This week was another example of the crypto industry catching up with itself. The SEC’s enforcement action against the former head of decentralized exchange EtherDelta had everyone scrambling to figure out what it meant. Was it a warning shot? A reminder that existing rules can apply to new contexts? Did it suggest that, in the future, leaders of decentralized exchanges who attempt to be pseudo-anonymous? All of the above?
Regulatory action wasn’t all that was happening this week. In the news column, we saw:
+Interesting observations on the mindset of institutions and central bankers in the US
and in China
Over in the realm of ideas, we were treated to:
+Perspectives on the possibilities for the upcoming
Thanks as always and Happy Long Reads.
1/ Long Reads Sunday #20. Wowow, 20 weeks of curated crypto madness on the books. And with the SEC getting enforcement frisky on DEXs and further calling into question just how decentralized decentralized projects have to be, it was a big one. Pump some java into your thermostat, its long reads time.
5/ One of the most interesting points of conversation is whether this sort of SEC enforcement against a founder will prompt more DEX and crypto project leaders to anonymity. This was the dominant sentiment when I asked CT people what they thought would happen next. https://twitter.com/nlw/status/1060690841260437504
11/ Following up on previous news that @Bakkt plans to launch in December, @jchervinsky goes HAM explaining the major anticipation (and, of course, corresponding concern) around the project from NYSE owner ICE. Key line: “Bakkt’s launch has become a full-fledged narrative for when & how the bear market will end.” https://twitter.com/jchervinsky/status/1059828623471972354
12/ Bakkt is part of a larger conversation about the growing participation of the existing financial sector. On that front, @nic__carter shared observations from DC Fintech week at the IMF. TL;DR they look at it like technology, not fiat competition. https://twitter.com/nic__carter/status/1060720831486148608
13/ Speaking of central banks, @DoveyWan highlighted that, for the first time, the People’s Bank of China had published direct comments on crypto and blockchain - echoing what Nic found - that it was viewed more as a technology, not a threat to fiat money. https://twitter.com/doveywan/status/1061132417828704256
14/ Going even deeper into the existing financial infrastructure, @APompliano wrote up how a consortium of 15 banks is working with the DTCC (who process 95% of all credit derivates globally) to experiment with a blockchain-based system of trading credit derivates. https://offthechain.substack.com/p/the-dtccs-innovation-dilemma
19/ Speaking of ideas, @KyleSamani wrote a phenomenal piece on @LivepeerOrg’s unique token distribution strategy, arguing that it has significant potential to increase the equitability of token distro as compared to ICOs or airdrops. Good read with important implications. https://twitter.com/KyleSamani/status/1060917343092686848
22/ On the topic of Bitcoin, I would be remiss if I didn’t point out that this week saw the one year anniversary of the defeat of Segwit2x - perhaps the most important community struggle for the identity of Bitcoin in the protocol’s 10 year history. https://twitter.com/real_vijay/status/1060628388874874880
23/ Interestingly, as that anniversary rolls around, the BCash community that forked away from Bitcoin last year over incompatible visions for prioritization is itself in the grips of a civil war. It is…not without intrigue. https://twitter.com/jihanwu/status/1060740771723137024
25/ Meanwhile, as BCash’s payment-centric vision for Bitcoin is increasingly troubled, @saifedean reaffirmed the argument that Bitcoin’s most important initial role is as an international settlement layer solving for problems of currency devaluation and hyperinflation. https://www.spectator.co.uk/2018/11/the-problem-bitcoin-solves/
26/ While we’re on the topic of “problems Bitcoin solves,” a quick check in with Venezuela suggests that crypto continues to grow in significance in the countries volatile economy. The latest numbers suggest that citizens traded more BTC than ever last month https://bitcoinist.com/venezuela-record-bitcoin-october/
30/ For you history geeks, and inspired by threads from @muneeb and @ali01, here’s a quick little thread making the analogy between the 19th century competition between St. Louis and Chicago to be the lynchpin of Midwestern commerce and today’s crypto protocol wars. https://twitter.com/nlw/status/1061601110975234050
32/ And there we have it! 20 LRS down, ??? more to go!