Investigations, Investments, and Introspection

MUSHROOM ALPHA

GM. Fun stuff for you today. Things are heating up with reported investigations at Coinbase. Again. Plus, a thread about the Helium project that might leave you light-headed, and some realistic expectations from Art Blocks.

Today’s Topics:

• Coinbase under the microscope

• An interesting thread about Helium

• Art Blocks gets real

• Quick Links

What is Going on at Coinbase?

Things are getting dicey over at Coinbase as the SEC is now reported to be investigating the crypto exchange for allowing United States residents to trade digital assets that should have been listed as securities. This follows closely on the heels of an employee within the exchange facing charges of insider trading. 

The past few weeks haven’t been kind to Coinbase.

Even though nothing official has been announced yet, the SEC has shared that “nine tokens traded by individuals accused of insider trading contained hallmarks of the definition of a security.” 

Coinbase isn’t taking these accusations lightly. The platform’s chief legal officer, Paul Grewal, hit back against the reports, stating, “we are confident our rigorous diligence process…keeps securities off our platform.” 

The exchange also went on to say in a blog post that it “does not list securities on its platform. Period.” 

Are they telling the truth? Looks like we’ll find out soon.

Is Helium Hemorrhaging?

There are many within the crypto world who would have you believe that Helium is one of the best examples of the success of Web3. After receiving hundreds of millions in investments, Liron Shapira points out on Twitter that the project only brings in $6.5k each month.

Check out the thread here. It’s a good one!

Pump the Brakes, Please

Anyone who starts a business wants that business to be successful. While success has a different meaning to different people, Art Blocks realized financial success very quickly. However, the company’s creator, Erik Calderon, didn’t see that as a good thing. As a matter of fact, he’s thankful for the current slowdown the market is experiencing.

Calderon tells Decrypt that he believed the initial growth for the company was “unreasonable” and “unsustainable.” Additionally, he says that the crypto crash has given him the opportunity to have “rational conversations with human beings about art.”

Most of these discussions center around NFTs, but the market explosion earlier this year made it difficult to sit down with artists and educate them on how to handle their careers, how to deal with critiques, and how to digest feedback in a healthy manner.

Still, Art Blocks is in a great position as it continues to experience what Calderon calls healthy growth. To see some of the amazing work being done on the site, head on over to Art Blocks.

Headlines

Chipotle chips in - This fast food monger proves that crypto is still effective in marketing in a bear market.

Curious about Tesla? - Here are the deets on their Bitcoin holdings, sale, and profit.

Say it ain’t so - Now Kraken is under the microscope for sanctions violations in Iran. Seems like everybody wants a piece of the action, even when they’re not supposed to.

Less government - Yes, please! There’s a bill attempting to eliminate taxes on crypto transactions less than $50, and we’re all for it.

Declining global economy? - IMF says no. Amid the crypto decline, enthusiasts worry that it will hurt the global economy, but there’s little evidence that’s true.

Bitcoin: Gamified - People who love Sudoku and Solitaire will get a kick out of this. You can now earn crypto for playing!

Fear of missing out - We all suffer from FOMO, and apparently, so does Ripple. They announced a new partnership with FOMO Pay.

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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.