Doga’s father sends his regards

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Welcome back to Chain reaction.

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Last week we covered a crossover episode for investing in memes. This week we’re talking about Musk dumping tokens while holding others.

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dumping favor

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Weekly Newsletter from TechCrunch Crypto Editor’s Desk Lucas Matney:

Elon Musk shared that Tesla sold some Bitcoin this week. Well, to be honest, they sold a lot of bitcoins… tens of thousands of coins.

And while Tesla’s announcement last year that they were buying bitcoin pushed Luna’s prices up, Wednesday’s disclosure that they sold 75% of their bitcoin holdings in the second quarter didn’t have a significant impact on the crypto market, which this week was in tears with BTC prices. the pumping and growth of Ethereum is even higher (although still much lower prices than a couple of months ago).

After all, Tesla was one of the largest corporate holders of bitcoin, and Elon Musk was, at least for a while, the top billionaire spinning the currency. Its shares in crypto circles appear to be falling, crypto Twitter was generally upset by the announcement, with some noting that crypto holders should join those shorting the electric car maker’s stock.

Inside this disclosure of the company getting rid of nearly $1 billion worth of bitcoin was Musk’s small admission that Tesla held Dogecoin and didn’t sell any of it. It is not clear from this statement how much Dogecoin actually belongs to Tesla. Musk tweeted that he owns it, and Tesla has been accepting Dogecoin payments for goods on their site for months, but they haven’t disclosed any cryptocurrency purchases.

I tried count on napkins on how much Dogecoin a company might have this week:

The company said it currently owns $218 million worth of digital assets after a $963 million bitcoin sale. Most of that $218 million is likely to come from the remaining bitcoins.

Tesla reportedly had about 42,000 bitcoins in the second quarter, so after selling 75% of it, it should have had about 10,500 bitcoins at the end of the quarter. Now, in order to determine exactly how much of this total holding belongs to bitcoins, we need to know exactly when the picture was taken. Presumably this was done sometime on the last day of June when the second fiscal quarter ended, so 1 bitcoin traded between $18,750 and $20,300 during the day, which at 10,500 coins would mean between $197 and $213 million. dollars of his total “digital assets”. ” will be in bitcoins.

Ultimately, Musk’s claim that Tesla is holding onto his Dogecoin probably had more to do with keeping that Twitter community in favor than anything else, especially at a time when his Twitter deals have lowered him somewhat. popularity among retail investors.

last pod

Chain Reaction summed up a lot of the negative news over the past month as token prices plummeted and web3 companies suffered as a result. The pain is far from over, but the price of the cryptocurrency has risen significantly in the past week, with ETH up 45% from the previous week. Lucas and Anita talked about what could have triggered the outburst, though they also had to discuss the much more troubling news about layoffs at OpenSea.

Last week, both co-hosts have been hard at work on two separate feature articles regarding current crypto news, so they unpacked the ones on the show. Anita talked about her piece about increasing competition between crypto exchanges for the US market (and which is likely to win), and Lucas shared his thoughts in the highly publicized video game with Yuga Labs’s Otherside metaverse as one of the first players.

Subscribe to Chain Reaction at Apple, Spotify or your alternative podcast platform to keep up with us every week.

keep track of money

Where is startup money moving in the crypto world:

  1. Launch of cryptographic development tools Sunscreen raised $4.65 million in seed funding led by Polychain.
  2. Optican AI-based NFT authenticator raised $11 million in a seed round led by Kleiner Perkins and Pantera.
  3. Zebedee raised $35 million in a Series B round led by Kingsway Capital to develop Bitcoin-based gaming payments.
  4. Blockchain startup cybersecurity Halborn raised $90 million Series A led by Summit Partners.
  5. Studios without cages raised $24 million from investors including Griffin Gaming Partners and 6th Man Ventures to create crypto games.
  6. NFT Brand Loyalty Platform Hang received $16 million in new Series A funding led by cryptocurrency venture capital firm Paradigm.
  7. Peer wallet messaging app lines raised a $4 million seed round from investors including Elad Gil and Scalar Capital.
  8. Crypto Treasury Company meow closed Series A with $22 million in prize money led by Tiger Global.
  9. Data Infrastructure Provider empirical network raised $7 million for its seed round from investors including Variant and Alameda Research.
  10. Web3 Security Auditor Safe3 raised a $5 million seed round led by Mirana Ventures.

week in web3

Weekly window in web3 reporter’s thought Anita Ramaswami:

Lately, I’ve heard people in crypto say several times that a bear market will separate the good companies from the bad ones. Former SEC Chairman Jay Clayton put it more bluntly at the Bloomberg crypto summit on Tuesday. saying that regulators should make responding to the “garbage” happening in web3 their top priority.

Clayton referenced the 2017 ICO boom when describing the aforementioned rubbish, a time when all sorts of rampant scams and securities scams were unfolding in crypto. I couldn’t help but wonder… has the cryptocurrency made any significant progress since then in improving its reputation as a safe haven for intruders?

For US lawmakers, the answer seems to be “yes,” perhaps because they hate to stifle what is proven to be a substantially large industry with millions (or billions in a strong market) of dollars in turnover. Therefore, despite their slowness, they finally come to their senses. In particular, US Senators Cynthia Lummis and Kirsten Gillibrand last month proposed a bipartisan cryptocurrency bill that was on everyone’s lips. The couple appeared at the Bloomberg summit to share updates on the status of the bill since it was introduced. Gillibrand shared that while some provisions appear to be passed, all legislation is likely to be delayed until next year.

However, two of the bill’s provisions, Gillibrand predicts, could reach consensus much sooner than the rest. The first is a set of rules for banks wishing to issue stablecoins – understandably of particular concern to lawmakers in the aftermath of the Terra fiasco. The second is part of a bill that would make the CFTC the key regulator overseeing cryptocurrencies, which she says is currently being finalized by the committee. Congress will be able to vote on this provision before the end of the year, she said.

While US lawmakers and regulators are likely to always be slow to crack down on cryptocurrencies because they don’t want to be seen as stifling innovation, the new bill appears to be moving forward faster than many expected. It’s not exactly a sudden shift from 0 to 100, but it’s possible that the US is on the cusp of a faster and more furious regulatory response than most on the web3 could have imagined just a few months ago when the markets were in a better position.

TC+ analysis

Here are some of this week’s cryptanalysis available on our TC+ subscription service from a senior reporter. Jacqueline Melinek:

Former SEC Chairman Clayton Says Regulators Should Deal With Crypto Trash First
As the crypto industry continues to grow, regulators around the world are looking for operational and legal frameworks that can guide their actions to better monitor the industry. While there are “a huge number of responsible players” in the industry, there are also irresponsible ones, former U.S. Securities and Exchange Commission chairman Jay Clayton said during the Bloomberg Crypto Summit on Tuesday. “And regulators need to respond to garbage first. It’s work.”

According to the co-founder of Rarible, NFTs have the potential to become media companies.
As NFTs work to keep everyone’s attention, one of the founders predicts that the digital asset sector will move in a new direction. “I think the NFT collections will evolve as media companies evolve. [into something] like Disney,” Alex Salnikov, co-founder and head of product at NFT Rarible, told TechCrunch. In recent months, big blue-chip NFT projects such as Bored Ape Yacht Club (BAYC) and Doodles have pushed their collections beyond images to other sectors, which could be the beginning of NFT’s expansion into the mainstream, Salnikov said. said.

Some VCs are doubling down on crypto despite unknown recovery timeline
Cryptocurrency markets may be red everywhere, but that doesn’t stop many venture capitalists from investing in this space. People who have briefly entered the crypto market — aka tourists — are “already on their way home,” joked Craig Burel, a partner at TechCrunch, a cryptocurrency specialist Reciprocal Ventures. But a number of venture capital firms see the space as a huge opportunity, even if there is no tangible traction for several years.

MetaMask Co-Founder Sees Developer-led Future of His Crypto Wallet
MetaMask was founded six years ago and today it is the largest non-custodial crypto wallet. But that wasn’t always the plan, co-founder Dan Finley told TechCrunch. “We thought it would be a quick start and end. Aaron thought we’d be working on this for a few weeks; I thought it would be several months. It quickly became clear that this was not the case. The team is now testing a hands-off approach to be “less opinionated” and not disturb users.

Thanks for reading, and again, you can get this newsletter in your inbox every week by subscribing to TechCrunch newsletter page.

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