Funding Rounds, China Can't Ban Crypto, & We Need Your Help

CoinSnacks

May 25, 2022 | Issue #221

Sponsored By:

Coin Snacks

 MUST READS 


We're Hiring

As you'll see above, today is the 221st issue of CoinSnacks.

That means, our small team has been writing, editing, and publishing up-to-date crypto news for over four years now. In crypto years, that's nearly a lifetime...

Although in that time we've slowly grown our team, we realize that in order to serve our readers correctly – to treat them the way we would want to be treated if our roles were reversed – we need to invest more.

That's why, we are looking to hire a writer to help us take CoinSnacks to the next level. We are looking for someone who is enthusiastic and knowledgeable in the space, but able to take complex subjects and make them digestible for readers.

If that sounds like you, you can click here to learn more about the position, or you can just reply to this email and we can get the conversation started ASAP.

Billions of Dollars Continue to Flow Into Crypto, Potentially Bucking 'Crypto Winter'

While crypto naysayers are giddy with glee and newcomers to the space are worried about "crypto winter," real capital seems to be deaf to the conversation.

Regardless of the market's recent drawdown, billions of dollars are flowing into the system from nearly every direction. As JPMorgan points out in a research report published today, the Terra/Luna saga has done little to deter investment:

“Thus far there is little evidence of VC funding drying up post-Terra’s collapse. Of the $25 billion VC funding year-to-date, almost $4 billion came after Terra... Our best guess is the VC funding will continue and a long winter similar to 2018/2019 would be averted.”

Here's what we have seen in just the past week:

Company Funding:

  • StarkWare, an Ethereum scaling company focused on ZK-rollups, raised $100 million at an $8 billion valuation. To put this raise in perspective, StarkWare raised at a $2 billion valuation only 6 months ago.
  • Babel Finance, a crypto lending business, raised $80 million at a $2 billion valuation.
  • LayerZero Labs is in the process of raising at a $3 billion. Putting this one in perspective as well, the company raised $135 million at a $1 billion valuation as recently as late March.
  • Flowcarbon, a blockchain-enabled carbon credit trading platform backed by WeWork founder Adam Neumann, has raised $70 million in its first major funding round.
  • Protego Trust Bank targets $2 billion valuation after quietly raising $70 million.

New Funds:

  • a16z today announced a new, $4.5 billion fund. Of the $4.5 billion, approximately $1.5 billion will go to seed investments, and $3 billion to venture investments. a16z has now raised a total of $7.6 billion across their four crypto focused funds.
  • Standard Crypto has raised a new $500 million fund, according to a report from Axios.
  • Volt Capital, a crypto firm focused on early-stage deals, raised $50 million for its second fund today.

Mergers & Aquistions:
As we predicted at the beginning of this year, 2022 will shape up to be a year of M&A.

This week, CNBC reported that FTX is in talks with at least three privately held brokerages: Webull, Public, and Apex Clearing. If the reports are true, it could be proof that FTX is looking to gather a large swath of traditional equity investors quickly and at a discounted price.

This is all happening at the same time that FTXs CEO purchased a 7.6% stake in Robinhood (HOOD).

 SPONSORED 


The Web3 Way to Trade Crypto


Coin Snacks

Meet Slingshot, the web3 trading platform that lets you trade over 7,500+ crypto tokens at the best prices, all at lightning fast speed.

Slingshot works like a search engine. If a token exists, it's made available to trade at the best price possible. Plus, any positive slippage is yours to keep. View real-time charts and market data on every token, and live chat with traders all over the world. Trade now on desktop, and grab your spot on the mobile waitlist.

When you join the mobile waitlist and invite friends, you can earn up to $2500 in fractionalized NFTs from top collections like Mutant Ape Yacht Club, Azuki, Doodles, Cool Cats and more. Plus, a chance to win 1 BTC.

Join over 1.7 million people signed up for the waitlist, and experience Slingshot now on desktop.

Sign Up Now.

 DEEP DIVES 


Beating China's "Great Firewall"

Last year, for those that don't remember, China began taking drastic steps to crack down on crypto. As a recap, China essentially banned ALL crypto-related transactions as well as passed an outright ban on crypto/bitcoin mining.

As the ban went into effect, the country's leading share of global bitcoin mining capacity plummeted in a matter of weeks, briefly causing widespread panic in the markets.

But today, almost one year later, data is showing the opposite.

New research from the Cambridge Centre for Alternative Finance (CCAF) shows that Chinese bitcoin mining activity has quickly rebounded. According to researchers, China now makes up about 20% of the total bitcoin mining market, meaning that China is once again a top global player in bitcoin mining, second only the U.S.

Wait.. How Is This Possible?
Because of the permissionless nature of the global Bitcoin network, "guerilla" or underground miners seem to have found ways to avoid detection – including using off-grid electricity sources like hydropower produced by small dams that aren’t connected to the main grid.

Note: Mining data is extremely difficult to accurately collect. Therefore, we cannot fully trust CCAFs data in its entirety, as pointed out in this article. Our point, rather, is to show readers that the CCP has failed to completely abolish bitcoin mining and that the underground Chinese mining industry still plays a large role.

Can't Stop, Won't Stop
Interestingly enough, underground mining is not the only way the citizens of China are circumventing the strict surveillance of the CCP and their guidelines against the use of crypto. Take a closer look:

  • NFTs: As Chinese internet censors have stepped up efforts to scrub content from social media during the pandemic, web users have increasingly turned to NFTs as a way to secure images, videos, audio & social-media posts on a blockchain to prevent their deletion. As WSJ reported, for example, hundreds of NFTs are now listed on OpenSea without a price tag, a sign they aren’t really intended for sale. Used properly in conjunction with other technologies, NFTs offer a way to preserve data-rich media on the blockchain – an interesting NFT use-case that many (including us!) have failed to recognize
  • IPFS: Censorship activists are also turning to decentralized web protocols like Filecoin's (FIL) InterPlanetary File System (IPFS). Via IPFS, files can be stored, scattered across the network, and encrypted, in turn making it difficult for authorities to remove or block content. IPFS can also help Chinese residents gain access to millions of books, scientific articles, and other banned works. Furthermore, Cloudflare, an internet infrastructure company, recently announced new tools to make it possible for users to host and serve content on IPFS. According to Coinbase Bytes, around 2.5 billion gigabytes of highly censorship-resistant data is already hosted on decentralized IPFS servers. That’s the equivalent of tens of thousands of copies of Wikipedia.

Putting It All Together:
As the CCP continues on their path to track the digital footprint of every single one of their citizens, and individuals attempt to circumvent the surveillance, it will be interesting to see how crypto's open-source and decentralized landscape plays a role in China's "Great Firewall."

The Interesting Difference Between Crypto Users & Investors

The Fed recently released their annual Economic Well-Being of U.S. Households report where they surveyed 11,000 individuals between October and November of 2021.

To better understand consumer experiences with emerging products, the central bank included questions surrounding crypto for the first time ever. Below are the highlights.

General Statistics:

  • 12% of adults held or used crypto in the 12 months prior
  • 11% of adults held crypto as an investment, while a far smaller 2% of adults said that they used crypto for transactional purposes (to buy something or to make a payment)
  • Only 1% used crypto to send money to friends or family

A Closer Look At That 11% (Adults Who Used Crypto For Investing Purposes):

  • Those who held crypto purely for investment purposes were disproportionately high-income, almost always had a traditional banking relationship, and typically had other retirement savings
  • For example, 46% of those using crypto only for investment had an income of $100,000 or more, while just 29% had an income under $50,000

A Closer Look At That 2% (Adults Who Used Crypto For Transactional Purposes):

  • The financial profiles of those who used crypto for transactions were quite different
  • For example, nearly 60% of adults who used crypto for transactions had an income of less than $50,000. And roughly only 24% of transactional users had an income of more than $100,000
  • Transactional cryptocurrency users also were less likely to have a bank account; 13% were unbanked, compared with 6% of unbanked adults who did not use or hold any crypto
  • Similarly, 27% of transactional cryptocurrency users did not have a credit card, exceeding the 17% of non-users without a credit card

TL;DR?
The power of crypto banking the unbanked is a real narrative that's happening not only in impoverished countries like El Salvador and the Central Africa Republic. It's also happening right here in the U.S.

 SPONSORED 


Get Smarter In 5 Minutes


Coin Snacks

There’s a reason over 4 million people read Morning Brew - the free daily email covering the latest news from Wall Street to Silicon Valley.

Lets face it: traditional business news is dry, dense, and boring. But Morning Brew is written in a witty yet conversational tone that makes reading the news actually enjoyable.

Best part? It’s 100% free and only takes 5 minutes to read so that you can get all of the most relevant updates and move on with your day.

Try it today.

 REGULATORY FRONT 


Crypto Billionaire Says He Could Spend A Record $1 Billion In 2024 Election

We are addressing this story in the regulatory section of the newsletter because regardless of what is said, this money will ultimately influence regulation and policy.

This week, FTX CEO Sam Bankman-Fried (SBF) on a podcast stated that he plans on donating “north of $100 million,” – with a “soft ceiling” of $1 billion – to the 2024 presidential election. In a followup thread, SBF explained that much of his focus is also on pandemic prevention. At the same time, FTX's President, Brett Harrison is rubbing elbows in Davos at the World Economic Forum 2022.

We're really trying to give SBF and FTX the benefit of the doubt here...

We hope that FTX's goal is to help shape a regulatory framework for crypto that's fair. We also hope SBF's goal is for humanity to thrive...

But what better way is there to destroy social authenticity for you and your brand other than donating billions to U.S. political candidates while networking in Davos, right?

Bitcoin doesn't need to win by donating billions to voter-hungry political parties.

Bitcoin doesn't need to win through some Faustian bargain. 

 TWEET OF THE WEEK 


Coin Snacks

 SPONSORED 


Why We Invested $5 Million in One Cryptocurrency

Bill Gates has called it a “technological tour de force.” Elon Musk has said that outside of his companies, Tesla and SpaceX, it’s the only major personal investment he has. The “it” we’re talking about is cryptocurrency - the most controversial (and volatile) investment we’ve ever come across.

And yet, our team at The Motley Fool believes in it so much that we purchased $5 million of our favorite cryptocurrency using our own capital.

Discover which coin we’re investing in

Other Content You Might Enjoy


  • Stablecoin mechanisms and use cases
  • The MacGuffin, Part 1
  • Filecoin Foundation and Lockheed Martin partner to bring decentralized storage to space
  • Unbanked is a new project connecting crypto to banking with over $2,000,000 raised so far. Invest in Unbanked today.**
  • Crypto Exchanges Set Their Sights On The Sleepy Futures Industry
  • According to Vitalik, Soulbound tokens (SBTs) are “the future” of Ethereum.
  • The Future of Crypto Native Consumer Products
  • The Next Business Models of Web3
  • Is It Different This Time? Analysts Explain This Year’s Crypto Crash
  • Netflix show Love, Death + Robots unveils NFT scavenger hunt for US viewers
  • Crypto firm Ripple will explore IPO after SEC lawsuit ends, CEO says

**Sponsored


Sponsor With Us


Copyright (C) 2022 CoinSnacks All rights reserved.
You are receiving this email because you opted in via our website.

Our mailing address is: CoinSnacks 5500 Military Trail Suite 22-250 Jupiter, Florida 33458 USA


No more crypto news? Unsub here. | Forward this email to a friend. | Update your profile

Key phrases

Older messages

Fractional Rolex, Picasso or Moonbird? Here’s how. 

Monday, May 23, 2022

Please take a moment to read this special message from our sponsor, Koia. Crypto and stocks are down. Inflation is higher than ever. Time to diversify? It's never been a better time to consider

Terra/Luna Lessons, SBF Rugging Coinbase, & 2022 State Of Crypto

Wednesday, May 18, 2022

May 18, 2022 | Issue #220 Sponsored By: Coin Snacks MUST READS Conceptualizing The Chaos Welcome to crypto! For those not paying attention, the crypto market has been in a downward spiral ever since

Own Shares In Tech-Powered Pharmacy Before The May 20th Deadline

Tuesday, May 17, 2022

Please take a moment to read this special message from our sponsor, NowRx You Have Less Than A Week To Invest In This Private Company Scroll to learn about NowRx and invest before May 20th. The New

Crypto Market Crash, The UST Blowup, & Coinbase Earnings

Thursday, May 12, 2022

May 11, 2022 | Issue #219 Sponsored By: Coin Snacks MUST READS Another Crypto Market Crash? Well, alrighty then. Since we wrote our last issue, the crypto market has been in a nasty tailspin. Both

Bitcoin Loans, Two More Countries Adopt Crypto, & Robinhood Earnings

Thursday, May 5, 2022

May 4, 2022 | Issue #218 Sponsored By: Coin Snacks MUST READS It's A Bitcoin World The Central African Republic (CAR) last week announced that it will adopt bitcoin as legal tender, becoming the

Week in Review - Twitter, the Coinbase killer?

Saturday, April 23, 2022

TechCrunch Newsletter TechCrunch logo Week in Review logo By Lucas Matney Saturday, April 23, 2022 Hello readers and welcome back to Week in Review, This is my final week writing this newsletter! After

50% off! Short Notice Ad Opportunity in GC⚡

Tuesday, June 28, 2022

Hi everyone, Sending you all this email as you all opted in to receive an email from me when I have a discounted ad slot for Growth Currency. This is your chance to get in front of 1.8k subscribers

Crypto Newsletter - Issue 349

Tuesday, June 28, 2022

Crypto Daily News - Jun 28, 2022 View on the Web Archives ISSUE 349 June 29th 2022 Crypto News American Consumers Holding On to Crypto in Spite of Market Correction: Report According to a new survey

Hopium - The Daily Gwei #508

Tuesday, June 28, 2022

We're all addicted to it in one way or another. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Opinion: Why support dYdX leaving ETH to build its own chain

Tuesday, June 28, 2022

The failure of Luna price does not mean the failure of Terra chain. Those who use Terra chain regularly must have experienced the smooth interaction experience brought by Terra. We can even say that

Coin Metrics' State of the Network: Issue 161

Tuesday, June 28, 2022

Tuesday, June 28th, 2022 ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Weekly Update - Layer 1 & Layer 2 News (Week 25, 21/06/2022 – 27/06/2022)

Tuesday, June 28, 2022

Harmony announces a US$1M bounty for the hacker who moved US$100M to Tornado Cash. Norway announces an Arbitrum-powered platform to let people access shares of unlisted firms. Cardano postpones Vasil.

HTC’s new metaverse phone is official, a....🦍

Tuesday, June 28, 2022

June 28, 2022 Who seeks shall find. -Sophocles Market Bitcoin $21018.00 -1.62% Live Prices Ethereum $1225.01 -0.16% Live Prices Tether $1.00 -0.00% Live Prices USD Coin $1.00 +0.28% Live Prices BNB

eBay and Hilton Bring on NFTs, Adidas Dives into the Metaverse | Decentralized Arts #44

Monday, June 27, 2022

Dear Bankless Nation, gm gm! Last week saw NFTs invade New York City. Alongside the main event, NFT.NYC, there was a succession of very interesting and spectacular side events and parties including

Crypto Newsletter - Issue 348

Monday, June 27, 2022

Crypto Daily News - Jun 27, 2022 View on the Web Archives ISSUE 348 June 28th 2022 Crypto News Goldman Sachs reportedly eyeing Celcius assets Goldman Sachs is reportedly seeking to raise $2 billion to

Building the Infinite Garden - The Daily Gwei #507

Monday, June 27, 2022

The properties Ethereum requires to reshape the world. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌