Leatherneck (@leatherneck) • Hey

Publications

Yes, national security matters. No, crypto is not a threat to U.S. national security any more than the internet itself. The greatest threat to national security is the economic fallout of policies that indict innovation and technology, thereby allowing adversaries to take lead.
Law enforcement loves crypto. I spoke to a friend at @INTERPOL_HQ today who works on child trafficking cases. "Crypto is the best. We get actionable insights that lead us to criminals around the globe. Blockchain is a terrible technology if you are a criminal trying to do something bad."
I spent the day in DC speaking with policymakers about crypto. Why? Because one sentence or even a word of policy can and will translate into $billions in downstream value creation or value destruction.
Join Veterans in Digital Assets (VIDA) on friend.tech https://friend.tech/clubs/82424
Standing room only for the @giancarloMKTS session at the @AIMA_org Digital Asset Conference. I continue to believe that the man is a national treasure. And, I think there is a lot more to come.
Humbled by the opportunity to speak with @iampaulgrewal at the @coinfund_io AGM today. Paul is a special type of mission-driven leader. @coinbase is lucky to have him, and his impact will positively shape markets for decades to come. Thank you, sir. 🙏
The intersection of #crypto and #AI is an incredibly exciting place to be, and @coinfund_io has been operating on this frontier since 2021. Congratulations to the @PrimeIntellect team on their raise! https://fortune.com/2024/04/23/coinfund-distributed-global-prime-intellect-artificial-intelligence-ai-development/
It’s amazing to travel the world, engage with senior policymakers and have thoughtful discussions on principles-based outcomes for crypto policy. They understand the opportunity. And this is the norm—not the exception. Their ask? Move here. Bring your founders. Build my economy.
Definitely a trip to remember. Thank you #Dubai for the memories. #token2049dubai
Here in Dubai for #token2049, but forgot my rain jacket 🤦♂️
#DePin helping farmers and unlocking precision agriculture. Probably nothing. https://www.youtube.com/watch?v=5kTxdVRIZok
Claimed my 'thank you' gift from @lens/bonsai to celebrate the fundraise! 🎉
Legislation that empowers regulators to put forth principles-based regulation is best. But, clarity through the courts via an expensive, wasteful and painful process—that results in transparent and predicable outcomes for entrepreneurs—will be a positive outcome in the end. 🦄
Memecoins and inscriptions are playing a vital role as “stress tests” in the maturity of blockchains. Trading activity is pushing: TPS, fee/MEV models, etc. This is very healthy ahead of inevitable mainstream adoption.
Excellent perspective from @coinfund-io CIO @flexthought on the state of crypto venture capital. https://techcrunch.com/2024/03/29/nine-crypto-vcs-weigh-in-on-why-q1-investments-were-so-hot-and-how-it-compares-to-the-previous-bull-market/
Very excited to spend the day at the $sol @hackerhouse in Brooklyn, NY! #hackerhousenyc
One of the greatest things about crypto is its global reach and accessibility. It’s amazing to see #CESR gaining traction in Australia. Nice coverage on @ausbiztv. https://ausbiz.com.au/media/rising-prospects-for-us-spot-bitcoin-etf-launch?videoId=30798
Somethings never change.
It was awesome to be on Modern Money SmartPod this week at @FIAconnect. I had a chance to discuss advancements in crypto, and the first CESR swap in history. https://www.buzzsprout.com/1873322/14685259-road-trip-coinfund-s-chris-perkins-discusses-advancements-in-crypto-web3
Hello Orb
We are incredibly excited at CoinFund to co-lead ether.fi’s Series A with Bullish. Liquid restaking is one of the most exciting innovations in global finance, and we are thrilled to partner with this incredible team! https://www.coindesk.com/business/2024/02/28/liquid-restaking-protocol-etherfi-raises-23m-series-a/
Hello again. Getting ready for Denver!
Gm
Good to be back.
I had an opportunity to see Rafik Anadol: Unsupervised today at the The Museum of Modern Art. Let me tell you…it is truly spectacular. In MOMA’s words: “For Unsupervised, artist Refik Anadol (b. 1985) uses artificial intelligence to interpret and transform more than 200 years of art at MoMA.” We are barely touching the surface of the intersection of #web3 and #AI, and #NFTs are much more than just jpegs. Don’t forget to mint your commemorative NFT if you visit the exhibit. [Refik Anadol: Unsupervised | MoMA](https://www.moma.org/calendar/exhibitions/5535) Exhibition. Through Mar 5. What would a machine dream about after seeing the collection of The Museum of Modern Art? For Unsupervised, artist Refik Anadol (b. 1985) uses artificial intelligence to interpret and transform more than 200 years of art at MoMA. Known for his groundbreaking media works and public installations, Anadol has created digital artworks that unfold in real time, continuously generating new and otherworldly forms that envelop viewers in a large-scale installation. Unsupervised is a meditation on technology, creativity, and modern art. Anadol trained a sophisticated machine-learning model to interpret the publicly available data of MoMA’s collection. As the model “walks” through its conception of this vast range of works, it reimagines the history of modern art and dreams about what might have been—and what might be to come. In turn, Anadol incorporates site-specific input from the environment of the Museum’s Gund Lobby—changes in light, movement, acoustics, and the weather outside—to affect the continuously shifting imagery and sound. AI is often used to classify, process, and generate realistic representations of the world. In contrast, Unsupervised is visionary: it explores fantasy, hallucination, and irrationality, creating an alternate understanding of art-making itself. The installation is based on works that are encoded on the blockchain, a distributed digital ledger, which stands as a public record of Anadol’s art. “I am trying to find ways to connect memories with the future,” the artist has said, “and to make the invisible visible.”
Awesome to speak on RealVision. [FTX Goes Bankrupt and Gets Hacked | Real Vision](https://www.realvision.com/shows/crypto-daily-briefing/videos/ftx-goes-bankrupt-and-gets-hacked-wWJE) "FTX has been hacked. FTX apps are malware. Delete them. Chat is open. Don't go on FTX site as it might download Trojans." That message from an FTX administrator was pinned on its official Telegram channel by FTX General Counsel Ryne Miller on Friday, mere hours after the crypto exchange filed for Chapter 11 bankruptcy protection. CoinDesk initially reported “mysterious outflows exceeding $600 million.” CNN says it was just $473 million, the New York Times $515 million. Early on Monday, Binance founder and CEO Chanpgeng Zhao announced his company "is forming an industry recovery fund, to help projects who are otherwise strong, but in a liquidity crisis." Paul Guerra and co-host Santiago Velez, a co-founder and the R&D division lead at Block Digital, welcome CoinFund president Christopher Perkins – who was at Lehman Brothers when it collapsed in 2008 – and StarkWare co-founder and president Eli Ben-Sasson to assess the still-accumulating fallout from the FTX debacle and to chart potential paths forward. We want to hear from you too – please share your questions, comments, and suggestions! Editor’s Note: Our live chat feature will be unavailable for four to six weeks as we upgrade our video player technology. We apologize for the temporary loss of function. But we assure you the upgrade will more than justify the wait. In the meantime, we will be monitoring the comments section. So, in addition to conversing with your fellow community members, please share your questions there.
FTX was not a crypto issue. It was a human issue.
I was on the trading floor at Lehman when we went bankrupt. Some reflections and lessons learned as we digest the FTX insolvency. 1. The cult of Dick Fuld pervaded the building. Employees were encouraged to blindly follow him. Questioning him was sacrilege as “Dick knew best”. 2. Lehman was tightly controlled by a handful of folks at the very top. Arrogance was real. When Bear Stearns went down, senior leadership relished in it, posted $2 bills on the walls (it was originally sold to JPM for $2) and assured us that we were fine. “How could they be so stupid?! This would never happen to us!” 3. The value destruction was severe. Some employees doubled down on Lehman stock as it cratered as Lehman would never go down in flames. This was unimaginable. 4. When we went insolvent, clients called screaming “Where is my f—ing money?” They didn’t realize that it was no longer their money—it was now in the hands of the estate. When assets aren’t legally segregated, that’s what happens. 5. The employees were completely left in the dark. There was no transparency. No word. No leadership. Just a big, black void. Confidence was shaken and fear ruled. The future was uncertain. But dark times often lead to opportunity. 6. During periods of crisis, the best relationships are forged. And relationships matter. I had a client who made a $50mm operational error the day we went bankrupt. Reversing it saved his career. He became a loyal future client for years to follow. 7. Many of the Lehman employees were incredibly talented. People like this always land on their feet. Rather than continue to build out linear careers, many found new opportunities, started new businesses and exponentially grew careers. We had a fresh start. We also had an incredible network. And networks are powerful. As employees found new homes, we had colleagues resurface everywhere across finance and beyond. The shared trauma of Lehman created the strongest of bonds. 8. Today, we still look after each other and help each other grow careers. That Lehman curse is now a badge of honor. We fought through it. We overcame it. For most of the FTX employees, we know you had nothing to do with this. Stay strong. This will pass. Look to the future, and take care of one another. The promise of #web3 is out there, and I look forward to watching you build it. 9. There are few differences between Lehman, FTX, Celsius, 3AC, Archegos, MF Global, LTCM. It’s the same formula. Too much opacity, central control, leverage, illiquidity and poor risk management. 10. As we look to the future, #DeFi solves for many of these challenges. By design, DeFi is the epitome of inclusive and transparent markets. Open source protocols behave as programmed.
Dapper labs is going places.
I don’t miss tradfi.
It's Spooky Szn 👻 #allthingsghost. Prompt: An impressionist oil painting of a beautiful sunset with the moon rising, palm trees and an outrigger canoe at kailua beach . During October all posts are gasless and mint as a free collect @thegallerydao.lens @selas.lens @lensprotocol Check out bit.ly/lensai
It's Spooky Szn 👻 #allthingsghost. Prompt: An impressionist oil painting of a beautiful sunset with the moon rising, palm trees and an outrigger canoe at kailua beach . During October all posts are gasless and mint as a free collect @thegallerydao.lens @selas.lens @lensprotocol Check out bit.ly/lensai
It's Spooky Szn 👻 #allthingsghost. Prompt: Impressionist oil painting of sunrise view of the Mokalua islands in oahu with palm trees . During October all posts are gasless and mint as a free collect @thegallerydao.lens @selas.lens @lensprotocol Check out bit.ly/lensai
It's Spooky Szn 👻 #allthingsghost. Prompt: An oil painting of sunset at kailua beach park with palm trees and the moon rising . During October all posts are gasless and mint as a free collect @thegallerydao.lens @selas.lens @lensprotocol Check out bit.ly/lensai
It's Spooky Szn 👻 #allthingsghost. Prompt: An oil painting of kailua beach park with the sun setting and the moon rising with palm trees . During October all posts are gasless and mint as a free collect @thegallerydao.lens @selas.lens @lensprotocol Check out bit.ly/lensai
It's Spooky Szn 👻 #allthingsghost. Prompt: An oil painting of kailua beach park with the sun setting and the moon rising with palm trees . During October all posts are gasless and mint as a free collect @thegallerydao.lens @selas.lens @lensprotocol Check out bit.ly/lensai
It's Spooky Szn 👻 #allthingsghost. Prompt: An oil painting of kailua beach park with the sun setting and the moon rising with palm trees . During October all posts are gasless and mint as a free collect @thegallerydao.lens @selas.lens @lensprotocol Check out bit.ly/lensai
The institutional narrative across the #ethereum ecosystem continues with this move by Fidelity Investments. At this point, it’s clear that Ethereum is a commodity, and this regulatory clarity—coupled with a 99.95% decrease in energy consumption post transition to Proof of Stake (PoS)—makes it particularly appealing to institutions. As the macro narrative continues to capture most industry participants’ attention, institutions like Franklin Templeton, BlackRock, Fidelity Investments, and BNY Mellon continue to build out #crypto products, capabilities and services. We will emerge from this macro funk surrounded by a sea of traditional institutional players. [Fidelity’s Crypto Platform to Add Ethereum Trading for Institutional Clients](https://www.coindesk.com/business/2022/10/19/fidelitys-crypto-platform-to-add-ethereum-trading-for-institutional-clients/) The move comes after Fidelity launched a new Ethereum Index Fund for accredited investors.
The FSB released “Regulation, Supervision and Oversight of Crypto-Asset Activities and Markets” yesterday. It coordinates the work of international agencies to promote the implementation of effective regulatory, supervisory and other financial sector policies. In this report, the FSB published 9 recommendations for the crypto industry. Some takeaways: The FSB is very focused on “same activity, same risk, and same regulation.” On the surface, this seems sensible. We have seen numerous examples in both #tradfi (LTCM, the GFC, Archegos) and #crypto (3AC, Celsius, etc) where excess leverage and poor liquidity management have resulted in material losses and risk, driven by flawed decision-making at interconnected centralized entities. However, it’s important to note that blockchain technology unlocks DIFFERENT activity and DIFFERENT risk. Though regulation should seek to promote the same principles (e.g. protections against fraud, manipulation and abuse), it is vital to adapt and improve policy and regulation to enable responsible innovation. Current market structure depends on intermediaries and centralization. Blockchain enables trustless and permissionless exchange of value, and near real time, global settlement--eliminating Herstatt risk. This enables greater inclusion and access without the need for intermediaries. From a systemic risk perspective, decentralizing and distributing risk should create a stronger system and an alternative to the legacy centralized system. Smart contracts can play an imperative role in mitigating counterparty risk; DeFi performed quite well during the recent crypto volatility. Smart contracts are transparent, and they functioned as they were coded. Blockchain unlocks this. It’s really time to really rethink a world that depends on intermediaries. We have new options. Proactive, forward-thinking policies and regulation are needed. Let’s look forward, not backwards. [Crypto-assets and Global “Stablecoins”](https://www.fsb.org/work-of-the-fsb/financial-innovation-and-structural-change/crypto-assets-and-global-stablecoins/) Crypto-assets are a type of private sector digital asset that depends primarily on cryptography and distributed ledger or similar technology. The different segments of crypto-asset markets – including unbacked crypto-assets (such as Bitcoin), so-called “stablecoins”, and decentralised finance (DeFi) – are closely interrelated in a complex and constantly evolving ecosystem, and need to be considered […]
I am a big fan of what the @ DIMO team is building. A true #web3 project, Dimo helps drivers monetize their own data. Data is extremely valuable, and web3 enables individuals to take back control and ownership of their data. This is what web3 is all about. Sign up here: https://app.dimo.zone?referralCode=XBdzOTrY [DIMO Helps Drivers Gain and Monetize Their Car Data](https://www.coindesk.com/layer2/2022/10/10/dimo-helps-drivers-gain-and-monetize-their-car-data/) Co-founder Andy Chatham explains how the open-source, decentralized project wants to help drivers tap into the valuable car data market.
Decentralized Autonomous Organizations (#DAOs) are one of the most exciting innovations of #web3. DAOs leverage #blockchain technology to enable the innately human desire to form communities and tribes, based on shared values. Web2 made strides in community formation by delivering social media, but in #web2, a handful of centralized companies control communities and monopolize economics (including valuable personal information). In contrast, DAOs allow community members to raise a treasury, vote on protocol mechanisms and make decisions on treasury deployment--reflecting the values of the community. In short, DAOs bring democracy and private property to communities--two fundamental principles for free societies. DAOs are another example of technology and innovation that seem to have outpaced existing law and regulation. Sure, we can try to apply legacy rules, but a better approach would be to invest in new policy and regulatory infrastructure that encourages, rather than dissuades, the democratic process while also rigorously enforcing against instances of fraud, manipulation and abuse. I commend Summer Mersinger for her views and comments on the recent U.S. Commodity Futures Trading Commission enforcement action regarding Ooki DAO. With a principles based approach, responsible innovation is possible. [CFTC’s Regulation by Enforcement Needs to Change, Commissioner Says](https://www.coindesk.com/policy/2022/10/06/cftcs-regulation-by-enforcement-needs-to-change-commissioner-says/) Summer K. Mersinger told CoinDesk TV’s “First Mover" that Congress needs to establish clear rules for DAOs.
If only there was a technology that could enable instantaneous, real-time, global settlement, eliminating Herstatt risk and creating a more resilient financial system… 🤔🤔🤔 [FX market weighs viability of spot clearing - Risk.net](https://www.risk.net/node/7954706) Supporters believe it could remove credit risks, but others say it would be unnecessary and add costs
If only there was a technology that could enable instantaneous, real-time, global settlement, eliminating Herstatt risk and creating a more resilient financial system… 🤔🤔🤔 [FX market weighs viability of spot clearing - Risk.net](https://www.risk.net/node/7954706) Supporters believe it could remove credit risks, but others say it would be unnecessary and add costs
If you are looking for a job in #web3, listen to this 👇 [VIDA Podcast Episode 11](https://open.spotify.com/episode/6iydlUVPz0Eh9rxgMTbgul) Listen to this episode from Veterans in Digital Assets (VIDA) on Spotify. Chris Perkins, President of CoinFund and Co-Founder of Veterans in Digital Assets, hosts Margaret Gabriel, Global Head of Talent at CoinFund. Links Mentioned in this episode: https://review.firstround.com/ https://review.firstround.com/podcast https://fs.blog/knowledge-project-podcast/ https://workforfang.com/interview-stages https://review.firstround.com/the-best-interview-questions-weve-ever-published
This is notable and comes as no surprise. The CME Group has desired direct relationships with clients for as long as I can remember. ICE has a direct model already. Coinbase is working on an FCM of its own. What does this all mean? Direct, indirect or own FCM—it should not matter. Principles do. The important thing is that industry participants should be able to access comprehensive derivatives markets (including #crypto) to hedge their risk. Market structure should be inclusive and encourage competition while maintaining the highest standards of risk management and client protections. The existing model is not keeping up—just look at Credit Suisse (https://lnkd.in/eCvZ722G). The U.S. Commodity Futures Trading Commission should absolutely approve the FTX direct model and other #ccps should be allowed to adopt direct or FCM models of their own. The reality is that today’s market structure is holding responsible innovation back. [Futures Giant CME Considers Brokerage, Taking Cue From Crypto Rival FTX](https://www.wsj.com/articles/futures-giant-cme-considers-brokerage-taking-cue-from-crypto-rival-ftx-11664592510) CME filed paperwork in August to create a futures commission merchant—essentially, a brokerage that would allow investors to buy and sell futures on CME’s marketplace.
Regulatory derisking is one of three major tailwinds impacting the #crypto industry (the other two being institutional adoption and new product innovation). It’s important to note that this regulatory derisking is absolutely a global phenomenon, and governments across the world are racing to crystallize and ultimately differentiate their laws and regulations so that their economies and citizenry will benefit. If you zoom out, this is part of a larger trend. In fact, export of cryptographic technology and devices from the United States was severely restricted by U.S. law until 1992. Blockchain’s early, nefarious, “Silk Road” narrative is now being displaced as governments recognize the promise and potential of #web3. Ethereum’s merge, which reduces its energy footprint by 99.95%, comes at a vital time for the U.K. and EU. This innovation will make Ethereum more appealing to governments and institutions due to its energy efficiency and #esg narrative. Financial services sit at the heart of the U.K. economy, and London serves as a major financial center. It is no surprise that policymakers continue to recognize the opportunity of serving as a global crypto hub, as the risk falling behind would be devastating. Finally, a new legislative mandate in the U.K. to enhance the competitiveness of U.K. financial services and unlock growth and investment across the U.K. is certainly something to watch. [UK economic secretary commits to make country a crypto hub under new PM](https://cointelegraph.com/news/uk-economic-secretary-commits-to-make-country-a-crypto-hub-under-new-pm) “We want to become the country of choice for those looking to create, innovate and build in the crypto space,” said MP Richard Fuller.
Solid podcast! [How the multi-trillion dollar derivatives industry could be disrupted by decentralized technology](https://open.spotify.com/episode/6A9X5ve5aW9SpY7c0pZsh3) Listen to this episode from The Scoop on Spotify. Hxro Network (pronounced “hero”) raised $34 million in a token round in November to help advance the platform’s vision of building a decentralized derivative platform on Solana. Now, Hxro is on the cusp of launching USDC collateralized markets, which will mark the first time users are able to trade derivatives products using collateral with real value. In this episode of The Scoop, Hxro co-founder and CEO Dan Gunsberg joins host Frank Chaparro to unpack the idea behind the Hxro protocol and to explain how Hxro hopes to solve liquidity problems that currently exist in the decentralized derivative space. According to Gunsberg, the technology underlying Hxro Network allows anyone to create a decentralized derivative product: “Effectively anybody will be able to come and create any type of derivative product on Hxro Network’s protocol… the core protocol is something called ‘Dexterity,’ and the idea of it is that it’s really just the generalized architecture for the payoff function and the accounting mechanisms of a derivative.” Not only does Hxro allow users to build any type of derivative product, “the beauty” of the platform is the way in which it will unify liquidity to create more efficient markets, Gunsberg believes. Gunsberg explains, “Once those markets are created, they all exist in the base layer protocol and then any application can tap those markets… so what you end up with is this unification of liquidity across many applications and many users, that all bottoms out into the same marketplace depending on the product.” Episode 83 of Season 4 of The Scoop was recorded remotely with The Block's Frank Chaparro and Hxro Co-Founder & CEO Dan Gunsberg. Listen and subscribe to The Scoop on Apple, Spotify, Google Podcasts, Stitcher or wherever you listen to podcasts. Email feedback and revision requests to podcast@theblockcrypto.com. This episode is brought to you by our sponsors Tron, Chainalysis & IWC Schaffhausen About Tron On August 1st, 2022, Poloniex launched a faster and more stable trading system along with a brand new user interface. Poloniex was founded in January 2014 as a global cryptocurrency trading platform. With its world-class service and security, it received funding in 2019 from renowned investors, including H.E. Justin Sun, Founder of TRON. Poloniex supports spot and margin trading as well as leveraged tokens. Its services are available to users in nearly 100 countries and regions with various languages available. For more information visit Poloniex.com. About Chainalysis Chainalysis is the leading blockchain data platform. We provide data, software, services, and research to government agencies, exchanges, financial institutions, and insurance and cybersecurity companies in over 60 countries. Backed by Accel, Addition, Benchmark, Coatue, Paradigm, Ribbit, and other leading firms in venture capital, Chainalysis builds trust in blockchains to promote more financial freedom with less risk. For more information, visit www.chainalysis.com. About IWC Schaffhausen IWC Schaffhausen is a Swiss luxury watch manufacturer based in Schaffhausen, Switzerland. Known for its unique engineering approach to watchmaking, IWC combines the best of human craftsmanship and creativity with cutting-edge technology and processes. With collections like the Portugieser and the Pilot’s Watches, the brand covers the whole spectrum from elegant timepieces to sports watches. For more information, visit IWC.com.
A very thoughtful and forward thinking speech by #CFTC Commissioner Caroline D. Pham. Principles based regulation is actually one of the strongest catalysts for innovation and growth, and a competitive differentiator if you are a country looking to drive meaningful employment and economic progress.
Boom. Congrats to the CoinFund and GoGoPool teams. [GoGoPool raises $5 million to provide decentralized staking on Avalanche](https://www.theblock.co/post/166498/gogopool-raises-5-million-to-provide-decentralized-staking-on-avalanche) GoGoPool raises $5 million to provide bring liquid staking to Avalanche and make it easier to launch subnets.