Coinbase Drops Base | SEC Sues Terraform Labs & Do Kwon | Spotify Token Gating | OpenSea vs. Blur

David, you're not gonna fire me, are you? Not gonna let me out.

I I think it does take two people to do this podcast, at least you and I.

Prepared for that question. Ryan, um, well, can I see you in my office after?

I'll I'll be better, David. Uh

Bankless Nation, happy fourth Friday and the final Friday of February twenty twenty three. David, what time is it?

Ryan, it's the Bankless Friday weekly roll-up where we cover the entire weekly news in crypto, which is always an ambitious endeavor, yet we persevere into the frontier. Nonetheless, like we always do, with coffee. Got coffee?

Uh

I've got

I always have you like that. I can tell you. And I don't know if that's the coffee speaking right now, David, or that excitement in your voice is just like all of the incredible things. Like what the hell? This is a it's a good day to be going bankless, my friends. It's a good day to be in crypto. We you know what? We we shouldn't tease them any longer. We should just get into some of the headlines that we're going to discuss in this epic weekly roll up, the fourth Friday of February. David, what's on the agenda?

Coinbase drops the base, a new blue layer two on the scene. Yeah, that's right. Coinbase has its own dedicated layer two.

Yeah, you like that one. Uh and so we're gonna talk about all those details. What does that mean? What does it mean for a coin for Coinbase to have its own layer two? Uh how did they how are they building that? What is what are all the implications behind that? So we're gonna unpack that and more because bankless got the scoop. Uh so coming up after that, and the sad, sad news, uh SEC sues Terraform Labs and Doquan, which I mean that's not a surprise, but the implications of what that lawsuit might imply are bad. So we've got to talk about the details, the precedent that that might set if that goes forward. And then third, Spotify. Uh, the app that some of you are using right now to listen to this podcast is gonna have tokens in it soon.

Yeah.

Which is pretty cool.

Seems like it. Seems like maybe podcast NFTs. Podcast NFTs. Music NFTs are a thing. Token gating. We're going to get into all of that and more. David, before we do, we got to talk to folks about something we don't often talk about on Bankless, and that is what does it mean to become a citizen of the Bankless Nation? I'm going to close that URL. Do you know why? Because that was a this is our new beta site, by the way. This is going live in about weeks' time. I think our dev team might kill me. Soon TM. Week two weeks. And you have the opportunity to become a bankless citizen. It includes our token reports, where we dive in, our analysts uh talk about token ratings for all sorts of popular tokens.

Which is getting these tokens are getting an update by the way, as a result of today's news. So the these token reports always stay updated as the meta shifts.

Yes, and it's because um David and I are um look we're not plugged into the day-to-day. We we hired a talented team of analysts to actually put these together and they're uh smarter than us. Okay, these are on the frontier. Yeah, David and I are losing our reflexes, all right? We we were at the top of our game three years ago, we are no longer, but we have the best people who are doing this. We also have a bankless nation member only Discord, we talk about a lot. Uh a premium podcast feed with a ton of goodies. And David, just this week we released the debrief on the premium podcast feed. We also released a um a special QA Twitter session that we had with uh

Eliezer Yudkowski, of course. And that was the QA that we had promised after that um crazy episode that we recorded. So all sorts of goodies come on the special premium podcast feed. You can only unlock that when you become a bankless citizen.

All the extra content that we have that we don't have space for in the normal RSS feed, all the extra content gets on the premium RSS feed. But those are only some of the details. You get to go to our In Real Life Denver meetup, you get to go to all the future meetups that we'll have at ECC and permissionless. Uh you'll get to unlock future access for things that we can't yet talk about. There's a bunch of reasons to become a citizen of the Bankless Nation. You can also join my QA uh channel and ask me questions if you want to

Good question?

in my QA channel, sure.

Just I can't can't in real life. I have to reserve it for the QA.

That's what the channel's for.

Yeah, okay. Fair enough, David. Uh anyway, all this $17 a month. It's like a Netflix subscription. That much Netflix costs. And uh anyway, we think you should become a member of the Bankless Nation. We'd love to have you on the journey with us. David, let's get in the markets this week. What is Bitcoin Prize doing for us? And we're viewing this, of course, on our favorite place to exchange tokens. Kraken,

Kraken.

our number one recommended crypto exchange. These are the charts for Bitcoin and the dollar. What are we looking at on the week?

Uh looking at on the week, start of the week at $25,000, ending the week at $24,000, which means Bitcoin is down four percent. Uh you are zoomed super far out. You are looking at like a year's time frame. Um but that's what if you zoom in, that's what we are now. We are down four four percent on the week, lost a thousand dollars off of the Bitcoin market cap.

Alright, how about Ether? What's that doing on the week?

Ether down three point three percent, start of the week at seventeen twenty five, currently ending the week at sixteen fifty.

Sixteen fifty.

Yeah.

So wait, you said is it up or down?

Down. Down three point. Why are we down?

Doesn't feel like

So like sometimes we just fall victim to unfortunate timings of what was exactly 24 or 70 uh seven days ago.

so it was

Basically,

basically a flat ish

it just looks

weeks kind of down.

we we dumped it down, like Ether hit sixteen hundred dollars, Bitcoin also kind of hit a recent low, but then we bounced right back off of that. And so the the Bulls and the Bears are in a very strong game of tug of war right now.

Look, I'm not even using the browser tabs for this, I'm using the Kraken tabs for this.

ETH Bitcoin ratio, what's that looking at like

Which is relatively unchanged on the week, up about half a percent.

Alright, but still not up uh in the re like to the recent highs.

Below.07 is like kind of a low for ether uh in the ratio in in local terms.

Bitcoin having a bit of a recovery, we might say. Some people are really celebrating that. Um we'll see if that lasts. Uh total crypto market cap. What are we? Above a trillion?

Above a trillion, so down on the week, but 1.15 trillion dollars.

All right, David, let's uh cover what's going on in the Fed real quick, because I just really want to get to some of the crypto news this week. Um the first is this the FMOC had their meeting. Here's what you need to know. Um all officials, almost all the officials, favored moving 0.25 uh percentage points or bips, point uh twenty five bips. Uh in the next meeting. I I'm just saying bips, bips, bips, because David hates that. Um

Yeah, but you also fumbled it, which kind of goes to my point.

BIPS are tough. The next meeting, anyway, we'll probably see a 25 bip basis point increase on in March. And then some of them want a 50, a point five percent. Alright, never mind. I'm not doing the BIPS thing. Thank you. Some of them want a 0.5% increase, and they're probably not going to get it. But the Fed says basically forget about the pivot. We still got work to do on the inflation. We're not pivoting now. And the market doesn't expect the federal funds rate, the inflation, uh the sorry, the interest rate to increase beyond about 5.3%. So we're kind of close to peak, at least according to the market. So that's what's going on there. Um the interest rates aren't hiking as fast as they used to be, and we might get close to a top. What is going on in the world of ultrasound money, though, David?

Uh it's at all time lows in supply since the merge. Uh so that's just great. I think how much ether have we burnt since the merge? So 35,000 ether, wow, in 160 days. So almost 35,000, 35,000 ether in uh in half of a year. That's that's just great. That's just great. The the down only on the supply.

Yeah, this is all time lows.

Big time. I mean every single week. We've hit all time lows every single week for like um over a month now, I think.

We we are negative six bips, David. Can you believe that? Inflation?

I hate that you just said that.

Six point six bips, to be precise.

Yeah, so yearly deflation is point zero six six percent negative. That's pretty cool.

Why why do we always talk about this? Some context for this? Here here's a tweet we pulled up. What does this say?

Yeah, so this is from Data Always, uh, who has been pushing back on the focus from ETH influencers, if you will, about just say bankless.

Uh so Data Always retweets uh their own tweet. The first tweet says, The ultrasound money cult really confuses me. If we match the highest ever yearly average burn, we see a supply decrease of two to three percent. With constant uh fully diluted value, it's an insignificant price pump. Deflation is a meme, the bull cases flows. Uh, and then they continue and say most of the responses to this just go to show how few inform uh people understand flows and how much information asymmetry still exists. The issuance reduction matters a lot. The nuance is that the rate of burn deflation means almost nothing for flows. Okay, what do they mean when they when they say this tweet? What they're basically saying is that the real uh price catalyst was the merge, not the burn. As in, the elimination of proof of work issuance is the thing that changed the flows. As in, killing all of that if uh issuance uh killed the outbound flow away from ether the asset. As in the cell pressure was eliminated. They are saying that the burn, the thing that you and I talk about at the start of every single uh weekly roll up, Ryan.