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Citizen Daily Brief

Solana Strikes Back ($)

Weekly recap: Chapter Two pre-orders, BTC eclipses Silver
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Jan 20, 20247 min read
Solana Strikes Back
Published on Jan 20, 2023
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Sponsor: Toku — Make token grant administration simple.

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THIS WEEK IN MARKETS
Stocks Rip, Crypto Dips

📊 Decoupled fortunes. January has been a slog for crypto bulls, but traditional stock indices are marching to new highs! Why have trad markets decoupled?

Prices as of 10am ET 24hr 7d
Crypto $1.63T ↗ 0.9% ↘ 3.5%
BTC $41,501 ↗ 1.5% ↘ 3.4%
ETH $2,462 ↘ 0.3% ↘ 3.4%
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WEEKLY RECAP
Solana Strikes Back

1️⃣ Solana Mobile Strikes Back

Solana Mobile has announced pre-orders for their second device, Chapter Two, set for delivery in 2025 and priced at $450 instead of $599 (a reduction from its initial $1000 launch).

Buying the original Saga actually turned into a profitable venture for its holders, thanks to airdrops like BONK, WIF, and Sagamonkees. If you take the BONK airdrop alone ($1025 at its all-time high), the $599 would have yielded you a 58% return — a strong draw to add your name to the list for Chapter Two.

Playing further into this dynamic, Solana has introduced a referral system for this second phone that rewards participants with ecosystem rewards from partners like Tensor, Phantom, Solflare, DRiP, and Backpack Wallet. Even with all of these perks, there's skepticism over the long lead time, with some anticipating it will never reach production – Solana says it will reimburse all users in that case.

2️⃣ Blast's Big Bang

Ponzinomics meets Shark Tank. Blur’s L2, Blast, launched their testnet this week by announcing the Big Bang Competition.

Blast is leveraging the $1.3 billion already deposited by over 100k users as incentives, hoping to attract dapps building in 8 categories to their testnet. Winners, decided by 12 judges, will be announced via livestream on Feb 20 and actively promoted to Blast users come mainnet launch in late Feb. Additionally, winners will have access to office hours with people like founder Pacman himself, score introductions to investors, and receive part of the 50% of Blast’s airdrop specifically reserved for developers.

Interested in participating?

  1. Register here for the Blast Builders Slack before Feb 16
  2. Submit your project by Feb 16 in the form of a 3-minute video.

Simple as that! Also, Blast has made a point of stressing that projects of all stages are welcome and that early-stage and late-stage projects will be judged by separate criteria.

3️⃣ Revoke, Revoke, Revoke

On Tuesday, cross-chain bridge Bungee powered by Socket was hit with an exploit, resulting in a total loss of $3.3M. The hack came by way of active token allowances — think of it as a backdoor left open — that let the crook siphon out all approved tokens from people’s wallets when they accessed the smart contract.

Socket responded quickly, pausing the compromised contracts to prevent further draining of wallets. Sadly, this event continues to underscore the importance of security and wallet hygiene in Web3. The attack could have been prevented by simply revoking token approvals, a precaution we walk through in our explainer on Revoke Cash.

We strongly recommend you take the two minutes needed to read it because what good are gains if they aren’t locked in? 

4️⃣ Bitcoin Blows Past Silver

Right out of the gate, Bitcoin ETFs eclipsed silver in the ETF market, replacing it in second place to trail only behind gold among commodities.

Thanks to Grayscale Bitcoin Trust's transformation into an ETF, nearly $30 billion has flowed into Bitcoin ETFs, dwarfing silver ETFs' $11 billion. That being said, gold, the traditional safe-haven asset, remains the top dog with about $95 billion. Further, since Jan 12, Grayscale has unloaded over $2.3 billion — selling pressure to which many attribute the carnage in the market this week.

Nevertheless, the launch of the Bitcoin ETFs remains a remarkable success. As of Jan 16, the new funds had traded $10b in volume. This compares to the $450m, the collective amount traded by all ETFs that launched in 2023 on that day. This proves important to remember as we enter into a potential lull in the market. These numbers, coupled with BTC ETFs surpassing silver ETFs, affirm the launches were a resounding success. At this rate, who knows, it might not be long before gold’s digital twin boots it from the throne. 

5️⃣ SEC Slows ETH ETF

In classic Gary behavior, the SEC announced yesterday they want to slow things down a bit on Fidelity's proposal for an Ethereum ETF and delayed a decision on its approval until Mar 5. This chill pill approach was expected, said ETF expert James Seyffart, who thinks, while the decision has only been delayed til March, the real action will begin in late May. 

The Ethereum ETF story officially kicked off last November when Fidelity announced they intended to launch the Fidelity Ethereum Fund. They're making a strong case, too, citing last year's court ruling determining the SEC had failed to provide any logical reason why it should reject spot ETFs when it had already allowed futures-based ones – Ethereum Future ETFs went live last October.

Remember, though Fidelity isn't alone in this race, BlackRock has tossed its hat in the ring with Larry Fink stating on CNBC that he sees the value in having an Ethereum ETF. Just another step in his plan to tokenize the world.


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EARLY ACCESS
DeSci w/ Brian Armstrong

Science is a consensus technology. So is crypto. How can we use crypto to fix science?

We have Brian Armstrong on today to talk about this alongside scientist Patrick Joyce. In this episode, we explore the history of science, the pitfalls of TradFi, and how we can use crypto technology to build better incentive mechanisms for a more enlightened future.

Bankless Citizens get Early Access to our Monday podcast and an exclusive Debrief from David & Ryan unpacking the interview👇

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GET CAUGHT UP
What We Published

📰 Articles:

Is the Ethereum ETF Happening? on Bankless
Ethereum bulls want their own spot ETF... will they get it?
5 Investments to Double Down on Ethereum on Bankless
Bet on Ethereum’s vision with these five trending adjacent opportunities
Protect Your Wallets with Revoke Cash on Bankless
Good wallet hygiene can help you avoid onchain disaster
Getting Started with ether.fi Staking on Bankless
Sidestep EigenLayer deposit caps with ether.fi

📺 Shows:

ROLLUP: Bitcoin ETF Updates | Larry Fink Crypto Pilled | Ethereum Roadmap | Airdrops Incoming on Bankless
Bankless Weekly Rollup 3rd Week of January, 2024
Why We’re Bullish L2s on Bankless
Our long-term thesis
205 - The State Of Ethereum L2s on Bankless
We’re thrilled to be joined today by Paradigm CTO, Georgios Konstantopoulos and founder of Conduit, Andrew Huang who are on the show today to deliver a masterclass on the state of Ethereum Layer 2s, how they’re going, and where they’re headed.

Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here.

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