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GM. This is Milk Road, the crypto newsletter that's smoother than your favorite latte.
Here’s what’s fresh today:
- Pump.fun post mortem: the drama behind the hack 🫣
- 5 BIG things to watch this week 👀
- Gasless blockchains and the future of crypto 🗣️
- Grayscale CEO steps down 🍪
Prices as of 9:30AM ET. Click here for our Fear & Greed Index
PUMP.FUN POST MORTEM: THE DRAMA BEHIND THE HACK 🫣
Remember the Pump.fun hack last Thursday evening? Well, we’ve got the inside scoop on all the chaos.
It all revolves around a former employee known as “Stacc” who recently lost his mother, got kicked off the Pump.fun team and then posted this on Twitter:
Yea… This guy publicly admitted to stealing ~$2M. But that’s not all…
He also fired shots at his former bosses by accusing them of not being sympathetic about hisgrief and just being all around bad people.
Then, after receiving a flurry of support from Crypto Twitter, he proceeded to airdrop $SOL tokens to users left and right.
Some even started calling him the Robin Hood of the crypto world—stealing from the rich and airdropping to the masses.
When asked about the hack, he even mentioned that the founders withdrew $2M from the treasury the previous day and suggested they should pay for it themselves.
He then demanded $100k payouts for every non-founder who had ever contributed to Pump.fun…
Even threatening to burn the stolen funds if his demands weren't met—proving he could be both a thief and a pyromaniac in one go!
Legal action against Stacc even made it to the prediction markets so you can bet on it.
This Saturday Stacc was arrested by British law enforcement and is currently in custody.
Apparently, his Instagram posts about visiting a London strip club last week led the cops right to him.
Crazy, right? Let's take a moment to acknowledge that these modern hackers steal and brag about it online as if they have nothing to worry about.
With his arrest, the drama hit pause, the money stayed still, and Stacc has been quieter than a crypto bro in a bear market.
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5 BIG THINGS TO WATCH THIS WEEK 👀
1/ Eyes on Biden veto stamp for SAB 121
SAB 121 is the SEC's guideline requiring banks to hold customers' crypto on their balance sheets.
Why does this matter? If this rule remains, banks might continue to shy away from crypto custody, stalling market growth.
But last week, the House and the Senate voted to overturn the SEC rule and now the decision must face it’s final boss, Mr. Joe Biden.
Now, Joe has already stated that he would Veto any attempt to overturn SAB 121, but that was before a 60-38 vote where his own Majority Leader voted against him…
So, Biden is between a rock and a hard place.
Signing the bill into law would be a slap in the face to Gensler’s rule-making tenure, while vetoing it would contradict all his constituents represented by the House and Senate.
He’s got 7 days to make up his mind.
2/ Gensler to approve ETH ETF?
Gary Gensler, the SEC Chair, is expected to decide on the Ethereum ETF this Thursday.
The word on the street is a big fat “no”... But now, with the Democrats realizing their anti-crypto stance might cost them votes in the upcoming elections, there's a chance the decision could swing.
The decision is expected to drop Thursday. Grab your popcorn!
Do you think it will be approved this week?
A/ Yes
B) No
Hit "reply" and share your answer!
3/ House vote on FIT bill?
The FIT Bill, led by pro-crypto Republicans, is up for a vote on Wed/Thurs.
This bill aims to clarify the roles of the CFTC (commodity futures trading commission) and SEC in regulating digital assets.
AKA the golden question: commodity vs. security…
The FIT Bill represents a bipartisan effort to address the regulatory uncertainty that has plagued the industry.
It’s a pivotal moment for crypto regulation in the US!
Will it pass? Will it flop? We’ll be sure to let you know later this week!
4/ Token unlocks
The vaults are opening, and it's gonna rain tokens. $362M worth of crypto is set to be unlocked this week.
Here’s the scoop:
- $343M worth of $AVAX tokens unlocking tomorrow (2.5% of circ. supply)
- $13.83M worth of $ID tokens unlocking tomorrow (4.3% of circ. supply)
- $4.02M worth of $NYM tokens unlocking on May 27th (3.3% of circ. supply)
Avalanche is a big ecosystem to keep an eye on here!
5/ Macro stuff
This week is jam-packed with economic goodies.
Key events to watch:
- Nvidia reports Q1 2024 earnings – Wednesday: Nvidia is a major player in AI and computational power, which are crucial for blockchain operations and crypto mining.
- Existing Home Sales data – Wednesday: Indicates consumer confidence and economic health, which can influence investor behavior in all markets, including crypto.
- Fed Meeting Minutes – Wednesday: Insights into the Fed's stance on interest rates and inflation, critical factors affecting crypto's appeal as an alternative asset.
- Durable Goods Orders data – Friday: Reflects business investment levels, which can signal economic trends affecting all investments, including crypto.
- 18 other Fed speaker events this week (including Gensler on Thursday)
Big one to watch for is: Positive results from Nvidia can boost sentiment around tech stocks and indirectly affect crypto markets.
Watch for market sentiment, investor confidence, and regulatory signals from these events and how they influence crypto prices and trends.
The economic coaster continues – hold on to your milk!
GASLESS BLOCKCHAINS AND THE FUTURE OF CRYPTO 🗣️
How do blockchains reach their full potential? The answer just might be, going gasless.
LightLink’s gasless blockchain technology could be the game-changer that drives widespread blockchain adoption by eliminating costly transaction fees.
So, we sat down with Roy Hui, the Co-Founder and CEO of LightLink, to discuss the mission of a gasless L2 solution.
Do you want to know what removing the gas would look like?
Listen and learn with your go to platform below. 👇
YouTube | Spotify | Apple Podcasts
BITE-SIZED COOKIES FOR THE ROAD 🍪
Fyde Treasury is a new protocol that combines the best of AI and DeFi, for hands-off investing. The platform’s liquid vaults do most of the heavy lifting, including continuously rebalancing portfolios, automated risk management, and boosting liquidity. Learn more here. *Number of new Bitcoin wallets drops to lowest level since 2018. The 7-day average for fresh Bitcoin addresses cratered to just 275,000 per day - down from 625,000 at the peak hype around Ordinals and ETFs six months ago.
Michael Sonnenshein is stepping down as Grayscale CEO. After overseeing the launch of the first U.S. spot Bitcoin ETFs, he will be replaced by former Goldman Sachs executive Peter Mintzberg on August 15th. The $3 billion Arbitrum DAO overwhelmingly approved an 8-week pilot program to explore mergers and acquisitions. This would mark one of the first major forays into aggressive growth via acquisitions for a decentralized autonomous organization. – DL News
Kraken is considering dropping support for Tether's USDT stablecoin in the European Union. Rival exchange OKX has already clamped down on USDT trading for European users as the EU's stablecoin scrutiny mounts ahead of a 2025 licensing deadline.
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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.
