The Breakdown First Five - Tuesday July 25 2023

Welcome back to The Breakdown First Five — the 5 most interesting and/or important stories in bitcoin, crypto, and markets to start your day

5. The Truth about Bitcoin Mining

After ongoing smear campaigns from Greenpeace, Troy Cross opines on the real truth about Bitcoin Mining and the Environment. Delving into the facts and figures, Cross explains how the game theory of mining forces facilities to search out the cheapest renewable sources of energy. The tides are turning on the environmental FUD.

4. Binance seeks to dismiss CFTC lawsuit

Binance have asked for an expanded page limit in their response to the CFTC lawsuit. They claim the extra length is required to cover the “complexity” of the case and the numerous arguments they anticipate making. As well as raising defense to the allegations, Binance will put forward a motion to dismiss. No preview of the arguments was included in a letter to the Court.

3. Chainalysis on trial

The first case to question whether Chainalysis software can stand up to the rigors required in forensic science is underway. The accused founder of Bitcoin Fog has put Chainalysis in the witness box to critique their opaque methods, saying they rely on “junk science”. An executive acknowledged the firm does not track false positive results and that their accuracy has not been attested to by “anything published anywhere”.

2. Sam leaked Caroline’s Journal

SBF has admitted to leaking parts of Caroline’s Journal to the New York Times, but don’t worry, he had a good reason as always. He was just restoring balance to the media coverage. The newspaper already had some of the excerpts. The article didn’t even end up painting him as the good guy. Despite his excuses, Sam has agreed to be prohibited from discussing the case with the media or intimidating witnesses, but asked that witness also be gagged.

1. Stare into the Orb

Global identity project Worldcoin launched yesterday to fanfare and no small amount of criticism. Vitalik weighed in on the risks and challenges of decentralized ID, opening what will hopefully be productive discussions about the need for better tools and experimentation. Traders were focused on the tokemics, which some said were reminiscent of the worst examples of 2021-vintage VC coins. Is Worldcoin a good faith project or a VC scamcoin?

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Thanks for reading -NLW