Bankless ROLLUP: 3AC Meltdown Continued | BlockFi Down Bad | Grayscale Sueing the SEC | Contagion Market?!
Jul 1, 2022
The conversation dives into the fallout from the Three Arrows Capital collapse, examining its impact on major players like BlockFi and the wider crypto market. Rising interest rates and inflation's grip on the economy are scrutinized, linking traditional finance woes to digital currencies. Grayscale's lawsuit against the SEC raises eyebrows on regulatory challenges. The episode also highlights innovative solutions like Juno in crypto banking and delves into MakerDAO's governance turmoil, illuminating the struggle between community ideals and centralized control.
AI Snips
Chapters
Transcript
Episode notes
DeFi vs. CeFi in Downturn
- DeFi performed well during the recent downturn, handling liquidations efficiently and transparently.
- This contrasts with CeFi lenders, who struggled with insolvency and harmed users.
Crypto Market Cap and Fed's Inflation Understanding
- The total crypto market cap is under $1 trillion, significantly less than the dot-com boom's peak.
- Jerome Powell admitted the Fed's limited understanding of current inflationary pressures.
Multifaceted Causes of Inflation
- Inflation's cause isn't singular but multifaceted, involving COVID, government policies, consumer behavior, and global events.
- Even crypto is jokingly blamed for contributing to inflation due to profits and spending.