Chain Reaction

Crypto’s crown prince stumbles • ZebethMedia

By zebethcontrolPosted on November 10, 2022Posted in Chain Reaction, CryptoNo Comments

Welcome back to Chain Reaction. Last week on the podcast, we talked about trouble brewing for bitcoin miners. This week, we had to tear up our plans to cover pretty much anything else and turn our attention to what we think is the biggest story in crypto to unfold this year: the fall from grace of once-revered crypto exchange FTX and its former billionaire founder Sam Bankman-Fried (SBF). Do you want Chain Reaction in your inbox every Thursday? Sign up here: techcrunch.com/newsletters. this week in web3 Here are some of the biggest crypto stories ZebethMedia has covered this week. Sam Bankman-Fried says FTX in talks to raise capital, Alameda Research to wind down trading Sam Bankman-Fried said on Thursday that he will be winding down the trading firm Alameda Research and is attempting to raise liquidity for the troubled FTX International, as he scrambles to keep the world’s second largest crypto exchange alive after a bailout deal with Binance failed earlier this week. Bankman-Fried said in a series of tweets that he is engaging with a “number of players” to raise capital for FTX’s international business and those discussions are at various stages, including letters of intent and term sheet deliberations. Troubled crypto exchange FTX investigated by US regulators over customer funds Crypto trading behemoth FTX fell from grace this week after the exchange experienced a liquidity crunch and agreed to give its rival, Binance, the option to purchase the company’s non-U.S. operations in what appears to be a bailout. Now, U.S. regulators, including the SEC and CFTC, are looking into whether FTX potentially mishandled customer funds on its platform. Say hello to the newest crypto startups from web3 accelerator Alliance DAO’s demo day New crypto startups forged ahead during Alliance DAO’s demo day on Wednesday amid the FTX implosion. The most recent cohort, known as All9, for Alliance DAO, a web3 accelerator and builder community, presented their ideas on Wednesday during a demo day, exclusively covered by ZebethMedia. There were about 953 applications for this cohort, but only 17 teams were chosen and graduated from the program. Sequoia Capital marks its FTX investment down to zero dollars Sequoia Capital just marked down to zero the value of its stake in the cryptocurrency exchange FTX — a stake that accounted for a minor percentage of Sequoia’s capital but as of last week likely represented among the most sizable unrealized gains in the venture firm’s 50-year history. It alerted its limited partners in a letter that it sent out to them this evening, a copy of which ZebethMedia obtained and shared in this article. Some crypto VCs see decentralization as the future following FTX collapse (TC+) As the crypto market digests the past few days of chaos, venture capitalists see the moment as a warning, but also as an opportunity for the growth of decentralization and maturation of the larger blockchain space. ZebethMedia spoke with some investors to understand their long-term view of the industry following this week’s news from FTX. the latest pod We had to talk about the news that rocked the crypto world this week in our Thursday episode: the Binance/FTX deal that never was. To begin, we gave you a rundown of WTF just happened with the beef between two of the largest crypto exchanges in the world and how Sam Bankman-Fried’s storied exchange fell so far so fast, bringing down investors, cryptocurrencies and other companies in the space tumbling down with it. Once we ran through the background behind the situation that’s been unfolding in real time this week, we shared our thoughts on the massive implications this fiasco might have for the rest of the crypto industry, from venture capitalists and startups to regulation across the globe. It’s a fascinating backdrop for our conversation at our crypto event in Miami next week, where we’ll be chatting with Binance CEO Changpeng Zhao (CZ), the billionaire who is seen as the catalyst for FTX’s downfall. You can use the promo code REACT for 15% off a General Admission ticket to the event to hear from CZ and plenty of other crypto market players about what the future of this tumultuous industry might hold in the coming months. Chain Reaction comes out every Tuesday and Thursday at 12:00 p.m. PT, so be sure to subscribe to us on Apple Podcasts, Spotify or your favorite pod platform to keep up with the action. follow the money Web3 messaging infrastructure platform Notifi raised a $10 million seed round co-led by Hashed and Race Capital. Web3 API provider Ramp secured $70 million in a Series B funding round, co-led by Mubadala Capital and Korelya Capital. Blockchain fraud prevention startup TRM Labs expanded its Series B funding round by $70 million led by Thoma Bravo with participation from existing investors PayPal, American Express and Citigroup. Eterlast emerged from stealth with $4.5 million to develop web3 games for sports fans. Decentralized search engine Sepana raised $10 million from Hack VC, Pitango First and others. This list was compiled with information from Messari as well as ZebethMedia’s own reporting. Hear CZ for free at TC Sessions: Crypto Who better to give an insider take on the recent Binance/FTX news than Binance chief executive CZ himself? Score a free ticket, get the lowdown and explore the many conversations and networking opportunities at TC Sessions: Crypto on November 17 in Miami. The first 25 readers to register with this will join us in Miami on November 17 for free!

Why the CEO of the world’s largest crypto exchange backed Musk’s Twitter buyout • ZebethMedia

By zebethcontrolPosted on November 3, 2022Posted in Binance, Chain Reaction, Chain Reaction podcast, CryptoNo Comments

Binance’s CEO and founder, Changpeng Zhao, made headlines outside his typical wheelhouse of web3 as an investor in Elon Musk’s Twitter buyout. Zhao, who put in $500 million, told an audience at Web Summit in Lisbon, Portugal this week that he would consider joining the social media company’s board if Musk asked him to do so. But why is he eager to get involved with the messy process of running of a social media company when that seemingly has little to do with crypto, Binance’s core business? Essentially, what’s in it for the exchange? We attempted to answer that question on this Thursday’s episode of Chain Reaction, where we unpack and explain the latest in crypto news, drama and trends, breaking things down block by block for the crypto curious. You can listen to the full episode below: On this episode, we also talked about: NFT marketplaces such as LooksRare and Magic Eden pulling the plug on creator royalties and how the decisions could affect web3 artists Speaking of Zhao, he is one of the speakers set to join us at our upcoming crypto event in Miami on November 17th, and we’ll be sure to ask him about his plans for Twitter. If you’re interested in hearing more, you can use the promo code REACT for 15% off a General Admission ticket to the event. Chain Reaction comes out every Tuesday and Thursday at 12:00 p.m. PT, so be sure to subscribe to us on Apple Podcasts, Spotify or your favorite pod platform to keep up with the action.

Bitcoin’s future could hinge on mines over matter • ZebethMedia

By zebethcontrolPosted on November 3, 2022Posted in Chain Reaction, Chain Reaction newsletter, CryptoNo Comments

Image Credits: ZebethMedia Welcome back to Chain Reaction. Last week on the podcast, we talked about Apple’s App Store tax and how it could hinder NFT adoption. This week, we dug up a few stories about bankruptcies brewing in the bitcoin mining sector and asked ourselves whether this could unfold in a similar way to the troubles faced by DeFi lenders just a few months ago. We’re incredibly excited to chat with some of the biggest names in web3 at our first dedicated crypto event in Miami on November 17. We’ll be hearing from experts such as FTX’s Amy Wu, OpenSea’s Devin Finzer and Binance’s Changpeng Zhao on how their companies are shaping the future of the industry. We’d love to have you join us: use the promo code REACT for 15% off a General Admission ticket. Do you want Chain Reaction in your inbox every Thursday? Sign up here: techcrunch.com/newsletters. this week in web3 Here are some of the biggest crypto stories ZebethMedia has covered this week. Coinbase and Polygon back new crypto advocacy group in India Top crypto firms including Coinbase and Polygon are among the firms that have formed an industry body in India to promote dialogue between key stakeholders and drive awareness about web3, months after the largest local crypto advocacy group was disbanded. Members of the new industry body, named Bharat Web3 Association (BWA), include top local crypto exchanges, including CoinDCX, CoinSwitch Kuber and WazirX, ZebethMedia’s Manish Singh reports. Web3 infrastructure startup Tenderly takes on Infura, Alchemy with new node offering Web3 developer tooling startup Tenderly is getting into the node game with a new product it announced today called Web3 Gateway. The new offering is a sign of competition between web3 infrastructure providers heating up, as it puts the startup in direct competition with ConsenSys, the company that owns popular node-as-a-service provider Infura, and Alchemy, another widely used node provider in the industry. What’s going on with NFT royalties? (TC+) Creator royalties were originally introduced across the NFT community as a way to pay artists for their work in both primary and secondary sales. In recent months, conversations around these royalties shifted as some platforms, including LooksRare and Magic Eden, abandoned them for other alternatives. Not everyone is happy about it, as the decisions have huge potential implications for creators in the web3 space. Indonesia weighs blockchain-powered carbon trading scheme Indonesia wants to direct the blockchain craze toward greener use. The Indonesia Stock Exchange (IDX) has signed a memorandum of understanding with Metaverse Green Exchange (MVGX), a Singaporean startup that specializes in digital exchange technology. The intended collaboration centers around IDX’s emission trading scheme that is slated to launch in 2025, and MVGX’s job is to help IDX build a carbon registry and exchange with blockchain as the infrastructure layer, ZebethMedia’s Rita Liao reports. Ex-Bain investor launches $30M web3 consumer VC fund as solo female founder Mags Kala was able to raise her first fund as a solo GP focused on early-stage consumer startups in the web3 space in just four months, despite a broader downturn in the crypto market. Her Miami, Florida-based firm, Double Down, blew past its initial fundraising target of $20 million in one month and closed its first fund with a total of ~$30 million this week, according to Kala. The fund has already made nine investments in web3 consumer startups, including Miami-based OnChain Studios, which makes Cryptoys, and Tally Labs, the company behind the Jenkins the Valet & Azurbala franchises. Magdalena “Mags” Kala is the solo GP behind consumer crypto VC firm Double Down. Image Credits: Courtesy of Magdalena Kala the latest pod For this week’s Tuesday episode, where we chat with a web3 expert, we played a recording of our discussion live onstage with a16z GP Chris Dixon that took place recently at ZebethMedia Disrupt. We chatted with Dixon about the venture firm’s new creator economy-focused crypto accelerator program, why a16z backed controversial WeWork founder Adam Neumann and where Dixon sees opportunity across the web3 landscape in this bear market. For our Thursday episode, where we discuss the latest in crypto news, we talked about a string of issues that have unfolded for various bitcoin mining companies over the past month, from Argo Blockchain to Core Scientific, and what it would take to unearth (ha ha, get it?) the sector from its woes. We also discussed: Chain Reaction comes out every Tuesday and Thursday at 12:00 p.m. PT, so be sure to subscribe to us on Apple Podcasts, Overcast and Spotify to keep up with the action. Chris Dixon speaking at ZebethMedia Disrupt in San Francisco on October 18, 2022. Image Credits: Darrell Etherington / ZebethMedia follow the money South Korean video game developer Wemade raised $46 million from Microsoft, Shinhan Asset Management and Kiwoom Securities to expand its web3 presence. Zebra Labs raised $5 million from the Chinese gaming firm NetDragon and the Japanese conglomerate Sumitomo to help Chinese celebrities enter the metaverse. Blockchain data terminal Token Flow raised $12 million in a Series A from investors including Electric Capital and Delta Blockchain Fund. NiftyApes, an NFT lending protocol, snagged $4.2 million in seed funding from Variant, Polygon, Coinbase Ventures and others. Crypto wallet startup Braavos raised $10 million in a funding round led by Pantera Capital. This list was compiled with information from Messari as well as ZebethMedia’s own reporting.

Apple says, ‘NFTs? Yes, fees’ • ZebethMedia

By zebethcontrolPosted on October 27, 2022Posted in Chain Reaction, Crypto, newslettersNo Comments

Image Credits: ZebethMedia Welcome back to Chain Reaction. Last week, we recorded our news episode live onstage at ZebethMedia Disrupt, in which we talked about the Aptos launch and shared our predictions for where we expect money to flow in the web3 world. This week, we dove into NFTs, examining Apple’s new App Store guidelines and Reddit’s recent success in the space. We also announced some personal news — one of our co-hosts, Lucas Matney, has moved on to new adventures outside of ZebethMedia, but Jacquelyn and Anita are still here and excited to keep bringing you the latest and greatest crypto stories each week. We’re also super busy prepping for our crypto event in Miami this November 17th, where we’ll be onstage chatting with speakers including OpenSea’s Devin Finzer, FTX’s Amy Wu and Yuga Labs’ Nicole Muniz. If you’re interested in joining us, you can use the promo code REACT for 15% off a General Admission ticket. Do you want Chain Reaction in your inbox every Thursday? Sign up here: techcrunch.com/newsletters. this week in web3 Here are some of the biggest crypto stories ZebethMedia has covered this week. Singapore may soon require retail investors to take test before trading crypto, prohibit credit cards The country may soon require retail investors to take a test and not use credit card payments and other forms of borrowing for trading cryptocurrencies, per a central bank proposal on Wednesday. It’s another stringent measure from the island nation’s government as it looks to make citizens aware of the risks surrounding volatile assets. Asset management firm Stone Ridge launches Bitcoin-focused accelerator program Asset management firm Stone Ridge has launched a startup accelerator, In Wolf’s Clothing (Wolf), that will be dedicated to growing Bitcoin-focused applications, the team exclusively told ZebethMedia. The program will bring four cohorts per year, each consisting of about eight to 12 teams, or about 30 to 50 founders, to New York City from around the world for eight weeks at a time to focus on building on the Bitcoin-centric Lightning Network and Taro protocol, Kelly Brewster, CEO of Wolf, told ZebethMedia. Apple cracks down on NFT functionality, social post boosts with App Store rules Apple introduced new App Store rules on Monday that limit features unlocked through NFTs. The company is prohibiting apps to use other mechanisms such as QR codes or cryptocurrencies to give special access to users. It’s also cracking down on cryptocurrency exchanges as it now mandates them to have “appropriate licensing and permissions to provide a cryptocurrency exchange” in all regions they operate in. Meta posts another revenue decline as investors voice metaverse concerns Meta reported earnings this week, revealing that its net income was just $4.395 billion, down from $9.194 billion year over year. The decline is mostly due to Meta’s huge investment in the metaverse: Reality Labs, Meta’s virtual reality division, lost $3.672 billion this quarter. Image Credits: Meta the latest pod For this week’s Tuesday episode, we caught up with Andrei Brasoveanu, a venture capital investor at Accel, about his web3 investments. He talked to us about his investments in companies such as Nansen and Sorare and discussed how the firm competes with crypto-native VC players for top deals in the blockchain space. In our Thursday episode, we unpacked two big stories in the NFT space — Apple’s new App Store guidelines for NFT purchases, which are less-than-friendly to exchanges, and Reddit’s surprisingly successful foray into this undeniably tough market. We also talked about the latest tea from across the pond in the U.K., where crypto proponent Rishi Sunak just became prime minister, and what that could mean for crypto companies and regulation in the country. Chain Reaction comes out every Tuesday and Thursday at 12:00 p.m. PT, so be sure to subscribe to us on Apple Podcasts, Overcast and Spotify to keep up with the action. Image Credits: HM Treasury follow the money DAO operating system Origami raised $6.2 million from investors, including Bloomberg Beta and Protocol Labs. NFT startup Exclusible bagged $5 million from FC Basel owner Dan Holzmann and Tioga Capital. ParaFi participated in Thala Labs’ $6 million seed round to build a DeFi stack on Aptos. Paragraph, a web3-native publishing platform, closed a $1.7 million pre-seed round led by Lemniscap with participation from Binance Labs, FTX Ventures and others. Blockchain identity and privacy startup Sealance emerged from stealth with an undisclosed amount of funding from Galaxy, Ribbit Capital and other investors. This list was compiled with information from Messari as well as ZebethMedia’s own reporting.

Apple doesn’t want you trading NFTs on your phone (unless it makes them money) • ZebethMedia

By zebethcontrolPosted on October 27, 2022Posted in Chain Reaction, Chain Reaction podcast, CryptoNo Comments

Apple is no stranger to asserting its dominance. That’s exactly what the tech giant did this week when it announced new, stringent guidelines for NFT transactions in the iOS App Store, marking the first time the company has taken any sort of substantial position on web3. We hopped on the mic for the Thursday episode of Chain Reaction to discuss the new rules and how they could make life harder for NFT exchanges and crypto companies looking to grow through mobile adoption. You can listen to the full episode below: On this Thursday’s show, we also discussed: Reddit’s surprisingly successful foray into the NFT space in light of new metrics the company shared on stage at Disrupt The U.K.’s new prime minister, Rishi Sunak, and whether he’ll live up to the hype he’s received from the crypto community BTW, we’re getting closer to our crypto event in Miami on November 17th! If you want to join us to hear from web3 leaders at firms such as OpenSea, FTX and Haun Ventures, you can use the promo code REACT for 15% off a General Admission ticket. If you can’t join us in person in Miami, you can use the promo code REACT to get 25% off an annual subscription to ZebethMedia+ for web3 deep dives, exclusive interviews and analysis. Chain Reaction comes out every Tuesday and Thursday at 12:00 p.m. PT, so be sure to subscribe to us on Apple Podcasts, Spotify or your favorite pod platform to keep up with the action.

Kraken’s Jesse Powell on why he’s stepping down as CEO of the crypto exchange • ZebethMedia

By zebethcontrolPosted on October 11, 2022Posted in Chain Reaction, Crypto, krakenNo Comments

Jesse Powell is stepping down from the CEO role at U.S.-based crypto exchange Kraken, The Wall Street Journal reported last month. Co-founded by Powell and Thanh Luu in 2011, Kraken is now the fourth-largest crypto exchange by volume, according to CoinMarketCap. It’s a critical inflection point for the company, which was valued at $10 billion earlier this summer and has been rumored to be considering going public. We invited Powell to join us on this Tuesday’s episode of Chain Reaction to discuss some of the drama that unfolded prior to his exit and talk about what’s next for the company under its new CEO, Dave Ripley. The news that Powell was stepping down came shortly after a report from The New York Times revealed he had sent controversial messages to employees regarding his views on race and gender. The Times also reported that Kraken is under investigation by the U.S. Treasury Department over allegations that it violated sanctions rules by allowing users in Iran to transact on its platform. Under Powell, Kraken has been vocal about its “crypto-first” values, releasing a manifesto outlining its libertarian ideology and offering employees the option to take an exit package and leave the company if they disagreed with those values. Some employees took the offer, though the majority chose to stay at the exchange. Powell addressed these topics and shared more about his post-CEO plans on the episode, which you can listen to in full here: Chain Reaction comes out every Tuesday and Thursday at 12:00 p.m. PDT, so be sure to subscribe to us on Apple Podcasts, Overcast and Spotify to keep up with the action.