ROLLUP: $ARB Airdrop | Banking Failure with SVB & Silvergate | Ethereum Shanghai Staking Withdrawals

arbitrim has finally announced the long-awaited airdrop is it Layer Two season are we finally here can we say that bankless Nation it is the third Friday of March David what time is it Ryan it's the Friday bankless weekly roll-up where we cover the entirely Weekly News in crypto which is always an ambitious Endeavor yet we persevere nonetheless into the frontier with an air drop this week the frontier has brought us an airdrop we found an airdrop big we got one one that was much anticipated guys

we're going to tell you about the arbitrim airdrop it's happening and we've got all the details we're also going to talk about some of this Fallout from this little banking crisis it happened after we recorded the last roll up and it's been going on until then so we'll talk about that now maybe the contagion has reached Europe David what else we covering uh the New York attorney says that ether is a security but should we even listen to them at all uh Gary says staking is also security-ish we have to listen to him a

little bit more uh the cftc says hold up hold up so we'll talk about about all those details and then sad sad news out of D5 protocol Oiler it was a big hack 200 million dollar defy hack from a beloved bear Market uh building team so we'll cover those details and more make sure to like And subscribe write and review wherever you are listening to this whether you are listening to this on the podcast or on the YouTube hit that like button hit that subscribe button and share it with your friends and family to help those who are not yet on their Bank list Journey go bankless

speaking of going bankless David uh this is a question for everyone in the bankless nation who is listening right now are you a bankless citizen yet uh Dave and I told you about the release of our new website bankless.com last week I think we must have said it about 10 times we're trying to get it I'll get our quote of a dozen uh launched last Friday fantastic getting a lot of great feedback back from the community what the section I have open right now is our just for Citizens section so if you were listening you are not a citizen there is

an option to upgrade and become a citizen right now one thing I'll draw your attention to is something that drops at the time you're listening to this it should drop today that is our airdrop guide all right every month we issue an exclusive airdrop guide to all bankless citizens that contains some Alpha it's our best guesses on which air drops are happening next and they're still happening people people said the airdrops were dead not the case we just got probably our

biggest airdrop of the year of the year of the last like I don't know the last long time yeah just happened this week and the airdrop guide has a whole bunch more I don't know there's uh a few dozen anyways and so if you missed out on Arboretum or even if you got the arbitrim opportunity the there are more opportunities to unlock because as we always say David crypto pays you to learn about crypto you use some of these protocols you implement the strategies and you can be eligible for these in the

future potentially these are just our guesses anyway Citizens Great yeah and you would definitely can't hear about it in the feedback inside of the uh inside of the bankless nation Discord like the bank list premium subscription is designed to pay for itself and this is just one of the many ways in which it does that here we go let's get to markets David uh the price of Bitcoin this week we up but we down uh we are very up 15 when's the last 15 green weed that you've seen in Bitcoin we started to make it twenty one

thousand six hundred and fifty and that was before we dumped so right when we this is this always happens Ryan we concluded the weekly roll-up last week right about here right right yeah right about there is when we record it and then that big red candle happened and then it went down even more and then it research all throughout that this last week so as we started the week at like 21 600 hit a low of below 20 000 which is not a number we want to be below and then as soon as this banking crisis resolved itself Sunday night Monday

morning Bitcoin had a massive run a 20 to 25 run inside the half of a day or something look at this yeah between below 20 000 to uh almost twenty seven thousand we are currently at twenty four thousand seven hundred dollars uh up 15 on the week from where we started at twenty one thousand so it's one of the most volatile weeks in crypto price action probably of the year uh ending the week positive in over the last seven days by up 15 so as a tradition I'm sure by the time you hear this we'll be down

there yeah after that candle down like we need to just change the sections like all right bankless Nation please please follow up in your charts open your price tracker Checker that's the price of Bitcoin recite Bitcoin to yourself every time eat for yourself insert here how about youth price that tells a story though which is different than Bitcoin it's also up as you'd expect but not up as much yeah each price starting the week at 15 30. uh it fell down to below fourteen

hundred dollars uh moved up almost to eighteen hundred dollars and now is at sixteen hundred and sixty dollars so a one a very volatile week overall up eight and a half percent on the week uh Bitcoin almost doubled the appreciation of ether this week David can you believe that I listened to this chart this is the Bitcoin ratio and I'm wondering if you're a little salty about this all right look at this ratio man so so Bitcoin of course appreciated much faster than uh

the price of ether this week and so that means the ratio goes down six percent so it actually was like doing really really well we almost got up to point zero seven four we were down to 0.076 which is a huge move for the ratio there I mean we're used to Dollar move Bitcoin versus either versus the dollar but the ratio does not usually move much uh I haven't I don't remember the last time the ratio moved six percent but yeah down below 0.067 so we are touching the the lows of the recent times now look at this I'm learning to

become a charter on Kraken Pro and I'm just zooming out cracking doing God work here yeah you've really helped um Kraken Pro of course bankless sponsor our favorite place to go chart and uh to exchange coins the only place that he chose the only place that he's been able to it's great though we haven't seen these this lows in the East Bitcoin ratio since the three arrows Capital liquidation back in June and the reason why the ether price was so suppressed then was because ether's just used as

the collateral of the internet just in defy and across even in Solana right and so when three hours Capital liquidated itself and many others uh ether had so much cell pressure and it bounced right back above that but now we we haven't seen Lowe's since then so okay well so this chart really tells a story I think this might be one of the the stories of the week why did Bitcoin appreciate so much relative to Ether it's not like some Catalyst event happened for Bitcoin it was this is all on the back of these these Bank runs and the resolution of

the bank runs but Bitcoin appreciated more it almost double um ether why yeah I think that's right I can only really explain it by the the banking crisis and I think the very simple take is that oh uh banking crises banks are collapsing good yeah right and whether or not this is New Capital who are like oh the banks are collapsing therefore I'm gonna warm up to Bitcoin now I don't know how much capital is saying is like coming to that conclusion the other take is like oh the

traders of crypto are like oh other people are going to think that and therefore we're going to buy Bitcoin because people are going to think that oh Banks collapsing there for Bitcoin I think when something so big in the Trad world that proves out crypto's use cases happens I think that's the simplest the simple take is like oh buy Bitcoin uh that's my that's my only explanation that's my only thing let me throw another take at you I don't know if this is later in the agenda but you know uh binance's Reserve fund their insurance form the fund the finance Insurance Fund

that they've been stacking dollars in usually it's it's been denominated in stable coins CZ announced that binance is going to I don't know if they've begun this yet David but is going to rather than denominate this Insurance Fund if an exchanges hack or something goes wrong kind of the binance bailout fund is going he's going to move that from uh stable coins into Bitcoin and eth yeah and uh could that be and from running of that or could that be that sort of activity I don't know I don't know I mean over over the long term if

like we just bounce off of this low because like we we haven't broken down lows back down to the Thrills Capital liquidation levels if we just bounce back up then this will become noise yeah I don't no I don't know how to interpret this what are you doing are you still holding that ratio trading oh God yeah yeah oh I've held I've held the rate my ratio trade down way below this I've held it down to 0.05. you're not wearing I held it through the the three arrows Capital liquidation look by the way this you did your boy's not here for the short term narrative Traders are excited right now but David continues to hold uh how about

the global crypto market cap how are we 1.125 trillion dollars wow up bigly we almost fell below a trillion but we have not yeah so we're up about a hundred billion just on the week kind of nice casual talk about let's talk about uh CPI inflation gotta talk about the quote-unquote real economy that's not the real economy I guess the traditional economy the non-crypto economy uh inflation so the long-awaited U.S CPI numbers that is the consumer price index

numbers came in what are they reading annual inflation down to six percent so recall over the summer we were at like nine percent eight or nine percent something like this and then CPI grew less the last month so that would be the month of um February then in January it grew less by 0.4 than February and less by 0.5 in January so I my interpretation is that the core

inflation is down and it's down a predicted amount not above or below that predicted amount is that the interpretation seems to be it seems to be kind of in line with what analysts expected maybe down a little bit more than analysts expected but like nothing surprising here so the market wasn't uh reacting to this this week it was all Bank crisis time you have a take about inflation here for us so if I ask you to tell me how to feel about this your answer is you got nothing I mean nothing new right tell me how to feel about this right inflation is I

think trending down story trending downwards but also is probably more persistent than the fed or anyone else wants to admit and it's probably um still not going to be pushed downwards by monetary policy any further so I'm still in the camp of like you know two percent nah that was for the 90s right we got like some three four percent New Normal maybe like a five percent that's still the camp I'm in but uh we'll have to see where where things

go and you know we've had macro folks in the podcast like Lynn Alden who I consider very good in in this area and she talks about hey the next 10 years we're gonna have uh Cycles volatility of inflation periods years for inflation yeah we have large spikes and then we kind of ease back down but when we ease down don't get comfortable there we're not returning to like a you know 10 to 20-year period of time where we have two digit inflation we're going to continually get real inflation in the economy and by the way CPI is just um I

feel like it's almost the wrong metric to look at anyway yeah right the takes I've been hearing about inflation is that we actually don't know to what degree is it a supply side problem or demand side problem uh so one take I heard recently was that okay we're increasing interest rates just to you know destroy Capital destroy demand but also like there's the whole supply chain thing and and all of that and so there's the other side of the equation that the FED doesn't have control over and to what degree that actual inflation is responding to Fed interest rate policy versus just normal

consumer and supply chain and supply side things is still unknown and perhaps the fed's involvement here is less and with the meaning that inflation will just naturally subside just by some of these idiosyncrasies of the covet era just play out we will have to see that's what that's what the fed wants to be true I don't know how that's gonna play out David let me give you some good news on your uh eth Bitcoin ratio trade all right ultrasound money still continues to be ultrasound oh thank God you can

you can go look at ultrasound.money at the burn we just hit 3 million ether Supply burnt as a percentage of the network what's that just under like two percent uh no over two percent I think just sorry just under three percent oh yeah it doesn't matter 2.7 something like that um that's incredible incredible three million three million youth Burns since eip1559 not since proof of stake Demand on ethereum Ben lately up only

yeah so 120 a million and we've burned three million because of eip1559 that is a significant amount and the eip1559 burns ether at the margins right so the people that still have their Ico ether and are just holding on it that ether's not being burnt it's like the active transactors that have to re-up their supply of ether that's being burnt and so it actually does show up in the price slowly very slowly it's fundamentals yes these are what we call fundamentals David some interesting volume

fundamentals as well uniswap volume is a big this is a tweet from Hayden Adams uniswap at almost 12 billion in Daily volume hitting 11 digits for the first time ever has a crazy amount of volume I feel like that's silently happening in the background well no not so silently that is that is people fleeing out of USD and then back into you silently happening in the background it was quite loud I know people are like oh my God it's USC is over there was a lot of that

this weekend by the way um we'll get to it later but of course USD depegged to 90 cents never seen that happen actually below 96 oh yeah 88 88 cents never seen that before so I guess that's why the exchange activity was busy yeah that's exactly right yeah but it's also not it's this is in line with other things so here's synthetics a hundred million dollars in Daily volume for synthetics perpetuals uh which is a almost a 2X bigger amount than it's ever had on a daily so like synthetics on Layer Two on

optimism yeah uh coming back with the force and this has always been a big constraint on synthetics is layer one gassy is really hamstrung the whole entire synthetics ecosystem now that it's on optimism it is seeing a a rise of the Phoenix for synthetics swaps also hitting all-time highs over the weekend so activity is is is in Block space demand is in you know I'm going to do a quick shout out for our friends and sponsors at metamask here it seems like an appropriate time did you know bankless Nation inside of your

metamask wallet there's this really cool feature called the swap you could do inside of metamask don't need to go to an exchange you just swap one asset for another really reasonable prices and you get that done inside of your wallet that's what does the whole order routing thing to go through all the exchanges so you don't have to deal and do it it's like kayak for your for your you know you know hotels hotels.com or yeah there you go and thanks for thanks for

metamask for supporting bankless as always David what do we have coming up next coming up next what do we have uh the arbitrum airdrop is what we're going to talk about so we're going to talk about all those details uh today in about two in hours and ten minutes we're gonna live stream with the Arboretum team so that is available for those that are listening to this on Friday uh but then we're going to talk about the banking crises and all about the Fallout from that the joint statement from the FDIC Signature Bank whether this is an attack on crypto Tom Emmer's letter to the FDIC uh Jeremy allares uscc and

Credit Suisse because the banking crisis hit Europe uh and then after that we got to talk about the New York attorney general that alleges that ether is a security but do we even care about that person I don't even know anyways all of that and more as soon as we get back from some of these fantastic sponsors that makes this show possible Kraken has been a leader in the crypto industry for the last 12 years dedicated to accelerating the global adoption of crypto Kraken puts an m emphasis on security transparency and client support which is why over 9 million clients have come to love kraken's products whether

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go to learn.menimask.io and add metamask learn to your guides to get onboarded into the world of web3 arbitrim has finally announced the long awaited airdrop David is it layer 2 season are we finally here can we say that I think so so arbitrum is releasing their token optimism had their base announcement with coinbase to count them zke EVMS go live next week this is the layer 2 summer that we have been talking about for like two years now and finally finally coming it's

happening it was the summer just not in summer time anyway the ARB token that's what they called it ARB so not RB I like that ARB will finally will be used to govern over the arbitrim ecosystem and yes it will be airdropped early to users it launches next Friday as March 23rd so the announcement is today we know it's going to happen we know some of the details Dave's getting into that the actual token goes live next Friday next Thursday actually is it next Thursday

okay sorry guys next Thursday by the next roll up we'll have some actual token information but David you know all about this because you've been talking to arbitrim we have them on later give us the Deets yeah so okay uh 10 billion token Supply 11 point something something percent air drop to users of arbitrum one point something percent airdrop to Dows on arbitrum to give to their communities a significant percentage being given to the Dow treasury something like 45 so if you count the Dow treasury or 43 excuse me

so if you count airdrop to Dallas users and the treasury which the treasury is like up to the community to decide that's something like 50 56-ish percent uh and then investors and the team get something like 45 of total tokens how do you like that good distribution what do you think I'm waiting for the community to respond to that I know uh palenia said that this was a bad distribution but it's very hard to appease Polonia these days we would know uh and uh but I don't so I I went into the

small brains Discord and I was like yo uh how's your guys's reactions to this community yeah small Brands yeah yeah the treasure Dow ecosystem I just went in there and asked for their gut takes and everyone was very very excited uh and so the sentiment is good strong morale strong sentiment I think the community is accepting this um yeah that's that's my take there okay that's the supply now how are they actually Distributing the airdrop portion of it David who's getting this how do how do I know if I'm eligible okay so there's a bunch of different uh reasons why one could be eligible for

the arbitrum token I think you're going to go ahead and hit that button and we can look at this uh this happened live right yeah this is the only tokens you got all right well I've been using let's see I did five things out of the six things yes because five things also have uh tears inside of them as well so six different things each one's with internal tiers so did you bridge to arbitrum so that's pretty binary like yes I know uh you did looks like you did not bridge to arbitrum Nova so you did not get that um uh qualification two

different things not with this wallet okay all your 17 otherwise yeah um transactions over time so you've conducted transactions doing two of distinct months uh if you did it with six months you got more if you did it with nine months you got even more than that so that's like a usage type thing how often are you doing this yeah exactly uh next one transaction frequency and interaction uh more than four transactions or interacted with four smart contracts as the base tier and that goes up to 100 transactions

with more than 100 Trans smart contracts for the big Power users out there uh and so there's four different uh tiers inside of this criteria that is transaction value ten thousand fifty thousand or two hundred and fifty thousand in aggregate transaction volume so if you only had a thousand dollars but you transferred that one thousand dollars around 250 times you would have cr uh gotten the top criteria and then uh bridge to arbitrum one so assets bridged uh if you deposit more than ten thousand fifty thousand or two hundred

fifty thousand dollars of assets to arbitrum one and then activity on arbitrum Nova as well the other the other arbitrary chain so those are all the criterias yeah so I got three thousand ARB tokens and again they're not awarded right now so I can't come claim these I can go claim them next Thursday yes next Thursday and you also delegate to a delegate for governance which brings us to the conversation of governance so yes arbitrum is licensing Arboretum technology to the arbitrum Dao and so this is actually pretty cool the

not only do they launch their token they've also launched what they are calling arbitrum orbits which are arbitrine layer threes so if you you choose to build if you choose to build an arbitrum roll-up and deploy it on the ethereum layer one so separate from the arbitrum ecosystem you must first get approval from the Dow if you choose to build an arbitrine roll-up and deploy it on arbitrum 1 or arbitrum Nova that is completely permissionless so you can use arbitrum technology

freely to build on top of arbitrum pre-existing chains but if you want to take the Arbitron technology and build your own independent roll-up that settles directly to the ethereum layer to layer one you must first get dow approval by token vote okay let me make sure I understand this so if we were to create a bankless arbitrary roll-up and our own apart from Nova apart from arbitrum one yes we it has to go to Dow vote Yes the ARB token holders have to give us you know 51 or more right uh okay so if we want to do that but it is

completely permissionless if we want to build our chain like what a chain three yeah a layer three a layer three um Tech okay on top of on top of Arboretum on top of arbitrum one that is correct and permissionless yes interesting all right what's the intent behind that do you think well naturally uh the value of the arbitrum chain gets contained by the ARB token if you build on on top of arbitrum yeah one or Nova but if you build an independent chain

you need to justify why you aren't Building inside of the arbitrum network uh and so the the doubt will determine whether that effort is legitimate fascinating I think that's very fascinating nice experiment okay what else does the ARB token do besides vote anything do I pay transaction fees for it or is that still ether oh no that's always going to be ether yeah the the other big thing is that there is a multi-sig that backstops the fault fault proofs for arbitrum so okay arbitrum fault proofs are actually operational

and running so the chain is legitimately decentralized we are now in what really would call a phase one of roll-up decentralization out of four which which is uh live fault proofs are we seeing that L2 beat uh the wrist I don't know if they have that updated that fast okay okay um so that is live and running and it's backstopped by a nine of 12 multi-sig so it's like you know when your kid is like learning to bounce on a bicycle but you keep your hands there like that's what's

going so the kid's balancing but you still keep your your hands to catch them there that's what the multi did I did I read this uh this group of multi-sake holders it's called the security Council that's correct it's a security account so if they're attacked then there is a multi-sick way to kind of like um do a fast upgrade some sort of very fast reaction and uh yes okay but but fraud proofs are happening now correct yeah that's big yeah uh and then uh also the cool thing about arbitrary governance is that this is not snapshot vote this is

direct on-chain executable governance uh and so you don't have to wait for the team to be like oh this is what the community Wanted let's do it no it the a arbitrum governance is executable on chain directly which is pretty cool yeah but okay but like directly on chain what's that what does that mean what is it as opposed to like governance which is like all right let's do a snapshot vote like oh this side one that means we're gonna do this no where it's like a social contract yes exactly yes no the arbitrum token governance is live on

binding it's binding correct that's really cool there's also uh this brand new thing called the arbitrum Constitution I mean you can't kind of expect what that is it's the social contract of the Dao uh it also sets some terms a AIP arbitrary Improvement proposal uh there's the Dow treasury government chain non-govern chains et cetera et cetera et cetera uh and so this is all found at docs.arber drum dot foundation and there's now an arbitrary Foundation that exists very cool they've really gave this a lot of thought uh I

can I can certainly tell this uh big rollout okay let's talk about this we we don't know what the price of the token is at this point in time but we will by the next roll up are there any guesses do you have any estimates on on what we might be looking at if you I guess you could just do comparables of other layer 2 ecosystems what would the the value of my 3000 ARB tokens be yeah so 10 billion arbitrum tokens uh coincidentally conveniently Matic and optimism are

roughly valued kind of close to each other Matic is valued at 11.4 billion dollars fully diluted optimism is valued at 10.7 billion dollars fully diluted uh optimism has a lot more of dilution to go the market cap is much lower than the fully diluted value but the fully diluted value I think is the one to pay attention to for the time being so if we think that Arbitron is going to be about valued like these two comparable like for like one to one ish that would mean that one ARB token is going to be about

one dollar ten cents ish if you think that Arboretum is equivalent to Matic and optimism so just above a dollar is what is I think that is the most safe base case could be as a conservative estimation in my opinion it's like one dollar and ten cents how much supplies hidden this will be a more similar to optimism than to Matic in terms of it the liquid Supply that's on the market is that right yeah Matic is like they've got medic has gone through price Discovery uh and so it's an old token

that's why the older the token the more uh distribution is in the hands of kind of the open market the less is locked up and kind of insiders and investors and that sort of thing yeah that's that's right and so the market cap of uh Matic polygon is 10.3 billion where the fully diluted value is 11.3 billion so it's like 90 issued right yeah optimism is uh a fully diluted value of 10.5 billion with a market cap of 750 million under 10 under 10 totally issued uh arbitrum

is coming in with a 12 airdrop so they are going to be a little bit of head of optimism in total uh total amount actually live circulating and trading uh and so they'll still have a lot more to go in terms of price Discovery optimism's price Discovery is there's a lot of price Discovery in the optimism token like already baked in um Optimum is going to be about a little bit more ahead but about the same uh and so I think there's a lot more defy and financial activity on arbitrum than

optimism I think it's safe to assume this is my estimation I have no idea what the Market's going to do obviously like one a a like for like comparable of one to one for arbitrum to optimism and polygon is very safe and conservative I think we could it would be reasonable to assume a two to one valuation is it a two to one evaluation so two two dollars two dollars 25 cents for for ARB depending on how Manic the our the community is and how many tokens they want to purchase on the secondary who

knows and who knows what the initial price might be right um that's all up to the market to decide we have a fantastic report that bankless put out uh if you want to get the details on that because I think if if you uh received airdrop the not Financial advice question is what do I do with it do I hold it do I sell it I definitely delegate it definitely well that would require not selling so sure um but yeah so you can you can think you have to build that claim however so you know uh arbitrim's D5 moat that is a really interesting thing um I mean for me personally