Steady lads...

A recap of the rocky week in crypto featuring Do Kwon, BAYC and more rug pulls

Build in Bear
August 21, 2022

Steady lads, the U.S. is about to deploy $740 billion for the Inflation Reduction Act. We’ve heard similar words before from Do Kwon before LUNA was sent to its deathbed (rest in peace 🙏). Unfortunately, we don't think printing more money is the answer to our market problems.

If you're not caught up with all the Twitter talk this week, don't worry, we got you covered. Web3 Seems Legit is a weekly newsletter that rounds up all the best tweets and threads on web3 so you can stay in the loop in 5 minutes or less.

Here were the hottest topics of the week:

Do Kwon finally breaks his silence and recounts the days leading up to the LUNA collapse. TL;DR he's "down infinite".
Blue chip NFTs are having a sale and no one is buying. Several BAYC NFTs are close to liquidating making it a perfect buying opportunity...if only people cared to spend on a jpeg ape right now.
The rug pull horror stories continue. Fei Protocol, Bribe Protocol and DegenTown NFT have all left their users in the dust.
Canada releases new limits on crypto. If you live in Ontario, you can only buy $30k worth of crypto a year, aside from some coins like Bitcoin or Ethereum. Probably nothing.

Do Kwon finally breaks his silence

"I bet big, and I think I lost."
@stablekwon has finally broken his silence in his first interview since the $LUNA $UST collapse.
@zGuz from @coinage_media hosted the exclusive interview.
🧵: Here are the key takeaways. 👇
— Miles Deutscher (@milesdeutscher)
12:52 PM • Aug 15, 2022

But seriously, highly recommend everyone reading the full story. Do Kwon recounts in detail the days leading up to LUNA's collapse and it just perfectly captures the insanity of the industry. But we're just early, right 🤷‍♂️?

Blue chip NFTs are having a sale

There are currently 32,267 ETH ($59,048,610) worth of NFTs being used as collateral for loans on BendDAO alone
For the first time ever, a lot of these are at serious peril of liquidation
A thread on the single biggest risk to the NFT market that nobody is talking about
— Cirrus (@CirrusNFT)
5:24 PM • Aug 17, 2022

Once worth as much as 153 ETH, several BAYC NFTs used as loan collateral are about to get liquidated. There's no better time to sweep the floor than now, but don't get us wrong, these jpeg apes will still cost you over $100k 🙂.

The rug pull horror stories continue

First up, we have Fei Protocol. Rather than operating autonomously for the community as they should, the Fei team is closing down and taking most of the funds with them. Rug? Pulled. So much for DAO governance 🫡.

I can't stand to not speak up about this @feiprotocol situation. Please read this 🧵 for one of the most egregious "DAO/DeFi" situations I've ever seen. There's CeFi drama stuff, but this is a new low for DeFi.
— Sam Kazemian (¤, ¤) (@samkazemian)
9:32 AM • Aug 20, 2022

Next up, we have Bribe Protocol. Yes, VC investors and users trusted a protocol called Bribe and now the team is nowhere to be found.

Anyone remember @BribeProtocol? Raised $5.5m in January 2022 and was incubated by @BlockchainAG@ComposableL. Project has gone completely dark across all socials for 3+ months with people rekt.
— ZachXBT (@zachxbt)
4:47 PM • Aug 18, 2022

Last, but not least, we have DegenTown NFT. Magic Eden, the NFT platform that provided a launching pad and promotion for the NFT project finally came out with an official statement, but is it enough?

🧵/ We hear the community loud and clear about the @DegentownNFTs collection that launched on Launchpad and have been working behind the scenes to reach a resolution with the original founders and current collection owners.
Our full response: contenthub.magiceden.io/magic-eden-res…
— Magic Eden 🪄 (@MagicEden)
8:04 PM • Aug 18, 2022

Canada releases new limits on crypto

NEW: If you live in Ontario you can only buy $30k in crypto per year. Only exceptions are Bitcoin, Ethereum, Litecoin, & Bitcoin Cash.
Litecoin & Bitcoin Cash are perfectly safe
Regulator knows best.
I grew up in Ontario. Family lives there.
w/ laws like this i can't go back.
— RYAN SΞAN ADAMS - rsa.eth 🦇🔊 (@RyanSAdams)
7:37 PM • Aug 17, 2022

Oh Canada...the true north strong and free 🇨🇦

Looking for some new web3 tools or platforms to check out?

👉 SudoSwap - the "Uniswap" of NFTs 👉 ProsperCircle - a simple and powerful NFT insights tool 👉 Ora Labs - a search engine for blockchain data

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