📺 ROLLUP: Microsoft Buys Activision | OlympusDAO Has Fallen | LooksRare NFT | IreneDAO

uh symphy is becoming a thing i know you're gonna educate me and tell me what a symph actually is and if i am not no i don't know david hey bangles nation happy third week of january david what time is it oh it's the friday bankless weekly rollup ryan where we roll up the entire week in crypto which is always an ambitious endeavor yet nonetheless we persist onwards through uh the gamut the the dark force that is crypto uh unpacking it and distilling it and summarizing a full entire week in

crypto every single friday morning so grab your coffee because we're going to get after it starting right now on the journey west on the road to mount doom throwing the ring of fire away oh god what are you doing guys topics this week facebook and instagram adding nfts we thought they'd do it every social media platform joining the nft army microsoft buying activision blizzard for 69 billion dollars i don't know if that's a number david or okay olympus has fallen the story of olympus dow and ohm price

crash we're going to dig into that also usdc finally flippant tether we've been predicting that for like two or three years it's finally happening so it's good to see uh symphy is becoming a thing okay so i'm gonna talk about the story of irene dao that happened last weekend i was barely paying attention but i know you're gonna educate me and tell me what a simp actually is and if i am not no i don't know david you don't know what a symphony is i kind of do i i notice that this okay but i still want to hear you tell me what it is you're saying that guys uh this is gonna be a lot of fun

hope you're hanging with us before we get into the markets we should talk about iras okay specifically alto ira uh my big question is do you have a crypto ira do you alright this is like this is a crypto dad question do you david you should uh i've i've had one of these ever since i got into crypto i know you need to get one right now this is like one okay this is my message this is my pitch for david it's not for anyone else listening to bankless we're doing um first of all it's super easy okay but

but here's why i love ira's 401ks it's because it's the only way to do crypto with none of the taxes okay so every time you make a trade you have to if there's a cop capital gains tax or let's say you start staking all right like the income you received you pay taxes as income on that inside of a crypto ira you don't have to pay taxes all right david now the the flip side is you can't touch the money without a penalty until you're older but like you could just set

aside six thousand dollars in something called a roth ira this year it's all in crypto you can set it up in like a few minutes this also ira solution is kind of an easy button for that so it's already integrated with coinbase you have a coinbase account as easy as that and you never have to pay taxes on the thing wait you have to pay taxes on crypto sir yes okay now i'm getting worried about you in your regular accounts you do uh also this is kind of the the advanced button here but if you have a 401k for from the

previous employer you know that that's been collecting you've had it in stocks for a while you can convert that roll that over into an ira 401k type format with with alto as well so you want to go all in crypto with your retirements accounts um you know you're skewing younger you're gonna use this money for a while you're gonna buy and hold this is the way to do it and also ira has the easy button they're integrated with coinbase 125 different assets so the things that are trading on coinbase are the things you can invest in with this um only ten wait

is it minimums of ten dollars with alto ira as well so you can get started small so did i convince you yeah yeah well i've been convinced by your presence uh a while ago but for for when i got into crypto i started with mining uh i did not know that you had to pay taxes in crypto that is a true thing in 2017 and 2018 i just did not know that uh and uh so for those of you who are not paying attention to our taxes let me tell you you want to get started on that basically as soon as possible just think

of yourself as an employee of your future self and do your future self your future boss itself a favor and man get your taxes in order now because if you don't it just it gets it just gets worse it just gets worse it does yeah well david may be speaking from experience there but you're all taken care of now right you figured it out in this account though you don't have to worry about any of that and that's a reason to open it up while you're thinking about your taxes so go to alto ira.com bankless you can find out more about that okay david let's talk about the charts market time bitcoin what do

we add in the week uh happy day today flat week on the week we started the week at forty four thousand dollars hit a low of forty one and a half thousand dollars and we have uh since uh starting to this recording today on thursday we have climbed up to back above forty three thousand dollars but still just down one percent on the week so a very marginally down week after a big oof week last week let's look at the one month okay we're still down obviously in that month isn't gonna look good either ryan keep on zooming out

year-to-date also bad yeah you're gonna take it back one year wow well wait yeah that's because your date is january i forgot about that um i can't believe this so so uh on the on the one year time year time horizon bitcoin kind of looks like a crab doesn't it it was a big crab year it's slightly up slightly up though started it started the year one year time frame started at 35 000 and we are currently at 43 000 kind of disappointing bitcoin though um that's interesting let's talk about eth now what's ethan the week first yeah ether down on the week down three

percent on the week a little bit more down than bitcoin start of the week at thirty four thousand uh three hundred and three thousand four hundred dollars excuse me uh hit a low of like roughly three thousand fifty ish dollars uh and it has since resurged back up to three thousand two hundred and twenty dollars uh down three percent let's do the same thing one month oh down we'll skip that but the one year oh looking good look really really good yeah so like roughly one thousand two hundred dollars one year ago and uh

currently at three thousand two hundred dollars just yeah just since november just bad bad feels bad feels okay what's interesting about this cycle is it's not playing out like previous cycles is it it's a little bit different this is its own thing i i think in crypto we've been trained to expect like yeah four year cycles and sort of let's we're doing the same thing if 2017 2018 but this is playing out much differently how do you think it plays out overall what do you think the one that can the way that everyone is confused and we keep on talking about

it every single week the maximum confusion is how it plays out um it's just unpredictable unpredictable yeah but no more four-year cycles uh i never really was convinced that these four-year cycles were dependent on the bitcoin habiting the bitcoiners will definitely tell you that the four years crypto cycles had to do with the bitcoin happening i kind of think that was i think there's plenty of rationale to say that that was a coincidence i think i talked about this last week um but isn't that is that isn't that just because like um you know bitcoin percentage of total market cap and crypto used to be so much higher i mean

there was a time where it was 90 95 yeah right now it's down into the 30s i even i would even claim that bitcoin going up in price had led less to do with the timing of the happenings um but i'm not gonna i'm not deep in the weeds on bitcoin on that one okay we don't know the cycles just buy and hold for the long run you have to worry about the cycles uh let's look at the eth bitcoin chart here slightly down on the week we started last week at 0.076 we are down to point zero seven five i would literally like that point zero eight number but i'm not really going to complain too much

about point zero seven five either we'll see what what happens like the big catalyst for uh ether this year is the merge right bitcoin doesn't really have any catalyst this year so i would expect this to change it doesn't i mean that's happening next happening is two years away still 2024 yes yes i think i guess that's the next big event that happens from the supply perspective all right the bet index bitcoin eth and d5 what are we looking at on the week down i think half a

percent on the week start of the week at 128 we are currently down uh to 123 dollars so down half a percent ish give or take there you go down half a percent doing the crab thing a little down on the on the year for sure uh david let's talk about this josh stark wrote a blog post with evan van ness and they write this every year i've read it every year since as far back as i can remember in ethereum and it's it's entitled the year in ethereum 2021 so this is sort of a summation of some big

things that happened on the ethereum network and i want to draw a few of these out um the first is this look at this david total transaction fees 2021 you want to read this out what are we looking at yeah in billions of dollars 9.9 billion dollars in transaction fees in 2021 out of the ethereum network um clocking in at second is bitcoin at just over 1 billion dollars so ethereum doing 10x the transactional volume uh implying

that there is 10x the demand to buy ethereum block space in throughout 2021 um followed by after bitcoin uh one bill bitcoin's 1 billion dollar fees in revenue in 2021 followed by binance smart chain clocking in at 0.9 billion dollars and then after that we have avalanche at .04 billion and solana at .026 billion and cardano at point zero zero eight billion dollars uh so yeah that's where the demand is uh that's transaction fees uh you can

look at another view of it um by 2021 where you bring in all the defy apps and it's interesting that ethereum's number one in transaction fees unit swap is actually number two it even beats out bitcoin so an app on ethereum is larger but this this was really cool to me when you start to compare this with traditional finance and you look at how many fees the revenues of visa last year which were 24 billion dollars that's the revenue of visa and ethereum was 9.9 billion okay and it finishes out

ahead of stripe which was 7.4 billion so ethereum now doing more transaction fees and revenue than than uh stripe and it's creeping up on visa as well uh another way to view this is total transaction volume okay so this is the amount of value settled on the ethereum network ethereum actually surpassed visa in 2021 so it settled 11.6 trillion dollars this is of course all of the eth that gets transferred from address to address this

is also all the stable coins all the erc 20s if you add up all of that value all the tokens everything if you add that up and compare that to visa the ethereum network is now settling more value than visa and uh that's quite astounding to me it's like can you believe that we're actually surpassing visa on that uh on that on that metric yeah that's it's a really it's a great benchmark and it's one of those benchmarks where like okay that should have that's just like normal

and like because ethereum should be like 10x because visa is just one company right there's just one payments network ethereum is a payment network of payment networks right uh and so uh like this is now where the game finally starts in my opinion like it wasn't to get to this point like this is where we go from here is really the starting pistol here what's the market cap of visa i think like last time i checked is like 400 milli 400 billion or 500 billion or something like that so comparable to uh ethereum in terms of 150 billion

450 billion what's eath hanging out around the range too right about the same about the same and uh so and then ethereum surpassing visa and also just growing uh so much faster with so much more potential and yeah that's just transactional volume which is to say nothing about ether as a bond or ether as collateral like that's just payment volume it's funny we talk about the flipping and we often mean like obviously ether flipping bitcoin but like at some level i'm more excited about stuff like this like we just flipping visa last year can we flip the

world please speaking of flipping flipping and flipping things what's this flipping usdc versus tether supply tether the king stable coin that has been around forever the first real stable coin that got real adoption finally gets flipped by usdc i feel like there was a number of predictions uh by this throughout 2019 throughout 2020 throughout 2021 to die finally took 2022 for something to dethrone tether as the leading supply of stablecoin which is to say nothing about

how massive tether is tether is also growing up in supply it's just gotten outpaced by usdc there is now over 40 billion usdc in existence and there is only just under 40 billion tether and so congratulations to circle congratulations to usdc for having that stable coin supply um we you love to see it and this is just what happens when like stable coins like asset dollar back stable coins have to play nice with nation states tether did not play nice with nation states usdc did play nice

with nation states uh so like no surprise to see all the tailwinds being captured by usdc yeah tether's always been sort of a mystery box like we're not really sure what it's backed by and usdc is is more you know traditionally regulated and you kind of need to be when you're backed by dollars in a bank account somewhere or hopefully you are um what's this metric this is from ryan watkins it's comparing uniswap versus curve what are we looking at here david yeah we're looking at like market share of stable coin volumes between uniswap versus curve and what we

are seeing is unit swap v3 really starting to eat into curves uh market share so more and more volume of stablecoin going into uh uniswap i was actually hanging out with someone last night uh who actually kind of had a critique on this chart saying that there was a significant amount of volume being missed out of this chart so this might actually not be accurate uh and like her volume missed a lot of curve curve volume just that just wasn't included i don't know what's true but i am going to find out ryan on next week's show that we're doing

called the curve wars where we're bringing a curve expert on to talk all about curve and i will verify this data with him as to whether it is accurate or not but if it is accurate then unit swap v3 really eating either way unison v3 stablecoin volume is going up up through the roof um it's just a matter of like maybe curves also doing that too um there's also a there's also a story i think about the fee market here so part of the volume rise on uniswap for stablecoins is of course the release of uniswap v3 but also two months ago it just introduced a

um one basis point fee tier that previously been a lot higher so who benefits from the curve in uniswap wars the consumer lower transaction fees that's a beautiful thing um let's talk about this david so this is uh olympus has fallen out yeah slide continues so this is a headline in the block ohm market cap is down nearly eighty percent from its all-time high eighty percent down that feels like uh

a big oof decline that's a big is what we call that so okay well what's going on why so well just for just for context for reference the market cap of olympus dow peaked on november 23rd at 4.3 billion dollars it is currently at one billion dollars so we've lost 75 to 80 of the total volume uh volume uh and what happened um well i mean at the end of the day what happened is people sold like people sold and number went down

and i think there and one of the reasons why it went down so much was because um i think a very rational theory and this is a got pulled apart by cyrus unesco and his great tweet thread one of the reasons why it went down so much was it because it went up so much and one of the reasons why it went up so much is because of this meme out of olympus dow the 3-3 meme which is a reference to a game theory outcomes matrices uh and so you have possible actions that two people can take and this is like a

prisoner's dilemma basically all theories and extra game theories extrapolation of the prisoner's dilemma so you can stake your own you can bond your own or you can sell your own and if you sell your own that's like a negative number if you stake your own that's a positive number so they give in like arbitrary outputs and the goal is to convince everyone to stake their own uh instead of selling it because if if everyone stakes their own then number goes up and so there was this culture instilled out of olympus dow to put the three the three comma three thing in your twitter profile talk

about how like we're all gonna stake like no one's gonna sell we're all gonna stay together and that's what made the token price go up uh and i mean sure yeah when you convince you you and all your friends to to stake and also instill a staking culture like well then there's no one selling and so so number goes up the problem with that is that people until a lot of like omi's omis or what they called got really really wealthy because the the price went absolutely bonkers uh just a year ago the price of ohm was or the market cap of home was 50 million dollars in june of 2021 before

it goes to 4 billion in november and that's because this meme worked everyone was like yo if we all stake ohm we're all gonna get rich the problem is you can only be rich on paper like that you can't actually be real rich because there isn't actually a long-term buying power buying pressure because it's mostly just a meme uh and so what happened is like at some point this this is what a ponzi game is it's not a ponzi scheme it's a ponzi game but there's a this culture of buying and not selling and at some point that runs out some at some point people want to take paper

gains into real gains and then the culture of staking turns into a culture of selling and then we go from from where it was to where it is the reason and so there was a bunch of like marketing around ohm about how it's like this grand new central bank design and cyrus unessy put a tweet uh tweet thread together that really explained it in different terms where it's mostly just the olympus dow model is mostly just a hedge fund you put assets into the fund they get yield on it the the value of the assets in the treasury goes up but

the value of the market cap of the ohm token far far out exceeded the market cap of the value of the assets in the treasury so it was like a kind of a fractional reserve bank because like it was like a i don't know what the ratio was it was like five to one or ten to one a value of the ohm which is a share of the treasury versus the actual value of the treasury uh and so at some point like the the culture of staking just ran its course and people turned from stakers to sellers and now the value of the ohm token is falling

more closely in line with the actual reserves in the ohm treasury uh more closely moving to a one-to-one ratio kind of which is where you would expect an efficient market market to land anyways so that's my that's my summary of what's happened yeah so like i i guess i um i don't understand why people are so surprised that this is what i would say it's because basically the way i break down what you just said and the way i break down ohm is like there is some reserve asset that's backing this so it's a mix of dollars and eth right and call that the

threshold value kind of a utility value also and then tokens that are getting yield exactly and then ohm is trading uh far above the reserve asset value or the or the book value you might call it and uh all of the rest of that value that's above the book value or the reserve value that's all like maybe you call that monetary premium or maybe in the early stages of things you just call that meme premium but let's let's be fair that has a real effect totally okay because like bitcoin

the value of bitcoin is a hundred percent mean premium okay a decent chunk of ether's value is also meme premium and there is the potential that you can bootstrap that meme premium actually turn it into monetary premium if you convince enough people that the thing you have is money and this was the path that that ohm has been down which is saying hey this is a new approach to money just like ether just like bitcoin we've got an approach is called om and

this can be a global reserve money this can be a central bank has been the comparison okay well from time to time that theory gets tested just like bitcoin's been off 80 it's been off 90 right it's been through the fires of people saying bitcoin's dead um like the monetary premium evaporates on bitcoin many of these bear cycles that has been the case now now it's happening to ohm and so long term is oma money or not well you have to come to your own conclusion if it is a money it deserves

some monetary premium if it isn't then it doesn't and the market is in the process of figuring this out what i don't understand is why people are so surprised right because like i thought you knew the game we're playing guys right this is as you said like bitcoin and like ether to some level this is a ponzi game it's not a scheme because no one can rug pull you it's fully transparent you can actually see everything that's backing ohm no one has rug pulled anyone else but that that delta that you're playing with like that you know that pyramid game if like um if

we all hold together then we're good but if we all sell together we're going down um that prisoner's dilemma that can that can quite easily happen and this is just a case of that happening i don't think it's the end of ohm at all i don't think it's the end of the um the mechanic of om the way it works right in this whole protocol owned liquidity on trend i think that's totally here to stay but um it'll have to rebuild and it might rebuild with a new set of narratives i'm not sure or um or maybe they'll try another round at becoming a you know a

money maybe that's not dead either um yeah and exactly there's a reason why ohm the olympus dow model got forked like a thousand times there's like a thousand forks out there because the model works it's just like they it just got out over at ski tips with the whole like staking culture the 3-3 culture and now we're back down to reality there's a big fat reality check a lot of people lost a lot of money sad sorry about that uh me me too by the way i was in gnome um uh but i'm i'm not complaining because like that's what you get when you're playing the game playing the game the play in

the game and this is the game you're playing this is one of those things where like this was ohm's first big like uh like you know run up in price and then like kind of collapse back down to reality after it got forked a bajillion times and like to me that kind of feels like the first time where you know bitcoin had its proof of work fair launch fork phenomenon where bitcoin got forked a thousand times then it pumped and had its first crash and then it went back down to reality and then it had a bear market for four years and then it came back so yeah like the next story for om

is does it come back and no one knows the answer to that question but if you think it comes back like it's at a much lower price now this is where the conv like does olympus down have a community of people that are convicted on it exactly not just trying to do the whole three three three thing it's all it's all about the community it's all about the community of holders and also the question is will it keep falling because it could continue to fall i don't think it's quite at its reserve price right now i looked into this but i i think it still could go a is

eating and roding into that monetary premium so do you want to play the game now david right that's the question question for you i want to play the game well that's the game we're playing here uh let's talk about looks playing a different game playing the nft marketplace game vampire attack open c we just talked about that last week it's just a baby man it's like a week old and uh it's doing things so let's look at the price crushing it in price wow yeah it's starting to accelerate to a point where i'm a little bit nervous about its acceleration uh why why do you

think it's accelerating what's happening here well there is a decent amount of volume going through looks and so there's a lot of nft trading happening on the looks platform because of this token and this token that's going up in price they are they are paying for trades basically so if you trade your nfts you get look looks token rewards and as that token goes up in price like you have more and more incentive to trade nfts on looks they're paying you to trade so there's a lot of wash trading that's happening so kind of like in the same way that like yield farming

was just like the same people like leveraging up their yields and like it wasn't really true tvl because of the incentivized bootstrapping but that's what happens with a token uh and so we have two graphs here let's go back up to the first one that you already showed like looks rare is crushing open c in terms of volume and that's again that's because of the the token incentives but then if you go down to the second chart uh the actually number of users versus openc is like just nothing like it's i think openc's got maybe 20x the number of users but the token is pumping in price because of all this wash trading

that's happening because people want to get the tokens looks the thing i really really really like about the looks platform is that it sends ether towards the token owners and so i've been staking my airdrop that i got and i've gotten like half an ether off of my airdrop just by ether is coming from transaction fees so in open seas case it takes what is 2.5 2.5 in looks case it takes two percent but the looks platform is sharing that two percent with those who stake looks token whereas open c is keeping it as

part of its revenue part of its traditional business model exactly giving it back towards the token holder odors and i've i've always like when i've i've had my thesis is that i want as much eat as possible but i will also sell my eat for tokens that pay me give you more my game plan for erc 20 token investment and this is the first token that is actually spewing out eth uh and so like it's kind of hard not it's really easy it's real it's like it's real real cash flows now you could you could say that

that is going to evaporate once the token incentives but but it's still real easy like this is a real business model tokenized business model the the interesting question i think or the question that's in for the space is openc of course didn't go this route and we've talked to devin fencer on the podcast about why they didn't go this route um part of the probably the unspoken reason is the sec okay that's why we don't get token airdrops in the us that's why many of these companies are not tokenizing uh earlier in the process and so they're keeping it private um

there's probably other reasons for that but the big question is does this push openc or force their hand into doing something for its exactly so what do you think what odds do you give that of when uni-swap tips i actually have a lot of thoughts about this and i actually think we should take the time to unpack that uh

open c is not going to do a token it's not going to happen are you certain about that what kind of i don't have insider information i have uh body language and cues that i have picked up on um so nothing nothing concrete but here's my rationale there are zero openc investors that are disappointed currently in its current state there are zero openc founders and employees that are disappointed with openc in its current state everyone is openc is a

perfect success for everyone involved and they also have the eye of sauron on them the sec is looking at them all the regulators are looking at them the world is looking at open c because openc represents nfts and so they cannot do a token because that's going to be legally and compliantly dubious and they represent us and so they have to be sparkly clean and they need to bend the knee to the nation state and say yes we are a public company we're going to be regulated by you guys we're going to we're going to play nice and that is

that they are doing that to protect the whole entire industry by not doing something like like sec securities dubiousness and create some sort of like imagine how bad that would be if openc the thing that basically represents all of nfts has to go to court with the sec we don't want that for the industry and so they have to play the role of coinbase right they have to play the role which opens the opportunity for a binance yes who's a bit more fast and loose which is maybe what looks is they're the binance to you know uh open

seas coinbase yeah that's that's exactly right uh and so i tip the tip of the hat to to open c they've gotten a ton of flack from users lately just about being out of touch with what the users want and they're not they know exactly they're very in tune with what the users want they are just hamstrung by compliance by regulation as we have seen a thousand times before coinbase is the same thing they're just they grew really really big really really quickly as did the industry and now their number one goal is to not f

anything up uh and i thank them for that strategy i think it's the right and responsible strategy and also that leaves room for things like looks tokens it's all good it's all good it's great it's just like yeah we have like rough spots but like yo like we're they're they're leaving the door open for a truly decentralized truly protocolized version of an nft marketplace and i think that's going to be fantastic yeah as do i and uh you know i'm glad we get to let both of these experiments play out and uh you know in in parallel

um let's move on openc is still crushing it in terms of their sales volume yeah so january 2022 is the highest sales volume month ever ever it's just this happened with sushi and uniswap too remember when sushi came on the scene uniswap's volume spiked so it was like um you know the um you sushi actually helped uni-swap achieve more value rather than than sucking it uh away um let's keep moving uh one other thing with openc actually this week lots of

open stuff maybe we'll talk a little bit about is dharma was just acquired by opensuite so dharma is a d5 smart contract wallet uh it's a great way to get onboarded they were just acquired by openc what do you think the reason for this acquisition is now by the way we predict obviously like opencs raise so much money their last raise a month ago two months ago david was just 300 something million dollars okay the numbers are getting so large i can't remember they can't hire enough they don't need