SEC loses again. Bull market back on?

Week in Review:

This week has been about the SEC and the regulatory landscape in the US.

SEC vs Grayscale

In 2022, Grayscale sued the SEC for rejecting its application to convert its Bitcoin Trust, GBTC, into ETF. Their point of contention was the SEC was arbitrarily picking winners and losers. The court agreed and said the SEC was acting “arbitrary and capricious” in rejecting Grayscale’s ETF application.

How did markets react?

Prices initially reacted positively as BTC and ETH rose 6.2% and 4.6%, respectively.

Unfortunately, the enthusiasm was short-lived. While the ruling has positive signals for the future, the SEC still impedes crypto’s progress. Even after losing the lawsuit on Friday, the SEC elected to delay all seven ETF applications.

BTC and ETH corrected the entire move and are back at the $26K and $1.6K levels.

Uniswap

A NY judge threw out a class action lawsuit that attempted to hold Uniswap personally liable for scam coins listed on the platform. The judge determined this was a “stretch of federal securities claims.” The judge also claimed BTC and ETH are commodities in the filing. Read more here and read Hayden’s thread to better understand why this case is important.

 My crypto twitter journey

I wanted to give readers a little background into myself and how I’ve become involved with Crypto Twitter. Here it is:

I’ve been lurking on Crypto Twitter since late 2016, but only last year did I decide to take content creation seriously. I first bought crypto in 2016 and was looking for places to learn more. I first found Reddit. While I got some value from it, nothing compares to Twitter.

The first time I found Crypto Twitter, it felt like I entered a new world. Random accounts talking trash. Everyone shilling their bags. Memes on steroids. I was back in the hockey locker room joking with the guys. I was hooked.

I never realized how it would change the course of my career.

I wasn't into social media growing up. I am introverted, so posting pics or commenting about food didn’t appeal to me. But this was different.

I was drawn to it. 

Twitter exposes you to what the best minds in business are doing. You can’t get this anywhere else. I made money on early altcoin calls and seeing the ETH community form from its infancy. I lost money on buying FOMO and getting dumped on by influencers. I made all the beginner mistakes. I learned from both.

But even though I was getting a lot out of twitter, I always felt like I was on the outside looking in. I didn’t have a large following and had no network to speak of. In the information totem pole, I was at the bottom. I was playing crypto on hard mode and vowed to change that. 

However, I realized 2021 was too late. It’s like when your friend only buys crypto after it hits a new ATH. I was starting from zero, and my content sucked. But what I did have was a long-term outlook. I knew 2022 would be a bad year. I didn’t get caught up in supercycle nonsense. I said during the bear market I would give crypto a shot. Build a business, build a network, and go heavy on research.

I left my tech job to go full-time. Here I am a year later in the depths of the bear market. Now I’m addicted to it. I enjoy the writing and creating process. 99% of people consume content. 1% create. There are so many benefits to creating. You meet people. You do deep research to make your work better. You see narratives play out in real time. I don't regret my choice for a second. I have a purpose I didn't have in my 9-5. My advice for people in a similar situation is go for it.

We're still early to the next bull market.

• Twitter/X: Adds “X coin” to code signifying an eventual shift to payment integration

• BitBoy: In an odd series of events, popular Youtube influencer Bitboy was kicked off his own platform.

• Coinbase CEO: Shares 10 start-up ideas for cryptocurrency founders to focus on.

• Goldman Sachs: Sees a 20% chance of recession in he next 12 months

• Aerodrome: Launched on Base. They quickly attracted $28M in TVL

• Etherscan: Announced support for Scroll network - a native zkEM

• Chainlink: Swift successfully transferred tokenized value across multiple blockchains using Chainlinks Cross-Chain Interoperability Profile (CCIP)

• MakerDao: MakerDAO's Enhanced Dai Savings Rate brought over $1 billion of inflows to $DAI. The community is split over whether this is good or bad.

• Lybra: Unveiled their v2. Token holders must migrate to token balances to v2 by September 30th.

• Curve: Opens three pools on BASE: Tri-crypto, cBETH, & 3c.

• Gains: Re-hauled their UX. Smark money had been accumulating last week in anticipation

🫡 Chart of the Week

What started as enthusiasm early in the week is now depression. BTC has corrected the entire Grayscale move and is at the exact same spot as the beginning of the week - $26K level. It seems no amount of good news can resurrect prices.

See you next week,

Mid-Curve Team

The Mid-Curve newsletter is intended purely for educational and informational purposes and should not be construed as financial advice. We encourage all our readers to conduct their own research or seek advice from a certified financial advisor before making any investment decisions. Please note that members of the Mid-Curve team may hold positions in some of the investments discussed in our newsletter.