ROLLUP: Microsoft Buys Activision | OlympusDAO OHM Crash | LooksRare NFT | IreneDAO | OpenSea Dharma

Transcript

uh symphy is becoming a thing i know you're gonna educate me and tell me what a symph actually is and if i am not no i don't know david hey bangles nation happy third week of january david what time is it oh it's the friday bankless weekly rollup ryan where we roll up the entire week in crypto which is always an ambitious endeavor yet nonetheless we persist onwards through uh the gamut the the dark force that is crypto uh unpacking it and distilling it and summarizing a full entire week in crypto every single friday morning so grab your coffee because we're going to get after it starting right now on the journey west on the road to mount doom throwing the ring of fire away oh god what are you doing guys topics this week facebook and instagram adding nfts we

thought they'd do it every social media platform joining the nft army microsoft buying activision blizzard for 69 billion dollars i don't know if that's a number david or okay olympus has fallen the story of olympus dow and ohm price crash we're going to dig into that also usdc finally flippant tether we've been predicting that for like two or three years it's finally happening so it's good to see uh symphy is becoming a thing okay so i'm gonna talk about the story of irene dao that happened last weekend i was barely paying attention but i know you're gonna educate me and tell me what a simp actually is and if i am not no i don't know david you don't know what a symphony is i kind of do i i notice that this okay but i still want to hear you tell me what it is you're

saying that guys uh this is gonna be a lot of fun hope you're hanging with us before we get into the markets we should talk about iras okay specifically alto ira uh my big question is do you have a crypto ira do you alright this is like this is a crypto dad question do you david you should uh i've i've had one of these ever since i got into crypto i know you need to get one right now this is like one okay this is my message this is my pitch for david it's not for anyone else listening to bankless we're doing um first of all it's super easy okay but but here's why i love ira's 401ks it's because it's the only way

to do crypto with none of the taxes okay so every time you make a trade you have to if there's a cop capital gains tax or let's say you start staking all right like the income you received you pay taxes as income on that inside of a crypto ira you don't have to pay taxes all right david now the the flip side is you can't touch the money without a penalty until you're older but like you could just set aside six thousand dollars in something called a roth ira this year it's all in crypto you can set it up in like a few minutes this also ira solution is kind of an easy button for that so it's already integrated with coinbase you have a coinbase account as easy as that and you never have to pay taxes on the thing wait you have to pay taxes on

crypto sir yes okay now i'm getting worried about you in your regular accounts you do uh also this is kind of the the advanced button here but if you have a 401k for from the previous employer you know that that's been collecting you've had it in stocks for a while you can convert that roll that over into an ira 401k type format with with alto as well so you want to go all in crypto with your retirements accounts um you know you're skewing younger you're gonna use this money for a while you're gonna buy and hold this is the way to do it and also ira has the easy button they're integrated with coinbase 125 different assets so the things that are trading on coinbase are the things you

can invest in with this um only ten wait is it minimums of ten dollars with alto ira as well so you can get started small so did i convince you yeah yeah well i've been convinced by your presence uh a while ago but for for when i got into crypto i started with mining uh i did not know that you had to pay taxes in crypto that is a true thing in 2017 and 2018 i just did not know that uh and uh so for those of you who are not paying attention to our taxes let me tell you you want to get started on that basically as soon as possible just think of yourself as an employee of your future self and do your future self your future boss itself a favor and man get your taxes in order now because if you

don't it just it gets it just gets worse it just gets worse it does yeah well david may be speaking from experience there but you're all taken care of now right you figured it out in this account though you don't have to worry about any of that and that's a reason to open it up while you're thinking about your taxes so go to alto ira.com bankless you can find out more about that okay david let's talk about the charts market time bitcoin what do we add in the week uh happy day today flat week on the week we started the week at forty four thousand dollars hit a low of forty one and a half thousand dollars and we have uh since uh starting to this recording today on thursday we have climbed up to back above forty three thousand dollars but still just down one percent on the week so a very

marginally down week after a big oof week last week let's look at the one month okay we're still down obviously in that month isn't gonna look good either ryan keep on zooming out year-to-date also bad yeah you're gonna take it back one year wow well wait yeah that's because your date is january i forgot about that um i can't believe this so so uh on the on the one year time year time horizon bitcoin kind of looks like a crab doesn't it it was a big crab year it's slightly up slightly up though started it started the year one year time frame started at 35 000 and we are currently at 43 000 kind of disappointing bitcoin though um that's interesting let's talk about eth

now what's ethan the week first yeah ether down on the week down three percent on the week a little bit more down than bitcoin start of the week at thirty four thousand uh three hundred and three thousand four hundred dollars excuse me uh hit a low of like roughly three thousand fifty ish dollars uh and it has since resurged back up to three thousand two hundred and twenty dollars uh down three percent let's do the same thing one month oh down we'll skip that but the one year oh looking good look really really good yeah so like roughly one thousand two hundred dollars one year ago and uh currently at three thousand two hundred dollars just yeah just since november just bad bad feels bad feels okay what's interesting about this cycle is it's not

playing out like previous cycles is it it's a little bit different this is its own thing i i think in crypto we've been trained to expect like yeah four year cycles and sort of let's we're doing the same thing if 2017 2018 but this is playing out much differently how do you think it plays out overall what do you think the one that can the way that everyone is confused and we keep on talking about it every single week the maximum confusion is how it plays out um it's just unpredictable unpredictable yeah but no more four-year cycles uh i never really was convinced that these four-year cycles were dependent on the bitcoin habiting the bitcoiners will definitely tell you that the four years crypto cycles had to do with the bitcoin happening i kind of think that was i think there's plenty of

rationale to say that that was a coincidence i think i talked about this last week um but isn't that is that isn't that just because like um you know bitcoin percentage of total market cap and crypto used to be so much higher i mean there was a time where it was 90 95 yeah right now it's down into the 30s i even i would even claim that bitcoin going up in price had led less to do with the timing of the happenings um but i'm not gonna i'm not deep in the weeds on bitcoin on that one okay we don't know the cycles just buy and hold for the long run you have to worry about the cycles uh let's look at the eth bitcoin chart here slightly down on the week we started last week at 0.076 we are down to point zero seven five i would literally like

that point zero eight number but i'm not really going to complain too much about point zero seven five either we'll see what what happens like the big catalyst for uh ether this year is the merge right bitcoin doesn't really have any catalyst this year so i would expect this to change it doesn't i mean that's happening next happening is two years away still 2024 yes yes i think i guess that's the next big event that happens from the supply perspective all right the bet index bitcoin eth and d5 what are we looking at on the week down i think half a percent on the week start of the week at 128 we are currently down uh to 123 dollars so down half a percent ish

give or take there you go down half a percent doing the crab thing a little down on the on the year for sure uh david let's talk about this josh stark wrote a blog post with evan van ness and they write this every year i've read it every year since as far back as i can remember in ethereum and it's it's entitled the year in ethereum 2021 so this is sort of a summation of some big things that happened on the ethereum network and i want to draw a few of these out um the first is this look at this david total transaction fees 2021 you want to read this out what are we looking at yeah in billions of dollars 9.9 billion dollars in transaction fees in 2021 out of the ethereum network um

clocking in at second is bitcoin at just over 1 billion dollars so ethereum doing 10x the transactional volume uh implying that there is 10x the demand to buy ethereum block space in throughout 2021 um followed by after bitcoin uh one bill bitcoin's 1 billion dollar fees in revenue in 2021 followed by binance smart chain clocking in at 0.9 billion dollars and then after that we have avalanche at .04 billion and solana at .026 billion and cardano at point zero zero eight billion dollars uh so yeah that's where the demand is uh that's transaction fees uh you can look at another view of it um by 2021

where you bring in all the defy apps and it's interesting that ethereum's number one in transaction fees unit swap is actually number two it even beats out bitcoin so an app on ethereum is larger but this this was really cool to me when you start to compare this with traditional finance and you look at how many fees the revenues of visa last year which were 24 billion dollars that's the revenue of visa and ethereum was 9.9 billion okay and it finishes out ahead of stripe which was 7.4 billion so ethereum now doing more transaction fees and revenue than than uh stripe and it's creeping up on visa as well uh another way to view this is total transaction

volume okay so this is the amount of value settled on the ethereum network ethereum actually surpassed visa in 2021 so it settled 11.6 trillion dollars this is of course all of the eth that gets transferred from address to address this is also all the stable coins all the erc 20s if you add up all of that value all the tokens everything if you add that up and compare that to visa the ethereum network is now settling more value than visa and uh that's quite astounding to me it's like can you believe that we're actually surpassing visa on that uh on that on that metric yeah that's it's a really it's a great

benchmark and it's one of those benchmarks where like okay that should have that's just like normal and like because ethereum should be like 10x because visa is just one company right there's just one payments network ethereum is a payment network of payment networks right uh and so uh like this is now where the game finally starts in my opinion like it wasn't to get to this point like this is where we go from here is really the starting pistol here what's the market cap of visa i think like last time i checked is like 400 milli 400 billion or 500 billion or something like that so comparable to uh ethereum in terms of 150 billion 450 billion what's eath hanging out around the range too right about the same about the same

and uh so and then ethereum surpassing visa and also just growing uh so much faster with so much more potential and yeah that's just transactional volume which is to say nothing about ether as a bond or ether as collateral like that's just payment volume it's funny we talk about the flipping and we often mean like obviously ether flipping bitcoin but like at some level i'm more excited about stuff like this like we just flipping visa last year can we flip the world please speaking of flipping flipping and flipping things what's this flipping usdc versus tether supply tether the king stable coin that has been around forever the first real stable coin that got real adoption finally gets flipped by usdc i feel like

there was a number of predictions uh by this throughout 2019 throughout 2020 throughout 2021 to die finally took 2022 for something to dethrone tether as the leading supply of stablecoin which is to say nothing about how massive tether is tether is also growing up in supply it's just gotten outpaced by usdc there is now over 40 billion usdc in existence and there is only just under 40 billion tether and so congratulations to circle congratulations to usdc for having that stable coin supply um we you love to see it and this is just what happens when like stable coins like asset dollar back stable coins have to play nice with nation states tether did not play nice

with nation states usdc did play nice with nation states uh so like no surprise to see all the tailwinds being captured by usdc yeah tether's always been sort of a mystery box like we're not really sure what it's backed by and usdc is is more you know traditionally regulated and you kind of need to be when you're backed by dollars in a bank account somewhere or hopefully you are um what's this metric this is from ryan watkins it's comparing uniswap versus curve what are we looking at here david yeah we're looking at like market share of stable coin volumes between uniswap versus curve and what we are seeing is unit swap v3 really starting to eat into curves uh market share so more and more volume of stablecoin going into uh uniswap i was

actually hanging out with someone last night uh who actually kind of had a critique on this chart saying that there was a significant amount of volume being missed out of this chart so this might actually not be accurate uh and like her volume missed a lot of curve curve volume just that just wasn't included i don't know what's true but i am going to find out ryan on next week's show that we're doing called the curve wars where we're bringing a curve expert on to talk all about curve and i will verify this data with him as to whether it is accurate or not but if it is accurate then unit swap v3 really eating either way unison v3 stablecoin volume is going up up through the roof um it's just a matter of like maybe curves also doing that too um there's also a there's also a story i

think about the fee market here so part of the volume rise on uniswap for stablecoins is of course the release of uniswap v3 but also two months ago it just introduced a um one basis point fee tier that previously been a lot higher so who benefits from the curve in uniswap wars the consumer lower transaction fees that's a beautiful thing um let's talk about this david so this is uh olympus has fallen out yeah slide continues so this is a headline in the block ohm market cap is down nearly eighty percent from its all-time high eighty percent down that feels like uh a big oof decline that's a big is what

we call that so okay well what's going on why so well just for just for context for reference the market cap of olympus dow peaked on november 23rd at 4.3 billion dollars it is currently at one billion dollars so we've lost 75 to 80 of the total volume uh volume uh and what happened um well i mean at the end of the day what happened is people sold like people sold and number went down and i think there and one of the reasons why it went down so much was because um i think a very rational theory and this is a got pulled apart by cyrus unesco and his great tweet thread one of the reasons why it went down so much was it because it went up so much and one of

the reasons why it went up so much is because of this meme out of olympus dow the 3-3 meme which is a reference to a game theory outcomes matrices uh and so you have possible actions that two people can take and this is like a prisoner's dilemma basically all theories and extra game theories extrapolation of the prisoner's dilemma so you can stake your own you can bond your own or you can sell your own and if you sell your own that's like a negative number if you stake your own that's a positive number so they give in like arbitrary outputs and the goal is to convince everyone to stake their own uh instead of selling it because if if everyone stakes their own then number goes up and so there was this culture instilled out of olympus dow to put the three the three comma

three thing in your twitter profile talk about how like we're all gonna stake like no one's gonna sell we're all gonna stay together and that's what made the token price go up uh and i mean sure yeah when you convince you you and all your friends to to stake and also instill a staking culture like well then there's no one selling and so so number goes up the problem with that is that people until a lot of like omi's omis or what they called got really really wealthy because the the price went absolutely bonkers uh just a year ago the price of ohm was or the market cap of home was 50 million dollars in june of 2021 before it goes to 4 billion in november and that's because this meme worked everyone was like yo if we all stake ohm we're all gonna get rich the problem is

you can only be rich on paper like that you can't actually be real rich because there isn't actually a long-term buying power buying pressure because it's mostly just a meme uh and so what happened is like at some point this this is what a ponzi game is it's not a ponzi scheme it's a ponzi game but there's a this culture of buying and not selling and at some point that runs out some at some point people want to take paper gains into real gains and then the culture of staking turns into a culture of selling and then we go from from where it was to where it is the reason and so there was a bunch of like marketing around ohm about how it's like this grand new central bank design and cyrus unessy put a tweet uh tweet thread together that really explained it in different

terms where it's mostly just the olympus dow model is mostly just a hedge fund you put assets into the fund they get yield on it the the value of the assets in the treasury goes up but the value of the market cap of the ohm token far far out exceeded the market cap of the value of the assets in the treasury so it was like a kind of a fractional reserve bank because like it was like a i don't know what the ratio was it was like five to one or ten to one a value of the ohm which is a share of the treasury versus the actual value of the treasury uh and so at some point like the the culture of staking just ran its course and people turned from stakers to sellers and now the value of the ohm token is falling

more closely in line with the actual reserves in the ohm treasury uh more closely moving to a one-to-one ratio kind of which is where you would expect an efficient market market to land anyways so that's my that's my summary of what's happened yeah so like i i guess i um i don't understand why people are so surprised that this is what i would say it's because basically the way i break down what you just said and the way i break down ohm is like there is some reserve asset that's backing this so it's a mix of dollars and eth right and call that the threshold value kind of a utility value also and then tokens that are getting yield exactly and then ohm is trading uh far above

the reserve asset value or the or the book value you might call it and uh all of the rest of that value that's above the book value or the reserve value that's all like maybe you call that monetary premium or maybe in the early stages of things you just call that meme premium but let's let's be fair that has a real effect totally okay because like bitcoin the value of bitcoin is a hundred percent mean premium okay a decent chunk of ether's value is also meme premium and there is the potential that you can bootstrap that meme premium actually turn it into monetary premium if you convince enough people that the thing you have is money and this was the path that that ohm has

been down which is saying hey this is a new approach to money just like ether just like bitcoin we've got an approach is called om and this can be a global reserve money this can be a central bank has been the comparison okay well from time to time that theory gets tested just like bitcoin's been off 80 it's been off 90 right it's been through the fires of people saying bitcoin's dead um like the monetary premium evaporates on bitcoin many of these bear cycles that has been the case now now it's happening to ohm and so long term is oma money or not well you have to come to your own conclusion if it is a money it deserves some monetary premium if it isn't then it doesn't and the

market is in the process of figuring this out what i don't understand is why people are so surprised right because like i thought you knew the game we're playing guys right this is as you said like bitcoin and like ether to some level this is a ponzi game it's not a scheme because no one can rug pull you it's fully transparent you can actually see everything that's backing ohm no one has rug pulled anyone else but that that delta that you're playing with like that you know that pyramid game if like um if we all hold together then we're good but if we all sell together we're going down um that prisoner's dilemma that can that can quite easily happen and this is just a case of that happening i don't think it's the end of ohm at all i don't think it's the end of

the um the mechanic of om the way it works right in this whole protocol owned liquidity on trend i think that's totally here to stay but um it'll have to rebuild and it might rebuild with a new set of narratives i'm not sure or um or maybe they'll try another round at becoming a you know a money maybe that's not dead either um yeah and exactly there's a reason why ohm the olympus dow model got forked like a thousand times there's like a thousand forks out there because the model works it's just like they it just got out over at ski tips with the whole like staking culture the 3-3 culture and now we're back down to reality there's a big fat reality check a lot of people lost a lot of money sad sorry about that uh me me too by the way i was in gnome um uh but

i'm i'm not complaining because like that's what you get when you're playing the game playing the game the play in the game and this is the game you're playing this is one of those things where like this was ohm's first big like uh like you know run up in price and then like kind of collapse back down to reality after it got forked a bajillion times and like to me that kind of feels like the first time where you know bitcoin had its proof of work fair launch fork phenomenon where bitcoin got forked a thousand times then it pumped and had its first crash and then it went back down to reality and then it had a bear market for four years and then it came back so yeah like the next story for om is does it come back and no one knows the answer to that question but if you

think it comes back like it's at a much lower price now this is where the conv like does olympus down have a community of people that are convicted on it exactly not just trying to do the whole three three three thing it's all it's all about the community it's all about the community of holders and also the question is will it keep falling because it could continue to fall i don't think it's quite at its reserve price right now i looked into this but i i think it still could go a is eating and roding into that monetary premium so do you want to play the game now david right that's the question question for you i want to play the game well that's the game we're playing here uh let's talk about looks playing a different game playing the nft marketplace game vampire attack open c

we just talked about that last week it's just a baby man it's like a week old and uh it's doing things so let's look at the price crushing it in price wow yeah it's starting to accelerate to a point where i'm a little bit nervous about its acceleration uh why why do you think it's accelerating what's happening here well there is a decent amount of volume going through looks and so there's a lot of nft trading happening on the looks platform because of this token and this token that's going up in price they are they are paying for trades basically so if you trade your nfts you get look looks token rewards and as that token goes up in price like you have more and more incentive to trade nfts on looks they're paying you to trade so there's a lot of wash

trading that's happening so kind of like in the same way that like yield farming was just like the same people like leveraging up their yields and like it wasn't really true tvl because of the incentivized bootstrapping but that's what happens with a token uh and so we have two graphs here let's go back up to the first one that you already showed like looks rare is crushing open c in terms of volume and that's again that's because of the the token incentives but then if you go down to the second chart uh the actually number of users versus openc is like just nothing like it's i think openc's got maybe 20x the number of users but the token is pumping in price because of all this wash trading that's happening because people want to get the tokens looks the thing i really really really like about the looks platform is that it

sends ether towards the token owners and so i've been staking my airdrop that i got and i've gotten like half an ether off of my airdrop just by ether is coming from transaction fees so in open seas case it takes what is 2.5 2.5 in looks case it takes two percent but the looks platform is sharing that two percent with those who stake looks token whereas open c is keeping it as part of its revenue part of its traditional business model exactly giving it back towards the token holder odors and i've i've always like when i've i've had my thesis is that i want as much eat as possible but i will also sell my eat for tokens that pay me give you more my game plan for erc 20 token investment

and this is the first token that is actually spewing out eth uh and so like it's kind of hard not it's really easy it's real it's like it's real real cash flows now you could you could say that that is going to evaporate once the token incentives but but it's still real easy like this is a real business model tokenized business model the the interesting question i think or the question that's in for the space is openc of course didn't go this route and we've talked to devin fencer on the podcast about why they didn't go this route um part of the probably the unspoken reason is the sec okay that's why we don't get token airdrops in the us that's why many of these companies are not tokenizing uh earlier in the process and so they're keeping it private um

there's probably other reasons for that but the big question is does this push openc or force their hand into doing something for its exactly so what do you think what odds do you give that of when uni-swap tips i actually have a lot of thoughts about this and i actually think we should take the time to unpack that uh open c is not going to do a token it's not going to happen are you certain about that what kind of i don't have insider information i have uh body language and cues that i have

picked up on um so nothing nothing concrete but here's my rationale there are zero openc investors that are disappointed currently in its current state there are zero openc founders and employees that are disappointed with openc in its current state everyone is openc is a perfect success for everyone involved and they also have the eye of sauron on them the sec is looking at them all the regulators are looking at them the world is looking at open c because openc represents nfts and so they cannot do a token because that's going to be legally and compliantly dubious and they represent us and so they have to be sparkly clean and they need to bend the

knee to the nation state and say yes we are a public company we're going to be regulated by you guys we're going to we're going to play nice and that is that they are doing that to protect the whole entire industry by not doing something like like sec securities dubiousness and create some sort of like imagine how bad that would be if openc the thing that basically represents all of nfts has to go to court with the sec we don't want that for the industry and so they have to play the role of coinbase right they have to play the role which opens the opportunity for a binance yes who's a bit more fast and loose which is maybe what looks is they're the binance to you know uh open seas coinbase yeah that's that's exactly right uh and

so i tip the tip of the hat to to open c they've gotten a ton of flack from users lately just about being out of touch with what the users want and they're not they know exactly they're very in tune with what the users want they are just hamstrung by compliance by regulation as we have seen a thousand times before coinbase is the same thing they're just they grew really really big really really quickly as did the industry and now their number one goal is to not f anything up uh and i thank them for that strategy i think it's the right and responsible strategy and also that leaves room for things like looks tokens it's all good it's all good it's great it's just like yeah we have like rough spots but like yo like we're they're they're leaving

the door open for a truly decentralized truly protocolized version of an nft marketplace and i think that's going to be fantastic yeah as do i and uh you know i'm glad we get to let both of these experiments play out and uh you know in in parallel um let's move on openc is still crushing it in terms of their sales volume yeah so january 2022 is the highest sales volume month ever ever it's just this happened with sushi and uniswap too remember when sushi came on the scene uniswap's volume spiked so it was like um you know the um you sushi actually helped uni-swap achieve more value rather than than sucking it uh away um

let's keep moving uh one other thing with openc actually this week lots of open stuff maybe we'll talk a little bit about is dharma was just acquired by opensuite so dharma is a d5 smart contract wallet uh it's a great way to get onboarded they were just acquired by openc what do you think the reason for this acquisition is now by the way we predict obviously like opencs raise so much money their last raise a month ago two months ago david was just 300 something million dollars okay the numbers are getting so large i can't remember they can't hire enough they don't need right 330 you know million dollars worth of employees so of course what are they going to do they're going to start acquiring this was their first acquisition why do you think they

acquired dharma uh fiat allen rams that's why they they got on-ramps they want to use dharma to allow users to just buy directly through the dharm through dharma whatever they've got um without having to like you know have uh maybe maybe a custodial wallet or non-custodial wallet just an easier on-ramp to buying nfts that's why they're doing it i have a kind of mixed fee i think that's probably right and of course they have to compete against coinbase who's launching their nft marketplace uh fairly soon coinbase already has fiat on-ramps totally locked down i'm i'm personally a little bit disappointed uh from a you know diamond perspective because i really like their smart contract wallet and they're basically

kind of shutting it down right so if you are a dharma user there's they're giving you like 30 days to move your funds out now i think they're helping with the migration process uh i you know i think their support team is is uh handling this as best they can but it is at the same time it's pretty disappointing that we lose a stellar defy wallet in the space but maybe it gets rebirthed in open c in some way that's that's actually better for users so i'm also i guess preserving the benefit of the doubt and seeing what happens with that integration anyway openc making big moves this wall acquisition is yet another one this industry is getting really interesting yeah and also congratulations to the dharma team because they have been

grinding since as long as i can remember for those that don't know dharma has gone through a number of pivots dharma you remember when they were a peer-to-peer peer-to-peer lending platform like like compound but instead of user to contract like how compound is is user to user and so you would be individually matched and set your individual rates uh with your with your assets and you would generate like individual agreements with individual people about like loans which was just like you know way too much like way too laborious it was like a little bit skeuomorphic they totally got just like the compound was the this actual successful model and so then they pivoted into uh being a layer a yield application getting yield on top of

compounds and then they pivoted into fiat on-ramps straight into l2s which is great we're connecting to your bank account which is fantastic and then boom they get acquired by openc so nadav has this the the ceo of uh dharma has been the cto right is now going to be the cto of uh of open sea so maybe this is also an aquahire type thing uh but like congratulations nadav and brendan from dharma and all the dharma team because you guys have been grinding all the way through thick and thin through the bear market uh i'm glad you guys have landed in good hands so congrats to you yeah absolutely i guess that's a lesson too i mean you just keep heads down building something good will come of it eventually uh guys we will be right back with some other releases of

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take out a loan that repays itself by using yield from your deposit to pay off your balance your only debt is time what was once inconceivable is now within your grasp [Music] if you're going bankless you need metamask this is your tool to unlock the world of defy without giving up custody over your private keys metamask is both a secure in-browser wallet and also a secure bridge for your hardware wallet you can now trade tokens on any decks or aggregator metamatic swap gathers real-time pricing information across all the d5 exchanges allowing you to select your best price while getting all the

metamask benefits of self-custody lower gas costs and increase transaction success rates metamask also has a fantastic mobile wallet that i use when i'm out and about which i use to collect poaps nfts and do all my defy things while i'm away from home if you haven't downloaded metamask you gotta try it out web3 wouldn't be the same without it download maps for desktop and mobile at metamask.io and load up your trezor ledger lattice or keystone hardware wallets so that they too can get into the world of web3 living a bankless life requires taking control of your own private keys not your keys not your crypto that's why so many in the bankless nation already have their ledger hardware wallet but the ledger ecosystem is much more than just a secure hardware wallet ledger is the combination of the alleged hardware

wallet the leisure live app and soon the cl cryptolife card powered by ledger the cl card powered by ledger is a crypto debit card with powerful features like an instant exchange to fiat where crypto assets are only sold at the moment that you swipe your card and also credit from crypto collateral where you can collateralize your crypto assets in order to get a higher credit limit you'll be able to manage your cl card powered by ledger inside the ledger live app right next to all the default apps and services that you're already used to using making the ledger live app your one stop shop for all of your financial needs go to ledger.com grab a ledger and download ledger live to get all of your defy applications all in one place hey guys we are back talking about the releases of the week let's start with

this one polygon just released their own version of eip1559 this fee burning mechanism that's been so popular on ethereum what's happening here david yeah so the polygon network is uh congested it's filled that's what happens when like there's demand for stuff and so they are implementing eip1559 to take advantage of in demand block space and so now uh the matic token is getting burned as a function of the demand for block space on polygon and we know eip1559 has worked fantastically on ethereum for many many reasons and why not just implement it on polygon so that's what's happening a much

clearer link between the asset and the i guess the utility of block space where previously that wasn't as clear so you're kind of enshrining the asset and giving it a sacred place in the ecosystem and that means as block space demand increases then scarcity of matic uh decreases right which is a good thing assumedly for price and that's the effect that it's having on ethereum i think all chains really will take a similar path like this mechanism is just too good not to implement yeah no it's universally an accepted mechanism and and interestingly it was eip1559 was actually implemented on other chains before ethereum was able to get to it because the theorem just kind of moved a lot more cautiously and slowly uh it's also an interesting note

to just know that like l2s are going to get congested too like they're everything's everything when you have supply it people are going to eat it up l1s are going to get congested we're already seeing avalanche and solana gets congested we're already seeing polygon has been congested for a really long time uh and so there's always going to be some sort of tension behind blocks block space supply and block space demand and uh and while l2s are going to get congested they'll still be cheaper and the way that we solve for l2 congestion is just by like making more of them which is great because we can have as many l2s as we want yeah absolutely uh let's talk about some airdrops david this is really cool from poly market so they just released

this is a prediction market of course their poly market is based on polygon they're deployed there but they just opened up prediction markets for openc metamask board apes zora phantom a whole bunch more and basically the question is when are these platforms one of these apps going to airdrop all right and so there could be a prediction market on this if you look at metamask there is now a a 70 probability that no sorry a 30 probability that metamask will drop a metamask token by march 31st um openc a 26 chance okay and this is according to prediction markets uh so people are you

know the market is betting in one direction or another and again this is a specific time interval from you know um now until march 31st 2022. so uh this is what the market is is pricing the probability of these various airdrops at and i think this is a you know a great prediction market to have especially for crypto because everyone's curious like what's the probability of an open sea drop i just asked you and you said like you know probably closer to zero right while the market is sort of agreeing with you it's it's only saying there's a 26 chance that there will be an open seat air drop in the next few months yeah that's really really interesting are any of these uh standing out to you as like really good deals i have i have my eyes on one

um look at dharma that dropped all the way down a lot differently by the end of it what do i think it's mispriced yeah what do you think is mispriced yeah uh-huh i think by the end of march metamask is i i'm going to say that there's a 80 chance that metamasks does a token but by the end of march really actually kind of that's what it's throwing that's right i feel like 80 to 90 this year right that metamask is going to do a token but i um i don't know this will happen in this quarter uh i think things just take more time look at this board ape yacht club right uh definitely do it that's because like that's i feel like there's it's they know it's pretty much it's announced

right it's pretty much going right these markets are efficient in that way okay anyway it's cool to have that as a resource that's on the poly market for you guys include a link to the show notes oh god here uh fendi okay fendi is a brand uh purse brand you know a luxury brand of some sort not one that i do they just released a tweet that says powering the web 3 revolution revolution with the ledger and they created like this this odd looking keychain you could strap to a purse it's a legendary carrying case it's a so hold your legs it's a flashy way to hold your ledger and you can like cook it onto your bag or your coat these people trying to get wrench attached like what what is the advantage of flashing a ledger around

public well i mean it's just not we're just accessorizing our crypto stuff like it's kind of cryptoculture taking over uh i mean no one who's smart would actually take a real ledger and clip it to their like maybe they have just a burner ledger like i have i have ledgers that i don't use um so i have like 50 of them uh so like maybe they're just trying to flashy be flashy about their ledger uh but like you know actually before uh in 2015 2016 in the very very early days before if ether when ether was trading around five to six dollars uh i think at devcon one or devcon zero like people were there like wearing their ledgers around their neck as like no really yeah yeah just because like there wasn't no one was

rich no one was rich yet like it wasn't an issue is it it's just like people stealing my 500 right it's like people needed like to just use assets just to like play with play with ethereum right it wasn't about like in investment it was just about playing and then and then ether moon didn't like that culture went away really really really fast um but this is just ridiculous yeah i don't know what i think about that that's that's why should we talk about this let's move on i don't know you know what you're getting for for your birthday though next year david mihal we use a number of his websites on the weekly roll up the crypto stats crypto fees uh you know l2 fees we use his stuff all the time he is uh starting up crypto stats

uh which is i think just uh uh perhaps like the culmination of all of his different segregated websites as fee websites and so he is trying to produce him in the community that he's bootstrapping is trying to produce a highly curated highly accurate normally normalized is the word that he's using crypto stats uh so that people like us can present on stats in a more uh um like formula formulized manner like we can actually start to like have a standard for these things uh and so he's he's curating people into discord if you want to go join the discord and help the crypto stats community we'll get a link in the show notes to put that discord there um but uh basically he wants to build out the like the wikipedia for crypto data is what he says this is yeah

we know we've seen this on rollups before you love what they're doing tracking crypto fees um you know how much uh yeah transaction fees are all of these things um this is cool to you david so this is a new press release got covered by bloomberg what is this yeah uh walter bloomberg in his famous all caps tweet says coinbase partners with blockworks and bankless ooh that's us for defy and metaverse event called permissionless uh and so of course you guys have heard about this before permissionless happening may 17th to 19th in palm beach florida this is where ryan and i are going to be meeting for the first time so that's going to be pretty cool because he decided to not go to east denver and

so yeah you got to get your tickets because tickets are up only uh they are roughly in the 450-ish dollar range they're going to go up in a couple weeks they're going to go up a couple weeks after that and they're going to go up to like two plus thousand dollars by the time the event rolls around so get your tickets now um ryan and i are planning a bankless and beers satellite event uh where we will have beer and talk about stuff yeah don't miss that that'll be awesome bankless together all in one beer hall it'll be a lot of fun um also the news here is is partnering with coinbase that's why we got bloomberg it wasn't it wasn't because of bankless data uh all right let's talk about this um a16z on the raises front they just

raised another 4.5 billion dollars okay a16 chris dixon uh and company of course we've had him on the podcast number of times i'm sure they'll put that to good use in the web 3 world this is another one ftx they just launched a two billion dollar fund with our our friend amy wu who's been on the podcast this is dedicated i believe to kind of the metaverse crypto gaming area so 4.5 billion from a16z another 2 billion for ftx there's another 100 million dollars from mechanism games they just launched a fund focused on play to earn gaming i guess all this to say massive amount of money in vc money

private funding coming into the space showing no signs of stopping all of kind of the angel deals vc deals all of these things are red hot at the moment and the uh the money is flowing towards builders guess it good time to be building in the space um yeah i don't know what what are your other takeaways from all of this there's just an infinite bid for games crypto games and i i really truly hope that we aren't just like cloning axey infinity and spitting out 50 different clones like how how those like stupid arcade games that we see just get repurposed over and over and over again in the web 2 world like i i i'm very very happy that billions of dollars are being funneled into building cool new games like bullish on just fun like that's

just a lot it's just a lot of money right like how much true innovation can there really be you don't you don't get to bootstrap meme innovation into existence with a bunch of money um but there are gonna be a bunch of games coming we're gonna be able to play a bunch of games that's the good side that's the good side great to see this money flowing in the space i i i am kind of a sucker for the uh bear market builders though you know like i feel like that's when the real work gets done right after all of the noise and the hype dies away the people who remain and they're continuing to build i mean that's how axi was built it was a bear market story bear market uh game and they just soldered through and a bunch of their peers died they kept going they built

something great um so i'm still a sucker for the bear mark but it's also good to see all of this infrastructure being built out that'll lead to good things too um speaking of raises as well last raise of the week po app just raised 10 million dollars to accelerate their efforts poet badges they are a thing they are a cool thing i know both of us collect many have many of them many many many uh yeah so what do you think they'll be doing with this capital oh gosh that's a a really interesting question maybe we should get patricia on to to actually talk about it they have a very long blog post about kind of their their plans but uh there was this one take that we had on the weekly roll up a while ago about how poeps are just digital tokens of memories and so i'd

like to see poep kind of lean into that like how do we more instantiate our our real memories um better uh and so perhaps that's what what they're going after as well as just like allowing people to increase their digital footprint for airdrops uh poeps are a great way to farm air drops if people ever use them for whatever reason um because you can just like know who's exactly in your community but you know community identifying is really huge uh who's actually you know of course who's been where don't doing what i got my first po app in east denver 2019. i've hold it very dear to my heart i'm excited to get the 2021 one uh it's coming up soon um congratulations to patricio because he's been grinding on co-apps ever since always believed in it and i'm also very very honored ryan and

i both are uh angel investors in this uh seed round so we were part of this too this is cool this is a tweet we read out on poep not too long ago i am my collection of my collection as me we're just the podcast coming out on monday is really all about meaning in the metaverse and i do think collecting things from various places you've been in the metaverse could be a key way to essentially find meaning part of your digital identity in this new world of crypto and poeps are certainly part of that story uh speaking of digital identity here we go finding your way in crypto do you have a job yet do you have 22. do you have a crypto job that's what we mean oh yeah you probably have a regular job related to ether and tokens and crypto and stuff like that

you should have one this could be the year guys go to the bankless job board check out some of the jobs we'll just read a few out senior full stack engineer at syndica a data engineer a paper chain a senior technical writer on the ethereum foundation team that's writing in geth for the guest client lead blockchain engineer thor swap there's a ton of others we won't read them all but go tune in to bankless.pallet.xyz jobs sign up get these jobs delivered right to you and get a job in crypto have you noticed how the list that ryan has been reading out has gotten shorter and shorter and shorter that's because we've gotten people jobs so if you want to list your job go to the jobs board and list your job because

we are good at placing people yes it works uh guys let's talk about news now dave you want to start with ethereum stuff and we talked about this last week which was sort of airdrop season between looks and this other token that was about to airdrop before we recorded fees.wtf and i gotta say they've really lived up to their name with wtf because like spicy it's gone kind of it's been a strange airdrop to say the least what's happened with this one yeah i'm going to go ahead and just pat ourselves on the back because last week ryan we talked about two airdrops one was looks and the other one was wtf.fees and between you and i the our consensus was that like okay we're gonna we're gonna hold the looks airdrop

because that's interesting but we're gonna sell the wtf.v's airdrop and in hindsight the looks token has 2x and the fees.wtf airdrop was a complete mess so we got that one right uh there's a they charged they charged for the airdrop they charged .01 eth in order to register your address to get the airdrop uh and again once again what the hell is the token even for in the first wtf www yeah like what the hell is going on uh anthony sitzano had a quote in here that uh this is just very emblematic of who he is such a blatant cash grab look if you have to pay anything other than gas fees for an air drop

it's not an air job right yeah all right there's probably you're just selling tokens that's not an air drop you're just selling your eats you just but yeah you're essentially buying tokens with these that's what you're doing yeah a lot of other things went wrong with this i have a confession to make though david i actually didn't even take the time to claim this one i have not claimed to much i just i don't even know how many years yeah i don't even know how much is worth yeah let's see and now now i'm going to like well i got i'm gonna go check how much i can get like if i can get something maybe that maybe i will but like maybe i just don't do it out of protest like this is done the other thing is like like the the claim button

i mean you are um giving some signing authority to whatever you know website is is you know um you use to claim your tokens and and so i'm a little bit sketched out by that unless i know the reputation the pedigree like do i even want to bother um that's another reason i didn't claim other than that i'm just lazy meanwhile as always literally right now the looks token just broke through seven dollars i might be a little bit overexposed here it was bullish looks like um let's talk about blacklisting for a minute this is a psa from a few weeks ago but i think the numbers were much smaller this time tether just blacklisted 160 million dollars worth of usdt

okay this is another reminder usdt tether usdc as well this is not censorship resistant money these are tokenized representations of dollars in a bank account somewhere usdc is basically like uh a bank a u.s bank abiding by all of the u.s banking regulations on crypto rails this is not what we mean when we say free uncensorable money they're useful they're a means to an end but uh another reminder here with tether blacklisting 160 million dollars and i gotta ask what do they do with this money yeah like who gets that money where does that go they should implement a burn mechanism eip 1559 for tether and just like you

know give it back to tether holders yeah i mean like i guess does tether just get to pocket this money um that can't be how it works right well how how else does it work like who gets the money i don't know so they're freezing the representation of the tokens right the money of course is still in the home right so in the fall and it's not actual dollars just some portion that are dollars it's treasuries and bonds and other things that are backing this thing but i don't know it would be to tethers benefit i suppose there's a 100-year fund 160 million worth dollars worth of value that that tether no longer has an outstanding liability for which makes it an asset so like who gets the asset this is i know a bunch of public goods that

would love that money if anyone from tether is listening well i mean they took it from somebody yeah so who's the person they they took it from probably a scammer or like somebody like doing like violating regulations or something trust tether yeah you have to trust heather yeah i think you freeze anyone's account for any reason um anyway let's talk about this ethereum client diversity stats not doing so well yes this is an area of improvement first let me say amazing that ethereum actually has more than one client right no other channel no other chain has more than one client so you're already batting ahead but like the expectations for ethereum are so much higher has like five six different clients for eth2 and this is the proportion uh 68

of the eth2 clients staking eth in the beacon chain right now are doing so via prism lighthouse number two with 22 percent techyou 9.5 nimbus 0.3 ideally you'd love to see i think danny ryan's like i'd love to see i don't know probably perfect world 25 25 25 25 something like this or at least a third a third a third no client having more than 33 of the network that's not the case today yeah and just just to emphasize why this is important for example if uh there was this uh quick history lesson here we go the shanghai ddos attacks that happened in 2016. the reason there was one client i think it

was geth that got ddosed and all guest nodes stopped working ethereum stayed online because pair the parity nodes the other client took the weight of ethereum the multi-client design saved ethereum and this is there's there's been inflation bugs in bitcoin and because bitcoin only has one client that that turns into a catastrophic bug where you have to roll back the chain fun fact bitcoin has had the chain roll backed uh which is which is crazy because they yelled at ethereum for doing it way back way back in the day way back way back in the day but yes um uh and so if a multi-client system is a decentralized anti-fragile system but prism is such a good client that everyone is using prism to stake

and so prism has this outsized share just because they made a really good piece of software they have an outsized share of the ethereum to clients and so there's this conversation happening in the ethereum space about how do we get more people to stake not using prism uh and it's a victim of its own success it's just really good uh and so uh but the thing is we have incentives baked into the ethereum protocol uh which i think is what you're about to pull up next this is the problem is these incentives are almost disincentive so it's a bit more stick than carrot but like yeah what are these disincentives what is the stick right okay so in the event of a client failure if there's ever a bunch of nodes that all go down at the same time slashing happens and if everyone

who's on prism all goes down at the same time everyone is getting slashed if there's a client failure and because prism is disproportionately a high a high uh portion of the clients they get slashed disproportionately because we want to incentivize it's like amplified yes it's like an amplification effect there's like a crowd penalty like oh are you staking with everyone else and everyone else when their nodes went down well you should have been staking with like fewer people maybe you should have been taking on lodestar or nimbus where there isn't the amplification penalty uh and so staking on lowstar you don't have any loss if you if there is like a client-wide slashing event and with nimbus which is the next most uh used client like it's only a little

bit by comparison uh and so these are these are these natural incentives to balance the resources of the ethereum ecosystem to make sure that it stays decentralized over the long term and this is just what good and mechanism design looks like so if you are running a node on prism know that this risk to you exists because you are staking in the same exact way that everyone else is and perhaps you should you know get out of the crowded room and go to the more empty room yeah i do think that this is uh sort of a psa right and particularly for exchanges we'd love to see more client diversity with the coinbases and krakens of the world um doing this so you know hopefully they are factoring these risks into the equation because the risk amplification if they're all using some

of the top clients like a prism or techio is just drastic it's going to cost a lot more money in the event of slashing um of course i feel like some of this conversation is a little premature too because we haven't yet gotten to the merge okay everyone's eath is still sort of locked in the beacon change so that's another catalyst that could shake things up and change it all around i'm hopeful for that but there's a conversation about how if this like disproportionate waiting towards prism actually might delay the merge because it's unsafe to merge when there is a super majority of stake so that is up in the air yeah that's interesting i don't personally i don't think it'll delay anything but uh yeah that that is a conversation that i've seen um let's talk about layer two david our favorite

subject here we go 2022 yep yep layer two time all right it gets you going uh binance users are now now able to deposit and withdraw eth to and from arbitrage that's our fiat on-ramp love it finance oh it's starting to support arbitrage and uh another victim of its own success they have to stop it like do you know why they had to had to stop ryan no this happened very quickly like in a few days they just had it on and they turned it off why'd they turn it off the answer why they turned it off because they ran out of heath because everyone withdrew to opt or to arbitrarium and so they had they they need to like get their their their ferry of eth from the main name back to arbitrarium so users of binance can go from uh from binance

to arbitrary it was so successful that binance ran out of eth on arbitrary uh so uh coinbase brian armstrong i know you're listening take note like there's user demand to exit from exchanges on to layer twos pre please do it please do it layer two layer two twenty five minutes don't make me text you i will optimism optimism as well they're getting an ave implementation so it looks like ave is getting set to deploy on uh optimism again later to you is happening on arbitrage that's what's happening in the argent

wallet that just went live this week um also optimism continuing to drive improvements there's so much optimization i'm optimistic optimism optimizations all right they just shaved 30 off their average transaction fee this week and uh this is not there might be more coming this is not the 30 shaved off of transaction fees that we reported on last week that was a different time this is another thirty percent off of transaction fees off of optimism uh uh so an an erc 20 token transfer or excuse me an east transfer on our optimism almost below a dollar almost below a dollar and there is still plenty of room for even further fee reductions online they're all competing with each other i love it it's so great

just they're all competing with each other two two two two two two hop one billion in volume transferred this is just six months after launching people using bridges how long will it take them to reach 100 billion is the question um next this year this year 100 percent this year also definitely if you haven't used the hop bridge before uh go do it just farm the airdrop like they're they they don't have a token they're going to release a token how are they going to release a token is from people using the bridge go use the hot bridge go from ethereum to optimism go from optimism to arbitrarium go do other things uh and then i don't know just end up back on the theorem just start

farming these air drops why aren't you doing this uh it's hop-on i'm looking at the probability uh yeah it's it's uh 34 according to poly market the probability this quarter is 34 that hop will release an airdrop i think they should really extend this out for the whole entire year i don't know and i guess they need the markets to settle but they should really uh extend the markets to a one year yeah i'm sure they will but you know that's your probability this quarter according to the prediction market um let's go to nft land david this is huge news absolutely monumental news facebook and instagram adding nft functionality they want to help you create that's minting and sell nfts in addition to of course displaying your favorite nfts this is super big news from my

perspective what do you think of this yeah i'd like to know the details i did not actually read this article apologies uh but there's not much in the article it's just more of a stub yeah because it links to a financial times article it's kind of vague but meta is doing something they're probably going to use their novi wallet yeah okay uh so and it's not certain that this is like going to happen on open blockchain systems like maybe it'll be part of the you know the facebook blockchain or something like this um but from my perspective this is still massive adoption right massive surface area for nfts yeah this kind of feels like hey we're doing stuff too an announcement uh in in this article you can you can see it um uh instagram leader adam missouri said in december

that his social network was actively exploring nfts the technology is on the company's mind at least it sounds like they haven't completely settled with what they want to do they just are telling the market that like yo we're totally doing nft stuff as soon as we figure out what that is do you think they're also doing that thing where they're testing the waters like they let stuff leak yeah see if they're going to get the market or not have the market response yeah something like this and then yeah i keep on people like to cancel people over nfts i forgot about that that's happening yeah that's a thing um irene dao irene that's been a thing over the weekend as well what is this what is going on i've called i've heard people refer to this as symphy simphi yeah so uh irene is a individual i don't

know who she was before this uh but she has made a bunch of nfts of her and like you know attractive attire uh and you know very very pretty uh and has made a bunch of nfts and she has made irene dao so there's a discord and so like basically she's just targeting all the symptoms of the world to get her to buy her nfts the floor price is 1.4 eth uh mike novogratz bought one a few other people have bought one so like people are starting to buy these just because like it's kind of like if you have one i do not have ryan please please sir not not green no i mean i'm down to be a sim for someone but i don't i don't know who irene is i want to okay i want to

choose who i'm going to be a sim for uh our show notes say uh would be fun for david to explain what a simp is to ryan okay so i didn't put this in there right it must be luke our editor put this in there luke okay ryan okay i know what a simp is all right i understand luke what a simp is actually what is symph short for maybe i need to have it what is this yeah what is what is sim i'm googling this right what short for uh oh i won't be reading that out loud [Laughter] all right well that's what's going on i don't know simp is somebody who it's basically like somebody that just like uh does anything and or everything for like a girl right like oh like they they're super interested in like oh it

doesn't have to go does it i think so i mean are are we um ethereum oh we are we have italics huge huge ethereum sims that's exactly okay yeah but like it's supposed to be for like the opposite gender like oh i'll go get your coffee i'll go like i'll hold the door open for you oh i'll cook you dinner like i think like stuff like that yeah all right moving on uh chyna is getting into the nft scene okay uh bitcoin bad nft is good as long as it's deployed on the national china blockchain network that's what's going on in which case is it an nft right per discussion last week we talked about the flow chain right it's just a jpeg if you don't have property right property rights it's just a jpeg if your property rights are

dependent on a nation state that can censor you those are weak property rights uh i don't know i think some people get worried when they see this about nation states co-opting nfts and co-opting web three i don't personally because of the protocol sync thesis right i think all of this ultimately has to settle ultimately has to collapse to the most credibly neutral decentralized layer at the very bottom so this is just onboarding for open permissionless chains i think i hope but do you think that's a real threat you think this gets co-opted by nation states

at the end of the day like i don't really care too much about jpegs getting co-opted by nation states because you can do still do stuff by like trading them and like if all things get co-opted like jpegs aren't really the worst um but but keep in mind nfts like they're starting as jpegs but like we believe they're gonna be like turn into fundamental property in the metaverse identity all sorts of things i mean it's not any more like sense like centralized than china already was so there's that there's that gap coming in the nft world releasing their first line of nfts on the tezos blockchain so retailers joining the fray what's this about uh yeah i think that's it nft major yeah nft uh end story

you want to hear something weird dystopia here we go walmart is quietly preparing to enter the metaverse the metaver the walmart metaverse how does that sound the metaverse we have at home yes this just sounds awful to me um the walmart metaverse but i guess they're filing trademarks that's the news it's the most boomer way to get into the metaverse they filed trademarks that's that's the end of the story someone tell them they don't actually have to file trademarks to build on the medicare please okay this is the big story this is a big one i don't know why we buried this this is a big one what is this david microsoft buys activision blizzard world of warcraft diablo uh starcraft that game studio also call of duty uh that is

getting bought by microsoft at something like 40 above the share price at the time when this was 69 billion 69 billion dollars nice um and so microsoft getting into the metaverse via just an acquisition of a gaming company uh i mean activision blizzard hadn't even gotten into the metaverse yet uh whatever again whatever that even means i don't even know um but uh microsoft wants to be into digital worlds and digital realms and so maybe this is injecting metaverse type stuff into activision blizzard yeah at this valuation this is more than a game purchase it feels like right it's more strategic than that this this feels like more than a just a game acquisition for kind of their xbox platform

microsoft you know game game studios this feels to me at this kind of premium is this is a play for the metaverse this is a um they are following into the metaverse yeah they're they're trying to chase after whatever zuckerberg and crew are doing on the meta side of things on the facebook side of things um but you think it means uh you think this is going to be a trend this year oh yeah i this is my tweet i said uh you know blank public company enters the metaverse will be the headline of 2022. uh and then i followed that up with my eth maxi take uh might as well read public company buys eth because yeah definitely to the extent it's going to be built on ethereum um coinbase partnering with mastercard to let users buy nft via cards that sounds cool

what's happening yeah so uh coinbase has their nft platform their 2b release nft platform and fortunately mastercard has categorized nfts as digital goods so because of that you can buy them with mastercard so making it compliant to buy crypto things you can't buy like things like bitcoin or ether or cryptocurrencies with a credit card that would be bad also irresponsible but you can buy nfts because master gardeners call them classify them as digital goods so cool we can now buy nfts with our mastercard uh and as soon as coinbase opens up their nft platform we'll be able to do it there that's awesome uh breaking into mainstream here's another story of that so budweiser

just purchased i believe a nouns uh nouns out of noun dao yeah from nouns down this is sort of the um i don't know this is this has some of the pedigree and some of the valuations uh that rival crypto punks right i know it's not as mainstream there are far fewer noun dials i believe one is released every day one per day there's a bid on it i think the bids are like 50 to 60 east per noun just because i don't know how they got that that evaluation so quickly but they did so great right so budweiser doing it obviously for some social cachet for some street cred for some brand awareness for some coolness and i believe are planning to incorporate nouns in a super bowl ad right like budweiser dominating super

bowl ads this is ip for one of their ads super cool whoever is in budweiser like advertising or leading budweiser or bud light there's actually bud light uh which i think they're the same thing whoever's doing that's like killer job because it's not they didn't do the very basic thing of just buying a board ape they went for announced out that is some like deep nft knowledge uh so like dude like whoever's leading bud light give that person a raise first off and they're probably you know they're probably a reader of metaversal i would say i bet you they really want to read william peace or stuff i bet you they they got to i mean william peace is a big noun fan so um yeah maybe it's that this is pretty this is pretty obscure this is pretty deep this is pretty neat this is

a good move this is a good move this is a very strong indication like yo we are actually cool we are not just like the hay fellow kids exactly they're not just buying another board right this is uh this is deep crypto stuff well okay so how how many how many uh crypto commercials you think we'll see at the super bowl what's your guess at least two okay so i'm gonna go with five oh wow i think there's gonna be five like and so i'm including something like this that's budweiser that adds nouns doubt when i when i total five but yeah i think it's at least five cool i think that's a low estimate poly market let's get this up and running all right um this is cool too so rare they just added serena williams to their

board of advisors so rare of course is a um nft trading card platform it's really for soccer really fantasy football right fantasy fantasy football yeah yeah so uh and it's it's built on top of layer two technology super cool um huge zk roll up in europe zk roll up on ethereum now serena williams uh jumping on the board this is kind of a question i think we'll see more athletes do this more influencers do this get into the nft scene i think she's really blazing a trail here so that's cool or maybe we're just simping for serena williamswith podcast that's why we mentioned this well i accidentally talk because uh serena williams recently put a board ape as her profile picture

well there goes that some post show editing here uh last thing on the nft category what's this david solana nft's total sale volume crosses one billion dollars congrats to the solana nft ecosystem i don't know actually what is like the open c version of solana like where do you go to just try it's a whole it's a whole different set of apps it's a whole different uh world over there yeah although i think open c's gonna i mean they're they support crosstalk yeah so we'll see how long all of that lasts uh bitcoin worlds just two quick things the first is jack just announced that block formerly known as square is officially building open bitcoin mining system i feel like he already announced that but maybe we're announcing it again

uh and also the cash app is integrating lightning network letting us users send bitcoin globally for free cash app of block formerly square going all in on bitcoin still seems kind of weird that it's just bitcoin like i'm good do bitcoin but like also do all of the other things right i feel like maximalism holds people back a little bit any form of maximalism okay eat maximalism bitcoin maximalism maximalism will hold you back in this space bitcoin innovating on bitcoin miners is just not where it's at in 2022 like come on jack but also come on the podcast

last thing for you on the regulatory side of things i guess this is more crypto banking side of things there was a breach at crypto.com at first there were reports 15 million dollars was stolen in this heist looks like it's closer to 33 million dollars the ceo of crypto.com confirmed this do you know what's going on here uh no and neither do they this is a quote from the article it is not yet known how the hacker was able to steal their funds from cryptogot.com but the exchange first announced that some users were reporting suspicious activities on their accounts january 17th at the time the exchange stated that it was going to pause withdrawals while it was investigating the matter uh and so yeah kind of big big loss here uh over 30 million dollars in collective btc and eth uh the uh the ether on ethereum got

washed through tornado cash uh and so uh poof it's gone um amazing uh sorry sorry to crypto.com and anyone affected by this uh my conspiracy is inside job inside job interesting many of them are not your keys not your crypto if you have funds parked in crypto.com i think for this size of a hack of course everyone will be fine crypto.com is like printing money these days through all sorts of means so it's going to be fine for this type of a hack but you know it's been a long time since we we talked about uh a major exchange-getting hack can you imagine if like coinbase was hacked david what a dark day that would be for crypto we haven't talked about things like that has actually

gotten hacked very very very in their early days and as theirs and i think that's actually a good thing because they started to take security very very seriously very very early and they have not been hacked since so i actually kind of think like i consider coinbase as like basically never have gotten hacked before because like it almost doesn't count when they started in like 2011 or 2012 or something 2013. uh like they were just like a three-person startup on like a laptop and then and then boom as soon as they got any sort of traction like they have been fantastically secure ever since uh also also gemini has not been hacked either so it's also good that we had uh mount gox happen so early in crypto's history that just kind of you know shook many generations but we're kind of far

removed from that um anyway i'm not wishing anything bad it's happening it's just no if you have your funds in in exchange that could be susceptible to something like this guys we will be right back with the takes of the week and of course the meme of the week but before we do we want to thank the sponsors that made this episode possible polygon is ethereum's largest and most vibrant scaling solution to date with millions of monthly users and all of the biggest defy apps the polygon ecosystem has turned into a blossoming metropolis of defy activity transactions on polygon are quick and cheap allowing users the freedom to achieve their defy goals all while being economically anchored to ethereum but polygon isn't just the proof of stake sidechain the polygon team is building a suite of scaling solutions including polygon hermes

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software on ethereum that lets you trade any token at the current market price no human counterparties or centralized intermediaries just autonomous code on ethereum input the token you want to sell and receive the token you want to buy the uniswap grants program is accepting applications for grants do you have something of value that you think you want to contribute to the uniswap ecosystem no matter how big or small your idea is you can apply it for a unique grant at uniswapgrants.org and help steer uniswap in the direction that you think it should go thank you uniswap for sponsoring bankless all right guys we are back with the takes of the week the first is this a property versus utility this is an image you're gonna have to describe for podcast listeners what are we looking at yeah so uh we have btc and eth uh side

by side btc is a square representing a plot of land and then next to it is ether also a square representing a plot of land but on ether square is a cube indicating that you can build something on it and i actually really just enjoyed this visual metaphor um simple remember when uh the few understand meme was uh uh proliferating around crypto twitter remember do you remember how that came about ron no i was actually gonna ask did that come from d5 circles or bitcoin or circles that came from bitcoin circles that came from pierre richard who said that uh bitcoin is uh real estate on the internet internet real estate implying like yo there's like it's the native currency of the internet there's only 21 million units therefore it's like digital real estate on the

internet and and then he said few understand and that's what started if you understand meme um uh and then a bunch of people started making fun of that because this was a ridiculous metaphor because you can't actually build anything on that real estate and no it's not real estate it's just tokens it's just a token it's not a real estate anyways you can actually build stuff on ethereum uh and so it is the same surface area like bitcoin it's the ethereum has the same surface area but if we're using this real estate metaphor like you can actually build stuff on your land on ethereum uh so i just i just enjoyed this metaphor yeah that's cool literally building things on on the blocks on the blocks themselves exactly right this was great okay so this is um this is a brand new pfp project that got

spun up and uh somebody kind of did a did an oopsies if you want to click on that first image the first one yeah we have this brand new woman dude woman's doodle society coming off of the success of doodles nft and women's doodle society tweeted out something very special is coming soon please follow us and don't miss out you know implying they're going to start off their pfp uh pro nfc profile picture and then somebody with an actual doodle says yo there's still a fiver watermark on your pfp so like this woman doodle society just went to fiverr and just like yo like can you make us some some nft uh images and literally didn't even pay for it because it's still watermarked right exactly still watermarked also the the other thing about this is that this picture that

we're looking at right here somebody took a a photograph of their screen and you can tell because of like the striations right around the mouth like that is a picture of a screen so i mean that's not a screenshot that is somebody with their phone taking a picture of their screen so that person is a boomer that is what a boomer looks like this is terrible this is absolutely like you know uh this you know late stage capitalism is kind of that that mean this is like late stages yeah this is what happens i mean does this feel a little toppy to you yeah superhero but like i've been feeling i've been feeling top signals for roughly a year now so i've stopped i started ignoring them well but i think we've come to a place where there can be top signals in various markets right but

like not others and so maybe this is a top signal in like um cloned pfp nft segment of the market right but it doesn't mean that all nfts have top signaled as a result of this that's exactly right let's talk about this uh a take from speaking of toxic yes another this is late if that was late stage nft this is late stage defy and what happens in late stage defy i think this tweet is maybe summing up the current zeke guys do you want to read this out yeah this is from emilio who says the current state of the new wave of defy is talking about the newer newer defy apps that have come out uh come out about one individuals worshipped like gods two burner addresses uh with keys controlled by the founders uh three

multi-million rugged shaked shooken off like it was nothing for dow members doing whatever they want with the protocol treasuries and then emilio finishes up saying needless to say this is not what i signed up for uh and i mean ryan and i are definitely d5 boomers we kind of stick to like the d5 1.0 apps i'd say like maker compound ave the thing unit swap the things that came about while we were paying attention to ethereum during the bear market and there's just been like a newer wave of these defy apps which were just like kind of not our vibe i'd say um just a little bit more like i would say so for me personally i would say some of them are some of them aren't right but like but what this was what this tweet tweet summed up is individuals worshipped like gods multi-million dollar rug like

people taking all of these excessive risks right there is an element of some aspects of d5 2.0 that i totally don't vibe with right what i love in d5 2.0 is seeing uh builders building new things what i don't love is this whole vibe of like uh you know f everything like we're just gonna uh build until it breaks and do what we want with treasuries and like that's that's that's a vibe that i definitely don't resonate with and that's the part that feels late stage i actually thought this um this reply from that kind of sum it up we have the bull market and we have the bear market he says in between them we have cringe markets when stuff like this is normal bear will clean it up cringe markets wow

we have got to use that i'm going to be using that moving forward that's where we are that's totally where we i feel like we are right now we are in the middle of cringe market are you wishing for a bear market then to clean some of this up as mark says like i wishing for a bear market wishes for people's money to go down in a way and i would never wish which i would never wish but like i also at the same time like if if anyone who's listening to this feels like they're late into crypto like and you're like looking at your portfolio saying like oh please moon please moon please moon you actually want a bear market a bear market is where like if you have conviction you stick around you also buy assets at much lower prices you learn who your friends are real products get

built with real innovations you also have time to understand these things before the market moves on like bear markets are blessings it's a blessing it's a blessing yeah like yeah yeah but then but then you're poor so that sucks i too am bullish on bear markets because i'm bullish on bear markets yeah you're poor temporarily but but the one thing you know i saw i saw this um thread in crypto reddit i think it was something like um our crypto market's going to come back and the truth is some of them will and some of them won't yeah so like you also have to be very cautious of what you're buying what you're investing in this is why we continuously harp on uh evaluation of like fundamentals right

this stuff doesn't tend to fundamentals don't tend to matter during bull runs but in the bear market they certainly do i guess the safest move overall is uh just to escape to uh to fiat for some period of time but um yeah you know that's what we're dealing with fiat and hard money and yield let's talk about this uh the sec the good old sec this is my take do you want to read it out yeah uh this guy ryan sean adams says if the sec deemed etha security in 2022 it would probably be the end of the sec not ethereum which is just like so chad awesome it's a little cheeky it's a little cheeky right i just think so so here's the thing i i feel like um

institutions have the most to lose from a credibility perspective right and there was talk over the weekend that i saw of maybe new gary gensler maybe the sec coming out and saying something about ethereum being a security right like very heavy-handed move on the entire industry and the reason i don't think they'll do this is because i legitimately believe that would be the beginning of the end for the sec right that is such an erosion of the credibility of their institution and let's remember all of these government regulatory bodies they are institutions they are social institutions governed by the people right and if they start to lose their credibility in major ways

you know like that's an existential threat for them and uh to make this kind of a move to call ethan's security which is why i'm not worried about i don't think they'll do this they don't want to ruin their legitimacy and credibility but like it's just not going to happen and if it did happen ethereum would come out of it more unscathed than the sec on the other side of this thing like ethereum's not going away because a government body says it's a security right yeah and like i dare them to try first off also i don't they should just play nice just be nice sec like we could all help america like just um you don't have to do this yeah i don't i don't know if they're doing it but the no they're definitely not this is just

like a conversation yeah it's just a conversation with crypto twitter um it's just one of those things where like uh it would it would the emperor would be revealed to have no clothes as in like oh you deemed ethereum a security and like no one cares because and we're still doing our all of our ethereum stuff like like do you think i i would like to see if coinbase would actually de-list ether from the exchange if they did that or if they would leave it up as a protest like i think i think it's a security than everything yeah yeah everything is right well bitcoin has a case where it would be yeah uh this is your take david yeah it's not really a take it's me just kind of front running what i'm excited about but uh i tweeted out east denver is one

month away i can already feel my heart getting warm i'm just so happy to have you denver around the corner it's a great conference great vibes i'm just stoked to see everyone there well this goes into what you're excited about so let me ask you what are you excited about youth denver in particular what's the pitch uh for someone to come to eat denver eth denver is just pure signal if you are just fatigued from just the noise of a bull market or what we are now calling cringe market like east denver is the opposite of that like everyone who's at youth denver like has like wants to be there for the right reasons it's very deep crypto culture very true to the ethos uh it's just an absolute blast it feels something like it's a hackathon first off so there's a

bunch of developers on their laptops like hacking away and as like a non-dev it's kind of nice just to like watch them be like oh yeah keep going guys like keep building and keep building the stuff thank you for your service um and it's just like it's a festival it's a cultural festival of just like crypto culture which is which is lovely there's after parties there's there's a bunch you're gonna meet friends if you want crypto friends and you don't and you're talking the ear off of your family and your friends and they're tired of you go to east denver's because you can find some other crypto people that can talk about crypto more than you can uh and that's actually just one of the things i'm excited about ryan uh the other thing i'm excited about is uh i did a layer zero with santiago siri santi siri

on on twitter people might know him a big argentine community member doesn't live in argentina currently but when vitalik was going around argentina recently and telling that story about how arjun the argentines are using finance to transfer money like that kind of story got went around the twitter sphere recently it was santi that was like with vitalik like you know guiding him around the country it's like hey we're going to go talk to these people like we're going to go like who do you want to go talk to what part of the communities uh so and he's watched argent argentina go from like a very well wealthy highly just like uh great great country like with lots of agriculture and then the money broke the inflation happened the corruption of the government happened he

watched the downfall of argentina and he is now watching the rise of crypto society in argentina where it's not it's not like you know normal society are that we consider normal inside the us where you have like normal society and crypto people crypto people are society in argentina like it is completely just rampant as like a movement in argentina and i've always had held argentina close to my heart just i think for reasons like that um people from argentina too that i've met in crypto over the years shout out mariano conte um yeah so that i want everyone to go listen to the layer zero that comes out on tuesday with uh santiago siri that's awesome man i can't wait to listen to it yeah ryan what are you excited about

uh look it's this thing instagram doing nfts i think that's a massive deal like we called it over the summer um you know in august we wrote this post where we said twitter is just the first this is when twitter announced that they were doing something with nfts they're just the first you know what happens next competition among social media platforms will ramp up youtube tik tok facebook instagram the metaverse will consume them all this is the web 3 space race and we're really seeing it happen and what i'm blown away by is how fast this happened like this is happening at warp speed especially when you compare it to d5 right so the incumbents the the groups that should feel threatened by this that they're jumping aboard it's taken

much longer for the incumbents in the finance world like the banks of the world to embrace d5 but in uh web 3 web 2 is just embracing it they're just helping us roll out web 3. and that's amazing and when i tweeted this out some people were saying well but you know facebook's the enemy right meta instagram this is the enemy but we always go back to that thing of if they adopt crypto protocols they adopt crypto values okay mine gives me shivers right that's how like that's how that's how we win so this is an example of crypto winning other people said okay but what if facebook is not actually using an open permissions chain what if they're using their own layer one or i i just say like let them okay i mean that's fine you can be aol

you can mail cds to everyone's house and onboard them to the fake internet so that they eventually onboard to the real internet right that that's what's going to happen because they can't persist in a closed ecosystem i'm very bullish on the protocol sync thesis that ultimately all of this value all of the people that web 2 onboards will come into the real web 3 economy in the world and they won't stop at property rights owned by facebook you know they won't settle for that they want real property rights that they own on a public permissionless open system like ethereum so i'm excited about that like this is trojan horse stuff crypto's winning and this is exactly how we win

super bullish yeah i feel like crypto's already won it's just a we're waiting for the rest of the world to realize it i think so uh speaking with the week's time of the week you ready here we go we got two this week we got me the week memes of the week they're both fantastic what's the first one explain this all right so for the for the viewers we have the bugs bunny daffy duck uh duck season rabbit season meme except it's uh alt season or l2 season like what's it gonna be is it all l1 season or is it layer two season uh i know where i've placed my bets i think listeners wouldn't need me to say that but um alt layer one or layer two is this also about is this also a comment about narrative rotation though too because we

see a well-known traitor in this meme right and so like you can kind of rotate from all l1 season to l2 season and i think this is implying that l2 season is next from a narrative perspective yeah um not to be mean but i'd like to know if three hours capital invested in either arbitrary optimism i don't think they did and so therefore they are on the alt layer one season camp i think they've got some starkwear though they do have starkware they do have starkware so there's that what's the second meme all right here's here's where i think my bets are so this is this is uh the the this we've talked about this actually forever ago but this i just saw this meme was like wow this is so great uh this is a pepe frog character being childish hopping from couch a to couch b because the

floor is lava but couch a is optimism and couch b is arbitrary and the floor is ethereum the ethereum main net he's hopping he's hopping from optimism to arbitrarily don't touch main net because the main net's lava and then there's somebody saying billy have you been wormholing again implying you know they're taking a bridge they're using connects or using hop to go from layer one to layer two or excuse me from layer two to layer two uh and so i thought this was a cute meme look i think that i think that's the theme for 2021 and ltu 22 is the flores lava main chain is lava get on ltu migrate well you have a chance when you have the chance uh i think that's it meme of the week we covered everything on the roll-up guys as always bitcoin is risky so is eth so

is d5 you could 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 bank list 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 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

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