Todayโs announcement of the first fixed vs floating CESRโข staking rate swap is a very important milestone in bringing next generation fixed income products to global financial markets. ๐งต
I was on the trading floor at Lehman when we went bankrupt. Some reflections and lessons learned as we digest the FTX insolvency. The similarities are eerily similar.๐งต
12/And for those of us who are sick and tired of CeFi/Tradfi blow ups including Lehman, Bear Stearns, FTX, Archegos, 3AC, Celsius, MF Global, LTCM, Peregrine....
#DeFi
is the solution.
The NFA approved
@Coinbase
Financial Markets as a registered Futures Commission Merchant (FCM). As someone who previously led one of the largest FCMs in the world, this is why it is a big deal:
11/ For most of the
@FTX_Official
employees, we know you had nothing to do with this. Stay strong. This will pass. Look to the future, and take care of one another. The promise of
#web3
is out there, and I look forward to watching you build it.
1/The cult of Dick Fuld pervaded the building. Employees were encouraged to blindly follow him. Questioning him was sacrilege as โDick knew bestโ. Lehman was tightly controlled by a handful of folks at the very top.
4/When we went insolvent, clients called screaming โWhere is my fโing money?โ They didnโt realize that it was no longer their moneyโit was now in the hands of the estate. When assets arenโt legally segregated, thatโs what happens.
7/During periods of crisis, the best relationships are forged. And relationships matter. I had a client who made a $50mm operational error the day we went bankrupt. Reversing it saved his career. He became a loyal future client for years to follow.
8/Many of the Lehman employees were incredibly talented. People like this always land on their feet. Rather than continue to build out linear careers, many found new opportunities, started new businesses and exponentially grew careers. We had a fresh start.
10/Today, we still look after each other and help each other grow careers. That Lehman curse is now a badge of honor. We fought through it. We overcame it.
2/Arrogance was real. When Bear Stearns went down, senior leadership relished in it, posted $2 bills on the walls (it was originally sold to JPM for $2) and assured us that we were fine. โHow could they be so stupid?! This would never happen to us!โ
9/We also had an incredible network. And networks are powerful. As employees found new homes, we had colleagues resurface everywhere across finance and beyond. The shared trauma of Lehman created the strongest of bonds.
3/The value destruction was severe. Some employees doubled down on Lehman stock as it cratered as Lehman would never go down in flames. This was unimaginable.
5/The employees were completely left in the dark. There was no transparency. No word. No leadership. Just a big, black void. Confidence was shaken and fear ruled. The future was uncertain.
I cannot stress this enough. Failure to adopt the direct model as proposed by โฆ
@SBF_FTX
โฉ and โฆ
@FTX_Official
โฉ will suppress the responsible innovation that is so needed in the U.S. Without tools to manage risk, US markets will be left behind.
On December 23, 2004, my HMMWV was hit by an IED while returning from a humanitarian mission to deliver aid to local civilians in AR Ramadi, Iraq, after a terrorist attack. Every year on this day, I pick up the shrapnel that nearly took my life and think about who I am, what Iโฆ
Wow; I just left The
@BlackRock
โฉ Digital Asset Summit. This is a company that is very excited about $BTC, $ETH, stablecoins and yes, tokenization. From quants explaining โblissโ probability modeling to human rights activists discussing the efficacy of cryptoโvery solid event.
It was a difficult year in crypto for sure, but Iโve seen far worse. On this day in 2004, this piece of shrapnel nearly took my life. So every year, I pick it up, hold it in my hand and reflect. Hereโs my story ๐งต:
Treasury recently released a risk assessment of DeFi. As a veteran of war, Iโve had far too many friends killed by terrorists. Iโve been shot at, RPGโd and blown up by their IEDs. So, Iโm supportive of policies that stop terrorists from being funded. Iโm also a big fan of DeFi.๐งต
You want to know the killer use case for tokenized assets? Collateral. A clearinghouse that transitions to tokenized collateral can keep pace with 24/7 markets, reduce systemic risk, enhance capital efficiency, and make markets more accessible. There are no tech moatsโitโs aโฆ
As a combat veteran, itโs excruciating to see crypto accused of hurting national security, when in fact the opposite holds true. And the truth is clearโthe transparency delivered through blockchain technology makes it an awful technology for illicit finance. Please, letโs focusโฆ
So the banks have pivoted to private, permissioned DLTs, but their biggest client,
@BlackRock
, is tokenizing assets on Ethereum. I think we know how this story will end.
There has been a lot of discussion about the future of $ETH recently. The โultrasound moneyโ narrative has been challenged and some pundits say itโs a chain thatโs โcaught in the middleโ between $BTCโs digital gold and high TPS chains like $SOL (Yes, there is exciting innovationโฆ
Terrorists use all types of technology. I know because I was in the receiving end of Al Qaeda attacks for 9 bloody months in Ar Ramadi, Iraq from 2004-2005 (well before blockchain technology was invented.) Terrorists use:
โ mobile phones
โ the internet
โ cars
โ garage doorโฆ
Mark my words. After the $BTC ETF is approved, traditional market players will pivot their focus to $ETH. But, theyโll soon realize that the best $ETH products will offer total return ($ETH + staking). Thatโs why indices like $ETXTR will be so important.
Happening now. โฆ
@HesterPeirce
โฉ speaking with โฆ
@NYcryptolawyer
โฉ at โฆ
@Penn
โฉ. โStaking is something weโve been aware ofโฆthis is arbitrary timingโฆthere is a better way.โ
One step closer to tokenization of FX markets. Designed correctly, this will lead to a more efficient market with less settlement/Herstatt risk. Congrats to the
@avax
and
@circle
teams.
7/So, enter Coinbase. They now have an approved, compliant FCM and they understand the nuances of crypto markets. Itโs an important step forward in cultivating deep, liquid derivative markets---which are very much needed. This should be very good for Coinbase, and excellent forโฆ
1/The recent approval of the $ETH futures ETF coupled with legacy $ETH futures helps to solidify it as a commodity under U.S. law--leaving $ETH as one of the few tokens with this degree of regulatory clarity.
I just can't do it. I can't call tokenized financial products "RWAs". If you ever worked in a bank, RWA is too triggering. And trust me, RWA is awful for any banker trying to do anything crypto--just look at the counterparty risk weighting. Oh, btw, crypto assets are indeed real.
It was an honor to host
@APompliano
on the
@VIDABWF
#podcast
series. Pomp is one of the most prominent
#veterans
in
#web3
and his insights were profound. This is a must see for for veterans and spouses interested in an exciting new career in
#crypto
.
I am humbled to be named to the
@CFTC
โs Global Markets Advisory Committee (GMAC). It is an honor for me to represent
@coinfund_io
and our portfolio companies as the first cryptonative buy side member of this committee in its history. ๐งต
So, I needed to transfer some money into my sonโs new bank account (which literally took 3 weeks to open). I opened up my app. His question, โDad, whatโs the gas fee?โ
As you could imagine, a long explanation followed about all the hidden โgasโ fees in traditional bankingโฆ
Seventeen years ago today, I lost one of my best friends, LT (SEAL) Mike McGreevy during combat operations in Afghanistan. I think about you every day, Groove. Fair winds and following seas, my friend.
#NeverForgotten
3/While this may be the case, itโs important to note that these same, illicit actors often transact using $USD cash, and make ample use of the internet, itself. While we havenโt made either of these illegal (yet), people and entities that violate laws should be held accountable.
Do you want to know the killer tradfi use case for zero knowledge tech? Credit. Lenders need to understand the credit worthiness of borrowers, but borrows deserve privacy across their holdings. Bad things happen if 1) borrowers misrepresent their assets or 2) confidentialโฆ
I am honored to serve on the
@CFTC
Global Markets Advisory Committee and its Digital Asset Markets Subcommittee because I believe that constructive engagement is the best way to achieve principles-based outcomes. Trust me, a single word of regulation can translate to billions ofโฆ
Taking The Hillโฆwith fellow military veterans and national security professionals representing the crypto industry with the โฆ
@BlockchainAssn
โฉ. Iโll be speaking about this:
3/After the $BTC ETF is approved, traditional investor focus will shift to $ETH. But, an $ETH spot ETF will not be exciting until it can deliver total return (ETH + Staking Yield). This will be incredibly difficult in the context of bonding/unbonding and regulatory liquidityโฆ
@CampbellJAustin
Iโm former military from this country. Maybe Iโm naive, but Iโm not ready to give up. I didnโt get shot at and blown up to come home to a country that turns its back on innovation that actually stands for its core principles. Change isnโt easy but Iโm encouraged by the bipartisanโฆ
1/We need your assistance. At
@coinfund_io
we believe that the best regulatory outcomes for our portfolio and the crypto industry will come about through regulatory engagement. We are honored to serve on the
@CFTC
Global Markets Advisory Committee and its Digital Asset Marketsโฆ
Guess what? The crypto session is standing room only again at โฆ
@FIAconnect
โฉ Boca. Great to see โฆ
@Mclader
โฉ representing โฆ
@Uniswap
โฉ and explaining how โself serveโ liquidity across
#defi
will power capital markets into the future.
@coinfund_io
is a highly diverse, leading investment management firm operating in the digital asset/crypto space. It is an honor to join this dynamic team as its President.
CESRโข, the composite ether staking rate, launched in partnership between
@CoinFund
and
@CoinDesk
Indices can now be seen live at ! Why is this so important?๐งต
5/I remain excited about the Ethereum ecosystem and the building thatโs happening. This is a community that has demonstrated an ability to adapt and continuously improve, and letโs remember that itโs not even 10 years old!
Just met with my Digital Asset Markets subcommittee working group on the
@cftc
's global markets advisory committee (GMAC). We will be taking a deep dive on NFTs, Utility Tokens (with additional focus on Governance Tokens) and yes,
#DeFi
. Our goal will be to provide the CFTCโฆ
@balajis
Future wars will be automated. As someone who has fought in a โmanualโ war, Iโm horrified by this. And, you canโt put the genie back in the bottle. Feels like governments need to reinvest in their diplomatic capabilities. The alternative is unconscionable.
Crypto is a global phenomenon, and countries across Asia are not waiting for the U.S. to advance policies of their own. In recent days, weโve seen progress across the region as countries take proactive steps to create digital asset frameworks and enhance customer protections:๐
Today,
@coinfund_io
released a white paper entitled, โBetter Technology, Better System: Ten Policy Suggestions for the Digital Financial System." Here is summary:๐งต
๐งตWhich project has delivered similar airdrop value to holders similar to PROOF collective but hasn't been filling NFT Twitter timelines and generating equal truckloads of FOMO & Cope?
@AkuDreams
.
Here's our rundown on this sleeper hit:
So humbled that
@worldfinance
recognized
@coinfund_io
and
@CoinDesk
Indices for their 2023 Innovation Awards for the Digital Asset Industry. We received this award for launching the first native $ETH staking rate benchmark of its kind, CESR, which promises to unlock imperativeโฆ
Iโve been through war, the Lehman bankruptcy and plenty of other stresses. Times like these are tough, and my heart goes out to all those impacted. Take care of yourself and your team. Dig in, and then get back after it. Strong foundations stand. Innovation and progress continue.
Letโs make sure tokenized collateral is accepted, too. In fact, it should be encouraged. Tokenization can eliminate batch settlement cycles, where risk accumulates at intermediaries and pre-funding increases costs for end users.
Iโm honored to represent
@coinfund_io
, our portcos and partners across the
#crypto
community on this subcommittee. This sort of engagement is important as we seek clarity and principles-based regulation that catalyzes responsible innovation. Thank you
@CFTCpham
and the
@CFTC
.
I was on the trading floor at Lehman Brothers 15 years ago, when it seemed like the world was coming to an end. My portfolio evaporated in front of my eyes. Uncertainty and fear prevailed. Looking backโฆ.it was a pivotal time when learned the most and forged the deepestโฆ
1/ Seven years is a lifetime when it comes to crypto.
@coinfund_io
was founded in 2015 when BTC was around $200. Many of our most impactful investments were in 2015-2017. We are living in a world of opportunity.
1/FCMs form a crucial part of market structure because they are required by the
@CFTC
and serve to intermediate and guaranty the system. In derivatives markets in the US, there are two types of market participants--members and non-members of clearing houses. For those who arenโtโฆ
.
@SECGov
Commissioner Mark Uyeda at
@Yale
โs inaugural Blockchain Conference: โI feel like we are in freshman algerba. You need to show your work. If these are securities, you need to show why.โ Excellent moderating by
@TuongvyLe12
from
@Anchorage
.
@YaleBlockchain
As a member of the
@CFTC
Global Markets Advisory Committee (GMAC) and its Digital Asset Markets Subcommittee, we believe engagement and dialogue followed by clear, consistent and principles-based regulation--that is fully supported and empowered by nuanced and proactiveโฆ
2/The general supply stability delivered through EIP-1559 was a game changer. Ultrasound money or not, the REAL yield delivered to stakers continues to outperform its fiat interest rate peers:
Stablecoins are the 16th largest holder of treasuries and hold more USTs than Norway, South Korea, Saudi Arabia, Germany, The Netherlands, Mexico and the UAE (h/t
@blockfills
). If this isnโt a wake up callโI donโt know what is. We need stablecoin legislation and we need it now.โฆ
4/Staking rate benchmarks are the next unlock. $ETHโs real yield is a powerful thing. To unlock its full potential, we need to build social consensus on standardized benchmarks. Standardized benchmarks unlock composability! The $500 TRILLION interest rate derivative marketโฆ
Thereโs a great crypto and derivatives community in Chicago. Innovation is happening. The legacy derivatives market desperately needs it. Enter
@RealHxro
.
1/I've been thinking about
@SocieteGenerale
's launch of EURCV. Though imperfect, my overall view is that this is positive for the crypto ecosystem. It is a rare case of a bank deploying on a public blockchain at time when private DLT is back in vogue.
If a commodity can become a security, then a security can become a commodity. Whatโs important is that there are clear, observable, and empirical criteria that clearly define the appropriate jurisdiction. That way, founders can just build.
Pretty much every institution I knowโincluding the regulatory onesโhas a resident crypto degen(s). Itโs interesting how we always find each other.