The Web3 Rewind

A handful of the most interesting and current stories in the blockchain/web3 world not published on DeCential this past week in case you missed them

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Wen moon dept.

Quick Bits

Ledger aims to fine-tune pitch for untouchable crypto wallets

• With no shortage of horror stories to draw upon of people losing access to their digital assets, Ledger seems to be well positioned to weather the upcoming crypto winter. The article notes the company is " in talks to raise $100 million in a funding round that would drive its valuation higher than the $1.5 billion." Ledger's CEO says the company is looking to cater to the non-English speaking market next as part of the larger goal to become mass market.

• Even the market downturn doesn't seem to be stopping Ledger from growing. In a Q&A with the company's CEO Pascal Gauthier, Axios' Cryptal Kim notes that the company is still seeing "50% growth in revenue year over year.”

Polygon and Reddit Co-Founder Launch $200 Million Web3 Fund

• Polygon announced this week that they'll be teaming up with Alexis Ohanian through his venture firm Seven Seven Six on a $200M fund that will be focused on creating the next new and innovative steps in the Web3 and social media landscapes.  

• Ohanian has become a notorious investor in the space - with past investments in Coinbase, Patreon, OpenDoor and Solana - his experience is something Polygon is sure to draw upon as they take this next step.

Ethereum’s staking yield after The Merge will be lower than expected

• With the Merge complete, eyes have begun to turn to what’s next for ETH, specifically with regards to staking. Though the Merge has many implications, higher yields for staking are not necessarily one of them.

• Per Dune Analytics, it appears that around 13.5 million ETH (11.3 percent of total supply) is currently staked which, according to EthHub, will yield a max annual return rate between 3.3 percent and 5.72 percent. This is a ways off from the double digit yields that have been prophesied by many for the ETH blockchain in the post-Merge world.

Good Podcasts Outside DeCential

Kevin Rose and Derek Edwards Schloss speak with Frank of NFT projects DeGods and y00ts.

And last but not least

U.S. SEC Setting up New Office to Look After Crypto Filings

The U.S. Securities and Exchange Commission said last week it’s creating a new office to wrangle filings from crypto companies. A bit of a yawn, but it bears keeping an eye on the agency run by Gary Gensler. He’s been unwavering in his public comments that he believes most cryptocurrencies are securities that need to adhere to SEC rules or risk an enforcement action by the agency.

Let’s allow Gensler to speak for himself. From a Sept. 8 speech in Washington:

“Some in the crypto industry have called for greater ‘guidance’ with respect to crypto tokens.

“For the past five years, though, the Commission has spoken with a pretty clear voice here: through the DAO Report, the Munchee Order, and dozens of Enforcement actions, all voted on by the Commission. {Previous SEC] Chairman Clayton often spoke to the applicability of the securities laws in the crypto space.

“Not liking the message isn’t the same thing as not receiving it.”  

Notice anything missing from his list? The SEC has the power to make rules that are proposed, put out for public comment and then voted on by its commissioners. It can also ask Congress to give it new authority. Neither of these avenues make Gensler’s list of what the agency has done to let the web3 community understand how to obey U.S. law. It’s lazy and backward, but that’s what you get from the SEC.

Gensler’s rationale also provides a straw man. Yes, people in crypto have called for greater SEC guidance. Guidance in the form of a public dialogue, a rule making process open to everyone and a system that works best when all parties have a seat at the table. Not one predicated on being sued by the SEC as the first indication a firm or startup has run afoul of the law. Sadly this is par for the course with Gensler and it would be folly to think his position will soften. It’s a shame, as the lack of leadership at the SEC is only hurting U.S. efforts to lead in blockchain and web3 development. — Matthew Leising, editor in chief, DeCential Media

Out of the Ether: Special NFT Edition

Have you read the definitive history of Ethereum? No? Well then get your special edition of Out of the Ether while you can. There are only 1,000 that were printed and each copy is an NFT that can be registered on the Lukso blockchain’s Universal Profile protocol.