🎰 Degen Who Slammed Terra as ‘Ponzi’ Dares Founder to Bet $1M on LUNA — and He Did
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By Samuel Haig
SCHEME On March 14, ‘Sensei Algod’, a pseudonymous degen and investor who’s called Terra a ponzi scheme, made the project’s community an offer it shouldn’t refuse: a cool $1M if the price of LUNA is higher in 12 months.
WAGER Do Kwon, the founder of Terraform Labs, accepted the bet and put up the funds. The wager captures the strong feelings Terra investors have toward its native token and ecosystem. No sooner did the news hit than another trader raised the stakes to $10M, which Do Kwon also accepted.
ASSET The meteoric rise of LUNA over the past month has made new millionaires and ruffled feathers across the crypto community. The token is currently the seventh-largest crypto asset with a $34.7B capitalization after rallying 1,460% since the start of July 2021.
DOUBTS But the enormous price gains have come amid increasing doubts about the sustainability of the network’s algorithmic stablecoin, UST, and top protocol, Anchor, which has been the subject of a flurry of moves. Many onlookers are skeptical LUNA’s bullish momentum can continue for the longer term.
By Owen Fernau
FLOOR PRICES It’s not everyday that the hottest two projects in an explosive asset class merge. That’s what happened on March 11 when Yuga Labs, the company behind Bored Apes Yacht Club (BAYC), announced the acquisition of the intellectual property rights (IP) of CryptoPunks. The market responded as dramatically as you’d expect: Bored Apes’ floor has jumped 18% to almost 90.0 ETH, while Punks’ is down 6% to 72 ETH.
SALES VOLUME The two projects were within less than one ETH of each on the day of the announcement, with BAYC’s floor at 76 ETH and CryptoPunks’ at 76.34, according to a Dune Analytics dashboard which compares the two. At $1.4B according to CryptoSlam, BAYC has the second largest sales volume of all-time, trailing only CryptoPunks, which is $2.1B.
COLLECTIONS Yuga Labs also acquired Meebits’ IP as part of the deal; both Meebits and CryptoPunks were created by Larva Labs. The BAYC creator is now drafting new terms and conditions for its two new collections per the company’s announcement of the acquisition.
Guest columnist Ryan Berkun argues that regulation presents DAOs with an opportunity to organize and strengthen their systems.
REGULATORS More than $200M is currently locked in DeFi protocols, which indicates massive market potential given DeFi’s relatively recent rise. Regulators are paying attention and cracking down on centralized platforms offering DeFi services. BlockFi’s recent $100M settlement with the U.S. Securities and Exchange Commission and agreement to register its crypto lending product is a warning to all DeFi platforms of what’s to come.
CERTAINTY Regulator enforcement is inevitable, as President Biden’s executive order last week made clear. Rather than resisting this certainty, DAOs (decentralized autonomous organizations) should welcome compliance as a strategic way to legitimize and grow DAO membership. Just look at the success of Syndicate DAO, which grew to encapsulate 10% of all DAOs in weeks. Why the rapid growth? Syndicate DAO provides users launching through their platform with all the legal documentation needed to set up investing groups compliantly.
DEMOCRATIZED DAOs may be disruptive, but that doesn’t mean they won’t thrive within legal boundaries. It’s time for DAO creators and lawmakers to redraw the lines. DAOs are self-governing entities: instead of relying on CEOs and CFOs to control organization funds, DAOs are enforced by blockchain-based smart contracts, the rules of which are determined by DAO member votes. Put simply, DAOs offer entrepreneurial groups a radically democratized way to run their organizations, whether they are investment companies, social groups, or artifact hunters.
How To Guides
This Defiant guide by contributing writer Arya Ghobadi is designed to help you navigate and use MetaMask, a crypto wallet and a gateway to blockchain apps.
TRANSFER MetaMask allows you to store cryptocurrencies and makes interaction with decentralized applications or DApps. Currently, Metamask has more than 21Musers. If you want to transfer Ethereum to your friend, you will need to set up a node and use your private key to sign and approve the transaction.
CRYPTO WALLET This contains an amount of coding and at some points, difficult to do if you have no knowledge in coding. MetaMask, similar to any crypto wallet, gives you the chance to do that with a simple click of a button. MetaMask is a software crypto wallet that comes as a browser extension. It also has a mobile application.The browser extension is available for:
FUNCTIONS It doesn’t matter what type of device you are using, this mobile application is available both for IOS and Android devices. MetaMask performs two main functions:
By Owen Fernau
DEALBREAKER In crypto, the land of the pseudonymous, dating back to the space’s masked founder Satoshi Nakamoto, asking for personal information is often considered a dealbreaker.
SELFIES So when Bored Ape Yacht Club, perhaps the world’s most well-known NFT collection, dropped a link on their Twitter account which asked people for their passport details, real names, addresses, and even selfies, they unsurprisingly met strong pushback.
NEGATIVITY “BAYC is asking people for KYC now…” tweeted the crypto influencer who goes by theweekend.eth. “It’s a wrap for Bored Apes.” The negativity towards Bored Apes was exacerbated by the lack of details about the project for which this personal information is being collected.
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The Daily Gwei Refuel gives you a recap every week day on everything that happened in the Ethereum and crypto ecosystems over the previous 24 hours - hosted by Anthony Sassano.
The transition from Proof of Work (PoW) to Proof of Stake (PoS) is Ethereum’s most anticipated milestone since its inception.
Binance, the world’s biggest crypto exchange by trading volume, announced earlier on Tuesday that it will be temporarily pausing deposits and withdrawals for Polygon (MATIC) Network.
Bob Iger, the former CEO of the Walt Disney Company, announced today on Twitter he is joining the board of directors of Genies, a digital avatar platform built on the Flow blockchain, a protocol for NFT collectibles and large-scale crypto games.
Trending in The Defiant
Call to Reduce Yield Payouts to Save Anchor Protocol Roils Terra Community The Terra community is again divided on the future of the network’s leading protocol, Anchor. And the question of how it can maintain high yield payouts is at the heart of the matter.
Exclusive DappRadar Report: How Russia’s War and the West’s Response is Impacting Crypto When Russia launched an unprovoked invasion of Ukraine, its neighbor and trading partner, the world reacted in horror and anger.
Cronje’s Exit Hits Yearn and Fantom as Defenders Scramble to Shore up Confidence The crypto markets have been punished recently, but tokens associated with Andre Cronje have taken an extra beating in the wake of news he is quitting DeFi.
🧑💻 ✍️ Stories in The Defiant are written by Owen Fernau, Samuel Haig, DeFiDad, and yyctrader, and edited by Edward Robinson, yyctrader, and Camila Russo. Videos are produced by Robin Schmidt, Alp Gasimov and Daniel Flynn. Podcast is led by Camila, edited by Alp.
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