Welcome back to Chain reaction.
It’s still a pretty busy time in the wild, wild world of crypto. But it felt a little tamer than the whirlwind the industry has been through in recent weeks, and for that I thank the crypto gods (for now).
If you keep up with the news cycle, you know that former FTX CEO Sam Bankman-Fried has been on quite a few media campaigns.
He’s done a number of interviews with organizations ranging from Good Morning America to The Block over the past week, and even hopped onto a handful of less formal Twitter spaces (with thousands of listeners) for impromptu conversations. As he drifted through his mind and dodged questions, he caught the attention of regulators – who now want to hear from him too.
That did not bode well for the chairman and she came back swinging said, “Based on your role as CEO and your media interviews over the past few weeks, it is clear to us that the information you have so far is sufficient for testimony.” In a separate tweet, Waters also writes said a summons is ‘absolutely on the table’.
With a few days until the hearing, we’ll see if SBF saddles up and testifies, by choice or by order. But the former seems unlikely.
Meanwhile, an Excel spreadsheet showed Alameda’s private equity portfolio with some FTX holdings. It was a doozy of a document, with our team wondering how they had time to do anything other than invest given the sheer number of deals registered across a handful of industries. More details below.
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this week in web3
Here are some of the biggest crypto stories ExamPaper covered this week.
It will take a long time for the huge investments of FTX and Alameda to disappear from the crypto industry (TC+)
FTX and its sister company (or parent company, depending on how you look at it) Alameda owned a bunch of different startups. The depth of the selection has not been very transparent until now. A spreadsheet of Alameda’s private equity portfolio and some FTX holdings lists just under 500 investments across 10 holding companies totaling $5.276 billion. This spreadsheet, which dates back to early November, raises some concerns about the extent to which FTX and Alameda – and their affiliates – have invested in the crypto industry.
Thoughts on the demise of Circle’s SPAC deal (TC+)
Circle Internet Financial (Circle), the company behind the popular USDC stablecoin, has called off its merger with a blank check company, ending the SPAC-led run to the IPO. Circle’s SPAC deal made headlines when it was announced last year and earlier this year when it was repriced. Last we heard, Circle had renegotiated its SPAC transaction, increasing its enterprise value from $4.5 billion to $9 billion. So what happened between then and now to take us from a new higher deal price to a termination?
Seoul court rejects arrest warrants for former Terraform Labs employees and investors over Luna collapse
A court in Seoul rejected a request by prosecutors for arrest warrants for eight people associated with Terraform Labs, including Terraform Labs co-founder Daniel Shin, early investors and former engineers. The court rejected the arrest warrants and said the eight people should have the right to defend their case against charges. Shin is accused of taking illegal profits worth approximately $105 million by selling Luna tokens as it nearly reached its all-time high without disclosing this move to investors, prior to the collapse of the TerraUSD and Luna earlier this year.
The CEO of Mastercard sees the collapse of FTX as an opportunity for the crypto market to reset
Although one of the largest crypto exchanges, FTX, collapsed and filed for bankruptcy, some market participants are not concerned whether the collapse will change institutional interest in crypto. “I feel like once you have the momentum to get an institution up and running, it’s hard to get them to turn their heads and turn,” said Grace Berkery, director of startup engagement at Mastercard, at an event on Wednesday. “So when they go in, they stay in space.”
Ledger’s latest crypto wallet taps iPod designer to increase accessibility
Ledger, a security-focused company that sells crypto hardware wallets, is teaming up with the designer behind the iPod, Tony Fadell, in hopes of creating an easier, more accessible way for users to secure their crypto assets. The new credit card-sized crypto wallet can manage NFT collections as well as more than 500 coins and digital assets.
the latest pod
As a reminder, the first season of Chain Reaction ended last week and we’re bringing new content back in the new year.
ICYMI: Last week, in Chain Reaction’s Tuesday deliveryAlchemy’s CEO Nikil Viswanathan had a lot to say about how the industry and developer focus has shifted to infrastructure, what will drive the next wave of consumer interest, and which blockchains he sees the most developer activity on.
Subscribe Chain reaction On apple podcasts, Spotify or your favorite pod platform to stay up to date with the latest episodes, and leave us a review if you like what you hear!
Follow the money
- Tea, an open source package manager for developers, is raising $8.9 million in seed funding
- NFT-focused startup Metagood raises $5 million for ‘social good’ impact
- Uniswap-based protocol Panoptic raises $4.5 million for decentralized perpetual options
- Crypto-Accounting Focused Bitwave Raises $15M in a Series A Round Led by Hack VC and Blockchain Capital
- Perennial, a DeFi derivatives trading protocol, raises $12M in seed round led by Polychain Capital and Variant
This list was compiled using information from Messari and ExamPaper’s own reporting.