The Winklevoss Twins Are Swinging – TechCrunch

Welcome back chain reaction.

Last week we talked about a crypto arrest that got investors sweating. This week we talk about overcoming the general malaise of a coded winter.

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Crypto has had a rough two months and yet the show continues — figuratively and literally for the Winklevoss twins who, despite announcing massive layoffs and the subject of a federal lawsuit this week against cryptocurrency exchange Gemini, have started a multi-city tour for their “Mars Junction” band that Play songs from flicker 182And the the killers And the Rage against the machine.

Billionaire bandleaders (both immortalized by Armie Hammer in The Social Network) resurrected their image with a big bet on the bitcoin ecosystem years ago, and while Gemini lags far behind competitors, the exchange was worth $7.1 billion last year, but lawsuits from investors and regulators who Cooperated with layoffs could cause problems in the future with it.

Soaring valuations have been the hallmark of the cryptocurrency’s bull run in 2021, with unicorn startups pouring out on a weekly basis as money is dumped into the space even as consumer interest in Web3 services appears to be growing more modestly. But as investors look at Coinbase’s general woes, startups that haven’t made enough money are about to see more hostile jargon on its way.

This week, The Block and Bloomberg reported that crypto lending platform BlockFi was undergoing a significant downgrade and was aiming to raise a $1 billion round just over a year after raising $3 billion in funds.

Investors are becoming more conservative with their capital, but are becoming more skeptical of exit options.

For public giants like Coinbase, beatings on their stock prices have left them in a scramble, reversing their underpaid hiring spree and canceling offers for potential employees. Coinbase’s misfortunes are likely to be a major signal of tough times ahead for crypto startups that may not have raised the runway as much as necessary. Companies that desperately need capital to grow won’t be in a good place, though venture capitalists like a16z will certainly try to keep the gig on their way to seed-stage startups with new money largely dedicated to new bets.

The broader tech industry hasn’t experienced a prolonged stagnation in two decades, but crypto startups have dealt with plenty of grueling ‘winters’. As a result, one would expect that they would be a little better prepared for the good times to wind up… however a lot of the big crypto companies are reporting that this latest crash has caught them by surprise.

Latest pod

It’s Anita Here – In this week’s episode, Lucas and I unfortunately had to put up with some bad news as the crypto-market downturn started to take its toll on the staff. Some of the biggest crypto companies are joining the recent wave of tech startups that are throwing people out en masse. We talked about it Coinbase’s final move to cancel job offers already made to candidates who have committed to work there, Gemini Decision To fire 10% of its employees, and exactly how things got so bad so quickly.

We also talked about new bill Senators Cynthia Loomis and Kirsten Gilbrand presented this week that it could provide long-awaited regulatory clarity to cryptocurrencies, and learn why we believe this is a long-term gain for companies building in the space and investors who own digital assets.

Sriram Krishnan, general partner on the a16z crypto team (and co-host of “The Good Time Show,”) join us to highlight some of his meat on Twitter and how his experience as a CEO at some of the biggest social media companies informs his approach to consumer investment on the web3 .

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follow the money

Where startup money is moving in the crypto world:

  1. mobile investment platform Delphi raised $60 million Series A led by Multicoin Capital.
  2. Galaxya Web3 social networking marketplace, has secured $26 million in strategic funding co-led by Anemoka Brands and the HBAR Foundation.
  3. entropya decentralized custodian of cryptocurrencies, raised $25 million for its initial round led by a16z.
  4. “It’s Always Sunny in Philadelphia” Actor Rob McElhenney Startup Web Entertainment 3, My name israised $5 million in seed funding in a round led by a16z.
  5. decentralized exchange Apollux He received an undisclosed amount in seed funding from investors including Binance Labs and Kronos Research.
  6. Euler financingA trustless cryptocurrency lending protocol brought in $32 million with Haun Ventures as a lead investor in Series A.
  7. data infrastructure provider Vybe . Network announced the closing of a $10.5 million Series A investment led by FTX.
  8. masha payments platform backed by the Lightning Network, has secured seed funding of $6 million co-led by Castle Island Ventures and Whitecap Venture Partners.
  9. ciphera crypto institutional accounting platform, has raised $10 million in a Series A led by Point Nine.
  10. Starting NFT Wallet Management floor He raised $8 million in a seed tour led by 6thMan Ventures.

week in web3

As Anita heads to the Consensus Crypto conference in Austin this week, we’ve been thinking about the aspects of web3 that continue to excite and energize crowds, even during a tough time in the markets.

  • Entrepreneur Web3 Tux Pacific summed it up well: In fact, I’ve never felt like I was in a place where it was acceptable for people to be so different. If you go to a [crypto] The conference, it is full of strange and strange people, ‘The Pacific Ocean Anita told in an interview. Pacific, a rare cryptocurrency founder and big-name diaspora, also spoke about how their unique background informs their new approach to building a crypto custodian.
  • This may be a bold time to raise capital to invest in Web 3, but Ledger, a hardware-focused crypto-security startup, has teamed up with French venture firm Cathay Innovation to do just that. The pair raised $110 million to invest in crypto startups. Ledger founder and CEO, Pascal Gautier, told Anita why he’s so self-confident Now is the time to spread the capital in crypto.
  • Solana Labs is multiplying in South Korea, where they are seeing increased demand for toys and NFTs. Solana Ventures and Solana Foundation set up $100 million fund to support startups in the country – Jacquie has the details.

TC + . analysis

Here are some crypto analyzes for this week that you can read on our subscription service TC+ (written by TC’s Jacquelyn Melinek):

US proposed bipartisan crypto bill may be an industry ‘sigh’
Earlier this week, US Senators Cynthia Loomis, R-Wyoming, and Kirsten Gillibrand, D-New York, proposed a crypto bill that could provide guidelines around the digital asset space. The bill touched on many corners of the cryptocurrency world, with market players calling it a “step in the right direction” rather than an “escape” to strong regulation, but a shift with clearer rules.

Former Securities and Exchange Commission attorney says DOJ case against former OpenSea executive may classify NFTs as securities
A former executive of OpenSea, the largest NFT marketplace, was arrested and charged last week “With wire fraud and money laundering in connection with a scheme to commit insider trading [NFTs]’, according to a press release from the US Attorney’s Office for the Southern District of New York. Now, this The case may have the ability to determine whether or not NFTs are defined as securities.

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