The Dogefather sends his regards – TechCrunch
Welcome back to Chain reaction.
Last week, we looked at a crossover episode for meme investing. This week, we’re talking about Musk dumping chips while holding others.
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A weekly dispatch from the office of crypto editor TechCrunch Lucas Matney:
Elon Musk shared that Tesla sold Bitcoin this week. Well, to be fair, they sold an awful lot of Bitcoin…tens of thousands of coins.
And while Tesla’s announcement last year that they were buying Bitcoin sent prices to the moon, Wednesday’s revelation that they sold 75% of their Bitcoin reserves in the second quarter didn’t have a big impact. drastic impact on the crypto market, which has been in tears this week with BTC prices surging and Ethereum shooting even higher (though still well below prices from a few months ago).
Ultimately, Tesla was one of Bitcoin’s top holding companies and Elon Musk was, for a time at least, the currency’s top billionaire. Its stock in crypto circles appears to be falling; crypto Twitter was widely upset by the announcement, with some noting that crypto holders are expected to join those shorting the electric car maker’s stock.
Hidden inside that disclosure that the company had offloaded nearly $1 billion worth of Bitcoin was a small admission from Musk that Tesla was holding Dogecoin and not selling any of it. What was unclear in this statement was how much Dogecoin Tesla actually owns. Musk wrote on Twitter that he owned it, and Tesla has been accepting Dogecoin payments for goods on its site for months, but they haven’t disclosed any purchases of the cryptocurrency.
I tried to do some napkin math on how much Dogecoin the company might hold this week:
The company revealed that it currently has $218 million in digital assets after selling $963 million worth of Bitcoin. Most of that $218 million is likely his remaining Bitcoin.
Tesla would have had around 42,000 Bitcoin heading into Q2, so after selling 75% of it, it should have had around 10,500 by the end of the quarter. Now, to determine exactly how much of this total holding is Bitcoin, we would need to know exactly when the snapshot was taken. It was supposedly taken on the last day of June at the end of the second fiscal quarter, so 1 Bitcoin would have traded between $18,750 and $20,300 throughout the day, which at 10,500 coins would mean that approximately $197-213 million of its total “digital assets” would be in Bitcoin.
Ultimately, Musk’s assertion that Tesla was holding on to his Dogecoin was probably more to stay in the good books of this Twitter community than anything else, especially at a time when his Twitter dealings undermined his popularity with consumers. retail investors.
the last module
Chain Reaction has recapped a lot of negative news over the past month as token prices took a beating and Web3 businesses suffered. The pain is far from over, but crypto prices have seen a fairly substantial recovery in the past week, with ETH up 45% week-over-week. Lucas and Anita talked about what could have led to the upside, although they also had to talk about the much more unfortunate news of the layoffs at OpenSea.
The two co-hosts have been hard at work over the past week on two separate feature articles related to current crypto news, so they unpacked those for the show. Anita talked about her post about the increasing competition between crypto exchanges for the US market (and who’s most likely to win), while Lucas shared his thoughts on Yuga Labs’ much-hyped Otherside metaverse video game. as one of its very first players.
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follow the money
Where startup money is moving in the crypto world:
- Crypto development tools startup Sunscreen has raised $4.65 million in seed funding led by Polychain.
- Optic, an AI-powered NFT authenticator, raised $11 million in a funding round led by Kleiner Perkins and Pantera.
- Zebedee has raised $35 million in a Series B round led by Kingsway Capital to develop Bitcoin-based game payments.
- Blockchain cybersecurity startup Halborn has raised a $90 million Series A round led by Summit Partners.
- UnCaged Studios has raised $24 million from investors including Griffin Gaming Partners and 6th Man Ventures to build crypto games.
- Brand loyalty platform NFT Hang has raised $16 million in new Series A funding led by venture capital firm Paradigm.
- Peer-to-peer wallet messaging app Lines has raised a $4 million seed round from investors including Elad Gil and Scalar Capital.
- Corporate treasury firm Crypto Meow has closed a $22 million Series A led by Tiger Global.
- Data infrastructure provider Empiric Network has raised $7 million for its seed round from investors including Variant and Alameda Research.
- Web3 security auditor Secure3 has raised a $5 million funding round led by Mirana Ventures.
the week in web3
A weekly window into the web3 journalist’s thoughts Anita Ramaswamy:
More than once recently I have heard people in the crypto space say that a bear market will separate good companies from bad ones. Former SEC Chairman Jay Clayton explained this more directly at Bloomberg’s Crypto Summit on Tuesday, saying regulators should make responding to the “garbage” happening on Web3 their top priority.
Clayton invoked the ICO boom of 2017 when describing the aforementioned rubbish, a time when all sorts of rampant stock market scams and frauds were going on within crypto. I couldn’t help but wonder… has crypto made any material progress since then in improving its reputation as a haven for miscreants?
For US lawmakers, the answer appears to be “yes,” perhaps because they hate to stifle what has proven to be a substantially large industry worth millions (or billions in a strong market) of dollars. So, despite their slowness, they finally come back. Specifically, US Senators Cynthia Lummis and Kirsten Gillibrand proposed a bipartisan crypto bill last month that has been on everyone’s lips. The pair made an appearance atop Bloomberg to share updates on the bill’s status since its introduction. Gillibrand shared that while some provisions look set to go forward, the full legislation will likely be delayed until next year.
Still, there are two provisions in the bill that Gillibrand could garner consensus much sooner than the others. The first is a set of rules for banks looking to issue stablecoins – understandably these are an area of particular concern for lawmakers after the Terra fiasco. The second is the part of the bill that would make the CFTC the primary crypto regulator, which it says is currently being finalized in committee. Congress can vote on the provision by the end of the year, she noted.
While US lawmakers and regulators will likely always drag their feet on cracking down on crypto because they don’t want to be seen as a stifling innovation, the new bill appears to be moving ahead, faster than expected. It’s not exactly a sudden shift from 0 to 100, but it’s very possible that the US is on the verge of a faster and furrier regulatory response than most Web3 users could imagine. just a few months ago, when the markets were in better shape.
Here are some of the crypto scans from this week available on our Senior Journalist’s TC+ subscription service Jacquelyn Melinek:
Regulators Should Tackling Crypto ‘Trash’ First, Says Former SEC Chairman Clayton
As the crypto industry continues to grow, regulators around the world are looking for operational and legal frameworks to guide their actions to more effectively oversee the industry. While there are a “considerable number of responsible players in the industry,” there are also irresponsible ones, former US SEC Chairman Jay Clayton said at the Bloomberg Crypto Summit on Tuesday. “And regulators have to respond to the garbage first. That’s the job.
NFTs have potential to become media companies, says Rarible co-founder
As NFTs struggle to capture mainstream attention, one founder predicts the digital asset industry will pivot in a new direction. “I think NFT collections will evolve as media companies [into something] like Disney,” Alex Salnikov, co-founder and chief product officer at NFT marketplace Rarible, told TechCrunch. Over the past few months, big “blue chip” NFT projects like Bored Ape Yacht Club (BAYC) and Doodles have taken their collections beyond images and into different industries, which could be the start of what lies ahead. expansion of NFT into the mainstream, Salnikov said.
Some Venture Capitalists Double Down on Crypto Despite Unknown Recovery Timeline
Crypto markets may be red everywhere, but that’s not stopping many venture capitalists from investing in the space. People who briefly entered the crypto market — aka tourists — are “already going home,” Craig Burel, partner at crypto firm Reciprocal Ventures, joked to TechCrunch. But a number of venture capital firms see the space as a huge opportunity, although there may not be measurable traction for several years.
MetaMask co-founder sees developer-led future for his crypto wallet
Six years ago MetaMask was founded and today it is the largest non-custodial crypto wallet. But that wasn’t always the plan, co-founder Dan Finlay told TechCrunch. “We thought it was going to be a quick in and out thing. Aaron thought we would work there for a few weeks; I thought it would be a few months. It became clear fairly quickly that this was not the case. Now the team is testing a hands-off approach to being “less opinionated” and moving away from users.
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