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We hope you had a wonderful weekend, readers â weâre glad to see you again. Welcome back to another weekly recap with Tokengraph, where we bring you real crypto news within its cultural context â and send you off with some great resources, too.
On todayâs agenda:
The SEC Doesnât Agree with Itself
Is the SEC lightening up on Crypto?
The Game Boy Wallet to Rule Them All
The Big Short: SBF Edition
Crypto Scam = 100 Years in Prison
And moreâŠ
A lot has gone down on Crypto Twitter over the past week â letâs get you up to speed.
Weâre seeing continued tension between the Securities and Exchange Commission (SEC) and the crypto world, with no significant headway made in the regulatory space. SEC Chairman, Gary Gensler, has reiterated the agency's willingness to assist cryptocurrency firms in their registration processes, despite the fact that no firm has yet successfully completed this process.
There's a widening chasm in the SEC itself regarding the clarity of existing securities regulations and their applicability to crypto businesses. While Gensler and the SEC's legal team push the narrative that current laws offer sufficient guidance, dissenting voices, including SEC Commissioner Hester Pierce, contest that these rules are not only vague but also incompatible with the evolving nature of the blockchain industry.
Overall the SECâs response reinforces Coinbaseâs longstanding concern that our industry does not have clarity on what the SEC may consider to be within or outside its jurisdiction at any time, and it is likely to continue changing its mind along the way. 6/7
— paulgrewal.eth (@iampaulgrewal)
May 16, 2023
In a recent development, Coinbase's request for a writ of mandamusâan order which would obligate the SEC to offer unambiguous rules concerning crypto regulationâwas met with resistance by the SEC. In response, Paul Grewal, Coinbase's Chief Legal Officer, shared his views via a Twitter thread.
Furthermore, the SEC showed a slight softening of its stance when it forgave blockchain file sharing platform, LBRY, a significant part of its debt. The company, however, warned the sector against interpreting this as a wholesale change in the SEC's approach to crypto regulations.
2) The SEC's decision to no longer seek disgorgement against LBRY should be read as pure self-interest: the SEC thought they would lose, and wanted to avoid a bad precedent.
We've seen no sign that the SEC is softening its hostility towards blockchain generally.
— LBRY đ (@LBRYcom)
May 15, 2023
Growing legal interest in blockchain technology was underscored by a tweet from blockchain investigator ZachXBT. He noted that the meme coins âNYAN Meme coinâ and âGrumpyCat coinâ actually both just received cease-and-desist letters on-chain â something that we canât imagine lawyers doing even 3 years ago.
Wow both pump and dump meme coins @Nyanmemecoin @GrumpyCat_Coin were just sent cease and desist letters on-chain. https://t.co/drJvjfOQr0
— ZachXBT (@zachxbt)
May 18, 2023
In legislative news, crypto-friendly congressman Tom Emmer unveiled a new bill which, if passed, could potentially simplify the regulatory burden for the crypto industry, inadvertently doing some of Gensler's work for him.
And finally, the week rounded off with an unexpected surge in real-world counterparts to the Pudgy Penguin NFT craze on Amazon in the form of childrenâs toys, affirming that the blockchain industry's influence continues to permeate various aspects of daily life.
Wow @LucaNetz just said in the first 2 days @pudgypenguins sold over $500k of penguins on Amazon thatâs over 20,000 Individual penguin toys already đ€Ż https://t.co/iNpr31EY0F
— Spencer (@sgsand1)
May 18, 2023
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In a unique fusion of retro gaming and modern technology, crypto startup Keyp is revamping vintage Nintendo Game Boy consoles to create the Game Wallet, an offline storage solution for cryptocurrencies. With this inventive project, the developers aim to ensure that users can safely store Bitcoin, Ethereum, and other cryptocurrencies that use BIP-32 seed phrases, while also enjoying a splash of '90s nostalgia.
Announcing Game Wallet đŸ
Turn any GameBoy into a secure offline cold wallet.
Sign up to be notified when sales start:
https://t.co/t53Ee5Dcn0 https://t.co/DjqqNI9R1T— JOSÎPH đ© (@CupOJoseph)
May 19, 2023
The Game Wallet is more than just a clever repackaging of a traditional hardware wallet within a Game Boy console. The device is, in fact, a brand-new Game Boy game cartridge that utilizes gamification to generate user seed phrases. By engaging in various quests and interacting with non-playable characters (NPCs), users create their seed phrases, adding an enjoyable layer to the often mundane process of setting up a crypto wallet.
"We're producing a real physical cartridge that lets you use your Game Boy as a cold storage wallet," the Keyp developer disclosed. https://t.co/IZXTvDreNu
— Bitcoin News (@BTCTN)
May 20, 2023
Keyp's founder, Joseph Schiarizzi, shared with Decrypt that the game experience will have a distinct "Pokémon-like" feel. This fun, interactive approach is part of Keyp's broader mission to make Web3 technologies simple and safe for everyone. Schiarizzi emphasized that the Game Wallet is not just an engaging project, but an integral extension of their commitment to creating user-friendly Web3 tools.
Despite being in development since January, the Game Wallet has recently gained more relevance due to controversies surrounding Ledger's new "recovery" service. Keyp's small yet dedicated team recognizes the growing demand for genuinely offline storage solutions, particularly in light of rising concerns around the security and reliability of hardware wallet firmware updates.
Gameboy cold wallet demo: seed phrase is generated by talking to an NPC using a hash of your previous 500 button presses as you walk around and do quests. https://t.co/91sBtBE6uw
— JOSÎPH đ© (@CupOJoseph)
Jan 21, 2023
Co-founder Sascha Mombartz highlighted on a Game Wallet product page the necessity of truly offline cold storage in this climate of uncertainty. According to Mombartz, the Game Wallet, as an offline storage device with no firmware updates, provides a trust-minimizing solution. Mombartz noted that while the Game Wallet initially seemed like a fun idea, it has rapidly evolved into a crucial product given the challenges of trusting new security devices and their supply chains.
The Game Wallet offers a perfect example of old meeting new, with a vintage Game Boy serving as a trustworthy, fun, and engaging means to secure your cryptocurrencies. It embodies a unique blend of nostalgia and technological innovation, making the world of cryptocurrencies more accessible and user-friendly.
Which of the following Agricultural sectors has started heavily implementing blockchain technology through Dimitra, a global AgTech firm?
A. Coffee
B. Tea
C. Corn
B. Textile
Scroll down to the bottom to see if you're right!
⥠Lightning Round: Weekly Updates
Bestselling author Michael Lewis is close to completing a book on Sam Bankman-Fried (SBF) and the infamous collapse of the FTX crypto exchange. The book, "Going Infinite: the Rise and Fall of a New Tycoon," aims to provide a compelling account of SBF's journey and the dramatic turn of events at FTX. While Lewis has kept most details under wraps, he promises a narrative that reads like fiction, regardless of the reader's familiarity with crypto. The author has interviewed key players, including SBF himself, and has a tentative publishing date set for October 3.
Â
Ethereum co-founder, Vitalik Buterin, has issued a warning about stretching Ethereum's consensus beyond its core functions of block validation and network security. He asserts that expanding the consensus role could introduce high systemic risks, urging for maintaining the network's minimalism. Buterin suggests caution with projects that risk increasing the blockchain consensus' scope beyond its original purpose.
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Bryan Lee, a resident of Las Vegas, has been charged in connection with the $45 million CoinDeal crypto scam, which defrauded over 10,000 investors. The U.S. Department of Justice alleges that Lee, alongside others, misappropriated millions for luxury purchases. Lee potentially faces a century-long prison sentence if convicted.
â Trivia Answer
Answer: A.
Small-scale farmers of the Indonesian Co-op Solok Radjo are using blockchain technology in a big way through Dimitra to streamline their data sharing, improve quality control, and enhance coffee processing. Furthermore, these apps aid in meeting stringent export criteria, thus boosting profitability and supporting local farmers.
Web3 Resource of the Day
The Surprising Truth about Crypto Hardware Wallets | Video Podcast from Bankless
Curious to hear more about the Ledger Walletâs ârecoveryâ controversy? Wondering if your crypto is safe with Ledger (or if you need to find a different option)? Take a look at this recent podcast episode from Bankless, where hosts David Hoffman and Ryan Sean Adams take a look at what has happened, whoâs fault it was, and if Ledger is to blame â or if this was just one massive misunderstanding by the crypto community at large. Skip to 33:15 to hear about the Ledger drama right away.
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DISCLAIMER: This is not financial advice. This newsletter is strictly educational and is not investment advice to buy or sell any assets or to make any financial decisions. Do your own research.