September 21, 2021       /       Unchained Daily       /       Laura Shin

Daily Bits ✍️✍️✍️

  • Robinhood is testing a crypto wallet feature in its app, reports Bloomberg.

  • pNetwork, a DeFi bridging protocol, suffered a $12 million hack.

  • Over 60 crypto exchanges in South Korea may have to suspend trading services on Friday.

  • Digital asset investment products saw an inflow of $42 million for the week ending September 17th.

  • Nayib Bukele, president of El Salvador, announced the country purchased 150 BTC during yesterday’s dip.

  • It appears that Evergrande’s debt crisis negatively affected the crypto markets yesterday.

  • Fortune Magazine and pplpleasr donated over $600,000 of ETH to four journalistic organizations.

  • Solana issued an in-depth post-mortem concerning the network’s outage last week.

  • Ripio, a crypto services firm, raised a $50 million Series B.

What Do You Meme?

What’s Poppin’?

Unchained Daily 🤝 Groundhog Day
(for those of you who missed yesterday’s newsletter, it also covered crypto regulation.)

Here’s what you need to know about crypto regulation on this Tuesday morning:

1. Coinbase’s Lend Scrapped After SEC Threatened a Lawsuit

In an updated blog post, Coinbase announced its intention not to launch Lend, a product designed to offer interest to customers staking USDC on Coinbase.

“Our goal is to create great products for our customers and to advance our mission to increase economic freedom in the world,” the post reads. “As we continue our work to seek regulatory clarity for the crypto industry as a whole, we’ve made the difficult decision not to launch the USDC APY program.”

Less than two weeks ago, in a blog post, Coinbase’s Chief Legal Officer Paul Grewal said that the US Securities and Exchange Commission issued a Wells notice to Coinbase, signaling that the regulator would sue the exchange if Lend officially launched. According to Grewal, the SEC views the crypto interest-earning product as a security. The same day, Coinbase CEO Brian Armstrong called the SEC’s behavior “sketchy” in a tweet thread, railing against what he said was the SEC’s lack of clarity around crypto.

To conclude, Collins Belton, managing partner at Brookwood P.C., feels that, for Coinbase to publicly calling out the SEC right before canceling Lend was “strange.”

Shutting down Lend was not Coinbase’s only recent regulatory splash. On September 16th, Coinbase was awarded a three-year contract by the US Department of Homeland Security’s Immigration and Customs Enforcement (ICE) branch. The deal, which starts at $455,000 but could expand to $1.37 million, will provide ICE access to Coinbase’s blockchain analytics software.

Speaking of awarding contracts, the Internal Revenue Service has indicated an intent to track cross-chain transactions.

2. Rumors Concerning an SEC Subpoena at Messari’s Crypto Conference Swirl

Messari’s Mainnet crypto conference got off to an eyebrow-raising start, as an attendee claimed that an event speaker was served by the SEC before taking the stage.

While neither the SEC nor Slava Rubin, the initial tweeter, have officially confirmed the rumor, Messari CEO Ryan Selkis appears to believe it to be true, though it is unclear whether he officially confirmed this.

In addition to Selkis, The Block reported yesterday that several attendees said they heard of multiple individuals being served at the event.

Recommended Reads

  • Vanity Fair on NFTs:

  • MyCrypto’s Taylor Monahan on why some crypto features need to be hard to use:

  • Nine steps to level up your Crypto Twitter game:

On The Pod…

How OG Crypto Artist Rhea Myers Sold a Never-Seen Artwork at Sotheby’s

Rhea Myers, artist, hacker, writer, and senior smart contract developer at Dapper Labs, has been making crypto art before NFTs were a thing. Check out this episode to learn about Rhea’s work as an OG crypto artist, why she believes concerns over NFT energy consumption are overblown, and how NFTs are changing the art world. Show highlights:

    • Rhea’s experience entering the crypto space
    • what inspired her to make Bitcoin-based transaction art
    • what blockchain art she was creating in 2014
    • how she helped Coin Artist create crypto puzzles
    • what Rhea thinks about Cadence, the programming language for Flow
    • what conceptual art and blockchain art have in common
    • how Rhea minted her soul on a Dogecoin fork
    • how Rhea came up with the idea of Secret Artwork (Content), which was recently sold at a Sotheby’s auction
    • what cryptographic elements influenced Secret Artwork (Content)
    • why Rhea was wrong about how the NFT industry would evolve
    • why Rhea believes concerns over NFT energy usage are overblown
    • how NFTs are changing the art world
    • what Rhea thinks about the NFT DAO movement
    • what about NFTs make them so fascinating, in a legal sense, to Rhea

Book Update

My book, The Cryptopians: Idealism, Greed, Lies, and the Making of the First Big Cryptocurrency Craze, is now available for pre-order now.

The book, which is all about Ethereum and the 2017 ICO mania, comes out Jan. 18. Pre-order it today!

You can purchase it here: