Welcome to this 33rd issue of the Chain Reaction newsletter published on the 29th June 2022.
What you can expect in this newsletter
In the News
What we're reading/watching
Editor's Note (from Captain DeFi)
Another big week for the markets with more news about the carnage that are these DeFi collapses. It does feel like there's been some reprieve over the last few days but given how connected many platforms are, I've no doubt that contagion will set in and we'll see some more negative headlines soon. Speaking of negative headlines, we continue to see more negative headlines and articles in the media but that's okay, most of the folks left in this space will continue to build as they did in cryto winter back in 2018.
In the news
No news from BetaShares this week so highlighting here a few articles we've seen that are interesting and been discussing in the Discord.
One of the articles was something we got to feature in on The Defiant and their story on thje struggles of Babel Finance. You can read that here: https://thedefiant.io/maple-babel-10m-loan/. Mark (aka Capt DeFi) also put out a more detailed article on the above that you can access here: https://medium.com/notcentralised/liquidity-issues-raise-questions-for-defi-5b4967c6af48
Additionally, we highilght the blog from the crew at NotCentralised (all of whom are Aus DeFi members). Apart from the Maple Finance story mentioned above, we also highlight this article showing NotCentralised partners and various media appearances they've had https://medium.com/notcentralised/notcentralised-in-the-media-ca63e6e39b27
In the Discord chat we had folks talking about ZK proofs and this GitHub resource for those wanting to learn more https://github.com/matter-labs/awesome-zero-knowledge-proofs
We also saw local big 4 bank, ANZ partner up to buy some tokenised carbon credits from local provider BetaCarbon - https://www.miragenews.com/anz-leads-landmark-customer-transaction-to-807861/
A community project we want to highlight is a new podcast series we created which is all about projects (and called Only Projects). It is available on YouTube (here https://www.youtube.com/watch?v=70xGqpYUCB4&ab_channel=AusDeFiAssociation) as well as Spotify. We'll spend time in this series digging into the ins and outs of projects, the service providers and those that work in that space and much more. Here's the Spotify version: https://open.spotify.com/episode/0riCwOje6YDZhLoTwqCc9K
This week we asked our community the following question:
"How long do you think this current crypto winter lasts?"
Here's some of the responses from our Discord
I thought initially it might go like that last one, at least for 12-18 months more, but it looks like Quantitative Tightening is not going to last long, so probably at the end of this year we are going to see a reversal and next year going to be more active. But it is really just finger in the air
To be honest, I'd prefer later rather than sooner. It gives us more time to build and come back much stronger as well as to accummulate crypto for ppl with a high conviction in it. If the winter is too quick, we don't learn our lessons and don't improve enough to have a strong next cycle. But, the market will decide anyway.
Let this be a winter of learning. I would also add that let it not be a winter where everything withers. We as a community should ensure we support each other and build more meaningful, stronger and impactful solutions which solves real world problems and bring back some of the lost trust
There are two theories. 1. The 4 year cycle is still intact and crypto winter will last until 2024 with the Bitcoin Halvening. 2. Crypto markets are just following influence of macro environment and we are awaitng the Fed Reserve pivot (and all central banks) to become dovish again and restart quantative easing. 6 - 12 months.
and again from LakshmananP
the tightening might ease by the end of the year but whether this winter will possibly last till the end of the year or not will depend on other factors and recession fears too. Based on the forward breakeven, inflation will come down within two years so possibly the crypto winter might extend till next year. But then this is still guess based on the details we have in hand, we have to let it play out unfortunately. But our building and learning doesn’t stop and shouldn’t stop if we have to come out stronger from this.
You can see more in the Discord here - https://discord.gg/adyGUSaHFQ
Data as at 21s May 2022 - 9:50pm
Market Moves (from CoinGecko)
Another is this look from TokenTerminal on market cap of the various blockchains over the last 180 days - you can sign up for TokenTerminal and access this here: https://tokenterminal.com/terminal/markets/blockchain
What we've been watching/listening to
[Video] there's this video from Coin Bureau covering some of the events during the week like Goldman Sachs looking to buy the distrressed assets of Celsius, Coinbase tracking off-chain transactions in Holland, Canada, Singapore and Japan and how other exchanges will likely follow - https://www.youtube.com/watch?v=Y2RpT0ImlGs&ab_channel=CoinBureau
[Video] First up is this gem from the team at Bankless going into the hidden powerstructures in Ethereum. They dig into the mining pools, what the post-Merge world looks like and things like whether Ethereum will pay users to use the platform - https://www.youtube.com/watch?v=rQxuPBy8tJg&ab_channel=Bankless
[Video] Another one to watch is the recap from The Defiant on the week that was with NFTNYC and how the space will survive given the bear market and attacks on major projects like the racism claims at Bored Ape Yacht Club. Video here https://www.youtube.com/watch?v=NuDQeN8sawI&ab_channel=DeFi%2CNFT%26Web3Insights-TheDefiant
[Video] We also had this community series video where 3 of our members had a chat about privacy in web2 and web3 - https://www.youtube.com/watch?v=UeVXbYQ17A4&ab_channel=AusDeFiAssociation
Get in touch
If you would like to dig deeper into why and how is the blockchain relevant to international matters and to get more insights on regulations and Defi knowledge, join us on our Discord: https://discord.com/invite/ZRCTDdsVEF