IO.net Drama: Martin Shkreli Challenges 1.7M GPU Claims

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Good Morning.

BTC is teasing with the $60,000 support level. There are more signs that where we are currently might be more similar to the 2019 bull trap fractal, although without the black swan (read: COVID-19). Don’t get chopped up!

In Today's Email:

• What Matters: IOnet drama 🖥️ 

• Product: DODOchain L3 🕊️ 

• Charts: Solana NFT traders, 100M stablecoin holders 📈 

You read and share. We listen and improve. Send us feedback at [email protected].

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WHAT MATTERS

Martin Shkreli Challenges IOnet

State of play: Martin Shkreli raised concerns about io.net’s GPU supply and alleged botnet use in promotions. Shkreli also accused io.net’s founder and CEO, Ahmad Shadid, of engaging in fraudulent activities in the past.

• io.net claims that it has 20,000 A100 GPUs and over 520,000 GPUs and CPUs in the network.

• Shkreli points out that despite the claim of having an enormous GPU supply, io.net’s available GPU appeared to be 0.

• Shkreli disputes io.net's claims of having around 70K active and 564K total GPUs, noting only 11K GPUs listed on their explorer and just 320 available for rent.

• In his latest finding, Shkreli points out that io.net claimed to have 1.7M GPUs, more than AWS, GCP, Azure, and Meta combined.

• Shkreli also shared a screenshot of an unnamed VC that accused Ahmad Shadid of being a well-known scammer in Arab countries.

Shadid claimed in a post-mortem that io.net was exploited by users attempting to spoof GPU availability in return for future rewards. io.net saw an enormous spike of ~1.8M fake GPUs attempting to connect to the network.

• The issue has been addressed with security upgrades, according to the post-mortem issued by io.net.

What’s next: Regardless of what’s true, Ahmad Shadid has not publicly refuted some of the claims made towards him.

Our take: This is a bad crisis management strategy. In an industry that actively embraces financial populism, you want be as raw and authentic as possible when addressing concerns and conducting communication.

For builders and investors: Assessing founders’ background and personality is the single most important factor when doing diligence for a private investment.

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our list of 500 crypto VC individuals 👇

PRODUCT OF THE WEEK

DODOchain: The First Omni-Trading L3

DODOchain is a L3 Omni-Trading platform powered by Arbitrum Orbit, designed to bridge BTC L2 and ETH L2 effectively, consolidating liquidity into a unified trading environment.

• DODOchain leverages advanced cross-chain technology, market-making algorithms, and L3 architecture.

• It connects EVM and non-EVM ecosystems, providing a seamless, secure trading experience where users can trade tokens, raise funds, and restake earnings.

• DODOchain positions itself as "The Rollup as the Liquidity Layer."

DODOchain features include:

• Omni-chain Liquidity Outposts: Offering Omni Trade, Omni Liquidity, and Omni Mining.

• BTC L2 and ETH L2 Connector: Connects BTC L2 and ETH L2, encompassing Non-EVM Chains to broaden the user base and asset pool.

• Native Restaking Yield: Provides native staking yields for various assets.

• Omni Liquidity: Supports projects in establishing liquidity on any chain and assists users in engaging with new asset liquidity and trading.

Other cool products:

• Coinsub, a crypto payment platform.

• Hitdex, a multi-chain crypto trading platform.

• Paycbn, an e-commerce with crypto payment.

• Hexn, a crypto portfolio management platform.

• Twift, a cross-border payments platform using stablecoins.

CHARTS OF THE WEEK

Solana Daily Active NFT Traders ATH

Credits to OurNetwork for the Original Report.

State of play: Solana's daily active traders hit a record high of 59.3K on April 23, quadrupling from about 15k the week before April 21.

• This surge was fueled by wallets trading under $10 daily on Magic Eden and Tensor.

• Over the past week, Magic Eden held 74% of Solana's trading volume and 38% of its trader market share.

• Tensor accounted for 18% of the volume and 61% of the traders.

Our take: Solana’s speed continues to be its edge in attracting retail speculators and builders.

Stablecoins Approach 100M Holding Addresses

Credits to OurNetwork for the Original Report.

State of play: Stablecoins might lack the allure of re-staking or AI innovations, yet they are the most widely used crypto product.

• Currently, there are 93.5M crypto addresses holding stablecoins.

• Tether dominates this space, accounting for over 76M holders.

• USDC has 9.8M holders, and BUSD has 6M holders.

• Despite the bear market, stablecoin activity remains robust, with monthly active addresses frequently reaching new highs.

• In March 2024, over 25M addresses transferred a stablecoin.

• Nearly 80% of these transactions occur on TRON and BSC, followed by Solana and Ethereum.

Our take: Although stablecoin looks like it has somewhat matured, it will continue to grow as it arguably has the largest TAM.

QUICK BITES

• Yuga Labs restructures company.

• Lazarus Group poses as Fenbushi executive.

• South Korea to officialize crypto investigative unit.

• Custodia files an appeal to its Fed master account case.

• Optimism patches critical testnet flaws after a rival’s tip-off.

• Warren flags crypto ties to child sexual abuse in letter to DOJ.

• EU Parliament adopts AML rules package, also policing crypto.

• BlackRock’s IBIT adds Moonpay’s Chief Legal Officer to the fund’s board.

• Australia’s largest stock exchange could list Spot Bitcoin ETFs by the end of 2024.

NOTEWORTHY READS & MEME

• @explain_briefly’s read on Heroglyphs.

• Our Network’s read on NFT marketplaces.

• Alex Gedevani’s read on real-time money streaming.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.