GM HEARTLAND |
Another week, another warning. Whether on web3 or web2, the bad actors always manage to grab the headlines. Oh toxic positivity, where art thou? |
—El Prof, Muhammed & Chad |
MONEY MONEY MONEY
TOKEN | PRICE CHANGE | PRICE |
---|---|---|
Solana ($SOL) | -6.42% | $133.24 |
Helium ($HNT) | +0.63% | $3.39 |
Pyth ($PYTH) | -9.19% | $0.32 |
Solend ($SLND) | +0.97% | $0.49 |
(Price changes reflect past 7 days as of 6.21.24)
The Brotherhood of Evil Degens
Magneto may have had made some valid points. But can the same be said for Martin Shkreli?
We recently covered the rise of political meme coins, so for regular readers, it should come as no surprise that the latest hot investment in the DeFi space is $DJT. No, we’re not talking about Trump Media, the TradFi social media company whose shares are currently in a free fall after announcing plans to further dilute shareholders’ holdings, following its namesake conviction of more than 30 felonies. The other $DJT is a Solana-based crypto token, up by triple-digits over the past month. But it might not be for much longer.
Remember how last week we trumpeted DYOR, or “doing your own research” into a project before investing? Well, one of the key variables for prospective investors to analyze is the founding team.
$DJT happens to have been founded by none other than Martin Shkreli, the former pharmaceutical executive notorious for price-gouging life-saving drugs — and his subsequent securities fraud conviction.
For a microcap political crypto coin, $DJT launched with surprisingly lofty ambitions. The project’s whitepaper outlined plans to develop a decentralized ecosystem to disrupt the digital landscape, stoking considerable hype within the crypto community.
However, that excitement was short-lived, as the project’s association with convicted fraudster Shkreli understandably sparked concerns about the project’s legitimacy and ethics.
The community’s backlash to this news was swift, with many expressing concerns about the project’s legitimacy. Regulatory concerns were also raised, sparking questions about potential legal issues. The project’s association with Shkreli drew parallels to his previous endeavors, which ended in disaster. In addition to his high-profile pharmaceutical industry failures, Shkreli was previously linked to a presumed rugpull. After liquidating 160 billion tokens from his 2022 web3 project Druglike and destroying some 90% of its market value, he responded with a typically laconic excuse: “I got hacked.”
The controversy surrounding $DJT highlights the importance of ethical leadership in cryptocurrency projects. The involvement of individuals with questionable pasts raises concerns about the project’s long-term viability and credibility. Ultimately, this fiasco serves as a reminder of the need for transparency, accountability, and ethical considerations in the cryptocurrency space. As the industry evolves, projects must prioritize credibility and legitimacy, avoiding associations that could compromise their reputation.
For his part, Martin Shkreli defended himself by tossing out another alleged collaborator on the $DJT project: Barron Trump. This bizarre response seems to be banking on the fact that degens will consider the former President’s enigmatic 18-year-old son to be a more reliable party than Shkreli himself, which… yup, checks out.
—Muhammed
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Wish This Was Photoshopped
As a modern man, I’ve had to learn how to get things done for myself. And like most children of the Internet Age, one of the main tools in my utility belt is Adobe Creative Suite.
I can’t count the number of JPGs I’ve right-click-saved off Google Search results, then vectorized and recolored in Illustrator as a shortcut to get my visions out into the world without the need to gather any bonafide “creative” skills. Never mind the many real creators out there for whom these apps are as necessary as canvases or paintbrushes.
But they’re also, well, apps. Web2 apps, to boot. And so it’s no surprise — albeit entirely a slap in the face — that Adobe recently updated their software licensing agreement requires users to sign aways usage rights of all works created using their tools.
Now, I like to think I understand the value capture game that powers our economy better than your average bear. But it’s myopic bullshit like this that has the Zoomers droning on about late stage capitalism. This is a textbook version of short-term value extraction, in exchange for long-term damage.
Given its Internet Age ubiquity, not to mention its impressive strides in the AI arms race, Adobe appeared well-positioned to be the suite powering the coming paradigm shift to the Creator Economy. But, to paraphrase James Collins’ Good to Great, it takes visionary leaders at the helms of these organizations to realize the true markets they’re in, rather than simply identifying the quickest path to profit, without stopping to think where it might ultimately lead.
Adobe eventually backpedaled, releasing several vague apologies before finally rectifying the change with new, plain-English terms. But the damage might already be done, with plenty of users responding negatively to the revised terms as well, suggesting trust in the brand might be permanently broken. It doesn’t help that the government is suing Adobe for lack of transparency — related to their subscription model rather than their Terms of Use, but to disgruntled customers, the nuance might not mean a thing.
As web3 approaches and web2 tech giants are gradually replaced by disruptor brands, we might see a sea change for creative tools, too. My bet would be on a company like Canva to evolve into a true competitor to Adobe in the space. And my unofficial advice to a company like that would be to tokenize the outputs of their tools, assign ownership rights directly to their users, and create a licensing process to train their proprietary AI.
In other words, the path to becoming a leader in the Creator Economy might be to collaborate directly with said creators while advancing the technology in a mutually beneficial way — rather than, you know, explicitly screwing them over and trying to trick them into paying you every month for it.
Of course, these are just my thoughts in the moment. Talk to me again next week. By then, I may have already started GIMP DAO.
—El Prof
STRAY LINKS
The first proposal for a North American Solana ETF has officially been filed, with digital asset manager 3iQ’s petition to the Toronto Stock Exchange.
If the $DJT drama hasn’t scared you off from meme coins, check out Ape.LOL, a new launchpad for Solana-based tokens. While you’re at it, launch your own, for as little as $1.