The Dogefather sends his regards, TechCrunch

Welcome back to Chain reaction.

Last week we looked at the crossover episode for the introduction of the meme. This week we’re talking about Musk throwing tokens while holding onto others.

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Dumping allowance

A weekly post from the TechCrunch cryptic editor’s desk Lucas Matney:

Elon Musk shared that Tesla sold some Bitcoin this week. Well, to be fair, they sold an awful lot of Bitcoin… tens of thousands of coins.

And while Tesla’s announcement last year that they were buying Bitcoin sent prices over the moon, Wednesday’s revelation that they sold 75% of their Bitcoin holdings in Q2 didn’t dramatically affect the crypto market, which has BTC prices fell last week. pump and Ethereum shot even higher (though still below prices from a few months ago).

At the end of the day, Tesla was one of the corporate owners of Bitcoin, and Elon Musk was the currency’s highest billionaire hype man, at least for a while. As its shares appear to be falling in crypto circles, crypto Twitter was widely upset by the announcement, with some suggesting that crypto holders should join those shorting shares of the electric car maker.

Hidden in this revelation that the company had unloaded nearly $1 billion worth of Bitcoin was Musk’s small admission that Tesla held the Dogecoin and didn’t sell any of it. What was not clear from this announcement is how much Dogecoin Tesla actually has. Musk tweeted that he owns it, and Tesla has accepted Dogecoin payments for products on its website for months, but they have not disclosed purchases of the cryptocurrency.

I tried do some napkin math about how much Dogecoin the company can hold this week.

The company revealed that it currently has $218 million in digital assets after selling $963 million worth of bitcoin. Most of that $218 million is likely his remaining bitcoin.

Tesla reportedly had about 42,000 bitcoins in the second quarter, so after selling 75% of them, it should have about 10,500 bitcoins at the end of the quarter. Now, in order to determine exactly what part of that total Bitcoin is, we need to know exactly when the photo was taken. It is believed to have been taken on the last day of June, when the fiscal 2nd quarter ended, so 1 bitcoin traded between $18,750 and $20,300 during the day, which for 10,500 coins would mean about $197 million to $213 of its total “digital assets”. million. “, would be Bitcoin.

After all, Musk’s claim that Tesla is holding on to its Dogecoin was probably more about the kind gratitude of that Twitter community for holding on to everything else, especially when his Twitter transactions got some attention. to its popularity among retail investors.

the last pod

Over the past month, Chain Reaction has covered a lot of negative news as token prices have plummeted and web3 companies have suffered as a result. The pain is far from over, but crypto prices have seen a pretty significant recovery this past week, with ETH up 45% for the week. Lucas and Anita talked about what might be driving the growth, although they also had to talk about the much more painful news of layoffs at OpenSea.

Both co-authors have been hard at work this past week on two separate feature articles dealing with current crypto news, so they pulled them off the show. Anita spoke his piece Regarding increasing competition among crypto exchanges for the US market (and which one is likely to win), Lucas shared: his thoughts on Yuga Labs’ highly hyped Otherside metaverse video game as one of its first players.

Subscribe to Chain Reaction Apple:, Spotify: or your alternative podcast platform to stay with us each week.

follow the money

Where are startup money moving in the crypto world?

  1. Running cryptography developer tools Sunscreen raised US$4.65 million in seed funding led by Polychain.
  2. OpticsThe AI-based NFT identifier has raised $11 million in a seed round led by Kleiner Perkins and Pantera.
  3. Zebedee raised $35 million in a Series B round led by Kingsway Capital to develop Bitcoin-based game payments.
  4. Blockchain cybersecurity startup Halborn raised a $90 million Series A led by Summit Partners.
  5. Uncaged Studios: Raised $24 million from investors including Griffin Gaming Partners and 6th Man Ventures to build crypto games.
  6. NFT brand loyalty platform Hang up has invested $16 million in new Series A funding led by crypto venture firm Paradigm.
  7. Balance wallet messaging app lines Raised $4 million in seed round from investors including Elad Gil and Scalar Capital.
  8. Crypto Corporate Treasury Company Meow: closed a $22 million Series A round led by Tiger Global.
  9. Data infrastructure provider Empirical network It raised $7 million in its seed round from investors including Variant and Alameda Research.
  10. Web3 Security Auditor Safe 3: Raised a $5 million seed round led by Mirana Ventures.

week on web3

A weekly window into the thoughts of a web3 reporter Anita Ramaswamy:

A few times recently, I’ve heard people in the crypto industry say that a bear market will separate the good companies from the bad. Former SEC Chairman Jay Clayton put it more bluntly at the Bloomberg Crypto Summit on Tuesday, saying that regulators should make it their priority to respond to the “garbage” happening on web3.

Clayton referenced the ICO boom of 2017 when describing the aforementioned garbage, a period during which all kinds of rampant scams and securities scams unfolded within crypto. I couldn’t help but wonder… has crypto made any material progress since then, improving its reputation as a haven for evildoers?

For US lawmakers, the answer appears to be yes, perhaps because they are loathe to stifle what has proven to be a substantially large industry worth millions (or billions in a powerful market) of dollars. So, despite their slowness, they finally get around. In particular, US Senators Cynthia Lummis and Kirsten Gillibrand proposed a bipartisan crypto bill last month that has been on everyone’s lips. The pair appeared at the Bloomberg Summit to share an update on the status of the bill after it was introduced. Gillibrand shared that while some provisions will move forward, the entirety of the legislation will likely be delayed until next year.

However, there are two provisions in the bill that Gillibrand predicted could garner consensus far ahead of the rest. The first is a set of rules for banks that want to issue stablecoins. understandably, they are a particular concern for lawmakers in the wake of the Terra fiasco. The second is the part of the bill that would make the CFTC the primary regulatory body overseeing crypto, which he said is currently being finalized in committee. Congress will be able to vote on this provision before the end of the year, he noted.

While US lawmakers and regulators will likely always drag their feet on crypto because they don’t want to be seen as stifling innovation, the new bill appears to be moving right along, faster than many expected. It’s not exactly a sudden shift from 0 to 100, but it’s very possible that the US is on the verge of a faster and more furious regulatory response than most of the web3 could have imagined just a few months ago when markets were doing better. were in condition.

TC+ analysis

Here’s some of this week’s crypto analysis, courtesy of our subscription service TC+ Senior Correspondent Jacqueline Melinek:

Regulators must address crypto ‘junk’ first, says ex-SEC chairman Clayton
As the crypto industry continues to evolve, regulators around the world are looking for operational and legal frameworks to guide their operations to more effectively monitor the industry. While there are “huge numbers of responsible players” in the industry, there are also irresponsible ones, former US SEC chairman Jay Clayton said at the Bloomberg Crypto Summit conference on Tuesday. “And regulators should respond to litter first. That’s the thing.”

NFTs have the potential to become media companies, says Rarible co-founder
As NFTs work to maintain mainstream focus, one of the founders predicts that the digital asset sector will turn in a new direction. “I think NFT collections will evolve as media companies [into something] like Disney,” Alex Salnikov, co-founder and head of product at NFT marketplace Rarible, told TechCrunch. In recent months, major blue-chip NFT projects such as Bored Ape Yacht Club (BAYC) and Doodles have moved their collections out of images-only and into different sectors, which could be the start of a major NFT expansion, Salnikov said. : said:

Some venture investors are doubling down on crypto despite an unknown recovery timeline
Crypto markets may be in the red across the board, but that’s not stopping many venture capitalists from investing in the space. People who have entered the crypto market for a short time, namely tourists, are “going home already,” Craig Burrell, a partner at crypto-focused Reciprocal Ventures, joked to TechCrunch. But a number of VC firms see the space as a huge opportunity, though it may be a few years before there is measurable traction.

MetaMask’s co-founder sees a developer-driven future for his crypto wallet
Six years ago, MetaMask was founded and today it is the largest non-custodial crypto wallet. But that wasn’t always the plan, co-founder Dan Finlay told TechCrunch. “We thought it was going to be a quick in-and-out. Aaron thought we’d work on it for a few weeks. I thought it would be a few months. It quickly became clear that this was not the case.” The team is now experimenting with a hands-off approach to have “fewer opinions” and get out of users’ way.

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