May 26, 2021       /       Unchained Daily       /       Laura Shin

Daily Bits ✍️✍️✍️

  • The number of long-term BTC holders hit a record high

  • SEC Commissioner Hester Peirce said “crypto may force [the SEC] to do that modernization faster than we otherwise would do.”

  • 1confirmation, a crypto VC firm, raised $125 million for its third fund (stay tuned for a podcast on this next week)

  • GameStop is building out an NFT platform on Ethereum

  • Galaxy Digital announced the acquisition of asset management firm Vision Hill Group

  • Wall Street Bets Redditors are turning their attention to crypto 

  • Dfinity Foundation to give $220 million in funds to attract developers to the Internet Computer, an Ethereum competitor

  • JPMorgan rates Coinbase as overweight; sets price target at $371

  • China’s Inner Mongolia proposed eight new measures to shut down crypto mining

  • Issuance of a CBDC by the Federal Reserve would “most likely require additional authority,” according to Vice Chairman for Supervision Randal Quarles on behalf of the Fed.

What Do You Meme?

In addition to Quarles’s comments on the Federal Reserve’s authority to issue a CBDC, he also confirmed the Fed, OCC, FDIC are commencing a cryptocurrency policy “sprint,” just as Michael Hsu, acting head of the OCC, proposed they would last week.

Sean Tuffy, head of market and regulatory intelligence at Citi, offered up his analysis on what such a “sprint” would look like:

*Bonus content featuring crypto’s favorite interviewer, Lily*

What’s Poppin’?

Layer 2 solutions are poppin’.

Yesterday, Shark Tank “shark,” Mavericks owner, and billionaire investor Mark Cuban confirmed his investment in Polygon to CoinDesk. Polygon, formerly known as Matic, is a layer 2 protocol built on Ethereum with the intention to bundle multiple scaling solutions into one full-stack application. Polygon describes itself as “Ethereum’s Internet of Blockchains.”

One of the significant issues plaguing Ethereum at the moment is the idea of scaling. Currently, Ethereum can only handle around 15 transactions per second. For context, Visa handles approximately 2,000 transactions per second. Network bottlenecks resulting from Ethereum users demanding more block space than is available has resulted in high ETH gas fees for users.

Polygon and its token (MATIC) are just one of many solutions to scaling Ethereum (read here, here, and here for a more in-depth breakdown of layers 2s, sharding, and roll-ups).

If you had invested $100 in MATIC just one month ago, you would now be the proud owner of roughly $372 — which would be good enough for a 372% gain while the rest of the market dipped around 10% over the same time period.

Recommended Reads

On The Pod…

How Solana and Binance Smart Chain Could Take Ethereum’s Lead


Kain Warwick, founder of Synthetix, and Kyle Samani, managing partner at Multicoin Capital, debate the merits of Ethereum, Solana, and Binance Smart Chain. In this episode, they discuss:

  • why Ethereum is losing market share to Solana and BSC

  • whether decentralization matters and at what point decentralization becomes redundant

  • why they think Solana and Binance Smart Chain need to be taken seriously as competitors to EThereum

  • whether BSC or Solana is the bigger long-term threat to Ethereum

  • the biggest obstacle to Ethereum’s success (and it’s not gas fees)

  • how Ethereum will navigate fragmented Layer 2 solutions

  • Solana and its lack of developers

  • what differentiates DeFi from CeFi

  • why Solana has an edge on Ethereum in terms of composability

  • how Ethereum will onboard new users

  • why Kain is such an ardent backer of Ethereum

  • why both Kyle and Kain think EIP 1559 and the potential for higher ETH prices is bad for Ethereum

  • if Synthetix would ever consider launching a cross-chain product

  • the viability of a multi-chain world

  • why Kyle believes the future holds a winner-take-most blockchain ecosystem

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 Nov. 2nd. Pre-order it today!

You can purchase it here: