*Qrafty unleashing a crypto confetti cannon* Ahoy, fellow digital voyager! I am Qrafty, the crypto honey badger, extending a hearty digital handshake as we step into Coinqraft, your VIP ticket to the grandest crypto carnival in the digital hemisphere!

From mind-bending breakthroughs to coin tales that rival bedtime stories, we've got the crypto scoop you crave. Buckle up your virtual seatbelts, because we're about to embark on an exhilarating journey through the digital cosmos, one quirky insight at a time!

🦡  Qrafty's back from the carnival with scoops hotter than jalapeño coins! Grab that drink, take a deep breath, relax and allow Qrafty to carry you smoothly through the waves of understanding the loco of crypto 🌊☕

Today’s Story

Pan et Circus for the Modern Age

The Colosseum stands proud, a timeless sentinel of history. Echoing with roars of gladiators and cheers of crowds, it witnessed grand spectacles of ancient Rome. Its stone walls harbor tales of valor, turmoil, and entertainment, embodying an era's triumphs and tragedies. Qrafty was truly impressed at the grandeur and craftsmanship that ooze from the majestic work.

Once, it was the arena of the warriors and fighters, a magnificent architectural masterpiece which hosted emotional rollercoasters in the form of fierce battles between gladiators, individuals highly trained in the art of fighting and showmanship (it’s not really easy to fight and make a show at the same time). Contrary to popular opinion, gladiators would rarely die, as they were assets that carried high value.

Most would ask: why did they do this?

Because violence is exciting and scary, thus appealing and sexy for humans! It’s like a live Netflix back in the day, with different genres but all ending up in bloody ights. A very low and primal part of us that deals with survival and reproduction, which once you have graduated from life’s school of emotion it kinda disappears from your experience. But since most of us live in a constantly emotionally unbalanced environment, we still express that dimension of us in different ways.

The saying “Pan et circus” comes from Latin and literally means “bread and circus”.

What does that mean, Qrafty? 

It means that, in order to have your population maintain a conduct that an emperor can reasonably manage at scale, that population needs two things: food and entertainment.

Rings a bell, does it resemble anything like today? What, you actually thought things changed that much in 2000 years? Ha, not so much, isn’t it? Entertainment and food production are hugest industries, and rightfully so. Times and culture change, people are mostly the same.

Today, the battleground is different, but the emotions stirred are just as intense. The so called clash between these tech giants echoes society's fascination with power and its ability to shape the masses through their digital empires.

From an economic standpoint, this encounter highlights the immense wealth and influence amassed by Musk and Zuckerberg, who have harnessed the digital realm to catapult themselves into the echelons of global power. Their duel underscores the evolving nature of business, where technological prowess is as valuable as physical assets. The fight could generate significant revenue through ticket sales and sponsorships and other media rights, which Elon Musk stated that all will go to veterans. That’s a good thing, veterans actually need those funds.

But the biggest capital gain is actually in them drawing attention back to X (formerly known as Twitter) and Facebook. This will be the event of the year and will draw eyeballs again towards their platforms. Which, in case you didn’t know, lost a lot of users to TikTok lately (not only that, but there are also some brand fatigue issues, perception from users, etc.).

This is not just a PR stunt, it’s actually a really well engineered global event with the purpose of getting people back on those two platforms and boost new registrations. For investors, it’s important to get people back to these platforms and spend there, not on TikTok.

So the outcome is waaaay bigger than the investment for them. Both X and Facebook have changed and upgraded lately, making a push on video to tackle TikTok. So yeah, no wonder this is happening.

Politically, this fight mirrors the growing scrutiny on the power wielded by tech moguls. Which is mostly for the show and perception of the masses. The control they exercise over digital platforms holds sway over information dissemination, sparking debates about regulation and the potential manipulation of public opinion. The Twitter elections scandal and FBI implication in the whole process is revealing.

Amid the grandeur of this event, there's an element of entertainment that reflects our evolving media landscape. The clash isn't just about two billionaires, but a statement on the era of sensationalism and instant gratification. It’s all about getting that dopamine hit, right now.

Qrafty appreciates living in the moment, that’s the beauty of life. But that’s not instant gratification, it’s just jumping from one pain to another, with the hope that the small temporary pleasure of that dopamine is the expression of bliss.

Unfortunately, it’s not and that keeps up in a never-ending cycle of scrolling through social media, binging braindead shows on tv and eating things that are good on the palate but terrible for your body and mind. But it’s a system that works and people have grown accustomed to the ease of it, aside from the chemical temporary benefits.

In the grand scheme of things, this small badger believes that this duel stands as a metaphor for the modern world. As we marvel at this spectacle, we must also consider the pressing issues our generation faces. The Colosseum, once a symbol of both splendor and moral reflection, serves as a reminder that while battles of the digital age may entertain, our focus must remain on steering these innovations for the betterment of humanity.

Just as the Colosseum's legacy transcends time, let this event remind us that shaping the future is a responsibility we all share.

🙃 Qrafty hopes that today’s main story brought real value to you and helped provide a different perspective on current events! Now it’s time to have some fun! 😇 👇️ 

Qrafty actually tried this and when you are there, in the moment, seeing that look that tears through your soul like a knife through butter, it’s not funny!

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

Here are the main news of the day

1. Both the SEC and Bittrex got what they wanted: a settlement. One is happy, the other is content.

Another big payday for the SEC! SEC Chair, Gary “Crypto Daddy“ Gensler, hauled in another $24 million of them greenbacks for the house from the peeps at Bittrex!

Qrafty, can you get off your high and speak like a normal badger?

My bad… sowy… So Bittrex settled the lawsuit that they had with the SEC and will pay $24 million. Out of that, $5.6 million for the fine for operating an unregistered national securities exchange, broker and clearing agency. Of course, Bittrex denied that they had any US customers so this doesn’t apply.

And the rest of it… here’s the beauty… which is about $18 million is for the illicit profit made in 60 days after the liquidation plan was filed in the bankruptcy case. Qrafty should remind you that Bittrex declared bankruptcy on the 8th of May, 2023.

The people at Bittrex are all happy and excited, like little children receiving a gift on a random day. Seriously, Qrafty quotes them below 👇️ 

Now you see why Qrafty was saying that it was a slap on the wrist? They literally say that Bittrex made $18 million in profit in 60 days. And they received a fine of $24 million. No wonder they’re happy. Everyone is happy: for the SEC it’s a clear victory and for Bittrex it’s part of the “cost of doing business in this country“ piggy bank. And it’s quite cheap too, if you ask Qrafty.

Gurbir Grewal, the SEC Enforcement Director stated: "[the settlement] makes clear that you cannot escape liability by simply changing labels or altering descriptions because what matters is the economic realities of those offerings".

William Shihara, Bittrex’s former CEO, mention that the settlement is "a good outcome".

See? Everyone’s happy! Whether that figure is high or low, you will be the one to judge.

2. Ark’s ETF has been delayed by the SEC

Didn’t Qrafty say that Ark’s ETF is going to be delayed in a previous edition of the newsletter? But remember, that doesn’t mean rejected. It’s not NO, its’s just “Not now…”.

It’s like every once in a while there’s this conversation occurring, in one way or another:

ETF: Daddy, there’s a lady from a place called ARK invest who wants to show me to the world. Can I go? Pleaaaseee pleaaasseee. May I go out and play with the world? There are soooo many people who want to play with meee!

SEC: Yes honey, but not today.

ETF: Why nooot? You said the same last time. And the time before that. And before! You are a meanie!

SEC: People' aren’t ready for you yet, you precious thing…

ETF: And who decides when people are ready for me, daddy?

SEC: Me!

So, just to be clear, the ETF approval train is on the tracks, but it seems it's making a pit stop for snacks and a quick game of Sudoku. So, hold onto your portfolio, because the 'not right now' station is where we're currently parked!

3. Judge: Robinhood has no legal obligation to protect your capital, unless you’re a shareholder

Dismissed by Appeals Court: a lawsuit against Robinhood, claiming it restricted meme stock trading, faces rejection by an appeals court. Investors alleging losses from the meme stock fiasco had their case dismissed due to legal insufficiency.

Is this during the GameStop squeeze, Qrafty?

Yes, yes it is, my dear reader. 16 investors claimed that Robinhood restricted them from buying 13 “meme” stocks during the January 2021 funtime, and they couldn’t profit off the squeeze. They lost the trial, so they appealed.

An appeals judge upheld the decision, stating Robinhood had the right to restrict trading and wasn't obligated to shield investors from financial loss.

What?! How is that possible, Qrafty? Users are left in the dust?

Pretty much so, yes. The only obligations Robinhood has are towards its share holders, that’s it. So users, not so much. Their decision was basically between remaining profitable and pissing off users or taking a big loss but making users… let’s say happy (truth is, users are never happy). So Robinhood said “no trading fo’ you!” and didn’t allow purchase of the 13 meme coins.

Why didn’t they allow that?

This all started from a Reddit community that decided to fight against Wall Street shorting these stocks. GameStop was the first one and a dear to many users. So someone noticed that a big Wall Street firm was short GameStop and boasted with that, being quite sure of the trade.

As life has a knack for kicking you in the bum exactly when you think you are the center of the Universe, what happened very simply was that users started buying that stock and sent the price upwards. The firm that had the bet that the price would go down suddenly was facing liquidation on their collateral on that bet. It had to get more money to top up the account for the “bet” to be still on. The higher GameStop’s price went, the higher the potential loss for the one who bet against it. So that actually happened and the Wall Street company lost a huge deal of money, and this spilled over to other stocks as well.

Robinhood users could buy those stocks freely until that moment, but while this was happening, the app blocked access to buying those stocks. This made users unable to participate in the short squeeze and reap the rewards. That’s what they sued for. Unfortunately, that’s not a real legal loss that was incurred to them by Robinhood. It’s more like their feelings got hurt, but they didn’t lose any of their money. They lost potential profits, which is like saying that you can be president of the US. You could try, but it’s not guaranteed to happen.

So what now, Qrafty?

Now they will try their luck with the Supreme Court, but it’s highly unlikely that the result will be different. The main cause is that the plaintiffs failed to provide proof for actual damage they incurred.

4. Amazon is giving away NFT’s 

Word around the crypto jungle is that Amazon is busy developing its own NFT marketplace, which is a good thing as they have a base of about 170 million subscribers for their Prime feature.

And even more cool is that you get free NFT’s if you own Prime, they’re there waiting for you! Even if they might not matter much to you now, just make the small step and claim them. Leave them there and from time to time take a look and read up a bit on what happened with the games and those NFT’s.

There is a good chance that during the next bull run you might get lucky and one of those projects will boom. There is also a great possibility for all of them to go bust… but hey, at least it’s all free!

Finally, you will get acquainted with the idea of NFT’s and how to use them around the cryptoverse.

5. Argentina too Launches Investigation Into Worldcoin

Argentina is only the latest to join the club of countries investigating Worldcoin. Qrafty talked about this previously in a newsletter, UK is also making enquiries into Worldcoin and Kenian authorities raided a Worldcoin warehouse.

The Silicon Valley ethos of “move fast, break things” and bribe… pay, Qrafty meant pay small fines and slaps on the wrist later from legislators and politicians who have absolutely no idea what you are doing and how you are doing it…. that ethos is alive and strong with the people behind Worldcoin.

It appears it’s the exact same situation now with taking all that biometric data from the people who agreed to have their eyes scanned in exchange for receiving 50$ in coins. Whether they know what they’ve agreed to or not, that’s a whole different story.

It’s also not a coincidence that they started in countries with a not so happy economic situation, get it? They get more biometric data for their buck. If they did that in NY, the amount of eyeballs in their digital bag would’ve been considerably lower. Plus most likely the authorities would’ve acted faster and more decisive. Or not…

It’s not really about one person or another specifically, it’s creating a private database with this data and deriving the unique insight that provides. It’s damn dangerous, extremely obscure and exactly what SV companies thrive on: getting the unique edge and profit, regardless of the legal (don’t even mention moral, humanitarian, etc.) consequences. It’s like their motto is: “Better say sorry than ask for permission”. In the tech world, especially at his level and with this kind of data, things don’t happen by chance. We will definitely be hearing more of them.

6. US President Joe Biden asks Congress for $40billion, out of which $24 billion more for Ukraine

Oh c’mon Qrafty, I’m really not here to read about wars and Ukraine and Russia and all that…

Qrafty is sorry for this and doesn’t like it one bit either… But it’s an important news because that kind of amount impacts the economy in ways we cannot understand now… at the same time, that amount just disappears from the books, as the money is not going to be tracked in very transparent and clear ways. Just like all the previous funds sent to Ukraine up until this moment.

But what if we had a blockchain that would’ve tracked these funds and we could have all seen how these funds flow and where?

These public spending black holes would be brought to light and considerably diminished and reduced.

Now you see why Qrafty said that blockchain infrastructure is to monitor public spending and to empower the people in their relationship with the State? And NOT to turn blockchain against the citizens of the country?

Repeat after Qrafty: blockchain is for the public to monitor government spending! NOT THE OTHER WAY AROUND!

Hey hey 🙃 Qrafty hopes you are enjoying the experience here and you 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! 😁 

Gamified investment is the new investment

Qrafty’s thought of the day

There’s something fishy about AI regards lately. Maybe Qrafty is just being a bit paranoid and seeing too much into this, but Qrafty recently noticed that the SEC Chair, Gary Gensler, mentioned that AI will created many economic crises. Not just one, but many! Not only that, but AI will be at the center of all of them.

Qrafty asked what and how does Mr. Gesler know about AI, and especially what is the context in which he is saying that AI will be the center factor triggering financial crises. It’s interesting to say the least, since Mr. Gensler’s technical background isn’t sparkling. So Qrafty assumes that he has seen some data or has some information that is clear and precise which leads to that conclusion. So… what is it?

Even more, Qrafty took a look at another article saying that the AI stock bubble may be popping, which has some interesting data points.

Is there a narrative slowly being created around AI as the scapegoat for the pile of mess that is still under the rug since Covid and other recent… financial adventures in spending of the government? Are we slowly being prepared to blame the nasty AI for all the recents wrongdoings of humans?

Seems like a perfect escape goat… but Qrafty is just deprived of sleep, since Qrafty has been doing transcendental meditation and feels buzzy all around…

Other stories from today worth mentioning

• Sandbox Token Drops 20% Ahead Of Major Unlock

  Most likely, someone is trying to spook the holders and sell into panic with this flash crash.

  Yes, we might be in a bear market, but $SAND is one of those few GameFi projects that have a good product, players and… most importantly… a future!

  Qrafty isn’t endorsing anyone, but there are a few projects that are worthy of attention and Sand is one of them.

   

• XRP briefly hits $50 on Gemini because of a glitch

  The wet dream of any XRP holder has just manifested on Gemini. Like any wet dream, it tends to end and dissolve quite fast, but the feeling afterwards remains.

  Due to a technical error, XRP hit a price $50 per coin. 50 United States DOLLAAAZ for a single XRP coin.

  Also, for a short time, Brad Garlinghouse and Chris Larsen were able to buy entire countries and most likely rivaled with Larry Fink from BlackRock… just so you understand what a $50 per XRP means.

   

• Average price of rent in Manhattan hits new high 

  It’s a spike, but average rents in Manhattan have jumped 30% since 2019, so that’s insane. It hit a new record of $5,588 per month. That’s… a lot!

  Yet somehow, prices continue to soar despite the exodus, people moving out of the city.

• Aave’s GHO Stablecoin out and depegged slightly

  Aave launched their stablecoin, GHO and joined the new trend of issuing stablecoins. It started off a little bumpy, trading at a discount of 3%. Most likely, it will get more liquidity and repeg.

• What if Michael Saylor bought Ethereum instead of Bitcoin?

  There’s a fundamental difference between BTC and ETH that no amount of money can differentiate in the eyes of some legislators: BTC has no known and identified issuer. Hence, it can’t be a security of anyone and anything.

  It’s easy to claim you’re a genius when you look back, right? Here’s the difference in USD between BTC and ETH with the same amount invested by Michael Saylor. But Qrafty hardly believes that Michael Saylor regrets any of this.

Feel that? What….? Your crypto IQ rising?… No no, not that! Nvm, let’s just focus on the crypto IQ, okay?

Qrafty, what is an epoch in DeFi and how does it work?

Well, think of the seasons of a super quirky TV show starring all your favorite blockchain characters.

In this show, each epoch is like an episode where the blockchain gang gets together to make important decisions. But here's the catch: they only have a certain amount of time to chat. It's like speed-deciding the fate of the crypto-universe! When the buzzer goes off and the epoch ends, the curtains close on that episode, and a new one starts. It's like the show's producers saying, "Cut! That's a wrap on Epoch 1, folks!" Then, they swap out the props, change the background, and boom, Epoch 2 kicks off with a fresh vibe.

These epochs don't follow regular human time. Nope, they have their own beat. One epoch might be as quick as a hiccup, while another could drag on like a sloth in a marathon. You see, the length of an epoch is a decision made by the creators and maintainers of a specific blockchain. It's like they're the directors of the crypto-movie, and they get to choose how long each scene, or in this case, each epoch, lasts. Different blockchain projects have different needs and goals, so they pick epoch lengths that suit their purposes.

Market Whispers

The USD went all "I believe I can fly" after yesterday's dip, soaring from 101.78 to 102.9.

It's like the star of the show, getting all the spotlight and leaving risk assets doing the awkward side shuffle while throwing those weird sidelooks like: “dude, can we get a break, you’re killin’ us here!” Say it in a Tony Soprano voice and you’re good!

Even if today's ETF delay by the SEC could've pushed bitcoin up a bit, it's not a rejection of the ETF, just a delay. It’s the “I’m not saying no, just not now!” unwanted reply to a market of eagerly awaiting peeps ready for some action!

Check out the Perseid Meteor Shower this weekend!

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