WallStreetBets Reddit Spinoff Is Launching Its Own Cryptocurrency

In brief

  • SatoshiStreetBets is the cryptocurrency equivalent of the WallStreetBets subreddit.
  • A group moderator announced the group is creating its own token.
  • People can receive the token via airdrop, liquidity mining, or forum participation.

Subreddit group SatoshiStreetBets, which advertises itself as “the crypto version of WallStreetBets,” is getting ready to launch its own cryptocurrency token to members.

SatoshiSwap (SAS) tokens, which will serve as utility governance tokens for the group, will go to members based on upvotes for their reddit posts. It will also be airdropped to users of the decentralized exchanges Sushiswap and Uniswap and be distributed to liquidity providers, according to a reddit post today.

The token launch is currently planned for a yet-to-be-determined date in February.

In the post, SatoshiStreetBets moderator u/little-eagle provided several reasons for making a token, one of which is “YOLO” (you only live once).

“The decentralized exchange (dex) market is shaping up to be wildly successful and lucrative,” explained Little Eagle. “Yet there are glaring problems which need to be addressed—high gas fees, scalability issues, lack of interoperability, lack of margin trading etc. We can make a difference and offer our own fresh perspectives.”

Moreover, Little Eagle wrote, “As a community of traders, we’re always looking for a token to unite us, that we can all rally behind and throw all our support towards.”

SatoshiStreetBets was created in February 2020 as a spinoff of WallStreetBets, the subreddit that helped pump the price of GameStop up to dizzying heights last month.

But, like its predecessor, it’s only gotten serious traction relatively recently. In an email to Decrypt, a person identifying themselves as the founder of the SatoshiStreetBets subreddit said, “Our userbase has exploded to 300k users from 15k users in just a couple of weeks.” As of publication, it’s up to 313,000 members, and the Twitter account for the upcoming token has over 1,200 followers after tweeting for the first time today.

The subreddit is home to the usual assortment of cryptocurrency memes and bullish projections about tokens such as Cardano (ADA). Mainstream media entities started covering the group during Dogecoin‘s recent price surge from under a penny to an all-time high above $0.08. According to the New York Post, subreddit members were trying to push the price to an astronomical $10.

Imagine how hard they’ll rally for their own currency.


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Altcoin Daily Predicts 8 Crypto Assets Are Ready To Explode Amid Altcoin Mania

Altcoin Daily is naming eight coins that could be on the cusp of a break out amid altcoin mania.

Trader and influencer Austin Arnold first spotlights the decentralized exchange (DEX) Uniswap (UNI) as a top project on his radar.

He highlights St. Louis federal reserve’s recent research report on the number one DEX by volume, asserting that attention from a branch of the prestigious agency could send the UNI token running even further past $20.

“The fact that a branch of the fed reserve is putting out reports on ETH and Uniswap and decentralized finance (DeFi) and DEXes – that’s a pretty big deal right.”

Currently the UNI token is sitting at number 15 by market cap and is trading at around $21 at time of writing.

Next on Arnold’s list is DeFi project Curve Finance (CRV). Altcoin Daily highlights that Curve is working to integrate with Equilibrium’s Polkadot parachain and aims to minimize slippage risks on DEXes when trading tokenized versions of coins such as wrapped Bitcoin (WBTC).

“If you’re bullish on DeFi, or more specifically DEXes, pay attention to the ones that are building and making moves like Curve, like Uniswap.”

Next up is Plasm Network (PLM), which just raised $2.4 million in a Binance Labs funding round. The project seeks to build a bridge between the competing ETH and Polkadot networks.

The fourth and fifth picks are Proof of History (PoH) blockchain Solana (SOL) and the rebranded Polygon (MATIC).

Polygon, formerly Matic, is pivoting to help ETH compete with rival Polkadot in its fight to remain the number one smart contract platform. Since the rebranding, MATIC has nearly doubled in price, shooting all the way up to a high of $0.14.

Sixth on the list is a project the team has spotlighted before, Andre Cronje’s Yearn.finance (YFI). Though part of the YFI network was recently hacked, Altcoin Daily points out that the team dipped into their expanded treasury to repay the victims of the $11 million hack, perhaps assuaging some fears about the speculative nature of DeFi.

Blockchain technology solutions firm ConsenSys recently launched an update to Altcoin Daily’s seventh pick, AirSwap (AST), which is aiming to capture a large portion of DEX volume by utilizing request-for-quote (RFQ) mechanisms to help prevent front running and price slippage on transactions.

AST is up roughly 92% on the week and is trading at $0.27. The project has one of the lower market caps of those on Altcoin Daily’s list, sitting at around $47 million at time of writing.

Finally, the team spotlights layer 2 scaling solution LoopRing (LRC), which just reached 40,000 daily transactions on its network. Altcoin Daily tells their subscribers that the project and other layer 2s like it will prove instrumental as more and more users flock to DeFi and ETH fees skyrocket.

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Wall Street Banks Gradually Being Open Towards Bitcoin

Contrary to previous scepticism about bitcoin expressed by Wall Street banks, recent developments indicate that traditional financial institutions are more open-minded about the largest crypto asset, with some considering offering bitcoin services. 

JPMorgan Could Offer Bitcoin Trading Upon Clients Demand

In an interview with CNBC, Daniel Pinto, co-president and chief operating officer of JP Morgan, said that the banking giant was looking to offer bitcoin trading. However, the decision would be influenced by high demand from the bank’s clients for the crypto asset.

In a town hall meeting with thousands of sales personnel and traders around the world, JPMorgan’s employees asked when the bank was going to get involved in bitcoin. In response to the question, Pinto was reportedly open-minded towards the flagshop crypto.

Speaking with CNBC, the JPMorgan executive said that it was only a matter of time before there was a demand for BTC from its clients. According to Pinto:

“If over time an asset class develops that is going to be used by different asset managers and investors, we will have to be involved. The demand isn’t there yet, but I’m sure it will be at some point.”

Furthermore, the bank’s co-president mentioned BlackRock’s bitcoin move back in January, which was proof of a broader adoption. As reported by BTCManager, a pair of SEC filings by the world’s largest asset manager suggested that BlackRock was looking to invest in Bitcoin futures through two of its funds.

The JPMorgan executive also added that if bitcoin became regulated, trades would involve vetted clients along with regulated exchanges, including Coinbase. Pinto’s comments contrast with earlier sentiments shared by the bank’s CEO, Jamie Dimon, who called bitcoin a fraud.

Apart from JPMorgan, more Wall Street Banks are beginning to look into bitcoin. Another investment banking behemoth held a private meeting with the CEO of crypto company Galaxy Digital, Michael Novogratz, for its clients and employees. Recently, BNY Mellon, America’s oldest bank, announced plans to begin offering crypto custodial services for its clients.

More Institutional Investors Purchase Bitcoin

Meanwhile, bitcoin continues to see increased adoption from institutional investors as the number one crypto asset continues to gain more popularity. Some companies are already considering making BTC a payment method.

Electric vehicle manufacturer Tesla invested $1.5 billion into bitcoin, with plans to start accepting bitcoin as a payment method for its products. Also, credit card giant Mastercard which only partnered with cryptocurrency firms to issue crypto cards, revealed that it was planning on supporting some crypto assets on its network. With this plan, Mastercard’s merchants would be able to receive bitcoin directly.

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5 Takeaways From Chia Network’s New White Paper

It will take 21 years for the rest of the world to mine as much of the Chia (XCH) cryptocurrency as the company behind it will have on the day its mainnet launches next month.

“We believe that chia, a new digital currency built on our new blockchain with radically different features and security than other digital currencies, will ultimately deliver on the promises of ‘magic internet money,’” the company argues in its first version of a new business white paper released on Wednesday.

The size of the pre-mine is one notable revelation from the paper, in which Chia also announced its mainnet will launch on March 17 or earlier. Farmers (the network’s equivalent of bitcoin miners) will be able to begin farming immediately. The network’s cache of pre-mined XCH, however, will be governed using a traditional format: Chia plans to take its company public.

Chia was founded by Bram Cohen, the creator of BitTorrent, one of the most influential protocols on the internet. The company he founded was later sold to the Tron Foundation in 2018.

Chia first announced its intention to go public via the U.S. Securities and Exchange Commission’s so-called mini-IPO in 2018, but the decentralized web startup Blockstack won out as the pioneer there, raising $23 million under Regulation A+ in 2019. Last year, Chia raised a fresh round of $5 million in funding led by Slow Ventures.

Plans have shifted slightly since then, with the company now planning to, one way or another, take its offering to a national stock exchange where it can be traded by the public and the company will be subject to the same transparency as any publicly traded company.

One of Chia’s early backers was AngelList co-founder Naval Ravikant, who told CoinDesk in an email, “I backed Chia because I’ve known Bram for a long time and he is one of the greatest living protocol designers (BitTorrent), right up there with Satoshi and Vitalik.”

Chia has previously articulated its technical vision, a consensus model called Proof of Space and Time (PoST). This new paper articulates Chia’s vision for sustainability.

Chia’s president and COO, Gene Hoffman, told CoinDesk that the public should control more XCH than the company much earlier than 21 years and that the token is not the critical component of the consensus model anyway. 

“Unlike most projects, coin ownership has nothing to do with the protocol – this is not Proof of Stake,” Hoffman explained via email. “The chart of ownership percentages of coins in the Whitepaper is a worst case as we expect to use shareholder distribution to migrate XCH out to a broad public shareholder base.”

CoinDesk went through the new Chia white paper with a fine-tooth comb.

Here are five key takeaways from Chia’s new roadmap.

1. The blockchain is designed to make home mining feasible again

PoST relies on loading up unused computer storage space with strings of digits that farmers (what Chia calls blockchain validators) allow to be loaded on their computers. The more space, the more strings, the greater their chance of winning a block.

“It is super simple. Just download the Mac or Windows version and double click,” Hoffman told CoinDesk. “I’m pretty sure this will be the easiest cryptocurrency to validate for normal people ever.”

Other blockchains take a similar approach, such as Spacemesh. And Filecoin also seeks to capitalize on unused storage space.

In its testnet phases, Chia has reached as many as 1,700 nodes already, which is very likely to indicate something about interest in running a node when mainnet launches next month. Its public chat channel on Keybase has almost 4,000 people in it.

2. Chia favors predictable, continuous inflation over a hard cap

Bitcoin maxis fixate on the hard cap, but Chia argues that it’s not a fixed amount that matters so much as a predictable amount. Chia has no cap, but it’s also not going to surprise holders with unanticipated emissions.

“Being able to directly calculate a shared expectation of the total supply at any given time gives much the same financial and peace of mind benefit,” the white paper argues.

As noted, the company will start the mainnet with 21 million XCH, a nod to bitcoin, and farmers can start earning it right away. While it will take 21 years for the supply to double via farming, Hoffman knows that it will be very close in only six years. Then emissions will slow down considerably under the halving schedule.

By then, it’s likely that the company will have sold or airdropped a considerable amount of XCH.

3. Plans to embrace regulators, particularly by leading with a company that has public reporting requirements

“We have seen the scams and farces that have come before our project in this space and we will instead embrace the regulators,” the white paper states. “It should not be controversial that investors deserve protection through public disclosure and certainly the public shouldn’t be sold investments without that legally required transparency.”

By going with a public listing, Chia will essentially allow backers to treat its equity as an exchange-traded fund (ETF) for the XCH cryptocurrency. That’s because the company’s chief asset will be a considerable pre-mine (or pre-farm, in Chia lingo) of 21 million XCH that will be held for the company and is slated to be used for advancing the network.

“It’s owned by the company and subject to significant corporate controls that will only get more teeth as and when we go public,” Hoffman said. The provisions the company is committed to require it to only use its stash of XCH in ways that benefit XCH holders.

“We can use the pre-farm to raise capital that only dilutes the shareholders and not the farmers,” Hoffman noted.

4. The Chia blockchain has lots of native features that should make familiar crypto applications easier to trust and build

Chia comes with a number of features built in from the get-go that may increase trust and safety for users.

Here are a few described in the white paper that jumped out.

  • Clawback escrow: “Withdrawal clawback escrow adds a time period in which the sender can claw back the funds after the initial transfer moves onto the blockchain.”
  • Slow paper wallet: “Slow paper wallets allow you to store a smart transaction that’s capable of starting a time delayed process to recover your funds in your hot wallet but it is not a duplicate of your private key.”
  • Colored coins: Ethereum’s ERC-20 coins are what colored coins were back when they were still a concept. “Chia coloured coins can be used to create ephemeral value and thus applications on the Chia blockchain don’t generally require flash loans. This has been one of the achilles heels of DeFi on Ethereum.”

Flash loans have been the key to attacks on decentralized finance projects such as bZx, Harvest and Yearn Finance.

5. Chia is skeptical about proof-of-stake’s security against nation-states and other threats

“Their assumptions are inferior as they tend to cause centralization and are not as robust as Nakamoto consensus under international geopolitical pressure,” the white paper says of proof-of-stake (PoS) blockchains (after dismissing private, permissioned blockchains out of hand).

The problem with proof-of-work (PoW), Chia contends, is that it burns too much energy. Nevertheless, Chia also writes in the new white paper that its technology complements bitcoin, the largest PoW network.

But PoS, which Ethereum is moving toward, is another matter. Chia does not think the safety of this model is adequate. The white paper contends, “A considerable amount of effort is being expended attempting to solve what we believe are intractable problems with Proof of Stake as an alternate strategy to use less electricity securing public blockchains.”

It cites three key issues: centralization, where tokens tend to concentrate among a few giant holders; long-range attacks, where the history of the chain can be revised more easily than in PoW because there is no, well, work (to speak of) in PoS; and the inability of PoS networks to recover from a 51% attack.

It remains to be seen until there is real value on the line, but the hope is that PoST can lower the energy footprint of “magic internet money” without sacrificing the censorship resistance and decentralization that makes cryptocurrency so appealing to the cypherpunk-inclined and those dealing with unreliable nation-state currencies.

That’s the long term.

In the immediate term, Chia aims to scale what’s worked about crypto so far and build on it in a way that’s accessible for everyone. The white paper states:

“Someday we all might buy coffee in San Francisco with chia, but for now we think banks and governments and De-Fi collectives will use it to build new financial technology, solve cross border payments, and invent a new future that doesn’t require trusting so many middle men.”



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Bitcoin bulls eye $50K as data show BTC’s liquid supply in steady decline

On Feb. 12 Bitcoin (BTC) price hit a new all-time high at $48,985 before pulling back to the $46,000 level. 

A quick glance at the 4-hour chart shows the top-ranked cryptocurrency trading in what appears to be a brief phase of consolidation but BTC is still maintaining its bullish momentum through a pattern of higher highs and higher lows.

If BTC can maintain its current pace and structure, a move to the $50,000 level could possibly occur before the weekend ends.

BTC/USDT 4-hour chart. Source: TradingView

A report released by analysts at Decentrader shows that as Bitcoin’s liquid supply has been decreasing, demand for the top cryptocurrency has been increasing as the number of BTC that have not moved on-chain for an extended period of time also rises.

Bitcoin liquid supply. Source: Glassnode

As can be seen on the chart above, BTC currently has a liquid supply of roughly four million coins and the figure has been steadily decreasing since June 2020 as whales and institutional investors increase their exposure to this nascent asset class.

Further evidence of the growth of big-money players can be found by looking at the surge in wallets holding more than 1000 BTC.

Wallets holding at least 1000 BTC vs BTC price. Source: Decentrader

As the number of large wallets grows, the number of smaller wallets has remained flat or decreased, indicating that “larger players are scooping up bitcoin off smaller players.”

PayPal delves deeper into cryptocurrency

Additional bullish news for the cryptocurrency sector came as PayPal announced that it plans to extend its crypto services to residents of the United Kingdom.

This marks the first time users outside of the U.S. will be able to purchase crypto through the platform which should be available on the PayPal and Venmo apps by the end of Q2 2021.

In an effort to keep up with the likes of PayPal and the Cash App, Apple Pay has unveiled a new partnership with BitPay that will allow Apple Wallet users to use their BitPay card to make purchases.

It has also emerged that Grayscale Investments may soon bring a new level of exposure to decentralized finance as a newly filed corporate registration in the State of Delaware shows that the asset manager is considering Yearn Finance as a potential future offering.

Choppy trading sets the tone in traditional markets

Traditional markets faced early pressure on Friday following the Feb.11 announcement that federal regulators have launched probes into Robinhood and Reddit for signs of market manipulation related to the recent wild moves seen in stocks like GameStop and AMC.

After weathering the early downturn, all three major indices managed to climb higher and finish the day in the positive with the S&P 500 and NASDAQ closing out the session at record levels, up 0.47% and 0.50% respectively. The Dow also managed to squeeze out a positive gain of 0.09%.

The wider cryptocurrency market continued its bullish upsurge as multiple projects saw double-digit gains and new all-time highs.

Daily cryptocurrency market performance. Source: Coin360

Ether (ETH) ventured deeper into uncharted territory on Friday by setting and set a new all-time high at $1,863, while Polkadot (DOT) was the best performing top-10 coin, experiencing an increase of 21% overnight for a new high at 29.52.

Other notable performers include the pure proof-of-stake protocol Algorand (ALGO), which increased 38% for a 2021 high at $1.84, and Tezos (XTZ), which saw its price increase 23% for a new record high of $5.41.

The overall cryptocurrency market cap now stands at $1.48 trillion and Bitcoin’s dominance rate is 60.4%.