TLDR Crypto 2024-05-14

The SEC has asked the court proceeding over its lawsuit against Coinbase to reject Coinbase's petition asking for a new regulatory system for crypto. In March, Coinbase claimed that the SEC does not have the authority to extend securities rulings to apply to crypto. The SEC sees its incremental application of existing regulations to crypto as reasonable and within its discretion.

Antonio Juliano, dYdX's founder, has decided to step down from his role as CEO. In this article, he reflects on the growth and evolution of the DEX from its beginning to now. Since its inception, users have traded over $1 trillion dollars on dYdX and the company has navigated difficult times like going from 50% in market share to <1%.

Supermigrate has launched a streamlined platform for transitioning from L1 to L2 networks, providing services for all necessary steps from migration to liquidity provision. The team plans to roll out a rewards program and support additional L2s soon.

HarryPotterObamaSonic10Inu, ticker $BITCOIN, announced the creation of a new memechain in partnership with AltLayer and Eigen DA. The Ethereum-based token is down 58% from its all-time high but up 19% on the news, reaching a market capitalization of $108 million.

The Omni Network is designed to improve Ethereum by connecting different Layer 2 networks to prevent the splitting of resources and maintain Ethereum's decentralized nature. Omni reduces costs and enhances scalability by using Eigenlayer for security. It is a key player in supporting seamless communication across various networks.

Governance tokens and memecoins essentially function the same, as both lack effective community decision-making power and are primarily driven by speculative value, often manipulated by VC-backed interests. The prevailing token distribution models create disparities and hinder the democratization of financial opportunities in the crypto space.

Block, the parent company for Cash App and Square created by Twitter co-founder Jack Dorsey, dedicated its shareholder letter to explaining why it focuses on Bitcoin instead of crypto and Web3. Block believes Bitcoin is the best option for the internet's native currency. Its strategy focuses on making it accessible through Cash App, secure through creating mining hardware, and usable through mobile on- and off-ramps.

Though it may not be explicitly stated, users care about a chain's safety and liveness. In blockchains with few validators, there are slim guarantees about uptime or a strong, honest majority. Users have demonstrated their preference by quickly switching from sidechains and alt L1s to L2s. Low fees and a great UX are important, but are being built up to ensure sufficient decentralization for Ethereum.

Rabby is offering free gas across 24 blockchains for users to sign crypto transactions.

As the largest stablecoin, Tether has more US treasury holdings than most countries.

ZachXBT reports that Rain, a top Middle Eastern CEX, was recently hacked for ~$14.8M in BTC, ETH, SOL, and XRP.

Low volatility was previously a precursor to upward price movement, as it happened at a time when selling was exhausted.