💌 Welcome to GM, BFF, a newsletter hitting your inbox every week with key insights from Web3, crypto, our community and beyond. Have ideas of what you want to see in this send next week? Email us at hello@mybff.com
ETH is down, bitcoin is losing steam and Binance is allocating billions to a crypto recovery fund in an attempt to save the day. We’re coming off a few of the most volatile weeks in crypto history, and some seasoned Web3 professionals might argue we’re only just getting started.
Have you taken a moment to recharge, BFFs?
Let’s remember: Though the FTX case is perhaps the most fraudulent in crypto history, FTX was not the first centralized crypto exchange to collapse. The 2014 Mt. Gox collapse had a comparatively similar impact on the crypto market of its time, Chainalysis research lead Eric Jardine claimed this week. The industry still survived — and we predict it will continue doing so.
That’s why, this week, we’re covering the fundamentals of decentralization. Blockchain was originally invented to offer a more transparent alternative to central banking, an industry that has historically been laden with fraud and opaque gatekeepers.
However, in recent years, centralized crypto platforms — with similar issues, it turns out — have become normal entry points to crypto because of how easily they link to bank accounts, debit cards and credit cards.
As Web3 grew in popularity, centralized exchanges (CEXs) cropped up to provide convenient platforms on which consumers could buy, sell, lend and trade cryptocurrency. Most people today buy their coins and tokens on centralized platforms like FTX, Coinbase, Gemini and others.
Investors have viewed CEXs as trustworthy until recently. But the fall of FTX reminds us of Bitcoin inventor Satoshi Nakamoto’s original plans: decentralization. Crypto was never meant to exist on large, centralized platforms. Rather, it was meant to be a self-custodied “bearer asset” owned and controlled by the individual.
Read Why Decentralization Matters On BFF Discover
Bitcoin wallets are in the red. More than 50% of addresses holding bitcoin (BTC) are now valued lower than their original purchase price — the first time this has occurred since the COVID-induced crash of March 2020.
Amazon scoops up the FTX drama. The ‘Avengers: Endgame’ directors will produce an eight-episode Amazon miniseries based on SBF’s fraud.
BAYC votes on an NFT marketplace. A two-person startup, Snag Solutions, beat out Magic Eden and Rarible to win over the hearts of The ApeCoin community, who voted on multiple proposals regarding a new marketplace for Bored Ape Yacht Club NFTs.
Binance takes a big bite. Binance CEO Changpeng "CZ" Zhao has confirmed that the exchange's U.S. wing will make a bid for crypto lender Voyager and even FTX’s remaining distressed assets.
Ethereum stakers grow nervous. Since Ethereum’s September 15 move to proof-of-stake, validators began staking the required 32 ETH in order to participate on the new Beacon Chain. Stakers must wait on the next Ethereum Foundation update to withdraw their ETH, but market volatility is making them worry over perceived setbacks.
Billionaire Frank McCourt wants to fix the internet. The once-owner of the Los Angeles Dodgers announced on Monday his decision to step down from his role as CEO of McCourt Global and run his nonprofit Project Liberty, which is working on building an internet favoring more user control and personal data ownership.
MetaMask is collecting IP addresses. ConsenSys, the parent company of MetaMask, received backlash this week after announcing a privacy policy revision that makes user IP addresses subject to collection.
SBF to speak at The New York Times BookDeal Summit. Former FTX CEO Sam Bankman-Fried tweeted he would be making his first public appearance since filing for bankruptcy at the New York Times DealBook Summit on Nov. 30. The announcement raised questions throughout Crypto Twitter surrounding corporate accountability and the ethics of mainstream media.
Gitcoin and UNICEF pair up. The UNICEF Office of Innovation is trying out Web3 via its recent collaboration with Gitcoin. The first-of-its-kind partnership will test Gitcoin’s decentralized protocol as a fundraising vehicle to tackle pressing social issues at scale.
Ledger VP of Communications Ariel Wengroff explains why she's not surprised Drake uses a self-custody wallet.
Milo founder Avni Patel Thompson shares her superpowers with Inc.
BFF loves to support the artists in our community. This week, we’re spotlighting Alyse Gamson, an NFT artist whose work represents the inner worlds of mindfulness, meditation and the transformation of self.
Gamson's collection, Skull Space, celebrates the unique beauty in all of us. The skull is an inclusive symbol for humanity and represents the idea that we all share a base humanity underneath the surface. Skull Space is a call to celebrate our differences and embrace our similarities.
View Gamson's work on OpenSea and follow her on Twitter.
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🚨 This newsletter and all the information in it does not constitute financial advice. If you don’t want to invest money or time in Web3, you don’t have to. As always: Do your own research.
