The Crypto Insider Report #9: Community to the power of N -> A DAO you cannot fuck with.
Disclaimer: Everything we write in "The Crypto Insider Report" is an x-ray of the industry as we see it, through the lens of publicly available information. We are not financial advisors.
Endi wrote in the PRO newsletter the other day about the initiatives that arise from among the community, giving the Stakeborgdao.xyz platform as an example, a place to the construction of which, and I say it with all pride, I had absolutely no contribution. I created an account, I joined the Guild of my city (Iasi), the DAO Philosophical discussions, and I watch carefully from the aeroplane how the world is organized.
I recently found there the article written by Eugenptr, some excerpts of which I will leave below:
“People actually spent days in a row collecting plants, mining metals, and collecting all kinds of other materials, with which, through everyone's professions (engineering, jewel crafting, herbalism, tailoring, leatherworking) to create items for everyone in the guild. This was the only way we could be strong enough to take down bigger bosses and have a chance at that legendary loot... fuckin insane if you ask me. Those 5 years of WoW have had such an impact that whenever I think about that period, I teleport myself into a dream and feel the most profound sense of nostalgia I know. Entering high school, I began to agree with my parents who desperately insisted that what I was doing was just a waste of time. In the end, they were right, all the cool stuff that I was doing online, all the value I was creating was stuck in a universe with no bridge to the real world. Ending that chapter, I started to look for my purpose in the real world, being open to any activity, and experience came my way to continue living in the real world the same feelings that I had in-game with my guild colleagues.
(...)
I watched George Buhnici's video with Razvan Munteanu, and I had the same feeling as when I opened Internet Explorer for the first time. There's something here, and I want to discover what's going on. Since then, as in WoW, I have remained engrossed in the crypto world.
Some time after "The Crypto Insider" newsletter first appeared, I created my Twitter account, a Discord account, and started jumping in a rabbit hole daily. Fast forward, I am writing this article, the StakeborgDAO Discord has become the old chat of the guild in WoW, we will also have a Bank Vault aka Community Wallet to finance cool projects, this time, the universe in which we play is the world we live in, and we have all the necessary tools to create value for all of us and many others, not just for some characters from the virtual world.
I just quit my current job to focus full-time on building stuff on blockchain and figure out how I can bring as much value in the DAO as possible. I don't know where things will lead, but I've finally found my place, and I feel that with you, nothing can stand in our way. One for all and all for DAO! LFG 🚀"
A community's initiatives are beautiful, but they can die out from the start if there is no correlation and alignment with the team. In just a few days the platform hosts 243 members, and I will tell you now so that it won’t be a surprise later that we plan to make this platform a quintessential vehicle for the future of StakeborgDAO.
Everyone talks about community in crypto, but few really learn what that means. It's often just a trivial way to aggregate the retail you appreciate by calling them "our raving fans" when they hodl and you sell.
At StakeborgDAO, we’re preparing for the community to the power of N where "n" is the number of members who are actively involved; we will become "a DAO you cannot fuck with" only this way, and that's the only goal worth fidgeting about.
Take care,
Vlad
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The first steps in crypto: What Is a Seed Phrase?
A seed phrase is a list of words generated by a crypto wallet that enables the wallet user to access the crypto funds associated with that wallet.
It is also known as a seed recovery phrase or a backup seed phrase, and it includes 12 to 24 simple words, such as open, road, forget, achieve, energy, again, feed, etc.
These words are pulled from a list of 2,048 words, and they are not similar. So, there won’t be pairs such as “road” and “roads,” - plural versus singular in the same seed phrase, and the reason for this is to avoid errors.
This type of phrase was introduced with the Bitcoin Improvement Proposal 39 in 2013 and was widely adopted after that. The BIP39 established a standard for deterministic wallets. In the case of such a wallet, it will control all the private keys held associated with it.
How Do Seed Phrases Work?
When setting up a crypto wallet, a seed phrase will be automatically generated, and the user will be required to keep and store it safely.
The seed phrase is a representation of a long string of random numbers, but what the user gets is a series of simple words, and that’s because it is easier to remember.
We could say that a crypto wallet is a password manager and a seed phrase is a master password. Since private keys are algorithmically derived from the long string of numbers represented by the phrase, this phrase will help you access all the private keys and crypto funds in your wallet.
One of the great advantages of the standard established by the Bitcoin Improvement Proposal 39 is that it makes major wallets mutually compatible. This means that if you want to switch wallets or lose access to your wallet, you can load the seed phrase into a new BIP39-compatible wallet in order to recover your funds.
Storing The Seed Phrase Safely
Since this is the one that enables a wallet user to access the funds associated with the wallet, it is of utmost importance to be stored safely. That’s because anyone who has the phrase can access your crypto funds.
Then, if you lose it, you also lose access to your crypto. In the unfortunate event that you lose it, but your seed phrase remains undiscovered and unused, your cryptocurrencies will remain stored on the blockchain. However, you won’t be able to access them. So, keeping it somewhere safe is essential, and there are several ways to do that.
One of the classic ways to store it is by simply writing it down on a piece of paper. Some crypto wallet users also engrave the seed phrase into durable materials, such as stainless steel.
Even though some users may resort to encrypting it and storing it on a device, physical storage methods are considered to be the safest. Still, it is best to have multiple safe deposit boxes if you prefer to use the paper method and thus several copies. This way, you can make sure that if something happens with one of these boxes or the paper, you can resort to the others to get your seed phrase.
If you do opt for encrypting and storing it on a device, it is always best to also have it physically stored somewhere.
Conclusions
Seed phrases are the most critical aspect of a crypto wallet. The series of words generated when setting up a crypto wallet provides access to the cryptocurrency associated with that wallet.
As long as you have them, you have access to your crypto, and even if you lose access to your wallet, you can enter the seed phrase into another wallet to access your funds.
Animation of the day: Solana simply explained
For more animations: Cryptomatics
Tania
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The Altcoin Pulse
1. Astar Network, a Polkadot-native dApp hub multi-chain, is the winning project of the third parachain slot in the Polkadot ecosystem, with a contribution of over 10.3m $DOT.
2. 1inch Network, a DEX aggregator, conducted a $175m Series B funding round at a valuation of $2.25bn. The funding round was carried out through a sale of tokens at a price of $1.50, and the funds raised will be used to attract institutional customers to the platform (banks, hedge funds, market makers, credit organizations), obtaining licenses in Europe and the USA, developing new protocols, expanding the utility of the governance token and recruiting new team members. 1inch will provide access to permissioned pools (with restricted access) for institutional customers.
3. Binance Smart Chain and Animoca Brands launch a $200m fund geared towards GameFi projects (decentralized gaming finance).
https://www.coinspeaker.com/binance-animoca-brands-blockchain-games/
4. DeversiFi, a DEX with a hybrid model that combines AMM and order book trading, has announced a trading rewards program and an airdrop, the latter being retroactive.
https://thedefiant.io/deversifi-airdrop-tokens-amm/
5. The TVL on Luna reaches the top 3, surpassing Solana and Avalanche.
6. Several future token releases and listings, and other events.
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Interesting Headlines
1. A summary of the market activity of the last few days: (1) a flush out on the futures market; (2) strong support from the U.S. and South Korean investors; (3) exchanges net flows have stabilized after an interval of BTC inflows; (4) miners HODL.
2. WisdomTree, an ETF/ETP provider and asset manager that has historically specialized in commodities, but has also entered the crypto market quite deeply, announced a number of crypto indexes and index funds. The most important index is the one created in partnership with Ritholtz Wealth Management, an investment advisory firm. The index was licensed to Onramp Invest, a platform that provides financial advisors access to crypto assets. They can channel the funds of clients who want to track this index through Onramp Invest, and the crypto assets will be held in custody by Gemini.
https://blockworks.co/wisdomtree-and-ritholtz-wealth-management-launch-crypto-index/
3. "Won't you be my neighbor" Snoopverse Land Sale: a plot of land in The Sandbox adjacent to the one where Snoop Dogg develops a copy of his California mansion sold for 71,000 $SAND (about $355,000 at the current price).
https://decrypt.co/87524/someone-paid-450k-snoop-dogg-metaverse-neighbor
4. Meta (ex-Facebook) ends the ban on crypto ads on its platform.
https://beincrypto.com/meta-effectively-ends-cryptocurrency-ads-ban/
5. TVL in DAOs has had an exponential growth lately. The largest communities are in DAOs from Uniswap (275,562), Kusama (250,496), and MetaCartel Ventures (244,104).
https://thedefiant.io/daos-growth-tvl/
6. The largest supermarket chain in Croatia has introduced the possibility of online payment with crypto.
https://cointelegraph.com/news/croatia-s-largest-supermarket-chain-now-accepts-crypto
7. DeFi Insurer Nexus Mutual analyzes whether the hack on BadgerDAO falls within its attributions - this hack being on the front-end / UI area and not one that exploited a vulnerability in smart contracts.
https://thedefiant.io/badgerdao-hack-insurance-payout/
8. FTX seeks a $1.5bn funding round for its affiliated company FTX.US, which would mean a valuation of $32bn for FTX.
9. Coinbase aims to diversify revenues and plans to expand the Coinbase Cloud service, which is similar to AWS in the crypto sector.
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Article of the week:
An article that I've talked about in Crypto after Dark as well, but which always feels up-to-date after a flush and a dead cat bounce.
https://medium.com/the-capital/how-whales-manipulate-prices-in-cryptocurrency-markets-c6c9a547dbc7
Business book of the week: The Score Takes Care of Itself: My Philosophy of Leadership by Bill Walsh. Most high-performers in sports have a life system behind them. Some manage to put it on paper and share it with others, others live it in the form of automatism. Crypto, like sports performance, takes time and endurance.
My favorite quote: "Winners act like winners before they're winners... The culture precedes positive results."
Youtube clip of the week: Scott Melker with Dragonfly Capital's Haseeb Qureshi. From PRO Poker player to successful VC in crypto.