$ARB Airdrop | Banking Failure with SVB & Silvergate | Ethereum Shanghai Staking Withrawals

Transcript

arbitrim has finally announced the long-awaited airdrop is it Layer Two season are we finally here can we say that bankless Nation it is the third Friday of March David what time is it Ryan it's the Friday bankless weekly roll-up where we cover the entirely Weekly News in crypto which is always an ambitious Endeavor yet we persevere nonetheless into the frontier with an air drop this week the frontier has brought us an airdrop we found an airdrop big we got one one that was much anticipated guys we're going to tell you about the arbitrim airdrop it's happening and we've got all the details we're also going to talk about some of this Fallout from this little banking crisis it happened after we recorded the last

roll up and it's been going on until then so we'll talk about that now maybe the contagion has reached Europe David what else we covering uh the New York attorney says that ether is a security but should we even listen to them at all uh Gary says staking is also security-ish we have to listen to him a little bit more uh the cftc says hold up hold up so we'll talk about about all those details and then sad sad news out of D5 protocol Oiler it was a big hack 200 million dollar defy hack from a beloved bear Market uh building team so we'll cover those details and more make sure to like And subscribe write and review wherever you are listening to this whether you are listening to this on the podcast or on the YouTube hit

that like button hit that subscribe button and share it with your friends and family to help those who are not yet on their Bank list Journey go bankless speaking of going bankless David uh this is a question for everyone in the bankless nation who is listening right now are you a bankless citizen yet uh Dave and I told you about the release of our new website bankless.com last week I think we must have said it about 10 times we're trying to get it I'll get our quote of a dozen uh launched last Friday fantastic getting a lot of great feedback back from the community what the section I have open right now is our just for Citizens section so if you were listening you are not a citizen there is an option to upgrade and become a citizen right now one thing I'll draw

your attention to is something that drops at the time you're listening to this it should drop today that is our airdrop guide all right every month we issue an exclusive airdrop guide to all bankless citizens that contains some Alpha it's our best guesses on which air drops are happening next and they're still happening people people said the airdrops were dead not the case we just got probably our biggest airdrop of the year of the year of the last like I don't know the last long time yeah just happened this week and the airdrop guide has a whole bunch more I don't know there's uh a few dozen anyways and so if you missed out on

Arboretum or even if you got the arbitrim opportunity the there are more opportunities to unlock because as we always say David crypto pays you to learn about crypto you use some of these protocols you implement the strategies and you can be eligible for these in the future potentially these are just our guesses anyway Citizens Great yeah and you would definitely can't hear about it in the feedback inside of the uh inside of the bankless nation Discord like the bank list premium subscription is designed to pay for itself and this is just one of the many ways in which it does that here we go let's get to markets David uh the price of Bitcoin this week we up but we down uh we are very up 15 when's the last 15 green weed that you've seen in

Bitcoin we started to make it twenty one thousand six hundred and fifty and that was before we dumped so right when we this is this always happens Ryan we concluded the weekly roll-up last week right about here right right yeah right about there is when we record it and then that big red candle happened and then it went down even more and then it research all throughout that this last week so as we started the week at like 21 600 hit a low of below 20 000 which is not a number we want to be below and then as soon as this banking crisis resolved itself Sunday night Monday morning Bitcoin had a massive run a 20 to 25 run inside the half of a day or something look at this yeah between below 20 000 to uh almost twenty seven

thousand we are currently at twenty four thousand seven hundred dollars uh up 15 on the week from where we started at twenty one thousand so it's one of the most volatile weeks in crypto price action probably of the year uh ending the week positive in over the last seven days by up 15 so as a tradition I'm sure by the time you hear this we'll be down there yeah after that candle down like we need to just change the sections like all right bankless Nation please please follow up in your charts open your price tracker Checker that's the price of Bitcoin recite Bitcoin to yourself every time eat for yourself insert here how about youth price that tells a story though which is different than Bitcoin it's

also up as you'd expect but not up as much yeah each price starting the week at 15 30. uh it fell down to below fourteen hundred dollars uh moved up almost to eighteen hundred dollars and now is at sixteen hundred and sixty dollars so a one a very volatile week overall up eight and a half percent on the week uh Bitcoin almost doubled the appreciation of ether this week David can you believe that I listened to this chart this is the Bitcoin ratio and I'm wondering if you're a little salty about this all right look at this ratio man so so Bitcoin of course appreciated much faster than uh the price of ether this week and so that means the ratio goes down

six percent so it actually was like doing really really well we almost got up to point zero seven four we were down to 0.076 which is a huge move for the ratio there I mean we're used to Dollar move Bitcoin versus either versus the dollar but the ratio does not usually move much uh I haven't I don't remember the last time the ratio moved six percent but yeah down below 0.067 so we are touching the the lows of the recent times now look at this I'm learning to become a charter on Kraken Pro and I'm just zooming out cracking doing God work here yeah you've really helped um Kraken Pro of course bankless sponsor our favorite place to go chart and uh to exchange coins the only place that he chose the only place that he's been able

to it's great though we haven't seen these this lows in the East Bitcoin ratio since the three arrows Capital liquidation back in June and the reason why the ether price was so suppressed then was because ether's just used as the collateral of the internet just in defy and across even in Solana right and so when three hours Capital liquidated itself and many others uh ether had so much cell pressure and it bounced right back above that but now we we haven't seen Lowe's since then so okay well so this chart really tells a story I think this might be one of the the stories of the week why did Bitcoin appreciate so much relative to Ether it's not like some Catalyst event happened for Bitcoin it was this is all on the back of these these Bank runs and the resolution of

the bank runs but Bitcoin appreciated more it almost double um ether why yeah I think that's right I can only really explain it by the the banking crisis and I think the very simple take is that oh uh banking crises banks are collapsing good yeah right and whether or not this is New Capital who are like oh the banks are collapsing therefore I'm gonna warm up to Bitcoin now I don't know how much capital is saying is like coming to that conclusion the other take is like oh the traders of crypto are like oh other people are going to think that and therefore we're going to buy Bitcoin because people are going to think that oh Banks collapsing there for Bitcoin I think when something so big in the Trad

world that proves out crypto's use cases happens I think that's the simplest the simple take is like oh buy Bitcoin uh that's my that's my only explanation that's my only thing let me throw another take at you I don't know if this is later in the agenda but you know uh binance's Reserve fund their insurance form the fund the finance Insurance Fund that they've been stacking dollars in usually it's it's been denominated in stable coins CZ announced that binance is going to I don't know if they've begun this yet David but is going to rather than denominate this Insurance Fund if an exchanges hack or something goes wrong kind of the binance bailout fund is going he's going to move that from uh stable coins into Bitcoin and eth yeah and uh could that be and from running of that or could that be that

sort of activity I don't know I don't know I mean over over the long term if like we just bounce off of this low because like we we haven't broken down lows back down to the Thrills Capital liquidation levels if we just bounce back up then this will become noise yeah I don't no I don't know how to interpret this what are you doing are you still holding that ratio trading oh God yeah yeah oh I've held I've held the rate my ratio trade down way below this I've held it down to 0.05. you're not wearing I held it through the the three arrows Capital liquidation look by the way this you did your boy's not here for the short term narrative Traders are excited right now but David continues to hold uh how about the global crypto market cap how are we 1.125 trillion dollars wow up bigly we

almost fell below a trillion but we have not yeah so we're up about a hundred billion just on the week kind of nice casual talk about let's talk about uh CPI inflation gotta talk about the quote-unquote real economy that's not the real economy I guess the traditional economy the non-crypto economy uh inflation so the long-awaited U.S CPI numbers that is the consumer price index numbers came in what are they reading annual inflation down to six percent so recall over the summer we were at like nine percent eight or nine percent something like this and then CPI grew less the last month so that would be the month of um February then in January it grew less by 0.4 than February and less

by 0.5 in January so I my interpretation is that the core inflation is down and it's down a predicted amount not above or below that predicted amount is that the interpretation seems to be it seems to be kind of in line with what analysts expected maybe down a little bit more than analysts expected but like nothing surprising here so the market wasn't uh reacting to this this week it was all Bank crisis time you have a take about inflation here for us so if I ask you to tell me how to feel about this your answer is you got nothing I mean nothing new right tell me how to feel about this right inflation is I think trending down story trending downwards but also is probably more

persistent than the fed or anyone else wants to admit and it's probably um still not going to be pushed downwards by monetary policy any further so I'm still in the camp of like you know two percent nah that was for the 90s right we got like some three four percent New Normal maybe like a five percent that's still the camp I'm in but uh we'll have to see where where things go and you know we've had macro folks in the podcast like Lynn Alden who I consider very good in in this area and she talks about hey the next 10 years we're gonna have uh Cycles volatility of inflation periods years for inflation yeah we have large spikes and then we

kind of ease back down but when we ease down don't get comfortable there we're not returning to like a you know 10 to 20-year period of time where we have two digit inflation we're going to continually get real inflation in the economy and by the way CPI is just um I feel like it's almost the wrong metric to look at anyway yeah right the takes I've been hearing about inflation is that we actually don't know to what degree is it a supply side problem or demand side problem uh so one take I heard recently was that okay we're increasing interest rates just to you know destroy Capital destroy demand but also like there's the whole supply chain thing and and all of that and so there's the other side of the equation that the FED doesn't have control over and to what degree that

actual inflation is responding to Fed interest rate policy versus just normal consumer and supply chain and supply side things is still unknown and perhaps the fed's involvement here is less and with the meaning that inflation will just naturally subside just by some of these idiosyncrasies of the covet era just play out we will have to see that's what that's what the fed wants to be true I don't know how that's gonna play out David let me give you some good news on your uh eth Bitcoin ratio trade all right ultrasound money still continues to be ultrasound oh thank God you can you can go look at ultrasound.money at the burn we just hit 3 million ether Supply burnt as a percentage of the

network what's that just under like two percent uh no over two percent I think just sorry just under three percent oh yeah it doesn't matter 2.7 something like that um that's incredible incredible three million three million youth Burns since eip1559 not since proof of stake Demand on ethereum Ben lately up only yeah so 120 a million and we've burned three million because of eip1559 that is a significant amount and the eip1559 burns ether at the margins right so the people that still have their Ico ether and are just holding on it that ether's not being burnt it's like the active

transactors that have to re-up their supply of ether that's being burnt and so it actually does show up in the price slowly very slowly it's fundamentals yes these are what we call fundamentals David some interesting volume fundamentals as well uniswap volume is a big this is a tweet from Hayden Adams uniswap at almost 12 billion in Daily volume hitting 11 digits for the first time ever has a crazy amount of volume I feel like that's silently happening in the background well no not so silently that is that is people fleeing out of USD and then back into you silently happening in the background it was quite loud I know people are like oh my God

it's USC is over there was a lot of that this weekend by the way um we'll get to it later but of course USD depegged to 90 cents never seen that happen actually below 96 oh yeah 88 88 cents never seen that before so I guess that's why the exchange activity was busy yeah that's exactly right yeah but it's also not it's this is in line with other things so here's synthetics a hundred million dollars in Daily volume for synthetics perpetuals uh which is a almost a 2X bigger amount than it's ever had on a daily so like synthetics on Layer Two on optimism yeah uh coming back with the force and this has always been a big constraint on synthetics is layer one gassy is really hamstrung the whole

entire synthetics ecosystem now that it's on optimism it is seeing a a rise of the Phoenix for synthetics swaps also hitting all-time highs over the weekend so activity is is is in Block space demand is in you know I'm going to do a quick shout out for our friends and sponsors at metamask here it seems like an appropriate time did you know bankless Nation inside of your metamask wallet there's this really cool feature called the swap you could do inside of metamask don't need to go to an exchange you just swap one asset for another really reasonable prices and you get that done inside of your wallet that's what does the whole order routing thing to go through all the exchanges so you don't have to deal and do it it's

like kayak for your for your you know you know hotels hotels.com or yeah there you go and thanks for thanks for metamask for supporting bankless as always David what do we have coming up next coming up next what do we have uh the arbitrum airdrop is what we're going to talk about so we're going to talk about all those details uh today in about two in hours and ten minutes we're gonna live stream with the Arboretum team so that is available for those that are listening to this on Friday uh but then we're going to talk about the banking crises and all about the Fallout from that the joint statement from the FDIC Signature Bank whether this is an attack on crypto Tom Emmer's letter to the FDIC uh Jeremy allares uscc and Credit Suisse because the banking crisis

hit Europe uh and then after that we got to talk about the New York attorney general that alleges that ether is a security but do we even care about that person I don't even know anyways all of that and more as soon as we get back from some of these fantastic sponsors that makes this show possible Kraken has been a leader in the crypto industry for the last 12 years dedicated to accelerating the global adoption of crypto Kraken puts an m emphasis on security transparency and client support which is why over 9 million clients have come to love kraken's products whether you're a beginner or a pro the Kraken ux is simple intuitive and frictionless making the kraken app a great place for all to get involved and learn about crypto for those with experience the redesigned Kraken Pro app and web experience is completely customizable to

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world of web3 arbitrim has finally announced the long awaited airdrop David is it layer 2 season are we finally here can we say that I think so so arbitrum is releasing their token optimism had their base announcement with coinbase to count them zke EVMS go live next week this is the layer 2 summer that we have been talking about for like two years now and finally finally coming it's happening it was the summer just not in summer time anyway the ARB token that's what they called it ARB so not RB I like that ARB will finally will be used to govern over the arbitrim ecosystem and yes it will be airdropped early to users it launches next Friday as March 23rd so

the announcement is today we know it's going to happen we know some of the details Dave's getting into that the actual token goes live next Friday next Thursday actually is it next Thursday okay sorry guys next Thursday by the next roll up we'll have some actual token information but David you know all about this because you've been talking to arbitrim we have them on later give us the Deets yeah so okay uh 10 billion token Supply 11 point something something percent air drop to users of arbitrum one point something percent airdrop to Dows on arbitrum to give to their communities a significant percentage being given to the Dow treasury something like 45 so if you count the Dow treasury or 43 excuse me

so if you count airdrop to Dallas users and the treasury which the treasury is like up to the community to decide that's something like 50 56-ish percent uh and then investors and the team get something like 45 of total tokens how do you like that good distribution what do you think I'm waiting for the community to respond to that I know uh palenia said that this was a bad distribution but it's very hard to appease Polonia these days we would know uh and uh but I don't so I I went into the small brains Discord and I was like yo uh how's your guys's reactions to this community yeah small Brands yeah yeah the treasure Dow ecosystem I just went in there and asked for their gut takes

and everyone was very very excited uh and so the sentiment is good strong morale strong sentiment I think the community is accepting this um yeah that's that's my take there okay that's the supply now how are they actually Distributing the airdrop portion of it David who's getting this how do how do I know if I'm eligible okay so there's a bunch of different uh reasons why one could be eligible for the arbitrum token I think you're going to go ahead and hit that button and we can look at this uh this happened live right yeah this is the only tokens you got all right well I've been using let's see I did five things out of the six things yes because five things also have uh tears inside of them as well so six different things each one's with

internal tiers so did you bridge to arbitrum so that's pretty binary like yes I know uh you did looks like you did not bridge to arbitrum Nova so you did not get that um uh qualification two different things not with this wallet okay all your 17 otherwise yeah um transactions over time so you've conducted transactions doing two of distinct months uh if you did it with six months you got more if you did it with nine months you got even more than that so that's like a usage type thing how often are you doing this yeah exactly uh next one transaction frequency and interaction uh more than four transactions or interacted with four smart contracts as the base tier and that goes up to 100 transactions with more than 100 Trans smart contracts

for the big Power users out there uh and so there's four different uh tiers inside of this criteria that is transaction value ten thousand fifty thousand or two hundred and fifty thousand in aggregate transaction volume so if you only had a thousand dollars but you transferred that one thousand dollars around 250 times you would have cr uh gotten the top criteria and then uh bridge to arbitrum one so assets bridged uh if you deposit more than ten thousand fifty thousand or two hundred fifty thousand dollars of assets to arbitrum one and then activity on arbitrum Nova as well the other the other arbitrary chain so those are all the criterias yeah so I got three thousand ARB tokens and again they're not awarded right now so I can't come claim these I can go claim them next

Thursday yes next Thursday and you also delegate to a delegate for governance which brings us to the conversation of governance so yes arbitrum is licensing Arboretum technology to the arbitrum Dao and so this is actually pretty cool the not only do they launch their token they've also launched what they are calling arbitrum orbits which are arbitrine layer threes so if you you choose to build if you choose to build an arbitrum roll-up and deploy it on the ethereum layer one so separate from the arbitrum ecosystem you must first get approval from the Dow if you choose to build an arbitrine roll-up and deploy it on

arbitrum 1 or arbitrum Nova that is completely permissionless so you can use arbitrum technology freely to build on top of arbitrum pre-existing chains but if you want to take the Arbitron technology and build your own independent roll-up that settles directly to the ethereum layer to layer one you must first get dow approval by token vote okay let me make sure I understand this so if we were to create a bankless arbitrary roll-up and our own apart from Nova apart from arbitrum one yes we it has to go to Dow vote Yes the ARB token holders have to give us you know 51 or more right uh okay so if we want to do that but it is completely permissionless if we want to build our chain like what a chain three

yeah a layer three a layer three um Tech okay on top of on top of Arboretum on top of arbitrum one that is correct and permissionless yes interesting all right what's the intent behind that do you think well naturally uh the value of the arbitrum chain gets contained by the ARB token if you build on on top of arbitrum yeah one or Nova but if you build an independent chain you need to justify why you aren't Building inside of the arbitrum network uh and so the the doubt will determine whether that effort is legitimate fascinating I think that's very fascinating nice experiment okay what else does the ARB token do besides vote

anything do I pay transaction fees for it or is that still ether oh no that's always going to be ether yeah the the other big thing is that there is a multi-sig that backstops the fault fault proofs for arbitrum so okay arbitrum fault proofs are actually operational and running so the chain is legitimately decentralized we are now in what really would call a phase one of roll-up decentralization out of four which which is uh live fault proofs are we seeing that L2 beat uh the wrist I don't know if they have that updated that fast okay okay um so that is live and running and it's backstopped by a nine of 12 multi-sig so it's like you know when your kid is like

learning to bounce on a bicycle but you keep your hands there like that's what's going so the kid's balancing but you still keep your your hands to catch them there that's what the multi did I did I read this uh this group of multi-sake holders it's called the security Council that's correct it's a security account so if they're attacked then there is a multi-sick way to kind of like um do a fast upgrade some sort of very fast reaction and uh yes okay but but fraud proofs are happening now correct yeah that's big yeah uh and then uh also the cool thing about arbitrary governance is that this is not snapshot vote this is direct on-chain executable governance uh and so you don't have to wait for the team to be like oh this is what the

community Wanted let's do it no it the a arbitrum governance is executable on chain directly which is pretty cool yeah but okay but like directly on chain what's that what does that mean what is it as opposed to like governance which is like all right let's do a snapshot vote like oh this side one that means we're gonna do this no where it's like a social contract yes exactly yes no the arbitrum token governance is live on binding it's binding correct that's really cool there's also uh this brand new thing called the arbitrum Constitution I mean you can't kind of expect what that is it's the social contract of the Dao uh it also sets some terms a AIP arbitrary Improvement proposal uh there's the Dow treasury

government chain non-govern chains et cetera et cetera et cetera uh and so this is all found at docs.arber drum dot foundation and there's now an arbitrary Foundation that exists very cool they've really gave this a lot of thought uh I can I can certainly tell this uh big rollout okay let's talk about this we we don't know what the price of the token is at this point in time but we will by the next roll up are there any guesses do you have any estimates on on what we might be looking at if you I guess you could just do comparables of other layer 2 ecosystems what would the the value of my 3000 ARB tokens be yeah so 10 billion arbitrum tokens uh coincidentally conveniently Matic and optimism are

roughly valued kind of close to each other Matic is valued at 11.4 billion dollars fully diluted optimism is valued at 10.7 billion dollars fully diluted uh optimism has a lot more of dilution to go the market cap is much lower than the fully diluted value but the fully diluted value I think is the one to pay attention to for the time being so if we think that Arbitron is going to be about valued like these two comparable like for like one to one ish that would mean that one ARB token is going to be about one dollar ten cents ish if you think that Arboretum is equivalent to Matic and optimism so just above a dollar is what is I think that is the most safe base case could be as a conservative

estimation in my opinion it's like one dollar and ten cents how much supplies hidden this will be a more similar to optimism than to Matic in terms of it the liquid Supply that's on the market is that right yeah Matic is like they've got medic has gone through price Discovery uh and so it's an old token that's why the older the token the more uh distribution is in the hands of kind of the open market the less is locked up and kind of insiders and investors and that sort of thing yeah that's that's right and so the market cap of uh Matic polygon is 10.3 billion where the fully diluted value is 11.3 billion so it's like 90 issued right yeah optimism is uh a fully diluted value of 10.5 billion with a market cap of 750 million under

10 under 10 totally issued uh arbitrum is coming in with a 12 airdrop so they are going to be a little bit of head of optimism in total uh total amount actually live circulating and trading uh and so they'll still have a lot more to go in terms of price Discovery optimism's price Discovery is there's a lot of price Discovery in the optimism token like already baked in um Optimum is going to be about a little bit more ahead but about the same uh and so I think there's a lot more defy and financial activity on arbitrum than optimism I think it's safe to assume this is my estimation I have no idea what the Market's going to do obviously

like one a a like for like comparable of one to one for arbitrum to optimism and polygon is very safe and conservative I think we could it would be reasonable to assume a two to one valuation is it a two to one evaluation so two two dollars two dollars 25 cents for for ARB depending on how Manic the our the community is and how many tokens they want to purchase on the secondary who knows and who knows what the initial price might be right um that's all up to the market to decide we have a fantastic report that bankless put out uh if you want to get the details on that because I think if if you uh received airdrop the not Financial advice question is what do I do with it do I hold it do I sell it I definitely delegate it definitely well that would require not

selling so sure um but yeah so you can you can think you have to build that claim however so you know uh arbitrim's D5 moat that is a really interesting thing um I mean for me personally not like I would not sell uh my ARP tokens I mean like it's layer two seasons just getting started my friends and uh arbitrim is one of the most promising layer twos out there uh not Financial advice never is of course but uh we have some videos on the bankless website you can go check out or talk to their team we're recording that a little bit later that should be live by the time you get this episode and uh the last thing I'll say is if you want an automatic notification system of when

your arbitrum airdrop dropped you just gotta go to earn Dot earn i.fi so that is e a r n i dot f i right or earnify is the ultimate airdrop finder for you okay it just it's like a super robot that just alerts you when you have an airdrop in your particular address when you're eligible because most airdrops people never get an opportunity to claim so go check that out there's uh there'll be a link in the show notes of course um earnify is a bankless property now so we're really excited about that tech and and the value it's delivering to the bankless nation

wow cool day very good that was so it's nice to have fun things to talk about fun and happy things but now we're gonna have to go on to the sad things this is a joint statement by the treasury the Federal Reserve and the FDIC those are all the big ones big gov telling us something on March 12th well is that Sunday did they issue that on a Sunday Sunday evening at 6 15 Eastern basically the last moment that they had to issue the statement before people were gonna get real crazy Monday morning when Marcus opened up all right so what happened for people who didn't catch our episode that we did on Monday about the banking crisis in Jack can you just give us the highlights of what actually happened from the last roll up until now

so right after we recorded their last roll up silver uh silvergate excuse me Silicon Valley Bank had a run on the bank uh and people realized that this bank was going to legitimately run out of money to give to people that had cash in a silver uh Silicon Valley Bank and so that caused just a bunch of just fear because many of startups in the crypto space and just overall startups in general bank with Silicon Valley Bank some of the startups that you and I Ryan have been made in full invested in have used Silicon Valley Bank as their Bank no longer because that bank is gone but people were very very worried that this would create contagion and so this run on the bank would create uh runs on

other Banks because the reason why silvergate excuse me Silicon Valley Bank went under was because of a common theme a common uh structure that many many banks have which is long dated Securities elongated uh maturity Securities treasuries that are like your treasuries five-year treasury long-term treasuries versus short-term treasuries and so when they bought these long-term treasuries and then the Federal Reserve jacked up interest rates those long-term treasuries and other Securities uh that were all like long-term time Horizons went down in value quite a lot and so that created a big hole and then people needed to uh withdraw their cash at some point in time and they did it fast and

they did it fast well because people started to realize that there's not a lot of money left so they had to you know because we can it was social media that when the VCS are typing in all caps like there's a run on the bank you know withdraw your funds that's what happens yeah around the bank yeah people don't literally show up although there were some people actually showing up at the branches of Silicon Valley Bank but like people are just withdrawing electronically wire transfers doing it as fast as possible that's what the run on the bank was um so we had silvergate then Silicon Valley Bank uh there was another one as well but so this was the surprise in this uh statement here from the The Joint statement was that uh Signature Bank was also announced in this statement that they have also shuttered

Signature Bank in addition to the Silicon Valley Banks which was a surprise uh the the fed the FDIC uh and so not only did they take control uh C's uh Silicon Valley and then here's the big thing about the statement is that FDIC insurance which is usually a quarter million dollars they effectively just raise it to Infinity for these two Banks so they the FED took over Silicon Valley and Signature Bank and said hey if you have money in this bank no even if it's over 250 000 you will totally be insured and we will give you your money back starting on Monday and that's what quelled the fears and that's what stopped the bank run um the Signature Bank shutdown which was a kind of a surprise because it wasn't

signature that had a run on the bank it was Silicon Valley Bank and so the feds said that well Signature Bank was also under stress and so they seized that one as well all these banks that start with an S I think are curse so just quick recap so last week early last week silvergate Bank dead that was a crypto focused Bank next Silicon Valley Bank Run on the bank that happened Friday was shut down the FED uh came in and then all weekend everyone the entire Market was left to panic he trades office Peg VC shouting like what's gonna happen what about the depositors everyone's panicking because they still have funds in Silicon Valley Bank and we don't know if depositors are

going to have that deposit guaranteed and then the FED comes out late in the evening on Sunday before markets start at least traditional markets start crypto is trading during this whole time never never shuts down right and they they say nope depositors we're going to make them whole for Silicon Valley Bank oh and by the way we're shutting down preemptively Signature Bank that's what this is so the question is like Signature Bank why Signature Bank was this a was this a targeted attack or was Signature Bank just as weak as Silicon Valley Bank so when I read this statement my initial reaction was well the reason why they would take over Silicon Valley Bank and promise infinite

Insurance to all depositors it's because they are the the worry of a contagion event of many many runs on many banks is legitimate and that's why they would do this so therefore it does make sense that there is another bank that is also under duress that is not sufficiently liquid to give deposit uh give depositors their money back so that to me makes sense it could be signature it could be anything right right um other takes have come out with other information that this was an opportunistic takedown of a crypto bank which if you take the other side of this perspective well we were starting January and February talking about operation choke point 2.0 and how the fed and the treasury was trying to come after politically uh uh service banking

services that would ban crypto customers and so well it now it kind of makes sense that they would do this regardless of the actual Financial condition and so people have passed this back and forth um and so this is part of this story here uh here's Nick Carter's take which is talking about former Senator Barney Frank of Dodd-Frank the Dodd-Frank Act openly admits a signature was arbitrarily shuttered despite no insolvency because Regulators want to do kill off the last major pro-crypto Bank he is not a crypto person he does not care about our industry so this is like a decently unbiased take is that he said that there's no real objective reason that Signature Bank had to be seized which is a big statement from this the Frank of Dodd-Frank to say this is

Barney Frank like pointing the finger at the FED in the US government and saying this is a direct quote I think part of what happened was that Regulators wanted to send a very strong anti-crypto message Barney Frank saying this this is not cryptozeal it's saying this we became the poster boy because there was no insolvency based on the fundamentals and there's the reason why he's saying uh we is because he is at silvergate he's that signature excuse me signature we'll get our s's there's so many s's here with with these Banks uh so officials fed officials saying crypto had nothing to do with his signature takedown uh but then in this article it's stated that any buyer of Signature Bank who wants to buy this distressed Bank must agree to give up all the

crypto businesses at that bank uh okay oh my God I didn't know that no that not not looking great not looking great so some that like the traditional way to kind of I'm gonna say bailout but save depositors as a bank is to have a bigger Bank buy it buy all the depositors assets right um and this is saying that maybe any buyer signature has to agree to give up all the crypto business yeah at the bank businesses fail sick how is this legal yeah I don't know I don't know uh so here is Zero Hedge commenting on that recent Nick Carter take uh crypto is now a political issue the Democrats want to crush it and the Republicans GOP will use that in 2024. we'll see what that

happens when the election I hope this doesn't become a left versus right thing is Congressman Tom emmer Republican saying today I sent any letter to FDIC chairman grumberg regarding reports that the FDIC is weaponizing recent instability in the banking sector to purge legal activity from the United States so Tom emmer member of Congress also we are in talks with him about coming on Bank list so we will talk to him directly soon I think he's coming on next Friday David but that is not all so here's Jake Stravinsky tweeting out today the blockchain associate Association sent Fourier request that is Freedom of Information Act request to the fed the FDIC and OCC demanding information about the unlawful banking of crypto companies we are collecting evidence of debanking

share your story with us and he gives an email to do that debanked at theblockchainassociation.org plus a threat so whether or not that this was a run on Signature Bank or this was a targeted political takedown of one of the few remaining crypto Banks sounds like we're going to get down to the bottom of it because we have the blockchain association with Freedom of Information because we live in a democracy and also a congressman going after this as well so the sleuths are on the case we will we will find this out we'll see if the allegations are true yep Jake travinsky here tweeting their troubling reports of crypto companies having their bank accounts closed with no notice and explanation and this is a district a disturbing Trend suggesting

that Regulators are trying to cut crypto entirely out of the banking system not legal to Target an industry like that and to Target a specific set of depositors David let's go back to the usdc story though because that hit crypto of course crypto didn't stop trading usdc was still trading against other stablecoin assets dropped down to 88 cents we had Jeremy o'lear on the podcast earlier but this is his statement that he issued right after that fed letter was sent out that all depositors at Silicon Valley and Signature Bank would be made whole what's the story for usdc here yeah so I've pulled out three tweets out of his thread uh that I thought uh were worth

stating 100 percent of usdc reserves are safe and sound and we will complete our transfer of remaining svb Silicon Valley Bank cash to bny Mellon much bigger bigger bank with a closure Signature Bank announced tonight we will not be able to process minting and reductions through Cygnet which is a product from Signature Bank signature network is what it was it was a product to facilitate inter customer transfers instantaneously inside of Signature Bank so like winter mute I believe is a customer of Cygnet no longer because it's down uh and so like you could have instant Bank transfers across clients um since that's isn't Signet still up it's just being operated Now by uh apparently it's still up and running but

they are no longer depending on that so they are now taking on settlements through bny melon and then lastly indeed the payment stablecoin act which remains a very active pursuit in Congress would enshrine a law a regime where stablecoin funds AKA uscc would be held with cash at the the fed and short-term t-bills we need this law now more than ever if we truly want a safe Financial system I think it's worth noting that like two banks that served Circle went down and circle persists and is is uh trading one step ahead yeah all you got to do and now is that being my melon man and so like they are just climbing the ladder of bigger and bigger and safer Banks like ustc is an increasingly safe

place to hold your money well now basically one usdc is is as good as a bank in a too big to fail financial banking system so basically you know usdc is going to get depositor bailed out anything goes wrong as long as the U.S banking structure holds as long as don't become overly Draconian about crypto yeah right exactly um anyway the full story with Jeremy Lair is actually on the bankless podcast I learned so much about usdc that was one of these guys the most hard-hitting 30 minutes Puck is a very short podcast and he'll listen to it yeah he was like here's what happened over the last five years two questions in 30 minutes and he answered and more questions than I had

yeah go check that out um of course this is a centralized stablecoin this is not a decentralized stable coin but that is still important uh system as well for like Jeremy is a crypto person he is our Trojan Horse into tradfy yeah that's how we do it they're still paying youth gas fees they're still burning Eve aren't they yes uh okay so this contagion has maybe spread to Europe what's the story here as we uh as we record this David yeah so Credit Suisse under duress in Europe uh Credit Suisse uh perhaps not the most like legitimate Bank out there perhaps did some money laundering are you causing a run on the bank right now David perhaps I perhaps could have facilitated more legitimate Financial transactions I don't know okay uh could it could have been better anyways uh

they the shares of Credit Suisse hit all-time lows uh but then the stock price resurged because uh the Swiss Central Bank agreed to loan the bank up to 50 billion francs 54 billion dollars to bolster confidence in the country's second largest lender following the collapse of two other Banks is the article so credit Suite is not looking great but they also needed needed a bailout from a central bank the weak banks are shaky right but but I do think I mean central banks whatever country you're in are going to bail out depositors they can't afford to have banking contagion spread across all of their respective countries so I think that's uh the story here there's a story about stock prices of the big Banks as well what are we looking at here uh a bunch of lines going down into of JP

Morgan Bank of America City Group Wells Fargo Morgan Stanley Goldman Sachs not one of them is better than negative ten percent so Bank stock slide uh Ryan sulcus had a take here well Banks stock slide what was crypto doing last week up ten percent down 10 to 20 versus up 10 for crypto well I mean like doesn't this exposes this a narrative trade what doesn't this ex I think it's a few things I think one it's a little bit of a narrative trade people waking up and being like well how safe is my money number two I think this uh indicates a more dovish fed moving forward how much can Powell actually increase rates which is of course good for risk on assets like crypto

um here we go fednow what is fed now and how does that link to the story of what we've been talking about David fed now is like as close as you get to a cbdc without actually making a cbdc it's not it's like a it's not a cbdc in itself is it it's like um a side chain yeah for digital Bank dollars yes yeah it's like a transaction side chain for the FED uh instant payment service from fed now starting in July aims to reduce the Gap in payment time between United States financial institutions this instant payment network will settle payments in seconds and support transactions between consumers merchants and Banks does not rely on blockchain so the conspiracy

here Ryan is that Signature Bank was taken by the Fed conveniently fat now service is announced just rolling it out huh is government Tech right it's it's government Signet it's a government side chain it's like it's like Cygnet made their own private side chain to facilitate these uh these banking transactions and to settle kind of um I guess crypto payments in the uh in the U.S banking system this is uh Damon NAMM expressing that silvergate had silvergate exchange Network signature had Signet both were private networks for companies to transfer value between each other using digital assets where

are both now these companies enabled alternative currencies that threaten a cbdc and fed now as the conspiracy theory that maybe the feds were trying to take this new network down before it blossomed into something bigger I will leave this up to the imagination of The Listener David is ether security all right this was buzzing last week as well because New York attorney general alleged that ethers a security so someone who does not get to determine what a security is allege that ether is a security that should be what the headline is okay so what's the take here what's going on uh so uh the New York attorney general is suing kucoin an exchange saying that it violated Securities laws by offering tokens that

meet the definition of a security without registering with the Attorney General's office what were those tokens Luna well no one's going to defend that one UST and ether like just lump at all those otherwise if they're the same uh and they have argued that ether is a security um that why is ether security well because the value of ether is dependent on efforts of others including co-founder vitalik buter and the ethereum foundation which man are we talking to a Bitcoin Maxi or are we talking to the New York attorney general I can't tell the difference it's important to realize these are just court filings to try to prove a case so it's not even necessarily A cringe actually a statement I I feel like it made headlines because of the name it's

a you know right New York attorney general of the name not that this is actually she doesn't have the power to do this basically it'd just be like me tweeting Bitcoin is a security I don't have the power to I declare a security clear it doesn't work like that guys um this is pretty bad yeah that you know the statement you can read the details and there's some analysis this week of what happens if ethers a security uh it's just it's it's not a it's just an illegitimate question like what happens if there's a security it's it's not nothing's gonna happen well I guess if somehow the US government all colludes as part of this extended operation checkpoint to choke off crypto and

somehow is able to like declare ether security and that is not defeated in the court system then what happens the US is eliminated from the crypto race like it's not going to kill ethereum long term and by the way I think that like I give the odds of that happening like one percent two percent maybe like it's probably not worth thinking about that's my current take I mean I could be wrong about that thinking about yeah but it's just a lot of noise uh and speaking of noise Gary Gensler is saying some of the same noise as well what's Gary saying uh he's saying that proof of stake tokens are securities uh and so uh returns that token holders see from

stakings indicate that these tokens are securities according to Gensler and would need to be registered under U.S Securities laws whether they're promoting or putting into a protocol and locking up their tokens in a protocol that's often a small group of entrepreneurs in developing are developed that often a small group of entrepreneurs and developers are developing I would suggest that each of these token operators seek to come into compliance and the same with the intermediaries like at this point this is just the Gary stump speech like oh crypto is security I declare a security I declare also Gary can't also does Gary kitson determine who what is a security no he doesn't no not even Gary gets to determine that what is what is that determined by courts right yeah right I mean that one yeah it should be I think

Gary can can prosecute but then he has to prove his case right in court and uh who are you going to prosecute with ethereum how does that yeah and I wouldn't like to see that bad I would love to see vital okay so when in front of Congress brings out I've seen vitalik bring out claws sometimes like against Bitcoin Maxes or like a way that's like I'm going to rationally destroy your article your argument in front of you sort of right in a very concise way and it's and it's going to I'm gonna I'm gonna I'm going to verbally pants you maybe that's that's the right way to do it verbally vitalik has I've seen vitalik verbally pants people a number of times it is it is just an absolute dream of me

a Daydream to imagine that he could might be able to do that for Gary Gensler one time I think this could happen in Congress wouldn't it but like anyway I don't want to put vitalik in that situation this is all stupid noise anyway it's not worth anyone's time uh David we got a lot coming up next what are we covering uh Starbucks sold 2 000 nfts inside of 20 minutes uh we have a withdrawal date did you know that right in the middle of the Arboretum airdrop like everyone's talking about overtime today we also got the date for I just learned that by reading the roll-up agenda today uh so we're going to talk about when withdrawals are going to be enabled or sadly we're going to have to talk about Euler and the hack there uh and Aztec is sun setting Aztec connect but perhaps for something better so

we're gonna get through all these updates and more as soon as we talk to some of these fantastic sponsors that make the show possible uniswap is the largest on-chain Marketplace for self-custody digital assets uniswap is of course a decentralized exchange but you know this because you've been listening to bankless but did you know that the uniswap web app has a shiny new Fiat on-ramp now you could go directly from Fiat in your bank to tokens in defy inside of uniswap not only that but polygon arbitrum and optimism layer twos are supported right out of the gate but that's just D5 uniswap is also an nft aggregator letting you find more listings for the best prices across the nft world with uniswap you can sweep floors on multiple nfts and uniswap's

Universal router will optimize your gas fees for you uniswap is making it as easy as possible to go from bank account to bankless assets across ethereum and we couldn't be more thankful for having them as a sponsor so go to app.uniswap.org today to buy sell or swap tokens and nfts the Phantom wallet is coming to ethereum the number one wallet on Solana is bringing its millions of users and beloved ux to ethereum and polygon if you haven't used Phantom before you've been missing out Phantom was one of the first wallets to Pioneer Solana staking inside the wallet and will be offering similar staking features for ethereum and polygon but that's just staking Phantom is also the best home for your nfts Phantom has a complete set of features to optimize your nft experience

pin your favorites hide your uglies burn the spam and also manage your nft sale listings from inside the wallet Phantom is of course a multi-chain wallet but it makes chain management easy displaying your transactions in a human readable format with automatic warnings for malicious transactions or phishing websites Phantom has already saved over 20 000 users from getting scammed or hacked so get on the Phantom waitlist and be one of the first to access the multi-chain beta there's a link in the show notes or you can go to phantom.app waitlist to get access here we go when is the next ethereum hard Fork David when can I withdraw steak teeth typically at block number six million two hundred and nine thousand five hundred and thirty six that is your

answer um maybe maybe you're asking when is that thank you chat David GPT uh very precise yeah that is uh gonna be April 12th so uh a little bit over under one month away from today today is the 16th of March uh April 12th is when withdrawals happen however also has to upgrade its own smart contracts to enable withdrawals to enable withdrawals right and so Lido is targeting mid-may to allow for ether to come out of the elido Dow um so that's the news there so there could be a delay that's happening in may even though the rest of the ethereum protocol is uh upgrading earlier right gotcha um let's talk about some sad news

this is um I think really devastating for a really cool D5 Builder team Euler Labs uh what happened David what's the news yeah Oiler it's a money market kind of like compound and Ave with some cool new mechanisms much more governance minimize with new liquidation schemes that all the big brains out there think is pretty cool um it was definitely growing in popularity it was dominating in the staked uh Interstate Deeds world uh really great team Ryan and I are investors in Euler so disclaimer I guess for that um 196 million dollars drained and die uscc steak teeth and wbtc this is uh so far the largest hack of 2023 um and so they did their best to plug

the Hole uh but not not before 196 pounds how did it happen uh I mean that I'm beyond my capacity to understand the the exploit here um there's a flash loan yeah it was a flash loan to start um and then yeah some sort of exploit in in the in the code um it has since been plugged um so that's that vulnerability is now gone um but I mean but here's what's crazy so they had um audits six of their smart contracts six audits of their smart contract and um this functionality was existing eight months so it had a Lindy of about eight months live with uh tens of millions of dollars and this whole

amount has been drained so a lot of D5 users affected by this this is I should emphasize like some of the hacks that we've seen over the years are kind of like protocols that are just fast and loose um they don't take security into a account um they're not they're making obvious uh you know trade-offs and they're obviously flawed Euler is not one of those right these are one of the the teams that are doing it the right way right and it happened to them yeah this is when you see six Audits and it still gets hacked that's just man like smart contracts like the the only good metaphor I've heard for uh smart contracts is like they're this like the same engine like they just blow up a

bunch and then one day they start working this one sounds like blew up devastating and I I guess we have to emphasize right there's just defies taking this on the chin of course um this was a mistake uh obviously there was a flaw in the way that this was constructed what we always end every episode with is crypto is risky so is D5 you could lose everything put in that's what we say and this is another reminder of that be careful uh in these new crypto ecosystems the new frontier people get hurt sometimes so Euler is offering a one million dollar Bounty that uh it goes to anything that leads to the arrest of this uh hacker as of this morning Ryan we are watching the

funds go through tornado cash which more or less indicates that the hacker has no intention of returning the funds whatsoever um the likelihood that this is North Korea is like I mean it could be a state actor FBI is on the case yeah I mean they've already they've been they've uh talk to analysis they've talked to law enforcement they've talked to coinbases like the chain analysis equivalent uh I mean the fact that it's immediately going through tornado cash my money is on this is North Korea wow uh upsetting uh definitely David what about Aztec so they are sun setting Aztec connect um I don't think this is bad news necessarily but I was confused when I

saw this yeah uh people are like oh Aztec they're getting shut down by law enforcement or Regulators because they're a privacy privacy a layer two privacy protocol yes uh so like tornado cash but if it was a whole entire chain so they are if Sunset Aztec connect and ZK pay Aztec pay which is like basically tornado cash but better uh but they are doing this to build a Next Generation encrypted ZK roll-up uh and so they are basically sunsetting this thing that was a really good stepping stone for what is about to come which is probably like the most sophisticated privacy technology on ethereum and so this is just a Prelude to that if you will nft stuff Starbucks

sold 2 000 nfts in 20 minutes uh this is pretty big what happened here uh 2000 MCS priced at 100 each sold out in 20 minutes uh 2 000 digital stamps uh Journey stamps um I can't say that I know what these do yeah yeah did they get you coffee they don't get you coffee I don't know what they get so yeah let me look at these Journey stamps um secondary Marketplace look at this floor price of 650 oh they're very very big pretty those are pretty it's like the uh the Starbucks Mermaid yeah it's a different manifestations yeah what what do they get you Starbucks clout uh I don't know uh

Odyssey Starbucks Odyssey member you can join a waitlist so something about a Starbucks Odyssey all right I mean Starbucks doesn't have great coffee but they hate it's too much of a coffee snog to buy this Starbucks yeah epic the creators of fortnite have also close to 20 crypto games in their store pipeline that's pretty big David yeah okay so over the last like six nine months I've been like oh everyone's talking about crypto gaming is the next big thing and I was like okay that's a fun narrative like let's see if it plays out after going to East Denver after hearing news like this and talking to some other people about what's going on like no this in my mind has gone from narrative to no this is real your game there was a game at East Denver that was absolutely

beautiful for those who like Dark Souls it looked a lot like Dark Souls uh that all the Assets in the game were nfts on a blockchain I'm like that I did not know all I gotta say is like well-balanced economic games are fun yeah they're just fun like I even when I'm playing like crypto feels like a game sometimes it's just one giant economic game and it's a lot of fun uh yeah it's cool that epic is doing stuff here on the opposite end of this spectrum though meta is ending nft support on Instagram what Instagram it seemed like only yesterday you just deployed this this is product news from uh product lead at metas and product news across the company we're looking closely at what we prioritize in including our Focus we're

winding down digital Collectibles to focus on other ways to support creators people and businesses I'm disappointed by this yeah it's what were people just not using it very much I don't know uh maybe people weren't using it maybe kind of a bummer I mean they got in at the top and they're leaving at the bottom the the simple take is just tourists are tourists and settlers are settlers and it seemed like it seems like metas is maybe acting like a tourist in crypto right now man well they say it's true at the bottom of this they say and look forward to supporting the many nft creators who use gold pass it but like they said looking forward to support

yeah who using Instagram and Facebook to amplify their work well but you just took away the feature they support you though they like morally I don't know my take is this is a big opportunity for web3 social if what do social is gonna say bye bye to nfts that's fine it's bigger opportunity for decentralized networks this is by the way like the same week that um meta and Zuckerberg announced that they're going to build some sort of decentralized social media thing I'm right and some Twitter alternative all confusing to me fourth tweet because this doesn't make any sense let me be clear creating opportunities for creators and businesses to connect with their fans and monetize remains a priority and

we're going to focus on areas that we can make impact at scale such as messaging and monetization opportunities for reels hmm okay maybe I am an nft Daydreamer Optimist yes but uh this seems to be the opposite of that hey we're going to not do anything in web3 and we're going to go back to web 2 and focus on that to you know help support our creators pretty regressive tourist sleeve settler stay that's all I gotta say uh it's a good time to shout out the bankless collectors we're doing experiments in nfts it's working for us meta we're doing it just fine look at the top collectors here should we shout them out for a second absolutely

how many how many podcasts have we actually tokenized yet uh I think like six or excuse me like 10 or every Monday and then every five last year our Genesis collection who are the top collectors uh you want to read them out liword.eth we've just figured out how to pronounce uh his name 36 tokens 36 coming in at third number 136 uh coming in at number two at 32 tokens is landrin.eth so thank you you for guys for being one and two the race is on we also got coker.eath at 20 tokens Vault dot Dieter crux.eath and auto magic.eth 2019 and 18 tokens uh so they're the top five collectors uh we really appreciate the support guys thank you bankless

Nation collectors uh Fidelity crypto quietly went live giving millions of retail customers access to bitcoin and ether this is what happened this one was quiet this was a quiet thing was not quiet this one this was quiet okay so Fidelity is absolutely massive 37 million retail accounts What do they do they just added a buy button for Bitcoin and ether inside of their app bullish where are they custodying this David do you know this uh I do not know I think Fidelity has their own custody thing too don't they what if they're using that or uh something like coinbase I don't know I do not know I do not know uh I mean this isn't bullish yet because the no offensive Fidelity customers but I will

call them the herd hey I'm a Fidelity customer yeah but you also have a kraken account I'm assuming yeah so where do you do your advice Ryan infidelity or cracking the people that are buying today like the idea is that when the herd does come they don't have to leave and they don't have to they don't have to they can stay inside of their close comfy cozy zone of of protection which is Fidelity with the buy button tape for ether you know when metamask integration Fidelity why do you do that when can I sign in with ethereum all right what do we got um releases you know swap on the BNB chain that happened well and that's the story all right we also have a race this week one dimension Soul wallet backed with

three million dollars aims to bring self-hosted crypto wallets to the next billion big fan of smart contract wallets I think we are going to see a wallet Renaissance do we want to call a wallet summer because that if we do it's gonna be two years later that it actually happens but it does happen it will happen it will happen there will be a wallet summer maybe so will be included in that but we're starting to see a lot of smart contract wallet and wallet funding in general it's really exciting to see great teams doing this and this is from a previous bankless guest right yeah so whoever listened to the layer zero with JJ uh ji Zhang Zhang who dissented out of China because he worked for Baidu which is Tick tock's parent company and he really

tencent not Baidu not wrong about that I thought it was Baidu okay I don't know I mean I did I don't remember though but I think it was Baidu commentary correct us yeah um but uh he refused to build out an algorithm that could identify uyghurs uh for uh for Baidu basically because the Chinese government wanted to suppress them and he was like I don't agree with that uh and is building a smart contract wallet uh and Ryan and I are investors in Soul wall as well because we believe in it uh fantastic jobs this week guys check them out in the bank list jobs board I'll read a few a marketing manager at rise a sales development representative for web

3 in crypto at rise as well uniswap higher in like crazy senior product designer they need an application security engineer and a senior mobile engineer that is react native all the jobs are always available for you at bankless.palot.com go check them out David we got questions coming up we got takes coming up what else and what else after that of course what you and I are bullish on it might perhaps have to do with layer twos I don't know and of course the meme of the week so all this and more as soon as we get back from some of these fantastic sponsors that make the show possible arbitrim1 is pioneering the world of secure ethereum scalability and is continuing to accelerate the web 3 landscape hundreds of projects have already deployed on arbitrum one producing flourishing D5 and nft ecosystems with a recent

addition of arbitrum Nova gaming and social dapps like Reddit are also now calling arbitrim home both arbitrim1 and Nova leverage the security and decentralization of ethereum and provide a builder experience that's intuitive familiar and fully evm compatible on arbitrum both Builders and users will experience faster transaction speeds with significantly lower gas fees with arboretum's recent migration to arbitrary Nitro it's also now 10 times faster than before visit arbitrim.io where you can join the community dive into the developer docs Bridge your assets and start building your first app with arbitrum experience web 3 development the way it was meant to be secure fast cheap and friction free hey bankless Nation if you're listening to

this it's because you're on the free bankless RSS feed did you know that there is an ad-free version of Bank list that comes with a bankless premium subscription no ads just straight to the content but that's just one of many things that a premium subscription gets you there's also the token report a monthly bullish bearish neutral report on the hottest tokens of the month and the regular updates from the token report go into the token Bible your first stop shop for every token worth investigating in crypto bankless premium also gets you a 30 discount to the permissionless conference which means it basically just pays for itself there's also the airdrop guide to make sure you don't miss a a drop in 2023 but really the best part about bankless premium is hanging out with me Ryan and the rest of the bankless team in the Inner Circle

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agree there do you trust it more or less I feel like I trust the FED to prop it up like any other bank but does that go with a vision of decentralization Xerox Caesar Severus asked this question uh so I think this starts off a very big conversation um and one part is do we do we trust usdc the second part is how much do we want our D5 ecosystem to depend on the usdc so uh uscc looking more and more like a state-backed currency 100 do I trust it more or less uh I trust it to be one dollar and to always be able for me to have a claim on one dollar value more and more and more uh it is becoming

closer to being the cbdc that will never actually come about from the Central Bank it is doing like this backdoor strategy it's a proto-cdbc it's a proto-cbc and that's very bullish for it being strong guarantees about always having one dollar no matter what happens even if like cryptography gets broken it's close to the base layer of the money printer basically it's always going to be redeemable it seems like and it is doing its job of being one dollar no matter what the back end looks like so I trust that more and more and more every single day and I think the market is going to understand that too like people who sold to usdc at 88 cents they're going to remember that if uscc ever like loses its Peg again like it's

uscc starting to become anti-fragile it's coming up stronger out of this right so I trust it more and more and more uh does that go with the vision of decentralization well uh we watched die depeg because it was dependent on usdc um a lot of defy apps don't actually ingest oracles for usdc price they make an implicit assumption that one usdc is one dollar which is making defy and all the apps that do that uh enshrine usdc as one dollar in the same way that uscc is trying to become enshrined in the FED as the proto-cbdc makes D5 a bit more fragile it makes D5 more dependent on

the Federal Reserve and more dependent on uh the usdc uh is that good well it depends on how radical you are I think and so I'm of the opinion that our current Financial system and our new Financial system will integrate and hopefully be friendly with each other other people are more radical than myself and they say like not not one dollar like stock like Rye not die even to this point like some people don't like how uscc is inside of maker Dell everyone finds themselves on a particular place in the Spectrum I think it's definitely something to be wary about but I do think that accepting usdc and allowing for it to grow does offer very big adoption Tailwinds from people

who we would otherwise not be able to convince about crypto what's your attack on this Ryan my take on it is usdc is generally good for crypto because uh the more usdc that is settled on crypto networks like ethereum the more gas fees they pay and the more our decentralized native currency currency like ethereum ether the asset can Thrive and grow every time somebody transacts with usdc on ethereum they pay tax to eat holders right which increases the value of ether right so like backdoor we win we don't get that sort of treatment in the U.S banking system so it's totally a net win for crypto now does that mean we should become dependent on it absolutely not but you got to look at the long game

here the long game is we are only going to have two types of digital currencies type 1 is Central Bank digital currencies of which usdc is a Proto version of that it's like that type 2 is crypto internet native real non yeah non-central bank backed asset the best assets that fit that profile right now are ether and Bitcoin those are the only two assets kind of in the running for that sort of treatment and then you can create more stable derivatives on top of them and so though that's the bifurcation as long as we preserve both and as long as our decentralized native currencies gets stronger and stronger

over time we are winning relative to the position we're in so I would much rather see the FED adopt something like usdc that pays transaction fees to ethereum then to go the um Chinese Central Bank Route of creating their own blockchain network and their own Super Central Bank digital currency and not deploying on a decentralized network entirely that's so it's good it's not perfect but it's better than them not doing it so it's a net win for crypto right I think usdc is more of a trojan horse for crypto dough into tradfi then tradify than it is for

like the FED 100 I think Jeremiah Lair is a crypto person more than he is a banker although he is a banker he is more of a crypto person he's a crypto he's on our side he's on our side but look at if you have usdc how much so by the way usdc is a basically I count usdc is this just as secure as a dollar in my Wells Fargo accounts kind of one in the same except this almost was more secure than dollars inside of Silicon Valley Bank and Signature Bank so this dollar is uh now it's tokenized and guess what I have easy access to trade this seller anytime on a decentralized exchange called uniswap right in fact that's why we saw unit swap volume up so it's

another on-ramp to crypto right you know I can't do that with my Wells Fargo dollar I can't go on uniswap and do my savings account dollar trade that with eth I can with usdc we could go on about this but I think uh you guys get the point we this is why we are still excited about stablecoin adoption even if it's not fully decentralized it's still in the wind category you know you know when the FBI went to Apple and was like hey uh let us through the back door of this person's phone and apple yeah no F off yeah I hope that that's what usdc does for its holders as in like somebody comes and say hey Blacklist this address and uscc is like give me a court order to do that right oh but even if they don't well the reason let's talk about

the the reason Apple does that because if they don't people abandon that I it's bad for shareholders people have been an iPhone if usdc does start blacklisting guess what we abandoned we abandon it in a heartbeat right train my usdc for samith it's easy on uniswap see you later or another stable coin that doesn't do that see now the bankers are playing in our world in our game the market forces yeah if they adopt crypto protocols they adopt crypto values that is the back door here uh that's what David I believe anyway we got another question here this one is from sneak up yeah can you clearly differentiate ZK and optimistic rollups and the different narratives they hold oh that clearly prefixes doing a lot of work here yeah so optimistic Roll-Ups think of them as

a uh fractal off of ethereum they are ethereum but as a layer too they do everything that ethereum does and they settle down to ethereum ethereum as a layer two a ZK roll up uh is ethereum with zero knowledge cryptography as a layer two uh man getting to the nuances of this is actually pretty hard um think of ethereum with 10x better cryptography and compression and faster and cheaper fees that allow you to have so much computational resource that the limitations for putting almost anything on chain are basically gone and so for example uh you will see web 3 games on an optimistic

roll-up like Arboretum or optimism and what that means is that there are games that have assets inside of them on ZK rollups you will have fully on-chain games where the game engines and game logic themselves are actually smart contracts that is perhaps one way to illustrate this um that's all I got Ryan that makes sense I think one if you want to if you are a bank list listener and you want to go down the the crypto Rabbit Hole a little bit when I say crypto I mean cryptography right go check out an episode we did probably I don't know a year year and a half ago maybe longer David with Justin Drake it's called Moon and math okay and that I think is the philosophy fee around this what David

was saying is there are two types of ways to sort of scale things in crypto one is economic games that we can play like fraud proofs this is what optimistic technology does and the other is pure math pure Moon math pure cryptography and that is what ZK Roll-Ups do uh anyway if you want some more context for that that you'll find it there but ZK technology is kind of the Moon math equivalent way where we get um all of the crypto economic guarantees but through cryptography rathering rather than have having to pay for it David we got some takes of the week let's take this first one uh what's this Jim I'm gonna skip the first part

of this tweet um Jim tweets out banks are sovereign Roll-Ups that post data availability to the Fed I think it's a great take it's a great take okay Sovereign Roll-Ups as in they control their own Ledger a bank is a sovereign roll-up it has control over its own Ledger and that it posts data availability to the Fed so it takes the state of that ledger and tells the FED about it that is a sovereign roll-up with data availability posting to the fed and it actually works out quite literally we were talking earlier about fed now technology which is basically a big settlement chain that is the chain through which these Bank Sovereign roll-up ledgers actually post to they post back to Fed now right uh it's yeah

accurate David this is a tweet from you the crypto class of 21 and 22 have really earned their stripes God I'll say yeah we have haven't we yeah three hours Capital liquidation Voyager Celsius FTX uh a bank crisis of our banks the banks that we actually care about uh now Euler man like in the first half of 2020 22 I was like man these these kids got it easy yep and then the second half of 2022 came and like oh man these guys got a rough totally uh and so I follow up this just with this tweet saying in 2025 when you're all millionaires they will say that you remember how what it took to get to there you know really sweet

not Financial advice not Financial advice I don't know yeah I don't know how that's Financial advice but it probably is somehow uh Rashad Adams tweets out a whole bunch God we just we just have podcasts we just read our own tweets a whole bunch of tech entrepreneurs and Builders just learned why we need crypto I wonder what they're gonna do next what do you mean by this Ren I I do think that's part of the The Narrative shift that we're seeing here is like you have the startup Bank of the United States of Silicon Valley basically and all of the founders of all of these uh startups just got temporarily unbanked and then permanently unbanked didn't know whether they were going to get rug pulled or not from all of their like what they have to stop and think these are are Builders

these are Engineers these are people who want to create a different world and have the skills and talent to actually do that I think some of them some portion of that population probably got crypto pilled last weekend yeah and maybe some portion of them will understand why we're here why crypto exists in the first place and we'll use some of those skills to help us build out this crypto future that's what I mean it's this is when you learn right when PayPal locks you up remember Paul Krugman last week he was like he didn't say now I understand crypto he got locked out of PayPal though now he knows what the use case is he's probably going to consider that the next time he assesses what we're what we're trying to do here with uh uncensorable Financial

transactions and the value of that bullish there we go speaking of bullish David what are you bullish on man I am bullish Ryan on layer twos but here's what I mean by that uh arbitrum finally released his token like the most anticipated airdrop of all time in one hour from right now I don't know why I'm saying this one hour from right now Ryan you and I are live streaming with the arbitrim team so all the listeners that is already live and available for you to go consume op stack already has two major chains coinbase is building on the op stack we have two zkevms launching in the next 10 days we haven't even talked about that do people know about that do they remember that

two intense yes yeah mainnet DK evm main Nets we haven't even talked about everyone's focused on the arbitrome airdrop people are forgetting about the DK evm are getting launched and those are going to have tokens too by the way uh well one of them is polygons that token already exists uh there's also some Alpha an embargoed thing that I'm uh and recording don't say tomorrow don't say that will be released on Monday about layer 2 twos so that's happening like man all of the Innovation is happening in layer twos like we said Layer Two summer was gonna happen in in when did we say that 20 times 2021 I think we called the first layer two summer and then 2022. we got the second one here we are but we're calling it for

2023. it is currently happening we are in this is what layer two summer looks like yeah perhaps two years late sorry but here we are uh it's like yeah yeah I mean I'm bullish on there too yeah it's super bullish I think it's played out uh how we hoped it might and down to do you remember that episode we did about the modular blockchain thesis yeah um that's displaying up that was a while ago but it's playing out that way cool what do you watching Man David I am bullish on um Regulators that do their jobs oh how many of them let me introduce you to Hester purse all right she is an SEC commissioner and they

antithesis of Gary Gensler you know it occurred to me when bankless put out this tweet I was like we spend a lot of time on Gary Gensler in our Roll-Ups and our content and just as crypto we really do spend too much time on him I I want to take a minute to just thank Regulators who are actually doing their job Hester purse is one of them she is a certified American Badass she is principled she is smart she's willing to engage the crypto community and we are lucky to have her I'm thankful for this person that was um I think re-echoed to me as we had this uh interview we had a conversation with her earlier in this week that episode is going to come out on Monday it's already out for Citizens

she just calls it like it is yeah uh she's very honest we asked her questions like what is a security she's like you know I don't know and I I don't think the SEC has done a good job actually communicating with any Clarity on this right she said sorry I know this is what what you're excited about no say it she she said that the SEC is primarily interested in increasing its jurisdictional reach yeah Jesus said it how it was flat out said it she said focused on that rather than what they should be focused on which is principles and I just um just wanna be thankful for Regulators that are actually doing their job and and this is a broader thing that I think

is important for us to to realize in the United States and think across the world there is a growing frustrated majority that just wants everyone else to behave like grown-ups right stop playing the power games and like let's actually build something for the Future Let's actually build something we care about who's Hester in the conversation described a scenario which it just seems so simple but in in some way it was also a Utopia of just like the crypto community and Regulators coming together and having a conversation about the new imagine that about a new asset class and how this should be governed and regulated moving to the features and

what what parts were really decentralized what parts are centralized where the scammers and Bad actors were and how Regulators could go side by side in the crypto industry and move this technology of Freedom forward wow that can actually happen and I think there is a a majority of people who are sick of our institutions failing us sick of the power games want to get back to like building a productive society and so I'm just happy and bullish that people like this exist uh and uh I you know I'm thankful for our good Regulators they don't get enough credit and I think they should yeah 100 as much as people like Gary Gensler make us lose our faith in humanity people like Hester purse build it right back there you go uh meme of the week David what are we

looking at meme of the week this is from CMS Holdings uh dokwan makes basis cash and 17 dominoes later the U.S banking section is available thanks though that was his original stapleco coin uh by the way fun fact if you didn't realize that yeah that was the the one Domino before Terra Luna absolutely uh guys we gotta end it here none of this has been Financial advice it never is gotta re-emphasize that crypto is risky so is D5 you could lose what you put in banking system is kind of risky though too but we are headed west everything is risky it's all risky this is the journey that we're on it's the bank list journey and we're glad you're with us today thanks so much