Advice from an Idiot

Good morning. It's a wild one today. We've got a potential OpenSea IPO on the horizon, a Web3 overview, Ted Cruz's views on crypto mining, and more!

Note: I highly recommend downloaded the "theses" from @twobitidiot in the third article.

What this is:
A "Top 5" of crypto, digital asset, and other blockchain related news sent to your inbox on a daily basis

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Top 5:

1. Former Lyft Exec Tapped as OpenSea’s First CFO
   Brian Roberts, a former Lyft executive that was critical in the company's IPO has been named as the first CFO of NFT marketplace, OpenSea. It's Roberts' first experience leading a crypto company, but he's already eyeing a public offering stating, “when you have a company growing as fast as this one, you’d be foolish not to think about it going public, it would be well-received in the public market, given its growth.” OpenSea is the largest NFT marketplace and in August became the first to cross the $1 billion mark in monthly trading volume.
   
2. Welcome to ‘Web3.’ What’s That?
   Web3 is a decentralized version of the internet that runs on public blockchains with users utilizing tokens on those blockchains to do everything from purchasing a piece of art for their metaverse home to taking out a loan to buy a car in the meat world. Supporters of Web3 say that it will democratize the internet, displace intermediaries, disrupt virtually all industries, and put more power back in the hands of the individual. Venture capitalists appear to agree with this rosy-view of Web3 and have already invested $27 billion into crypto related projects this year and are also gearing up for lobbying efforts to support the industry.
   
3. Crypto Theses 2022 from @twobitidiot
   Key trends, people, companies, and projects to watch across the crypto landscape, with predictions for 2022. This is NOT light reading, but should be at the top of your holiday reading list. Free download can be found here.

4. Bitcoin miners say they’re helping to fix the broken Texas electric grid — and Ted Cruz agrees
“A lot of the discussion around bitcoin views bitcoin as a consumer of energy,” says Texas Senator Ted Cruz. “The perspective I’m suggesting is very much the reverse, which is as a way to strengthen our energy infrastructure.” The Electric Reliability Council of Texas, or ERCOT, manages 90% of the Texas power grid and has faced significant challenges this year. Power prices fluctuate dramatically (sometimes even going negative), rolling blackouts occur across the state, and just earlier this year there was a mass outage after severe-for-Texas winter storms hit the state. So, when Ted Cruz and crypto enthusiasts suggest that crypto mining, an energy intensive endeavor, can help fix this problem, its not shocking that many are skeptical. Bitcoin miners argue that 1) they provide an off-ramp for when ERCOT is creating more power than Texas residents demand, which helps keep prices stable and 2) that they can quickly power down their mining rigs when demand exceeds supply from the grid so that they don't contribute to an outage. Critics point to estimates that bitcoin mining could double overall energy demand which would put additional strain on an already stretch power grid, regardless of how quickly mining rigs can power down during periods of high demand. "The analogy I like to use is that if you start smoking two packs a day and then cut back to one pack on holidays, that doesn’t make smoking good for your health,” says Ben Hertz-Shargel of Wood Mackenzie, a provider of commercial intelligence for the world’s natural resources sector.

5. Biden’s controversial anti-crypto Comptroller nominee withdraws
Saule Omarova backed out of her nomination to be the Comptroller of the Currency amid challenges to her positions on cryptocurrencies and the banking industry (she'd previously stated she wanted to “end banking as we know it). During hearings with the Committee on Banking, Housing, and Urban Affairs Omarova expressed concern that private tech companies that have built stablecoin infrastructure would put private profit-based interests above the public need for open banking. President Biden will now have to nominate another candidate for the Comptroller role.

Top Sharers of the Crypto Top 5:
1. Cameron S. - New York, NY
2. Jake Y. - Greenville, SC
3. Lauren A. - Nashville, TN

Disclaimer: The information contained in this newsletter shall not be understood or construed as financial advice. I am not an attorney, accountant or financial advisor, nor am I holding myself out to be, and the information provided is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation.