I don't want to talk about this anymore

You've opened the newsletter, and today you'll take away the following:

• Libra: It's crucial we address this topic. I aim to refresh your memory with all the important, current information in less than 90 seconds: 60 for Libra and an additional 30 due to the Bybit hack that occurred two days ago.

• Our perspective on Consumer Crypto and our investment strategy: In case you've forgotten that we manage two funds, consider this a friendly reminder and a welcome diversion from the ongoing memecoin hype.

• A case study currently buzzing in the crypto scene: The Kaito Launch.

• My personal experience hosting an event for over 100 suit-wearing professionals in Frankfurt (and why the traditional finance sector is particularly bullish on the crypto space).

GMGM.

While I sent the last issue from the beautiful landscapes of Morocco, I now find myself in Frankfurt, trying to process two key things:

1. What on earth happened in the last few days while I was honing my bargaining skills in the bazaar?

2. How I can possibly explain yet another presidential rug pull in at least 3 out of 4 cc'd issues without ranting about the entire space. (And in the process, reassure my normie friends that there's actually some cool technology (blockchain, duh) out there that offers so much more than these negative examples)

On top of that, I'm still coming to terms with my lost luggage. Because, you know, travel wouldn't be complete without a little chaos, right?

If, like me, you've been on the move and only caught snippets of what's going down - fear not. I've tapped into the collective wisdom of the smart people around me and got you cc'd on the convo.

The Libra case - and I can't believe I'm writing this - marks the third time in just four cc'd issues that I'm covering a rug pull by a country or president. But I don’t want to hide anything from you (& how are you supposed to hide news like this, lol).

Now, I know you've probably read a few hot takes on this already, so let's break down everything you need to keep in mind:

• On February 14, 2025 (because nothing says "I love you" like a memecoin launch), Argentina's libertarian President Javier Milei tweeted about a new token called $Libra. It was marketed as a coin with a purpose - to boost Argentina's economy by funding small businesses. Sounds noble, right?

• $Libra's market cap hits $4.5B, then crashes 95% within hours. Alleged "rug pull" wipes out millions.

• Insiders reportedly withdrew $100M from liquidity pool. Milei denies involvement; faces impeachment calls.

• Key players:

  • Hayden Davis (Kelsier Ventures CEO): Admitted to "sniping" tokens with bots.

  • Ben Chow (Meteora CEO): Resigned after denying knowledge of insider trading.

  • Dave Portnoy: Invested $5M, got refunded post-crash, sparking outrage.

• Trump connection: Davis linked to Trump and Melania memecoins with similar patterns.

• Fallout:

  • Argentina's political turmoil intensifies.

  • Crypto industry reputation suffers another blow.

  • Exposes widespread insider trading in memecoins.

• Lesson: Memecoins are risky gambles, not investments. "It's an insider's game" - Hayden Davis.

• Future uncertain for Milei; regulators under pressure; accountability remains elusive in unregulated markets.

Takeaway:

I find it incredibly difficult to pin all of this on crypto. Yes, there's a lot of negative stuff happening right now. But let's not forget that platforms like Facebook are also used for fake news. Let's please not dump everything on the blockchain's doorstep. There has never been a better time to highlight the cool things in crypto.

But since we are talking about scams, and I won't find any better transition than this one - let's quickly address the Bybit Hack from February 21st.

Instead of using my own words, I'd like to refer you to an informative thread that can bring you up to speed:

Takeway:

Even if code is secure, humans remain the weakest link. It's like having a state-of-the-art alarm system but leaving your house key under the doormat.

While the Libra scandal might make you want to throw your hands up and declare crypto dead (again), let's remember why many of us got into this space in the first place.

It wasn't for the memes or the rug pulls - it was for the groundbreaking possibilities that blockchain technology offers.

I recently had a chat with my co-founder Henrik from our Venture team, and let me tell you, this guy sees more projects in a day than most of us see Netflix shows in a month. He, along with Julius from our liquid token fund w3.wave, and Tom, the CTO and co-founder of our staking company w3.labs, have just launched a newsletter for investors. It's like the Avengers of crypto insights, if you will.

Henrik's section focuses on consumer crypto applications in the Web3 space. Think of it as your guide to the cool, practical stuff happening in crypto that doesn't involve presidents or memecoins.

The newsletter dives into the broader crypto market, exploring exciting developments in DeFi, AI, and decentralized infrastructure. It's a refreshing reminder that while meme coins may dominate headlines, the true value of crypto lies in its ability to empower users and create new opportunities.

Now, I don't want to spoil too much - you should really read it yourself. It's good. Like, really, really good. The kind of good that makes you remember why you got excited about crypto in the first place.

Trust me, your brain will thank you for the break from meme coin drama.

Remember when everyone started to "buy and sell pieces of people" with Friend.Tech?

• The platform skyrocketed in 2023, allowing users to buy "keys" for influencers' chats, but crashed spectacularly by late 2024.

• Despite a V2 update and token airdrop, the platform's activity plummeted. Developers exited, locking $44M in profits and leaving users with significant losses.

Well, Kaito just launched their YAP token, and it's Friend.Tech done right - not just another "to the moon" meme coin.

Here's the lowdown:

• AI-Powered Content Ranking: Imagine a super-smart friend sifting through the noise to find the good stuff.

• Democratizing Influence: Giving underdogs a chance to shine alongside big influencers.

• Real Discussions Tracked: Say goodbye to drowning in emojis. Kaito's AI highlights meaningful conversations.

• Measurable Impact: It's like a fitness tracker for your social media game.

Marc Baumann nailed it on LinkedIn: AI-led token launches are becoming Web3's new fundraising norm. It's about creating real value, not just hype.

Fios (OG from Blockstories) take? The true currency is time and attention, not money. Kaito's tapping into this, valuing quality content over noise.

Jason Yanowitz from Blockworks put it perfectly: Kaito's building an AI-powered social graph for crypto, connecting content, creators, and consumers in groundbreaking ways.

Alright, let's talk about our recent in-person event in Frankfurt's skyscrapers - the finale of the Digital Assets Season.

As a Frankfurt native, hosting this TradFi and DeFi gathering on the 25th floor of the Nextower was surreal.

The event highlighted the importance of bringing the right people together for deep, meaningful conversations. It was crypto-meets-finance at its finest.

We had two panels tackling macros, regulatory issues, stablecoins, and infrastructure with our partners from 21Shares, Deka, Fireblocks, DLT Finance, Solana & AllUnity, tradias, Kiln, and NEAR.

Key Takeaways:

• Long-term crypto optimism is high; traditional banks need to adapt.

• Europe's leading with MiCA, but the U.S. isn't far behind.

• Institutional adoption is rising, with user experience as the next challenge.

• Diverse perspectives converge on 2025 being a landmark year for crypto.

• Education remains crucial to bridge the knowledge gap.

Join the last event in our Digital Assets Season

​1️⃣ Fireblocks: Unlocking the Full Potential of Stablecoins for Institutions w/ John Hallahan (Director Business Solutions EMEA at Fireblocks)

​2️⃣ SG Forge: An Inside Look at Launching a MiCAR-Compliant EUR Stablecoin on Solana w/ Guillaume Chatain (Chief Revenue Officer at Societe Generale - FORGE) and Nick Ducoff (Head of Institutional Growth at Solana Foundation)

​3️⃣ Kiln and VanEck: How to Launch a Staked SOL ETP – A Case Study for Asset Managers w/ Marco Severi (Head of Sales at Kiln)

​4️⃣ DLT Finance: The Crypto Playbook: Scaling Spot & Derivatives Trading in a Regulated EU Market w/ Jan Kühne (Partnerships at DLT Finance)

Alright, time for some rapid-fire nuggets. Since I've been soaking up the Moroccan sun (and probably too much mint tea), I've been a bit out of the loop. So, I turned to my most reliable sources: Quinn, Nils, and our Web3 news channel.

• Kanye West's Twitter Account: Apparently, it was hacked or sold. At this point, it's hard to tell what's a hack and what's just Kanye being Kanye. The crypto world's got nothing on Ye's unpredictability.

• The article "When DeFi Met AI" explores how artificial intelligence is revolutionizing decentralized finance, potentially creating more efficient, secure, and user-friendly DeFi systems that could reshape the future of finance.

• Satya Nadella just tweeted about Microsoft's quantum leap: they've created a new state of matter that could make super-powerful quantum computers a reality way sooner than expected.

• Aptos is on a wild ride as traders and the community fuel a price surge, turning what started as a memecoin into a potential governance takeover.

• FTX starts repayments.

• Telefónica's bringing the Helium network to 2 million subscribers in Mexico.

That’s it.

See you next week 💅🏽

And while we're at it:

I'm on LinkedIn.

I'm on X.

Just started with YouTube and thinking about how to continue it.

Always here at w3.hub.

Active in the w3.group. Follow on LinkedIn to keep up with our projects.