Decent Recap: Su Zhu Arrested, $OX Rekt, Blackrock Delayed

Looks like our next series of banger Su Zhu tweets are going to come from inside of a jail cell. Su was picked up this morning at the airport trying to leave Singapore and will spend 4 months in prison along with his co-founder Kyle Davies, who is nowhere to be found.

We can only hope this leads to the generational crypto bottom as predicted.

On a more serious note, it makes sense looking from the outside looking in why there has been so little new capital coming in to the space the past couple of years. All the people with the biggest bank rolls and biggest voices from the last cycle are getting arrested.

For an institutional investor in the space, there are real questions about what exactly was built last cycle and how much of it remains today, let alone which pieces actually capture value.

One piece that does capture value in most market cycles in crypto is the exchange, especially those that offer derivatives services off-shore. The 3AC team has been on the run the past few months but they have not been quiet in that time. They have been busy building OPNX, the Open Exchange, which is a derivatives platform for shitcoins.

Notable here is that their native shitcoin $OX plummeted over 50% immediately after news of the arrest broke.

The hope here is that the arrest and punishment of these bad actors is what the space needs to cleanse itself of the old and start a new flow of money, attention and interest back in. There are already clear signs of big institutional players waiting to enter the space.

Couple more arrests then up only.

Pudgy Penguins = Beanie Babies = Good?

Congratulations to all Pudgy Penguins holders, your IP is now up for sale to everyone in America shopping at a Walmart. I’m not sure if this is intentional, but NFTs have now come full circle and are literally Beanie Babies once again.

I don’t know if the NFT bull market will ever come back but I don’t know that this was the outcome everyone envisioned at the peak. To be fair the Pudgies are the only ones doing anything at all, and getting an ambitious goal like this across the finish line is no small task.

I do question though how much this type of brand recognition and even baseline revenue impact the floor price of the NFT. And whether the floor price even matters to the team and founders anymore.

If these teams have sustainable revenue coming in from sales of retail merchandise or in-person events, or simply more venture capital, maybe the floor price is the wrong metric to be optimizing for. More so as royalties continue on their path to absolute 0.

Blackrock Decision Delayed

No real surprise here as the SEC delays its decision on a spot Bitcoin ETF to the final possible deadline, which is in Q1 2024 for all of the recent filings.

This seems to have been priced in - just like everything else - as Bitcoin continues to operate like a stablecoin around the $26k mark.

Sisyphus is a rugger? And $PEPE deployer?

Wild thread. No idea if true. DYOR.