Unchained - Can a Pro-Bitcoin Platform Help in a Congressional Race? Aarika Rhodes Says Yes - Ep.314

Episode Date: January 28, 2022

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Hi, all. I just wanted to share with you a blurb that Willie Wu, on-chain Bitcoin analyst and author of The Bitcoin Forecast Newsletter, wrote about my book. Willie said, deeply researched, this book is an important body of work and must read for the inside story of Ethereum, complete with all of its grit and drama. If you have not yet pre-ordered your copy of the Cryptopians, then head to Bitley slash Cryptopians. That's B-I-T-L-Y-S-C-R-Y-P-T-O-P-I-N-S to pre-order your copy today. Again, the link to pre-order is Bitley slash Cryptopians. And now on to the show. Hi, everyone. Welcome to Unchained, your no-hype resource for all things crypto. I'm your host, Laura Shin, a journalist with over two-de-exam.

decades of experience. I started covering crypto six years ago, and as a senior editor at Forbes, was the first mainstream media reporter to cover cryptocurrency full-time. This is the January 28th, 22 episode of Unchained. With the crypto.com app, you can buy, earn, and spend crypto in one place. Download and get $25 with the code Laura. Link in the description. Today's guest is Erica Rhodes, a Democratic candidate for Congress running against Congressman Brad Sherman in California's 32nd District. Welcome, Erica. Hi, thank you so much for having me. You're an elementary school teacher.

How did you decide to run for Congress? So I decided to run for Congress back in 2020 after coming off the Democratic primary. And I just felt like nobody was advocating for young people. there was so much civic unrest, lack of civil discourse. And I just felt like it's time for new governance, new leadership. And the things that I care very, very deeply about. And I think that would make a difference in our country and my community. I was like, you know what, I'm going to go ahead and run.

I talked to my family about it. And they were all super supportive. And so here we are running against Congressman Brett Sherman. And I believe that you previously volunteered for Andrew Yang and his presidential campaign. And he's well known for being an advocate for universal basic income. What are the main goals and principles of your platform? So our campaign is deeply rooted in, you know, education reform, foster care reform, and meaningfully addressing poverty.

So that's why we are a very pro-Bitcoin campaign. I think we're at an influx right now where, you know, we're throwing only money at problems. We are seeing that we have politicians that only get their money from big banks, corporations, lobbyists, packs, and the everyday person is being ignored. And so that's another root cause, or an essential part of our campaign, is making sure that people are at the forefront of the conversation and that we're always bringing it back to what everyday people care about.

So a new way of leadership, community service, and being active in the community. And when you talk about how you're pro-Bitcoin, how did you become interested in Bitcoin? So kids on my campaign, when I first announced, like when I first was like running, they actually brought it up to me. And I wasn't really like certain if it would comply with like the FEC rules and regulations. So I was like, you know, I don't know if we can do that. And so I've never, I've never ran for office before. So I kind of like paused it a little bit. and then Brad Sherman, Congressman Brad Sherman had a hearing and completely went against

crypto and Bitcoin. And the Bitcoin community reached out to me. We jumped on a call. We had this really, really long, thoughtful conversation and it turned into other conversations. And then I decided to go ahead and call the FEC, figure out how we can do it accounting-wise. And when I realized that this could be an essential part of our campaign, not only were the kids really excited, but we were really excited to be able to officially add it to our platform, because we know that the big banks keep people impoverished. We know that's a different way of finance,

and we know that one and six people have it. And so it's an innovation that's not going away. It's going to be as big as the internet. And we want to be on the right side of history with that. And we also want to bring new innovative ideas to government. I think instead of them trying to regulate it and ban it, they should absolutely be embracing it and leaving it alone. So it could be at its truest form. And when you say that this happened after a hearing in which Brad Sherman was really negative on Bitcoin and crypto, which one was it? Because that's happened multiple times. So it happened around, I want to say July, June or July, it was a few months ago.

Like that was the one that I think set people off. I want to say it was around June or July. Okay, okay. And then are you pro crypto too or just pro Bitcoin? So I have personally put most of my energy in learning more about Bitcoin, the Lightning Network, and really exploring like what that means. I read the Bitcoin standard. And talking to people in the Bitcoin community, because they're the ones that reach out

to me and they have offered to. really, really, like, educate me on it. And so that's just who we've been corresponding with. And then I obviously own Bitcoin. So I hold Bitcoin. So that's just where I fall. But having me in office is still a net benefit for anyone that holds cryptocurrency because I'm not wanting to like regulate it. I just think for it to be able to flourish and reach its full potential, we need to leave it alone. That's, That's my opinion. I don't know how you feel, but I just don't think government should be involved in it. And as we have mentioned, so Representative Brad Sherman, he's called for a ban on crypto. He's also mocked it for being speculative. As we all know, he is the one who was kind of mocking how there could be like a mongoose coin and a cobra coin and et cetera, et cetera. What is your response to his criticisms of Bitcoin and cryptocurrency?

it's always you have not been to your community. You have not spoken to members of your community because I personally have not met anyone that doesn't hold a cryptocurrency or Bitcoin or Ethereum, anything. And I have not met anybody that wants it banned or regulated. Even if people don't even understand crypto or Bitcoin or blockchain, any of it, they don't even care to ban it. And so to me, I read it as like, you're not in the community. You have not even, you can hold a talent hall. This is a very important issue to you and you think it requires constituents being informed, you could always hold a town hall on it and see how people feel about it. And I think within a town hall, you would be pleasantly surprised that nobody wants a band. So to me, I read it as being

out of touch and irresponsible. And earlier, I mean, you kind of alluded to this, but is it generally that your sense is people buy and hold Bitcoin or crypto because of this issue with big banks? Or like, what is the motivation there that you hear from the people you would like to represent? I hear people say that they find it to be they want their pro-innovation. And I think like, just like, for example, the Lightning Network, the fact that transactions can happen like this, you don't have to wait three or four days. You can be, let's say, in Los Angeles and your mom is in Argentina. Tina, and you can just send it immediately, and you don't have to worry about the hassle of anything. I think that attracts people, that the fast and the efficiency, the low interest rates.

Like if you have a bank, you know, the banking fees, I think you keep people impoverished and they can't get ahead. So like if you overdraft and then you get $35 a day for overdrafting, by the time you get your next paycheck, a fourth of that is gone, therefore it's hard to pull yourself up in poverty. And Los Angeles and our district is very expensive to live in. So every dollar matter that I think people are, you know, kind of looking at other alternatives to the traditional banking system. And one of my favorite stories I like to tell is a veteran that actually helped on my campaign. You know, she was a veteran.

She came back. She fell into poverty. She got into Bitcoin early, pulled her out of poverty. And now she has devoted her life to helping people in her community. participates in every drive that we do and candidates that are pro-bitcoin. And that's just what she has decided to do. And she doesn't, and she, and that's all because she invested in it. And so I think that her story is a lot of other people's stories. I know single mom, a lot of people of color, almost every person of color that I know holds. And so I think him trying to ban it is frustrating

because it's like an investment that people have, young people have it, and you try to ban it. It's almost like trying, like you don't even care about the money that they put into this. And I also want to say, I think financial literacy should be taught in schools. I think that that's really important. You know, when kids are graduating from high school, they don't have a strong sense of personal finance. They don't understand, you know, credit cards, debt, retirement. anything like that. So I think it's a problem. Okay. So in a moment, we're going to talk a little bit more about your views on that.

But first, a quick word from the sponsors who make this show possible. Join over 10 million people using crypto.com. The easiest place to buy, earn, and spend over 150 cryptocurrencies. Spend your crypto anywhere using the crypto.com visa card. Get up to 8% cash back instantly. Plus, 100% rebates for your Netflix, Spotify, and Amazon PrimeZus. subscriptions. Download the crypto.com up now and get $25 with the code Laura. Link in the description. Back to my conversation with Erica. When you talk about how you feel that personal finance should be

taught in schools, do you see Bitcoin and crypto as being something that would be relevant in that? Or if so, like how would you kind of use it to teach that? Yeah, I think that it should be a part of it because that's, you know, a huge part of our current financial system. It's something that people care about. I think educating people on all things finance is important, you know, from not just like from just like the traditional banking, but how to budget. You know, what does it mean if you take out the student loan at X interest rate? You know, I think all across the board, if it's pertaining to finance, I think kids should know about it. So earlier we talked about regulation and you kind of alluded to, you know, your views there. But let's unpack that a little bit more. So you said, you know,

you don't feel crypto should be regulated. Obviously, there's a lot of regulators who don't necessarily have that view. And the industry has done a lot of things from, you know, suggesting there just be one regulator. As we know, SEC Commissioner Hester Purse has recommended that there be a safe harbor for people that want to launch tokens. Other people think the CFTC, the commodities These futures trading commission should be the default regulator for crypto. So, you know, assuming that we can't just, like, not have it regulated at all, like, kind of which route do you think is the best way to go? If you're going to put things in place, I think that before any member of Congress votes, they should be very well informed, have an understanding of it, meet with people that are experts in the industry, and really make sure that they know what they're. they're doing before they vote on any legislation that heavily regulates it. That's my personal opinion. I think what we're seeing right now, even with that last infrastructure bill,

they slipped it in and the language was incorrect. They didn't have any conversations from experts in the in the in the in the crypto space and that posed to be a real problem. And I think what you what we also saw people are paying attention. They organize and then they reach out to their elected officials and to fight this. And I think. that, you know, that is an indication that people really care about that. And if we're there to represent people and they're using their voices to say, please don't do this, that I think we should take the time to listen. More importantly, I think being learners, I think I always approach things as trying to learn. Like, I'm always trying to learn. And I think that's what frustrates me,

not just this topic, but any topic, there's no desire to listen to anyone. And this I know all. I know best. Well, the way we've always done it doesn't work. It doesn't work. And so I think that's why we have to have new people in office that are going to bring a different perspective that are listeners and have different life experiences because it's not working. And if it was working, we wouldn't still have high poverty. We wouldn't have an education system that when kids graduate, they would fall right into remediation. We wouldn't have a foster care system that we have. We wouldn't have a health care system that's not working for people. So what they're doing right now isn't working. So again, to the point is that I think that before they try to regulate things,

make sure they're well-informed. The Federal Reserve just released a report on central bank digital currency and they're going to be soliciting feedback. What feedback would you give them on whether the U.S. should issue a central bank digital currency? Well, you know, I, I don't know if I can speak on that because I have not seen that personally. But if they're just looking for feedback, I think when they get the feedback really like consider what people are saying for better for worse. I think they should really, really take it.

Not just do this. We're going to get feedback, but still do what we want to do. Like that, because sometimes these people do this. So they'll say, we'll get your feedback and input, but we've already made a decision of what we're going to do. So my advice would be really take. the feedback. But I haven't seen that. I'll have to look that up. And so obviously we saw that Brad Sherman, when he talks about crypto, he gets a lot of, what's the word, I guess, social media

heat. And I've noticed that you have capitalized on that and like tweeted, you know, when he says something that the crypto community finds ridiculous. What effect in general have you seen on your campaign from adopting a pro-Bitcoin platform? Well, two things. One, I push back because I want to stand with this community and I want them to know that I will do the same in Congress. I believe that people speak with their deeds. And so I really want to build trust that I'm for real about this. I hold myself.

So I'm not just like doing it for any other reason. So that's why I push back. Normally I don't really talk about Brad. I don't believe you could teach an old dog new trick. So we're really focused on like our agenda, what we care about. And that's very important to me. The second thing is what I love about this particular community is that there's like a call to action.

There's intention behind it. And it's like a community of learners, people that really want to learn things. Like the other day I was like asking about like home ownership. Like is there a way that we can advance this to where you know how when you buy a home through the banking system. You have to get like a loan and stuff. How can we do that through this space? Like how we talked about that? Is there any information? How much how much job creation has come out of this space? Like so, and everyone's so quick to give articles and multiple articles, not just one. It's typically not biased. So I think that's really important to noteate.

So secondly, it's tremendously helped my campaign because, you know, I'm an elementary school teacher running and just to be able to accept cryptocurrency, Bitcoin has allowed us to be competitive against Brad Sherman because of the Lightning Network. The Lightning Network through Open Node does not take the same amount of percentage that Act blue takes. And so that allows us to keep the most capital to be able to have a genuine chance at unseating him. So it's been really, really helpful for me because I work full time while I'm doing this. And when you accept Bitcoin campaign donations, does your merchant processor, does it immediately convert the Bitcoin to dollars or do you keep it in Bitcoin?

It has to convert because that's the FEC compliance. Okay. Yeah. And for people who don't know FEC, I think is Federal Election Commission. Yeah, sorry. I'm sorry. I should have done there. No, no, no.

It's okay. I meant to say that earlier and I just forgot. And obviously, you have seen this tremendous. impact of being pro Bitcoin on your platform, on your campaign donations. What effect do you think crypto in general will have on the midterms in 2022? I think it's going to have a profound impact. I think people really care about this. A lot of people are single issue voters. I think people want new ideas. And this is just a space that people really, a thing that people really care about. And so you have candidates like myself, Reverend Windy, Matthew from Ohio, that are leading the charge as Democrats and then saying that, like, yo, y'all need to wake up.

Like, it's time for new things. And so I think if we win our races, being pro Bitcoin or crypto, whatever you are, I think if we win our races, I think if we win our races, I think it's going to have a profound impact not only on the future of politics, but especially the presidential. runs. I really do. And so you mentioned you're a Democrat. And I mean, it's not 100%, but probably more of the prominent anti-crypto voices have tended to be Democrats, such as Elizabeth Warren or Brad Sherman. What message would you have for other Democrats about Bitcoin and or crypto? So one thing that I will do if I get the good fortune of serving the 32nd district, is I am going to join the blockchain caucus. We initially said that we wanted to start our own,

but there was already one. And I find this to be very interesting, that there's 17 Democrats and 18 Republicans on that particular caucus. It's super bipartisan. And I think that this space should remain a nonpartisan issue. That's my personal opinion. I think anyone that wants to have it should be able to have it, regardless of their party affiliation.

I think that is one of the most beautiful things about it. And I really advocate for it to stay that way. Second, I personally plan to sign on the bills that protect innovation in the United States. I think that's really important. We need to lead anything innovative like we did with the Internet. Thirdly, I am going to make it my business to educate people on it, especially because I want to now, I have decided that in addition to the educational labor can be, I want to sit on financial services.

Because I'm realizing, like, those two committees are incredibly important to our platform. And for the things that I really care about when it comes like foster care, environment, education reform, banking system, campaign, all that stuff, I need to be on those two committees. And so when I will get to be in those hearings, and I'll be able to ask very different questions, because what's happening is they're asking questions that always try to show it in a negative light. And I think that's dangerous. I think you also have to show the net benefits. And so that is something that I personally plan on doing when elected.

And Brad Sherman will be a factor because we'll be unseeding him. So I just have one more common on because I think this is important. For me, you can't say that you're for working people, that you care about poverty and be anti. Because the banking system keeps people impoverished in different ways. Check cashing companies, pawn shops, those should not be financial institutions for people. So I think that's what we need for them to understand. If they don't already understand how the interest rates work with a check cashing and a pawn shop, that's the other thing, too, I just want to put.

You can't be, say you're for the people and be against it because this is like for the people technology and innovation. Yeah, yeah. It definitely seems probably more aligned with a lot of the Democratic platform than the Republican, although weirdly, the more vocal pro voices tend to be Republican. So it's a conundrum of how this all works. I did also want to ask about the fact that a lot of people take issue with the environmental impact of proof of work mining, which is used in both Bitcoin and Ethereum, although next year Ethereum is shifting away from that. And obviously, the Democrats like yourself tend to be more in

favor of environmentally friendly policies. So what's your take on the environmental impact of proof of work mining and how do you square that with your environmental concerns? So I care very deeply about the environment. I'm a science teacher. So it's really important to me. And that was some questions that I had on the onset when I was meeting with, you know, leaders of the space, the space. And what I appreciate is that there is a huge intention on, you know, mining the Bitcoin in solar using wind power, methane, renewable gas. And I also think that there is that when we talk about energy, there's a lot of energy waste on and that we day-to-day use in general.

So I think if we're going to have the energy conversation, then we need to have it completely and fully and not just put it on Bitcoin mining. I think that we need to talk about like if I'm like at home and my my washer is on like like mode. I forget the what's it called? Like if it's just like a standby mode. That's sorry, I had a brain part. Stand by mode. Well, then we need to talk about that.

You got to factor that into or during Christmas and all the Christmas lights and the energy that that uses. So we're going to talk about energy. Let's really talk about it completely and not just put it on the mining. We can talk about the energy use and the bank. system. We could talk about the energy, you know. So, so I think that the, they are trying to be more environmentally friendly. And I do think that they're cognizant of it. And so I, I just think we do need to give, because it's in its emphasis still. I still like to think it's in its beginning stages, the opportunity to make whatever adjustments can be made and allow it to grow. Because that's,

that's just the nature of it right now. Is there anything else you would like the crypto community to know about you? I think this is very important to me. So in addition to obviously standing with this community, I do really care about foster care reform, education reform. And I think that those are topics that are really important. And I hope that, you know, other people, like, people can see me as not only, like, in that I always support this, but I've also for other really great things. And I genuinely do want to make a difference in Congress. You know, I wouldn't put my whole life on hold just to be, just to be running. Like, I have no dreams of being a senator, definitely never going to run for president

or anything like that. I really just want to serve in Congress and make a difference. And I appreciate all the support and love that I have gotten, received. I do not take any of it for granted. And this is really important to me too, is I really, there's a lot of distrust in this space with like politicians and elected officials because they say one thing and they do another. I can't cannot wait to show I'm a person in my word, but through my actions. Like, I can't wait to get there and really be like, okay, she's a real one. Like she did what she said she's going to do. So please hold me accountable. You have it on, I'm on record, obviously, but know that I'm well intentioned and I'm really truly running for the right reasons. I really, really care about

these things. Great. Well, where can people learn more about you? All right. So you can visit my website, Erica for Congress.com, F-O-R. And you can follow me on social media, but it's all on our website. Perfect. All right. Well, thank you so much for coming on Unchained. Thank you so much for having me. Don't forget. Next up is the weekly news recap. Thanks for tuning in to this week's news recap. The scorebed app here with trusted staff. in real-time sports news.

Yeah, hey, who should I take in the Boston game? Well, statistically speaking. Nah, no more statistically speaking. I want hot takes. I want knee-jerk reactions. That's not really what I do. Is that because you don't have any knees? Or...

The score bet. Trusted sports content, seamless sports betting. Download today. 19 plus, Ontario only. If you have questions or concerns about your gambling or the gambling of someone close to you, please go to conicsonterio.ca.

With Amex Platinum, almost every purchase made with your card can be covered with points, including new tastes, new fits, and virtually everything in between. That's the powerful backing of Amex. Conditions apply. Local news is in decline across Canada, and this is bad news for all of us. With less local news, noise, rumors, and misinformation fill the void, and it gets harder to

separate truth from fiction. That's why CBC News is putting more journalists in more places across Canada, reporting on the from where you live, telling the stories that matter to all of us, because local news is big news. Choose news, not noise. CBC News. The IMF urges El Salvador to drop BTC. On Tuesday, the International Monetary Fund Executive Board published a statement that urged El Salvador to narrow the scope of the Bitcoin law by removing Bitcoin's legal tender status.

In its report, the IMF stressed that there are large risks associated with the use of Bitcoin on financial stability, financial integrity, and consumer protection, as well as the associated fiscal contingent liabilities. Additionally, multiple directors also expressed concern about El Salvador's plans to issue Bitcoin-backed bonds. Bloomberg reported talks between El Salvador and the IMF regarding a $1.3 billion loan have stalled due to, to concerns about Bitcoin. That being said, President Naïbe Buckele has been expressing his passion for Bitcoin on Twitter, where he announced the purchase of another 410 Bitcoins for El Salvador on the 21st. Wonderland allegedly co-founded by former Quadriga CX co-founder. Wonderland,

an avalanche defy protocol forked from Olympus that is part of Frog Nation, saw multiple tokens associated with the project experience a sharp sell-off on Thursday, after allegations came to light that the project was founded by former co-founder of Quadriga CX Michael Patron, aka Zero X-C-Foo. The allegations against Patron were brought by on-chain analyst Zach XBT via Twitter. Since then, My Crypto founder, Taylor Monaghan, also tweeted evidence of the same. On Twitter, Wonderland co-founder Daniela Sistigali seemed to hint that the rumors are indeed correct, writing,

Today, allegations about our team member Zero X-Hifu will circulate. I want everyone to know that I was aware of this and decided that the past of an individual does not determine their future. I choose to value the time we spent together without knowing his past more than anything. Patron has had several criminal convictions. Famously, he also was involved in Quadriga,

and now defunct crypto exchange that was found to have been plundered of more than $150 million of customer funds after its co-founder Gerald Cotton died mysteriously in 2019. Meta appears to be dropping DM for $200 million. According to the Wall Street Journal, the assets of DM, the meta-backed crypto project plagued by regulatory opposition, have been reportedly sold to the digital asset-friendly bank Silvergate Capital for $200 million. Disclosure, I write a Meta Bulletin newsletter. Silvergate's purchase comes less than a year after it partnered with DM to launch a stable coin

pegged to USD in a last-ish effort to revive the project initially launched under the name Libra in 2019, back when Meta was Facebook. However, as has been the case with many DM stories, the project was never launched. A new bill could be disastrous for crypto. A provision tucked inside the recently proposed America Competes Act could prove disastrous for cryptocurrency, says CoinCenter's executive director Jerry Brito. Essentially, the provision gives the Treasury Secretary, currently Janet Yellen, the power to use special measures to police technology, helping facilitate money laundering. Brito says that using special measures, the Treasury Secretary could make it illegal for financial institutions to transact with foreign

crypto exchanges, minors outside the U.S., and or non-custodial wallets, if they deem such entities to be a primary money laundering concern. Notably, Brito says that the provision would eliminate any public process regarding the implementation of such regulation. The proposed language in the America Competes Act would, and we cannot stress this enough, remove all formal controls, time limits, and public notice requirements from the imposition of these draconian measures, wrote Brito. That being said, Kristen Smith, executive director of the Blockchain Association, reported on Tuesday that her organization has had constructive dialogue and that this is not another infrastructure situation. Her colleague Jake Chravinsky added that he is

optimistic that today's legislative situation will end up fine. The White House is set to issue an executive order on crypto. The Biden administration is planning on releasing a government-wide strategy for digital assets as soon as February. According to Bloomberg, the Biden administration will be publishing its strategy through an executive order that will ask federal agencies, such as the Federal Stability Oversight Council, to determine the risks and opportunities associated with cryptocurrencies via a report due in the second half of 2022. The article, citing people familiar with the matter, says officials have held multiple meetings on the plan. The administration is also looking into the possibility of a central bank digital currency.

FTX U.S. raises nearly half a billion dollars. FtX U.S., the U.S.-based affiliate of Sam Bankman-Frieds cryptocurrency Exchange FTCS announced its first external raise of money, bringing in $400 million at a valuation of $8 billion. The exchange, reports CNBC, saw daily volume grow sevenfold in 2021, peaking at more than $800 million in November. Additionally, the company saw more than $67 billion in spot volume last year for crypto trades and now has around 1.2 million registered users in total. Speaking of massive races, Ripple, the company behind XRP, saw its valuation reach $15 billion this week after the company finished a buyback of shares from its C-C investors back in December

2019. One investor, Tetragone, had sued Ripple after the Securities and Exchange Commission charged Ripple and two executives with conducting an unregistered securities offering. Consensus, the Joe Lubin-led Ethereum Development Company, may raise a large funding round. The Block reports that the firm is in talks with potential backers at a post-money valuation of $7 billion, which would double its latest valuation from November 2021. On Thursday, Fireblocks, a crypto infrastructure firm, also received a huge valuation, bringing in $550 million in a Series E valuing the company at $8 million. The SEC doesn't like Microstrategies Bitcoin accounting process.

In a letter released last Friday, the Securities and Exchange Commission rejected Micro Strategies Bitcoin accounting method found in an earnings report. The SEC's letter dated December 3rd, went as 5.5. follows and refers to a standard known as generally accepted accounting principles. We object to your adjustment for Bitcoin impairment charges in your non-gap measures. Please revise to remove this adjustment in future filings. This came in response to Microstrategy reporting non-gap numbers for its Bitcoin holdings in its previous filings.

As currently constituted, companies are required to adjust the value of Bitcoin on their balance sheets when the price falls. In accounting language, this is called impairments. However, when the price of Bitcoin rises, the company cannot readjust the price of Bitcoin on its balance sheet. This quirk in Gap accounting essentially forces companies with Bitcoin on their balance sheets to record their Bitcoin holdings at the price it paid for or lower. While this is only a paper quirk as one could look up the amount of a company's Bitcoin holdings and the current value of Bitcoin, recording Bitcoin as an impairment affects the net worth of a company and therefore its value to investors. This is most likely why Micro Strategy reported non-gap numbers in its earlier filings.

It wanted to make its Bitcoin holdings look better. However, Micro Strategy has agreed to stop its non-gap reporting. Micro Strategy reported holding $124,391 Bitcoin or $4.5 billion worth on December 30, 2021. Salana's spotty performance irks high-profile traders. While the crypto markets underwent a heavy dip last week, weekend, Solana experienced high levels of network congestion due to excessive duplicate transactions. According to the block, Spotty network performance led to many Defi users being unable to top up accounts before they were liquidated, and many large traders were forced to agree on prices off-chain

to settle at a later date. The issue was discussed at length on the chopping block, where Dragonfly Capital Managing Partner Haseeb Qureshi explained that Salana's lack of a fee market was the root cause of its problems. Anatoly Yakuvanco, the founder of Solana, also chimed in on the network's performance issues, pointing out that liquidator bots were spamming the network with 2 million packets per second. According to Yagovanco, the engineers plan to issue a solution in the next 4 to 5 weeks in version 1.9 of Solana. NFTs surge while crypto market struggles. While funchable tokens like Bitcoin and Ethereum have been slumping in a period of

of macro uncertainty regarding the Fed and interest rates, volume and floor prices for non-fungible tokens have risen. For example, data from the block shows that NFT marketplace volume surpassed $5.5 billion for January, marking an all-time high by more than $2 billion. Furthermore, floor prices for Bored Ape Yacht Club and Cool Cats have seen their price floors hit an all-time high in the past seven days. Speaking of Board Ape Yacht Club, the 10,000-piece cartoon ape collection had quite a week.

On Monday, Jimmy Fallon had Paris Hilton on the wildly popular Tonight Show, where they both compared their NFTs from the Board Ape Yaw collection on live TV. In a sign the NFTs have truly gone mainstream, Fallon then tweeted the clip of him and Paris with the caption, W-A-G-M-I. Actress Gwyneth Paltrow also bought into the board

apiop club this week via Moon Pay, an NFT marketplace that has helped many celebrities join the NFT world. In related news, NFTs were also featured in an open letter penned by YouTube CEO Susan Wojutski this week. The past year in the world of crypto, non-fungible tokens or NFTs, and even decentralized autonomous organizations or DAWS, have highlighted a previously unimaginable opportunity to grow the connection between creators and their fans, Wojutski wrote. Reddit, a social media network,

network worth $10 billion is already testing a feature to allow users to connect NFTs to their profile pictures on the platform, much like Twitter. Two Ethereum products to keep an eye on. Ethereum saw two interesting product launches this week. As covered on Tuesday's Unchained, Syndicate, a Dow-focused company, launched a new product called Web3 Investment Dow's. The new product will allow any Ethereum user to spin up an investment Dow in seconds for just the cost of gas.

Additionally, the EtherScan team released a new product called BlockScan chat that allows Ethereum addresses to direct message each other. Time for fun bits. McDonald's sends Grimmus coin flying. When a new meme coin starts skyrocketing in price, it's usually best to check out Elon Musk's Twitter account. And indeed, on Tuesday, Elon tweeted that McDonald's should accept Doge as payment. McDonald's responded saying, that it would accept Doge if Tesla accepted Grimmus coin, then non-existent currency referring to the McDonald's cartoon character.

Dozens of Grimus coins popped up on blockchains. According to DeCrypt, one such Grimmus coin on Binance smart chain saw its price jump 120,000% in 24 hours. Ethereum 2.0 is no more. The terms ETH1 and ETH2 are being phased out. Instead, Ethereum 1.0 will now be referred to, to as the execution layer, and Ethereum 2.0, the consensus layer. The Ethereum Foundation wrote in a blog post,

one major problem with the ETH2 branding is that it creates a broken mental model for new users of Ethereum. They intuitively think that ETH1 comes first and ETH2 comes after, or that ETH1 ceases to exist once ETH2 exists. Neither of these is true. By removing ETH2 terminology, we save all future users from navigating this confusing mental model. Thanks so much for joining us today. To learn more about Erica and her campaign, check out the show notes for this episode.

Unchained is produced by me, Laura Shin, with help from Anthony Yun, Daniel Ness, Mark Murdoch, Shashonk, and CLK transcription. Thanks for listening.