Sup, nerds!

Here’s what you’re getting in today’s edition:

• 💅 This is cool: Nature (web) is healing

• 🔎 This seems important: Bitcoin’s ‘Panic Room Problem’

• 🤝 Partner: Fuller, thicker hair in 3-6 months*

• 🔪 Let's dissect this: Yuga Labs layoffs = more crypto-native innovation?

Terms used in this edition (click for an explanation, or ask Web(GPT)3!):
Web2/3, stablecoin, NFT.

💅 This is cool:

Nature (Web3) Is Healing

In one sentence: Stripe (the #2 online payments company) is enabling crypto payments once again, this time it’s focusing on stablecoin payments across SOL, ETH and MATIC.

We covered this news on Friday but started running some numbers in our head over the weekend and we’ve officially added this to our:

“web2 x web3 snowball” thesis.

Just to recap, for those in the back — that thesis is part of a larger check list, which goes something lime this…

When checking the crypto market for health, we look for:

1. An increase in total market value

2. Positive outside investment inflows from venture capital

3. Big name partnerships being inked between web2 & web3 companies

One and two have been comfortably achieved, and now, three is starting to prove itself out!

First it was Adidas partnering with Stepn’ to release digital/physical collectibles and gear (consumer focused), then it was TikTok launching a blockchain powered cloud infrastructure and AI service (business focused).

…now we have the largest web2 x web3 partnership announcement of the year, which will span both the consumer and business sectors:

Stripe is enabling crypto payments once again, this time it’s focusing on stablecoin payments across Solana, Ethereum and Polygon.

And if you’re not familiar with Stripe — that’s ok — as we mentioned last week: you probably use their services either way, because Stripe is the second largest online payment provider in the world, with a tidy 37.65% marketshare.

That means 37.65% of global e-commerce (projected to be a $6.3T industry by year’s end) will now be able to take place on-chain, offering faster settlement times and lower fees than their legacy financial counterparts.

The takeaway:

• Blockchain isn’t necessarily being adopted here because it’s the ‘hot new thing,’ but because it’s simply a great (dare we say, better) option.

• This fits to a larger theme of “re-adoption” for crypto.

Nature (web3) is healing 🥲

🥇 Want the news before anyone else?

🔎 This seems important:

Bitcoin’s ‘Panic Room Problem’

In one sentence: It goes like this: BTC ETF traders get spooked by price dips over the weekend → they sell off first thing Mon. → prices continue to tumble throughout the week.

There’s a new problem being faced by Bitcoin, and it’s a symptom of the ETFs.

(It’s the same reason why we’d never buy-in to them ourselves).

Don’t get us wrong, we’re glad the Bitcoin ETFs exist!

But because we’re individual investors, we’re free to buy and custody our own Bitcoin, without running into any regulatory/operational red tape.

(Which is essentially the problem the ETFs are solving for big-dog investors).

And by holding custody over our own Bitcoin, it means we can avoid the “panic room problem.”

If you’ve never heard of it, that’s because we just made it up.

But it’s meant to reflect a new pattern we’re seeing in the crypto markets, driven by the BTC ETFs.

It works like this:

Because ETF shares are traded on US stock exchanges — it means traders can’t cash out over the weekend. Meanwhile, the Bitcoin market runs 24/7.

So if market instability strikes outside of stock trading hours (e.g. the weekend), you just have to sit there and watch prices tumble until Monday.

(Kind of like being locked up in a panic room, while you watch your home get ransacked).

And this new paradigm can have a knock-on effect throughout the week:

Traders get spooked by price volatility over the weekend → they sell off first thing Monday → this causes more further price depression through the week.

Good news is:

The same goes for the inverse — when prices go up over the weekend, it can spur upward price movement throughout the week.

Either way: we like our optionality — so self custody it is.

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🔪 Let's dissect this:

Yuga Labs Layoffs = More Crypto-Native Innovation and Success?

In one sentence: The Yuga Labs CEO has just announced some layoffs; but it may just be the key to a successful rebound for Yuga.

Here’s a hot take to start off ya Monday:

It’s easier for a web2 company to move into web3 than a web3-native company to find similar success in its own industry.

We’ve written about this before when we saw companies like Nike move into web3, or when Gucci started accepting ApeCoin.

And today we’re here with another example (this time it’s disappointing news, but there could be light at the end of the tunnel).

ICYMI: around a year ago, Yuga Labs (the team behind NFT projects like Bored Ape Yacht Club) hired the Harvard-educated, ex-CEO of Activision Blizzard, Daniel Alegre.

Six months later, a slew of layoffs were made at Yuga.

Then, in February this year, co-founder Greg Solano took over as CEO.

Now, Solano has announced a new round of layoffs, stating:

(A subtle jab at the previous CEO’s management style).

Here’s the good news in all of this:

Yuga Labs still has a strong team and even stronger war chest to help them navigate a web2-dominated world.

And while we hate to see companies in the space laying folks off, it happens all the time for web2 companies.

(This ain’t a rare event).

Here’s hoping it results in more structure, more direction, and more innovation from the Yuga Team.

Fingers crossed 🤞

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