Welcome back Chain reaction.
Last week, we looked at a crossover episode to invest in the meme. This week, we’re talking about Musk selling tokens while keeping the others.
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A weekly dispatch from the crypto editor’s desk TechCrunch Lucas Matney:
Elon Musk shared that Tesla sold some Bitcoin this week. To be fair, they sold a lot of Bitcoin… tens of thousands of dong.
And while Tesla’s announcement last year that it was buying Bitcoin sent the price to the moon, Wednesday’s disclosure that it sold 75% of its Bitcoin reserves in Q2 didn’t have a huge impact on the market. The crypto market is already in decline this week with BTC prices pumping and Ethereum surging even higher (albeit still a lot lower than it was a few months ago).
At the end of the day, Tesla is one of the top Bitcoin owners and Elon Musk was, at least for a while, the coin’s top hype billionaire. His shares in crypto appear to be falling, Crypto Twitter was saddened by the announcement with some noting that crypto holders should join short sellers of the maker’s stock. produce electric cars.
Hidden within this revelation that the company has sold off nearly $1 billion worth of Bitcoin is a small admission from Musk that Tesla is holding Dogecoin and has not sold any of it. What is not clear from this statement is how much Dogecoin Tesla actually owns. Musk wrote on Twitter that he owns it and that Tesla has been accepting payments in Dogecoin for goods on its website for months, but it did not disclose any crypto purchases.
I tried do some napkin math on how many Dogecoins the company can hold this week:
The company revealed that it now owns $218 million worth of digital assets after selling $963 million worth of Bitcoin. Much of that $218 million could be its remaining Bitcoin.
Tesla reported about 42,000 Bitcoins in preparation for the second quarter, so after selling 75% of that, it should have around 10,500 by the end of the quarter. Now, to determine exactly how much of the total Bitcoin is holding, we must know the exact moment of the snapshot. It is assumed to be around the last day of June when fiscal Q2 ends, so 1 Bitcoin will trade between $18,750 and $20,300 for the whole day, at 10,500 coins. meaning about $197 million to $213 million in total “its digital assets” will be in Bitcoin.
Ultimately, Musk’s assertion that Tesla is holding onto his Dogecoin is probably to maintain the good interest of that Twitter community, especially at a time when his Twitter dealings have led him to become more popular with retail investors.
Chain Reaction has received a lot of negative news over the past month as token prices fell and web3 companies suffered as a result. The pain is far from over, but the crypto price has seen a pretty substantial recovery over the past week, with ETH up 45% from the previous week. Lucas and Anita talked about what may have fueled the growth, though they also had to talk about the much more unfortunate news of layoffs at OpenSea.
Both co-hosts have been hard at work over the past week on two separate featured articles related to current crypto news, so they unpacked those in the show. Anita talked about her piece on increasing competition among crypto exchanges for the US market (and which one is more likely to win), while Lucas shared my thoughts on Yuga Labs’ much-hyped Otherside metaverse video game as one of its early players.
according to money
Where startup money is moving in the crypto world:
- Launch the cryptographic developer tool Sunscreen raised $4.65 million in a seed fund led by Polychain.
- opticsan AI-based NFT validator, raised $11 million in a seed round led by Kleiner Perkins and Pantera.
- Zebedee raised $35 million in a Series B round led by Kingsway Capital to develop Bitcoin-based game payouts.
- Kickstarting blockchain network security Halborn raised $90 million Series A led by Summit Partners.
- UnCaged Studios raised $24 million from investors including Griffin Gaming Partners and 6th Man Ventures to build crypto games.
- NFT . Brand Loyalty Platform Cave banked $16 million in new Series A funding led by crypto venture firm Paradigm.
- Peer-to-peer wallet messaging app Current raised a $4 million seed round from investors including Elad Gil and Scalar Capital.
- Cryptocurrency company treasury company cat closed a $22 million Series A led by Tiger Global.
- Data infrastructure provider Network of experience raised $7 million for its seed round from investors including Variant and Alameda Research.
- Web3 Security Auditor Security3 $5 million seed fundraiser led by Mirana Ventures.
of the week on web3
Weekly window of web reporter thoughts Anita Ramaswamy:
More than a few times recently, I’ve heard crypto insiders say that a bear market separates the good companies from the bad ones. Former SEC Chairman Jay Clayton spoke more directly about it at Bloomberg’s crypto summit on Tuesday, says that regulators should give their top priority to the “junk” going on in web3.
Clayton was referring to the 2017 ICO boom when describing the aforementioned trash, a time when all sorts of stock fraud and rampant fraud were taking place in crypto. I can’t help but wonder… has crypto made any significant progress since then in enhancing its reputation as a haven for the bad guys?
To U.S. lawmakers, the answer seems to be “yes,” perhaps because they don’t like to stifle what has proven to be a really big industry worth millions (or billions of dollars). dollars in a strong market). So despite their slowness, they finally showed up around. Specifically, US Senators Cynthia Lummis and Kirsten Gillibrand proposed a bipartisan cryptocurrency bill last month. The pair appeared at the Bloomberg summit to share an update on the bill’s status since it was introduced. Gillibrand shared that while some provisions appear to be set to proceed, the entire legislation is likely to be deferred to next year.
However, there are two provisions in the bill that Gillibrand predicts could get consensus much sooner than the rest. The first is a set of rules for banks that want to issue stablecoins – understandably that’s an area of particular interest to lawmakers after Terra failed. The second is part of a bill that would make the CFTC a key regulator of cryptocurrency oversight, which she said is currently being finalized on the committee. Congress will be able to vote on that provision at the end of the year, she noted.
While U.S. lawmakers and regulators will likely always try to knock crypto out because they don’t want to be seen as disruptive innovation, the new bill seems to be on the right track, faster. many people expect. 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 regulatory response that’s quicker and more intense than most in web3 can imagine just a few days. last month when the market was in better precipices.
TC + analysis
Here are some of this week’s crypto analysis available on our TC+ subscription service from our senior reporter Jacquelyn Melinek:
Regulators should tackle crypto ‘junk’ first, says former SEC Chairman Clayton
As the cryptocurrency industry continues to evolve, regulators around the world are looking for regulatory and operational frameworks to guide their actions for more effective industry supervision. While there are a large number of responsible players in the industry, there are also irresponsible ones, former US SEC chairman Jay Clayton said during the Bloomberg Crypto Summit on Tuesday. “And regulators have to respond to garbage first. It’s work. “
NFTs have the potential to be media companies, says Rarible co-founder
As NFTs work to gain community attention, one founder predicts the digital asset sector will turn in a new direction. “I think NFT collections will grow as media companies [into something] like Disney,” Alex Salnikov, co-founder and head of product for NFT marketplace Rarible, told TechCrunch. In recent months, major “blue-chip” NFT projects such as Bored Ape Yacht Club (BAYC) and Doodles have pushed their collections beyond visuals and into different realms, here could be the starting point for the expansion of NFT into the mainstream, Salnikov said.
Some venture capitalists are doubling down on crypto despite unspecified recovery timeline
The crypto markets may be red, but that doesn’t stop many venture capitalists from investing in the space. Short-term crypto market participants — aka tourists — are “going home,” Craig Burel, partner at crypto-focused firm Reciprocal Ventures, jokingly told TechCrunch. . But some VC firms are seeing this space as a huge opportunity, although it may not have measurable traction for a number of years.
MetaMask co-founder sees a developer-led future for his crypto wallet
Six years ago, MetaMask was founded and today it is the largest unattended 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 thinks we’ll work on it in a few weeks; I was thinking it would be a few months. Apparently pretty quickly that wasn’t the case. Now, the team is testing a hands-on approach to “be less obstinate” and keep users away.
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