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Good morning and welcome to the Lucky Lead. Today is Thursday March 9th.
Well a wild day it was yesterday. We've got a ton of major news some insane price action I've seen some things yesterday that I don't know that I've ever seen before some unprecedented market action on the get coin NFT We're going to get to that in the show plus a lot more before we dive in
And as a reminder for any new listeners out there, we run this show every weekday Monday to Friday at 10 a.m. Eastern. It's a 30 minute show covering all the major news in crypto, web 3 and NFTs. The show is meant for those interested in discovering the space, those actively buying and selling in the crypto and NFT
markets. And those here just doing research. I'm your host Tyler D. I'm drawing my amazing co host ghost content star over at Lucky Trader deep in the So rare streets quietly a whale NFT trader. We've also got Emily loves crypto a web three security expert and co founder of the foolproof app. Emily good morning. How you doing?
Good morning. I am doing okay. How about you? I'm doing well. I'm excited to get into our discussion today. We get to focus on security, right in your wheelhouse. On that note, we've also got a very special guest today in Jeff Cranes.
He is an OG in the crypto space Bitcoin class of 2012. Wow. Co-founder of Fire and Comet Pool, formerly co-markets and DV chain. He's rocking his crypto punk. Jeff, how are you doing? Welcome to the show.
I'm doing great. Thanks for having me, Tyler. Awesome. Well, we are excited to get into it on the docket for today our top story coin based launching wallet as a service plus a growing centralization trend and where the security fit into all this get coins roller coaster day. You guys dropping details for the second
trip for the other side plus all the headlines before we get into it, Ghost. If you want to take us through our listener question of the day. Yeah, some big news out of Coinbase and I know we've given him a lot of crap previously in the NFT space with their marketplace launch, but we want to know from the listeners, has your sentiment on Coinbase shifted over the past few weeks? So we will
that's a top and a bit of housekeeping as always. If you enjoy this show, Tyler does a great recap of the NFT market every morning in his morning-minute newsletter. I will pin that to the top. Please give that a subscribe if you haven't already as well.
service. They saw all the hype that ERC 4337 generated coming out of East Denver last weekend and said, "Hold our beer." Yesterday they launched this new product, that while as a service, WAAA asked, "They've got quite lofty goals with this launch from the release statement
Coinbase will enable companies around the world to help bring the next 100 million consumers into Web 3 through a seamless wallet onboarding experience. So a pretty big vision there. So what actually is it? It's a set of wallet infrastructure APIs that allow companies to create all-enchained wallets with customizable features.
for their customers. A few more details from their release, some of that the primary benefits of their model, better user experience via hosted wallets with username plus password onboarding, think no need for seed phrases, enhance security via their multi-party computation and PC.
which effectively keeps user assets divided with keys distributed across multiple parties. Option for full user control, meaning private keys can be exported on request and the native wallet integration for businesses. So users never have to leave the platform. So that is the gist of the announcement in a quick run.
down. They've already lined up some big name companies building on their new solution, Floor, Moonray, Third Web, Third Web who just partnered with Spotify in some major news and then token proof as well. There's a lot to break down here. So I wanted to start maybe with some general reactions
to this launch. How big of a deal it was. Did you see this coming Jeff? Maybe I'll start with you. What were your reactions to this coin business? Yeah, my reaction in the company Slack at Fire was, hey, maybe it's time to buy some coin-based stock because I think this is pretty awesome news.
especially this combined with the base news. I didn't really think that Coinbase had it in them to do something like this. Maybe for two reasons, one you mentioned Tyler, like the NFT marketplace was just such a flop. It just put like this huge execution risk in my mind related to Coinbase
base's ability to execute in Web 3. And then number two, just from a regulatory standpoint, it just seems like it'd be really hard to have the guts to go through with actually helping with custody on chain and launching an L2 in the form of base that they
announced last week. But I think both things are awesome. I know we're going to be talking about the centralization trade-offs, which I'm excited to talk about. But overall, I think it's great for helping onboard the cliche of the next billion plus users to Web 3. I think it's a good step in that direction. Yeah, I'm with you there. I mean, what?
One of the alternative events for Coinbase, especially those of us in the NFT space, I think Coinbase had a fairly negative sentiment, was kind of like the ready joke with the NFT marketplace flop. But now with their base launch, they're L2 and now Waldo's in service, and we got to take Coinbase very seriously.
They're making some big moves. Emily, I'm curious for your initial reactions to this as well as someone playing in this field falling very closely. Yeah, I think it was pretty predictable considering the base launch. You need this feature to be
able to operate on base. I mean, in essence, like if they, if they're heading towards a more decentralized but still exceptionally centralized experience, they're going to need to provide those tools. And from
themselves right they're going to want to have control over the user experience they're wanting they're going to want to create that consistent that consistent experience so a user can come on and you know you can almost you can almost guarantee that they're going to require their wallet to deploy
apps through base. And I think they're going to use it as a mechanism of control, equality control over what actually gets put out, which is ironic for a decentralized app marketplace. But I think it's pretty predictable. They'll need to control it to some degree, especially
because they're an American company, so they're not going to be able to allow just anything on there. So I think that it's basically the partner product for their, for their decentralized app marketplace and it's going to grow together and you're going to need one in order to use the other.
Got it. So you saw this coming to surprise. The driver for this. Do we see that the coin base wall?
and the news and the news and the news and the news and the news and the news and the news and the news and the news and the news and the news and the news and the news and the news and the news and the news and the news and the news and the news and the news and the news and the news and the news and the news and the news and the news and the news and the news and the news and the news and the news and the news#
Yeah, I mean, my opinion is that the, you know, the marketplace, the fee-based marketplace model is a race to zero in crypto. You know, I think we're seeing that with blur, you know, basically attacking OpenC and vampire attacking basically all of their fees.
And I think that Coinbase can see the writing on the wall that the fees that they collect from their exchanges will also trend to zero over time. So they have to make a move. And Brian Armstrong has said in his, you know, basically investor letters and conference calls that they see Web
free or decentralized revenue streams making up a larger portion of their revenue as time goes on. So I think that that's what it is. It's almost kind of a pivot to kind of a new business model or at least a new income stream for them.
You know this matter of where does fire fit in fire.
Tyler, you're coming in a little bit like a robot here. I'm not sure. Help us with some of the questions. I'll try to get my setup. My question was a picture and this web security ecosystem.
Yeah, great question. So fire is a chrome extension that listens for transaction requests going to your wallet. So Metamask or Coinbase. And what we do is we pop up right next to your wallet and show you what the ramifications of signing that
transaction will be before you sign it in a human readable format. The idea came to me in the spring of last year when a good friend of mine texted me and said, "Hey Jeff, I know you're the crypto guy. I'm checking my OpenC page right now and my board ape is missing."
Would you mind taking a look and he sent me over his ether scan and I took a look and he signed a set approval for all on his board ape when it was worth about half a million bucks and lost that and it was a really sinking feeling for me I can't imagine the feeling for him and that got me thinking about okay
What could I do? What could I build to help prevent this from happening in the future? Because if we want Web 3 to go mainstream, we've got to solve these security issues and make people feel safe before they can start having fun in crypto. >> Yeah, that's a great point.
And I'm curious to tee Emily up for this because I know that she has some strong opinions usually on the direction we're going here in Web 3. But Emily, do you feel like we're going the right way here with these innovations the wrong way or was this kind of inevitable and are we facing kind of a growing centralization versus decentralization theme here?
Yeah, so I think we're all still subject to the laws of gravity in Web 3 in crypto where, you know, while it is decentralized, if you own enough of the infrastructure, you have the power to centralize it.
that is what we're seeing right now. I think that Coinbase has finally wrapped their head around the fact that the point of decentralization is to enhance peer-to-peer transactions. And what that means for a company like Coinbase is that it's
truly in effort to remove the middleman and they are one gigantic middleman. And I think that's why they wanted to create based as you know an L2 with a way to transact through DAPs and you know create a nicer DAP store and experience
it's more similar to something like Apple. And that really is their attempt to maintain their status of a middleman. I'm not really sure how they're going to be able to monetize that one unless they're just like, you know, the Apple store that takes 15% instead of
30%, which still doesn't seem very much in the nature of decentralization. I think they're going to continue to struggle coming up with business models that make a lot of money from that angle. And as far as security goes, it really depends on what type of control
they provide a user. There's a feature in the foolproof that's very similar to join that allows you to create a custom RPC and that's what manages your transactions and gives you a human readable form. So instead of a pop up, it pauses those along the way.
you know what what Coinbase decides to do, they could really not even enable that at all. They could say it has to come through our proprietary channels and that's going to give them ultimate control. So it's it's really hard to see exactly what they're doing and especially that could be the case if they're going to turn around and they're going to start
selling our PCs and use that as an additional mechanism to generate money for themselves, a lot like Infraur or Alchemy. So, you know, trying to piece together what their real roadmap is in the real game plan here is, it's kind of fun, but it's also interesting to speculate just how central
They're going to go behind this like effort to get more decentralized branding because they are a genetic corporation and that's what they do in order to make money, especially a publicly traded one. Jeff, curious to hear your thoughts on the Centralization, the Centralization theme we're seeing here as well.
Yeah, so as Tyler said at the top of the call, I've been in crypto for I don't know 11 years now. I started off as very much like a Bitcoin Maxi. I mean, that was the only game in town basically. And that community has already always been pretty Maxi in terms of decentralization. So I was in that
camp for a long time of like we have to be as decentralized as possible and ever user must be as decentralized as possible. But I've really in the last couple years kind of swung back in terms of the pendulum towards there can be a balance. And what I think is really interesting is thinking
of basically how can we onboard a user maybe in a soft touchway in a more centralized way when they've got a small balance. And then as their balance starts to grow, their NFTs and their tokens, whether it's through trading or they decide to invest a little bit more, you know, we kind of scale them up.
the decentralization ladder and let them take more custody of their funds. And something really interesting, I think, about the Coinbase solution that I hadn't heard before that I heard when Tyler did the intro was, that they're actually going to allow users to eject their private keys from their NPC solution, which I was really glad to hear
because I've tried out a couple different NPC providers today like Zengo, for example, and I had an issue with their wallet where they don't support optimism and I bridged some funds over there and now I've got like seven grand sitting over there that I can't access because they don't support optimism and I have no way of getting my private keys
out. So, a point being, the fact that Coinbase can offer potentially a somewhat more centralized solution in their NPC wallet, and then as you grow it becomes more familiar with Web 3, you have the option to then take control of your private keys completely, and then maybe as your balance grows even further, go out and buy
a hardware wallet versus today the recommendation is like okay step one go get a hardware wallet write down your 12 word or 24 word seed phrase and let's go from there like that's just not going to work for onboarding the masses so I'm willing to you know make some compromise on the decentralization aspect upfront for you
users as they kind of go through their journey. Jeff, I think that's such a good point of view. And I've heard Emily say this as well. Everything doesn't need to be fully decentralized. There are use cases for both. If someone
just wants to play NBA Top Shot with 20 bucks or 50 bucks. Maybe a fully centralized model is fine. If someone wants to get into gaming with a small bankroll, it very well might be fine. If you're buying six-figure digital art, one of ones, perhaps you want to go more with decentralized route.
Um, so it's definitely refreshing to hear your take on on that. I think my my last question here and it will move on is as someone who's been in the space for 10 years, do you feel like we are going the right way, the wrong way or or somewhere in the middle with some of the progress we've seen on this front here in the last year?
I mean, overall, I'm more excited about the space than I've ever been. I have times where I get really frustrated by the scams and the space and how difficult everything is right now. I felt that we collectively were having a lot more fun
in crypto in like 2020, 2021, you know, part of that's a bull market of course, but you know, right now I think we're in this place where everybody just has all of their funds on a cold wallet that they're afraid to connect to anything and they're, you know, it makes it scary to vote on governance proposals or claim
or claim tokens, like it just kind of sucks right now. It's just this total place of fear and you know it's something that Emily and I are working on fixing up. That's one piece. Another piece is you know a big fear of mine has always been is like Web 3 just going to turn into like the Zuckerberg chain one day where just no one can
about decentralization at all and it's just like this centralized token on Meta's servers somewhere. And I think that that's partially could be a concern with what Coinbase is doing. But I like at least the direction that they're signaling with. They didn't launch their own L1. They launched a put
L2 on optimism, I think those are good things. Overall, I'm feeling optimistic, but we've still got a lot of work to do. I think that's a great take. I share those concerns as well. It is good progress, but let's continue to remain conscious of this centralization versus decentralization trend and
we're at on the spectrum. All right, well, I think that was a really solid discussion on security in this coin-based news. I want to get to our next topic and talk, get coin and betalic before we do that. Let's read the news. Today's top headlines powered by Lucky Trader. Trading volume came in at 40,000 ETH up
two days in a row now, the most NFTs were slightly red. As traders sold off to chase getcoin, speaking of the getcoin presents NFT from metal labels stole all the market attention yesterday, seeing over 7,000 each volume in a rollercoaster day, mostly driven by speculation on a metallics level of involvement. In other news, you got announced
early details for the other side's second trip scheduled for March 25th. It will be led by four team captains will include access for guests and expanded playable region in an official live stream. Foundation is joining the open edition meta with their replica release, which will include 35 artists launching 24 hour open edition
Desensual land announced the launch of the public SDK 7 beta with a focus on usability performance and portability and Krypton Goons are launching another apparel drop blending the digital and physical worlds and crypto news the crypto market was down again yesterday driven by several bad headlines Bitcoin minus 1.8% at 21,700
ETH-1.5% at 1530, Silvergate, the crypto-friendly bank announced that it will voluntarily liquidate its crypto assets and wind down operations of its holding company, and then Mirror announced the introduction of a subscribe to Mint feature as a new way for creators to engage with their collectors.
All right, a mouthful of headlines in what was a rough day on the crypto front. I'm very curious to track the fallout of the silver gate situation here, but moving on to the NFT space here. We've got to talk about get coin mania. So yesterday's price action on get coin presidents.
was some of the wildest I have seen in two years in the NFT space. So to set the stage, this was an open edition. It was available for several days at 0.05 ETH, the mint window closed around noon yesterday. And within two hours, the floor had rocketed 900% and then within three hours, it was
up 1400% at 0.7. But then the old adage what goes up must come down. This one fell hard fast and went all the way back to 0.2 around 10 p.m. Eastern before we've been into about 0.5 here this morning. I've just gotten a lot of questions on what you
What drove this crazy action? I think to me, it was three major drivers. One, NFT DGNs heard that Botolic was tied into this one and just raced to buy a lot of FOMO-induced action. Number two, blur farming was a huge factor. You know, once this caught like that escape by
Velocity the blur farmers came in droves. That's what drove the 7k ETH volume a crazy stat top blur farmer Machi big brother now holds I don't have the update numbers I think it's around 1500 of these he owns like 16% of the supply I don't know that I've ever seen a single wallet that's not a founding team hole
that big of a chunk of the NFTs supply. So that is a red flag. And then lastly, the driver was a bet on this new metal label team. This group includes the co-founder of Kickstarter Yancey Strickler, along with leaders and devs from other major companies like Etsy and eBay. So that's the story. I'm
got questions. Emily, you've got your hand up. What's on your mind? Yes, this is very much on that same topic of gravity that I was talking about. Where if someone gets too much of it, then they can control everything even in a world meant to be decentralized. Machi's farming makes me super uncomfortable. I wouldn't want to be anywhere
where near it because that amount of control, if you think of how much of a collection is ever listed, even one that's getting absolutely dumb to you, such a significant portion of that, can basically single-handedly control the price. And that is not
Great. As far as the team goes, I guess that's interesting. But again, you never really know what they're going to choose to deliver or if they're just a bunch of friends that got together for fun. So I don't know. I say far away. It's covering red flags to me.
I got scared off myself so I traded this a little bit yesterday. I slowed on the way down yesterday. I think Machi, he had around 500 at the time and that was scaring people off. Apparently they've gotten over their fear and this thing just keeps grinding up this morning. I see it's up to 0.53. Like the outcomes of this blur farming, there are situations now.
that we have never seen before. I'm looking at the bid action. There is 18,000 eighth in total bid value. There are 16,000 open buys at 0.52 covering 8500 ETH. That's 1.7X the entire collection. It doesn't
even make sense. I've never seen anything like this. It's a get your popcorn ready and just watch situation. I guess ghost. I'm curious. I haven't heard too much from you on this one. Were you tracking this action and do you think this might be the
real deal and or is it closer to like an owls like Fad that might you know fall back closer to zero here in a few days. Man I must have blacked out yesterday during this period because I didn't really catch this one at all and I didn't trade it or do anything with it. I don't know what to make of it and I'm a little scared just like Emily
I also feel like it's more of a marketing play to use a Vittelix name here than actually him being part of the team. I guess he is part of the team. I just don't know what his involvement is with this NFT. It's a little bit scary to me.
like they're just like latching onto his name to drive hype and it's working right now but I'd be scared to see the the rundown if it ever does topple or or if Machi decides to sell so I don't know enough about it personally to to be an investor in it and it's a little bit personally scary to me. Yeah I think my
understanding is this M. T. is tied to the ebook, which includes the quadratic funding collection of papers, which included several authors from the crypto space, including Botalic. Botalic is an author of the ebook, which is tied in to this NFT.
talk about this thing, I'd say the odds are zero percent that he will ever bring attention to this. But I think folks are a lot of speculation has been on the meta label team. The co-founder of Kickstarter being involved has been one that I've seen thrown around in several circles and out
So this is going to be an interesting one to watch. Jeff, I'm curious, maybe just a quick question for you. Are you an active NFT buyer or seller in this market? Have you been mostly on the sidelines and any quick reactions to the impact that Blur has had?
on the NFT market you've seen evolve over the last few years. Yeah, I think basically since I started fire, I've stepped out from NFT trading for the most part. Ironically, I've been getting more involved in public goods in general.
I totally missed this get going drop which is like the premiere name in public goods So a little bit upset that I missed out being able to fund those directly You know, I have thought about picking a couple up, but you know only I think 5% royalty goes back to the team for funding it so not much there. I am interested to see
what relation this token might have with the Gitcoin platform itself. So interested in that. And then, sorry, what was the second part of the question? If you had any general thoughts on the impact Boller has had to this traditional NFT market. Yeah, I mean,
creating walled gardens and monopolies in crypto is very hard by design. That's my overall take is like, you know, we looks rare, did it to blur and then or did it to open C and then X2Y2 tried to do it to looks rare with not much success. And now, you know, blur is doing it
and I think we'll see someone else come around eventually and eat Blur's lunch. It's just very difficult to build a walled garden in an open ecosystem and I think that's a good thing. So that's my basic take there. I tend to agree. I think it would be foolish to bet that Blur is the final boss.
the marketplace wars there will be more coming up for this thing as a final boss capitalism. Yeah, I'm with you there. We are we're running a little bit low on time. Ghost why don't you quickly take us through the NFT market headlines and then we'll touch on our last topic.
Let's do it. So here are some of the top market headlines from Wednesday powered by Lucky Trader. Sappy Seals announced a new roadmap called the Grand Plan yesterday. Mysterious blueprint of sorts. The floor was flat on the announcement holding at .940. I want to poke some fun at Emily here who we know hates these
different road map names there. So the Grand Plan is the latest one there. Claynessores quietly did $1 million in volume on Salona yesterday. Logan's Clay Maxi beliefs are finally paying off there. Onchain Monkey was a big dainer over the last 24 hours, surging 25% to an over 3E floor. The project's been
hammering the ordinoes angle after inscribing the entire collection on Bitcoin in early February. Punks, crypto punks cooled off after the wrapped crypto punks on Blur led to a pump earlier in the week. And finally, Starbucks Odyssey's limited collection stamp is today and the floor on the
The quality of Genesis edition is down to $1,500, about 30% from its high, so we'll be interested to watch the price action on that one. Yeah, that will be one to watch. How funny was the Saffy Seals? I think any announcement they say, they basically hate the idea of road manas, but here's our grand plan.
just another phrase. A few other or one other item that caught my attention. Antique statistics had a very interesting tweet yesterday. This is actually regarding blur versus open sea in long term holders for the first time ever blur is now doing more e-th volume and open sea on NFT trades where the buyers hold the NFTs
and don't flip. So it has been pretty obvious that all the flippers and farmers were congregating over on Blair, but now it seems they are also besting open sea in those who are buying to hold. So that is an interesting trend to watch. We've got just a few minutes left, maybe we'll just get
30 second reactions to the Yuga second trip news goes as one who's been very close to this ecosystem thoughts on the news that we heard with now there's the four team captains access for for guests a live stream any any reactions for this I think it's a really interesting and I'm curious
to see how they executed, but it sounds like they're trying to really bring in outside community members and get everyone in the web 3 space and even like probably normies or even like YouTube streamers or Twitch streamers involved. So I think that's a really interesting angle. The team captain sounds like it's going to be gamified in some way where like the previous trip was kind of more
of a demo of what is going to happen in there. So I think that it shows that they're making some progress here on actually delivering a game hopefully and it will be really interesting to watch but I'm excited. Also excited to watch the price action on other deeds and some other aspects like a Kodas going into that trip there.
I'm with you. It's gonna be interesting to watch it seems like reactions have been strong and positive so far Maybe we'll have time to dive more into it tomorrow on our casual Friday show, but we are running out of time here before we go. What's dropping today? We've got garden point bike
Comment at 11 a.m. Starbucks Odyssey at 3 p.m. Rex cities to buy OSF tonight at 6 30 p.m. Eastern and then the Lucre say D5 birds crossing the art and moonbirds ecosystem coming sometime later today.
Starbucks honestly dropped likely the biggest of the days is their first ever limited edition stamp sale available for those in the beta program But it is gated so any of us who want to buy who are not the program will have to be looking on secondary The OSF drop-off likely see some attention. I think the D5 version
from the press. I will be the wild card of the day. That is it. That's our show. We'll be back tomorrow at 10 in Eastern. Thanks to our listeners for tuning in. Thanks to my go host. Thanks to Jeff Krants. Thanks to the joint fire team for coming up with us here today. Everyone, enjoy your
Thursday. Let's make it a great day. Bye everyone.