All Been Crypto — Week 3 Sep 2022
An overall unexciting week we are closing relatively flat with BTC -2% and ETH +2% and market cap ~1tn. Narrative has shifted again towards macro with employment data coming in stronger than expected and all eyes now on CPI ahead of the September FED meeting. Big underperformer this week was AVAX dropped below 18 at some point before recovering but overall still down -9% WoW after the allegations around Roche Freedman litigation tactics broke. On the flipside we had LIDO +15% as the merge approaches and MATIC after OpenSea announced support. In other news we had Crypto.com pulling out of a rumored deal with UEFA, Michael Saylor being sued by DC district court for tax evasion and the debate at Maker on the future of DAI continuing. Enjoy reading!
Bat Tai Chi — firstname.lastname@example.org
Ava Labs accusations around Roche Freedman Lawyers
On the 26th Aug Cryptoleaks released a ‘whistleblower’ report and a number of hidden camera videos that allegedly show Kyle Roche the founding partner of famous law firm Roche Freedman to claim that he received AVAX tokens and Ava Labs stock as part of a secret arrangement to help the project. In essence it was said that he received around 1% of tokens for attacking other competitor projects and keeping regulators busy and thereby off the back from AVAX. Wild accusations indeed and it has sparked a debate on twitter over the last weekend and resulted in Ava Labs founder and CEO Emin Gün Sirer to speak out on Twitter calling the accusations ridiculous. Indeed it would be a very short sighted game to file lawsuits against competitors for actions and business operations that are very similar to ones own. But the fact that Ava Labs and Roche are very close can not be denied. Avalanche was pitching its first ILO as early as December 2020 and citing Roche Cyrulnik Freedman LLP as the legal eagles leading the charge. Irrespective of how much here being true or not it casts light on dirty practices in our industry (either the true law suits or fabricating false claims of such) which certainly doesn’t help. And we also saw reactions regardless. Kyle Roche himself withdrew from a number of cases brought against Bitfinex, Tether, DigFinex and others (court document) and now players are actually are asking court to terminate Roche Freedman from class action suits as well. Coincidentally this week we also learned about a group of other high flying crypto lawyers to change ships moving under a new umbrella law firm. Bear market certainly brings out more of the nasty side of many and there is now doubt we will have an ongoing lay of legal battles over the coming months if not years.
Maker DAO discussing DAI depegging
Founder of Maker DAO Rune Christensen has been sparking a debate about the future of DAI for a few weeks now. But the events around Tornado Cash and USDC freezing probably steered the emotions high. The fundamental question is how to collateralize a decentralized stablecoin. To remind everyone DAI started out with just ETH as collateral then moved towards multi collateral which ended up being majority of stable coins and so de-facto at the mercy of Circle anyways. Then more only a couple of weeks back the DAO voted to buy real world assets and put Treasuries and Corporate Loans on the book. Now Rune wants to go back to the roots and reduce centralized attack vectors by suggesting to let DAI float free in his Endgame Plan. It’s a struggle between the Futurists who want to keep DAI decentralized and the centralists who want to increase real world assets and focus on growth and profitability. A good thread here from Greg Di Prisco. Closely watching this debate as Maker obviously is one of the oldest crypto protocols and will be seen by many as a leader in either direction. Undoubtedly you know which side I prefer but in case you worry Curve also hinted that their stable coin launch is around the corner. So there will be competition which is always good.
Crypto.com ditching UEFA
Crypto.com was said to take Gazprom 500mm 5 year sponsorship deal which however had nothing to do with the ongoing bear market — according to the report. They had spent 700mm for the Staples Arena and its much-memed “Fortune Favors the Brave” advertisement with Matt Damon last year. But they are also suing a woman after sending her $10 million by accident. The transfer happen in May 2021 and didn’t get noticed until Dec 2021…And then of course Crypto.com has been letting go people with a first round back in June and a larger, second round of layoffs this month. So it might also be that the marketing budget indeed is running a bit tight these days. It’s a bear market after all in case you haven’t realized.
NEW: Today, we’re suing Michael Saylor — a billionaire tech executive who has lived in the District for more than a decade but has never paid any DC income taxes — for tax fraud.
DC Attorney General Karl Racine
The allegations on this site are categorically false. Ava Labs believes in transparency and facing the world head-on, not through behind-the-scenes dealing or activity.
Emin Gün Sirer — Founder and CEO Ava Labs
MAS is therefore considering further measures to reduce consumer harm
The Monetary Authority of Singapore’s managing director Ravi Menon
It seems that to hedge against inflation all you had to do is short bitcoin