***Qrafty smiling the biggest smile*** Welcome, fellow crypto seeker! I, Qrafty the crypto lovin’ honey badger, welcome you to Coinqraft – the crypto newsletter for brainy folks who crave the lowdown on crypto and Bitcoin but prefer to dodge the crypto fanatics and Twitter daredevils lurking in those mysterious Telegram caverns!.🌟

🦡 Whoooweee there's a lot to talk about today! 🦡 Let’s dive into the crypto rabbit hole because Qrafty just got back with news 📰 and scoops 🔍 from the crypto jungle:

1. A Vision Of X!

2. Grayscale wins against the SEC!

3. ETF decisions coming up.

Bonus: Bitstamp withdraws coins for US users

Today’s Story

X (Twitter) obtains money transmitter license

Twitter, or X as it’s now known after Elon Musk bought it, has obtained a money transmitter license. It’s important to remember that Elon Musk is part of the PayPal Mafia, or better put the group of nerds who created the pioneering company in payments called PayPal, as a solution to the check fraud that was going on EBay. They basically turned EBay into an online auction powerhouse while growing the payments company into the massive one today.

With this in mind and with Elon Musk’s idea of turning Twitter into a super app, it’s pretty easy to understand that the payments part was a very clear and simple step for the platform.

Another thing to consider is the blue checkmark, which requires people to send their ID’s to Twitter to verify their identity. So now we have payments + identity + microblogging + long form content + video in the same US platform. Oh and you have a LOT of engagement on top of that, which is pretty damn cool, right? That’s the key: engagement. While FB has faded from most people’s daily activity, Twitter has this (autistic) activist vibe to it.

So what’s next, Qrafty?

What’s next is that the platform, X, actually creates and implements the selling features that are needed on the X platform to have people start transacting things.

Which means we will soon see the ability to create your own shop on X and more tools for users to allow their audience to sell things. And that is pretty cool because this creates a bond between users. People love having favorites for the convenience of trusting the person whom they’re buying from.

Why your own shop, Qrafty?

Because X is a microblogging tool. That’s what Twitter came from: a tweet, a short thingy your brain produced (Qrafty had a different word in mind here).

Now, with expanded format and focus on video and replying to questions, theoretically people will have more diversified content → a reason to spend more time on the platform. And that content is supposed to be monetized.

Creators need to live, so someone needs to pay them. X is paying them right now and users are supporting by subscriptions. It’s a pretty good deal for text and photo based content.

Heck, X might even get reward points for engaging on the platform, in the coin of the X platform! So they’ll need to spend it, get it?

But, most of all, Twitter… Qrafty means X… has controversy. Whether it’s an awesome place filled with great information and knowledge or the typical mob-at-your-door all out digital war, X is a place where everything is happening right now.

It’s an ongoing digital newspaper that is constantly unraveling in front of you and makes you think that, if you contribute and shout your shout, you will become a part of them digital flow of consciousness while having your voice heard and your ideas spread. While getting paid to do this. That’s the X dream!

Qrafty, where are you going with this?

X will also become a peer to peer exchange! As in, the biggest p2p freaking exchange in ze whole wiiide woooorld, okaaaay? It’s 450 million DAU’s (daily active users). This is a whole other direction by itself!

Or it can buy PayPal, its stock is down from $300 to $60… it’s fucking atrocious. The company is so badly managed that a monkey on crack hitting keyboards might make a better management team than what’s going on there.

Or it can buy just Venmo, Braintree and Xoom from PayPal, while helping the company and integrate that in his own blockchain solution.

Qrafty wrote about PayPal’s crypto move, but this was a desperate move, actually. They need this to get their stock up! 

Qrafty, what’s wrong with you? Let’s get back to the P2P exchange…

Yes, X it’s one huuuuuuge (that’s what who said?) digital social layer. On top of that layer, you can build anything if you know what you’re doing. And Elon Musk knows payments. A shitload of stuff about payments.

A P2P exchange on X blockchain is a massive source of potential revenue for X that opens up with a minimal to moderate effort for Elon Musk. Plus, he likes the idea of a cypherpunk social network with free speech and open debates and controversy. But it also needs to control mobs and behaviors which can harm other people, in any way or form.

Qrafty notices how humans don’t say “behavior which can harm people in real life” anymore.

The Internet is just a part of life now. So Elon Musk is building a digital nation, not just a social network. The connection between its core users will be strong and invisible, as a lot of them will earn a living just from posting on X.

Like nodes in a decentralized network, creators are like small planets that create a pull to their followers forming , forming smaller networks by themselves; some bigger, some smaller. But all with their own interest at heart.

Xer will be the new hot digital identity, just like YourTuber, just like TikToker, Instagrammer, OFer, Twitcher??? really?…

What?! Qrafty, are you high?

Qrafty is always high on love, but that’s not the idea. X’er, pronounced: “ek·sur” or if you want to be more suave you can use a long “u” and “h” instead of “r“, like “ek·suuh“ while remembering that you are trying to say the letters X, E and R to make sense for a living human being, okay? One final time: it’s like exercise without the cise!

Qrafty, wtf are you on about?

Well… X marks the spot ffs… it’s really easy! Snoop Dogg will throw an absolutely fabulous party at the launch of the first XClub / XBase, a physical location resembling a hangout place/lounge for X users.

Of course, at the end of the show a rocket will be launched and drones will be dancing on the sky instead of fireworks, sending a really fucking weird message to humanity but with a well intended heart, typical Elon.

So yeah, Twitter will also become a physical social network with XClubs, XPlaces and XBases (together, XSpots) in all towns across the world. It will be user owned. Access will be based on your digital XID. All these places will be owned by X users who adhere to X’s rules for that particular type of establishment.

Qrafty… say X one more time…

Qrafty is dizzy and the tongue hurts after saying this so many times…

Maybe access to an XSpot will even include an X cryptographic NFT to get access in, which will only be possible because it’s only within the X blockchain. So you have digital ID and access to some very special and select places on Planet X, get it?.

This will be the beginning of digital social for everything. From small places for homies to select dinners for 10 clients by a 5 star Michelin Chef at his rented location to actual bars/lounges/cafes to hotels and any type of big/small/weird place that adheres to the X set of rules.

It will start as some very specific use case (think crypto bro’s/influencers throwing a private party and streaming it but with a twist, Qrafty doesn’t exactly know the future.... duh! It’s crypto bros! Something stupid, right?

This means you, as a user, suddenly have a guarantee from the platform that your expectations will be met in certain areas (security, validity, services, etc.). Wherever you will see XSpot/XClub/XBase/XCafe/etc. or XPlace you will know that some specific rules are respected.

That is… if you are high level enough to get in. Some will be public, some will be private.

Think of it like X is franchising its brand along with its digital payment and identity services to opening up new types of marketplaces all over the world, by its users. From small to big ones, a small charge leads to humongous (what?) revenue, without having any physical location.

Over those physical locations charging for things, you can also build digital services and experiences charging for them, whether in Metaverse, Augmented Reality or Virtual Reality.

An XZoo’s will also have the digital version of the zoo. XCafe’s will have Virtual Reality booths for single or multiple players, where people will play and even a sensory deprivation tank! And so on….

This is how you get from a p2p exchange to a live working version of a physical integration of metaverse in real life via a blockchain payments system built on top of a social network… ***no air left… breathing iiiiin*** Mkaaey?

There’s a lot more Qrafty would like to say… but it’s already a huge wall of text… Hope you liked Qrafty’s hallucinations into potentials of the future!

🙃 Qrafty hopes that today’s main story brought brave badgery value to you! Now it’s time for a break, you deserve a bit of fun! 😇 👇️ 

A good giggle… priceless. For everything else there’s… laughing hysterically.

Here is the main news of the day 👇️ 

1. Grayscale Wins Lawsuit Against SEC

This is a huge victory, true. But this doesn’t mean that the SEC will approve Grayscale’s application. Just that the SEC can't deny Grayscale's application to convert to a spot ETF anymore.

The court rejected the SEC's view that Grayscale's ETF proposal was not "designed to prevent fraudulent and manipulative acts and practices." The SEC has spent a full decade denying spot bitcoin ETF proposals under this reasoning, that was their main weapon.

Now the SEC has to review Grayscale’s application; they can still reject it, they can still delay it. The adversity of the SEC management against crypto is very very obvious and well known, it’s not like it’s a secret.

But it’s also possible for the SEC to use this ruling as a save-face method and play both ends: “we don’t agree with the judge’s ruling, but we will obey it“. So they will approve the ETF’s and everyone will be happy.

There is a lot of political pressure right now and all those TradFi companies are drooling at the possible returns from the crypto market, especially given the current inflationary environment eating away at their precious investment returns.

2. Important events this week

Everyone’s praying for the ETF approval. Qrafty thinks more pain to come, but it’s just a badger’s opinion.

Today: The Bureau of Labor Statistics states the Job Openings and Labor Turnover Survey report for July.

Wednesday: ADP National Employment Report for August.

Thursday: the Challenger report releases its August job cuts (provides information on corporate layoffs).

Friday: the official government unemployment numbers for August.

3. Binance is considering a complete withdrawal from Russia

After playing deaf on sanctions and regulations imposed on Russia, Binance suddenly realized that they actually have to follow some laws and regulations. Binance was basically told to cut ties with Russia and stop laundering money for them if they don’t want to be cracked down on even more and possibly eliminated by western authorities.

It’s worth remembering that Binance has been under a lot of pressure lately, being kicked out of multiple countries, having their Mastercard and Visa partnerships revoked and visited by authorities from all fronts.

There were also rumors that enforcement agencies are considering not destroying Binance altogether because that would actually be a huge blow to the industry and would literally bring the crypto market to 0. IF that’s true, we’ve gone full circle and reached the same 2008 level, Satoshi’s nightmare: we now have crypto entities who are “too big to fail“ (remember this?) so regardless of the crap they did in the past, they will be allowed to exist.

Obviously, now wouldn’t be a good time to crash the market and destroy it to bits, because TradFi companies have invested a LOT of money into their ETFs and it wouldn’t be nice for them to lose money, right?

Btw, there are a LOT of ETFs with the first deadline coming up. A lot of speculation and a lot of hope after the Greyscale win. Qrafty isn’t sure about that…

So now Binance is considering shutting down their service altogether in Russia.

4. Genesis Global and Digital Currency Group reach agreement

In other news, as we watch the Barry Silbert drama (or comedy, depends on your interpretation) unfold, Genesis Global and Digital Currency Group have reached an agreement with Genesis' creditors to resolve bankruptcy claims.

Creditors could recover 70%-90% in USD or 65%-90% in digital assets. The deal includes payment of $630 million in loans due in May 2023 and a $1.1 billion promissory note due in 2032, among other potential claims. The focus in on the keywords could and promissory note, mkay?

DCG/Barry avoids the embarrassment of bankruptcy, avoid hundreds of millions in loan paybacks. It looks more like a potentially deceptive arrangement by DCG to circumvent bankruptcy. In simpler terms, to Qrafty this doesn’t really look like a repayment plan… That’s nasty… or brilliant.

5. HEX and all Richard Heart’s coins are down bad

Richard Heart’s tokens took a nosedive that would make even a roller coaster blush! As the threat of lawsuit is becoming as real as the “Enigma” diamond which Heart bought in February 2022, people are abandoning ship and selling in an environment where there’s close to no liquidity. Huge, huge losses. Qrafty doesn’t care what he bought, but if it’s from user funds… that’s a big no no!

• PulseX ($PLSX) down -92%

• Pulse ($PLS) down -87%

• $HEX down -99%

Crypto exchange OKX has already announced plans to delist the tokens. It’s pretty clear that more will follow.

Hey hey 🙃 Qrafty hopes you are enjoying the experience here and would like to regularly get Qrafty’s letters!

If so, please click on the button below. Qrafty is really really grateful to have you here, so thank you!

If my crypto wallet could beat me, I would be in a coma!

Qrafty’s thought of the day

Other stories from today worth considering

FTX witnesses should not be considered, says DOJ

The DOJ wants every expert witness proposed by Sam Bankman-Fried should be prohibited from giving testimony. Why? Well… easy: the DOJ suspects they are being trained to lie, their experience might be worthless or they don’t have enough intel about them.

On their end, Bankman-Fried's team seeks to disqualify a financial analysis expert put forward by the Department of Justice, as his intended testimony might not conform to the established rules.

Ethereum staking balance surges to 28M ETH

The Ethereum staking balance has seen a substantial increase, reaching a peak of 28 million ETH, twice the amount currently available for purchase on exchanges. According to data from Ultrasound.Money, the total amount of staked ETH now stands at 24.3 million, constituting over 20% of the entire Ethereum supply and valued at an impressive $40 billion.

Liquid staking platform Lido holds the largest portion, representing approximately one-third of the total staked ETH, with a valuation of around $14 billion. Despite the strengthening Ethereum staking narrative, this positive trend is not being mirrored in asset prices, which is still bearish.

This trend is further accentuated by the decreasing amount of Ethereum held on centralized exchanges, as more individuals opt for self-custody and staking as their preferred method of engagement with the cryptocurrency.

Bitstamp US withdraws popular coins from trading

As per their previous announcement, Axie Infinity (AXS), Chiliz (CHZ), Decentraland (MANA), Polygon (MATIC), Near (NEAR), Sandbox (SAND) and Solana (SOL) have been withdrawn from trading from the Bitstamp platform (the oldest cryptocurrency exchange) for the US users.

FED’s head of bank supervision steps down

Fed's head of bank supervision is departing Oct 1st, 2023. Niel Willardson will replace Azher Abbasi as interim executive vice president. Azher had oversight of lenders including Silicon Valley Bank and First Republic Bank.

Pretty good supervision since these banks, along with A LOT more others have gone bust, don’t you think? If Qrafty were mean (or smart), there’s an angle where this gentleman is being stepped down for a job well done.

Market Whispers

Qrafty is speechless, what can you say when you see such a candle? Qrafty wished yesterday for some action in the market but didn't knew Qrafty has such power of manifestation 😇 

As everyone on CT (or is it CX now that is not called twitter anymore 🤷🏼‍♂) who was bearish from 16 of August, Qrafty caught the dip and is out for party tonight! Cheers!

PS: let's hope this lasts more than a day 🙏🏻

Today is NATIONAL LEMON JUICE DAY!

That’s all from Qrafty 🦡 for today! Qrafty thanks you and wishes you to live each moment as if you are listening to the music you love most!

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