TLDR Crypto 2022-05-17

The Supreme Court ruled in 1946 that investment contracts are securities and therefore subject to securities regulation. NFTs easily meet most of the requirements for an investment contract, but there is still a little wiggle room depending on whether there is an expectation of profit when purchasing an NFT. The SEC has regulations for NFTs that were originally intended for regulating fungible tokens from an ICO. Many people are not aware of these rules. NFT founders need to be careful when structuring their projects and consult with web3 counsel beforehand as the SEC has made it clear that they are paying attention to the space.

Coinbase is letting a small set of its app users access Ethereum-based decentralized apps directly from the Coinbase app. This will allow users to purchase NFTs from various marketplaces, trade on decentralized exchanges, and borrow and lend through DeFi platforms. Coinbase will roll out the new services in the US for its Android dapp wallet and browser users first. The move will give a new wave of users the chance to explore the world of DeFi and NFTs.

Do Kwon has proposed a new plan for reviving the Terra ecosystem that involves splitting the blockchain in a similar manner to Ethereum's fork from Ethereum Classic. The proposal will allow blockchain purists to keep the current collapsed blockchain, which will be renamed Terra Classic. A new chain will be created, and 1 billion Luna tokens will be airdropped between developers, UST holders, and those who have staked Luna or its derivative projects. Terra community members have until May 18 to decide on the proposal.

This article explores the different views of web3 identity. Identity is the set of traits or properties that uniquely define an autonomous agent. web3 is a novel solution set centered around identity ownership and interoperability. It centers around user-centric ownership models that prioritize portability.

This article explores the different views of web3 identity. Identity is the set of traits or properties that uniquely define an autonomous agent. web3 is a novel solution set centered around identity ownership and interoperability. It centers around user-centric ownership models that prioritize portability.

It is a common misconception that DAO treasury balances are simply cash-like assets. A large chunk of most DAO treasuries are made up of that particular DAO's governance tokens. Millions of dollars in value is being left on the table by DAOs due to unnecessary dilution, improper capitalization practices, and treasury mismanagement. This article discusses how people should think about the size of DAO treasuries, how treasuries play into the aggregate value of a DAO's equity, and how the makeup and utilization of a DAO's treasury impact the trading value of its governance token.

It is a common misconception that DAO treasury balances are simply cash-like assets. A large chunk of most DAO treasuries are made up of that particular DAO's governance tokens. Millions of dollars of value is being left on the table by DAOs due to unnecessary dilution, improper capitalization practices, and treasury mismanagement. This article discusses how people should think about the size of DAO treasuries, how treasuries play into the aggregate value of a DAO's equity, and how the makeup and utilization of a DAO's treasury impact the trading value of its governance token.

$7.6 billion of Tether has been redeemed since last week. The stablecoin briefly lost its peg on Thursday. Tether allows users to redeem USDT in amounts of at least $100,000 from its reserves for a fee of 0.1%. Most of its reserves are held in cash-like assets, such as government debt and corporate bonds. There have been concerns about Tether's ability to honor all redemptions as the company is secretive about how the stablecoin is backed.

Cloudflare is announcing a series of experiments to find new ways to help solve the scale and environmental challenges that face blockchain technologies today. The plan involves launching Ethereum validator nodes on the Cloudflare global network over the next few months. It plans to stake and use the nodes for research on energy efficiency, consistency management, and network speed. The article contains a clear explanation of Proof-of-Stake technology and its benefits.

The Luna Foundation Guard (LFG) has released a statement on how it disbursed millions of dollars worth of crypto in a failed attempt to maintain UST's peg. LFG's reserves have dropped from around 80,000 bitcoins to 313. It will use its remaining assets to compensate investors. Smaller investors will be compensated first. The Foundation has denied accusations that it used the assets to bail out whales. LFG now holds around $80 million worth of cryptocurrencies in its reserves.

DeFi protocol DEUS Finance's algorithmic stablecoin DEI has lost its dollar peg, dropping to a low of $0.55 on May 16. DEI is minted by depositing collateral in the form of USDC, FTM, DAI, WBTC, or a combination of DEUS and USDC. Its dollar peg is maintained through a mint-and-burn mechanism between DEUS and DEI, much like Terra's UST. DEUS has halted its redemption process to help stabilize DEI. It has also announced plans to make the coin fully collateralized.