Casey Wagner

As global economic outlooks for 2023 continue to call for higher interest rates and slowdowns in economic growth, equities and crypto are heading toward the end of the year deep in the red. 



Bitcoin, which recovered from its sub-$16,000 level early Tuesday, is currently down more than 66% year to date. Ether, similarly, is approaching a 70% decline since January 2022. Equities are also likely to end the year <a href="https://blockworks.co/news/bitcoin-diverges-from-tech-stocks-as-ftx-fallout-continues" target="_blank" rel="noreferrer noopener">solidly lower</a>, with the S&amp;P 500 and Nasdaq Composite indexes currently 17% and 30% lower year to date, respectively.



“Bitcoin could continue to stabilize here if Wall Street rebounds, but that seems unlikely as this bear market for stocks has yet to bottom out,” Edward Moya, senior market analyst at Oanda, said in a note Tuesday. “Bitcoin has support ahead of the $15,500 level but if that does not hold, technical selling could send prices toward the $13,500 region.”&nbsp;



Two-year Treasurys now yield around 0.65% more than ten-year Treasurys, according to data from the St. Louis Federal Reserve. A negative spread has historically been a leading indicator of a recession, analysts note. Every recession from 1955 to 2018 has been preceded by a negative spread between six months and two years before the recession occurred, according to data from YCharts.&nbsp;



The current spread of -0.65% is the widest since 1981, DataTrek Research co-founder Nicolas Colas wrote in a note Tuesday.&nbsp;



“The intellectual underpinning of 10s minus 2s being a recession indicator is that it compares Fed monetary policy (2-years) with the market’s take on the neutral rate of interest (10-years),” Colas said. “A large gap, such as now, says policy is very restrictive and by a historically wide margin.”



Based on how equities are currently standing though, traders are either betting that the US economy will fare well in a deep recession, and/or businesses are prepared to weather the storm, Colas added.&nbsp;



Commercial banks are tightening their lending standards, making it more difficult for businesses and individuals to borrow money, according to an <a href="https://www.federalreserve.gov/data/sloos/sloos-202210.htm" target="_blank" rel="noreferrer noopener">October survey</a> from the Fed. Coupled with steep interest <a href="https://blockworks.co/news/cryptos-stocks-rally-on-fourth-straight-0-75-interest-rate-increase" target="_blank" rel="noreferrer noopener">rate hikes</a> from the central bank that show no sign of letting up, economists are calling for slower growth in the coming months.&nbsp;



The Richmond Fed’s <a href="https://www.richmondfed.org/research/regional_economy/surveys_of_business_conditions" target="_blank" rel="noreferrer noopener">regional surveys</a> of business activity, released Tuesday, showed manufacturing activity continued to slow in November. Meanwhile, the composite manufacturing index stayed negative, the data showed.&nbsp;



“The economy is clearly weakening here and inflation should continue to come down as wages and employment decline,” Moya said.



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Heightened Recession Fears Mean Uphill Battle for Equities, Crypto

Bessie Liu

Ethereum is entering its fourth consecutive week of deflationary issuance as activity on the network grows.



A deflationary issuance rate for cryptocurrencies means that the number of tokens being burnt is greater than the number of tokens being minted. This implies that the token is limited in supply compared to demand, giving the currency greater purchasing power.



Growing activity in decentralized platforms could indicate more people turning to DeFi after the collapse of its centralized competitors last year, Michael Bentley, CEO and co-founder of DeFi lending protocol Euler, told Blockworks.&nbsp;



“Following <a href="https://blockworks.co/news/eth-turns-deflationary-again">protocol upgrades</a> last year, Ethereum has an in-built fee burning mechanism that ensures that the more people transact on the network, the more ETH gets burned,” Bentley said.



At the time of writing, the annualized inflation rate for Ethereum currently sits at -0.01% according to information from <a href="https://ultrasound.money/" target="_blank" rel="noreferrer noopener">ultrasound.money</a>.



<blockquote class="wp-block-quote">
“There&#8217;s so much activity on Ethereum in early 2023 that ETH itself is becoming more and more scarce, and has even recently become a deflationary asset,” Bentley said. 
</blockquote>



Over the past seven days, Uniswap’s universal router has burned almost <a href="https://etherscan.io/address/0xef1c6e67703c7bd7107eed8303fbe6ec2554bf6b" target="_blank" rel="noreferrer noopener">2,500 ETH</a>, taking the top spot in the <a href="https://ultrasound.money/#burn" target="_blank" rel="noreferrer noopener">burn leaderboard</a> previously occupied by OpenSea.



Uniswap is the second-largest decentralized exchange in DeFi today in terms of total value locked, at <a href="https://defillama.com/protocols/dexes" target="_blank" rel="noreferrer noopener">$4.03 billion</a>, behind Curve Finance. But Uniswap is the clear leader when measuring 24-hour trading volume with <a href="https://defillama.com/dexs" target="_blank" rel="noreferrer noopener">​​$1.78 billion</a>, information on DefiLama shows. That volume is what’s driving Ethereum fees.



According to <a href="https://www.blockworksresearch.com/" target="_blank" rel="noreferrer noopener">Blockworks Research</a> analyst <a href="https://twitter.com/MattFiebach" target="_blank" rel="noreferrer noopener">Matt Fiebach</a>, “Ethereum gas fees hover around 40 gwei and a 7-day moving average over 25 gwei, the highest seen since July of last year.” 



“With Uniswap leading the pack as the largest gas guzzler by a mile over the last 7 days, it is clear that crypto market participants are risk-on and actively trading high beta bets,” Fiebach said.



This sentiment is shared by Brent Xu, CEO and co-founder of Umee, a Web3 bond-market platform for building DeFi utility, who told Blockworks that the increase in network activity on Ethereum is the primary reason that we see a deflationary issuance on the chain.



“This is a good sign. It means that Ethereum is doing well — notably since daily network fees are up substantially since their December lows,” Xu said.&nbsp;



Xu also notes that user activity is increasing not only on Ethereum but on other blockchains as well.&nbsp;



“More broadly, all this is indicative of positive signs for the broader crypto ecosystem,” he said.



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Network Activity on Ethereum Is Up, With Uniswap Leading the Charge

An Ad Hoc group of borrowers is hoping to get their hands on assets currently held up in legal limbo in Celsius’s bankruptcy case, according to a Tuesday court filing.&nbsp;



The group argues that cryptocurrency put up as collateral for loans should not be included in the bankruptcy estate, according to the <a href="https://ecf.nysb.uscourts.gov/cgi-bin/show_temp.pl?file=file0.628557088642509.pdf&amp;type=application/pdf">complaint</a> filed in US Bankruptcy Court for the Southern District of New York.&nbsp;



The group is looking for a declaratory judgment ruling that the collateral crypto be returned to the original owners. The group is also requesting <a href="https://blockworks.co/tag/celsius">Celsius</a> provide accounting documents.



The complaint makes the argument that “It is inequitable and unjust to permit the Debtors’ bankruptcy estates to continue to retain the Collateral.”



The filing alleges that Celsisus “engaged in deceptive trade practices,” committed fraud, and violated various consumer finance laws and licensing requirements.



The complaint lists eleven claims for relief including:



<ul>
<li>Declaratory Judgment Pursuant to Bankruptcy Rule 7001(9) that Collateral is Not Property of the Estate</li>



<li>Accounting and Turnover of Collateral</li>



<li>Deceptive Trade Practices</li>



<li>Consumer Fraud</li>



<li>Unlawful Provision of Money Services</li>



<li>Fraudulent Misrepresentations</li>



<li>Declaratory Judgment that the Loans are Void and Unenforceable Due to Fraudulent Inducement</li>



<li>Breach of Contract</li>



<li>Unjust Enrichment</li>
</ul>



Borrowers have not been able to access funds from their Celsius accounts since June 2022, the complaint alleges. Celsius filed its voluntary petition in relief with the bankruptcy court in July 2022.&nbsp;



The complaint comes shortly after it was revealed that it will likely be impossible to make all creditors whole.&nbsp;



A federal bankruptcy judge <a href="https://blockworks.co/news/not-enough-value-left-to-repay-celsius-customers">ruled in January</a> that Celsius Network owns the tokens customers deposited into its interest-bearing accounts before the lender went under. When <a href="https://blockworks.co/news/celsius-to-file-for-bankruptcy-imminently-report">Celsius filed for bankruptcy</a>, it had about 600,000 accounts in the company’s highest yield-bearing cryptocurrency products.&nbsp;



As of July 2022, such accounts totaled a scant $4.2 million, according to a January court filing.&nbsp;“There simply will <a href="https://blockworks.co/news/not-enough-value-left-to-repay-celsius-customers">not be enough value available</a> to repay all [Celsius customers] in full,” the <a href="https://cases.stretto.com/public/x191/11749/PLEADINGS/1174901042380000000067.pdf">filing</a> said.

Celsius Borrowers: Bankruptcy Estate Should Return Collateral

Michael Bodley

Cryptocurrency valuations have at least one thing in common with a long fly ball to center field: They’re going, going, gone.



The sentiment applies across the digital assets board, extending to spot assets, the cost of putting on overlying derivatives trades, stakes in startups and structured products. And the list goes on. And on. And on.&nbsp;



The next time Aaron Judge of the New York Yankees smashes a fastball over Fenway’s towering Green Monster, Red Sox fans are going to be up in arms — what else is new?



For institutional cryptocurrency traders and the allocators that back them, though, the MLB analogy equates to an entirely different outcome than the irate Bostonians. <a href="https://blockworks.co/news/bargain-basement-opportunity-for-crypto-volatility-traders">There’s abundant opportunity this quarter</a> and beyond to rake in substantial sums out of all the carnage, provided one has the capability, plus the connections, to sell the correct kind of strategy to seeders and limited partners.



Market participants told Blockworks that — by and large — there’s no shortage of silver linings, ones that smack the never-ending depressive sentiment squarely across the face. This analysis also relies on previous Blockworks reporting.



That’s not to say raising capital in this environment is an easy feat these days.



Digital asset’s epic, at times almost unfathomable, beating in 2022 backed crypto natives — and Wall Street’s top traders who have at least dabbled in the sector — into the tightest of corners. Success stories in the fourth quarter, at least in terms of performance and known notable capital raises, were hard to come by.



Untold billions of capital, especially Wall Street dollars, were still hanging in the yearend balance.



The metric is difficult to quantify, but every source arrived at the same general conclusion on the market’s rollercoaster-like volatility: There are virtually endless and lingering opportunities to derive alpha via strategies that are tailor-made for all the financial insanity.&nbsp;



But those opportunities are likely fleeting.



<h2>Turning the (finance) corner</h2>



From a macro perspective, the corner, in more ways than one, is already turning — or has already turned — for the better.



Even if viewpoints on what’s to come vary, vary a whole lot.&nbsp;



The S&amp;P 500 and the NASDAQ have clawed back 2022 losses in a big way, inflation has cooled, and the <a href="https://blockworks.co/news/federal-reserve-raises-interest-rates-25-bps">Federal Reserve has not been ramping up interest rates</a> as aggressively.&nbsp;



The relative bullishness has extended to the world of Web3, albeit to a more measured extent.



Case in point: <a href="https://blockworks.co/news/altcoins-soaring-2023">Altcoins have taken off</a>.&nbsp;



The industry’s cumulative market cap clocked in at $754 billion on Jan. 1, according to TradingView data, far from its bull market standing in the trillions.&nbsp;



It’s now hovering around the $1 trillion mark, equating to a 25% recovery in a little more than a month’s time — handily outpacing the NASDAQ&#8217;s own bounce back of about 15%, as well as the S&amp;P 500’s approximately 8% rebound from 2022’s worst showing since 2008.&nbsp;



Longtime traditional finance players with sway have taken note. Cambridge Associates, in one example, has not stopped the institutional allocation adviser’s developing push into digital asset due diligence. Hedge fund multi-billionaire Steve Cohen’s Point72 has pushed onward in the same (buy-side) fashion, not to mention Cohen’s nascent and progressing proprietary trading firm that started taking shape last year.



Read More: <a href="https://blockworks.co/news/inside-crypto-lp-big-leagues">The inside scoop on what flailing crypto investors told their LPs in Q4</a>



Brevan Howard Digital — the <a href="https://blockworks.co/news/brevan-howard-scores-largest-crypto-hedge-fund-launch-ever">largest crypto hedge fund launch</a> on record at the time — is said to have dipped a bit in terms of the performance of its core strategy from time to time in 2022.&nbsp;Its more recent showing isn’t known.



The entity at the time represented one of the largest one-time commitments to digital assets by a traditional investment manager. It was heralded as a mammoth indicator of the seriousness of the world’s top macro investors taking the Web3 plunge.&nbsp;



The affiliate of the long-time multi-strategy manager <a href="https://blockworks.co/news/brevan-howard-crypto-layoffs">cut some underperformers</a> toward year-end 2022. Like so many of its peers did — or are in the process of doing now.



For many institutions, though, it’s been more of a pump-the-brakes effort, in many cases, not a get-us-out-of-here moment.&nbsp;



Attractive valuations are a big reason why.&nbsp;



Jeff Reed, global head of sales for crypto market maker Liquidity One, told Blockworks that “valuations across the board” from blue-chips like bitcoin and ether to stakes in sector startups, are “extremely attractive at this point” in the cycle.&nbsp;



“It really just comes down to what kind of experience you had [in the fourth quarter and in 2023 so far] — and how much dry powder you now have available,” Reed said.



Added Reed in an interview last week: “All the signs I’ve been seeing over the last three weeks are extremely positive.”



<h2>FTX? Moving on&nbsp;</h2>



Crypto traders of all ilks are really, really sick of talking about the saga revolving around FTX’s collapse in the fourth quarter. They’re also very much dealing with the aftershocks, in terms of volatility and liquidity (or lack thereof, given funds stuck on the bankrupt exchange in some cases).



“People got really spooked by FTX,” Reed said. “They wanted to let that play out and see what was going to happen and re-adjust. The more conservative [investors] that may be coming into crypto for the first time, they’re doing more due diligence. They’re taking more time before they invest their capital.”



Armando Aguilar, co-founder of venture startup Aztlan Capital — <a href="https://blockworks.co/news/latin-america-growing-crypto-hotbed">which focuses on Latin American blockchain plays</a> — told Blockworks that “a lot of people started relatively cash heavy” in 2022’s fourth quarter as the market took (yet another) dive.&nbsp;



Seed rounds raised in the last couple of months of last year, Aguilar spotted at the time, were clocking in around the $5 million (or less) valuation mark, typically on lower multiples — with net check sizes of less than a million dollars.&nbsp;



More recently, Aguilar said he’s picking up on “quite a few deals that are now [around] the $10 million to $25 million mark.”&nbsp;



Recent examples sourced from previous Blockworks’ reporting fitting that bill:



<ul>
<li>Block Joy, a Web3 infrastructure-focused startup, landed a Series A round of $12 million</li>



<li>Digital assets security specialist Hypernative locked in a $9 million seed raise led by IBM’s venture arm</li>



<li>Another crypto infrastructure provider, Spatial Labs, snagged $10 million in a round with Marcy Venture Partners, a firm affiliated with Jay-Z</li>
</ul>



The number of bets venture capitalists are taking on crypto startups of late has been up from the same period a year ago — though the individual check sizes have been down.&nbsp;



Companies <a href="https://blockworks.co/news/funding-roundup-investors-bidding-small">raising rounds last week took in a cumulative $185 million</a>, per <a href="https://defillama.com/raises" target="_blank" rel="noreferrer noopener">DeFiLama</a> data. That’s a far cry from the $578 million startups raked in over the same seven days in 2022.&nbsp;&nbsp;&nbsp;



But, according to the same data providers, 20 entities took in capital this time around. Just three did the same in 2022, including FTX…



There’s a recent and building appetite for risk assets, according to Aguilar, who attributed the sentiment shift to macro factors — including the Federal Reserve showing signs of cooling its quantitative tightening measures, inflation metrics dropping from near-historic 2022 highs, and top technology stocks booming.



Coinbase <a href="https://blockworks.co/news/coinbase-stock-soaring">has boomed even more</a>.&nbsp;



Consider that Meta’s stock had its floor fall out in 2022, dropping more than 40% at one point. Still, the share price of the social media giant — now <a href="https://blockworks.co/news/meta-metaverse-losses-q4-2022">focused on metaverse initiatives</a> — was down roughly 17% over the last 12 months through Tuesday afternoon in New York.&nbsp;



That’s because it was up about 55% in the five or so weeks since 2023 began alone.



Traders and analysts alike pay close attention to correlations between tech stocks and spot cryptoassets which, in turn, inform the valuations of crypto startups over the long haul. In other words, what’s good for Big Tech is often good for crypto getting big.



<h2>Venture, spot, NFTs…</h2>



NFT markets haven’t been immune to the market’s shifting winds.&nbsp;



Sasha Fleyshman — a portfolio manager for the established and <a href="https://blockworks.co/news/dodging-worst-of-ftx-arca-wont-stay-stagnant">digital assets-focused investment manager</a> <a href="https://blockworks.co/tag/arca">Arca’s</a> actively managed NFT vehicle — told Blockworks that the fourth quarter’s digital collectibles downturn was likewise driven by “the actual macro deteriorating” over the last six to 12 months. Arca’s NFT strategy takes a longer-term time horizon and imposes a corresponding lockup on the capital of its limited partners. Fleyshman, who is a crypto veteran, said the bullish buildup to the dropoff in some ways was reminiscent of the initial coin offering (ICO) era in 2017 — “where everything was getting funded” and “everyone was excited, [because] things were rocketing higher.”



Well-documented liquidity complications circa last fall, at least in part, triggered the “rapid fall,” which Fleyshman compared to an elevator rising and falling. But in a faster fashion.



Sounds a lot like Disney World’s <a href="https://youtu.be/3zo64_w0pyo?t=248" target="_blank" rel="noreferrer noopener">Tower of Terror</a>.&nbsp;



There was, for sure and at the time, a “level of despair” among big-money allocators, according to Joe Marenda, Cambridge Associates’ global head of crypto investing.&nbsp;



And it was a deep despair, the Cambridge partner told Blockworks, with a bleaker outlook than last year’s preceding down periods. But <a href="https://blockworks.co/news/brevan-howard-crypto-layoffs">things are looking up</a>.&nbsp;



“People were like, ‘Oh, boy, this is gonna’ be a bad one,’” Marenda said. “That was very similar to what the crypto winter’s bottom in the last round felt like, where people were beginning to question [if] they should go back to Big Tech, go back to traditional finance…I feel like we’re past that now. So, I feel like we’re past the bottom.”



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What’s Bad for Crypto May Be Good for Crypto Traders

The blockchain industry has evolved significantly from its early years. A novel move to provide the world with peer-to-peer digital cash has birthed several multi-billion dollar networks and applications with the potential to improve the global financial system.&nbsp;



However, the current state of blockchain technology is far from perfect and is akin to building multiple highways to a single destination. <a href="https://earthweb.com/how-many-blockchains-are-there/" target="_blank" rel="noreferrer noopener">Over 1,000 blockchain networks</a> offer the same use case: powering decentralized applications. Users interact with too many protocols and still pay ridiculously high fees to access the most popular blockchains. The rest of the networks are lonely highways with little to no user traffic or developer activity.



The idea of a multichain future has emerged in recent years as a solution to the highly-fragmented state of blockchain networks. This piece explores a new definition of the multichain future where one network is home to multiple chains. This is in contrast to the previously recognized definition of multichain where various dApps are designed to interact with a handful of layer-1 blockchains. A well-known example is the decentralized exchange Pancake Swap, which is on both the BNB Smart Chain and Ethereum. 



To illustrate this new definition, the following article will dive into a cutting-edge project named <a href="https://skale.space/" target="_blank" rel="noreferrer noopener">SKALE</a> that adopts a unique approach to building high-performance networks fit for mainstream adoption.



<h2>The current state of blockchain networks</h2>



Blockchain networks provide the underlying infrastructure for users to access the myriad of decentralized applications built by developers. Yet, user experience on different blockchains varies dramatically, and the poor interoperability between these systems makes it difficult for developers and users to switch from one network to another seamlessly.



A classic example of such difficulty is when users try to interact with different blockchains by moving funds across different networks using bridge protocols. Aside from a confusing user experience on bridge protocols and limited interoperability, users take on immense security risks, as evidenced by the <a href="https://blog.chainalysis.com/reports/cross-chain-bridge-hacks-2022/" target="_blank" rel="noreferrer noopener">over $2 billion</a> stolen from blockchain bridges in the past year.



These risks exist because every blockchain network and their respective bridges have its own sets of rules and protocols. Since there are so many blockchain networks with segmented developer communities, innovation is fragmented across those networks, which adds to a confusing user experience. In this reality, no one wins. When developers and users are spread across L1s and L2s, innovation is dispersed or hidden away in silos. 



With all this in mind, it’s unsurprising that the Ethereum mainnet remains the most widely used blockchain despite its relatively high gas fees. The complexities of going cross-chain by adopting layer-2s or the newest layer-1 blockchains impedes on user adoption. The power of Ethereum’s network effects are hard to overstate for users and even harder to overcome for up-and-coming blockchains.&nbsp;



<h2>Is a new multichain model the key to scaling blockchains?</h2>



The perfect idea of a multichain future is one where developers and users can glide across different networks and applications seamlessly and intuitively. However, the prospect of such a multichain world grows increasingly bleak with each new blockchain that arrives on the scene. The diverse set of protocols and systems involved makes interoperability increasingly tricky. While blockchain technology depends on an inherently decentralized structure far from any singular governing authority, there’s still a long-ignored opportunity in the space for establishing <a href="https://www.investopedia.com/terms/s/standardization.asp" target="_blank" rel="noreferrer noopener">standardization</a> in the industry. An example of standardization in the traditional financial system is the requirement for publicly listed US companies to adhere to generally accepted accounting principles (GAAP). This enables investors to research two companies and know they’re comparing apples to apples.



Similarly, Web3 could benefit from the efficiencies enabled by standardization, and perhaps a new multichain model built from the ground up is the solution. SKALE is a modular blockchain network that offers a multichain experience to power mainstream-level applications. SKALE’s infrastructure consists of EVM-compatible, app-specific blockchains and hubs dedicated to different categories of Web3 applications. Hubs can be thought of as <a href="https://skale.space/blog/modular-skale-chains-and-the-new-hub" target="_blank" rel="noreferrer noopener">service stations</a> that, according to SKALE co-founder and CEO Jack O&#8217;Holleran, “provide liquidity, swapping, and marketplace services to dApp chains” dedicated to gaming, NFTs, and other use cases. This Hub Architecture connects each individual, yet still interoperable blockchains called SKALE Chains.



SKALE launched its mainnet in 2020 and has rapidly scaled its solution with a focus on providing <a href="https://blockworks.co/news/the-future-of-web3-needs-zero-gas-fees" target="_blank" rel="noreferrer noopener">zero gas fees</a> to users. The SKALE network taps into the Ethereum network’s security to achieve consensus through mainnet smart contracts, known as the SKALE Manager, that controls staking delegations, validator nodes, SKALE chain deployment, and other core functionalities. The network’s validator incentives are derived from the costs incurred by developers who pay a fee to launch and sustain application-specific SKALE chains.&nbsp;



While the multichain future is uncertain to industry observers, <a href="https://cointelegraph.com/news/a-multichain-approach-is-the-future-of-the-blockchain-industry" target="_blank" rel="noreferrer noopener">they acknowledge</a> that “it could revolutionize the way we use blockchain technology.” SKALE’s version of multichain is the perfect platform for developers and users to realize the desired outcome. 



SKALE is an accessible platform for the broadest community of blockchain developers because each chain is EVM-native. Each application-specific chain’s high throughput and scalability enable developers to offer zero gas fees to users while building a wide range of compute-intensive dApps like <a href="https://exorde.network/" target="_blank" rel="noreferrer noopener">Exorde</a>, which is currently unimaginable with other blockchain networks. This zero-gas environment is enabled by SKALE fuel or <a href="https://docs.skale.network/learn/skale-chain-fuel" target="_blank" rel="noreferrer noopener">sFuel</a>. This unique approach to network security prevents spam transactions or DDoS attacks through this gas token. Because it’s valueless, it is a purpose-built tool to help developers focus on scaling on secure chains without the distraction of speculation.



Lastly, a uniform set of tools support all SKALE chains&#8217; interoperability, allowing users to freely move assets without the risks associated with contemporary multichain bridges. For example, <a href="https://skale.space/blog/what-is-skale-metaport" target="_blank" rel="noreferrer noopener">SKALE’s Metaport</a> is a UX widget that allows users to interact with underlying API layers and bridge their assets between SKALE chains. So if someone wants to transfer a game token from the <a href="https://nebulachain.io/">Nebula Gaming chain</a> to the <a href="https://blog.ruby.exchange/co-launching-the-europa-liquidity-hub-for-skale/" target="_blank" rel="noreferrer noopener">Europa Liquidity chain</a> to yield farm, and back again, Metaport allows them to do this safely and intuitively. 



<h2>SKALE’s multichain model delivers huge benefits</h2>



The opportunities for a multichain network with mainstream-level capacity for dApp developers and users are limitless. SKALE’s current infrastructure brings the following outstanding benefits to users, developers, and businesses:



<h3>1. Ease of adoption</h3>



In 2022, SKALE <a href="https://skale.space/blog/skale-2022-year-in-review-building-the-foundation-for-the-future-of-web3" target="_blank" rel="noreferrer noopener">recorded more than</a> 30 million transactions spanning over 240,000 users. While these are strong numbers, the SKALE ecosystem is hoping to maximize the unique opportunities of the bear market to continue onboarding new users and empower developers to build high-performance dApps on the protocol.



The key to a protocol’s long-term success is continuous developer investment, and as such, SKALE is compatible with <a href="https://soliditylang.org/">Solidity</a> and the entire EVM suite of products. This uniform set of protocols and applications makes SKALE easier for developers to build on and ultimately benefits users with a better experience on more applications. 



<h3>2. Sustainability</h3>



SKALE implements a highly sustainable proof-of-stake consensus model that allows each validator to serve as a sub-validator for up to eight SKALE chains. Furthermore, the adoption of application-specific chains allows the network to scale sustainably.&nbsp;



Adding new chains or increasing network usage does not impact hardware requirements for network validators. Existing validators are randomly assigned to new SKALE chains, while developers only add new chains as their user base increases. As dApps grow their user base and/or transaction count, their SKALE chain will be able to linearly scale without needing to worry about high costs or network congestion.



<h3>3. Predictable fees for developers and users</h3>



As mentioned earlier, SKALE is the only blockchain that guarantees <a href="https://blockworks.co/news/the-future-of-web3-needs-zero-gas-fees" target="_blank" rel="noreferrer noopener">zero gas fees</a> for end users. The network achieves this by using a two-way subscription model. Initially, developers pay a one-time fee (via staking SKL) determined by SKALE governance to launch their chain.



Next, each entity that creates a SKALE chain pays a monthly subscription fee (paid from the staked SKL) to cover the resources needed to operate the chain. Because the subscription fee largely depends on dApp usage on their chain, developers and businesses can predict costs while offering users a gasless experience. The staking of SKL and payment to validators are controlled by the SKALE manager on Ethereum. 



<h3>4. Interoperability across SKALE chains and Ethereum (and other networks)</h3>



SKALE’s modular blockchain design allows for increased interoperability within the different chains in the ecosystem. SKALE unlocked this interoperability with its recent V2 upgrade, which among other things, enables the smooth transfer of assets across chains using its Metaport widget.



SKALE is already interoperable with Ethereum, hosting 25 of its core smart contracts on the legacy network. Additionally, users can mint Ethereum-generated tokens (such as ERC-20 and ERC-721) and use them directly on the SKALE network. SKALE’s interoperability with Ethereum and its Hub Architecture solves the persistent problem of liquidity fragmentation, as SKALE dApps can easily tap into liquidity from across the EVM ecosystem. The <a href="https://blog.ruby.exchange/co-launching-the-europa-liquidity-hub-for-skale/" target="_blank" rel="noreferrer noopener">Europa Hub</a> solves for this liquidity fragmentation seen so often through intensive on-chain applications such as gaming and NFTs. 



<h3>5. Better user experience</h3>



So far, the lack of an intuitive user interface has held back much of Web3’s innovations from gaining the adoption of Web2 apps. But the future of Web3 must be user-friendly, offering the same level of convenience as its predecessor. SKALE’s multichain technology offers a clear roadmap to a drive at such an outcome by allowing multiple Web3 use cases to run in the background while users benefit from a simple yet capable interface.&nbsp;



Because SKALE users do not need SKL to pay transaction fees, they can focus on dApp experiences without worrying about fee spikes or network congestion. Users can also easily migrate assets across SKALE chains using Metaport, which replaces the current complexities posed by contemporary cross-chain bridges that connect different blockchains. These complexities are a common complaint lodged against Web3, and enterprises would benefit the most from a viable solution. A consensus is growing louder that Web3 won’t fully hit the mainstream until it provides an almost Web2 look-and-feel for users. The argument is well made that the average user doesn’t have the time or interest in learning a new suite of tools to interact with Web3. If that’s the case, enterprises would be smart to implement tools like Metaport that allow for “invisible” Web3 experiences where users don’t even know they’re necessarily using Web3. 



<h2>The future is multichain&nbsp;</h2>



SKALE is setting the tone for the multichain future by pioneering a novel approach to scaling Ethereum. SKALE provides interconnected application-specific chains that tap into Ethereum&#8217;s security while supporting all EVM-compatible dApps and assets.



A multichain world where users adopt different blockchains simultaneously is highly unsustainable since diverse networks implement different protocols and rules, making them less interoperable. Plus, the user experience is greatly diminished with high transaction fees and the complexities of migrating from different blockchains.



But SKALE chains set themselves apart by being highly interoperable with full capacity to host dApps from different Web3 verticals. Everyone wins — users enjoy a gasless experience while developers are able to access a dedicated infrastructure with infinite scalability. SKALE’s network of networks delivers an unparalleled Web3 experience and provides the springboard for multichain technology to reach its full potential.



This content is sponsored by <a href="https://skale.space/" target="_blank" rel="noreferrer noopener">SKALE</a>.



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The Investor’s Guide to the Multichain Future

Shalini Nagarajan

Swiss crypto-focused bank SEBA has hired a former JPMorgan banker to head its Asia Pacific division.



Amy Yu previously worked within JPMorgan’s prime brokerage services division for six years. She earlier held roles in other traditional financial institutions, UBS and Nomura.&nbsp;



Yu ventured into the world of crypto in 2018, joining crypto exchange BitMEX to develop services for institutional clients. Then she became head of sales for the Asia Pacific region at Genesis, which <a href="https://blockworks.co/news/genesis-in-chapter-11-wont-insulate-silbert-winklevoss-says">filed for bankruptcy</a> in January.



Her appointment to SEBA signifies the company’s intent to expand across Asia Pacific, and she will initially be based in Singapore, according to a <a href="https://www.seba.swiss/media-and-investors/SEBA-bank-appoints-amy-yu-as-apac-ceo" target="_blank" rel="noreferrer noopener">press release</a>. In November, Hong Kong became SEBA’s first strategic location to drive growth in the region, with a new office set up there. 



Yu joins the bank as someone with deep domain expertise in both crypto and traditional banking in the region, SEBA said.



“Following the recent opening of our office in Hong Kong, Yu has the successful track record and expertise to capitalize on this momentum and lead our business through the next pivotal phase of development in the region,” Franz Bergmueller, SEBA Bank’s CEO, said in a statement.



Backed by Swiss wealth management group Julius Baer and founded in April 2018, SEBA operates a universal suite of regulated banking services in the digital economy. Ahead of the Merge last year, the bank implemented <a href="https://blockworks.co/news/seba-bank-enables-ether-staking-as-merge-nears">ether staking services</a> for large clients.



Yu acknowledged the crypto industry’s troubles of last year in an <a href="https://www.bloomberg.com/news/articles/2023-02-07/crypto-bank-seba-hires-ex-jpmorgan-banker-as-asia-pacific-ceo" target="_blank" rel="noreferrer noopener">interview</a> with Bloomberg, saying there are lessons to be learned from the recent crisis.



The bank currently has just three staff members in Singapore, and future hiring will depend on how licensing goes, she added.



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Ex-JPMorgan Banker Hired as Swiss Crypto Bank’s APAC Head

A new US Federal Reserve rule has further cemented the central bank’s wariness about cryptoasset activities.



A <a href="https://public-inspection.federalregister.gov/2023-02192.pdf" target="_blank" rel="noreferrer noopener">statement</a> issued by the board of governors of the Federal Reserve System on Tuesday clarifies Section 9(13) of the Federal Reserve Act, in response to inquiries and proposals from state member banks regarding engagement in crypto-asset activities.



The board issued two directives stating that it will “presumptively prohibit” member banks from holding most cryptoassets as principal, including bitcoin and ether, and those looking to issue a dollar token will have to demonstrate they have safe controls in place.&nbsp;



Further, the rules cited that the cryptoasset sector is “largely unregulated or noncompliant” with regulation from the perspective of market conduct, and that issuing tokens on decentralized networks raises cybersecurity risks.&nbsp;



“In practice, this presumption could be rebutted if there is a clear and compelling rationale for the Board to allow deviations in regulatory treatment among federally supervised banks, and the state member bank has robust plans for managing the risks of such activities in accordance with principles of safe and sound banking,” the board said.



Still, member banks can provide safekeeping services for cryptoassets in a custodial manner if they are conducted in a safe manner.&nbsp;



The Fed Reserve has 12 regional banks across the US, which each oversee member banks in their own state. These members are state banks that have chosen to join the Fed Reserve System. For instance, the Federal Reserve Bank of Dallas <a href="https://www.dallasfed.org/-/media/Documents/banking/memberbanks.pdf" target="_blank" rel="noreferrer noopener">oversees</a> several entities including American State Bank, Comerica, Texas National and Big Bend Banks.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">I don&#39;t want to alarm, but since the turn of the year, a new Operation Choke Point type operation began targeting the crypto space in the US. it is a well-coordinated effort to marginalize the industry and cut of its connectivity to the banking system &#8211; and it&#39;s working&mdash; nic carter (@nic__carter) <a href="https://twitter.com/nic__carter/status/1622973966360133634?ref_src=twsrc%5Etfw">February 7, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Concerns have been floating that the US is clamping down on the digital asset industry, with various financial institutions like the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency <a href="https://www.fdic.gov/news/press-releases/2023/pr23002a.pdf" target="_blank" rel="noreferrer noopener">highlighting</a> significant risks associated with the sector.



In another such incident, crypto-focused bank Custodia’s application to become a member of the Fed Reserve was recently <a href="https://www.forbes.com/sites/genegrant/2023/02/06/white-house-cools-on-crypto-and-custodia-bank-rejected-by-the-fed/" target="_blank" rel="noreferrer noopener">rejected</a> due to its “novel business model and proposed focus on cryptoassets.”  Separately, the White House issued a <a href="https://www.whitehouse.gov/nec/briefing-room/2023/01/27/the-administrations-roadmap-to-mitigate-cryptocurrencies-risks/" target="_blank" rel="noreferrer noopener">blog</a> called “The Administration’s Roadmap to Mitigate Cryptocurrencies’ Risks,” calling on Congress to step up efforts to enact cryptoasset legislation.



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Fed Board Prohibits Member Banks from Holding Cryptoassets as Principal

Dubai’s crypto regulator has published its eagerly-anticipated regulations for the local industry — including an effective ban on anonymity-focused digital assets known as privacy coins.



The emirate’s Virtual Assets Regulatory Authority (VARA) released its <a href="https://www.vara.ae/media/Virtual%20Assets%20and%20Related%20Activities%20Regulations%202023.pdf" target="_blank" rel="noreferrer noopener">rulebook</a> on Tuesday. It  includes 10 fundamental principles and goals including licensing requirements, anti-money laundering obligations, stipulations on marketing and promotion and offenses like insider dealing.



VARA describes anonymity-enhanced cryptocurrencies as assets which prevent the tracking of ownership or transactions — an impediment for which crypto service providers currently have no way to effectively mitigate.



Dubai’s new <a href="https://www.vara.ae/media/Virtual%20Assets%20and%20Related%20Activities%20Regulations%202023.pdf" target="_blank" rel="noreferrer noopener">rule</a> means cryptocurrencies such as <a href="https://blockworks.co/news/crypto-mixers-and-privacy-coins-can-they-resist-censorship">Zcash (ZEC) and Monero</a> (XMR) won’t be allowed, nor can local entities create such coins. 



Japan similarly banned privacy coins in 2019 while a string of <a href="https://www.coindesk.com/markets/2019/11/26/another-crypto-exchange-is-dropping-privacy-coin-monero-over-compliance-risk/" target="_blank" rel="noreferrer noopener">exchanges</a> have delisted some offerings over the past few years, including Huobi and BitBay. Coinbase shed ZEC in the UK in 2019 and has so far avoided listing XMR altogether.



Among other rules, entities can’t describe themselves as virtual asset businesses unless they are licensed by the VARA to do so. Large proprietary traders that actively invest $250 million or more in crypto must register with the VARA.



Reasons for license revocation include violation of any directive or if an entity is insolvent. The regulator also sets fees for various services, in the range of 40,000 dirhams ($10,889) to 200,000 ($54,449) dirhams.



Violating rules related to market conduct can lead to fines of up to 20 million dirhams ($5.4 million) for individuals and up to 50 million dirhams ($13.6 million) for a virtual asset service provider, such as exchanges or payment processors.



The VARA’s regulations apply to virtual asset businesses and activities within the emirate of Dubai, including special development zones and free zones, but exclude the Dubai International Financial Centre which has its own regulator.



A recent report showed Dubai has attracted more than <a href="https://blockworks.co/news/dubai-free-zone-now-home-to-more-than-500-crypto-startups">500 crypto companies</a> to its digital asset ecosystem. But crypto-friendliness hasn’t exactly meant that the wealthy Middle Eastern city has been easy on new businesses wanting to set up shop.&nbsp;



Tim Buyn, global government relations officer at OKX’s parent firm, <a href="https://blockworks.co/news/crypto-seeks-freedom-in-the-uae-is-it-a-regulatory-rug-pull">told Blockworks</a> in August that the due diligence process “has easily over 100 data items or documents” that need to be turned in.



The VARA’s ambitions include positioning Dubai as a regional and international hub for virtual assets in a manner that would boost its competitive edge locally and internally. It also hopes that its business-friendly regulatory landscape would attract investments and motivate businesses to set up their operations in Dubai.



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Privacy Coins To Be Banned in Dubai

Sebastian Sinclair

Bitcoin (<a href="https://blockworks.co/price/btc" target="_blank" rel="noreferrer noopener">BTC</a>) is painfully close to recording an ominous first in its 14-year history: its premiere “death cross” on the weekly price chart.



Two major moving averages (MA) are about to converge: its 200-week and its 50-week. Technical analysis suggests it is extremely bearish for the 50-week MA to cross below a 200-week MA — hence the “death” part.



Death crosses are lagging indicators. The pattern is typically used by investors and traders as a signal that a trend change from bullish to bearish is about to, or has, taken place.&nbsp;



Bitcoin switched from a <a href="https://blockworks.co/news/bitcoin-halvings-bull-market" target="_blank" rel="noreferrer noopener">heady bull market</a> to a stifling bear market sometime in late 2021 or early 2022 — the impending death cross would solidify that switch and mark the most visceral reversal in its history.



Bitcoin narrowly avoided a death cross back in November 2015 (the early days of a bull run), when just $9.96 separated the 50-week and 200-week MAs ($9.96 was about 2.6% of bitcoin’s price at the time).



As of 12:50 am, ET, just $115 separated the two. That’s just 0.5% of bitcoin’s price — its closest ever point.



<figure class="wp-block-embed is-type-wp-embed is-provider-flourish wp-block-embed-flourish"><div class="wp-block-embed__wrapper">
<iframe class="wp-embedded-content" sandbox="allow-scripts" security="restricted" title="Interactive or visual content" src="https://flo.uri.sh/visualisation/12682843/embed#?secret=G2xm4cVqHH" data-secret="G2xm4cVqHH" frameborder="0" scrolling="no" height="575" width="700"></iframe>
</div><figcaption class="wp-element-caption">Bitcoin&#8217;s first ever weekly &#8220;death cross&#8221; will occur when the light blue line sinks below the dark blue line, likely sometime in the next few days</figcaption></figure>



Death crosses can be seen on any asset chart. Following the bursting of the dotcom bubble — in Sept. 2001 — the S&amp;P 500 printed such a pattern about a year and a half after the index peaked. Prices eventually bottomed out 300 days later.



It&#8217;s important to note that technical analysis should not be used in isolation. And depending on who you ask, technical analysis is either useful or junk science (Blockworks requested comments from three different analysts about the death cross — all declined to weigh in on technical analysis).



Still, charting remains popular in crypto circles as there’s often little else to go on (<a href="https://blockworks.co/news/crypto-doesnt-care-about-fundamentals-is-that-sustainable" target="_blank" rel="noreferrer noopener">fundamental analysis remains elusive</a> in crypto compared to traditional equities, which boast price-to-earnings, price-to-book ratios and other useful metrics).



Ether (<a href="https://blockworks.co/price/eth" target="_blank" rel="noreferrer noopener">ETH</a>), on the other hand, is still some ways from printing such a melancholic pattern. Although it has seen a weekly death cross before: in June 2019, one and a half years after 2017-2018 bull market topped out.



Some 18 months later, ETH&#8217;s 200MA and 50MA would conversely cross “bullish” in December 2020 with a so-called “golden cross” — the opposite of a “death cross.”&nbsp;



Crypto sprung back to life around the same time.&nbsp;



It’s not all gloom and doom for bitcoin. Chartists are right now frothing over a supposedly bullish golden cross on bitcoin’s daily moving averages, which occurred earlier this week, proving technical analysis can be a “glass-half-full-half-empty” discipline.



<figure class="wp-block-embed is-type-wp-embed is-provider-flourish wp-block-embed-flourish"><div class="wp-block-embed__wrapper">
<iframe class="wp-embedded-content" sandbox="allow-scripts" security="restricted" title="Interactive or visual content" src="https://flo.uri.sh/visualisation/12682924/embed#?secret=suvannHGJ1" data-secret="suvannHGJ1" frameborder="0" scrolling="no" height="575" width="700"></iframe>
</div><figcaption class="wp-element-caption">Bitcoin&#8217;s last death cross on the daily was on Jan. 14, 2022. It&#8217;s now worth 46% less</figcaption></figure>



David Canellis contributed reporting.



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Bitcoin Price Dollars Away From First Ever Weekly ‘Death Cross’

Upstart NFT marketplace Blur continues to outstrip incumbent OpenSea as anticipation grows for its token launch next week.



The Ethereum-based protocol, geared towards seasoned traders, was only launched in October but it already boasts a 46% slice of the total weekly market share against OpenSea’s 36%.



Blur has topped daily trade volume across the NFT sector every day throughout February so far, averaging roughly $14.3 million compared to OpenSea’s $11.3 million, per a Dune Analytics dashboard. 



Blur&#8217;s trade volumes also eclipsed OpenSea throughout early January and for most of December. 



OpenSea, launched in December 2017, has historically dominated the NFT segment. Blur still lags behind OpenSea based on number of trades, rather than by monetary value of trade volumes.



Data indicates that Blur boasts a smaller group of highly dedicated traders processing large amounts; the same dashboard shows 33,540 Blur traders over the past week compared to OpenSea’s 116,278.



<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="559" src="https://cms.blockworks.co/wp-content/uploads/2023/02/Screen-Shot-2023-02-08-at-04.47.13-1024x559.png" alt="" class="wp-image-46666" srcset="https://cms.blockworks.co/wp-content/uploads/2023/02/Screen-Shot-2023-02-08-at-04.47.13-1024x559.png 1024w, https://cms.blockworks.co/wp-content/uploads/2023/02/Screen-Shot-2023-02-08-at-04.47.13-300x164.png 300w, https://cms.blockworks.co/wp-content/uploads/2023/02/Screen-Shot-2023-02-08-at-04.47.13-768x419.png 768w, https://cms.blockworks.co/wp-content/uploads/2023/02/Screen-Shot-2023-02-08-at-04.47.13-1536x839.png 1536w, https://cms.blockworks.co/wp-content/uploads/2023/02/Screen-Shot-2023-02-08-at-04.47.13-2048x1118.png 2048w, https://cms.blockworks.co/wp-content/uploads/2023/02/Screen-Shot-2023-02-08-at-04.47.13-428x234.png 428w, https://cms.blockworks.co/wp-content/uploads/2023/02/Screen-Shot-2023-02-08-at-04.47.13-470x257.png 470w, https://cms.blockworks.co/wp-content/uploads/2023/02/Screen-Shot-2023-02-08-at-04.47.13-389x212.png 389w, https://cms.blockworks.co/wp-content/uploads/2023/02/Screen-Shot-2023-02-08-at-04.47.13-80x44.png 80w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Trade volumes on both OpenSea and Blur have grown, but Blur&#8217;s has grown faster (<a href="https://dune.com/hildobby/NFTs" target="_blank" rel="noreferrer noopener">source</a> Dune user @hildobby)</figcaption></figure>



Unlike OpenSea, which is a straightforward NFT marketplace, Blur also acts as a marketplace aggregator, allowing its users to trade NFTs on a variety of platforms via a single portal, including its own.



Blockworks <a href="https://blockworks.co/news/blur-could-unseat-nft-marketplace-opensea" target="_blank" rel="noreferrer noopener">previously reported</a> that Blur’s boom is likely inspired by the upcoming launch of BLUR, set for Feb. 14, alongside its third and final airdrop for points which can eventually be redeemed for the token.



BLUR will serve as the platform’s native cryptocurrency. The specific functions of the token remain largely unknown though indications suggest it will play a role in governance.



<h2>Blur airdrops to be swapped for crypto</h2>



Blur is powered by a team of engineers from the likes of Square, MIT, Brex, Five Rings and YCombinator. It <a href="https://www.crunchbase.com/funding_round/blur-d734-seed--e55673d6" target="_blank" rel="noreferrer noopener">raised</a> $11 million in early-stage funding last March.



The team has been busy preparing its token launch, with its supply to be initially distributed through airdrops marketed as “care packages&#8221; for users who&#8217;ve actively traded NFTs. 



In order to claim the drops, traders were incentivized to list NFTs for sale on Blur.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">Blur Bidding Pools have reached a new ATH of $42m, or, around 2/3 of Aptos TVL! <a href="https://t.co/UjmXKlvYXW">pic.twitter.com/UjmXKlvYXW</a>&mdash; Blur (@blur_io) <a href="https://twitter.com/blur_io/status/1622679475602477056?ref_src=twsrc%5Etfw">February 6, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div><figcaption class="wp-element-caption">The value of Blur&#8217;s bidding pools is approaching the total value locked of buzzy blockchain Aptos</figcaption></figure>



A similar approach was implemented for the second airdrop. Blur&#8217;s final airdrop, which has run from early December, is pegged to distribute more than twice the number of care packages. 



Users are instead earning reward points based on their NFT bidding activities.



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Blur NFT Volume Beats OpenSea Again, With 30% of the Traders

British neobank Revolut is pushing ahead with its crypto offerings by giving its customers across the UK and Europe the ability to earn staking rewards.



Customers in supported countries can now earn up to 11.65% annual percentage yield (APY), paid in the respective tokens, on four cryptocurrencies: ether (<a href="https://blockworks.co/price/eth" target="_blank" rel="noreferrer noopener">ETH</a>), cardano (<a href="https://blockworks.co/price/ada" target="_blank" rel="noreferrer noopener">ADA</a>), polkadot (<a href="https://blockworks.co/price/dot" target="_blank" rel="noreferrer noopener">DOT</a>) and tezos (<a href="https://blockworks.co/price/xtz" target="_blank" rel="noreferrer noopener">XTZ</a>), Revolut said in a statement Tuesday.



Revolut is currently offering the most yield on DOT. Staking the token directly to the network as a Polkadot validator generates around 14.43% APY, which means staking DOT via Revolut leaves nearly 3% yield on the table.



Funds are to be held with “trusted custodians” while the platform will manage a user’s private keys. Blockworks has reached out to Revolut to learn more.&nbsp;



Revolut’s staking rewards rollout comes as the platform takes another shot at tapping potential growth from the digital asset sector. The fintech unicorn first dabbled in crypto by allowing users to acquire BTC, ETH and litecoin (<a href="https://blockworks.co/price/ltc" target="_blank" rel="noreferrer noopener">LTC</a>) back in 2017. 



Revolut has since expanded its list of supported digital assets significantly, now advertising more than 90 tokens. It also enabled bitcoin withdrawals to personal wallets in 2021.



Revolut CEO Nikolay Storonsky <a href="https://www.bloomberg.com/news/articles/2022-11-02/revolut-crypto-revenue-plunges-yet-ceo-storonsky-still-believes" target="_blank" rel="noreferrer noopener">said</a> in November that while crypto had contributed 30% to 35% of the firm’s total revenue in 2021, that figure had fallen to around 5% last year.



Still, Revolut’s push for diversifying its digital asset revenue streams echoes sentiment shared by Coinbase CEO <a href="https://blockworks.co/news/coinbase-ceo-touts-subscriptions-to-curb-reliance-on-trading-fees" target="_blank" rel="noreferrer noopener">Brian Armstrong</a> last August.



At the time, Armstrong said his company would shift the way it drums up dollars, which has mostly hinged on fees taken from trading activity when times are good.



Revolut offers a number of products and services including banking, brokerage for traditional equities and digital assets. The firm says it serves 25 million customers across 200 countries, leveraging 29 in-app fiat currencies.



Revolut has raised a total of $1.8 billion in funding over 19 rounds and is valued at roughly $33 billion, <a href="https://my.pitchbook.com/profile/104383-72/company/profile#insights" target="_blank" rel="noreferrer noopener">Pitchbook</a> data shows.



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Revolut Doubles Down on Crypto With Staking Rewards — But Not in US

Meme stocks are once again drawing the attention of traders — coinciding with a 2023 jump in value in meme cryptocurrencies, including sector stalwarts Dogecoin and Shiba Inu.



The emerging sentiment— underscored by amped-up meme asset trading volumes — lingered into Tuesday’s session. The continuing investor interest appears to be bucking a downturn in meme equities late in Monday’s trading session in New York.



Longtime meme stock <a href="https://www.tradingview.com/chart/?symbol=NYSE%3AAMC">AMC</a> finished Monday’s trading session 12% higher at $6.80 — after rising to a peak of $7.26. Most of that double-digit pop was erased on Tuesday as the US movie theater chain’s equity dropped 8%. But the NYSE-listed asset was still posting a 57% gain on the year. 



Home retailer Bed Bath &amp; Beyond (<a href="https://www.tradingview.com/chart/Nm6c3U35/?symbol=NASDAQ%3ABBBY">BBBY</a>) climbed an eye-watering 92% to $5.85 to start the week — before giving 36% back to hover around $3.70 in Monday’s after-hours trading hours. The stock gave up another 48% on Tuesday.  



<figure class="wp-block-embed is-type-wp-embed is-provider-flourish wp-block-embed-flourish"><div class="wp-block-embed__wrapper">
<iframe class="wp-embedded-content" sandbox="allow-scripts" security="restricted" title="Interactive or visual content" src="https://flo.uri.sh/visualisation/12680954/embed#?secret=SsQUxAtV7B" data-secret="SsQUxAtV7B" frameborder="0" scrolling="no" height="575" width="700"></iframe>
</div><figcaption class="wp-element-caption">A number of meme equities and meme tokens are trouncing the S&amp;P 500 in 2023 so far. </figcaption></figure>



Daily gains were knee-capped in after-hours trade on Monday following an announcement by company executives over their intention to sell convertible shares in order to avoid loan default and <a href="https://www.bloomberg.com/news/articles/2023-02-06/bed-bath-beyond-plans-share-sale-in-effort-to-avoid-bankruptcy">prevent bankruptcy</a>. Still, BBBY is up more than 30% so far this year, marking a notable recovery from its 80% decline since last year’s $30 peak.&nbsp;



Traders also demonstrated a renewed interest in meme stock pioneer GameStop (<a href="https://www.tradingview.com/chart/Nm6c3U35/?symbol=NYSE%3AGME">GME</a>), albeit demonstrated by a relatively smaller pop to start the week. GME jumped 7% higher on Monday to $24.70. Like the others, GME declined 11% Tuesday as traders booked a profit. The equity is still up more than 20% in the new year.&nbsp;



The GameStop short squeeze of January 2021 brought to light stocks with heavy Wall Street short floats —&nbsp; and sparked a movement driven by Reddit traders to drive up similarly beleaguered equities in a show of retail force.



<h3>More (meme) bark than bite?</h3>



Meme stocks and coins have gained renewed attention recently as worries about inflation and the macro environment have started to ease, according to Rob Alcorn, Clearpool’s chief executive.&nbsp;



“Meme coins generally distract attention from the real innovation happening in the digital asset space,” Alcorn told Blockworks. “Whilst very speculative, this is an indicator that retail sentiment is turning positive once again following an extended period of selling.”



The recent meme stock surge has mirrored an upward trend in their crypto counterparts. On the year, <a href="https://www.blockworksresearch.com/assets/doge">dogecoin</a> has this week clawed back more than 31% of its losses — and <a href="https://www.blockworksresearch.com/assets/shib">shiba inu</a> has roared back to the tune of 2023 gains of as much as 75%.&nbsp;



For context, both bitcoin and ether have risen by approximately 36% over the same time period.



That’s good news for the majority of dogecoin holders, now in the money or profiting from their original purchase.&nbsp;&nbsp;



Data from crypto intelligence firm <a href="https://app.intotheblock.com/coin/DOGE/deep-dive?group=all&amp;chart=all" target="_blank" rel="noreferrer noopener">IntoTheBlock</a> show, of roughly four million wallet addresses holding the asset, around 62% are in the money. Just 35% of those addresses are posting losses.



A majority of those addresses booking gains bought in at an average price of $0.008. The asset was last seen changing hands for around $0.09, representing a 1020% increase for those who bought then.&nbsp;



IntoTheBlock’s Global In/Out of the Money categorizes addresses by their current profit or loss status relative to the current market price. Addresses are classified as &#8220;in the money&#8221; if they are making a profit, &#8220;at the money&#8221; if they are breaking even or &#8220;out of the money&#8221; if they are underwater.



It’s a little hairier for those holding shib, Shibu Inu’s native token. 



Of the 1.2 million addresses analyzed, roughly 44.5% are showing a profit.



An additional 54% have bitten off more than they can chew.



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Dogecoin Owners Back in Green YTD as Meme Stocks Rip

Ben Strack

US regulators have reiterated warnings on their perceived risks of adding cryptocurrencies to retirement accounts.&nbsp;



The SEC and the Financial Industry Regulatory Authority (FINRA) on Tuesday again cautioned investors allocating to alternative assets in self-directed individual retirement accounts (IRAs), highlighting crypto as a risk.



“Crypto assets may be securities that are offered without SEC registration or a valid exemption from registration, and may not be accompanied by complete or accurate information to aid investors in making informed decisions,” regulators <a href="https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-alerts/investor-14" target="_blank" rel="noreferrer noopener">wrote</a>.



In making their case against crypto, regulators additionally alluded to liquidity concerns centered around digital assets.&nbsp;



Many crypto trading platforms brand their entities as “exchanges” — which could contribute to incorrect investor impressions that those market makers have registered with the SEC, the warning said.&nbsp;



Crypto exposures in retirement accounts has been a <a href="https://www.wsj.com/articles/investors-who-bet-on-bitcoin-fund-in-retirement-accounts-pay-the-price-11675049243" target="_blank" rel="noreferrer noopener">touchy</a> subject of late. That’s in part due to <a href="https://blockworks.co/news/asset-managers-potential-gbtc-takeover">the underperformance of Grayscale Bitcoin Trust (GBTC)</a>, as well as <a href="https://blockworks.co/news/ontario-teachers-fund-sank-95m-in-failed-ftx-empire">write-offs</a> by pension funds invested in failed crypto firms <a href="https://www.ft.com/content/67048159-82aa-4e96-bfb3-f1764f632375" target="_blank" rel="noreferrer noopener">Celsius</a> and FTX.



Read More: <a href="https://blockworks.co/news/asset-managers-potential-gbtc-takeover">Your recap on all things GBTC as takeover attempts mount</a>



Tuesday’s regulatory guidance focuses on self-directed IRAs, plans that allow investment in more assets than other types of IRAs — such as real estate, private placement securities, precious metals and other commodities. These differ from 401(k) plans, which are employer-sponsored retirement savings plans that give employees a choice of investment options, typically mutual funds.&nbsp;



But warnings about crypto investments have not been isolated to the self-directed retirement space.&nbsp;



The Department of Labor said in <a href="https://www.dol.gov/agencies/ebsa/employers-and-advisers/plan-administration-and-compliance/compliance-assistance-releases/2022-01" target="_blank" rel="noreferrer noopener">March 2022 guidelines</a> that the Employee Benefits Security Administration (EBSA) expects to investigate 401(k) plans that offer participant investments in cryptocurrencies and related products.&nbsp;



Those guidelines have “chilled interest” by plan sponsors and fiduciaries in direct crypto investments for the time being, Castle Funds Director Dan Hoover <a href="https://blockworks.co/news/castle-funds-insurance-crypto">told Blockworks</a> last week.&nbsp;



Still, <a href="https://blockworks.co/news/fidelity-delves-deeper-into-crypto-by-allowing-bitcoin-in-401ks">Fidelity said last April</a> that the financial services company would give employers the option to offer bitcoin exposure to employees in their core 401(k) investment lineup. A Fidelity previously said it was set to launch its first plan sponsor clients by the end of 2022. 



The company had $9.6 trillion in assets under administration, as of Sept. 30, and manages employee benefit programs for nearly 23,000 businesses.&nbsp;



A Fidelity spokesperson did not immediately comment on the demand for crypto exposure in retirement portfolios in the wake of FTX’s crash in November, which shook the industry.



“We are proud of the Digital Assets Account as a responsible solution to meet the demands of mainstream interest,” a firm representative told Blockworks in October. “In fact, client interest has not only been strong, but also spans across a wide range of industries and company sizes.”



Senators, including Elizabeth Warren, D-Mass., have repeatedly urged Fidelity — <a href="https://blockworks.co/news/senators-fidelity-stop-offering-bitcoin-401ks">as recently as November</a> — to stop its 401(k) sponsor partners from offering bitcoin exposure.



Fidelity has said it engages in “ongoing dialogue with regulators and policymakers” to ensure consumer protections and educational guidance for plan sponsors.



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SEC, FINRA Double Down on Warning of Retirement Account Crypto Risk

Jon Rice

Crypto news site The Block cut 27 staffers on Friday, according to four sources with direct knowledge of the layoffs.



In confirming the layoffs, Bobby Moran, interim CEO at The Block, said that &#8220;Friday was a tough day for our company. We parted ways with 27 incredibly talented and hard-working colleagues each of whom contributed to The Block&#8217;s success. We are genuinely sad to see them go.&#8221;



The Block made headlines in December 2022 following reports that Sam Bankman-Fried secretly channeled millions of dollars in loans through his trading company, Alameda Research, to Michael McCaffrey, The Block’s former chief executive. Bankman-Fried, the founder of <a href="https://blockworks.co/tag/ftx">FTX</a> and <a href="https://blockworks.co/tag/alameda-research">Alameda</a>, is now awaiting trial on multiple counts of fraud and conspiracy.



McCaffrey did not divulge the source of the funds publicly and resigned from his CEO seat shortly after the revelations.



The layoffs were spread over multiple company functions, including editorial, research, engineering, sales, revenue, and corporate operations, with almost half coming from editorial and research, according to a source familiar with the matter.



The Block is not profitable, according to an Axios <a href="https://www.axios.com/2022/12/09/bankman-fried-funded-crypto-news-site-block" target="_blank" rel="noreferrer noopener">investigation</a>, which found that a buyout of the company’s investors in April 2021 led by McCaffrey was financed by loans extended by Bankman-Fried’s Alameda Research. Those lines of credit reportedly were funneled to an LLC, MJMCCAFFREY LLC.



McCaffrey was succeeded by Bobby Moran, formerly the company’s chief revenue officer.



“No one at The Block had any knowledge of this financial arrangement besides Mike,” Moran <a href="https://www.theblock.co/post/193753/the-block-ceo-resigns-after-failure-to-disclose-loans-from-bankman-frieds-alameda" target="_blank" rel="noreferrer noopener">said</a> at the time.&nbsp;



His account was confirmed by McCaffrey, who <a href="https://twitter.com/McCaffrMike/status/1601304758228164608?s=20&amp;t=OFOOquf77lQ96zuWFkiRAA" target="_blank" rel="noreferrer noopener">tweeted</a> that he “didn’t disclose the loan to anyone. Absolutely no one at The Block knew about the financial arrangement between my holding company and SBF, including the editorial and the research teams.”



A source at The Block who was granted anonymity to discuss the situation candidly told Blockworks that &#8220;There&#8217;s no way McCaffrey was the only person who knew what was happening. Or if he did, some other people were very, very, very bad at their jobs.&#8221;



Following publication of this article Moran noted that &#8220;With regard to the financial arrangement between Mike [McCaffrey] and SBF, what I said in December still holds true — as far as we know, no one at the company knew about Mike&#8217;s actions. We are focused on moving the company forward.&#8221;



<h2>FTX is attempting to recover funds elsewhere</h2>



It’s unclear if FTX will attempt to clawback the money extended to McCaffrey, although it is <a href="https://www.theguardian.com/business/2023/feb/06/ftx-exchange-sam-bankman-fried-donations" target="_blank" rel="noreferrer noopener">trying</a> to recover political donations made by FTX executives.



There is no suggestion that The Block’s journalists were tainted by McCaffrey’s failure to divulge the source of his funds, or that The Block’s editorial coverage was influenced by the loans. Journalists at the company expressed shock and dismay at the time.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">1) I&#39;m absolutely gutted by this news, which was briefed to the company this afternoon. Underpinning my shock are feelings of utter disgust and betrayal by Mike’s actions, greed, lack of disclosure. He&#39;s literal scum. He kept every single one of us in the dark. <a href="https://t.co/jIZCxtHrfc">https://t.co/jIZCxtHrfc</a>&mdash; Frank Chaparro (@fintechfrank) <a href="https://twitter.com/fintechfrank/status/1601295493102911488?ref_src=twsrc%5Etfw">December 9, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



It has been a tumultuous year for some crypto media companies, including CoinDesk, which has been repeatedly forced to report on the waning fortunes of its parent company, Digital Currency Group (DCG).



CoinDesk is one of the assets that may be <a href="https://www.wsj.com/articles/crypto-media-outlet-coindesk-taps-bankers-for-potential-sale-11674076000" target="_blank" rel="noreferrer noopener">sold off</a> as a result of the ongoing Genesis bankruptcy (another DCG portfolio company).



Although initial estimates for its price tag ranged as high as $300 million, some sources now believe the sale will be for significantly less than $100 million, with at least one estimate placing the final price south of $50 million. Updated Feb. 7th, 2023 at 7:36 pm ET: Added quotes from Bobby Moran.



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Crypto News Outlet The Block Lays Off 27 Staff

Prosecutors in the Southern District of New York (SDNY) have asked the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) to postpone their cases against the disgraced founder of FTX, Sam Bankman-Fried.&nbsp;



Prior to <a href="https://blockworks.co/news/5-highlights-ftx-bankruptcy">filing for bankruptcy</a> on Nov. 11, FTX was one of the biggest cryptocurrency exchanges in the world. After being arrested in the Bahamas in December, Bankman-Fried was extradited to the United States, where he currently faces eight federal charges related to financial fraud.



Additionally, the SEC filed a civil lawsuit against Bankman-Fried on Dec. 12 last year for violating anti-fraud provisions. A day later, the CFTC filed a lawsuit against the founder for fraud and material misrepresentations.



Attorney Damian Williams of SDNY noted in a court filing that civil lawsuits could allow Bankman-Fried to “improperly obtain impeachment material regarding the Government’s witnesses, circumvent the criminal discovery rules, and improperly tailor his defense in the Criminal Case.”



Williams also noted that it Bankman-Fried’s attorneys could benefit from civil proceedings and use the opportunity to improve his defense in the federal case. As such, he requested to temporarily halt civil cases while federal investigations continue.



Aaron Kaplan, the co-CEO of Prometheum, a NYC-based fintech company building a Federal Securities Law compliant, blockchain native, public market and custodial infrastructure for digital assets told Blockworks that in criminal white collar fraud cases, it is common to deny criminal defendants the ability to use civil cases for discovery.



“This can be used in the defense of the criminal matter,” Kaplan said. “Prosecutors regularly argue that abuse of civil discovery processes, including by way of depositions, is used by defendants to intimidate prospective witnesses in the criminal matter.”&nbsp;



This sentiment is shared by David Maria, the general counsel and chief legal officer at Bittrex.



“It is routine to seek to delay civil proceedings when criminal proceedings are pending. If the government doesn’t ask to stay the civil proceedings, the defendant facing criminal charges typically will,” Maria said.



This is not the first time that US prosecutors have requested a halt in action from civil cases. In July 2018, the SEC <a href="https://financefeeds.com/us-govt-seeks-intervene-sec-case-ponzi-scammer-renwick-haddow/">paused its investigations</a> into crypto scammer Renwick Haddow after it was determined that both the civil and criminal cases were rooted in the same set of circumstances.



<h2>No contact allowed with the outside world</h2>



The former FTX founder pleaded <a href="https://blockworks.co/news/sam-bankman-fried-issues-not-guilty-plea">not guilty</a> to the charges against him in December last year. He is currently out on bail for <a href="https://blockworks.co/news/bankman-fried-bail-past-indictments">$250 million</a>.



Despite being under house arrest, many guests have been able to visit him in his family residence, including prominent financial journalist Michael Lewis — the author of Wolf of Wall Street.&nbsp;



It was also revealed that Bankman-Fried had been contacting past and present FTX and Alameda employees through messaging app Signal.&nbsp;



As the court believed that his messages were obstructive and could <a href="https://storage.courtlistener.com/recap/gov.uscourts.nysd.590940/gov.uscourts.nysd.590940.50.0.pdf">influence witnesses</a>, judges decided to forbid the founder from using any communication tools to contact the outside world, other than his immediate family members.&nbsp;



Bankman-Fried’s lawyers filed a joint request on Monday to modify his bail conditions so that he could be allowed to use unencrypted text messaging services under the circumstances that his phone was monitored.



This was met with resistance from federal officials, who have since denied his request “without prejudice,” meaning Bankman-Fried is free to make the same or a similar request again in the future.



Updated, Feb. 8 at 7:45 am ET, with additional comments.



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SDNY Wants SEC, CFTC To Postpone Cases Against Bankman-Fried

After a mixed trading session Tuesday, Federal Reserve Chair Jerome Powell sent markets clearly into the green. In his first public remarks since his post-FOMC press conference earlier this month, Powell set markets at ease during an appearance at the Economic Club in Washington, D.C.&nbsp;



The Nasdaq Composite and S&amp;P 500 indexes rose as much as 1.4% and 1.1%, respectively, during Powell’s interview with Carlyle Group co-founder David Rubenstein, where he discussed the latest “extraordinarily strong” jobs report and potential rate increases moving forward.&nbsp;



“The disinflationary process, the process of getting inflation down, has begun,” Powell said.&nbsp;



In terms of expectations for future interest rate decisions, Powell was tight lipped, noting that upcoming economic data will be a major influencing factor.&nbsp;



“What we said at the <a href="https://blockworks.co/news/federal-reserve-raises-interest-rates-25-bps">[FOMC] meeting</a> was we anticipate that ongoing rate increases would be appropriate,” Powell said. “All of these numbers we are throwing around here are contingent on upcoming data.”&nbsp;



Tech stocks and crypto led Tuesday’s midday gains, with bitcoin (<a href="https://blockworks.co/price/btc" target="_blank" rel="noreferrer noopener">BTC</a>) and ether (<a href="https://blockworks.co/price/eth" target="_blank" rel="noreferrer noopener">ETH</a>) rallying as much as 1.7% and 2.5%, respectively, before both paring gains slightly. Still, Powell tried to set market expectations in check, reinforcing the sentiment that future numbers are going to be important going forward. 



“The reality is we’re going to react to the data,” Powell said. “So if we continue to get, for example, strong labor market reports or higher inflation reports, it may well be the case that we have to do more and raise rates more than is priced in.”



Rubenstein also asked about the debt ceiling, an ongoing crisis in Congress that Powell also mentioned during his latest press conference following this month’s FOMC decision.&nbsp;



“The debt limit is really something for the fiscal authorities to take care of,” he said, noting that Congress has only one way forward: Raise the debt ceiling.&nbsp;



Powell suggested that he would not be entertaining the possibility of <a href="https://blockworks.co/news/a-new-york-congressman-wants-the-treasury-to-mint-a-1-trillion-coin-to-pay-off-us-debt">minting a trillion dollar coin</a>.&nbsp;



“As I said, this ends in only one way,” he added.



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Fed Chair’s Comments Spawn Market Volatility

Digital Currency Group (DCG) has reportedly been selling shares of some of Grayscale Investments’ crypto trusts in an effort to raise capital following the bankruptcy filing of Genesis.&nbsp;



Founded by <a href="https://blockworks.co/tag/barry-silbert">Barry Silbert</a>, DCG is the parent company of crypto lending firm Genesis, asset manager Grayscale Investments and media company CoinDesk, among others.



A quarter of DCG&#8217;s stock in the Grayscale <a href="https://grayscale.com/products/grayscale-ethereum-trust/" target="_blank" rel="noreferrer noopener">Ethereum Trust</a> (ETHE) has been sold, raising as much as $22 million in several trades since Jan. 24, the Financial Times <a href="https://www.ft.com/content/abee7e2e-1d18-4a68-aac5-665869db250f" target="_blank" rel="noreferrer noopener">reported</a> late Monday, citing filings. 



ETHE, which launched in 2017, has $5 billion in assets. The trust was trading at a roughly 54% discount to its net asset value on Monday, according to <a href="https://ycharts.com/companies/ETHE/discount_or_premium_to_nav" target="_blank" rel="noreferrer noopener">YCharts.com</a>.



Dave Nadig, a financial futurist at data firm VettaFi, said the trust issuer’s reported sale at such a steep discount highlights the need for a redemption window. Redemptions of shares for ETHE are not currently authorized.&nbsp;



“It’s not a great look, obviously, but on the other hand, if a corporation needs to raise cash, selling assets is a pretty time-honored way of doing so,” he told Blockworks.&nbsp;&nbsp;



DCG has also moved to sell a smaller number of shares in Grayscale&#8217;s Litecoin Trust, Bitcoin Cash Trust, Ethereum Classic Trust and Digital Large Cap Fund. 



Those four trusts have combined assets under management of roughly $700 million.&nbsp;&nbsp;



Spokespeople for DCG and Grayscale did not immediately return a request for comment.&nbsp;



Genesis <a href="https://blockworks.co/news/the-next-bankruptcy-domino-may-be-genesis">filed for bankruptcy</a> last month after taking a major hit during last year’s market turmoil. The company on Monday <a href="https://blockworks.co/news/genesis-agreement-will-see-gemini-contribute-100m-to-compensate-earn-users">reached an agreement</a> in principle with Gemini and other creditors on a restructuring plan, <a href="https://blockworks.co/news/fraud-winklevoss-silbert-dcg">following a public feud</a> with Gemini’s Cameron Winklevoss.&nbsp;



DCG’s reported sale of various Grayscale trust shares comes after the Financial Times said last month DCG was <a href="https://blockworks.co/news/dcg-selling-venture-capital-portfolio">looking to sell</a> some of its venture capital holdings, citing people familiar with the matter.



Grayscale’s largest investment product is its Bitcoin Trust (GBTC), which launched in 2013 and has $14.5 billion in assets.&nbsp;



The cryptoasset manager has <a href="https://blockworks.co/news/grayscale-sec-illogical-denial-of-gbtc-conversion">sued the SEC</a> in an attempt to convert GBTC to an ETF, a process Grayscale executives said would help close the trust’s discount, which has exceeded <a href="https://ycharts.com/companies/GBTC/discount_or_premium_to_nav" target="_blank" rel="noreferrer noopener">40%</a> in recent months.&nbsp;



Grayscale CEO Michael Sonnenshein told investors in a December letter the firm would <a href="https://blockworks.co/news/no-gbtc-redemptions-but-considering-other-options">consider a tender offer for GBTC shareholders</a> if its bid to convert the trust to an ETF fails.



There is no concrete timeframe for a resolution to the legal wrangling, and <a href="https://blockworks.co/news/gbtc-takeover-attempts-explained">some GBTC shareholders</a> are growing impatient.



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Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from&nbsp;<a href="https://blockworks.co/newsletter/research" target="_blank" rel="noreferrer noopener">Blockworks Research&#8217;s Daily Debrief</a>.
 
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DCG Dumps ETH Trust Shares Despite Steep Discount: Report

0xpibblez

Solana's Redemption Arc

Permissionless is the brainchild of Blockworks and Bankless. Over 5,500 people attended the inaugural event in 2022, making Permissionless the world’s largest DeFi conference.&nbsp;



What sets Permissionless apart? It’s a crypto native’s paradise, crafted specifically for both builders and investors who are dedicated to scaling the industry.&nbsp;



Permissionless is headed to Austin in 2023, and you know what they say… Everything is bigger in Texas.&nbsp;



Permissionless 2023 will feature the biggest names in Web3, a gargantuan exposition hall filled with the top brands in the space, an awe-inspiring NFT Gallery, inclusive, community-focused parties and events, metaverse experiences, and so much more.



See you in Paradise.

Tickets

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Prices increase every 2 weeks. Only 250 tickets available in each drop. Register today and save!

General Admission Pass

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Student tickets will be launching in early 2023

Student Ticket 

Prices increase every 2 weeks. Only 250 tickets available in each drop. Register today and save!

Speakers

Erik Voorhees

Mary-Catherine (MC) Lader is the Chief Operating Officer of Uniswap Labs, a developer of foundational web3-based products and applications. In this role, she oversees the company’s growth efforts, strategic initiatives, and operations. Previously, she held various leadership roles at BlackRock, including as the Global Head of the firm’s digital sustainability business, Chief Operating Officer of the firm’s digital wealth business, and leader of the firm’s strategic fintech investments and blockchain activities. MC began her career as an investor in Goldman Sachs’ Special Situations Group. She received her J.D. and M.B.A. degrees at Harvard Law School and Harvard Business School, respectively, and her B.A. at Brown University.

Mary-Catherine Lader

Zaki Manian is a Co-Founder of Sommelier, the most powerful coprocessor yet for DeFi traders and Liquidity Providers. He’s also a Co-Founder of iqlusion, which provides infrastructure like a data center and a Cosmos validator for next-gen crypto technologies. Previously, Zaki helped build the Cosmos ecosystem, including launching the first public Cosmos testnet, and served as a director of Tendermint. Zaki has been a leading developer in the blockchain space since 2014, when he taught himself cryptography and began contributing to projects including Bitcoin, Ethereum, Zcash, and Tendermint. Having studied history of science at the University of Pennsylvania, Zaki’s skill sets in software engineering, programming, and computer science are largely self-taught.

Zaki Manian

Justin Drake

At Alluvial, Chief Growth Officer Mara Schmiedt focuses on advancing industry participation and adoption of Liquid Collective, seeking out world-class partnership opportunities, and overseeing Business Development, Sales, and other strategic functions. Mara recently joined Alluvial as Chief Growth Officer from Coinbase, where she served as the Head of Sales for Coinbase Cloud, the leading developer platform for blockchain-based infrastructure products and APIs. She expanded Cloud's staking business, supporting large-scale organizations, enterprises, and institutional investors. Prior to joining Coinbase, she managed Business Development at Bison Trails, a leading provider of blockchain-based infrastructure acquired by Coinbase in February 2021. Mara also served as Strategy Manager at ConsenSys, where she supported the strategic development of Codefi, the blockchain application suite for Web3 Commerce and Finance.



Mara is passionate about open-source technology and has published multiple research reports and papers on liquid staking, such as <a href="https://drive.google.com/file/d/13-s15SvCIUBukhSZiNkpd0sTff3izQ5G/view">The Internet Bond</a> and <a href="https://consensys.net/insights/eth-2-staking-ecosystem-report/">Ethereum 2.0 Staking Ecosystem Report</a>.&nbsp;



Additionally, she has led various industry initiatives, including leading the working group with the Ethereum Foundation that developed the Ethereum Launchpad and the first distributed validator technology (DVT) PoCs. Mara's deep experience in bringing technology and blockchain-based products and services to market — as well as her track record of building world-class business and sales organizations — bolsters Alluvial's support of Liquid Collective.

Mara Schmiedt

Stani Kulechov

Hasu

Christine is a Partner and Head of Digital Asset Strategy at Apollo Global Management, Inc. In this newly created position, Christine leads digital asset strategy across the firm, exploring more ways to apply blockchain technologies to Apollo’s business. She also plays a key role in Apollo’s strategy to invest in some of the most innovative digital asset companies and founders, with a specific focus on those transforming the financial services sector where Apollo can serve as a validator and enabler of new technologies. Previously, she was a Managing Director at J.P. Morgan and led its Blockchain/Crypto/Metaverse program through initiatives in digital assets, tokenized payments, internet of-things, decentralized identity, NFTs, and virtual worlds. She is a graduate of Brown University. Christine was named in Fortune’s The Ledger 40 Under 40 list of “the most impressive, young superstars transforming business at the leading edge of finance and technology.”

Christine Moy

Santiago Roel Santos (CryptoPunk #9159) is an investor focusing at the intersection of DeFi and the Web3 metaverse (NFTs/gaming). Most recently was a Partner at ParaFi Capital, one of the largest crypto funds specializing in DeFi. Prior to that, he was at Sageview Capital investing in Internet and software and, before that, at JP Morgan investment banking. Santiago began investing in crypto in 2012.

Santiago Roel Santos

Michael Anderson is the co-founder of Framework Ventures, one of earliest and largest VC firms to enter the “DeFi” or Decentralized Finance industry. With over $1B in AUM, the firm has since expanded into additional maturing verticals like blockchain gaming and social crypto. Prior to Framework, Michael and his co-founder Vance Spencer launched Hashletes, a digital collectible startup with official licensing from the NFL. Before entering crypto, Michael served as a product manager at both Snapchat and Dropbox, where he helped build out their monetization platforms.

Michael Anderson

Soona Amhaz is founder and GP of Volt Capital, a venture firm that focuses on pre-seed and seed companies in the digital assets space. Soona is also an advisor to On Deck, Forbes 30 under 30 in VC, and an alum from the University of Michigan School of Engineering.

Soona Amhaz

Colleen Sullivan is Co-Head of Ventures at Brevan Howard Digital. Prior to joining Brevan Howard Digital, Colleen co-founded and served as CEO of CMT Digital, where she was also a partner with the broader CMT Group and commenced activities in the crypto industry in 2013. Prior to starting CMT Digital, Colleen co-founded Sullivan Wolf Kailus, a boutique law firm that specializes in hedge fund, private equity, venture capital, digital assets, and other alternative investment products. Colleen also previously practiced law in the Investment Funds and Derivatives group at Sidley Austin LLP and, at age 25, co-founded a company called iOptions Group LLC, which developed hedging and monetization strategies for holders of employee stock options. Ms. Sullivan currently serves on the Advisory Board of the Chamber of Digital Commerce.

Colleen Sullivan

Tarun is an alumni of D. E. Shaw Research (DESRES), Vatic Labs, an HFT firm, and Cornell. He fell into the blockchain world in 2011, when he was working on ASICs at DESRES and observed Bitcoin ASIC mining rigs substantially delay DESRES’s ASIC production. He has spent the last seven years working on simulation-based R&amp;D at the intersection of high-performance computing and AI and is applying this knowledge to the blockchain ecosystem.

Tarun Chitra

Kevin Owocki is the founder of Gitcoin.co — Where builders &amp; funders come together to build the open web.  Gitcoin has delivered <a href="http://gitcoin.co/results">$50mm worth of value</a> to OSS devs in the last several years. He has a BS in Computer Science, 15 years of engineering leadership experience in Open Source Software and Web Startups. Kevin is a community organizer in the Boulder Colorado Tech Scene.

Kevin Owocki

Meltem Demirors is Chief Strategy Officer of CoinShares, a publicly listed investment firm that manages over five billion in digital assets on behalf of a global investor base, and is a trusted partner to investors and entrepreneurs navigating the digital asset ecosystem.



 An established veteran of digital asset investing, Meltem draws on her substantial experience and widespread influence to accelerate growth and acceptance of the asset class. Prior to joining CoinShares, Meltem helped build and grow Digital Currency Group, raising capital from the world’s largest corporations and managing a portfolio of 120 companies and 4 subsidiaries. Before she was bitten with the bitcoin bug, Meltem worked in the Oil &amp; Gas industry in trading, corporate treasury, and M&amp;A roles. 



Meltem has been recognized for her personal contributions to the industry and serves as an outspoken advocate. She is a founding member of the World Economic Forum Blockchain Council. Meltem teaches at her alma mater MIT as well as Oxford, and is passionate about privacy and civil rights.

Meltem Demirors

Vance is the co-founders of Framework Ventures, a thesis-driven venture capital firm whose team of technologists, researchers, and investors partner with founders and teams to build token-based networks and develop the requisite cryptoeconomics, governance, and community to scale.

Vance Spencer

Jim Bianco is President and Macro Strategist at Bianco Research, L.L.C. Since 1990 Jim’s commentaries have offered a unique perspective on the global economy and financial markets. Unencumbered by the biases of traditional Wall Street research, Jim has built a decades long reputation for objective, incisive commentary that challenges consensus thinking. In nearly 20 years at Bianco Research, Jim’s wide ranging commentaries have addressed monetary policy, the intersection of markets and politics, the role of government in the economy, fund flows and positioning in financial markets.



Jim appears regularly on CNBC, Bloomberg and Fox Business, and is often featured in the Wall Street Journal, Bloomberg News, Grants Interest Rate Observer, and MarketWatch. Prior to joining Arbor and Bianco Research, Jim was a Market Strategist in equity and fixed income research at UBS Securities and Equity Technical Analyst at First Boston and Shearson Lehman Brothers. He is a Chartered Market Technician (CMT) and a member of the Market Technicians Association (MTA). Jim has a Bachelor of Science degree in Finance from Marquette University (1984) and an MBA from Fordham University (1989).

Jim Bianco

Mr. Forman is the Founder and Managing Partner of ParaFi Capital. ParaFi is a leading investment firm focused on the blockchain and digital asset markets, and an early pioneer in decentralized finance (“DeFi”). ParaFi is one of the largest investors, users, and governance participants within the DeFi ecosystem, spanning the full network lifecycle from pre-launch to full decentralization. Mr. Forman serves as the Chief Investment Officer across the firm’s strategies, which include investing in public and private cryptoassets, systematic credit and market neutral DeFi strategies, and blockchain-focused venture capital and growth equity investing.



Prior to founding ParaFi in 2018, Mr. Forman spent 10 years at leading alternative investment managers, including KKR and TPG. While at KKR, Mr. Forman served as a Director in the Credit business, investing across a wide array of industry sectors and strategies, including distressed special situations, private credit, and opportunistic and liquid credit. Prior to KKR, Mr. Forman served as a Vice President with TPG’s former credit business, Sixth Street Partners, as one of the first investment professionals to join the platform, helping scale its private credit vehicle, TPG Specialty Lending, which listed publicly in 2014. Earlier in his career, Mr. Forman worked in private equity at Littlejohn &amp; Company and investment banking at Rothschild &amp; Co. Mr. Forman graduated with a B.A. in Philosophy, Politics and Economics, magna cum laude, from the University of Pennsylvania.

Ben Forman

Haseeb is a Managing Partner at Dragonfly. He was previously a partner at Metastable Capital, and has a background in software engineering at Airbnb and Earn.com (acquired by Coinbase).

Haseeb Qureshi

Vanessa Grellet is a Managing Partner at Aglaé Ventures. Vanessa is a Global Executive with over 20 years of expertise in the Financial Services and Tech industry. At Aglaé Ventures she manages the Web 3 focused fund. Prior to joining Aglae she has Head of Portfolio growth at CoinFund and Executive director at ConsenSys where she focused on driving adoption for Ethereum based products,  Strategic initiatives, Alliances and Channels.  She was involved in setting up the Enterprise Ethereum Alliance (EEA), the Accounting Blockchain Coalition (ABC) and the Blockchain for Social Impact Coalition (BSIC). Prior to ConsenSys she was a Strategy Executive at NYSE focused on investments and M&amp;A and a key member of PwC’s global wealth management team. Vanessa is a Founding Board member of AABC focused on Blockchain and Art, a member of the Advisory Council of ConsenSys, a Milken Institute Associate, a contributor to the  World Economic Forum Digital Future Council and part of <a href="https://cointelegraph.com/top-people-in-crypto-and-blockchain-2022/vanessa-grellet">Cointelegraph’s list of 100 most influential people for 2022</a>. Mrs. Grellet graduated Cum Laude from Law School (Paris II Assas) and Business School (HEC).

Vanessa Grellet

Mihailo Bjelic received his MSc in CS from the University of Belgrade. Prior to entering Web3/blockchain industry, he co-founded an AI/ML-powered platform for automotive industry and several other smaller startups and side projects. In 2017, he decided to join the Web3 movement full-time, primarily as a researcher interested in Ethereum scaling and multi-chain paradigms. In parallel with his work, he became one of the prominent Ethereum proponents and community members. In 2019, he started working on Polygon and conceptualized its architecture, vision and brand. In 2020, he joined hands with the Matic Network team and they have been working together on Polygon since then.

Mihailo Bjelic

Ben is a co-founder of Optimism, a leading Ethereum L2 ecosystem. He served as Chief Scientist before becoming a director at the Optimism Foundation. In his free time, he makes Ethereum-based parody songs under his stage name, Weird ETH Yankovic.

Ben Jones

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Speaker applications can be submitted <a href="https://form.asana.com/?k=L3gwAY1GRAX-RRAGDZYc0g&amp;d=1199885946213540">here</a>. Due to the high volume of submissions, we will not respond to all applicants. We anticipate &lt;2% of applicants being selected.
Blockworks&#8217; content team will reach out in the event you are accepted to speak. Please do not follow up directly.

Speaker Application

<h2>Why Sponsor Permissionless 2023?</h2>
If you’re serious about crypto, you have to be at Permissionless. Permissionless brings together DeFi builders, DAO participants, protocol developers, crypto companies, funds and institutions, and more. It’s a true crypto-native’s paradise, where you’ll have the opportunity to showcase your offerings and form lasting connections with the community.
We’ll work with your team to define the perfect sponsorship opportunity that best fits your needs and budget. Want to do something completely revolutionary? Our team can help design a bespoke package that brings your vision to life.
Get in touch with us at <a href="mailto:sales@blockworks.co">sales@blockworks.co</a>
&nbsp;