📜Coin Center to Challenge Tornado Cash Sanctions - TWJ #209
The crypto policy think-tank is on the move.
Hi folks,
My other publication, Pensive Pragmatism, is doubling down. We are launching a new weekly series called “pls fix: [topic]” where we will provide strategic recommendations for a specific protocol or sector in crypto. Crypto is innovating at a lightning pace; and while I don’t claim to have all the answers, I believe that documenting these ideas in public is a good first step to instigating further discussions. I hope you’ll share it if you find it enjoyable.
Here are the quick takeaways:
Most (if not all) AMMs are not generating real profit.
Protocols should think about how they can accrue value back to token holders ASAP, especially those with less capital on their treasury reserves.
Protocols can ignore value accrual mechanics so long as their treasury is large enough but to the detriment of token holders.
Protocols can provide their own liquidity and generate real profits with a much smaller capital thanks to concentrated liquidity.
Vertically integrating with other DeFi products (wallets, play-to-earn, etc.) proved to be extremely beneficial for an AMM’s profitability.
In today’s issue:
The crypto market is flat with its total market cap above ~$1.1 trillion. Chiliz (CHZ) has been the best performer in the top 100 in the past 24-h. US housing data will be out later today, signs are showing the market is slowing fast as interest rate increases.
In other news, Coin Center prepares legal challenge to Tornado Cash sanctions, Dragonfly Capital rebrands and acquires MetaStable capital, and Celsius reports $2.8 billion in crypto liabilities.
We’re continually improving our content, please reach out if you have ideas or want us to recap another market segment.
- Curated by Marco Manoppo (@manoppomarco)
📰Market News
⎆Coin Center Prepares Legal Challenge to Tornado Cash Sanctions
The crypto policy think-tank is reportedly preparing a legal challenge to the US Treasury’s sanctions on Tornado Cash.
"By treating autonomous code as a 'person' OFAC exceeds its statutory authority,"
"This action sends a signal—indeed seems to have been intended to send a signal—that a certain class of tools and software should not be used by Americans even for entirely legitimate purposes,"
⎆Dragonfly Capital Rebrands and Acquires Metastable Capital
The crypto investment firm led by Haseeb Qureshi and Bo Feng has acquired MetaStable capital, one of the oldest crypto funds that were founded by Naval Ravikant in 2014, and rebranded its name (as well as its website) from Dragonfly Capital to just Dragonfly.
⎆Celsius Reports $2.8 Billion in Crypto Liabilities
The troubled crypto lender saga continues as filing shows that Celsius could run out of money by October. The firm still owes depositors approximately $2.8 billion in crypto.
👨🏻💻Decentralized Finance (DeFi)
Tornado Cash Multisig Disbanded
Celsius Network Coin Report Shows a Balance Gap of $2.85 Billion
Canto Genesis & Token Distribution
StarkWare Launches Recursion to Streamline Ethereum
StarkNet System Issue on Goerli
🏛Governance - Active Proposals
PoolTogether - PTIP 80 - Treasury Assets Management #2
Reflexer Ungovernor - Stop three year Sablier stream for DAO lead
🦮NFT & Metaverse
CryptoPunks & Meetbits IP Rights Get Released
Top Sales (Last 24-h); Source: https://dappradar.com/nft
📈Deal Flow & Capital Raise
MetaStable Capital - Undisclosed $ of Acquisition by Dragonfly
⚖️Regulatory Update
US Fed Opens Pathway for Crypto Banks to Tap Central Banking System
Revolut Gets Approval to Offer Crypto Services Throughout Europe
EU is on the Verge of Creating a New AML Regulator for Crypto
Korean Regulators Investigate Banks Over $6.5B Tied to Kimchi Premium
Coin Center May Challenge Us Treasury’s Sanctions on Tornado Cash in Court
📚Noteworthy Reads
Galois Capital’s Thread on Net Short on ETH
Zaheer’s Thread on Trading, Investing, and Being Long-term Oriented
Andrew Hayward’s Read on Why NFT Creators and Collectors Can’t Stop Talking About Artist Royalties
Feel free to reach out to manoppomarco@gmail.com — feedbacks and constructive criticisms are much appreciated.