🏝️ Will Coinbase Move Offshore?

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Good Morning,

There seems to be an ongoing exploit targeting crypto OGs.

MetaMask’s developer, Tay, tweeted that 5,000+ ETH has been stolen across multiple MetaMask’s wallets since December 2022. The method of the exploit is still unknown.

“My best guess … is that someone has got themselves a fatty cache of data from [over a year ago] and is methodically draining the keys as they parse them from the treasure trove.” — Tay

Let's dive in.

In Today's Email:

• What Matters: Gensler grilled & Coinbase’s next move 🤔

• Case Study: Taylor Swift avoided FTX 💃

• Governance & Features: Uniswap iOS wallet is live 📱

WHAT MATTERS

Gensler Hearing and Coinbase Futures

State of play: SEC Chair Gensler appeared before the House Financial Services Committee. He was questioned on multiple rules and enforcement actions that the agency has done since he took office.

• Gensler refused to make a clear statement whether Ethereum is a security.

• Gensler refused to admit that there’s a lack of clarity on crypto regulation.

• Gensler was questioned as to why he took action on US-based regulated firms such as Coinbase and Paxos instead of offshore players.

Why it matters: Unclear and aggressive regulation by enforcement from US regulators will drive crypto innovation abroad — not only to emerging markets, but also to friendlier mature markets such as the EU and UK.

For builders: We’re beating a dead horse, but please hedge your regulatory risk — build offshore if you can, and target lucrative markets with clear regulations outside of the US.

• Even Coinbase may consider relocating the company away from the US.

For investors: Crypto is a global asset. With increasing regulation, and capitalizing on the quiet time of this bear market, investors should aim to increase their deal flows, networks, and connections on the ground in places such as Singapore (SEA), Hong Kong (APAC), and London (UK-EU).

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CASE STUDY

Marketers Dilemma: Taylor Swift and FTX

State of play: The lawyer leading a class action lawsuit against FTX promoters such as Shaq and Tom Brady stated that Taylor Swift was one of the few celebrities that did her homework.

• Swift was close to signing a $100M deal with FTX.

• Her team asked FTX: “Can you tell me that these are not unregistered securities?”

• The deal fell through after FTX couldn’t provide a satisfactory answer.

Our take: The root cause of this problem isn’t celebrities promoting unregulated securities. It’s because of the lack of regulatory clarity on whether or not are digital assets traded on crypto exchanges are/were securities in the first place.

• This class action lawsuit is arguing the same logic as the SEC’s, that the majority of these digital assets are securities — this is not proven.

• What if Tom Brady was to promote Coinbase instead, and things are going along just fine?

One should be asking why didn’t the SEC move earlier and made things clear. That’s a more sure-fire way to ensure consumers’ protection.

Also, institutional-level investors have a much clearer mandate and responsibilities regarding their diligence on companies compared to marketers. This is why we have SOP and audits on diligence processes. But at the end of the day, a savvy enough fraudster might still be able to navigate through all the diligence.

What we need: More mandates around disclosures when it comes down to advertising, and a better regulatory clarity from the SEC.

Take a peek at our new referral reward at the bottom of this issue. Share this newsletter and receive our list of 100 smart crypto investors' wallet addresses 👇

FEATURES & GOVERNANCE UPDATE

Uniswap Wallet Launches on iOS

Uniswap wallet out of the Apple jail. The leading decentralized exchange mobile wallet is finally live on iOS. Uniswap had planned to launch the product earlier but the go-live was blocked by Apple.

• Many suspects the delay we because Apple wanted to get the 30% cut of any transactions, which is not feasible in a DeFi environment.

• The wallet is now available for users in the US, UK, and France.

• Ethereum, Polygon, Arbitrum, and Optimism chains are supported.

Why it matters: MetaMask’s margin is Uniswap’s wallet opportunity. Take a look at MetaMask’s revenue. By going further down the stack, Uniswap can directly own their end users’ experience.

• It’s already the number one DEX, it makes sense for Uniswap to also own the wallet experience.

Other notable feature updates:

• Uniswap launches its wallet on the App Store.

• Ondo introduces yield-generating stablecoin.

• EOS launches EVM beta.

• Shell Protocol launches an NFT AMM.

• Bancor proposes to launch Carbon, a new AMM.

• Maple announces US Treasury pool.

QUICK BITES

• Tribe Capital interested in FTX exchange restart plan.

• Peter Thiel’s Founders Fund hired Joey Krug (ex Pantera Co-CIO).

• SEC Gensler grilled by Republicans during hearing.

• a16z teased a possible L2 token based on Optimism.

• Lido surpasses $12B in TVL.

• MetaMask experienced a mysterious exploit on certain wallets.

• Intel discontinues Bitcoin-mining blockscale chips.

• Bybit opens global HQ in Dubai.

• Nike expands its crypto initiatives.

MEME & NOTEWORTHY READS

• Amber Group’s read on decentralized social networks.

• Li Jin’s op-ed on anti-crypto regulators in the US.

• @tayvano_’s thread on mysterious MetaMask exploit.

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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.