Is Gary Gensler Winning? 😕
In today's edition: 🎙️ New pod on the Uniswap drama, ❌ SEC crushes staking, 💱 Aave unveils new stablecoin, 🕵️♀️ Paxos is probed, and more!
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On the Pod…
Chris Blec on Why He Believes a16z’s Uniswap Vote Exposes DeFi as a Farce
Chris Blec, DeFi researcher and founder of the Blec Report, explains why he believes the involvement of Andreessen Horowitz (a16z) in a contentious Uniswap governance proposal flies in the face of crypto’s core value: decentralization.
He argues that the venture capital firm’s ability to potentially sway the vote in favor of a portfolio company undermines claims that DeFi is “people-powered.” The vote, which is not yet concluded, is the latest venue for people to debate the merits of DeFi governance and whether one token really should equal one vote.
Show highlights:
why a16z decided to vote against a key section of the Uniswap governance proposal
the problem Chris sees with the current design of DAOs
whether there is a parallel to be drawn between TradFi and DAO governance
why Chris says people are mistaken when they think about the goals of crypto VC
whether the fact that some VCs control so much voting power goes against the ethos of decentralization
how Chris thinks VCs are funding lobbyist groups to push for their interests, not those of crypto as a whole
why Chris believes the "one token, one vote" system doesn't work
some alternatives that could be pursued to help the issue of whale token voting
whether regulators will come after DAOs and especially the ones that are using current governance mechanisms
What’s Poppin’?
by Juan Aranovich
Kraken Settles With SEC, Shuts Down Crypto Staking Service
The SEC cracked down on Kraken for its staking-as-a-service program, citing securities violations. Kraken will pay a $30 million fine and end its staking services for US clients.
Paxos Under Investigation by New York Regulator
According to CoinDesk, The New York Department of Financial Services is reportedly investigating Paxos, issuer of the Pax dollar and BUSD stablecoins. This news follows speculation that Paxos had been asked to withdraw its application for a full banking charter with the U.S. Office of the Comptroller of the Currency, which the company denies.
Paxos holds a virtual currency license issued by the New York regulator, which released guidance on stablecoins in June after the Terra ecosystem collapse. The guidance stated that stablecoins must be backed by assets that are kept separate from the issuers' funds to ensure stability.
Su Zhu and Kyle Davies Partner to Launch Exchange for Crypto Claims Trading
The founders of the failed crypto hedge fund Three Arrows Capital (3AC), Su Zhu and Kyle Davies, have joined forces with CoinFlex to establish Open Exchange.
Dubbed as the "world's first public marketplace for crypto claims trading and derivatives," Open Exchange aims to address the $20 billion market of claimants searching for a resolution to their lost funds from bankrupt crypto firms including FTX, Voyager Digital, Celsius Network, Genesis, BlockFi, Mt. Gox, and 3AC itself. The platform promises to monetize these claims by providing a trading marketplace for these claimants.
Aave Deploys Native Stablecoin GHO on Ethereum Goerli Testnet
Aave, a decentralized finance (DeFi) protocol, has unveiled its native stablecoin GHO on the Ethereum Goerli testnet. The stablecoin, which is overcollateralized and backed by crypto assets, will allow developers and potential users to test its performance before its full release. The price of GHO will be fixed at $1 through an oracle and its supply will be managed through a mint-and-burn mechanism.
Staking the AAVE governance token may give users access to discounted borrowing rates for GHO.
Aave DAO will be responsible for determining GHO's supply, interest rate, and risk parameters. GHO's mainnet launch is subject to community discussion and approval.
In Other News…✍️✍️✍️
According to court documents, the bankrupt cryptocurrency brokerage firm Voyager Digital proposed a plan for its customers to retrieve their assets through Binance US.
A New York judge ordered Sam Bankman-Fried's lawyers to submit a proposal for modifying his bail conditions that include details on the suggestion to install a recording application on his phone, potentially ending the disagreement between prosecutors and the former FTX CEO's lawyers.
Bitfarms, a Bitcoin mining company, agreed to pay $7.75 million in a single cash payment to settle its remaining $21 million debt with the bankrupt lender BlockFi.
The United States and the United Kingdom jointly imposed sanctions against seven members of the notorious Russian hacking group, Trickbot.
Various entities voiced their objections to Celsius seeking to extend the deadline for submitting its Chapter 11 reorganization plan for a second time.
Binance integrated zk-SNARKs into its proof-of-reserves (PoR) verification system to confirm that the funds held on the platform have a 1:1 backing.
Optimism Network, a layer 2 on Ethereum, carried out an unexpected token distribution of 11.7 million governance tokens to over 300,000 wallet holders.
MakerDAO integrated Chainlink's smart contract automation into its Keeper system to stabilize its DAI stablecoin, allowing for specific tasks such as price updates and liquidity balancing to be carried out.
Today in Crypto Adoption...
A collection of 300 Ethereum NFTs that held a portion of the royalties from Rihanna's hit song "Bitch Better Have My Money" was sold out and redistributed among 205 individuals.
MoonPay, a web3 payments company, is collaborating with LooksRare, an NFT marketplace, to enable traders to effortlessly buy cryptocurrency and NFTs on the platform.
The $$$ Corner…
Coincover, a UK-based digital assets protection company, raised $30 million in a funding round led by Foundation Capital.
Dymension, a blockchain platform that utilizes the technologies of Cosmos and Celestia, garnered $6.7 million in investment during a seed funding round.
Vault, a digital collectible format for music created by the co-founders of the sports betting company FanDuel, received $4 million in investment during its Series A funding round.
What Do You Meme
📈 Your Market Update 📉
BTC is down 2.11%, trading at $22,720
ETH is down 2.41%, trading at $1,633
BTC dominance: 39.75%
Crypto market cap: $1.1 trillion
*All data as of today, 5 am ET
Recommended Reads
FT Exclusive on the bizarre and brutal final hours of FTX
Wylie Aronow, the co-founder of Yuga Labs, responds to the racist accusations embedded within the Bored Ape Yacht Club NFT project
Rebecca Rettig, CPO at Polygon Labs, on the Kraken agreement with the SEC:
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