Decentral Block Post

In Part 1, we detailed three of the different kinds of crypto OGs you might meet at an industry party.

They were: (1) shadowy super coders and/or anon founders, (2) “reputable” and respected OG industry leaders like Vitalik Buterin and Brian Armstrong, and (3) the comeback OGs, who were trying to shake off the stink of a failed project.

This time around, we meet even more categories of crypto OGs, with insight from the insiders most familiar with them.

The “NeoGs” market makers and traders

There are a select few crypto players who joined the game late, yet they rose to prominence to become behemoths in terms of net worth and impact. Usually, these are savvy market makers and traders who are often mistaken for OGs.

Take, for example, Sam Bankman-Fried, the founder of FTX trading exchange and quant trading firm Alameda Research. Amid the recent crypto collapses, he gained even greater prominence as he stepped in big to provide bailouts and minimize the contagions.

There’s a version of the future that’s tantalizingly possible in which Ethereum becomes the base layer for pretty much everything.

Recent advances in a technology called zero-knowledge Rollups — from StarkWare, Polygon and zkSync — enable the blockchain to move from fewer than 20 transactions per second to… well, an infinite number of TPS.

In theory, it would allow the entire world’s financial system to run on Ethereum.

“I think it’s theoretically possible,” explains Declan Fox, product manager for rollups at Consensys, which provides Ethereum infrastructure and apps like MetaMask. “We have the technology to achieve that kind of throughput necessary.”

With recursive rollups and proofs, we theoretically can infinitely scale.

Coming every Saturday, Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more — a week on Cointelegraph in one link.

Top Stories This Week

US Fed vice chair Michael Barr favors hard line on crypto, OCC acting head no friendlier

Global crypto regulation remains a prevalent topic looming over the sector. Recent comments from United States Federal Reserve Board Vice Chair for Supervision Michael Barr and Acting Comptroller of the Currency Michael Hsu favored a lean toward more government overwatch. Barr expressed a desire for stablecoin regulation as well as crypto-related banking regulations. Hsu’s comments included looking at the industry cautiously.

GameStop doubles down on crypto amid a new partnership with FTX US

GameStop is teaming up with crypto exchange FTX US in a promotional partnership. So far, 2022 has seen GameStop pursuing increasing involvement in the crypto space, evident in its NFT marketplace launch and its new gaming division devoted to Web3. GameStop has a long-term vision for crypto involvement, according to CEO Matt Furlong during a Q2 fiscal year earnings call.

Crypto OGs — slang for Original Gangsters — have acquired almost a mythical and godly reputation in an industry populated with libertarians, anti-government rebels, innovators, get-rich-quick scammers, hackers and degen investors with rampant gambling addictions and toxic social media behavior.

Who are these OGs exactly? Unlike the rich and powerful in the traditional finance and conventional tech sector, crypto OGs are often protected by a layer of decentralized anonymity in a particularly wild corner of cyberspace. Who deserves this mythical label? The year they got into crypto? Their current net worth? Their lifestyle? Their impact on the industry?

How can you separate the randos and wannabes from the OGs? Without further ado, here’s our guide to spotting OGs at any networking party, written with insider tips from real-life OGs.

1. The shadowy super coders and/or anon founders

These are the OGs that look underwhelmingly and deceptively average.

In New York and San Francisco, they’re the ones going around like starved college students, burying their heads under a hoodie and nodding to electronic beats from their headsets on a subway train. In Singapore, they are the ones blending in seamlessly with any given “uncles” at Kopitiams, wearing nondescript shabby shirts, slippers and Bermuda shorts.

It took a few years, but government crackdowns on “insider trading” involving digital assets have finally arrived. It’s about time! Insider trading occurs often in our securities markets, so it was only a matter of time before crypto and other digital assets would be exploited improperly by miscreants for financial gain.

Powers On… is a monthly opinion column from Marc Powers, who spent much of his 40-year legal career working with complex securities-related cases in the United States after a stint with the SEC. He is now an adjunct professor at Florida International University College of Law, where he teaches “Blockchain & the Law.”

Back on June 1, the U.S. attorney for the Southern District of New York announced a criminal indictment against a former product manager of the OpenSea marketplace, Nathaniel Chastain. He is charged with using the confidential information about which nonfungible tokens were going to be featured on OpenSea’s homepage to buy them in advance of that event, and then sell them after they were featured. It is alleged that to conceal the fraud, Chastain conducted these purchases and sales using various digital wallets and accounts on the platform. He is charged with wire fraud and money laundering through making approximately 45 NFT purchases on 11 different occasions between June and September 2021, selling the NFTs for 2x to 5x his cost.

There are a few interesting things to note about the indictment in United States v. Chastain. First, the criminal charges do not include securities fraud. Why? Because while there may be occasions when an NFT sale involves the sale of “investment contracts,” which are one kind of “security” under the federal securities law, it seems here that the NFTs in question did not fall under that categorization. Also, even if some of the NFTs might be “securities,” the U.S. attorney wisely found no need to tack on that added charge, given that wire fraud carries a longer prison term. Wire fraud is also easier to prove.

Second, the indictment does not indicate the amount of financial gain Chastain obtained from this purported scheme. Given this, I can only assume it was a relatively small dollar amount, probably less than $50,000.

Coming every Saturday, Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more — a week on Cointelegraph in one link.

Top Stories This Week

DC Attorney General sues Michael Saylor and MicroStrategy for tax evasion

MicroStrategy co-founder Michael Saylor faces charges of evading United States income taxes he allegedly incurred while living in Washington, DC. The office of the region’s attorney general, Karl Racine, has sued Saylor and MicroStrategy on claims that the firm helped Saylor evade over $25 million in DC income tax. The charges, stemming in part from an amendment to DC’s False Claims Act encouraging whistleblowers to report tax evasion, mean Saylor could see $75 million in penalties.

Crypto.com backs out of $495M sponsorship deal with UEFA Champions League: Report

Crypto.com has decided not to go through with a $495 million sponsorship agreement in response to possible regulatory issues. The sponsorship deal with the Union of European Football Associations (UEFA) would have seen Crypto.com advertised in the UEFA Champions League for five seasons. The crypto exchange was reportedly in sponsorship talks after the Champions League removed Gazprom, an energy company owned by the Russian state, as a sponsor. Crypto.com already has several high-profile advertising efforts under its belt, such as a commercial starring American actor Matt Damon.

In episode 12, we recap the series and look at what consumerism should and could look like going forward. Our speakers bring expertise in the circular economy, plastics and biomimicry, and each has a view on policy and responsibilities. Today, most producers and a growing number of consumers will not deny there is a problem with the take, make and dispose model, but there is, and will be, a groundswell of roadblocks. From monolithic governments to multinationals and start-ups, our speakers bring solutions, which are taking advantage of technological advantages or have been staring at us for centuries – or both.

In episode 12, we recap the series and look at what consumerism should and could look like going forward. Our speakers bring expertise in the circular economy, plastics and biomimicry, and each has a view on policy and responsibilities. Today, most producers and a growing number of consumers will not deny there is a problem with the take, make and dispose model, but there is, and will be, a groundswell of roadblocks. From monolithic governments to multinationals and start-ups, our speakers bring solutions, which are taking advantage of technological advantages or have been staring at us for centuries – or both.

In episode 11, we scrutinise ethics. Today, profits, gross domestic product and growth take precedence over our environment, health and happiness, regardless of the consequences. We explore how we can realistically and holistically change this. After all, hundreds of millions of individuals globally are unable to meet their needs, all while subsidising the affluent and powerful. Private sector must refrain from congratulating itself for selective, superficial, incremental steps, especially when making decisions thousands of miles away from the people and environment that they affect. We address why governments must not abdicate responsibility, even if it means listening to those who may not have deep pockets or degrees, but who know a decent quality of life means. Consumers must also feel agency. As ever, our speakers share some practical lessons we can all learn from.

In episode 11, we scrutinise ethics. Today, profits, gross domestic product and growth take precedence over our environment, health and happiness, regardless of the consequences. We explore how we can realistically and holistically change this. After all, hundreds of millions of individuals globally are unable to meet their needs, all while subsidising the affluent and powerful. Private sector must refrain from congratulating itself for selective, superficial, incremental steps, especially when making decisions thousands of miles away from the people and environment that they affect. We address why governments must not abdicate responsibility, even if it means listening to those who may not have deep pockets or degrees, but who know a decent quality of life means. Consumers must also feel agency. As ever, our speakers share some practical lessons we can all learn from.

The financial and capital markets keep economies moving. Episode 10 explores the role of investors – who secure public funds, underpin multinational companies and enable startups to connect and scale – in sustainable production and consumption. We talk about the importance of managing risk and streamlining standards and disclosure that do not deter issuers, but still give investors confidence – all whilehowthey assess and fund companies is evolving. Monetising impact and patient capital are high on the agenda. Regulators are increasingly focused on sustainability, and this is predicted to take even more momentum in the future. Our speakers give recommendations, from credit ratings integrating environment, social and governance metrics, to the investor community and products diversifying further so as to distribute capital more equitably.