Many recent IEOs have never even been known to any community. Absolute random shady coins.
As it seems, exchanges loudly yelled "fuck it" and stopped pretending to do project due diligence.
They see there is no correlation between value & price, so users just want to long or short as well.
It's not news, this was the case before, but bear market amplifies the hopelessness of people.
Exchanges slam marketmakers onto random lowcaps and have people gamble. But it's fine!
Up until there is cash flow from projects assuming adoption, all of the partnerships matter none and are no better than just gambling.
Right now: a shitcoin with a marketmaker > a coin with legit use cases. Because of the cashflow shortage, either from usage or community belief.
If you want to see value and fundamentals play out, you need to stay through the washout.
As it seems, exchanges loudly yelled "fuck it" and stopped pretending to do project due diligence.
They see there is no correlation between value & price, so users just want to long or short as well.
It's not news, this was the case before, but bear market amplifies the hopelessness of people.
Exchanges slam marketmakers onto random lowcaps and have people gamble. But it's fine!
Up until there is cash flow from projects assuming adoption, all of the partnerships matter none and are no better than just gambling.
Right now: a shitcoin with a marketmaker > a coin with legit use cases. Because of the cashflow shortage, either from usage or community belief.
If you want to see value and fundamentals play out, you need to stay through the washout.
Origin of Blockchains 🌿 Nature
You might be familiar that the way decentralized networks work resembles an efficient ecosystem, the likes of how the DNA functions. Here is some really cool content which dives into how blockchains could evolve based on cell theory.
A nice Sunday read: https://medium.com/id-theory/on-the-origin-of-blockchains/home
You might be familiar that the way decentralized networks work resembles an efficient ecosystem, the likes of how the DNA functions. Here is some really cool content which dives into how blockchains could evolve based on cell theory.
A nice Sunday read: https://medium.com/id-theory/on-the-origin-of-blockchains/home
Portions of a social network can thus turn into filter bubbles, in which individuals see only an algorithmically curated subset of the larger conversation. Filter bubbles reinforce political views, or even make them more extreme, and drive political polarization.
This can be related to hating DPOS in crypto, believing some pamp alt will change the future, and so on... A very interesting read 👉 https://www.nature.com/articles/d41586-019-02562-z
This can be related to hating DPOS in crypto, believing some pamp alt will change the future, and so on... A very interesting read 👉 https://www.nature.com/articles/d41586-019-02562-z
Why is my amazing product not mooning? - there is nothing good and bad, it all depends on how much someone else values it. And when your industry is not valued at all in general, the answer is clear.
In a terrible market, you can have the best product in the world and an absolutely killer team, and it doesn’t matter — you’re going to fail. — Marc Andreessen
The Founder’s Guide to Markets 👉 https://anujabrol.com/the-founders-guide-to-markets-345c8bc2991c
In a terrible market, you can have the best product in the world and an absolutely killer team, and it doesn’t matter — you’re going to fail. — Marc Andreessen
The Founder’s Guide to Markets 👉 https://anujabrol.com/the-founders-guide-to-markets-345c8bc2991c
Political Theology of Crypto
Crypto unlocks an ancient form of political theology which uses the power of truth to ensure that the ‘laws’ of the system cannot be broken.
⛓ http://cryptosovereignty.org/the-political-theology-of-crypto/
Imho: the technology executes how we designed it to do it. But it's the social consensus that gives a cryptocurrency its value. There is no right or wrong in the code itself, it's what people make out of it. If your fork does not appeal to "social", it will simply exist there as the "wrong" chain and lose that much value accordingly.
Crypto unlocks an ancient form of political theology which uses the power of truth to ensure that the ‘laws’ of the system cannot be broken.
⛓ http://cryptosovereignty.org/the-political-theology-of-crypto/
Imho: the technology executes how we designed it to do it. But it's the social consensus that gives a cryptocurrency its value. There is no right or wrong in the code itself, it's what people make out of it. If your fork does not appeal to "social", it will simply exist there as the "wrong" chain and lose that much value accordingly.
There Is No Tech Backlash
Have you heard pitches about privacy-oriented technologies, abolishment of the old social media, and users fleeing Facebook and Instagram? It's all fake.
I am not a fan of articles in big publications as they are often very biased, but this one is decent 📲 https://www.nytimes.com/2019/09/14/opinion/tech-backlash.html
An average user will not run a node. Will not care about who handles their data. Will not care who handles their bank account.
But maybe... YOU should care?
Have you heard pitches about privacy-oriented technologies, abolishment of the old social media, and users fleeing Facebook and Instagram? It's all fake.
I am not a fan of articles in big publications as they are often very biased, but this one is decent 📲 https://www.nytimes.com/2019/09/14/opinion/tech-backlash.html
An average user will not run a node. Will not care about who handles their data. Will not care who handles their bank account.
But maybe... YOU should care?
WeWork: Shitcoin of Real World 🤢
I guess you have all heard about WeWork and its continuously failing IPO. It's really astonishing!
-> Valuation "from $67 billion to $10 billion in 7 days" pre-IPO still
-> CEO Adam Neumann has made millions in deals leasing properties to his own company
-> Facebook raised $2.2 billion pre-IPO. Google raised $130m pre-IPO, Ebay $6.9 million. WeWork has raised $14 billion so far.
The only reason it was valued at $47 billion is purely because one individual in Japan bafflingly and solely invested a total of $12 billion, in 9 separate funding rounds, each at double the price (and valuation) he (and he alone) paid less than 6/12 months prior. - averaging up? 😂
A fun story about Adam & Miguel doing crazy stuff, and how being an accredited investor doesn't mean having a gram of a brain 👉 https://www.zerohedge.com/markets/wework-fraud
I guess you have all heard about WeWork and its continuously failing IPO. It's really astonishing!
-> Valuation "from $67 billion to $10 billion in 7 days" pre-IPO still
-> CEO Adam Neumann has made millions in deals leasing properties to his own company
-> Facebook raised $2.2 billion pre-IPO. Google raised $130m pre-IPO, Ebay $6.9 million. WeWork has raised $14 billion so far.
The only reason it was valued at $47 billion is purely because one individual in Japan bafflingly and solely invested a total of $12 billion, in 9 separate funding rounds, each at double the price (and valuation) he (and he alone) paid less than 6/12 months prior. - averaging up? 😂
A fun story about Adam & Miguel doing crazy stuff, and how being an accredited investor doesn't mean having a gram of a brain 👉 https://www.zerohedge.com/markets/wework-fraud
ProgPow 🎰 Ethereum, miners, ASICs - all you need to know
In short: ASIC & GPU meme for ETH is live again - centralization, sir?
Evil rich Chinese mafia running ASICs, and holy GPU miners available to every human being like me and you - that's what the discussion has been around many protocols for years.
The past few days this topic has been increasingly hot as some believe it can lead to a fork of Ethereum. With all the attention ETH PoS and 2.0 have been getting, and some major improvements been made with new ETH clients, for some god-forsaken reason core devs decided to put time into making incrimental changes on the current PoW algo instead of just speeding up the development. In fact, even if you decide to go with ProgPow, it will take months before it's implemented, in which case you are better off just speeding PoS.
Is it worth to deal with it now? Some say yes, because GPU mining will enable people to run nodes as a normal human being. ASICs, meaning existing mining farms, are supposed to be against it. What is actually true here? Well, apart from lack of audits, weird timing, IP concerns, and more - hopefully it won't lead to ETC2.
What is ProwPow?
EIP 1057: ProgPoW, a Programmatic Proof-of-Work. ProgPoW is a proof-of-work algorithm designed to close the efficiency gap available to specialized ASICs. It utilizes almost all parts of commodity hardware (GPUs), and comes pre-tuned for the most common hardware utilized in the Ethereum network.
EIP Website techy: https://eips.ethereum.org/EIPS/eip-1057
Some interesting throughts and reads
Ameen of Spankchain/MolochDAO against ProgPow - https://twitter.com/ameensol/status/1175430960734715906
Brendan of Dharma against ProgPow - https://twitter.com/brendan_dharma/status/1175260964347711488
Alex van de Sande against ProgPow - https://twitter.com/avsa/status/1175449754467229698
🤔 Are miners just evil people outside of our crypto economy just dumping our ethers - or are they unwanted but required executioners helping the network?
In short: ASIC & GPU meme for ETH is live again - centralization, sir?
Evil rich Chinese mafia running ASICs, and holy GPU miners available to every human being like me and you - that's what the discussion has been around many protocols for years.
The past few days this topic has been increasingly hot as some believe it can lead to a fork of Ethereum. With all the attention ETH PoS and 2.0 have been getting, and some major improvements been made with new ETH clients, for some god-forsaken reason core devs decided to put time into making incrimental changes on the current PoW algo instead of just speeding up the development. In fact, even if you decide to go with ProgPow, it will take months before it's implemented, in which case you are better off just speeding PoS.
Is it worth to deal with it now? Some say yes, because GPU mining will enable people to run nodes as a normal human being. ASICs, meaning existing mining farms, are supposed to be against it. What is actually true here? Well, apart from lack of audits, weird timing, IP concerns, and more - hopefully it won't lead to ETC2.
What is ProwPow?
EIP 1057: ProgPoW, a Programmatic Proof-of-Work. ProgPoW is a proof-of-work algorithm designed to close the efficiency gap available to specialized ASICs. It utilizes almost all parts of commodity hardware (GPUs), and comes pre-tuned for the most common hardware utilized in the Ethereum network.
EIP Website techy: https://eips.ethereum.org/EIPS/eip-1057
Some interesting throughts and reads
Ameen of Spankchain/MolochDAO against ProgPow - https://twitter.com/ameensol/status/1175430960734715906
Brendan of Dharma against ProgPow - https://twitter.com/brendan_dharma/status/1175260964347711488
Alex van de Sande against ProgPow - https://twitter.com/avsa/status/1175449754467229698
🤔 Are miners just evil people outside of our crypto economy just dumping our ethers - or are they unwanted but required executioners helping the network?
MakerDAO to become MakerKYC? 🤐
If you know Ethereum, then you know DeFi, then you know Maker. It's one of the only successful and relatively large blockchain working products/protocols. Think of 1 DAI as $1. What makes it unique is each DAI is backed by Ether instead of a 3rd party claiming to have the required collateral - you just have that collateral on-chain. Here is a nice read: https://hackernoon.com/whats-makerdao-and-what-s-going-on-with-it-explained-with-pictures-f7ebf774e9c2
Anyway, previosuly Maker team initiated a vote on making a MCD: multi-collateral with some weird illiquid coins, no offense. This was weird enough by itself, but now the team is going even further, suggesting to make collateral with real-world assets. No comment is needed to explain how it will impact the idea of a a decentralized stablecoin, right?
Here is a reddit thread if you want to know more and see some ideas:
https://www.reddit.com/r/ethfinance/comments/d6y6mx/including_nontrustless_assets_in_mcd_a_hidden/
Question ❓ Does the Maker project face a huge problem if it includes permissioned/non-trustless assets in the MCD collateral pool?
If you know Ethereum, then you know DeFi, then you know Maker. It's one of the only successful and relatively large blockchain working products/protocols. Think of 1 DAI as $1. What makes it unique is each DAI is backed by Ether instead of a 3rd party claiming to have the required collateral - you just have that collateral on-chain. Here is a nice read: https://hackernoon.com/whats-makerdao-and-what-s-going-on-with-it-explained-with-pictures-f7ebf774e9c2
Anyway, previosuly Maker team initiated a vote on making a MCD: multi-collateral with some weird illiquid coins, no offense. This was weird enough by itself, but now the team is going even further, suggesting to make collateral with real-world assets. No comment is needed to explain how it will impact the idea of a a decentralized stablecoin, right?
Here is a reddit thread if you want to know more and see some ideas:
https://www.reddit.com/r/ethfinance/comments/d6y6mx/including_nontrustless_assets_in_mcd_a_hidden/
Question ❓ Does the Maker project face a huge problem if it includes permissioned/non-trustless assets in the MCD collateral pool?
TON Official Info & Code 🤓
Did you also get liquidated? No worries, Vitalik... uhh I mean another russki, Pavel, and his infamous blockchain TON, are here to save muh familie.
200,000 - 400,000 USD prize pool 🤑
This is actually the first official information released by Telegram about its blockchain TON. Includes Developer tasks related to Smart Contracts implementation, TON VM, bug bounty, and so on. 🤷♂️ If you are not retarded like me, you can still avoid working in McDonalds and buying a lambo with the prize money. Details: https://news.1rj.ru/str/contest/103
GitHub Looks Rekt 😖
Since the news are official, we can finally know that from all the fake repos, this one is official: https://github.com/ton-blockchain/ton/issues.
And oh boy is it rekt... The issues are ranging from "what the fuck is this" to "do you know what an SDK is". Clearly, developers are not impressed, and an EOS russki fanboy put a funny issue in there as well "have you ever built anything before or heard about optimization?"
Can it be a heterogeneous forest once again? Looks like it, so far, but it's sad and unexpected to see a great app/team make something that shitty for 1B.
PS: I am not enforcing it yet, thoughts to follow later. You are still probably 500% rekt if you bought it. Well, that is if your pool ever sends the coins to you...
Did you also get liquidated? No worries, Vitalik... uhh I mean another russki, Pavel, and his infamous blockchain TON, are here to save muh familie.
200,000 - 400,000 USD prize pool 🤑
This is actually the first official information released by Telegram about its blockchain TON. Includes Developer tasks related to Smart Contracts implementation, TON VM, bug bounty, and so on. 🤷♂️ If you are not retarded like me, you can still avoid working in McDonalds and buying a lambo with the prize money. Details: https://news.1rj.ru/str/contest/103
GitHub Looks Rekt 😖
Since the news are official, we can finally know that from all the fake repos, this one is official: https://github.com/ton-blockchain/ton/issues.
And oh boy is it rekt... The issues are ranging from "what the fuck is this" to "do you know what an SDK is". Clearly, developers are not impressed, and an EOS russki fanboy put a funny issue in there as well "have you ever built anything before or heard about optimization?"
Can it be a heterogeneous forest once again? Looks like it, so far, but it's sad and unexpected to see a great app/team make something that shitty for 1B.
PS: I am not enforcing it yet, thoughts to follow later. You are still probably 500% rekt if you bought it. Well, that is if your pool ever sends the coins to you...
SEC 👉👌💦 Block One 🤦♂️
Raised for EOS coin: 4B
Paid for voicecom domain: 30M
Penalty by the SEC 💩 24M
They literally just paid without admitting or denying its findings cause why would the give a f lol 🤷♂️ By the way, many assume that 4B USD was not actually raised as part was manipulated for the sake of auction fomo, and part was washed via ETH-EOS-Exchange loop. In any case, these numbers are just funny.
Recipe: just account for the SEC fine in your PnL and you are good. bit.ly/2oMjFJZ
Raised for EOS coin: 4B
Paid for voicecom domain: 30M
Penalty by the SEC 💩 24M
They literally just paid without admitting or denying its findings cause why would the give a f lol 🤷♂️ By the way, many assume that 4B USD was not actually raised as part was manipulated for the sake of auction fomo, and part was washed via ETH-EOS-Exchange loop. In any case, these numbers are just funny.
Recipe: just account for the SEC fine in your PnL and you are good. bit.ly/2oMjFJZ
CoinGecko Quaterly Report 🐸
A cool Quarterly report, focusing on DeFi: derivatives, liquidity, dApps, and so on. If you actually wondered what usage is happening around if any - it would very useful to have a look: https://assets.coingecko.com/reports/2019-Q3-Report/CoinGecko-2019-Q3-Report.pdf
A cool Quarterly report, focusing on DeFi: derivatives, liquidity, dApps, and so on. If you actually wondered what usage is happening around if any - it would very useful to have a look: https://assets.coingecko.com/reports/2019-Q3-Report/CoinGecko-2019-Q3-Report.pdf
Mom, what happens to my mining rewards when Bitcoin block rewards go to ≈0 🤔
If you don't want to read my rant, just click the click and read the awesome paper.
Well, son, the 21M Bitcoin might have been a meme. Do you recall all the tweets about:
- Never ever will more than 21M Bitcoin exist
- No inflation, fixed supply, no money printing by evil banks
It's all fancy-schmancy before you actually think about how it works...
As a miner, you are not running a node as a charity. You spend energy if you stake you have a different equation here, but we don't really need this difference here now. Anyway, you need to have an income to cover your expenditure for doing work. It's either you tax users by charging transaction fees or get paid by the protocol for doing work for it. The former takes a part of what a user owns and the latter is what is called block rewards: inflation but at a verifiable and pre-agreed way, so people are okay with it.
As a comparison, USD inflation is not okay because it's unproven, random, and is not reached by the consensus of the network and its participants.
Issue with Bitcoin 🤕 That block subsidy, which currently makes up 99% of the total block reward, is being phased out according to Bitcoin’s fixed emission schedule. In 2020, Bitcoin’s annual issuance will fall to 1.8%. By 2028 it has halved twice more to 0.5%. As a result, the most important source of miner revenue, the block subsidy, will have to be replaced by an entirely new source of revenue.
Basically, where will miners be getting rewards for their work? The incentive model is why this entire thing functions!
What is the solution to this not-such-a-hypothetical problem?
1] increase max supply, but then one of the USPs of Bitcoin gets eliminated
2] improve blockspace
3] DAO-style to subsidize security via off-chain mechanism for donations
4] adapting the supply of blockspace
5] decreasing miner-extractable value
6] improving miner punishment
Narratives are a strong tool to make people do what you want - but they can also bite you back.
There is a reason why the financial system is the way it is now. It's not perfect, but it's not that way just because of evil old grandpas. Printing more money to grow the economy NOW and have your life become better is a choice people make because, mainly, due to their lifespan. Many don't care what happens with the economics in 200 years, but care what happens now. It's always an investment, with everything you do in life, because every valuable resource is scarce. that's why, in the first place. A cool topic over beers 🍻
Which side of the "solution" for this problem do you see as the best fit?
If you don't want to read my rant, just click the click and read the awesome paper.
Well, son, the 21M Bitcoin might have been a meme. Do you recall all the tweets about:
- Never ever will more than 21M Bitcoin exist
- No inflation, fixed supply, no money printing by evil banks
It's all fancy-schmancy before you actually think about how it works...
As a miner, you are not running a node as a charity. You spend energy if you stake you have a different equation here, but we don't really need this difference here now. Anyway, you need to have an income to cover your expenditure for doing work. It's either you tax users by charging transaction fees or get paid by the protocol for doing work for it. The former takes a part of what a user owns and the latter is what is called block rewards: inflation but at a verifiable and pre-agreed way, so people are okay with it.
As a comparison, USD inflation is not okay because it's unproven, random, and is not reached by the consensus of the network and its participants.
Issue with Bitcoin 🤕 That block subsidy, which currently makes up 99% of the total block reward, is being phased out according to Bitcoin’s fixed emission schedule. In 2020, Bitcoin’s annual issuance will fall to 1.8%. By 2028 it has halved twice more to 0.5%. As a result, the most important source of miner revenue, the block subsidy, will have to be replaced by an entirely new source of revenue.
Basically, where will miners be getting rewards for their work? The incentive model is why this entire thing functions!
What is the solution to this not-such-a-hypothetical problem?
1] increase max supply, but then one of the USPs of Bitcoin gets eliminated
2] improve blockspace
3] DAO-style to subsidize security via off-chain mechanism for donations
4] adapting the supply of blockspace
5] decreasing miner-extractable value
6] improving miner punishment
Narratives are a strong tool to make people do what you want - but they can also bite you back.
There is a reason why the financial system is the way it is now. It's not perfect, but it's not that way just because of evil old grandpas. Printing more money to grow the economy NOW and have your life become better is a choice people make because, mainly, due to their lifespan. Many don't care what happens with the economics in 200 years, but care what happens now. It's always an investment, with everything you do in life, because every valuable resource is scarce. that's why, in the first place. A cool topic over beers 🍻
Which side of the "solution" for this problem do you see as the best fit?
MakerDAO & DeFi: early ETH supporters eating their own dog food? Who are the users? 🦄
- The Top 10 CDP addresses account for 40.6% of the total DAI Supply
- The Top 100 CDP addresses account for 78.6% of the total DAI Supply
- As for the Top 10 addresses, 1 was an early ETH ICO project (Request Network), and 3 were ETH ICO participants (parent accounts are Genesis Block participants)
- Top 3 CDP address participated in theDAO ICO. Their risk tolerance are very high.
https://medium.com/ddex/who-are-top-10-makerdao-cdp-users-c6ed1f13304e
PS: well this makes sense as Sai [Single Collateral Dai] was enable for ETH only, so it makes sense only that community was active there.
- The Top 10 CDP addresses account for 40.6% of the total DAI Supply
- The Top 100 CDP addresses account for 78.6% of the total DAI Supply
- As for the Top 10 addresses, 1 was an early ETH ICO project (Request Network), and 3 were ETH ICO participants (parent accounts are Genesis Block participants)
- Top 3 CDP address participated in theDAO ICO. Their risk tolerance are very high.
https://medium.com/ddex/who-are-top-10-makerdao-cdp-users-c6ed1f13304e
PS: well this makes sense as Sai [Single Collateral Dai] was enable for ETH only, so it makes sense only that community was active there.
🦐 vs 🌊 | ETH vs EVM
Is it the seafood or the sea that you like?
When you go fishing, is it the water that you like, the fresh fish that you get, or the overall experience - that entices you? What exactly is there that is "sticky" about the idea of fishing? I hope you are not a pervert and did not immediately think of network effects - but if you did, welcome to the club, daddy, because you are right. If you need some context or education, see some stuff from a16z - https://a16z.com/2018/12/13/network-effects-dynamics-in-practice/
Sidenotes 👾 When you look into social networks or cryptocurrencies, network effects are your main catch. "Put simply, it is a phenomenon in which a good or service gains additional value as more consumers use it." - Uber, AirBnb, Facebook, etc. If you would apply it to BTC: the more people hold it, the stronger the Store of Value SoV narrative becomes. But what about other digital assets? Take any payment currency as an example. If the exchange between currencies and people has frictions, then it's easier if we all use one currency, like we all use USD for payments. But what if there were no frictions, then you would not have that value capture there. Because person no1 and no100 using it would have the same easy onboarding, offboarding, and so on. So you likely want to have friction if you expect value appreciation and stickiness. ?
Now to the actual topic. What is sticky about ETH?
It's not the open-source code of the chain. As we have seen, many projects have attempted to fork the code of Layer 1, but none are able to get the same exposure and community as Ethereum. So it's not about code or speed here really. Surely, some make their own chains, but that is usually for the sake of fundraising. So this is not the sticky flavour we are looking for. Community 👥 is the answer. Thousands of developers, contributors, evangelists, and other people around Ethereum.
But the question is, what exactly keeps this community together?
🎰 ETH = Bagholding Ethereums. Are they all bagholders, so they are working on value capture of Ethereum by building applications? In that case, it would make sense that the more people hold ETH and the more stick around & contribute - the more Ethereum appreciates. That's how incentives would work, so seems reasonable.
👾 EVM Is it actually the friendly tools developers use? In that case, one would see the applications become less L1-focused, and the community would evolve around EVM as a code-engine source, and not the financial bagholding spirit of ETH. But then the value capture would actually be at the application layer and not the layer 1 fat protocol thesis.
Why does this matter? This comes back to the question of value capture. Do developers really care about the growing ETH price, outside of security concerns. I personally feel like this is not the case anymore. In that case, the community will keep forming around the EVM as a concept, without any strong emphasis on ETH as an asset.
PS: there will soon be changes in the channel, for better or for worse!
Is it the seafood or the sea that you like?
When you go fishing, is it the water that you like, the fresh fish that you get, or the overall experience - that entices you? What exactly is there that is "sticky" about the idea of fishing? I hope you are not a pervert and did not immediately think of network effects - but if you did, welcome to the club, daddy, because you are right. If you need some context or education, see some stuff from a16z - https://a16z.com/2018/12/13/network-effects-dynamics-in-practice/
Sidenotes 👾 When you look into social networks or cryptocurrencies, network effects are your main catch. "Put simply, it is a phenomenon in which a good or service gains additional value as more consumers use it." - Uber, AirBnb, Facebook, etc. If you would apply it to BTC: the more people hold it, the stronger the Store of Value SoV narrative becomes. But what about other digital assets? Take any payment currency as an example. If the exchange between currencies and people has frictions, then it's easier if we all use one currency, like we all use USD for payments. But what if there were no frictions, then you would not have that value capture there. Because person no1 and no100 using it would have the same easy onboarding, offboarding, and so on. So you likely want to have friction if you expect value appreciation and stickiness. ?
Now to the actual topic. What is sticky about ETH?
It's not the open-source code of the chain. As we have seen, many projects have attempted to fork the code of Layer 1, but none are able to get the same exposure and community as Ethereum. So it's not about code or speed here really. Surely, some make their own chains, but that is usually for the sake of fundraising. So this is not the sticky flavour we are looking for. Community 👥 is the answer. Thousands of developers, contributors, evangelists, and other people around Ethereum.
But the question is, what exactly keeps this community together?
🎰 ETH = Bagholding Ethereums. Are they all bagholders, so they are working on value capture of Ethereum by building applications? In that case, it would make sense that the more people hold ETH and the more stick around & contribute - the more Ethereum appreciates. That's how incentives would work, so seems reasonable.
👾 EVM Is it actually the friendly tools developers use? In that case, one would see the applications become less L1-focused, and the community would evolve around EVM as a code-engine source, and not the financial bagholding spirit of ETH. But then the value capture would actually be at the application layer and not the layer 1 fat protocol thesis.
Why does this matter? This comes back to the question of value capture. Do developers really care about the growing ETH price, outside of security concerns. I personally feel like this is not the case anymore. In that case, the community will keep forming around the EVM as a concept, without any strong emphasis on ETH as an asset.
PS: there will soon be changes in the channel, for better or for worse!
Andreessen Horowitz
The Dynamics of Network Effects
The most successful companies and products of the internet era have all been predicated on the concept of network effects, where the network becomes more valuable to users as more people use it. This is as true of companies …
Sai to Dai: why migrate?
Sai to Dai migration has been ongoing for a few days, but the majority of Dai holders don't seem to be in a rush. And why would they? Sai lending rate is still around 6️⃣% on Compound. Economic incentives for existing holders are currently against migration.
You can try to arbitrage with 1inch exchange and then swapping 1:1 in the official app, or just educate yourself on these cool shenanigans 👨🎤 Anyway, this is an important step for the ecosystem -> blog.makerdao.com/what-to-expect-with-the-launch-of-multi-collateral-dai/
By the way, InstaDapp made some cool things to help migrate big CDPs: medium.com/instadapp/mcd-migration-70782c9e6730
Sai to Dai migration has been ongoing for a few days, but the majority of Dai holders don't seem to be in a rush. And why would they? Sai lending rate is still around 6️⃣% on Compound. Economic incentives for existing holders are currently against migration.
You can try to arbitrage with 1inch exchange and then swapping 1:1 in the official app, or just educate yourself on these cool shenanigans 👨🎤 Anyway, this is an important step for the ecosystem -> blog.makerdao.com/what-to-expect-with-the-launch-of-multi-collateral-dai/
By the way, InstaDapp made some cool things to help migrate big CDPs: medium.com/instadapp/mcd-migration-70782c9e6730
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Blockchain 4.0 CEO: "We launched our mainnet! It's the most resilient blockchain you've ever seen! 1 million TPS! Test it out!"
Me: Let me try sending a transaction...
Blockchain 4.0 refuses to work like intended.
Blockchain 4.0 CEO: "Oh, at least it didn't go through 🤷♂️"
See the new Tesla CyberTruck: youtu.be/DPQP68aGiqo?t=23
Me: Let me try sending a transaction...
Blockchain 4.0 refuses to work like intended.
Blockchain 4.0 CEO: "Oh, at least it didn't go through 🤷♂️"
See the new Tesla CyberTruck: youtu.be/DPQP68aGiqo?t=23
Synthetic Wealth? SNX 🏎 or 🍜
Synthetix aka Havven - a successful pivot into the product-market fit or just a narrative PnD.
Who is that SNX beast sitting at 200 million on CMC and almost 100x from the bottom? From 2M to 200M, damn! It's rebranded Havven which raised 30M at the beginning of 2018. Coming from a stablecoin market - the company made a pivot which resulted in booming growth in 2019. So what do they do?
Synthethic assets. You can lock up the collateral and issue a synthetic asset. You won't be able to issue a CyberTruck on-chain, but you can get exposure to Tesla stock without owning it. This includes iXTZ, iETH, iBTC, and so on. After all, you are doing it as a money-making game, not to actually have ownership of it. You can read more here: https://docs.ethhub.io/built-on-ethereum/open-finance/synthetix/. It's like MakerDao: you lock up ETH and now other assets with the arrival of MCD and issue Dai.
Lobster, are you shilling us a shitcoin? Ha! First of all, clap to founders for taking a better turn - if you measure success in USD and CMC, then you can say they did it / are doing it. However, Bitconnect was also going up. And it wouldn't be Blockchain Lobsters if there was not some unconventional scrutiny and fucking. Let's dive it.
1. Only SNX as collateral 🤢
The choice of collateral is very important, because you need something very liquid, moderately stable, and widely accepted. Now imagine I were to go back in time and as a bank issue dollars not by backing it with gold something that is widely trusted with no exceptions - but with the apples in my garden. A pretty messed up thing to do, right? Well, if you own the market, you can dictate what is worthy and what is not. In this market, only SNX can be used as collateral. And why is it bad?
PS update: this issue was brought up by XNS community, some ideas can be found here: https://github.com/Synthetixio/synthetix/issues/232
2. 750% collateralization ratio & no liquidation 😨
Imagine you want to issue Dai 1:1 USD and lock up ETH. If ETH goes down, you get liquidated and that ETH is used to support Dai price 1:1 USD. Now take a low liquidity coin and try to use it as collateral - you end up with moonlambo as you see on the charts. But it should be the other way around as well then? Well, no. SNX does not yet have liquidation. Meaning the system can be very much under-collateralized if the token goes down.
So how do they try to solve the incentives? You get to mint rewards if f you maintain more than 750% collateralization ratio. Holders are incentivized to mint more sUSD or other assets just to stay above 750% or buy up more. And if they are under 750%... they just can't touch their collateral. Or they just go leverage by buying more SNX. Have to say, the sUSD / ETH Uniswap pool is quite nice though 1200 real ETH, and if you bought SNX lower'ish, you would have made a fuuuuuuc load of money. Just on that synthetic side.
3. SNX Inflation goes from March 2019 but locked till March 2020 📉
Ye, to prevent dumping, they lock up the rewards this way - but let them be used to mint synthetic assets. And after all, I am not even talking about the oracle problem.
--------
They are trying to give SNX intrinsic value ok boomer when it does not have one - but as we have seen with bigcaps, which have even less value if the meme goes on - SNX will become one and could get that muh intrinsic value. Apart from LINK-XRP identical shilling armies across discord, twitter, and telegram - the approach was novel and quite cool. Now I would use UMA for synthetic assets instead - more trustless and actual collateral the market can trust.
Congrats to those who enjoyed the ride up! Don't intend this as FUD, but a few things looked suspicious to me.
Synthetix aka Havven - a successful pivot into the product-market fit or just a narrative PnD.
Who is that SNX beast sitting at 200 million on CMC and almost 100x from the bottom? From 2M to 200M, damn! It's rebranded Havven which raised 30M at the beginning of 2018. Coming from a stablecoin market - the company made a pivot which resulted in booming growth in 2019. So what do they do?
Synthethic assets. You can lock up the collateral and issue a synthetic asset. You won't be able to issue a CyberTruck on-chain, but you can get exposure to Tesla stock without owning it. This includes iXTZ, iETH, iBTC, and so on. After all, you are doing it as a money-making game, not to actually have ownership of it. You can read more here: https://docs.ethhub.io/built-on-ethereum/open-finance/synthetix/. It's like MakerDao: you lock up ETH and now other assets with the arrival of MCD and issue Dai.
Lobster, are you shilling us a shitcoin? Ha! First of all, clap to founders for taking a better turn - if you measure success in USD and CMC, then you can say they did it / are doing it. However, Bitconnect was also going up. And it wouldn't be Blockchain Lobsters if there was not some unconventional scrutiny and fucking. Let's dive it.
1. Only SNX as collateral 🤢
The choice of collateral is very important, because you need something very liquid, moderately stable, and widely accepted. Now imagine I were to go back in time and as a bank issue dollars not by backing it with gold something that is widely trusted with no exceptions - but with the apples in my garden. A pretty messed up thing to do, right? Well, if you own the market, you can dictate what is worthy and what is not. In this market, only SNX can be used as collateral. And why is it bad?
PS update: this issue was brought up by XNS community, some ideas can be found here: https://github.com/Synthetixio/synthetix/issues/232
2. 750% collateralization ratio & no liquidation 😨
Imagine you want to issue Dai 1:1 USD and lock up ETH. If ETH goes down, you get liquidated and that ETH is used to support Dai price 1:1 USD. Now take a low liquidity coin and try to use it as collateral - you end up with moonlambo as you see on the charts. But it should be the other way around as well then? Well, no. SNX does not yet have liquidation. Meaning the system can be very much under-collateralized if the token goes down.
So how do they try to solve the incentives? You get to mint rewards if f you maintain more than 750% collateralization ratio. Holders are incentivized to mint more sUSD or other assets just to stay above 750% or buy up more. And if they are under 750%... they just can't touch their collateral. Or they just go leverage by buying more SNX. Have to say, the sUSD / ETH Uniswap pool is quite nice though 1200 real ETH, and if you bought SNX lower'ish, you would have made a fuuuuuuc load of money. Just on that synthetic side.
3. SNX Inflation goes from March 2019 but locked till March 2020 📉
Ye, to prevent dumping, they lock up the rewards this way - but let them be used to mint synthetic assets. And after all, I am not even talking about the oracle problem.
--------
They are trying to give SNX intrinsic value ok boomer when it does not have one - but as we have seen with bigcaps, which have even less value if the meme goes on - SNX will become one and could get that muh intrinsic value. Apart from LINK-XRP identical shilling armies across discord, twitter, and telegram - the approach was novel and quite cool. Now I would use UMA for synthetic assets instead - more trustless and actual collateral the market can trust.
Congrats to those who enjoyed the ride up! Don't intend this as FUD, but a few things looked suspicious to me.