Unchained

Welcome to The Chopping Block! Crypto insiders Haseeb Qureshi, Tom Schmidt, and Tarun Chitra chop it up about the latest news in the digital asset industry. In this episode, Balaji Srinivasan discusses his latest book, “The Network State, how different digital tools like crypto will help empower network states, and analyzes how crypto fits into the current political environment. 

• why Balaji wrote a book and why he is so enthralled with a digitized future
• what a “network state” is, and what components of crypto are embedded into the idea
• why Balaji is interested in “re-centralization”
• why Balaji believes that networks states need to be recognized by real nations
• what makes a network state better than a physical nation or digital community
• why Balaji thinks a community of people who eat a keto diet could be the first network state
• why Balaji thinks the network states will be a good thing
• where Bitcoin maximalism fits into the left vs. right political divide, woke culture, and Christianity
• what the overlap between politics and crypto will be going forward
• what is the best way to learn, read, and debate “The Network State”
• where crypto tools and communities have gone wrong so far and how the industry can improve going forward
• what lessons Balaji learned from the tech bubble in the early 2000s
• what Balaji’s over-under is for when the first network state will arrive
• Balaji’s pitch for a 50:50 BTC/ETH portfolio (note: not investment advice)

• Haseeb Qureshi, managing partner at Dragonfly Capital
• • https://twitter.com/hosseeb
• Tom Schmidt, general partner at Dragonfly Capital
• • https://twitter.com/tomhschmidt
• Tarun Chitra, managing partner at Robot Ventures

• Twitter: https://twitter.com/balajis 

The Network State

• ​​https://thenetworkstate.com/ 

Technological Revolutions and Financial Capital

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Marisa Tashman, policy counsel at Blockchain Association, analyzes the US Securities and Exchange Commission’s (SEC) decision to name nine tokens as securities and investigate whether Coinbase lists securities. Show highlights: 

• why the SEC named tokens as securities in an insider trading case where no exchanges or token teams are listed as defendants 
• what happens if the Coinbase insider trading case is settled or goes to court
• why the SEC’s actions should be considered “regulation by enforcement” 
• whether there is any process to force the SEC to reveal its reasoning for calling a token a security
• why Marisa thinks the SEC is actively harming US investors with its crypto policy
• how Coinbase is handling the SEC’s investigation
• what Marisa thinks of Coinbase’s listing process
• why the Cynthia Lummis-led crypto regulatory framework is a good start
• what Marisa believes will happen in the crypto regulatory landscape in the near future

1inch: https://1inch.io/

Crypto.com: https://crypto.onelink.me/J9Lg/unconfirmedcardearnfeb2021 

• https://twitter.com/mtash

• SEC investigation into listing unregistered tokens: https://www.bloomberg.com/news/articles/2022-07-26/coinbase-faces-sec-investigation-over-cryptocurrency-listings

• CFTC Commissioner: ​​https://twitter.com/CarolineDPham/status/1550159347984044033

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Two crypto law experts, WassieLawyer and Adam Levitin, analyze the bankruptcies of 3AC, Celsius, and Voyager. Show highlights:

• the difference between Voyager and Celsius “custody” and “earn” deposits
• why Celsius commingling customer custody and earn deposits could make it harder for creditors to get their money back
• what similarities and differences the Voyager and Celsius bankruptcies have
• how Chapter 11 bankruptcy works
• why Wassie and Adam believe Celsius might have engaged in shady business practices, whereas they believe Voyager was just an irresponsible lender
• what the latest is on the 3AC bankruptcy and the location of Kyle Davies and Zhu Su
• what Celsius and Voyager can clawback from 3AC
• how Alameda fits into the Voyager bankruptcy case
• whether creditors will receive funds back in crypto or dollars
• the three types of ways creditors can “claw back” funds in a bankruptcy case
• why Wassielawyer and Adam believe Celsius’ Chapter 11 plan to restructure around mining is so weird
• whether the founders from 3AC, Celsius, or Voyager will see jail time

Crypto.com: https://crypto.onelink.me/J9Lg/unconfirmedcardearnfeb2021 

Ava Labs: https://www.avax.network/ 

Oasis: https://oasisprotocol.org/grant-programs?utm_source=unchained&utm_medium=partnership&utm_campaign=podcast-oasis-grants-program 

Adam Levitin 3AC/Celsius/Voyager Content

• https://twitter.com/AdamLevitin/status/1549935271323607040

WassieLawyer

WassieLawyer 3AC/Celsius/Voyager Content

Celsius Content

• https://www.coindesk.com/policy/2022/07/19/celsius-lays-out-mining-focused-reorganization-plan-at-first-bankruptcy-hearing/

Voyager Content

3AC

Other

• Kirkland and Ellis are running both bankruptcies

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Adam Cochran, partner at Cinneamhain Ventures, discusses the impact of 3AC’s impending liquidation. Show topics:

• why 3AC founders (and family members) are listing themselves as creditors
• what the “corporate veil” is and why it matters regarding 3AC
• where retail investors stand in the pecking order of creditors 
• why Adam doesn’t believe we know the full story about 3AC’s downfall, despite liquidators leaking a 1,000-page report about it
• what creditors might do with 3AC’s yacht
• why Adam is less worried about the health of GBTC in light of recent 3AC filings
• what effect 3AC’s fall will have on Genesis and Digital Currency Group
• why creditors might prefer liquidations to be paid out in equity compared to cash in this environment 
• how 3AC’s liquidation is impacting retail investors at Voyager and Celsius
• why there could be a crypto credit crunch coming soon

1inch: https://1inch.io/

Crypto.com: https://crypto.onelink.me/J9Lg/unconfirmedcardearnfeb2021 

• Twitter: https://twitter.com/adamscochran 

• Adam Cochran Twitter thread on 3AC liquidation: 
• • https://twitter.com/adamscochran/status/1543253799929876480
• Adam Cochran Twitter thread on 3AC contagion:
• • https://twitter.com/adamscochran/status/1546477191420170240
• 3AC founders subpoenaed

• Wassielawyer on 3AC, Celsius, and Voyager
• • https://unchainedpodcast.com/three-crypto-bankruptcies-3ac-celsius-and-voyager-what-happens-now-ep-374/

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Nelson Rauda, Salvadoran journalist for El Faro, comes to talk about the impact of Bitcoin in El Salvador, the needs of Salvadoran people, Bitcoin City and the Bitcoin Bond, and much more. 

• Nelson’s story and how he began covering BTC
• what kind of politician and president Nayib Bukele was before BTC
• what the financial reality was for Salvadoran people before the implementation of BTC
• the reasons for the high rates of unbanked people in El Salvador
• how Bukele changed the monetary policy with what Rauda says was very little discussion
• why Rauda believes the BTC law is not meant for Salvadorans, but instead is a PR stunt
• how people reacted after the announcement of BTC as legal tender, and how it resembled the dollarization of the economy in 2001
• how Nelson did not even understand BTC at the moment of the announcement and how he says there was not an effort from the government to educate the population
• whether BTC was successful in attracting investments and tourism, and how there’s no hard data about it
• why Nelson believes Bukele was trying to hide the scandals when he adopted BTC
• whether BTC has been used as a PR stunt
• why bitcoiners are enthusiastic about an authoritarian government adopting BTC as legal tender
• how Bukele might be undermining his own authority by adopting BTC, a type of money that is not controlled by a state
• whether the Chivo wallet is a surveillance tool
• why Nelson believes BTC does not represent a solution for the needs of average Salvadoran people
• whether the $30 dollar initial gift to download the BTC wallet was seen as just another subsidy
• the status of Bitcoin City and how Nelson believes it represents the most spectacular PR stunt from Bukele’s administration
• how the expensive prices of electricity in El Salvador make the country not the best place for mining
• the significance of Bitcoin Beach
• what the BTC bond is, what Bukele tried to achieve with it, and why it has been postponed
• whether El Salvador will default on its debt and what the impact of the BTC price has on the national finances and on how Salvadorans perceive Bitcoin
• how Nelson believes people in El Salvador do not have political freedom and how it contradicts the narrative of financial freedom that BTC aims to provide
• what Nelson thinks about Bitcoin and whether governments should adopt it as legal tender

Crypto.com: https://crypto.onelink.me/J9Lg/unconfirmedcardearnfeb2021

Ava Labs: https://www.avax.network/

Oasis: https://oasisprotocol.org/grant-programs?utm_source=unchained&utm_medium=partnership&utm_campaign=podcast-oasis-grants-program

• Twitter: https://twitter.com/raudaz_

• PwC report: https://www.pwc.com/gx/en/financial-services/pdf/el-salvadors-law-a-meaningful-test-for-bitcoin.pdf

• Research paper on El Salvador by the NBER: https://www.nber.org/papers/w29968

• https://www.coindesk.com/business/2022/03/25/bitcoin-city-el-salvadors-dreams-for-utopia-on-hold/
• El Salvador postpones BTC bond: https://www.reuters.com/technology/el-salvador-postpones-bitcoin-bond-issue-expects-better-conditions-2022-03-22/

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In a highly educational conversation, Wassielawyer, a lawyer specializing in restructuring and insolvency, discusses the bankruptcy and liquidation of Three Arrows Capital, plus sheds light on similar processes unfolding with Celsius and Voyager. Show highlights:

• Wassielawyer’s experience as a lawyer and his professional background
• what the liquidation process looks like and what drives a company to get into this situation
• what the creditors of 3AC can expect from the liquidation process and who will be paid first
• why he doesn’t think the liquidators breached their fiduciary duty by not exercising the Starkware token warrants
• what Chapter 15 bankruptcy is and what it means for a company
• whether Zhu’s and Davies’ unknown whereabouts affect the liquidation process and whether they are likely to cooperate
• whether 3AC counterparties will get anything back from the credits they provided
• how Chapter 11 bankruptcy differs from Chapter 15 
• what Chapter 11 bankruptcy filing means for Celsius and its account holders
• what are the similarities and differences between Celsius and Voyager filings

Crypto.com: https://crypto.onelink.me/J9Lg/unconfirmedcardearnfeb2021 

Ava Labs: https://www.avax.network/ 

• Twitter: https://twitter.com/wassielawyer

• Wassielawyer’s threads:
  • https://twitter.com/wassielawyer/status/1543238225338454016?s=20&t=kXB2gr4UCkAz5p09LD24XA
  • https://twitter.com/wassielawyer/status/1538167831946473472?s=20&t=kXB2gr4UCkAz5p09LD24XA
• Unchained Newsletter: https://unchainedpodcast.com/3ac-files-for-chapter-15-bankruptcy/

• Wassielawyer’s thread: https://twitter.com/wassielawyer/status/1545827666590601216?s=20&t=kXB2gr4UCkAz5p09LD24XA

• Wassielawyer’s thread: https://twitter.com/wassielawyer/status/1536192639112183808?s=20&t=kXB2gr4UCkAz5p09LD24XA

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Welcome to The Chopping Block! Crypto insiders Haseeb Qureshi, Tom Schmidt, and Tarun Chitra chop it up about the latest news in the digital asset industry. In this episode, Anatoly Yakovenko, Tsar of Solana, joins the show to discuss the use cases of Solana, whether it’s actually a blockchain, how Solana scales, and much more! 

Show topics:

Hosts

Guest: Anatoly Yakovenko

• Twitter: https://twitter.com/aeyakovenko

Episode Links

Solana

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Ryan Berckmans, Ethereum investor and community member, and Alexandre Bergeron, Bitcoin investor, discuss Lido’s dominance as a liquid staking provider, whether that issue can be resolved, and how it could be a centralizing force for Ethereum. Show highlights:

• what stETH is, what the uses cases are for stETH, and why it is important
• how Lido had a first-mover advantage and how that kicked off network effects
• whether the liquid staking derivatives system is one of a “winner-take-all”
• how much of the staked ETH will be turned into a liquid staking derivative
• how Lido might have a huge MEV opportunity after the Merge
• what the proposer-builder separation is
• whether Lido's dominance will increase over time
• whether other competitors have been competitive with Lido
• why Lido is a natural monopoly because of the incentives and MEV opportunities
• what the implication of Lido’s monopoly is for Ethereum’s censorship resistance
• whether Lido is effectively a single entity despite having multiple node operators
• whether there could be a long waiting period for becoming a validator after the Merge
• how Lido is moving its staking derivatives to other chains
• how Lido’s new dual-governance proposal works, why it might be useful to decentralize Lido and whether it reduces the power of LDO token holders
• how Lido’s centralization is the biggest threat to Ethereum in the long term and what are the possible solutions
• why Ryan believes the value of ETH comes from its credible neutrality and whether Lido's centralization may jeopardize that
• whether finding solutions around MEV opportunities is a good way to reduce Lido’s monopoly
• whether Lido’s competitors could form an alliance and build a tokenized basket of their staking derivatives to compete with Lido
• whether Lido could airdrop the LDO token to all ETH holders to decentralize its governance token

Crypto.com: https://crypto.onelink.me/J9Lg/unconfirmedcardearnfeb2021

Ava Labs: https://www.avax.network/

Oasis: https://oasisprotocol.org/grant-programs?utm_source=unchained&utm_medium=partnership&utm_campaign=podcast-oasis-grants-program

• Twitter: https://twitter.com/bergealex4

• Twitter: https://twitter.com/ryanberckmans

• Lido’s explanation of what stETH is: https://twitter.com/LidoFinance/status/1535184472546889735?s=20&t=oQeB1uj7HG7Y4he-0gbcLg

• Alex’s thread on why ETH is broken: https://twitter.com/bergealex4/status/1410761639226318852?s=20&t=JLyNokP7Kxj7tIiDzHIHTQ

• Lido + stETH dual governance: https://research.lido.fi/t/ldo-steth-dual-governance/2382

• Ryan on post-merge MEV: https://twitter.com/ryanberckmans/status/1453597003397611526?s=20&t=JLyNokP7Kxj7tIiDzHIHTQ

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Amir Haleem, CEO of Nova Labs and founder of Helium, talks about the use cases for Internet of Things (IoT), how blockchain and crypto help to construct a decentralized internet infrastructure, and what is the future of Helium. Show highlights:

• what Helium is and what it is trying to solve
• how, after struggling for years, introducing crypto tokens, finally helped Helium grow
• who the users of Helium are and how they differ from each other
• how Helium grew to have one million devices around the world
• what the challenges and use cases of the IoT space are
• why Helium decided to add new networks
• why Helium is launching specific tokens for each of the new networks
• what proof of coverage is and why it is useful
• what an open-source cellular network is and how it would work
• whether there is a need for some centralization of the network
• what Helium’s roadmap is and what the major milestones are for the future

Crypto.com: https://crypto.onelink.me/J9Lg/unconfirmedcardearnfeb2021 

Ava Labs: https://avax.network

Amir

• Twitter: https://twitter.com/amirhaleem

Helium:

• Twitter: https://twitter.com/helium

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Hasu, strategic advisor to Lido, and Tarun Chitra, founder of Gauntlet, explain everything about staked ETH, aka stETH, how it should be priced, Lido’s market dominance, and much more. Show highlights:

Thank you to our sponsors!

Crypto.com: https://crypto.onelink.me/J9Lg/unconfirmedcardearnfeb2021

Ava Labs: https://www.avax.network/

Oasis: https://oasisprotocol.org/grant-programs?utm_source=unchained&utm_medium=partnership&utm_campaign=podcast-oasis-grants-program

EPISODE LINKS

Hasu: 

Tarun: 

• Twitter: https://twitter.com/tarunchitra

stETH

Lido

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