Weekly web3 news: Solana outage, Farcaster record, GoDaddy x ENS and ERC404

Transcript

uh-oh uh-oh salana went down again this week should you be worried I mean ethereum never goes down right and if you're a web Academy doer then there's no doubt you got bags in salana well your old buddies Jay and KY are here today to tell you everything you need to know about the salana outage and what we did with our soul gmgm welcome to web3 Academy your one trusted source to capitalize on the next big phase of the internet we are here to make sense of an onchain World in constant transformation I'm jbird along with my co-host K rehead and we believe that Atomic composability is going to change the world don't worry friends this isn't all bearish news

today we started off with the SL outages there's plenty of big good things happening in the Space farcaster is having its moment which is really exciting we're going to cover everything going on there uh GoDaddy one of the biggest domain Service uh Platforms in the world has partnered with ens domains but we're we're attaching websites to wallets now which is really cool uh Robin Hood has a partnership with metamask and so much more and then we've got some bullishness going on in markets that I'm going to talk about so this is going to be a fun market watch session and as usual we'll do a bunch of agree disagrees some air drops that are happening a really big one actually so get ready for that Lots going on today but before we do as per usual we like to take a second to take a deep breath and

share some gratitude so Jay what are you grateful for yeah you're gonna love this one Kai I'm grateful for Taylor Swift no I'm doing it I'm finally doing it I'm finally saying it I'm jumping on the bandwagon you know I'll tell you why I'm I'm ging for T Swift for for many reasons one she's one of my wife's favorite artists and I I really do think she's an incredible role model for women she makes great music that has a lot of meaning she's not afraid to say what's on her mind but I'm mostly grateful for her because this weekend is the Super Bowl and I'm a big NFL fan and my wife is not a big NFL fan by any means but she is is more excited to watch the Super Bowl this year than I am quite

honestly and so I'm throwing down a bet on PO Market one of the crypto betting sites where you can do the Taylor Swift parlay okay here's the Taylor Swift parlay you are betting that Travis Kelce scores a touchdown that the Chiefs beat the San Francisco 49ers in the Super Bowl and that after the game Kelsey and Swift will kiss on the stadium grounds and it will be confirmed by video or picture so I'm throwing down a bet on the Tes Swift parlay this weekend my girlfriend's a 49ers fan so she's obviously pumped for the Super Bowl not because of De Swift but she's like I'm not doing that bet not a chance because obviously she doesn't want to bet that

the Chiefs are gonna win so you now said that you think that a bomic composability is going to change the world and you're grateful for Taylor so if this is a weird start to the episode Jay I'm not GNA lie I'm a little bit shook right now but I'm just going to move forward my gratitude is for the grapes that are growing in Mendoza I'm currently in Mendoza Argentina which is basically like the Napa Valley of South America it's where malbach was I I believe I don't think it was first started but where like 95% of all the mback is is made in the world it's Wine Country and I have been to I don't even know maybe 15 wineries in the last week I'm a little bit my brain's all over the place because I just feel like I'm hung over every day I don't even know what's going on

anymore but the wine is incredible the wineries are amazing and also not just the wineries the olive oil is also very nice here so there's there's lots of good things happening over men Mendoza and I'm just I'm very grateful to be here I'll be off to Chile in a couple days actually tomorrow but um was here for a week I love it I love it Kai before we jump into the show couple quick announcements we are hiring right now do you have experience running ads on Google on Twitter on social media platforms we're looking for a ad specialist check the link in the show notes and apply if that's you also don't forget to sign up for a free news newsletter comes out three times a week keeps you up to date on everything you need to know in the space so make sure you subscribe link is in the show notes

and as always please give us a like on whatever platform you're listening to and check out this week's poll we want to know which chain do you spend more time on theum l2s or Solana and whether you're listening on Spotify you can answer the poll if you're listening on YouTube or another platform throw a comment in there to let us know which one you're using more cuz we want to know kai as we always do let's start off with the market watch what's going on in the markets this week well it's been a pretty wild day this is Thursday as we record as per usual we've had a very bullish morning which has been nice to see Bitcoin is up over 45,000 so it is up let's scroll down here a little bit

2% on the day so far and 6.31% on the week of course Ethan Soul not been left behind eth did go up to 247 70 almost today however it's pulling back quite quite a bit and we're now sitting at 2434 so up 4% today and up 6.7% on the week and then salana which had a crazy morning it was at 101 earlier this morning and within an hour it was at 105 so it had a nice little pump it's sitting at 103 right now so up 2.5% on the day so far and up almost 7% on the week so a good day a good morning I guess for crypto we'll see what happens to the end of the day I just did a

market watch this week where I I gave sort of my predictions on where we're going in the short term so people are getting pretty hyped on Twitter right now getting a bit bullish I'm not bought into this into this runup just yet I don't think that this is necessarily the next leg up but let's see we we have some potential numbers and some potential like supports that we're we're sort of breaking through so we we'll talk about that now the big thing that's going on here right now is Bitcoin has been basically suppressed below 45,000 for I don't know almost the last two months we had a quick breakout with ETF and then and then went right back down and actually I guess this has been like three or four months and so until we beat that that 45,000 marker which I have up on the screen here then I really

don't think we've broken out yet now we did that this morning let's see if it holds we need a close a daily close is nice but a weekly close is what we really want and so there's still a few more days to go to see if this is actually a a breakout on that side that's going on bitcoin on the ethereum side of things I shared this chart in the market watch episode for the first time this is basically just an ascending channnel that we've had in ethereum since it's very low back in July in 2022 so we've basically just been ranging in this channel for a while and until we jump out of this I mean we're still the it's an ascending channel so we're still going up it's just sort of slowly but surely over time but until we break out of this I don't think we actually move

into sort of the parabolic phase that we're all waiting for the big bull market the 2021 like bull market we had and so we're still aways from that the number to be here would be around 2750 maybe 20 2800 if we surpass that we break through that okay it's on we're going to go to the Moon we're still aways from that and um I I just don't think we're getting there just yet but let's see and then the other side of things Sal I've already pointed this one out which sort of broke out of its wedge pattern last week we sort of bounced off that and and it looks pretty good there the next stop for salana if we do take this next leg up is like 140 bucks and it should get there pretty quick so that's really cool it's 40% increase from where we're at right now e would be

about 3,000 and so I think that's the next leg up and then we probably sit around those numbers for a little bit just like we've done at these numbers when we get there I don't know check out my market watch episode where I go into more details on when I actually think we get there I'm not sure that it's right now we'll see we have to get some things to confirm my main reason is just like usually at this point in the psycho we have a big pullback haven't really had that I mean sana's been like a 38% pullback so that one's big but like Bitcoin ether under 30% we usually have something much bigger so they're around like 20 and so I don't know we'll see what happens look we could definitely just go up from here it's a bit of intuition is the the main reason and

just looking back at historical Trends but things could change and I'll actually talk about what is changing and why the market structure could be changing which I'm G to share right now so let's talk about some ETF news because you know we just don't talk about ETFs in that fun this episode do we Jay we love ETFs yeah right we didn't until just till about January 15th but now we do so anyway so big news coming out of the ethereum ETF side of things so if you guys remember the months leading up to the Bitcoin ETF January 14th or whatever that was the approval there there was like two three months of just all the companies doing amendments to their applications and then meeting with the SEC and going back and forth and Jay and I talked about it every single week on the rollup that has just

started for the first time here on ethereum so for the ethereum ETF so Arc which I believe is the one that which is 21 shares they have a Bitcoin ETF they are the one that I think has first dibs on approval which is May 23rd they have just done their first amendment to their application and sent that back into the SEC basically doing a bunch of the things that they had to change for Bitcoin where it's like in cash and blah blah blah blah like all these like random things they're now like sort of amending and making those changes to the ethereum one so that it basically matches the same as what the Bitcoin one was so that just happened yesterday so that's kind of a first here which is good it's news that like we're going to start progressing and we'll probably see a bunch of these over the next couple

months leading up to that May 23rd date interesting about this one is Arc in their Amendment they added in the ability to stake the underlying e which the ETF experts are all basically betting that this is not going to be the case in the first go around here so like if the SEC does approve the CTF it's Pro they're probably not going to allow them to stake the eth there's just added contract risk to that they don't really get it there's potential slashing like it was hard enough to just to get Bitcoin ETF approved now to do something where they're going to stake and you know they see that as leverage it's just probably that doesn't happen but in the First Amendment anyway Arc has put that in so likely gets removed but but if not that's going to be just nuts if that

actually happens basically what would happen is the ETF provider would take in the eth then they would not only earn on their you know 0.2% or whatever fee they charge they're earning like 4% on the eth that they're holding which would be nuts or they might share that they get like give dividends to the holders of the ETF that would be completely unheard of unprecedented and would be just so bullish anyway I don't think that's going to happen so just wanted to share that okay moving along so big news on the Bitcoin side of things so first of all yesterday we just saw for the first time that Fidelity which is one of the largest asset managers in the world who also has their own ETF they have recently put their like General sort of like mainstream purpose ETFs that they

have where it just holds a basket of things they have put their crypto their Bitcoin ETF sory into those ones so these are the ones where like everyone just holds on to them for their like retirement savings people have no idea what they're doing they just come into a bank and they're like yeah I want to you know put some money in my 401k or my RSP depending on what country country in and they just like okay do you want the risky one the medium one or like the conservative one and you just sort of choose one and it has like a x% expectation that you'll get a return each year most Boomers use this and like newer people into the world of investing use this and so crypto the Bitcoin ETF is now included in that so in the conservative ETF for Fidelity there is a

1% allocation to the Bitcoin ETF in the medium one there's 2% and in the sort of like higher risk one there's a 3% allocation to the Bitcoin spotf so what this means is people all around the US are now investing in Bitcoin and they don't even know it so this is like passive flows coming into crypto this is the power of ETFs here that I think a lot of people aren't wrapping their heads around there's only so many people that actually care about buying Bitcoin right but what this is is people that don't care at all about buying Bitcoin they're just investing in their own retirement as they usually would and now all of a sudden there is an allocation to bitcoin as a result results of that that doesn't happen unless Bitcoin is wrapped as an ETF the same will likely happen with ethereum at some point but

this just drives a lot of ongoing demand and basically just never leaves these are the things that people don't sell when it's your retirement fund it's just like or or pension fund Etc it's just like you just kind of buy it you hold it for as many many years as you can and people just hold this for like most of their life right that's what's happening here with this ETF this is just the first one I'm sure many more are about to come out that are doing this over the coming weeks to months so that's really cool so a chart on the screen here of gpc's um daily flows coming out of it which were I mean obviously very massive I think the largest day was a uh $640 million outflow in one day that is getting close to zero we're not completely done but

we're getting very close to that outflows being done and then we just have inflows moving forward which all nine of the ETFs are getting in consistent inflows on a daily basis so that is really good news then we have one little Moon maath session here that Spencer did he's basically looking at the inflows of Bitcoin ETFs and how that will affect the market so what he estimated is that currently there are between 1.5 million and 1.8 million Bitcoin that has been traded in the past couple years so most of the Bitcoin that people hold are just like you know micro strategy it's bought never traded never sold just like goes into a black hole the ETFs most of that just going into a black hole most of the big-time holders of Bitcoin they've just held it for like 10 years you know what I mean and so a

lot of people are just what we call hodling so there's only about 1.5 million to 1.8 million of the supply of Bitcoin that is actually traded on an ongoing basis so that's not a ton and it's not a ton when you consider that currently the Bitcoin ETF is unpaced to accumulate 300 to 500,000 Bitcoin per year on a yearly basis and we're still in The Fairly I lower inflow area amounts of these ETFs right if we start to pick up prices and we get into that sort of bull market that we think is coming these implo will likely go much higher so what he's looking at is about an average of 300 to 500 but if we get into sort of bull market phase he's like maybe 1 million Bitcoin per year which

means that we're just a couple years away from the ETFs basically sucking up all of the existing supply of Bitcoin that is being traded and so when that happens you have a ridiculous Supply crunch as long as that demand continues and that means number go up number go up a lot and so that's just one thing to think about I there's other ways that obviously people take tokens off the market more so on the ethereum side of things which we're going to do a pro report soon on which is if the ethereum ETFs get approved the same situation happens here you have X amount of ethereum that's getting pulled off the market that's going into ETFs but then if you think of the way eth works you also have how much eth 25% of all eth is currently Stak how much of that is

restak which we'll talk about later in this episode how much of that is collateral in defi applications and then how much of that is being burnt on a daily basis so like when you talk about a supply crunch the Bitcoin story is Big it gets real big when you talk about ethereum speaking of ethereum one more cool piece of news we got an announce we've talked a lot about the EIP 4844 which is the upgrade coming to ethereum that will reduce fees on l2s by around in order make to so should be about 10x probably going to be a bit less than that but somewhere around there the final test net went through yesterday for this and so now they've set a date March 13th this will go live and l2s will become close to 10x cheaper so Bas optimism arbitrum all that are going to

be pennies and maybe even fractions of a penny in less well a little over a month from now so that is I think going to be a really big deal it should drive a lot more activity on top of these l2s which also what does that do more activity on l2s the more eth that's get bridged to l2s which also goes into the black hole it never leaves the L2 once it's there things most people don't Bridge back from an L2 to to the L1 so this is just another way that eth is being like kind of sucked into something that just never leaves and taking it off the supply so there's a lot of really solid Supply Dynamics happening right now which is what generally sets you up for a big bull market I mean we have the Bitcoin having also coming in just a couple

months in April and so generally we have these crazier bull markets after these sort of Supply Dynamics happen and more demand comes in so we're setting up for something to be really really big this year and moving into next year so exciting times to be in the crypto space I would say let's go what a what a very nice and bullish market watch you just gave us there Kai feeling good you mentioned Salon prices up so let's take a look at what happened with the salana outage I mean you all know now that didn't really impact the price because the price has gone up since then but let's make sure you guys are up to date on why was there an outage and does this matter so on Tuesday salana went down for about five hours the Sala Engineers they identified the issue pretty quickly

uh and right away developed a software patch uh and then rolled it out to the validator networks all these node operators need to upgrade their validator and they need 80% of the validators to do this upgrade in order for salana to get back on once that happened it happened within five hours it was turned back on and boom kind of a bit of a blip that I think nobody really cared about to be honest there was pretty much no Market impact like salana itself was actually up 1% on the day so didn't really impact soul nfts on slow were were mostly even meme coins were all over the place but me coins are

always all over the place so the market shook it off basically kind of no news and now we all reset our calendars to what are we on we're on day two now since salana has gone down last yeah interestingly if it would have went 18 more days without an outage they would have had a full year of no outages and they could have removed the beta from salana so technically I guess and I don't even know how this is or like where this is true or where this comes from but you need a year of it working uh without going uh without having an outage for it to um come out of beta this might just be a a narrative I'm not actually sure but anyway we need 18 more days for it to be the full year didn't happen look sucks this is not something

that is I guess generally acceptable for a blockchain in the long run like whole point in this is permission permissionless open transparent and the ability to just like transact at any time and you couldn't for 5 hours there was literally no blocks for 5 hours that's a big deal especially if a company's building on top of salana right like how did this impacts helium the dpin protocol where you're getting Wi-Fi like how do this impact a lot of different things so it does matter but we're still early days they're still obviously in beta they're still working through a lot of things salana is processing so many transactions it's actually ridiculous and so like they're still doing way better than every other chain in terms of transactions and throughput so like these things are expected and even all the devel velers in Sal have all said we're we're going

to have more outes it's going to happen there's going to be bugs in something that's very new I I definitely was not too concerned I was kind of hoping Sal would crash because then i' I'd buy a bunch but I think most people at this point are just like whatever it's fine and also in a bull market you know bad news doesn't ever really impact much if it was in a bare market then it would have dumped a ton I'm sure in a bull market people just don't really care a lot of people are asking Kai why it took 5 hours to fix this you know feeling like hey what's going on like we get that it went down but 5 hours is a long time as you said it impacts a lot of businesses why did it take so long yeah I mean that's actually a feature not a

bug because people also go well Salon is decentralized and I think the or is centralized sorry and I think the thing to understand here is if it was centralized they could have had this thing back up and running in 15 minutes they just literally turn it off turn it back on after they they make the patch which they had the patch within I don't I think it was like 30 minutes or something now the reason that this took so long to come back why it it take five hours is all the validators had to go in view the upgrade that salana had salana Labs made and actually approve it and they don't have to approve it and so you could even see some of them in the Discord people were going why is it not back up why is it not back up like why

haven't you upgraded your validators and they a bunch of them just responded like look just because salana Labs um gave a patch to this doesn't mean we're just going to go and use it we don't care we need to go and review it ourselves or write our own code to fix this and so you know there's thousands of of validators and they need to all review this themselves and upgrade so that is more just more proof that Sona is actually decent if it wasn't if this was a database you could just turn off turn it back on like a Nintendo 64 back in the day on it real quick just the old blowing in the cartridge and then put it back in in hard reset yeah so anyway like it just continues to happen obviously there's cause for concern but I wouldn't be concerned right now but I

think as you said it is important to recognize that this we should expect this and we actually have a hot take in our agree disagree section today that we're going to discuss and break down because salana right now is prioritizing the just transactions at scale that nobody else is doing and that means that they're constantly bumping up against the limit and that limit is going to get pasted sometimes and they're going to go down but every time it goes down it gives them an opportunity to discover why and fix it and thankfully that's happening now before we get to mainstream adoption this is part of inov this is what should and it's not necessarily A B thing and

and and E have just taken different road maps to get to where they're going like when ethereum gets congested it the cost goes to like $200 to do a transaction which is ridiculous salana that never happens it just happens to go down every once in a while which is also unfortunate and ridiculous but look they're both focused on different things one is trying to get as much through as possible one's trying to remain as decentralized as possible they're both going to become very decentralized and very scalable in the future as they both work towards their goals totally Kai have you seen farcaster on your Twitter feed at all this week nobody's talking about farcaster right farcaster is blowing up right now it's all the rage it's all the talk they've hit alltime highs in daily active users I got a chart up on the

screen right now if you're watching on YouTube and this thing is just parabolic since the start of February when it literally was they were hovering around like probably 3,000 daily active users and then over the last basically week they've gone to over 40,000 daily active users just absolutely nuts a lot of people are saying that maybe this is because of farter frames I don't think so yet like yes forecaster frames is super exciting we talked about that last in last week's rollup we also released a newsletter so if you want to learn more about what is forecaster frames go check out that newsletter we'll link to it in the show notes but I think the main reason here is two things one forecaster last week announced that they were free in the US and then this week announced

that they were free in I don't even remember the exact countries but about 10 other leading countries so foraster used to be $5 per year it's not it's not a tremendous amount to pay for but that does limit a lot of degens and also unfortunately a lot of bots from coming in and now that they're open for free you're G to have a lot more degens and unfortunately a lot more Bots coming in and so that is what is leading to this rise also farter has now a in program where you can get dgen a funny I'm saying DJ so many times you can get dgen a a token as a reward a daily reward if you post on farcaster three

times per day and you get engagement on your post then you get dgen rewards and that has led dgen to be up it's up like 95% over 160 million market cap now so you're seeing a lot of speculation happening on farcaster and a lot of people jumping into to a hype cycle so I don't know about you Kai but my hype cycle alarms are going off right now I was just going to say my alarms going off for sure anytime you see a chart like this one it's not sustainable and two just um forecasters what they're building is amazing I I I have nothing against that I think they're building something really cool their app is is incredible it is really good there is good conversations on farter it's like don't get me wrong it's great but there's not 40,000 real people that are

on there actually being active when soon as you open it up for free you bring in just you bring in Bots web 3 is just filled with these Bots and airdrop farmers and people know they can Farm dgen there's probably other tokens that will come there's a bunch popping up now on farcaster look this idea of being able to integrate tokens into social is pretty cool right like they can basically just because your account is on chain and is a wallet you can just like someone likes a a post on foraster and you can Auto just like give them a token like you can't do this on Twitter you can't do this on Facebook Instagram ET so like there are some really cool things at play here and I think you need these random DG and firor and stuff to come in to go and like play with them

and test them and see how it all works and is scalable and Etc so like I think that's what they're doing here by opening this up is like we know this is a bunch of bots we know this is a bunch of farmers but we just want to like see what happens when a bunch of people come in and like let's start to play with it many of these are probably real people they're just like people that are not going to bring real engagement and real content onto forecaster so the one thing that this worries me of is like look when someone uses I don't know a or whatever defi protocol right think of salana right now everyone's using margin fi and Camino Etc and you put in this like rewards incentive where a bunch of farmers come in and they start putting their Capital into these to these

protocols it doesn't impact me as a user in fact it makes my experience better because there's more liquidity in those protocols so that it becomes cheaper to use right and so like that's all great farmers can actually be a really good thing for the allocation of capital right the problem I think is when it's a social network when there are a bunch of Farmers on my social network and Bots it does impact my experience in a negative way not in a positive way and so I'm just a little concerned about what happens here uh and how what they're planning to do on this I just remember when lens had this rumor of them having a token to lens protocol the sort of main competitor of farcaster they had a rumor last year about launching a token and we were heavily using lens at the time and all of a sudden our engagement

went up like 20 30X and I was like okay this is not real we started checking out like doing some tracking and stuff to see who was coming off site and it was like next to no one so it was all fake and we had these fake comments fake likes whatever and then eventually this is all Farmers once they said hey we're not launching a token this is true it all went away and I was like okay this is a bit ridiculous and so I'm just a little concerned to see what happen to farcaster because foraster had been just predominantly crypto native people like you have BAGI you have vitalic all on there and just only Crypton native people so it was like a really great way to speak to people that there's not a bunch of bots and stuff like on Twitter and I'm just afraid when you open it up

for free like this and you start promising tokens I don't know what that's going to do for the Social Network so I mean we'll see it play out but I wouldn't get too psych I mean you can't invest in farcaster anyway because have a token but I'm just a little bit concerned that's all yeah I mean it's a great Point social networks are meant to be places where we see what we all care about right the social decides the we decide what rides with the Top If our behavior is impacted by money then we are going to behave in a different way than we would behave if it's just impacted by our feelings or our thoughts or our likes right so I think the the social science of this is going to be

fascinating to see play out I think both Kai and I very bullish UND decentralized social really believe in that space it's just so early it's really it's fun to see all these experiments and see see the impact the other thing that was a cool exper experiment is BAS announced that they wanted to reward the 20,000 earliest forecaster users and because foraster exists on wallets they can do this they can easily go and see who are the first 20,000 wallets that signed up for farcaster and they rewarded them with some tybg tokens you got like 8,000 tybg tokens web3 Academy we got this because we were early on foraster it's worth like a buck so this was not an airdrop

meant to create a bunch of hype or something like that but this is based this actually came from the based Institute and this is them experimenting with different ways to reward early on chain users and it also was a way to get this token that they've launched into the hands of people that they see as being the ones that they want to have this token so really cool to see onchain permissionless rewards happening in livetime a lot more will come out in that as Brands start to learn that this is possible with wallets as your login next let's go to some web 2 News Kai GoDaddy is partnering with ens what's going on here this is pretty cool so

GoDaddy for those that don't know is where you buy your domain names for your websites right so we have W3 academy. that came from I don't know if we bought on GoDaddy actually but I think we we bought on GoDaddy yeah it's massive and then you have they partner with ens ens is ethereum name service so this is where you bu c. eth for example and I can make my wallet instead of the ox blah blah blah blah it is my ens name instead okay so ens is to wallets what DNS is to like your IP addresses for sites right so websites are usually like a number but humans don't do well with that so we've created DNS and then obviously humans don't do well with these 40 whatever letter word wallets so we created ens for that now an ens

domain is also can be used uh to direct to a website the problem is is that most browsers don't actually interop with this and so you need to use like the metamask browser and you can put it like vital. e for example and you can go to vitalic website but it doesn't work if you do it in Google Chrome and it's probably really tough to get these browsers to do that so what ens has done is partnered with GoDaddy and so what you can now do is connect your ens domain to your DNS domain and so what you basically get here is the URL to your website also now becomes a a wallet address and I think that's quite interesting and and vice versa and so look I don't think that this like goes mainstream today or something it's not

like a bunch of God dat users are just excited to use ens that's not the case again this is a very Niche thing within the crypto world and so like don't let these things get you you know it's great marketing or whatever but like it's not that big of a deal for most of the world but what it does do is just like it's another kind of in with the Trad world right with the with the web 2 world and just like kind of making those connections easier and easier and easier year and the more we sort of like infiltrate the web two world one little thing at a time the more web 3 just sort of takes over and so I think this is really cool people from GoDaddy can start to learn about this obviously the staff there are now like whoa what's

enss like what's crypto and they're probably all going down this Rabbit Hole now after this partnership so it just onboards more people and then of course it's cool to have your wallet associated with a website and and I think we'll probably see some cool Innovations as a result of that you know whatever that might be so whether Nike or something all of a sudden goes okay nike.com is now our wallet right you can send money to it or vice versa like it's pretty cool and you could see something coming from it so interesting and um we love these kind of Partnerships gradually and then suddenly these are the things that are all part of the gradual process that'll lead to the sudden Moments One More big partnership that came out of the web 2 and web 3 world this week was metamask and Robin Hood what's going on

this one's not as big but what it is is so metamask and Robinhood now have a bit of partnership basically what you can do is inside the metamask wallet you can now buy crypto assets directly through Robin Hood so you can already do this with something like PayPal so you could also connect your credit card into metamask and just buy crypto you can do it via PayPal and now you can just do it via Robin Hood so this is just a a way for Robin Hood to extract fees so that people are using their exchange instead of you know PayPal or something else and then just making it easier and easier to get access to crypto some people don't have PayPal but they do have Robin head and now they can basically do this super easily if you didn't have PayPal then previously you would have had to go set

a PayPal account you usually have to do like some kyc stuff and then it would work but if you already have a Robin Hood you don't have PayPal now you can just do it straight through Robin Hood so again just opening the width of the pipeline to flood Fiat into crypto which we love I love it sounds great let's go over to Magic Eden making some moves this week they announced the creators Alliance uh so they are gearing up we've talked a lot about magic Eden is working on a eth Marketplace and they're also working on a cross chain wallet and they're gearing up to that launch and so they've created this Creator alliance with leading nft projects across the ethereum ecosystem most notably they

partnered with hudgi penguins and with isuki both making big announcements and waves within their own communities basically what this creators Alliance does is it aligns a bunch of leading ethereum nft projects to say that they are going to make magic Eden's new eth Marketplace whenever it launches their preferred Marketplace it also gets magic Eden's team directly in contact with a lot of the leading nft projects so that they can basically advise each other and cross collaborate and discuss hey what what do you need for your community and

the other thing is is that it is very clear that openc has lost and well at least right now it feels like it's lost so we only have a leading Marketplace that is for creators and communities we have blur which is a leading Marketplace for Traders and I think we'll continue to play that role and service that customer but we don't have a Marketplace anymore we kind of had openc we had magic eting on Soul we don't really have one that is the there for creators that is enforcing Creator royalties and that is building with communities in mind and that is clearly what magic Eden is

trying to do here with these Partnerships and so look I think I'm very bullish on where magic Eden is going with this very excited I also think that we could see a future where one thing that's very clear about if you look through the Creator Alliance all of these nft projects they one thing they all have in common they are all IP based projects and all IP based projects are gearing up to how do you spread your IP in the biggest way possible and there's the web two way to do it I mean I got there's the pre-web way to do it like pudgy make physical products make toys right and there's lots that are trying to do that there's the web two way to do

it which is you make you know you make video content you make TV shows you stream that stuff you make gifts you spread it in that way but there's the next way to do this is going to be the metaverse and the way the new way that we all start to connect and use these characters to represent ourselves in a new digital way that doesn't exist yet and I think magic Eden sees that along with all these projects they're all gearing up to that and so I think that's where magic Eden wants to play is in that space of when we all spend time in this new digital world whether it be Pudu world or whether it be a you game how do you buy and sell nfts in there how do you trade assets within there and Magic Eden wants to be that Marketplace

and the NFC Marketplace space is the one space in crypto that is just like it feels like a blank canvas still it's been going on for a while there's been a crazy story if you followed along with Marketplace over the last two years of just like disruption and change and Innovation but it's the one thing where you just like you don't know who the clear winner is and you don't even know what it's really GNA look like we were pretty early into the idea of l2s and how we thought it was going to look like and it seems to be unfolding almost exactly how we envisioned and so like that one was somewhat easy for me to see with nft marketplaces I can't wrap my head around it at all and I think part of that just because nfts in general we still don't know exactly how we're going

to use them right there's just so many ways I guess too whereas it's very different for for the rest of crypto but it's a weird space but very interesting to watch talk about very interesting and also very Innovative and hella confusing to be honest is what the heck is ERC 404 H everybody is talking about ERC 404 whenever you see somebody talking about a new token standard which is what ERC those are token standards everybody gets hyped everybody excited it's you know new innovation what does it mean okay well let me break down ERC 44 in the simplest way I possibly can first off this was developed by the Pandora team this is a team that launched an nft

collection and this is an unofficial token standard I want to be clear about that it's unofficial whereas ERC 721 and erc20 are official token standards because they've been vetted they've been used for a while so this is very experimental basically what this new token standard aims to do is Bridge The Divide between fungible tokens and nfts and the main divide is liquidity and fractionalization right you have this problem that exists right now within the nft ecosystem of it's difficult to sell an nft because there isn't enough liquidity because a lot of nfts cost $3,000 and there's not a lot of people

looking to throw around $3,000 you can't buy a fraction of an nft I shouldn't say that you can't do it you can with some of the nft def5 products nf5 blend all these different products that allow you to fractionalize an nft but you can't do it natively within the token standard and that's exact what ERC 404 aims to do is it enables you to treat the token as either a fungible token or as an nft based token and it also enables really unique burn and mint mechanics so look super experimental super early we'll see

where this leads there's a lot of hype around this like definite hype cycle right now like Pandora nfts have gone to I think they're at like two ether or something like that maybe even three e feel more now yeah yeah total hype cycle like this is experimental if you're a project that wants to build on ERC 404 by all means go for it but it's an unofficial token standard make sure you get somebody AIT your smart contracts there's a lot of a lot that needs to happen here before this gets to mainstream if it even does get to mainstream I want to just talk about a couple of ways that could be used the Pandora rocket is at 11.5 e the morning to wild wild wild so 256 million dollar

Barky cat for this thing just doesn't it's been around for like since what February 2u see so a couple different use cases for this like basically what this allows you to do is when you when somebody purchases a full token a full fungible token so let's say you purchased one eth if eth used this token standard then an nft automatically gets minted to your wallet so in the opposite way what you could do is you could purchase a p like a fraction of a token you 01 of a token and as a result you wouldn't get the nft burned to your wallet but you would have

ownership of that nft you would have a fractional ownership of it because you have 0.1 of that token so it allows these interest mechanics I think this is particularly relevant in gaming this is where I think we'll see this the most because what happens a lot in gaming is you play a game and you earn points in the game and then you use those points to purchase things in the game to craft new items in the game like let's say you play a game and you get 10 points and then as a result of 10 points you can craft a sword well imagine doing that on chain with ERC 404 you could now do that in a native way where you earn the token in the game ER and ERC 404 and once you

have a full token then you can craft an item which automatically mints an nft to your wallet so you can see how this connection between the two can lead to a lot of just easier ways that developers can make this connection between a fungible token and an nft love the The Innovation I mean we we need Innovations around tokens right tokens is really everything that we do here on a chain and so if we can make them more expressive then we can innovate better and and also limit risks right like a lot of the things that we talked about especially in regards to like fractionalization you can do but you add risk when it's a bunch of different smart contracts you got to use some

other companies whereas if it can be it all in the same um token standard that it makes it easier cheaper less risk so like these are all just innovations that will improve upon each other so really cool to see that buying a Pandora though for 11 Point whatever no definitely not hype cycle all the way let's airdrop them like it's hot Kai we got five air drops to bring everyone up to date on this week first up we've got Wormhole what's going on with Wormhole yes so Wormhole was one we flagged back in December or November whenever we wrote the salana airdrop guide and we said you can use I think it's called Mayan Finance or whatever and you can Bridge from eth to Soul or other chains and it uses wormhole in the background and so if you

did that you would likely Farm the May air drop if that ever comes as well as a likely air drop from Wormhole well Wormhole yesterday announced that they are actually doing an airdrop so Wormhole for those of you don't know is is a bridge and it's been around for a while they actually had one of the biggest hacks a couple years ago but they've since improved a lot and made a lot of changes to what their protocol is and it's becoming a bigger thing within the ecosystem and now they are looking to decentralize of course and so they are launching a token coming soon we don't know the date yet but the snapshot snapshot was taken February 7th and so if you used Wormhole previous to that then you will likely get a up I'm not sure if there's like a minimum or something all we know is I think it's 17

or 11% of the entire token allocation is going towards uh users so those that actually participated in used Wormhole so hopefully many of you participated in our salana airdrop guide and you will now be getting this airdrop I think this one's like it to be pretty big they're a well well well funded well capitalized company that is a big piece of it for in the space so I would imagine it's going to be pretty good but we don't know yet how they're going to tear it out so like is it based off the amount of that you've bridged is it based off the amount of times you bridged like those are the things we don't know we should get that in the coming days I would think generally this happens pretty quick so we'll keep you posted again watch out for any fake scam links and

stuff Wormhole crypto is their Twitter so just get all your information from that or just keep an eye on web3 Academy we'll make sure to share it for you as well love it next up black panther announces they're doing a token launch what's going on here yeah so this is a uh token that they're launching called Black and they are a asset management protocol that's being built on top of injective and so they are launching their token to injective sakers did we do an injective I think we did an injective guide yes yeah yeah we did and I don't know if this one was on it actually I can't remember but either way as long as you Stak we said you'd probably get a bunch of air drops and if you are staking your injective you will be eligible to get was it 10% of the

total Supply well actually was 10% of total Supply interesting what happened here is they announced this on the 6th of February the community complained and said that wasn't enough which is outrageous to me uh a bunch of people that have probably like transacted on this thing like one time now I don't know maybe it actually is a big part of the community that you know that is really important to us that was putting a complaint but a bunch of people complained and said we want more we want a bigger airdrop and so two days later black panther came out maybe one day later came out and said okay we've readjusted we going to put a bigger proportion to community incentives and it's now 30% that is going to go towards the community for aird drops and launch pad Etc so I guess if you want a little

bit more money just get loud and uh some of these applications will fold and do it I don't think this is going to be a massive one by any means I think they're pretty small but um congrats to those I don't stake any injective I don't hold any injective so I didn't get Ian Lair has opened up for deposits this week what's going yeah so we warned everyone about this last week think it's almost might be cap so you might be too late this shuts down on Friday which is when most people will be listening to this but hopefully we warned everyone last week they did open it up if you want to show the next chart within 24 hours this thing went nuts so there was about two billion dollars worth of eth staked in igen layer and within like 24 48 Hours That jumped from two billion to like 4.5

billion and so pretty wild to see the demand for reaking which I mean we've been saying for a while now since we've been talking about the reaking this is going to be a big deal now part of this is because people want extra apy a big part of this is people want the aird drop there is an air drop coming here and but the big reason is just like this is the next big meta in crypto staking was 2022 and 2023 right Lio rocket pool we heard about all these we did Pro reports on these everyone's been staking it's been great reaking is the next big thing and ethereum is at the Forefront of that as it usually is for most big metas IG ler igen layer sorry is the um is really the leader in this it's really like the only one in this at the moment

so this is a really big deal and we're going to hear a lot more about IG leer in the future I think it closes on Friday and then we don't know when it opens again but the fact that it's going to be about five billion by Friday it's pretty wild quickly one of the biggest protocols in crypto o hot take right there but I I would tend to agree with that last up the airdrop that happened this week that nobody can sell yeah so dim again we talked about this last week it actually went live so you didn't have to do anything so don't click any links it's just in your wallet but it's in the dim Network so you need to go and add the dim into your metamask or your coinbase wallet or whatever if you just go to the dimension Twitter you can see

the link that you can go to and you just add it it's on their page and it just adds into your existing you know metamask coinbase wallet and then the tokens are already in there and so you don't have to claim anything you have to do anything so don't this up and click some random links and get rugged but what's interesting is dimension is a brand new chain I guess you can call it and it's its own network and there's nothing on it yet and so it's very difficult to get rid of your dim because you can't really sell it for anything because there's no apps on this thing and so there is a way to do it but it literally is like I don't know 15 to 20 steps yeah here's a yu. eth showed how to do it 15 Steps and you have to like

it is not easy like I have not done it and I won't do this it is nuts you've got a bridge you've got to swap you've got to buy different tokens to make this like it is insane and so the other option is you can just stake your dim or just wait some of the centralized exchanges are going to add this soon and so you'll be able to just not swap but you'll be able to just like transfer it from your wallet to centralized exchange and then sell it there if you'd like and so crypto.com should be coming soon I heard some rumors that bance has it but I'm Canadian so I can't use bance so I actually don't know but the reason it's gone up in price is one I think it is a good technology but it's at like a billion dollar market cap but it's

mainly because just no one can sell it at the moment and so I would not be buying I mean look I don't want to give Financial advice so do whatever you want sure this is going to be a great technology in the future I just think the moment that this is people can actually sell it it's probably going to dump but let's see I know you although actually you can stake no I I got two portions for two different wallets and I'll probably stake one of them and then sell the other one because supposedly if you stake this you're going to be eligible for a bunch of aird drops that then happen and occur on the dimension Network kind of like the injective play right or the Tia play so if a bunch of apps are building on Dimension then maybe they'll do air drops as well so

let's see but all right time for our favorite segment every week we pick a bunch of tweets from our community and from friends in the ecosystem and we agree disagree or explain each one Kai up first from do9 we have our liquid staking tokens creating a Ponzi I restake eth and I get Stak eth I restake Stak eth and I get PE eth I restake out PE eth and I get XX eth to Infinity staked eth lost its Peg versus eth in the past this will turn into a giant crash one day so first of all if you can see the screen you can

see that this guy has laser eyes I'm pretty sure this guy is like a bitcoiner that just doesn't understand the Innovations occurring on top of ethereum and other smart contract platforms so I would one already going to disagree even if I didn't read what he said but number two this is completely not true a Ponzi is when the money doesn't actually exist right people have to keep buying if there's no more demand then all of a sudden it spirals out that's not the case here there is real value there is real revenues that are coming with each of these and so the API is the extra money that you get when you stake and the extra money you get when you restake it's real revenues that are coming here the risks are also not just like if people leave the thing doesn't spiral out like teral Luna for example or other

pones you just have less and less of the Stak or restak eth and that's fine what actually happens is then your apy goes up if people believe so then there's more incentive for people to come back in and so I would say he's completely wrong on this staked eth is basically where you can delegate your e to so that you can have this like LST token and earn that apy within that which is great those revenues come from people transacting and doing things on top of ethereum where reate gets it reating gets its revenue from is not just like going oh right now the chain is is creating you know about 3% or 4% apy we're just going to double it and someone's going to subsidize it that's not the case here it's they're taking the ethereum validators and saying hey we're going to put you to work in more

things than just ethereum now you're going to validate other networks which is going to bring in additional revenue and so the additional apy that you're getting when you restake is actually coming from real real money and bitcoiners don't really understand this because they don't have real revenues and they don't really look into what's going eum and then in terms of the risk like of course there are risk there smart contract risk and everything the main risk here and it's not that big of a risk is like if your validator goes down that you happen to be supplying the eth for um they get slashed uh and so if they're down for 24 hours they'll get slashed a little bit if they're down for 48 a little bit more and so on and so forth but it's not like they just like take all of their eth and it's just it's

just gone it's a slow gradual slash and ideally they would just come back on and keep running it if they wouldn't they would then remove their eth otherwise they're going to lose all their Capital right but again that Capital doesn't necessarily just like go nowhere it's just slashed from that validator right and then it's actually burned so that's so that's okay for E holders so anyway this guy obviously just doesn't understand the Dynamics of this and so I completely disagree and I just don't ever trust someone that has these laser eyes if they're talking about ethereum stuff they're talking about Bitcoin like what fair fair enough I it's nice to have a a disagree in the show we don't get enough disagrees okay next up we got Koopa truper he says the easiest way to understand farcaster is it's Twitter but everyone has a wallet whether they know

it or not I would like sort of agree but also kind of disagree it's I mean it is an easy way to understand it if you're trying to like reach mainstream however main people have no idea what a wallet is and why a wallet would attach Twitter so I don't I don't think it makes a ton of sense to actually understand what forecaster is there's a couple different layers to it because it's not just about the wallet so your your forecaster account when you create it it's on optimism and so it is a wallet and it is minted on chain right so you do have that account on chain that you own and you could move it to something other than foraster as well right so but that's the only thing that's actually on chain for foraster but the other big difference for foraster is that versus

Twitter let's say is that if Twitter gets shut down then the application that's on your phone is down your social graph is now gone and so is your account right whereas for farcaster there's three layers to it there's farcaster which is a decentralized protocol it is not a blockchain but a decentralized protocol kind of like bit torrent if anyone ever used that to like I don't know get movies and things like that so it's kind of like that so it is decentralized just in a different way and then you have the apps like warcast and others which would be like your Twitter app and then you have your account which is different and the account lives on optimism and by the way far cast of that decentralized protocol is where the social graph lives so if any of your apps on top of this ever

went down then sure you couldn't use that app but you could go use a different app and your social graph still exists because it's on the protocol itself and then you also still have access to your account because that's on optimism so Twitter doesn't have that so yes there is some wallet functional ities that exist inside of arter which are great but it's the also the ability that your social graph is is portable uh and you own it essentially so I think there's just there's more nuances to what he's saying I appreciate the detailed explain that you gave us there Kai very nice okay next up we have the defi Edge he says there's a limit to how much money you can save but no limit on how much you can earn forget about cutting back on lattes and focus more on

learning how to make money I also agree and disagree on this one and I will explain as to why I definitely think you should put more time into learning how to generate income because like he said there is no cap and so the more income you can uh generate especially if like I don't know if you if you're really good at figuring out how to get income then doesn't matter what happens in the world like if you lose your job your business goes under like you can find more ways to get it right if you're good at it so it's it's a very important skill to create and he's right there is an unlimited amount to that there's no caps if you can just figure that skill out like you're set that said there are a lot of people who have a lot of money and they

spend it all and they have no idea how to manage their money and so I think learning how to manage your money and save your money is also extremely important but that's like a first skill that you should learn is how to save and anyone can do it you don't even need to like you can make the smallest amount in the world and you still are able to save and I think a lot of people don't get that and so thus they don't save and so I feel like the first thing you want to learn is to save and then you're like you want to go all in on creating more income and if you can do those two things like You're So set up yeah I completely agree with your take on this it's a good agree disagree like first step learn to save budget for your life

everybody should have a budget don't just spend your money without thinking about it like 99% of humans do and then also at the same time yeah learn to make more money and that's why you listen to web3 Academy not Financial advice but we're here to help you out in that way okay next up we've got Brad who says people are going to over play salana halting or salana going down eth prioritizes liveness at the cost of scalability salana prioritizes scalability at the cost of liveness both are secure both are sufficiently decentralized people need to come to terms with the chain priority differences I completely agree on this I thought more people were going to be loud about salana shutting down there was the day of of course your typical

eth Maxis were kind of you know gling on that though I haven't seen much lately and that's probably because salon just gone up to 105 bucks today a couple days later and so everyone's just like whatever we're still cruising so I I actually thought people would overplay it more than they have but maybe people are just coming to terms that they're starting to understand this whole idea here but I don't know but again like I said at the start of the show they both have sort of different priorities in the beginning they're both going to the same end goal but they're taking different ways to get there and I think that's that's okay look when salana has trillions of dollars on it and thousands of apps and like everyone's using it okay it cannot go down ever like that like you need to figure that out

but like right now they got a like a couple air drop Farmers on there like dinking around like it's all right I'm K like I'm kidding Sal has a lot of great things on it I'm not bashing Sal by any means it's just like it's not that important right now it's okay if things go down I want you to drink wine more often Kai you're great today the last one aremis says friendch six months ago verse year to dat perspective is everything so he's two AR has put up two charts here the first chart shows the last year 2023 friend Tech and you can see about a three four month period where they are between 10 to they got up as high as like

70,000 active users and then you go to the second chart which shows frch in 2024 and they're ranging between like 500 to 6,000 active users what's frch J I don't even I don't know what frch is okay yeah like look I mean Jay and I credits to to us actually Jay is we said this thing's a hype cycle it doesn't make sense there's no sustainability in this and you know we're right now that's T to say they can't turn around and figure things out but their current model that they had just didn't make any sense it was a great Innovation it did sort of give some signal back into the market which was nice like this was kind of the thing that kept everyone excited in the late summer and got us through to when the the bull market started to come

back so like kudos to what French did for us but their model just didn't make any sense in my opinion but I I they have a V2 coming out soon hopefully they make some cool changes but now they've got to compete with farcaster which is on a run so let's see what where things go I think this line P perspective is everything is just such a good reminder to take a deep breath and zoom out if you ever have a week where you're you have fomo that you missed out on a 10% pump or you're scared that you are part of your one of your bags is down 30 % don't get caught up in that week don't get caught up in that day take a deep breath zoom out look at the bigger

picture we're here for the long term we're building for the long term there's going to be big ups and big Downs there's going to be a lot of apps that have big hype Cycles don't get caught up in all of it that's why you listen to web 3 Academy because we tell you what's legit and what's not and we give you the perspective that you need to stay sane to stay grounded in this constantly transforming onchain world that's a wrap on today's episode thanks so much for listening in everybody as always please give us a like give us a comment make sure you answer the poll question on whatever platform you're listening on we want to know are you using salana more or using E2 more let us know have a great weekend y'all see you next week

thank you for listening to web3 Academy your one trusted source to capitalize on the next big phase of the internet if you enjoyed this episode please share it and subscribe or follow so that you don't miss the next one while you're at it there's a link in the description for our free newsletter where we provide timely and relevant web3 insights so you can confidently build and invest in web 3 make sure to subscribe today one final note this podcast is for educational purposes only and nothing we say is financial advice crypto and web3 are risky and you should never invest more than you're willing to lose thank you friends and see you in the next one