📺 ROLLUP: China Crypto Ban | NFTs & Bitcoin on Twitter | Compound Bug | Virgil Griffith

hey bankless nation it is the fifth week and last week of september and you know what time it is david tell them it is roll up time to time to roll up the entire week of crypto which like i always say is an ambitious endeavor in this industry uh an insane amount of things happen every single day and we are going to roll up the last week of september here on this friday bankless weekly roll up ready ryan yep i'm ready enjoy this with your cup of coffee guys and david it looks like you've had a few cups of coffee looking good man you're back in your place right off the road

yeah in stark contrast to a very very tired hotel room weekly roll up i'm back in san diego with my setup uh with my coffee in the morning uh multiple cups of coffee today so yeah it's gonna be a fun weekly roll up this week all right guys we have so much to cover i think we're gonna hit the china band they banned uh crypto for the 500th time but this time maybe they mean it we're going to get into that we're also going to touch on nfts on twitter is this the new blue check mark we got to talk about virgil griffith as well guys so this is going to be a jam-packed roll-up for you a bunch of cool things

mixed in with uh some unfortunate things and the china the china band actually has some silver linings which we're about to get into into the market section the virgil griffith story no silver linings there so you're gonna hear some frustration coming out of me and ryan later in the show but i think that the coolest thing is twitter led by jack dorsey who only talks about bitcoin is uh did did two things like you said one was integrate nfts on on their platform so you can get your verified mnft and you can also tip with

bitcoin now with twitter so they're doing two things one's ethereum focus one's bitcoin focused uh i wonder which one the market will like more in the future we will see i i can't wait to talk about that some more so we're gonna get into those items um one a few announcements we need to share with you so if today you're listening to this it is friday october 1st then that means discounts have just launched for permissionless so permissionless is a defy conference we

are putting this on with our friends at blockworks i think it's going to be the biggest d5 party of 2022 and you guys need to be there this is going to be in uh florida where we headed david um west palm beach palm beach almost forgot and so what they're doing with the ticket rollout is they're rolling out 250 at a time so every two weeks 250 new tickets get issued up they get snapped up quickly if you are a bankless premium member you can get the tickets at 30 off every

two weeks tickets increase in price i think it's 300 and something but if you're a bankless premium you get 95 off this week so if you're interested in coming with us partying in florida then uh check this out in the show notes and jump on permissionless train as the resident conference goer here it's no surprise that ryan forgot where we were going but uh yeah ryan is actually going to be there too as well be there by ipad or am i actually attending in person we haven't discussed this yet i mean we you don't live too

far away from west palm beach yeah i'm going to be there in person guys definitely um it's been a ton of fun organizing this event with the blockbuster team they uh definitely understand that crypto conferences aren't just about the conferences and more about how it's a cultural festival so if you've never been to a crypto conference before don't think of it like a boring conference think of it something much more closer to a literally a festival of the arts a festival of culture there's there's going to be the actual conference with

with actual like good content and talks but then after the fact it's going to be just a bunch of good vibes so looking forward to that banquet gonna throw a party question mark i have to convince ryan of this i haven't talked about it to him yet but you sent it to me in discord i was definitely down i haven't commented on that but guys we are throwing a party absolutely there um also nft gallery they're gonna have like tons of cultural things too so make sure you check this out one last thing on this is uh we're working a little bit with the the sponsor team and there's been a ton of interest from prospective

sponsors but we want some defy sponsors to partake in sponsorship so if you are interested in being a defy sponsor we've got a lot on the list we want the premium we want the cream of the crop d5 sponsors to show their force at this conference then uh ping one of us i don't know dm us or something and we'll get you in touch with the right people we have we are just holding the floodgates of the dam of centralized companies who are all are chomping at the bit right but like d5 companies generally a don't have the opportunity

or don't like think about this as like uh as a as a place to like get their branding out because like generally d5 companies have their own community to help support their branding but like let me tell you if the d5 companies don't take it the c5 companies absolutely will so we're holding we're holding the doors closed on the c5 companies we're making room we're making room so come talk uh also this is like an offer that i think you have maybe three more days before if you're listening to this if you become a bankless premium member by sunday in the next three days you get

a bankless t-shirt this is the bankless essential t-shirt it's the one i'm wearing right now the one dave and i uh are displayed in in many of our shows all you have to do i think the value in this is like 28 all you have to do is sign up for bankless premium you can see the benefits we'll include a link in the show notes but that's a full market opportunity report every monday you get to hang out with the crew in the inner circle discord chat podcast debriefs you're not catching all of the podcasts right unless you are bankless premium david and i do extra podcasts after the

show and release that on a bankless premium feed alpha alpha leak emails you would have noted about dydx in advance if you got these emails also a 30 discount to the conference we were just talking about and an nft badge all of that is included in bankless premium the newsletter is designed to pay for itself so don't get left behind all you need is one alpha leak and it's like a 10x return uh i tell ya uh we'll get to one of those alpha leaks later but lastly we got to talk about zirion david

so zerion uh wants us to get the word out to you they are doubling down on nfts tripling down on nfts i think we are looking you probably use xerion for your like your d5 user interface to do like for me xerion is like a go-to tool i can't be without it but right now i'm displaying on screen one of david's addresses and i'm seeing a lot of nfts in this address yeah and these are your nfts right please ignore the fidenza rocks which are 100 scams that i thought that like

uh well like i thought it was going to be like these yet i i i need to send them away from my portfolio so please ignore the fidenza rocks they are scams do not buy them um i got i got rugged uh but here are my flowers look at my flowers right wait you just you just scrolled right by my fantastic flower dude the portfolio gets better as you go along right so we're looking at flowers here are my flowers uh the black and white ones are the rare ones fun fact um but i really like that rose one in the middle here uh and then if you keep on scrolling uh then uh also ignore those

those are bad and you also get rid of those generated mass and cyber kongs uh the london eip1559 gift my pudgy penguins which are super cute super cute penguins they both look rare and then of course finishing off is the crypto punk one one one eight also you can see it right behind me uh yes xerion doing a really good job making an nft portfolio interface alongside your d5 portfolio sir no no no turtles in this portfolio yet what are you doing man you sleeping on turtles still tiny turtles i'm absolutely sleeping on turtles as soon

as i see a twitter uh turtle in my twitter feed i put it away you you mute you block i mute the turtles you know what's awesome about this too is i haven't used this yet um but you can actually configure this interface to display a an nft through xerion on your apple watch too so something else to check another way to flex when you're off your screen where you're just out in public it becomes like your nft rolex just like that with um the new features

nft features that xeron is adding so if you're interested in checking that out we'll include a link in the show notes uh thanks to xerion for sponsoring this message yeah cheers all right see how i get stoked that's awesome i love that the potential rocks are not are not awesome you are proud of them all right guys we're going to get to the markets next david you want to start with bitcoin markets bitcoin starting the week at roughly 44 000 got up to the high price of 45 000 and then it has

fallen after that down hit the lows of roughly 40 what 41 000 a number of times throughout the week and then it has reclaimed 43 200 at the time of recording generally flat um down one percent on the week um unexciting it's a good day when you eat it when bitcoin is above uh 40k that's what that that's what i say yeah every 10k right yeah every 10k absolutely how about ethan how's he doing starting the week at roughly uh what was it three thousand

dollars uh got smacked pretty hard fell all the way down to two thousand seven hundred and fifty dollars where we did see some uh liquidations reclaimed three thousand one hundred and fifty dollars twice inside of the week and then also fell again twice inside of the week down to four twenty eight thousand dollars where we and we are now almost trying to get our heads right above three thousand dollars at the time of recording so some volatility this week between 2750 and three thousand one hundred a lot of volatility a lot of volatility yeah this is pretty crazy we're back to the chop

are we back to the the the crab season once again i thought we were almost out of that at the end of the summer september was looking promising now it's let me down in the second half what's going on david well we have we have a bunch of fud right so we have like this the um the regulatory fund that scared a lot of people we also had china banning crypto which apparently the market is actually reacting to this time which is like a first since 2017. uh and then there was this whole like treasury debacle insider trading like in uh insecurity in the in the legacy markets the traditional markets got

hammered this week uh the the first day that that legacy markets got hammered crypto fell right in in parallel with it the second day which was today i believe today or yesterday uh crypto markets have instead become resilient to that so like i think crypto markets are done being scared and they're now just kind of waiting for everything else in the world to solidify so they can like finally show some strength i think like i always think this crypto markets want to show strength there's just been like a bunch of fud in the last week or so um

so many come from coming from so many different directions and so like once we once the rest of the world can just deal with that i think we can resume bullishness that's my take yeah i still feel like david we are in like a a major bull trend right if this kind of level of flood had had happen during a bear market when everyone's pessimistic i mean crypto would have tanked and it would have stayed down for a while the fact that we're even kind of seeing this volatility and rebounding right it still indicates to me we're in this secular bull market yeah we are not hitting new lows we are getting fun and we are not

hitting new lows yeah i i do think that the fourth quarter's uh you know generally it's been good for crypto particularly in bull years so we'll see how this fourth quarter pans out but um it still could be good for crypto uh we'll uh we'll keep you updated every friday as we do all right let's talk about this updates on the eth to bitcoin ratio what's going on here uh nothing too much i believe last week it was at point zero seven something something and right now we're at point zero six nine uh so flat on the week for ebtc

there's rumors of like a bitcoin etf in october you know remember rao paul said that and bitcoin has shown some resilience some strength i wonder if it's kind of feeding on that rumor i wonder if we'll actually see something i've been waiting for like a a kind of a maya copa from um gensler to just be like here's an olive branch crypto your etf i hate you in all of these other ways but i'm going to give you this etf uh maybe that's gonna happen in october that could shed some light or that that could um give some life to bitcoin but uh we'll

have to see absolutely the two faces of gary gensler the nice face we haven't seen yet so maybe maybe that come on gary help us out here all right d5 pulse uh this is lower than i've seen for a while so we're at 68 billion total locked value i think it's because crypto's gotten sort of pummeled in the last quarter you know i actually think that that might be a bug on d5 pulse because if you look at the chart like that chart is definitely above 80 billion dollars it is uh so there's a little bit of a discrepancy there

sometimes the d5 pulse.com front end does experience some bugs just because like there's so many different ways to count what's the real number it's 81 billion then it looks like on the graph yeah well that's the higher one so we'll go on that one as the source of truth 81 billion locked in defense when in doubt skew bullish folks crypto's in a 10-year secular bull market giving away all of our bankless secrets let's look at eth locked in d5 though that's where i think this chart gets interesting i'll focus on the chart we're at 7.8 million eath locked in

which is an all-time high this is an all-time high well i think that's true let me pretty sure that's true let's scan out yeah no close close super close yeah count it tied all-time high since april right yeah uh and really close to the all-time high ever uh so that's a good sign and i think it it's nice for eth to become more reliant on this this much more trustless piece of collateral rather than all of kind of the staple coins that we've seen going around the ecosystem so okay how

about d5 pulse index where are we at with d5 tokens themselves yeah the d5 pulse index start of the week at roughly can you go to the one week chart start of the week at 327 hit the high of the week at 348 and the low was 275. again you're seeing a lot of that volatility in in the dpi token ending the week at 304 overall down six percent on the week all right now we're going to take a look at this chart which is the ratio of dpi

to eve it's not d5 season yet david no it's flat last week it was at point one this week it's at point one so we are flat on the week uh with some inter week volatility as well but um you sound sad about that are you sad about that you want d5 seasons come back i do want d5 season it's it's it's always so much fun um but like nfts just don't stop being bullish and so like all the attention keeps on going there yeah we should start putting some nfd and indices on this like i don't know

the best one there we need some um we need some uh d5 nft infrastructure to come out people need to start using fractional more so we can stop talking about the floor price because the floor is just such a terrible metric to actually measure the value of these things um yeah it dude if there's a bankless listener out there who has a good idea for a consistent metric we could use so talk about the value of nft markets over time let us know we've seen some indices but nothing that has kind of the the mind share of of something that we would need to to report on this like prestigious high journalist integrity media outlet

which bankless is wait i can't tell if you're being facetious or not oh no that was 100 serious let's talk about the bet index that is our favorite index in crypto compose 30 bitcoin percent e thirty percent dpi itself what are we looking at on the week yeah down four percent on the week start of the week at 136 hit the high of 143 hit also a low of 115 ended the week at roughly hundred and thirty-four dollars

there you go you know david i think it's time we uh check in on our friend eip1559 i mean it's been great guys two months now yeah great guy doing great things just like busy burning you know every day eath is burnt is a day that i am bullish sir uh but let's look below the surface that's the title of this article itself and what does eip1559 look like below the surface has it accomplished its goals yeah so the author who is named t does a fantastic write-up uh just kind of

trying to parse apart the data of eip1559 and the cool thing about eip-1559 is that like the data that comes out for it is like not known how significant that data is what it really means eip1559 is emergent as in the properties and behaviors and data that arrive out of eip1559 there is no canonical like uh definition of what these things mean uh and so this is actually one of the best no history there's no this hasn't been done there's no history like not only has it never been done in crypto

but like blockchains and eip like everything is new everything is new uh and so there's a lot of data here and t gives his interpretation and analysis but he definitely qualifies it saying like hey this is just my take and like it's we're gonna need to have more data to see what these things mean uh there's a ton of fantastic graphs and and some analysis which with each one so if you want to just learn more about how eip1559 is impacting ethereum and ether uh definitely check this out it's a great homework assignment for people who

are trying to dive deeper to the code of ethereum in the the the eth markets uh and um they're just some great analyses what what is this take here david like what's the uh the summary of it is eip 1559 working as designed or no yeah it's absolutely working as designed what he was trying to indicate is like well okay it's working as as designed but like how does that actually change things right like we know we know eip159 it like it makes it easier to transact uh it burns eth but

what does that actually do like so like what does it do to daily minor cell pressure for example there's one exactly in here right and like how does it actually impact the eath price at all right and his his take if i remember correctly is like in the short term it actually doesn't impact the eath price at all because the ether that's being burnt is like the literally the most elastic portion of the east supply it's the most flexible that actually doesn't impact the price but what it does do in the future is that it will prevent um

price drops in the future right so really it's like and this is actually set a floor it's help helping set a floor right and so in the in the future especially in the long term future this is like and this is actually what i said in my original eip1559 article is that it's paying like eip1559 when it burns eth it's like ethereum putting security in a rainy rainy day fund right like when it when there does come a time of high stress environments that reduction in cell pressure

because we've been burning it for the past one to five ten years there's just simply less heat available to sell and so one of one of his takeaways which again is up for interpretation is that during future like um volatility events the downside should be dampened as a function of how much total eath was burned yeah that's why i say full circle it goes back every day that eath is burned is a day that i am bullish and that's long term bullish i can't tell you what's going to happen in the short run but long term this is a secular trend i

mean we passed a billion dollars worth of eath burnt right over three hundred thousand uh today we actually passed four hundred thousand four hundred 000 today right and so like th this um this pressure is just going to keep compounding on ethereum then you get the merge everything bankless listeners know so we don't have to belabor that point but bullish i'm glad someone has done uh some deep diving on eip 1559. david let's also talk about dydx that was a story with some numbers in the market section we love to talk

about numbers this is antonio antoni is the founder of dydx he's going to actually be coming on the podcast on association on tuesday right so he says five years i left coinbase i remember when he tweeted that he left coinbase he eventually founded dydx today dydx is doing more trade volume than coinbase what is the moment of reflection five years it takes that's what it takes five years for a d5 protocol to get built and then do more volume than the company

that originally hired the guy like wow that's crazy congratulations antonio yeah it's it's uh it's huge antonio so like uh looking forward to talking to you soon and um this is the market share this is a graph of the market share of dydx they're up to 27 percent market share of uh and this includes some of the you know sillier dexes like pancake swap and that sort of thing too so actually even higher than that probably in terms of real dex volume totally

really and like the other cool thing is like this is the second decentralized exchange app to pass coinbase in volume units while being the first uh i'm pretty sure coinbase actually i mean over time has done more volume and like sustains itself as the leader over time yeah like hey like breaking it over a 24 hour period or even a seven day period which uniswap has done is just the first step yeah well dydx is doing a lot of things right right so like uh perpetuals is a fantastic product everybody loves that um they were they were one of the first

to roll out on layer two so under the hood this is all um zk roll up technology right uh and also i think what's giving them steroids some extra juice is um kind of their token roll out the token launch which they're using for liquidity mining but you have an alternate theory as well as to why it's gained so much traction recently tell us about that david uh i think these theories are definitely paired like everyone likes tokens and when tokens exist they they attract a lot of attention towards the app but also at

the same time we have china banning crypto and apparently it's real this time and the reason why we know it's real is because we can see chinese actors actually making decisions to exchanges exchanges like outflows you can actually see this in the blockchain right which is like the ultimate source of truth and that is the clear differentiator between this china ban and the infinity other china bans that we've seen and so there's speculation that all of this demand out of all these chinese exchanges to trade and speculate and do

exchange things has gone from these chinese exchanges to duidx to a trustless defy exchange which operates on a similar performance level because of the layer 2 as the exchanges that they are fleeing from and so i think the big takeaway here is that when a nation state like china comes and bans crypto where do they go they don't go to another alternative like more western centralized exchange they go to d5 right because they just got quote unquote

censored and so they're not going to go on to another sensorable platform they're going to go on to a defy platform and so there's an article here out of cointelegraph that says the dydx token gains 80 in a week what's driving the dex token rally and their their subline is traders raise their bids for the decentralized exchange token believing as it would benefit from china's decision to classify all crypto transactions as illegal and so there's speculation that people are moving on to dydx in order to escape china which just makes sense like go on to the censorship resistance platform after you get

censored by your nation state that's what they're for well yeah there's there's sort of a crypto narrative for you it's like china ban equals bullish for defy spanish that could be what's happening uh love that man love that i i think that could be what's happening um david let's also explore another trend that's happening this is uh the trend to total locked value in the multi-chain as people say so this is interesting this is a plot of market cap of ethereum and

a number of other chains and obviously we've seen sort of a alternate layer two kind of uh resurgence with um you know i guess binance earlier in the year and then solana and um avalanche more recently starting to really increase in market cap and this is interesting when you look at a market share perspective but i think it's actually more interesting to look at from a total locked value perspective right so um ethereum dominance has

dropped from 84 of total lock to value to 77 so it's down you know i guess um seven percent right and then binance has gone down a little bit solana's gone up from about one percent to four to five percent tara has gone up a little bit avalanche has gone from basically nothing to two percent phantom as well i i want to get your take on like what do you make of this well is total locked value is it moving into these other

ecosystems and is that um to the detriment of ethereum what does that mean for the space uh is that bullish alternative layer ones what do you think yeah so the the take here and i've been we've been saying this for forever now is like during bull markets ethereum's capacity gets uh consumed and there's overflowing demand that ethereum cannot satisfy because it has not done like layer one sharding and the the l2 ecosystem is about as nascent as the alternative l1 ecosystem so uh when

there's overflow for ethereum main chain demand when gas fees like you know exceed 100 of transfer people need to go elsewhere so some go to layer twos some go to other l1s and so what we're seeing here is that like the crypto industry has done a fantastic job bringing new people in and they a lot of new people don't want to or simply can't transact on the ethereum l1 so they go elsewhere the interesting story here to me is the lack of consensus as to where else to go right so um binance smartchain was like the first uh app the first like other

alternative l1 to like absorb some of ethereum's overflow but we've seen that actually go down this week while solana terra avalanche and phantom have all gone up there doesn't seem to be a clear consensus as like oh ethereum is full here's where we go next everyone's just going everywhere right and antiprosynthesis one of like he's probably the only person that will actually accept the ethmaxy label willingly has tweeted out this this one tweet which i really really like is like you know what if you ask like what what if

uh what alternative l1 is going to kill ethereum you'll get 10 000 different answers because like there actually isn't like a like a viable like the next uh second place to ethereum right there's just like five third places and that's why you don't see any of the overflowed with here i'm going into one specific blockchain they're all kind of getting spread out i remember um when raul paul came on the podcast and he mentioned briefly about like ethereum dominance going down from from its highs right in terms of total locked value he's like yeah it'll

probably like decrease from 85 percent to like 75 maybe 70 but that's still a lot right especially when everything is 10xing right yeah it's basically sort of a you know a prediction of power law winners in the space which um you know i tend to kind of agree with but i have another take on this too which is like i think actually david total locked value can be a flawed metric in in some ways and made this point in an article that um i wrote

in uh 2020 on bankless talking about trustless economic bandwidth versus like economic bandwidth that is more trusted and what i meant by that is like um it is more valuable from a bankless and decentralized decentralization perspective right to have um capital on chain which i call economic bandwidth so value on chain that doesn't have any outside trust dependencies right so which is the whole point of this whole point right so like

if you're looking at usdc versus dye right die is better it's more trustless because it has less trust guarantees and it has less usdc inside of it it's backed by other things like eth for example and if you look at another asset on chain like rye which is fully backed by eth that is you know less trusted still and if you look at eth in and of itself right that is the most trustless asset uh on ethereum right and so what we miss when we look at just pure

each uh total locked value total value locked is we missed whether this is like actual trustless value or whether it's just some kind of a you know a stable coin we also miss the settlement guarantees of the chain right so like if we wanted to look at this and put another i guess column here we could look at the coinbase side chain right what's coinbase it's a ledger it's a side chain it has one validator and that is like the coinbase database organization

but it has like shareholders right it has dow participants anyone who owns coin shares i guess has governance vote over it right so why not include them from a total locked value percent well we don't because we don't call that d5 but there is this scale right ethereum is the most decentralized um you know d5 platform coinbase is not decentralized at all and some of these chains are like somewhat in the middle and i think a lot of this looks starts to look a bit more like um like like a

phantom for example or a terra for example or even a polygon and sidechain example looks a bit more like fintech and a bit less like permissionless trustless defy that's why i think total locked value can be misleading were we talking about trusted total locked value are we talking about purely trustless total locked value that the trust list is the stuff that i care about and the the stuff that is i think the most sustainable and you know fits the protocol sync thesis of being like the

most permanent and foundational for this whole operation that explain that does that make sense 100 100 and if listeners want to dive more into this i highly recommend reading the article from nick carter called it's the settlement insurance is stupid uh and then or if you want to consume something out of bank list there is um a talk i gave at ethereal called um settlement insurances and the protocol sync thesis and it describes this spectrum of just like not all when you make a transaction on a