Also, Molly Jane Zuckerman on the rise of buzzwords in crypto... and why they really need to stop.
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Editor's Note: Crypto Buzzwords Galore
Molly Jane Zuckerman writes...
Last week while strolling through Twitter, I came across this tweet: Samsung is bringing "The Tonight Show with Jimmy Fallon" to Fortnite as it looks to connect with Gen Z in its latest move into the metaverse.
How many people in the world can understand this tweet? Sure, Samsung is a household name, and so is Jimmy Fallon. Fortnite is a popular game, and Gen Z is the current generation, and then the metaverse is… Mark Zuckerberg's new company name, a sci-fi term coined by Neal Stephenson, a new crypto term encompassing gaming, tokens and blockchain? Put all of those terms into one sentence, and you get the kind of silly, almost nonsensical tweet like the one above.
When crypto was still a very nascent space, buzzwords played a huge role. Companies could see their stock shoot up if they added "blockchain" to their tickers — remember back in 2017 when an iced tea company renamed themselves to Long Blockchain Corp and saw a share price increase of 500%? They were subsequently delisted by NASDAQ.
Nowadays, the blockchain hype has been replaced with metaverse or decentralized or Web3. An acquaintance the other day showed me an NFT project on OpenSea excitedly, wanting my opinion on its idea to tokenize movie production. The tagline on the project notes that their NFT studio is "focused on bridging Web3 and mainstream media [and gives] you access and opportunity." Access and opportunity to what?
Buzzwords aren't going to go away — they're used in every industry to promote new products and ideas, and they will continue to change from year to year as they outgrow their hype.
But in crypto, which is already often fighting for its good reputation, it would be nice to see a shift away from projects (and traditional companies wanting a piece of the hype) that claim to "empower communities/bank the unbanked and to build/BUIDL a Web 3/NFT/metaverse to decentralize finance/support HODLers" and more with very specific, non-buzzy business plans. Strip away the adjectives and the metaverse, and then see what's left.
Whiplash after latest Fed rate hike 📈
"Number go up" — but not Bitcoin's. The Federal Reserve has increased interest rates by 0.75 percentage points for the third time in a row. This takes the base rate to its highest level in almost 15 years… before BTC had even launched. Bitcoin traded like a yo-yo in the hours before and after the announcement — bouncing between $18,900 and $19,700. Fed chairman Jerome Powell has admitted there is no "painless" way to bring inflation under control. Overall, the big number to remember is this: the Federal Reserve's target rate for inflation is 2% — but the Consumer Price Index rose 8.2% year on year in August. There are no signs that the Fed intends to slow down the pace of rate hikes, meaning things will likely get worse before they get better.
Jesse Powell steps down as Kraken CEO 😱
Jesse Powell is stepping down as CEO of Kraken — 11 years after he founded the exchange. He will become the company's first president, with long-serving COO Dave Ripley succeeding him as chief executive. All of this comes at a turbulent time for the crypto world, with fears that the bear market will worsen as the Fed continues to ratchet up interest rates. Powell says he wants to spend more time on "the company's products, user experience and broader industry advocacy." Powell's approach has attracted scrutiny over the years. Back in June, The New York Times revealed he had queried the use of preferred pronouns — and said that questions about women's intelligence were "not as settled as one might have thought."
'Crypto King' owes $35m to investors 😬
A Canadian man who described himself as a "Crypto King" allegedly owes $35 million to investors — but just $2 million has been recovered so far. Aiden Pleterski reportedly led a lavish lifestyle — and as well as owning 11 premium cars, he rented a plush waterfront home for $45,000 a month. But this is little comfort to more than 150 investors who handed over $20 million to his company — wooed by the promise of 7% returns on their investments. Pleterski is now 23 years old and bankrupt. He claims all of the money was lost in a series of bad trades and margin calls — but is yet to provide proof. He allegedly attempted to defend himself by saying he was just a "20-something-year-old kid."
