🔱ETH PoW Fork Has a Rocky Start - TWJ #231
The dump continues.
Hi folks,
At this point, we’re all aware that the merge is the act of merging the existing Ethereum network with a Proof-of-Work (PoW) consensus with an existing parallel chain that has been running with a Proof-of-Stake (PoS) consensus called the Beacon Chain. It will transition the Ethereum network from PoW to PoS.
Why it matters: Ethereum is the most utilized blockchain with more than $30 billion of value built across decentralized applications built on top of it. ETH is also the second largest crypto asset with close to $200 billion in market capitalization.
The merge will also prove that it is possible to maintain and upgrade a massive decentralized network, further proving that the vision of web 3.0 is feasible.
In today’s issue:
The crypto market is down with its total market cap above ~$900 billion. Chiliz (CHZ) has been the best performer in the top 100 in the past 24-h. The US yield curve continues to invert (2y vs 10y), which has been one of the most accurate recession signals for the market.
In other news, Ethereum PoW fork has a rocky start, Gensler comments on Proof-of-Stake assets, and CFTC prepares to oversee crypto.
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
⎆Ethereum POW Fork Has a Rocky Start
Ethereum’s Proof-of-Work fork, called ETHW, is trading down significantly from a local high of $50 to $13 as the old Ethereum miners are juicing every possible liquid left out of the forked chain.
⎆Gensler Comments on Proof-Of-Stake Assets
The SEC chair made a comment that Ethereum’s recent move to Proof-of-Stake might increase the agency’s scrutiny of the asset.
Securities and Exchange Commission Chairman Gary Gensler said Thursday that cryptocurrencies and intermediaries that allow holders to “stake” their coins might pass a key test used by courts to determine whether an asset is a security. Known as the Howey test, it examines whether investors expect to earn a return from the work of third parties.
⎆CFTC Prepares to Oversee Crypto.
CFTC Chair Behnam stated that the agency is preparing to become the regulator that will oversee crypto.
Behnam told senators the CFTC has already started preparing to become the crypto industry’s watchdog. “The volatility in the market, and its impact on retail customers — which may only worsen under current macroeconomic conditions – emphasizes the immediate need for regulatory clarity and market protections,” Behnam said in prepared remarks to the Agriculture Committee.
👨🏻💻Decentralized Finance (DeFi)
Aztec Integrates with Yearn
Big Firms Dominate Post-Merge Ethereum Validation
ETHPoW Gets Off to Rocky Start
Binance Labs Doubles Down on Aptos
🏛Governance - Active Proposals
Fei - TIP-121a (cont.): Sell last LUSD, Timelock and Role Cleanup + La Tribu Clawback
Fei - TIP-121c: INDEX OTC
Gitcoin - Gitcoin // Radicle Public Goods Alliance
Tribe NopeDAO - Veto for TIP_123: Deprecate Optimistic Governance and the Tribal Council
🦮NFT & Metaverse
Magic Eden Defends Launch of NFT Royalty Enforcement Tool
A Bored Ape Ethereum NFT Owner is Launching a Real-World Yacht Club
Epic Games Store Launches First NFT Game
JPMorgan: China’s Metaverse-Related Economy Could Reach $4T
Top Sales (Last 24-h); Source: https://dappradar.com/nft
📈Deal Flow & Capital Raise
Infinity Exchange - $4.2M Seed Round
Magna - $15M Seed Round
Valkyrie - $47M Valkyrie Trust
Two Sigma - $400M for 2 Funds
⚖️Regulatory Update
Gensler Says Proof-of-Stake Assets Could Be Securities: Report
Treasury Sanctions Pro-Russia Groups Raising Funds With Crypto
Senator Toomey Challenges Gensler’s View
Digital Euro Must Be Green, Private and Possibly Capped
CFTC Already Preparing to Be Crypto Watchdog, Behnam Tells US Senators
Crypto Unit of Japan's SBI Wins Capital Markets License in Singapore
South Korea Looks to Invalidate Terra Co-Founder Do Kwon's Passport: Report
Thailand's SEC Bans Crypto Firms From Offering Staking and Lending Service
📚Noteworthy Reads
Jiaqi’s Read on VRGDA - Why is it a better NFT issuance model
Korpi’s Thread on Ethereum Merge
Dan McArdle’s Thread on The Ethereum Merge is Bullish
Feel free to reach out to manoppomarco@gmail.com — feedbacks and constructive criticisms are much appreciated.