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Long Reads Sunday - Issue #39

I'm here in Florida introducing the baby to her great grandparents, so no intro this week! Back to ou
Long Reads Sunday - Issue #39
By Nathaniel Whittemore • Issue #39 • View online
I’m here in Florida introducing the baby to her great grandparents, so no intro this week! Back to our regularly scheduled LRSing next week.
Long Reads Sunday #39. Another week of nonstop crypto action. We’ve got initial exchange offerings, fear and loathing at the Fed, pumped up kicks volume, and more bounce than the Cuban (Junior) National Twerk Team. Strap ya seatbelts it’s long reads time! 
2/ Crypto no gracias? The more time passes, the more world governments are going to firmly position themselves as for or against crypto. The latest to join the against team is Mexico. @CoinCenter has the write up on regulation that would effectively ban exchanges.
3/ Head East, Young Man. The situation couldn’t be more different across the world, however. @arjunblj reports on the raw energy he saw coming out of the community attending Token2049 in Hong Kong.
4/ #NarrativeWatch: Initial Exchange Offerings. @TheBlock__’s @Lawmaster was also in Hong Kong and wrote about the emergent phenomena of exchange offerings, which he argues is about bootstrapping interest in the projects.
5/ IEO-Not-So-Fast. @DoveyWan flags this communique from the Beijing Internet Finance Association suggesting that these IEO’s are illegal, and argues that this sort of proxy communication can act as an early warning.
6/ Beijing wasn’t the only place that exchange practices found themselves in hot water this week. @TheTIEIO released the results of their trading volume investigation which found some seriously suspicious results.
7/ These findings were echoed by @BitwiseInvest, who analyzed all 81 exchanges reporting more than $1m in BTC volume as part of an ETF presentation to the SEC and found that a whopping 95% of reported volume isn’t real.
8/ Speaking of the SEC, @katherineykwu spots some renewed discussion around custody rules, which take on a whole different life in the context of digital assets. Great primer on an important topic.  
9/ Fear and loathing at the Fed. For many, the most interesting macro context at the moment has to do with monetary policy, and the economic and political games being played around US central banking. @raynesteinberg explains.
10/ Another fascinating dimension of the current monetary policy discussion in the US is the emergence of Modern Monetary Theory or MMT. @AriDavidPaul connects the dots between Bitcoin and MMT arguing that they’re both reactions to the “grand experiment in unbacked fiat”
11/ With such ideological competition, it’s not hard to get to a piece like this fun little essay from @kaykurokawa: “Bitcoin Is a Cult, Fiat Is a Religion.” H/t @hasufl for surfacing this one.
12/ If money is a religion, then one of the tenets of the Bitcoin faith is to “be your own bank.” The question is, of course, whether most people *want* this responsibility. @iam_preethi and I did a live debate/discussion this earlier this week.
13/ Speaking of Banks, on the latest @WGMGpodcast, @Melt_Dem and @_jillruth argue that crypto winter is actually an Ice Age that is giving way to deeper interoperability between new and legacy financial systems
14/ One major question of the new crypto-powered financial system is which asset (or assets) have the ability to become a store of value. While Bitcoin tends to dominate the SoV narrative, @JamesSpediacci breaks the “taboo” on talking Ethereum price and argues for ETH’s path to SoV
15/ On the topic of Ethereum, one of the critical conversations has to do with the transition from ETH 1.0 to Eth2.0. If you’re trying to wrap your head around what 2.0 means, you can do a lot worse than this thread from @ljxie
16/ One more fascinating discussion from the Ethereum community has to do with developer incentives and ERC 1789, an EIP from @owocki that would dedicate 20% of issuance rewards to open source maintainers.
17/ Debates around the right way to incentivize an open source community will continue to get louder. In the meanwhile, @jack announced a formal commitment to contribute to the Bitcoin community and introduced @SqCrypto. Phenomenal stuff.
18/ Also in the Bitcoin realm, this Medium essay looks at Bitcoin market dominance but weighted for liquidity and volume. The result, “Volume-Weighted Cap” suggests a much higher portion of the total market cap of crypto belongs to BTC than CMC’s Market Dominance
19/ Our tool box for measuring and valuing cryptoassets continues to grow. In this thread, @danzuller summarizes some recent thinking from traditional valuation experts applying their discipline to the crypto sphere.
20/ Much of our conversation about valuation relates to value capture, and to date, most of the discussion around value capture relates to layer 1 and layer 2. In this essay, @obstropolos looks at value capture at Layer 3 applications such as Veil.
21/ The truth is that our understanding of how to value assets is an iterative process. To keep track of all of the thinking on this topic, check out this excellent new resource “Valuation Depot” from @Ikigai_fund
22/ Speaking of @Ikigai_fund, big news this week for them as @APompliano @MarkYusko @JWilliamsFstmed & the Morgan Creek Digital announced their lead investment in the fund. One to watch, for sure.
23/ The opportunities for active management are getting more and more interesting as bigger swaths of the DeFi/Open Finance landscape come online. To start wrapping your head around all the advancements in this area, check out @Delphi_Digital’s just released landscape
24/ On the other hand, if you want to dive deep on the asset that has been leading the DeFi charge, check out @Rewkang’s thread on Maker valuation and value accrual.
25/ One more on the DeFi front. @lex_node published this fascinating thread about the potential regulatory issues with algorithmic stablecoins
26/ As we round the corner on another LRS, let’s zoom out and think big for just a minute. In that spirit, @OVioHQ recently published an update to their investment thesis that they’re calling the Convergence Stack.
27/ From a systemic thinking perspective, doesn’t get much bigger than the conversations at @RadxChange. @RhysLindmark has been documenting in this ongoing thread, and @VitalikButerin is set to keynote today. Interesting to see the overlap between this and the crypto community.
28/ In case you’re not clear about how global the Bitcoin & crypto phenomena is, check out the list of countries the #LNTrustChain has passed through. 27 jumps left; where will it go next?
29/ A little personal shill, I’ll be speaking at @EtherealSummit in NYC in May. I think it’s going to be a live look in on the most important narrative battles in the space. If you do want to attend, you can use the code NLWETHEREAL for 15% off the price.
30/ Lastly, congrats @wheatpond for joining the crypto parents club!
31/ And there we have it, another LRS wrapped. As always, tell me what you loved and what I missed. To get LRS via email, sign up here:


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Nathaniel Whittemore

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