Ryan Sean Adams?

  Fight it where we are.

• 59:06David Hoffman?

  There's also been like this balkanization going on inside of Web three. Like Circle is now no longer issuing US EC on Tron. We're going to talk about tether and Circle here in a second, but just like this fears of influence are like becoming firmer. And they are permeating through Web three. And AI is helping accelerate that.

• 59:27Ryan Sean Adams?

  Let's get right to that story. So this actually surprised me this week. This is Circles, one of Circles VP's of Policy, Caroline Hill. The caption from this, this tweet is really begging to Congress for the Treasury Department to go after Tether. And their banking partner, this is a US-based banking partner, Cantor Fitzgerald. So this is Caroline Hill in front of Congress that this week. Let's, let's, let's play the clips.

• 59:51David Hoffman?

  This is, this is Circle in front of Congress.

• 59:54Speaker 02

  I personally believe that no company should be allowed to reference the US dollar without having those democratic values inside, inside the company, inside their US dollar backed stablecoin. And so I think if Treasury thinks that it needs additional authorities to go over that, then I think this committee should consider that.

• 1:00:12Speaker 03

  So to those US touchpoints, US financial services company Cantor Fitzgerald reportedly manages Tether's $72 billion portfolio of Treasury bonds, giving him access to US dollars. Cantor's enabling of terror and illicit activities across the globe is unacceptable. Ms. Hill, given Tether's nexus to the US financial system through Cantor Fitzgerald, does Treasury already have the authority to take action? And what should we be doing about American regulated companies like Cantor?

• 1:00:44Speaker 02

  I would think that the Treasury Department would have the authority to take action, given this US touch point, yes. And I hope that they're looking at this seriously, given Tether's reputation, as well as the data that we've seen, that they're contributing to terrorist financing.

• 1:00:59Ryan Sean Adams?

  Okay, so let's unpack that a little bit. So this is somebody who works for Circle, of course. So this is USDC, and they're in front of Congress. And there was somebody from Coinbase as well there. I don't know what the Coinbase representative said, but sort of corroborated some of the things that Circle said. And they basically are advocating that Treasury, US Treasury, go after Cantor Fitzgerald, which is one of the brokerages that hold Tether's T-bills, essentially, because they are saying that Tether is not compliant with AML KYC, right? They're not compliant with kind of the regulations. Now, that is quite the charge, because Tether...

• 1:01:42David Hoffman?

  Quite the charge.

• 1:01:43Ryan Sean Adams?

  David, you weren't on the episode because you were on a flight on your way to East Denver, I believe. But I talked to Tether CEO Paulo about this, and I brought up this commentary. And his perspective was, we are fully compliant, we freeze addresses all of the time, we like mint funds...

• 1:02:02David Hoffman?

  Not only do they freeze addresses, but they freeze addresses quickly. There are more blacklisted Tether addresses than there are Circle addresses.

• 1:02:10Ryan Sean Adams?

  Right. He's like, that you were like, we work directly with financial surveillance authorities, like, you know, the full posse of everybody's looking at this, like Chain alysis, and also the FBI. And so he's like, they are maligning us because they're trying to cut us out. This is... He says that this is a form of kind of regulatory capture, right?

• 1:02:32David Hoffman?

  Oh, this is 100% regulatory capture. This is the game that Circle has been playing, like, for better or for worse. They're compliant onshore, Circle, stablecoin, and they're trying to, like, brand Tether as the uncompliant offshore. They are offshore. They are totally compliant, by as far as I can tell. Two comments here below this video, one from Zach XPT saying Treasury Department should investigate Circle for all the times they did not blacklist illicit funds when they had ample time instead of LARPing as the compliant centralized stablecoin. And then also Bantag saying disgraceful, she just mad Tether blocks stolen funds within 10 minutes while her company replies a week after they've been laundered dry.

• 1:03:13David Hoffman?

  Yow, some zingers coming in from crypto Twitter. This is 100% a narrative game that I'm not sure stands up.

• 1:03:21Ryan Sean Adams?

  Yeah, I don't love regulatory capture attempts and that's what this this kind of seems like. I hope USDC and Tether kind of fight it out in like the free market way. But it looks like they're going here, you know, the stablecoin wars are continuing for sure. Oh, related to that, by the way, I don't. It doesn't, I don't, it's not clear that it's related. It seems related to me. Circle says we are discontinuing USDC support on Tron, the Tron blockchain. So you know, there was about $300 million worth of USDC on Tron. So a very small amount compared to Tether, 51 billion Tether on Tron. So I asked Paulo about this and he said, yeah, they're leaving because they lost. That was his take on it.

• 1:04:05David Hoffman?

  This is more like a virtue signal than than anything. So yeah, there's not that much circle. And also they are saying they're implying that there's a bunch of nefarious activity on Tron, so they can't be there. They're trying to make it out as a branding win.

• 1:04:17Ryan Sean Adams?

  That's why it feels like it's it's kind of related because Tron is like, and Tether are like in sort of the, you know, the evil axis, the sketchy. And like, maybe they are, maybe they're not. It's just like, these are the kinds of games that are being played at this stage in the market.

• 1:04:31David Hoffman?

  These are the kind of dirty games. I don't like it.

• 1:04:34Ryan Sean Adams?

  All right. Well, let's get to raises on the week. This is a Bankless Ventures company that raised this week. So David and I, obviously we think it's cool. We're adding it to our disclosures page. It's called Enit Capital. What is Enit Capital, David?

• 1:04:47David Hoffman?

  Yeah, and it is a money market on top of the mantle layer two. You know, Uniswap V4 hooks, where you have the base Uniswap liquidity and then you have hooks for expressiveness on top of that. Take that same pattern and think of in it as like Compound or AVE with liquidity hooks on top of in it. So more expressiveness on top of capital. So you have this base level of capital inside of the in it money market. And then people can build hooks to add more, you know, apps on top of the in it money market. And so like, what could a hook do? You could do leveraged staking, you could do LST looping, you could do pair trading, margin trading. And so think of just like, you know, a base AVE compound platform, money market, and then just like apps,

• 1:05:31David Hoffman?

  like maybe urine strategies, for example, or just any kind of app that can be built on top of in it. Pretty cool, pretty cool innovation. We like the team. Congrats on the raise.

• 1:05:40Ryan Sean Adams?

  David, last thing before we get to the meme of the week. I don't know if you saw this, the Reddit plan.

• 1:05:46David Hoffman?

  Oh, oh, this is dad time. I'm getting ready.

• 1:05:48Ryan Sean Adams?

  Oh, it's well, it was cool. Okay. So this was an agenda, but I added it. Not too dad, it's not too dad, but it's kind of like, I thought it was interesting. So here's why. So Reddit is getting ready to IPO. I know you're a Reddit user. I've been a Reddit user in the past.

• 1:06:01David Hoffman?

  Former Reddit user.

• 1:06:02Ryan Sean Adams?

  Yeah, I use it a lot less now. Now I'm more of a kind of a consumer. They're going public. Okay. And this was big news in TradFi this week, so outside of crypto. Basically Reddit is planning to reserve a yet undetermined number of shares for 75,000 of its most prolific so-called redditors. Those are the content creators, the mods, you know, the people that really power Reddit. And they're going to reserve 75,000 shares. At first I thought, oh, well, that sounds like an airdrop. When you look into it, what they're actually reserving, it's more like an allow list, David. They're allowing the first, the 75,000, like recipients of like Reddit points, let's call it maybe.

• 1:06:45Ryan Sean Adams?

  They are allowed to purchase the IPO at the IPO price. That's basically it. And it's interesting to me, like, first of all, I guess, good on Reddit for doing something, getting off. Zero. I mean, Facebook, like Twitter, none of these companies have actually rewarded the content creators in their network in any way. And so at least some allow list participation, that's something. Of course, Reddit users, if they buy the IPO and stock price goes down, they could lose. The 75,000 could certainly lose. It's costing money. They could win if it goes up after the IPO price. But wow, imagine trying this in crypto, right?

• 1:07:24Ryan Sean Adams?

  In crypto, like users are demanding airdrops. If, if, if we are working inside of a network and the network does not provide rewards for the work that we are doing, whether it's an Ethereum staker, or whether you're contributing to like a network as a, as a user or a content creator, we'll just leave. We'll go to the network that does give us that. And so what I think is going to be interesting to observe over the next, you know, three to five years, let's say, is I think crypto is really going to move the social overton window of like requiring some of these established web two companies to give to their main users, their content creators, basically like the journalists, you know, and the curators who make it all possible. They'll have to move in that

• 1:08:09Ryan Sean Adams?

  direction because I think those creators, those users will start to demand upside and crypto will be a forcing function to that. So sometimes I see the, you know, outstretched hand of gimme airdrop. We talked a little bit about that. And sometimes I see entitlement and that's true. There are some entitled people who just want airdrops for doing nothing. On the other hand, another way to reframe that is at least we're pushing the overton window towards forcing companies like social network companies.

• 1:08:34David Hoffman?

  Distribution towards the long tail.

• 1:08:36Ryan Sean Adams?

  That's right. That's right. So that was the take here. And like, kind of a crappy airdrop, though. It's just a lot.

• 1:08:42David Hoffman?

  I wonder how much of this is constrained by, by just regulations?

• 1:08:48Ryan Sean Adams?

  Ton of it.

• 1:08:48David Hoffman?

  Can they actually just give away equity? Probably not. They probably can't do that.

• 1:08:53Ryan Sean Adams?

  You're right, David. I'm sure you're right.

• 1:08:55David Hoffman?

  This is not, this is not that I'm just like, oh, well, allow like our redditors to buy our bags. No, like, I don't think the SEC will allow them to do anything more creative than that.

• 1:09:03Ryan Sean Adams?

  Yeah. And that's why we have to put you push on this on the technology side too, and push on the regulatory side. David, we've got a meme of the week. What are we looking at this

• 1:09:12David Hoffman?

  This is our meme and so I actually don't know. I think maybe our graphic designer at Bankless made this. Coming to a Walmart near you. We have two action figures. Male Crypto Podcaster, this one's me, and here's Ryan, Ethereum Podcaster. I got Crypto Podcaster, you got Ethereum Podcaster. Highly detailed. Look at your jawline, bro. That's a good looking jawline.

• 1:09:33Ryan Sean Adams?

  That is not real life for sure.

• 1:09:34David Hoffman?

  You're looking like Superman. I look like Ken. You look like Superman.

• 1:09:38Ryan Sean Adams?

  Well, Walmart's a good place for these, David, so move aside, penguins. We're gonna be there too. Gotta end with this, of course. You can find all of our disclosures at bankless.com/disclosures at any time and risks and disclaimers. You know crypto is risky. You could lose what you put in, but we are headed west. This is frontier. Not for everyone, but we're glad you're with us on the Bankless journey. Thanks a lot.