a16z Still Very Bullish on Crypto

Plus Do Knows about Luna 2.0 and Solana did what?

May 26, 2022

MUSHROOM ALPHA

We tried to watch Netflix instead of writing this and got clapped across the head by the Mushroom man. Ok onto the newsletter.

Today's Topics:

  • a16z Still Very Bullish on Crypto

  • Do Knows about Luna 2.0 - We had to do it

  • Solana surpasses ETH in NFT Trading Volume

  • Quick Links

a16z Still Very Bullish on Crypto

We might be in a bear market but a16z the VC firm you hear about in almost every crypto deal is doubling down. They woke up and found $4.5B of loose change between couch cushions to create the largest crypto fund known to man. In total they are all in for $7.6B on Web3 and crypto.

What are their plans with this cheddar?

1/ $1.5B is going to seed rounds and $3B to venture rounds

2/ Their press release says they will throw money into projects focused on, "web3 games, DeFi, decentralized social media, self-sovereign identity, layer 1 and layer 2 infrastructure, bridges, DAOs & governance, NFT communities, privacy, creator monetization, regenerative finance, new applications of ZK proofs, decentralized content & story creation, and many other areas."

3/ Staffing the F up to accommodate all of the above

The VC firm considers this the 'golden era of web3' and is placing their bets that blockchains will lead the way. Amazing talent has entered the space and will bring new and exciting innovations.

Go big or go home. We love it!

Do Knows about Luna 2.0 - We had to do it

Do Kwon got the go ahead with 65% of the votes to split the blockchain for the Luna token. The team is calling this Terra 2.0 and unbelievably they have 'solid' support from the Terra ecosystem.

For those not in the know earlier this month UST the stable coin associated with Terra lost it's peg due to a massive liquidity dump and performed a dive we don't recommend called the "Death Spiral". Don't try this at home. Both UST and the Luna token imploded like the Death Star after a precise missile strike.

What does this mean?

1/ They will hard fork the current Terra blockchain and the new community-owned chain will carry the same "Terra" name. The native token will be called "Luna".

2/ The older chain will be demoted to "Terra Classic" and the underlying token demoted to "Luna Classic". We happen to like classic movies but not classic of either of these.

3/ UST will die the sad death it deserves

4/ Genesis is on May 27, 2022. Previous token holders of LUNC, USTC and aUST will be airdropped the new LUNA token on the new chain. Distribution schedule here.

Final word from Mushroom Alpha

We won't be jumping in on this new launch but there are a few degens who will. Be careful, stay safe, and most importantly stay solvent.

Solana surpasses ETH in NFT Trading Volume

CryptoSlam a NFT data dashboard reported Solana NFTs with $24.3M in sales and ETH NFTs with $24M in sales popping off in a 24 hour span. A project called Trippin' Ape Tribe is the catalyst for sales on Solana as it led trading volume. The project has the most gangsta name we've heard on any NFT project of late.

We are beginning to see Solana NFTs grow faster than your work from home beard with recent launches such as the Okay Bears still holding a solid 156 SOL floor price or $6308 USD at time of writing. What can we say, Solana is hot right now.

Magic Eden has leap frogged OpenSea when measured by weekly users and transactions. Of note is the fact Solana fees are minuscule while ETH fees will break you. OpenSea added support for Solana NFTs in response but has yet to see success.

Quick Takes

Paradigm is launching a Peter Thiel like fellowship for young crypto founders. - As long as we don't have to be blood boys we are in.

The Rise of Metastars by Coopahtroopa - Stars that exist in the metaverse. We feel this will be increasingly common. Think of it like Disney characters in Web3.

Funding News:

ZenLedger rakes in $15M to conquer boring crypto taxes - We hate taxes but we gotta pay cuz we hate jail more.

StarkWare gets $100M and now valued at $8B - ETH layer 2 scaling solution gonna use the money to....BUILD.

See you Friday!

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Disclosure: We are a newsletter for information only. We are not financial advisors nor do we claim to be. Consult your legal, investment or tax advisor. Crypto is risky. Do you own research.