Unchained

In this episode, crypto lawyers Kayvan Sadeghi and Sam Enzer delve into the SEC's lawsuit against Consensys, which focuses on MetaMask's swaps and staking services, and explore the implications of the SEC's stance on MetaMask acting as a broker-dealer, and the classification of its staking product as a security.  They discuss how recent rulings on Coinbase and Binance challenge the SEC's claims, and whether differing judicial opinions could lead to the Supreme Court.  Also, they talk about the potential impact of the Supreme Court striking down Chevron deference for crypto regulation. Show highlights: 00:00 Intro 01:22 The key claims in the SEC's lawsuit against Consensys and how they relate to MetaMask's swaps and staking services 03:42 How recent Coinbase and Binance rulings challenge the SEC's claims against Consensys 09:29 Whether differing judicial opinions on whether wallets with private keys act as brokers could end up being decided by the Supreme Court 12:55 How the SEC will substantiate its claims that MetaMask acts as a broker-dealer and that its staking product is a security in Texas legal briefings 17:42 Why a token itself is not considered a security, according to Sam, and how this distinction affects secondary market transactions in the SEC's case against MetaMask 22:14 What Lido and Rocket Pool can do in response to the SEC tangentially naming their liquid staking tokens as securities 31:27 How the SEC and Consensys lawsuits will proceed, and whether conflicting rulings could arise from their parallel tracks 36:35 The key distinctions in the Binance case compared to those of Coinbase and Kraken, and how the Binance ruling might impact future crypto cases 50:08 What Chevron deference means and how its removal impacts crypto 56:49 How the elimination of Chevron deference affects current crypto cases and legislative gridlock Visit our website for breaking news, analysis, op-eds, articles to learn about crypto, and much more: unchainedcrypto.com Thank you to our sponsors! Polkadot Guests: Kayvan Sadeghi, partner at Jenner & Block Sam Enzer, partner at Cahill Gordon & Reindel Previous episode of Unchained with Sam and Kayvan: SBF Trial: How Sam Bankman-Fried’s Lawyers Might Try and Win His Case Learn more about your ad choices. Visit megaphone.fm/adchoices

9 Jul 20241h 8min

Prediction markets are gaining mainstream traction, particularly with the upcoming US elections. In this episode, Nick Tomaino, founder of 1confirmation, which is an investor in Polymarket, explores how platforms like Polymarket identified the possibility that President Biden might drop out of the campaign before the mainstream media did. He talks about the journey of Polymarket, the challenges it faced, and how it overcame them to provide a credible platform for betting on political outcomes.  Finally, Nick explains why prediction markets are currently illegal in the U.S., the implications of the Supreme Court striking down Chevron deference, and what the future holds for prediction markets in the U.S. Show highlights: 00:00 Intro 01:28 Why prediction markets like Polymarket finally gained mainstream traction, and how 1confirmation became an early investor 04:01 What challenges Polymarket faced in its journey to mainstream recognition, and how it managed to overcome them 07:22 How prediction markets contribute to bringing more truth to the world, particularly in the context of media narratives and social media algorithms 12:52 What challenges have arisen from conflicts in resolving prediction markets on Polymarket 19:00 How bets are created and how the wording and resolution of prediction markets is managed on Polymarket 21:56 How trading volumes affect the credibility of prediction markets on Polymarket 22:38The regulatory environment of prediction markets in the US and whether the elimination of Chevron deference by the Supreme Court will have a positive impact on these markets 28:35 Crypto News Recap Visit our website for breaking news, analysis, pop op-eds, articles to learn about crypto, and much more: unchainedcrypto.com Thank you to our sponsors! iTrustCapital Polkadot PlayFi Labs Guest Nick Tomaino, Founder & General Partner at 1confirmation Links Recent news on Polymarket: Unchained: Polymarket Hits Record Highs in Monthly Users and Trading Volume Due to Presidential Election Crypto.news: Polymarket reverses Oracle decision on Barron Trump's involvement in DJT meme coin Decrypt: Ethereum ETFs Approved by the SEC? Yes—But Don't Bet On It - Decrypt Dune dashboard: Prediction Markets Commentary: Vitalik’s tweet: “Prediction markets and Community Notes are becoming the two flagship social epistemic technologies of the 2020s. Both truth-seeking and democratic, built around open public participation rather than pre-selected elites. I want to see many more things like this.” Nick Tomaino’s tweet: “2024 will go down in history as the year prediction markets went mainstream.” Learn more about your ad choices. Visit megaphone.fm/adchoices

5 Jul 202441min

Welcome to The Chopping Block – where crypto insiders Haseeb Qureshi, Tom Schmidt, Robert Leshner, and Tarun Chitra explore the latest trends in the crypto world. In this episode, special guest Laura Shin is sitting in for Tom to discuss the impact of prediction markets on politics and crypto. They explore how prediction markets like Polymarket affect public perception during the presidential election, contrasting their reliability against traditional journalism. The conversation also touches on the implications of prediction markets on insider trading, market manipulation, and the role of expert information. Additionally, they discuss the Supreme Court's overturning of the Chevron doctrine and its potential impact on regulatory shifts in the crypto industry. The episode provides an insightful analysis into how prediction markets could revolutionize journalism and the evolving landscape of crypto regulation. Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Pandora, Castbox, Google Podcasts, TuneIn, Amazon Music, or on your favorite podcast platform. Show highlights 🔹 Discussion on the recent presidential debate and its implications for prediction markets and the crypto industry.  🔹 Overview of the prediction market phenomenon and its growing importance in political forecasting.  🔹 Examination of the recent Supreme Court ruling overturning Chevron Deference and its implications for crypto regulations.  🔹 Debate on whether the ruling will lead to more specific legislation from Congress or if it will hinder effective rulemaking.  🔹 Speculation on how different political figures might impact future crypto legislation and regulation. Hosts ⭐️Haseeb Qureshi, Managing Partner at Dragonfly  ⭐️Tom Schmidt, General Partner at Dragonfly ⭐️Robert Leshner, CEO & Co-founder of Superstate ⭐️Laura Shin, journalist, author of ‘The Cryptopians,’ founder and CEO of Unchained Disclosures Timestamps 00:00 Intro 01:50 Presidential Debate Chaos 04:25 Mainstream Media vs. Prediction Markets 16:48 Insiders in Prediction Markets 30:38 Prediction Markets vs. Sports Betting 38:58 Market Manipulation 50:22 Supreme Court Ruling & Chevron Deference Learn more about your ad choices. Visit megaphone.fm/adchoices

4 Jul 20241h 7min

Are Solana ETFs on the brink of approval? How might political outcomes influence this decision?  Join hosts James Seyffart, Alex Kruger, and Joe McCann as they delve into the latest buzz around Solana’s potential spot ETFs, dissect the SEC's puzzling delay on Ethereum ETFs, and debate why Bitcoin’s recent performance has diverged from the NASDAQ. They also discuss the U.S. presidential election, the event that Alex says was the “second most bizarre thing” he’s seen in his life, what the bond market seems to indicate about expectations for a Trump presidency, and how upcoming nonfarm payroll reports and potential rate might affect the markets.  Show highlights: 00:00 Intro 01:47 How political outcomes might influence the approval of spot Solana ETFs 04:16 Whether futures ETFs are 100% needed for an approval of spot crypto ETFs 09:26 The high premium on Grayscale's Solana Trust (GSOL) 13:50 How the outcome of the 2024 U.S. presidential election could impact the crypto industry 20:55 Why the SEC delayed the launch of the Ethereum ETF 24:53 How the upcoming nonfarm payroll report and potential rate cuts impact market volatility and the Federal Reserve's decisions 27:51 How the rise of populist candidates in France and changes in currency markets might affect the US dollar and the broader economic landscape 31:40 How Bitcoin, Ethereum, and Solana performed in Q2, and the surprising outperformance of BONK 34:45 Why Bitcoin's performance diverged from the Nasdaq's recent rally 45:48 How recent movements in long-term bond rates are linked to political changes, such as the rise of right-wing populism and concerns about fiscal responsibility 52:45 How FTX creditors could potentially influence market dynamics, and the irony in the US government using Coinbase as a custodian Hosts: James Seyffart, Research Analyst at Bloomberg Intelligence Alex Kruger, Founder of Asgard Joe McCann, Founder, CEO, and CIO of Asymmetric Learn more about your ad choices. Visit megaphone.fm/adchoices

3 Jul 202455min

The problem of low float, high fully diluted valuation (FDV) coins is one that is frequently discussed in crypto. But there’s another wrinkle: investors need to understand the unrealized gains of these coins to really understand the price.  In this episode, Jose Macedo of Delphi Digital and Ari Paul of Blocktower Capital explain the various metrics that reveal what a coin is really worth, why a wave of token unlocks that will be hitting the crypto markets in the next few years are not bullish, and whether there is a better way to design token unlocks for teams and insiders.  Plus, they cover whether venture capitalists are extractive to crypto, whether these games with circulating supply and FDV have caused investors to turn to memecoins, and why they believe the ICO era was better for retail investors.  Show highlights: 00:00 Intro 01:58 Why upcoming token unlocks are creating market jitters 10:22 How the ratio of unrealized gains to market cap influences token price movements  12:22 How some token projects manipulate their reported circulating supply 20:24 Whether and how everyday investors can uncover the truth about token projects 23:37 What secondary market trading says about the potential impact of upcoming token unlocks 34:50 Why Jose believes that the current token launch strategy, despite its flaws, is still favored by insiders and unlikely to change soon 41:02 Why some projects favor decisions that are more likely to result in short-term gains over long-term success 46:36 Why Jose believes that simple time-based token unlocks often work better than complex metrics, and how projects can balance funding with realistic success metrics 53:04 Why Ari believes the SEC's investigations into VCs for acting as securities dealers might be justified, and how these practices resemble pump-and-dump schemes 59:11 With numerous token unlocks looming, why the outlook is bearish for many projects, and what challenges they face in mitigating potential sell-offs 1:05:52 Why many crypto investors might end up holding the bag in the current cycle, despite plans to sell early and avoid losses 1:12:27 What the future role of VCs is in crypto, and how the influx of token unlocks and the rise of memecoins could shape the bull cycle Visit our website for breaking news, analysis, op-eds, articles to learn about crypto, and much more: unchainedcrypto.com Thank you to our sponsors! Polkadot Guests: Jose Macedo, founder at Delphi Labs Ari Paul, CIO of Blocktower Capital Previous appearances on Unchained: Ari Paul on Why Bitcoin Is a Good Value Buy Ari Paul of BlockTower Capital on the Crypto Downturn and Why It Could Change Direction Links High FDV and unlocks: Unchained: How ‘Fully Diluted Valuation’ Can Be a Very Dangerous Metric for Crypto Markets to Rely On Who’s to Blame for the Underperformance of Low Float, High FDV Tokens? 80% of Tokens on Binance Are Down Since Listing Date: SwissBorg Researcher Cobie newsletter: New launches (part 1) - private capture, phantom pricing Rocknblock: Token vesting explainer CoinDesk: 'Liquid Vesting' Is Oxymoronic Blockchain Feature That Lets Early Investors Sell Without Waiting Jose’s thread that inspired the episode Ari’s post responding to Jose’s thread Token.unlocks.app: Token vesting tracker Solutions: Hack VC: Potential Solutions to Crypto's Unlock Problem Colony Lab: Early-Stage Program & Liquid Vesting Imran Khan’s tweet on Blast https://x.com/lmrankhan/status/1806040646433522149  Learn more about your ad choices. Visit megaphone.fm/adchoices

2 Jul 20241h 27min

Ten and a half years after filing for bankruptcy, Mt. Gox is finally set to disburse 142,000 Bitcoin worth nearly $9 billion to creditors between July and October.  Market concern has been growing over the potential impact on Bitcoin prices, but Alex Thorn, head of research at Galaxy, explains why only a small fraction of those bitcoins will be sold. He also discusses the implications of this redistribution on the market, the potential success of Ethereum ETFs, and the chances of a Solana ETF approval. Show highlights: 00:00 Intro 02:04 Why Alex estimates the amount of bitcoins that creditors sell will be a tiny fraction of the 142,000 to be repaid  13:35 What market shocks could arise from Mt. Gox creditors receiving billions in Bitcoin, and why he believes Bitcoin Cash is the real wild card 18:18 Whether Ethereum ETFs could be as successful as Bitcoin ETFs in attracting investors 23:06 Whether potential outflows from Grayscale's Ethereum Trust will dampen the excitement around Ethereum ETFs 25:07 How the combination of Mt. Gox repayments, Ethereum ETFs, and German and American government Bitcoin sales might affect crypto prices 27:32 The chances the SEC approves a spot Solana ETF Visit our website for breaking news, analysis, op-eds, articles to learn about crypto, and much more: unchainedcrypto.com Thank you to our sponsors! iTrustCapital Polkadot Guest Alex Thorn, head of research at Galaxy Previous appearance on Unchained: How Much Money Will Flow Into Bitcoin ETFs? Here’s One Projection Links Mt. Gox. Unchained: Crypto Market Sees $300 Million Liquidated as Bitcoin Briefly Drops Below $59,000 CoinDesk: Mt. Gox to Begin Repayments in July Governments selling: Unchained: US Government Sends $241 Million in Bitcoin to Coinbase: Arkham Cointelegraph: German gov’t offloads 900 Bitcoin, 400 BTC sent to Coinbase and Kraken Solana ETF Reuters: Investment manager VanEck files to list first spot Solana ETF in US | Learn more about your ad choices. Visit megaphone.fm/adchoices

28 Jun 202444min

Last week, Consensys revealed that the SEC had concluded an investigation into Ethereum 2.0, referring to when Ethereum transitioned from a proof-of-work consensus mechanism to a proof-of-stake one. In this episode, Laura Brookover, senior counsel & head of litigation and investigations at Consensys, and Sam Enzer, partner at Cahill Gordon & Reindel, explore the implications of this decision on Ether’s status as a commodity versus a security, and why the SEC dropped the pursuit, including whether the shifting political winds played a role. For instance, how much of the decision was influenced by the ETH ETF approvals, Democrats crossing party lines to vote for FIT21 and the repeal of SAB 121, and/or SEC crypto enforcement chief David Hirsch’s resignation?  In this discussion, they also explained why the closure doesn’t necessarily mean that staking, or restaking, is safe from the SEC. Plus, what’s the impact of this closure on the other big crypto cases, such as Coinbase, Kraken, Uniswap, and Ripple? Show highlights: 02:13 How Consensys managed to get the SEC to reveal that it had concluded its investigation into Ethereum 2.0, and the significance of that move 08:14 The SEC's possible reasoning behind investigating Ethereum after it had switched to proof of stake 15:19 How uncommon is it for the SEC to send a letter concluding an investigation like the one into Ethereum 18:45 Whether recent events around crypto as an election issue, the ETH ETF approvals, votes for FIT21 and the repeal of SAB121, and David Hirsch’s resignation, might be connected to the decision to close this investigation 29:03 Whether the Biden administration has shifted its stance on crypto and whether Gensler should remain as chair 33:24 How the SEC might still go after staking 37:18 Whether restaking, such as pioneered by EigenLayer, is safe from regulatory actions 39:13 Why the SEC might be pursuing different judgments in various jurisdictions for MetaMask and Coinbase Wallet 44:24 What crucial evidence from the closed Ethereum 2.0 investigation could strengthen Coinbase's defense in its ongoing lawsuit 47:58 Why the SEC's aggressive stance on various crypto enforcement actions seems to remain unchanged despite closing the Ethereum 2.0 investigation 52:13 Why Sam and Laura believe Solana should not be considered a security, despite the SEC naming it as such in various crypto cases 58:13 How the SEC’s argument about an “ecosystem” is nonsensical, according to Laura Brookover 01:00:31 What the implications of the closed investigation are for the cases of Kraken and Ripple 01:04:58 What Sam and Laura B. are watching out for in terms of regulation and ongoing legal cases Visit our website for breaking news, analysis, op-eds, articles to learn about crypto, and much more: unchainedcrypto.com Thank you to our sponsors! Polkadot Guests: Laura Brookover, Senior Counsel & Head of Litigation and Investigations at Consensys Previous appearance on Unchained: Consensys’s Lawsuit Against The SEC: Will It End Gensler's ‘Unlawful Power Grab’? Sam Enzer, Partner at Cahill Gordon & Reindel Previous appearances on Unchained: The Real Reason Why the SEC Might Be Going After Ethereum How 'a Criminal Choice' Got Sam Bankman-Fried a 25-Year Prison Sentence Why the SEC’s Case Against Coinbase Is So Significant for Crypto Why SBF’s Testimony So Far Has Likely Already Doomed Him Another Bad Week for Sam Bankman-Fried in His Criminal Trial Why These Lawyers Say It’s Over for SBF-But His Only Hail Mary Is to Testify SBF Trial: How Sam Bankman-Fried’s Lawyers Might Try and Win His Case SBF’s Lawyers Could Be Annoying the Judge How Might That Impact the Trial? For more links visit UnchainedCrypto.com Learn more about your ad choices. Visit megaphone.fm/adchoices

25 Jun 20241h 12min

LayerZero’s token claims went live on Thursday, and as with every recent airdrop, there was plenty of controversy. In this episode, Bryan Pellegrino, cofounder and CEO of LayerZero Labs, joined to discuss their ambitious anti-Sybil campaign and the subsequent token distribution. He delved into the challenges of ensuring genuine user participation, the decision to offer a self-report option for Sybil attackers, and the complexities imposed by industrial-grade farmers. Bryan shared what he would have done differently and why a mandatory donation to Protocol Guild was imposed. Also, are airdrops dead? How can the industry improve this not-so-effective distribution method?  Show highlights: 00:00 Intro 01:23 Why LayerZero launched an anti-Sybil campaign with its airdrop, and what challenges they faced in ensuring genuine user participation 04:51 Why LayerZero offered a self-report option for Sybil attackers, and how this strategy revealed both the complexities and the creativity within the crypto community 10:16 How the anti-Sybil campaign uncovered over a million fraudulent accounts 14:34 What Bryan would have done differently in their campaign 17:18 What alternative methods, such as KYC and proof-of-humanity protocols, LayerZero could have used for their anti-Sybil campaign 18:35How LayerZero navigated the cat-and-mouse game with industrial airdrop farmers 23:08 Why they decided to impose a donation to Protocol Guild to claim the ZRO token 32:07 What caused the dramatic drop in LayerZero's activity post-announcement of their anti-Sybil campaign, and why the team is optimistic despite the decline 35:23 LayerZero's plans for future airdrops  38:40 What Bryan thinks the future holds for airdrops in crypto, and how the current broken system can be improved to achieve better distribution and user engagement 42:43 Crypto News Recap Visit our website for breaking news, analysis, op-eds, articles to learn about crypto, and much more: unchainedcrypto.com Thank you to our sponsors! iTrustCapital Polkadot Guest Bryan Pellegrino, cofounder and CEO of LayerZero Labs Learn more about your ad choices. Visit megaphone.fm/adchoices

21 Jun 202456min