Welcome back to the Trader Top 9! Hoaxes, threats, front running, and a really bad day for Solana. Yet record deals continue to get done. This week had it all. Let's dive in!
9. As we headed into this past weekend, we learned the US Treasury Department is considering launching an FSOC exam which could lead to much tougher rules and enforcements for stablecoins like Tether, which back a large percentage of overall cryptocurrency transactions.
8. Then on Monday, we saw perhaps the strangest headlines of the year and a true WTF moment for most crypto insiders. It was quickly debunked, but not before some crazy trade activity that likely led to huge illicit gains for the market manipulator. While many headlines seem to pass this off as a crypto scam, many rightly pointed out that the media should just get better at doing its job.
7. Building on the SEC-Coinbase feud over their lending program, Gensler piled it on during a Tuesday hearing with the Senate Banking Committee.
6. Despite its meteoric rise this year, on Tuesday we learned that Solana hasn't been fully tested and is apparently still in Beta?
Hot take: Super wide markets or excessive fees are basically equal to no market at all.
5. A running joke is that crypto inevitably just recreates a lot of what exists in TradFi. In this case, just blatant front-running, insider trading, whatever you want to call it. All in the roaring NFT market.
In any case, the public blockchain and self-policing community was able to snuff out bad behavior faster than Gary Gensler can yell, "Security!"
4. Despite all the regulatory uncertainty facing Coinbase, it appears that investors are simply too hungry for yield and trust a crypto industry leader.
3. And it's not just Coinbase bonds... Investors are piling into crypto venture funds at a ridiculous scale. It's one huge deal after another, with both Jump and GTS having big announcements this week. Less than a week removed from DTAP's 10T, Bain Capital Ventures, and Pantera all announcing huge new funds. And after its $2.2B announcement in June, the a16z team continues to hire top dealmaking talent.
2. At yesterday's SALT conference in NY, hedge fund titan Ray Dalio told Andrew Ross Sorkin that while he believe regulators could try to kill Bitcoin if it got too big, he still said he owns it as a great alternative to cash. While some criticized his lack of faith, NLW had a great take.
1. Looking to the future, Coinbase co-founder Fred Ehrsam paints a picture of how mainstream crypto might one day become.