This week was exactly why I started LRS - an endless barrage of news on top of dozens of brilliant threads and essays.
There was, of course, SEC action
against two ICOs and the follow up “plain English Guidance” (which some noticed was (perhaps purposefully
There was a lot of talk about crypto metrics, including from Nomics’ Clay Collins and I, who wrote a long piece
about the flaws of “market cap” and emerging alternatives. Others critiqued transaction count
or fake exchange volume
, or highlighted new thinking
around the rational utility value of networks.
Happy Long Reads.
1/ Long Reads Sunday #21. What an absurdly brilliant week. Featuring: +The End Of ICOs? +The Return Of Volatility +Hashwar +Metrics Meltdown +Essays on: generalized mining, surveillance capitalism, digital identity panopticons, + The best crypto Twitter debate ever?
6/ @jchervinsky argues that the lack of clarity is an intentional strategy, and that the real game is “guidance by enforcement.” In fact, Jake argues that we’ve left the Phase 1 guidance phase and are in for a long slog of SEC cleanup, one settlement at a time https://twitter.com/jchervinsky/status/1063662992359915525
8/ One random media note surrounding the Hashwar…at one point, more than 4,000 people were concurrently watching a live conversation with 8+ prominent Bitcoiners. Livestreaming is going to be the crypto industry’s native version of cable TV news https://twitter.com/theonevortex/status/1063096663047233536
12/ Complete with understated headline, meanwhile, @Melt_Dem puts the action in the larger market context across the course of not only this year, but where in the phase of development of the emergent industry we are. TL;DR. It’s early and value flows are anything but clear. https://twitter.com/Melt_Dem/status/1063181162464591873
14/ Family Office investor @DavidJN79 also wrote about the challenge for crypto hedge funds, arguing that 90% are destined to fail: "The resulting flood of money, like it did in traditional hedge funds, created demand for which there is no natural supply — managers who deliver repeatable, above-the-market returns after fees.” https://medium.com/@david_55389/why-90-of-crypto-funds-will-fail-936fbb306c06
17/ @Coindesk this week released a new way to visualize and compare an array of different metrics across assets. While there was some insta-blowback, I think it’s important to differentiate critique of CD’s implementation versus a broader recognition that most of the metrics we use are game-able trash https://twitter.com/pete_rizzo_/status/1062785760624041986
20/ That said, @cburniske also highlighted @HASHCIB work to define a rational utility value for crypto networks. This is another example of something @ClayCollins and I saw while researching the market cap piece - the rate of innovation in valuation/metric thinking is incredibly promising https://twitter.com/cburniske/status/1063857966028374017
21/ Of course, valuation metrics aren’t the only area where crypto is still grasping to catch up with itself. One of the most shared and most valuable essays this week came from @iam_preethi. You’re just 27 minutes away from a real understanding of distributed consensus. https://twitter.com/iam_preethi/status/1062367003149660161
22/ "Generalized Mining” - the set of participatory network building activities around a cryptoasset - has been one of the most discussed topics in crypto lately. In this post, @CambrialCapital dives into the key question which of these activities are and aren’t appropriate for crypto funds to engage in https://tokeneconomy.co/generalized-mining-the-lps-perspective-f5dcbd0ed4e0
23/ Another phenomenal post published on Token Economy was @Felipether’s “Visions of Ethereum,” a historical treatment of how the Ethereum narrative has evolved over time in the spirit of @nic__carter and @hasufl’s “Visions of Bitcoin” https://twitter.com/Felipether/status/1063468544749387777
27/ A post from @martyBent meanwhile kicked off a sprawling, multi-day conversation with @AriDavidPaul and @MustStopMurad at the center of it discussing the real impacts of inflation, Cantillon effects, and so much more. Crypto Twitter at it’s absolute finest: https://twitter.com/MustStopMurad/status/1061335263945863168
33/ Personalizing the macro context @ljxie shared this story about how her parents came to understand the value of cryptocurrencies in the context of real problems of currency controls & potentials for asset seizure https://twitter.com/ljxie/status/1064070245487235072
35/ This week was the epitome of why I started Long Reads Sunday. In the long run, the news will fade. The strength of crypto is in the people who pour their hearts and minds into big ideas and big opportunities each week.