TLDR CRYPTO 2024-05-08

GARY GENSLER SAYS IT'S OUR FAULT THE SEC APPEARS SO FOCUSED ON CRYPTO

In an appearance on CNBC, SEC Chairman Gary Gensler said he believes there is a disproportionate amount of scams, fraud, and media attention in crypto compared to its market cap. He believes that the attention given to the SEC's crypto enforcement is a function of the fact that that's where the media's attention is and that he is frequently asked about crypto by financial media. Gensler did not comment on recent Wells notices or lawsuits facing Robinhood, Consensys, and others.

REVOLUT X: FINTECH FIRM VENTURES INTO CRYPTO EXCHANGE ARENA

Revolut has announced Revolut X, a dedicated cryptocurrency exchange catering to professional traders, making it the first banking institution to venture into this arena. With a user base of 40 million worldwide, Revolut aims to provide specialized trading experiences with lower transaction fees and access to digital assets like Bitcoin, Ethereum, and XRP, initially available on desktops for UK customers with plans for further expansion.

SIMPLE SELF-CUSTODIAL WALLET LAUNCH

Jorge Izquierdo, co-founder of Aragon, has introduced Tuyo, a simple self-custodial crypto wallet designed to simplify DEX interactions across multiple blockchain networks. Tuyo prioritizes user-friendliness, abstracting complex details like switching between blockchains. It integrates technologies like account abstraction to streamline transactions.

EIP-7702: A NEW ALTERNATIVE TO 3074

EIP-3074 is an upgrade for normal Ethereum wallets that adds some smart wallet functionality. It was slated for inclusion in the next Ethereum upgrade. After it was approved, Vitalik Buterin and other Ethereum researchers expressed concern about compatibility between 3074 and 4337 (standard smart contract wallet) wallets and the potential of 3074 to be broken by quantum computers. EIP-7702 fixes both of these issues.

4 BIG TAKEAWAYS FROM FARCON

Farcon was the first conference for the decentralized social media protocol Farcaster. Greater personalization is coming to Web3, with services like Daylight creating a more unique and catered Web3 experience. As part of its growth strategy, Farcaster is creating Legos for developers to build on, like its frames feature. It is encouraging users to take as many chances as possible and try out several apps and mechanisms to increase consumer adoption.

UNFILTERED THOUGHTS ON BERACHAIN

One of the biggest issues for new DeFi protocols is bootstrapping liquidity. Much like how EigenLayer connects ETH validators with Web3 protocols for economic security, Berachain's Proof of Liquidity system allows DeFi protocols to get liquidity from validators through a staked token pool. BGT is a staking and governance token, which is non-transferable and rewarded to liquidity providers, and BERA is a gas token. The liquidity flywheel is expected to work as long as the APRs on liquidity provision are sufficiently high.

WHY PEOPLE ARE TRADING MEME COINS

This thread discusses the phenomenon of trading meme coins, attributing it to a broader trend of disillusionment among young people due to economic disparities and unfulfilled promises. It suggests that trading meme coins represents a response to a perceived failure of previous generations, exacerbated by regulatory hurdles and privatized opportunities.

WHY THIS CYCLE IS COOKED

Points-based airdrops create a rift between private and public markets as the abundance of VC funding and lack of new market entrants incentivize companies to stay private longer and open at multi-billion dollar valuations. The SEC's regulatory pressure has further exacerbated this issue by making it harder for startups to distribute tokens to users, which forces retail users to farm projects for an allocation. A new, more thoughtful approach is needed to balance the interests of regulators, investors, and the community.

WEB3 GAMES HAVE 3.3 MILLION MONTHLY ACTIVE USERS

SEC DELAYS MAKING A DECISION ON THE PROPOSED INVESCO GALAXY SPOT ETHEREUM ETF

The SEC has delayed a decision on the Invesco Galaxy Ethereum ETF until July 5, 2024.

FRANKLIN TEMPLETON AND BLACKROCK BUIDL DISTRIBUTOR APPLIED FOR ARBITRUM'S STEP ALLOCATION

Franklin Templeton Digital Assets and Securitize Markets, BlackRock's BUIDL fund distributor, have applied for ArbitrumDAO's Stable Treasury Endowment Program (STEP).

ZORA ACQUIRES MINT.FUN

Zora has acquired Mint.fun to combine the best creator tools with the best collector tools and bring the world's creativity onchain.