Crypto Cuts
Good morning. Happy Friday! We send you into the weekend with coverage on New York's mining moratorium, a CFTC complaint against Gemini, and CeFi moving into DeFi.
Market Update (as of 9:07am ET):
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Top 5:
1. Coinbase announces cost-cutting measures as crypto firms face bear market. The crypto exchange is extending a previously announced two-week hiring pause and rescinding a number of accepted offers for prospects that have yet to start at the firm. The news from Coinbase comes shortly after a similar move from Gemini, who announced on Thursday that the company would be laying off 10% of their workforce, about 100 employees. From L.J Brock, Chief People Officer at Coinbase:
After assessing our business priorities, current headcount, and open roles, we have decided to pause hiring for as long as this macro environment requires.
2. Genesis is parking $75 million in capital into Maple's Solana-based lending platform. Centralized lending and trading firm Genesis is expanding their DeFi presence by contributing $75 million to the Maple lending pool on Solana (Maple also operates pools on Ethereum). Genesis will become the first centralized trading firm to serve as a pool delegate. While $75 million represents a small fraction of Genesis' total loan book (~$44 billion as of March 2022), the firm stated that running part of their loan book through Maple's infrastructure translates into lower operating costs by replacing traditional software tools with on-chain capabilities.
3. New York Senate passes bitcoin mining moratorium. This morning in Albany lawmakers passed a billed to ban bitcoin (and other proof-of-work) mining operations that run on carbon-based power sources. If signed by Governor Hochul, only mining operations that run on 100% renewable energy will be allowed to expand or renew permits for the next two years.
4. CFTC charges Gemini for providing 'material false' statements on bitcoin futures product. The Commodity Futures Trading Commission (CFTC) has filed a complaint against crypto exchange Gemini for "for making material false or misleading statements" in their effort to gain approval for a bitcoin futures product. The product, which launched in 2017, required traders to fully pre-fund their investments, however, the CFTC alleges that Gemini offered "bespoke participants" the ability to trade before their accounts were funded, fee rebates, and other incentives to promote trading. These incentives were not part of Gemini's disclosures to the CFTC when the product was initially approved.
I might respond to this nonsense when I have some free time. But I dunno, maybe not, we'll see. I'm pretty busy at the moment. For now, any extra time I have I will use to see Top Gun Maverick. I heard it’s awesome!https://t.co/DJwZXQT3EB
— Cameron Winklevoss (@cameron) June 2, 2022
5. Have a great weekend! Enjoy @cobie wreaking havoc in the Optimism governance forum.
I posted on the Optimism governance forum in response to the recent proposal making sellers ineligible for future tokens: https://t.co/lkRDjCaYS6 pic.twitter.com/YRyBLkPbNj
— Cobie (@cobie) June 1, 2022
Updates and other stories:
- Kanye West stakes claim for NFT and metaverse trademarks...Read More
- Ethereum layer 2 Boba Network integrates with Fantom, Moonbeam...Read More
- Japan passes legal framework for stablecoins...Read More
Top Sharers of the Crypto Top 5:
1. Donna Y. - Nashville, TN
2. Jake Y. - Greenville, SC
3. Forrest H. - Evansville, IN
External Resources:
1. Cryptopedia from Gemini - if you see a word, acronym, or phrase in this newsletter that you don't understand, there's a good chance you can find an explanation here
2. Crypto Explainer+ - intro level courses on Bitcoin, Ethereum, decentralized finance, NFTs, and more
3. Crypto Jobs! - looking for a new job? Check out this page from Anthony Pompliano with hundreds, if not thousands of listings
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.