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The Breakdown First Five - Monday June 12, 2023
Welcome back to The Breakdown First Five — the 5 most interesting and/or important stories in bitcoin, crypto, and markets to start your day.
5. Robinhood Out
Robinhood announced on Friday that they are out of the altcoin game. Uninterested in catching a case from the SEC, the exchange is pulling access to MATIC, ADA and SOL. Users will have until June 27 to sell their positions or Robinhood will do it for them. SoFi also rumored to be closing the door on alts.
Less than two days later, they have announced that they are delisting Cardano $ADA, Solana $SOL & Polygon $MATIC. All based on nothing but accusations by the SEC. What happened to due process? httpp
— Coin Bureau (@coinbureau)
4:03 PM • Jun 9, 2023
4. Decentralized Autonomous Liability
A decision has been handed down in the Ooki DAO case confirming that DAOs can be sued, especially when they’re offering unregistered derivatives trading. After no representatives of the DAO showed up, the Judge ruled that they could all be held responsible, even if they never voted on governance. The CFTC now has the orders they needed to shut down the Ooki website and front end.
The CFTC never made the argument that merely HOLDING a token was enough, so nobody ever addressed this point. And yet, here it is.
Either an uninformed judge going rogue or…something a bit more intentional.
— Meat (🥩,🥩) (@MeatTC_)
12:19 AM • Jun 11, 2023
3. Venus Coin Trap
BNB DeFi platform Venus Protocol has found a backstop to avoid the open liquidation of $210M worth of BNB. The position was held by a hacker and was teetering on the brink as CZ’s coin plummeted. The BNB Core team has committed to buying the liquidation, preventing a massive dump into thin order books. It’s looking rough for BNB after losing over 20% in the last week.
In November 2022, @BNBCHAIN submitted a governance proposal which was passed by the community to whitelist liquidation of the BNB Bridge exploiter's position exclusively to @BNBCHAIN core team for the purpose of securing the misappropriated assets and preventing any further… twitter.com/i/web/status/1…
— Venus Protocol (@VenusProtocol)
6:26 AM • Jun 12, 2023
2. A16Z in the UK
A16Z are launching their first international office in the UK. Chris Dixon said he was looking for a “predictable business environment” for Crypto investments. UK Prime Minister Rishi Sunak was thrilled with the news, saying it validated the strategy of having the “right regulation and guardrails” to “foster innovation”. The firm said they would remain “heavily invested” in the US.
Big news to share: @a16z is expanding to the UK 🇬🇧
We plan to open our first international office in London later this year, and will host the next Crypto Startup School there in 2024.
Why the UK? 👇
— cdixon.eth (@cdixon)
11:05 PM • Jun 11, 2023
1. Altpocalypse Now
Altcoin markets nuked on Friday night, led by coins on the SEC’s radar. 20% or more drops for MATIC, ADA and SOL, all in a 15 minute candle. Overall Crypto Market cap fell by almost $50B, impacting even alts that haven’t been singled out by regulators. On Chain activity indicated heavy selling by market makers including Jump Trading, multi-year lows in liquidity across multiple exchanges seemed to confirm the exit of major trading firms. Last one out, please turn off the lights.
This is what SEC “protection” looks like.
Aren’t you grateful your tax dollars go to Gary Gensler - who already made $100mm from Goldman Sachs - so he can pull the ladder up behind himself and screw you?
— Ryan Selkis 🪳 (@twobitidiot)
11:06 AM • Jun 10, 2023
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