ROLLUP: Coinbase is Suing the SEC

Coinbase is suing the SEC, or as David would say, we are suing the SEC

We're suing the SEC.

Bankless Nation. It is the last Friday of April 2023. What time is it, David?

Uh, it's the Bankless Friday weekly roll-up where we cover the entire weekly news in crypto, which is always just an ambitious endeavor. We got some lawsuits to talk about. This time in our favor, we're the ones doing the suing. Feels good, man. Uh, but uh, in order to prepare for all of that content, make sure that you have your morning coffee. You got your coffee, Ryan? Uh you're gonna need it.

Yup. Uh also, we should clarify, it's not you and I suing anybody. At least

Oh, yeah, we're we're we we as the crypto industry are doing the suing. We the people are suing the powers that be.

this is Coinbase suing the SEC.

Taking a while to get it.

I guess I should just say that.

We'll talk about that. Also, uh, John Oliver, he's got some fighting words for crypto. Well, I think I you know, it's mostly fair coverage. We're gonna talk about this. I think it was the mainstream take, though. We'll talk about what that means. David, what else are we covering?

Authorities are looking into SBF's parents. So SBF, the bankman freed name, back in the menu today. But then, of course, we're gonna get back into our roots. Talk about Chappella two weeks forward, uh, some more Rocket Pool stats. Uh, and something on Solana

I think is cool. So we'll talk about that as well. Yeah, go figure.

Is it a phone, David?

It's not the phone. It's not

It's a backpack. It might be a backpack.

Big backpack.

Okay.

I don't know what the

Find out

backpack is.

to be continued. Uh guys, and of course, if you like bankless and if you like crypto, make sure you like and subscribe, rate and review. That's how we pop to the top of the charts. Want to get the top of the charts and Spotify and YouTube and any other charts that exist. We want to get the crypto message out there. Uh David,

Like if that's a chart, I want to be there.

it's a chart. Let's let's optimize. Um

David, let's get to the market. Speaking of trends and whether they're continuing or not, gotta start with uh the Bitcoin price today. Are we continuing the trend up, down, or flat?

Dude, uh crypto prices were super weird this week. Net flat. Net flat on the week. Uh so Bitcoin is down.33%. So it's flat. Uh we are currently at $29,000. Almost touched $30,000, almost broke below $27,000. Uh, but here we are at the end of the week, flat. But I will remind Bankless Israel, you should probably just pull open your phone and check the price right now because I don't know what it's gonna be like in 24 hours.

Well, speaking of which, uh before you do pull out the phone, let's talk about the ETH price at the time of recording. Did that do similar things to Bitcoin flat on the week?

Uh slightly down, but it's it's flat. It's uh ether went down two percent this week. Um it's

It's really funny.

it's flat. Yeah,

Do you do you see these red candles? You see them both on the Bitcoin chart and uh Ethereum chart.

okay. So we had a pump. So so uh yeah, that the red candle happened while we were recording with Ledger. Ether pumped from 1800 almost up to 2,000, and we were like, we're back, baby. Uh same thing with Bitcoin. Bitcoin almost it like hit 30,000 and bounced off of it. And then like five hours later, everything dumps back down. Ether goes from almost 2,000 down to 1800. Bitcoin goes from 30,000 down to 27 uh hundred, twenty seven thousand, and now we're back right in the middle of those two things. So, Ryan, what the hell happened?

Well, this was happening, by the way, during we don't usually do shows on just prices and just charts, but we did a show on just prices and just charts. And this is the candle we experienced during that show. Right. Do you see that like talk on Twitter? People were blaming the thumbnail of that show as the problem. It's like a big goofy picture of like Ledger with his like mouth open eating.

Yeah. Uh-huh. That one might have been our fault.

But that it that wasn't the case. So uh I don't I don't think we can be blamed for this, at least, David. There was breaking during the show. Mt. Gox and the US government wallets making transactions, the infamous original Mt. Gox wallets that were supposed to be sort of locked up, maybe doing things, maybe causing a sell off. This news sort of propagated. It turns out

Okay, so the the Mount So here the TLDR of Mt. Gox is that there has been a decent amount of Bitcoin, something like 10 to 20% of the supply of the Mt. Gox hacks hacked Bitcoins that has been locked up in the court proceedings because some of the Mt. Gox forever. Because some people keep on delaying and delaying, delaying. I don't know why the strategy is behind that. Anyways, the the Mt. Gox Bitcoin unlock FUD has been with us since I've been in crypto. Like

Oh yeah.

It's like the the that meme of like the truck running into the wall, but the camera cuts every single time. It's been like that for like four four years. And so the news broke that a Mt. Gox wallet actually started sending transactions, implying that the FUD has finally arrived. The truck is finally gonna crash into the wall. Uh and so uh an alert, like a bot alert alert about like, hey, this wallet's making transactions went out, which is what triggered this tweet from DB, who does all of these breaking tweets saying, Mt. Gox, Mt. Gox wallets are moving. They're gonna sell, they're gonna sell.

The implication is that like the ten to twenty percent of the Mt. Gox exploited uh bitcoins are basically going to be sold because they were

Right, because they were 1,000 to they they were like $300 to $1,000 at the time of purchase, and now it's whatever the price it is now, $30,000. So you're gonna assume that these people are finally going to liquidate that that like almost decade-long force hold. So that's the story. And then these things actually start moving on chain to set off this alert, this Arkham alert, which triggers this tweet, which forces the market to sell off. That was all that backstory. Turns out it was an errant bug. So once again, the truck did not crash into the wall. So uh

Turns out we just totally wasted your time by telling you this. Just like the markets wasted our time

Yeah,

in like producing this errant signal. I I I feel like this is a bigger picture of the markets right now, David, which is like no one really knows what to do. And so there's all of this noise. Right. This is just more noise. People asking like why the price up and down. Well, it was a false alert. But now it's kind of stayed down, at least from the highs. But like it bounced like

a little bit, but

There's so much noise in this kind of market and I just kind of filtered out and

I'm just done with it. I'm over it.

how about the ratio? You done on the ratio? ETH Bitcoin ratio inside of the ratio.

Okay, because it's going down.

It's at 0.065. So like downer-ish, but it's still within the the last range it's been in the last two years. Nothing is significant below until we get start to get below like 0.055.

Or above 0.8.08.

Ledger had good commentary on the ratio. I think.

Yeah, he did.

Um

That's a really good episode. People should go watch that.

did it change your mind at all? Are you still holding the ratio for uh you know

Well, yeah, because like because he was like Dave, like David, if like you know, Bitcoin goes Bitcoin Hulk mode and uh Bitcoin's at $100,000 and Ether's only at $5,000. That is a ratio of like point, I'm gonna catch you the math. It was something like 0.05 or something. And I'm like, well, that's I held that my my ratio trade built down to the three hours capital liquidation when it got down to 0.04 something. So like

scared?

come at me, bro. Like, I'm not scared. Yeah. Uh-huh.

No. ETH ETH is a different ETH than the last bear market, and that was the main thrust of Ledger's argument. Last bear market, it was weak. It was so weak in comparison to Bitcoin. We've got a much stronger ETH this time around.

Uh global crypto market cap. I'm gonna say it this time, David, because it's so uninteresting.

We're above a trillion, 1.24 trillion. That's what you need to know. Tell us about this story, though. Humulative ETH deposited beacon chain and validator. So we shook the snow globe. What's happening with all the the ETH that was staked? Is it being unstaked? Is it staking elsewhere? What's going on?