#139 Coinbase vs ETH vs L2s
Who benefits most from ETH adoption?
GM - this is The Snapshot, edition #139.
This is what I’ve got for you this week.
This Week In Web3 - Million Dollar Ape Punk Heist
Sponsored Post - Lil Nouns Support Esports $28,000 Proposal
Notable Sales - Punks, XCOPY, Cherniak
Investment Focus - Coinbase vs ETH vs L2s
For sponsorship enquires, please DM me on Twitter.
Have a great day,
B
This Week In NFT World - Million Dollar Ape Punk Heist
1 of only 24 ape punks "stolen" for 70% under the global punk floor price: bought for 10 ETH; now has a 605 ETH bid
"This ape punk was fractionalized into 10,000 ERC20 tokens on 9/26/2020, and spread out among what is now 257 holders. This was done on a now decommissioned platform called niftex (the contracts continue to live forever).
The setup is such that any shareholder can propose a "shotgun", whereby any shareholder can propose a buyout price, and if nobody counters, they can purchase the asset after 14 days.
0x282 initiated a shotgun on 8/28 (14 days ago). Some people took notice, including at least two shardholders. One put it off because they thought they had more time, but the other (@gmoneyNFT) made an attempt to block...
gmoney submitted a counterclaim of 0.000001 ETH (1000000000000 wei), just short of the requirement."
Coinbase launches wrapped Bitcoin cbBTC on Ethereum and Base
"cbBTC is onchain. cbBTC is an ERC20 token that is backed 1:1 by Bitcoin (BTC) held by Coinbase. This means millions of BTC holders can now securely access DeFi apps on @base and Ethereum ecosystems—with more chains coming soon."
@coinbase
"𝗦𝗲𝗰𝘂𝗿𝗲 𝗮𝗻𝗱 𝗦𝗰𝗮𝗹𝗮𝗯𝗹𝗲 𝗟𝗶𝗾𝘂𝗶𝗱𝗶𝘁𝘆 Coinbase has built a reputation for trust and security which is crucial. Crypto is volatile and normies are fearful. By wrapping BTC with cbBTC and backing it 1:1… Coinbase provides a safer and scalable way for users to utilize their BTC on-chain while maintaining the deep liquidity of the BTC network. While there is always a risk associated with custodying assets, Coinbase minimizes that concern, as they are the custodian of choice for many Bitcoin ETFs. This is key for onboarding traditional BTC holders into the DeFi space as they explore new financial tools/applications…
𝗔 𝗦𝘁𝗲𝗽 𝗧𝗼𝘄𝗮𝗿𝗱 𝗚𝗿𝗲𝗮𝘁𝗲𝗿 𝗔𝗱𝗼𝗽𝘁𝗶𝗼𝗻 cbBTC represents a significant milestone in onboarding new users to DeFi. Coinbase has millions of users, and by making it easy for them to move BTC into DeFi, it opens the door for widespread adoption of DeFi apps. This could lead to a new wave of participants entering the space (which we need) and boosting liquidity and accelerating innovation in DeFi"
@boredboomer_eth
Tether invests $100M into Latin American agricultural & food giant
"USDT issuer Tether has acquired a 9.8% stake in Latin American agricultural giant Adecoagro for $100 million to diversify its investments into the agriculture and food sectors. Adecoagro is a major milk producer in Argentina and manages more than 193,000 hectares of sugarcane crops in Brazil, producing refined sugar and ethanol."
Reuters reports India leading crypto adoption for second straight year
"India led the way in global adoption of cryptocurrencies for the second straight year as investors braved the country's tough regulatory stance and steep trading taxes, a report, opens new tab from blockchain analytics company Chainalysis showed on Wednesday. The report, which tracks adoption across four sub-categories in 151 countries, showed India ranked high on usage of centralized exchange and decentralized finance assets from June 2023 to July 2024."
Rekt Brands by OSF announces 100% of future revenues and royalties from new OSF art will be earned by Rekt Brands
"I've taken the decision to direct all revenues and royalties from new artworks created by myself to Rekt Brands Inc.
To date, all those revenues (excl. Rektguy) have been earned by myself, just like for most artists. However, given the nature of the Rekt community and our ethos of rewarding supporters I felt that the current NFT environment is no longer rewards collectors, ie you can rarely mint an art edition and expect to be able to sell it for a profit these days.
As a result I refrained from creating/did a lot of free mints, but I realised we could have a more elegant solution in allowing for all the revenues to be earned by Rekt Brands, the company which we gifted shares to for Rektguy holders.
I now feel a lot more comfortable with the mechanics; instead of our community paying money to me to buy my NFTs, they are contributing to revenues of Rekt Brand Inc, a company which many will have shares in."
$MACHI token is a 2x for presale buyers: $5M marketcap presale; $9.2M marketcap currently
"Love him or hate him, @machibigbrother is *IN* on Blast, and we like that Launched the MACHI token for trading today using the @BaselineMarkets programmed liquidity contracts…and everyone is up around 2x Could have gotten some sweet gains locked in if you followed my mention a week ago and registered. Basically everyone on Blast had eligibility if you hold any assets"
Sponsored Post - Lil Nouns Support Esports $28,000 Proposal
Lil Nouns DAO has passed a $28,000 proposal to fund monthly salaries for four months to two top Super Smash Bros Melee players, Plup and Junebug.
What are the details?
It provides a unique opportunity to sponsor an under-resourced community.
Plup: 18,000 USDC
Junebug: 6,000 USDC
Round: 2,000 USDC
Brand Integration: 2,000 USDC
Why is it a great opportunity?
High Visibility: Plup and Junebug are two of the most elite Super Smash Bros. Melee players globally, each with a substantial following and deep-rooted admiration within the community. Their brands embody a blend of fun, playfulness, and fierce competitiveness, paired with a genuine good-natured spirit.
Momentum: Building on the established success of Nouns Esports and the momentum generated by Proposal 534, this initiative has a solid foundation to grow from, rather than starting from scratch. This is a pivotal moment to launch Lil Nouns into the esports scene, capitalizing on existing awareness and enthusiasm.
Global Connection: We plan to host a Lil Nouns Round on nouns.gg, selecting a player from Asia to join Plup and Junebug at Don't Park on the Grass, a Supermajor in Seattle on November 16th-17th.
Supported by Nouns Esports: The current Nouns Esports staff will support the players and introduce a dedicated Lil Nouns section on Nouns.GG, showcasing the players as Lil Nouns competitors.
Love to see the red Noggles everywhere! Another fantastic example of how Lil Nouns DAO is willing to support creative people to do great Nounish things!
If you are curious about contributing to a cutting-edge DAO and getting paid to bring your ideas to life: check out our website.
Notable Sales - Punks, XCOPY, Cherniak
CryptoPunk, Knitted Cap - 39 ETH
Dmitri Cherniak, The Wrapture - 9.5 ETH
XCOPY, Bad Flavour - 280 ETH
CryptoPunk, Beanie - 110 ETH
CryptoPunk, Zombie Hoody - 550 ETH
CryptoPunk, 3D Glasses Hoody - 300 ETH
Investment Focus - Coinbase vs ETH vs L2s
ETH has underperformed all year. It’s time to consider WHY.
Here are my thoughts:
eth l1 vs eth l2s vs coinbase:
- eth l1 has lost fees and activity to l2s
- l2s are proliferating and are capturing more of l1 value (4 L2s in Top 11 TVL of chains, which I assume would have previously been on ETH)
- there is a scenario where eth adoption goes up but the eth token does not see the benefit of that increase in adoption
- what if there was a way to bet on increased on-chain activity on eth without buying the token?
- coinbase stock represents crypto generally, but also base, its l2 which is performing fantastically
- in scenario 1 where eth l1 wrestles some value back from competition with l2s, coinbase wins, and eth wins
- in scenario 2 where eth l1 continues to lose to l2s, eth loses, coinbase wins
- in scenario 3 where crypto suffers existential issue, eth loses, coinbase loses
conclusion: net, coinbase the better play because its better whether eth wins or loses vs l2s (and it doesnt matter which you hold if crypto suffers some existential issue)
Let me know what you think in the comments. Is it time to diversify away from ETH?
Have a great day,
B
Disclaimer: The content covered in this newsletter is not to be considered as investment advice. It is for informational and educational purposes only.
I hold some of the NFTs mentioned in these newsletters
Smart thought to bet on coinbase!