🤹‍♀️ 1 big thing: Amber Vittoria 

Photo illustration of Amber Vittoria with abstract shapes.

🔐 2. Members only 

🏃‍♀️ 3. Catch up quick 

Top coins

🎤 4. Culture hash IRL

Three guys Crystal Kim met at NFT.NYC 2022.

Hello, Thursday! Today we're doing an NFT.NYC takeover, talking to artist and poet Amber Vittoria, diving into conference hijinks and asking random passersby about the state of the crypto market. 

The three-day confab was wild. Were you there? Send us pics of what you saw: crypto@axios.com.

This newsletter was edited by Pete Gannon and is 1,203 words, a 4.5-minute read.

What do y'all think is the next big thing? —B & C

National

Follow how cryptocurrency and blockchain are upending markets and the regulatory shifts. With Brady Dale.

Axios Crypto

👯‍♀️ 1 big thing: Ethereum — the sequel

Illustration of the Ethereum logo peeking out from behind a curtain.

🙏 2. Charted: Think of the users

💸 3. Coin emissions: Number go up because number go down

Illustration of pixelated game coins arranged in order of ascending size

🚴‍♀️ 4. Catch up quick 

🪨 5. No more mining? Really? 

TGIF! Today we are going to dive into one of the biggest topics in blockchain: Ethereum's coming transition to Ethereum 2.0 (aka, The Merge).

🚨 Situational awareness: Hackers struck layer-1 blockchain Harmony's Horizon bridge, stealing roughly $100 million.

🦻 How many ETH maxis are reading this? Please email us! Don't be shy: crypto@axios.com. And don't forget to follow us on Twitter and give us ideas there: Crystal and Brady.

This newsletter was edited by Pete Gannon and is 1,240 words, a 5-minute read.

💭 Brady's thought bubble: This change is epic and, frankly, I expect chaos. A black swan that rivals The DAO could hit Ethereum as v2 goes live, but I've been wrong before. 

🪤 1 big thing: Blockchain censorship by ISPs

Illustration of a fist crushing a digital glowing block.

🧾 2. Charted: Bargain hunters

🦸‍♂️ 3. FTX taking on the role of lender of last resort

Illustration of connected "bitcoins" with a college of rectangles and money in the background

🏃‍♀️ 4. Catch up quick

⏳ 5. Culture hash: Capitalist bails out capitalist

A tweet about the BlockFi/FTX deal not being a bailout. 

Hello! Today we're all about blockchain security and crypto company rescue.

✍️ Crystal is at NFT.nyc, and Brady is watching the inboxes. Email us: crypto@axios.com.

This newsletter was edited by Pete Gannon and is 1,012 words, a 4-minute read.

Programming note: Tomorrow should be all about NFT.nyc, and Friday should be all about the next phase of Ethereum. —C & B

📹 1 big thing: BitBoy's gripe

Photo illustration of Ben Armstrong and the Celsius logo surrounded by geometric shapes 

🎢 2. Charted: Wild weekend

🎨 3. Loans for art

🚤 4. Catch up quick 

🤡 5. Culture hash: Fake but funny

An anti-nft protest in NYC. It's not real.

Happy Tuesday! Fun weekend for crypto true believers (😄). Today we dive into one crypto influencer's gripes about a faltering lender, a venture round for NFT finance and a protest. 

And NFT.NYC 2022 has officially kicked off! In town? Tell us about what you're getting into: crypto@axios.com. 

This newsletter was edited by Javier E. David, and is 972 words — a 3.5-minute read.

We hope you didn't sell the bottom. But even if you did, everyone has done it. It's fine. — C & B

🍿 1 big thing: Jenkins 

🧐 2. Charted: VIPs

✍️ 3. Bitcoin accounting

🎭 5. Culture hash: What's in a name?

GM, Monday! Today we're interviewing Bored Ape #1798, digging into Coinbase's customer breakdown and how bitcoin accounting works for publicly traded companies. 

 There's a full week ahead of us. What's on your mind? crypto@axios.com.

This newsletter was edited by Pete Gannon and is 1,031 words, a 4-minute read.

Another crypto lender, Nexo, published the weirdest blog post of this downturn. It's a cease and desist letter directed at... everyone? If anyone can shed some light on this bizarre document, please hit us up. —C & B 

The founders of major crypto lender BlockFi, Zac Prince and Flori Marquez, took pay cuts amidst broader cutbacks at the company that included laying off 20% of its staff, a spokesperson confirms for Axios.

Why it matters: Talks about salaries at the highest echelons of crypto leadership have bubbled up amid layoff announcements.

What's driving the news: BlockFi announced Monday that it would be reducing headcount, citing "market conditions that have had a negative impact on our growth rate" in a message from its founders.

Since the first quarter of this year, the BlockFi team has been working on "reducing marketing spend, eliminating non-critical vendors, reducing executive compensation, slowing headcount growth," they said.

The cofounders of BlockFi otherwise declined Axios' invitation to sit down for an interview regarding the company's announced layoffs on Monday.

What they're saying: "The BlockFi executive team — including the founders, Zac Prince and Flori Marquez — did take a reduction in compensation," Madelyn McHugh, a spokesperson for BlockFi said in an emailed statement to Axios.

"This decision was made in part of a larger employee retention strategy in light of current market conditions."

What others are saying: One enterprising Twitter user responded to Prince's layoff announcement with "one year such a difference," and resurfaced a March 2021 tweet in which Prince said the firm was hiring.

Crypto execs cut their own pay as layoffs mount

The founders of major crypto lender BlockFi took pay cuts while laying off 20% of staff.

Illustration of a desk nameplate with dollar signs on it disappearing and re-appearing

Cryptocurrencies

The founders of major crypto lender BlockFi, Zac Prince and Flori Marquez, took pay cuts amidst broader cutbacks at the company that included laying off 20% of its staff, a spokesperson confirms for Axios.Why it matters: <a class="gtmContentClick" data-vars-link-text="Talks about salaries" data-vars-click-url="https://twitter.com/crypto_bitlord7/status/1536690652267925504?s=21&amp;t=2KGv4tNKTofXYbRTuMMLFg" data-vars-content-id="029d0537-2ca9-43de-be2d-ea0f0c2b3cc6" data-vars-headline="Crypto execs cut their own pay as layoffs mount" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://twitter.com/crypto_bitlord7/status/1536690652267925504?s=21&amp;t=2KGv4tNKTofXYbRTuMMLFg" target="_blank">Talks about salaries</a> at the highest echelons of crypto leadership have bubbled up amid layoff announcements.

After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.

Economy & Business

From the Valley to D.C., Big Tech players like Facebook, Google and Amazon are under more scrutiny than ever as new technology develops and privacy and antitrust concerns grow in lockstep with companies’ ambitions.

Technology

Artist Amber Vittoria's step into the nonfungible token world helped her go "fully abstracted." Think ribbons of color or shapes scattered across the page.

Why it matters: The NFT boom of 2021 fed creatives. As coin prices took off, a marketplace where those coins could be spent blossomed. A downturn in coin values threatens what Vittoria refers to as "the digital art renaissance" — also the name of the panel she led at NFT NYC.

Catch up fast: The soon-to-be LA-based artist started selling her work as nonfungible tokens, or NFTs, in March 2021. Now, she can support herself from it.

Earlier this week her collaboration with LA-based streetwear brand The Hundreds resulted in shirts with a Vittoria-ized version of the words "JPEG Collector" as well as the Adam bomb logo. (Their pop-up shop downtown has already sold out, according to Vittoria.) 

Of her journey into NFTs, Vittoria tells Axios: "It was very surprising. I went from struggling to find freelance work to prioritizing art." 

"I try to remind myself—in times of uncertainty we as humans forget how resilient we are," she said, acknowledging that people may be less willing to spend on NFTs amid a crypto crunch.

"I'm not reminiscing about the bull run either," she added.

Vittoria's first NFT was a CryptoPunk she bought with her husband in 2021 using money meant to buy a car.

"Prices were stupid. We still don't have the car, but we have the CryptoPunk!" she said with a laugh. 

Before selling her first collection on OpenSea, a set of 25 NFTs meditating on and deconstructing the female form, she considered drawing for an NFT shop. But found out they were only hiring artists who draw cats. 

Flashback: Vittoria's inaugural NFTs sold out, but she took a months-long break after and "lurked" on the internet, because  "it didn't feel right continuing."

That collection involved physical works, which she would try to send to her collectors, only to learn that it was a bit of a crypto faux pas to ask for a home address.

"The barrier I ran into — physical pieces — I wanted to sell them. They were like 'no, I'm anonymous'," she said. "There's a learning curve."

State of play: Vittoria went fully digital after that, like her painted works, but created digitally. 

She sells numbered editions of her work in batches or lots. 

Other NFT artists might solely focus on what are called 1-of-1s, or limited edition pieces that suggest rarity because the probability of owning one are miniscule.

How it works: People can buy Vittoria's art on OpenSea with eth. 

Her Alphabet Collection comes with freebies. Those who collect a set of five lettered prints can message Vittoria directly on her Discord channel. 

She also combines these letters to create a separate word NFT and gives it to the collector, free of charge. 

What's next: Her next drop of 999 collages comes July 15.

A mini documentary from media outlet ONE37PM about her journey to Web3 is set to premiere June 28. 

She warns newcomers of using social media to sell, which can draw super fans as well as haters. 

"It’s really nice to meet so many of my collectors, especially this week at NFT NYC," Vittoria said, while saying the native-New Yorker in her cringes at the thought of being in Times Square. 

"The biggest difference in [engagement] is the difference between Web2 and Web3. Before it was like broadcasting, 'hello fam I hope you like.' Twitter feels like chatting with people who have become friends and have an interest in art in general," she said. 

There are plenty of less effusive reactions: "I was like 'here are my NFTs!' And people were like 'you’re a horrible person'.” There are a lot of hot takes on how NFTs are scams and Ponzi schemes," she said. 

Bottom line: "It's been life-changing," she said. 

Amber Vittoria, an artist freed by NFTs

The NFT boom of 2021 fed creatives, but a downturn in coin values threatens what she refers to as "the digital art renaissance"

Photo illustration: Aïda Amer/Axios. Photo: Amber Vittoria

Artist Amber Vittoria&#x27;s step into the nonfungible token world helped her go &quot;fully abstracted.&quot; Think ribbons of color or shapes scattered across the page.Why it matters: The NFT boom of 2021 fed creatives. As coin prices took off, a marketplace where those coins could be spent blossomed. A downturn in coin values threatens what Vittoria refers to as &quot;the digital art renaissance&quot; — also the name of the <a class="gtmContentClick" data-vars-link-text="panel " data-vars-click-url="https://emamo.com/event/nftnyc/s/the-digital-art-renaissance-nfts-and-the-evolution-of-the-fine-art-world-WjELga" data-vars-content-id="31c261f8-9681-4acf-a954-5d1d9db144cf" data-vars-headline="Amber Vittoria, an artist freed by NFTs" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://emamo.com/event/nftnyc/s/the-digital-art-renaissance-nfts-and-the-evolution-of-the-fine-art-world-WjELga" target="_blank">panel </a>she led at NFT NYC.

Kraken wants to hire more than 500 people to fill open and soon-to-be-open positions at the crypto exchange  — only it comes with a disclaimer about company culture that job hunters might want to be aware of. 

Why it matters: Signs of a bear market are all around, including the rash of layoffs over the last couple of weeks. That makes crypto job hunters, especially those who were disappointed lately, susceptible to leap before looking.

Driving the news: A number of crypto firms, most recently Coinbase, said they would be cutting headcount, slowing hiring or a combination of both due to a tough economy and a looming crypto winter. 

They said what: Kraken boss and co-founder Jesse Powell in a Twitter thread Wednesday contextualized the hiring news by discussing company culture and calling out a few employees who are "Great talent, bad fit." 

Kraken said it expanded its permanent benefits to "make moving on a bit easier" via a transition program.

"In addition to the hundreds of roles we have open, we’ll also be rehiring for positions that become vacant as a result of the transition program," the firm said. 

"When things were rosy, everybody got along. When things started to look grim, insensitivities and the misalignment came through. People focused on minor slights, first world problems rather than our really big, important Mission to help billions of people," Powell tweeted as part of the thread on culture. 

Powell also tweeted that only 20 out of the company-wide 3,200 were "totally not on board" with a recent attempt to summarize Kraken company culture. 

Of the five things Powell listed that "the 20" were upset about included diversity, equity and inclusion; pronouns; "whether someone can identify as a different race and be allowed to use the N-word" and "being 'harmed' by 'violent' words." 

Crypto firms are global by nature — a valid point Powell makes — and those who aren't familiar with American values in regards to diversity and inclusion may not agree with them by virtue of living in a place or region that may approach those issues differently.

Kraken's 10 "Tentaclemandments" is laid out like a company bible and puts a premium on radical transparency.

For those who don't remember, the term was popularized by Bridgewater's Ray Dalio and his book of principles for the hedge fund's employees. (The culture there has also been subject to scrutiny.)

Recall Coinbase CEO Brian Armstrong penned an eerily similar post in September 2020.

The intrigue: Powell mentioned that an insider is likely "in breach of their NDA" because an unnamed journalist is expected to publish a story he characterized as a "hit piece" coming soon.

We're not sure what they're saying, but perhaps we will soon.

The bottom line: "The ideal Krakenite is thick-skinned and well intentioned," according to Kraken.

Our thought bubble: Pretty smart to preempt a potential bad review. 

Kraken's hiring spree comes with disclaimer

The company wants to hire, thin-skinned people need not apply.

Illustration of a tentacle about to shake hands. 

Kraken <a class="gtmContentClick" data-vars-link-text="wants to hire" data-vars-click-url="https://twitter.com/krakenfx/status/1536923296402288640" data-vars-content-id="3dd58131-db77-4f3a-ac69-0eb2ffeb90dd" data-vars-headline="Kraken&#x27;s hiring spree comes with disclaimer" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://twitter.com/krakenfx/status/1536923296402288640" target="_blank">wants to hire</a> more than 500 people to fill open and soon-to-be-open positions at the crypto exchange — only it comes with a <a class="gtmContentClick" data-vars-link-text="disclaimer " data-vars-click-url="https://blog.kraken.com/post/14372/kraken-announces-global-hiring-push-and-commitment-to-crypto-first-culture/" data-vars-content-id="3dd58131-db77-4f3a-ac69-0eb2ffeb90dd" data-vars-headline="Kraken&#x27;s hiring spree comes with disclaimer" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://blog.kraken.com/post/14372/kraken-announces-global-hiring-push-and-commitment-to-crypto-first-culture/" target="_blank">disclaimer </a>about company culture that job hunters might want to be aware of. Why it matters: Signs of a bear market are all around, including the rash of layoffs over the last couple of weeks. That makes crypto job hunters, especially those who were disappointed lately, susceptible to leap before looking.

Ben Armstrong, aka "BitBoy Crypto," is a YouTube influencer who has taken payment to promote crypto. Everyone knows this, and he does not deny it. But what has him riled up lately is something he's both publicly endorsed and used as a customer.

That something is the crypto lender Celsius.

We dig into his gripes, because even a huckster can shed light on a volatile situation. 

"Our money has been mismanaged," Armstrong tells Axios. 

What's happening: Armstrong whipped up a tweet storm to complain about Celsius after the platform suspended withdrawals, among other services. We discussed Celsius' halt last week. 

Since that halt, Celsius has yet to resume transactions, though the embattled crypto lender posted a statement Monday, saying stabilizing operations is a "process that will take time."

Celsius did not immediately respond to Axios' request for comment Tuesday.

Armstrong's grievance with Celsius stems from a pair of crypto-collateralized loans, denominated in bitcoin and ethereum (ETH), which he took out using the platform. 

"Tuesday night my business partner says, 'We need to talk about the ETH loan. We can’t use the money in our account, because it's frozen,'" Armstrong tells Axios. 

With markets roiled and crypto values plunging, debtors are being asked to top up their accounts or risk having their assets seized and their accounts closed out by lenders. 

"I’m waking up with Celsius sweats," Armstrong told Axios in the days leading up to eventual liquidation of his ETH loan. "I'm thinking, 'By the time you open your eyes, you’re going to get liquidated.'" 

Armstrong says his account totaled roughly $3 million before the liquidation. 

One thing Armstrong could have done, he says, was use coins he had in his account to address his ETH loan. But first he'd have needed to convert them into coins of the loan denomination. 

And because Celsius had suspended swaps and transfers, the only way he could address a margin call was to send the lender more money, Armstrong said. 

"Whether you are able to internally pay the loan-to-value or naive enough to send more money in, you’re probably never gonna get your money back," he said. 

Armstrong plans on suing Celsius, but has dropped the idea of leading a class-action lawsuit against the firm. 

Big picture: For some, the multi-billion-dollar question is whether Celsius will file for bankruptcy — and if it does, what type of bankruptcy proceeding it'll pursue. That's according to Robert Honeywell, bankruptcy partner at K&L Gates.

The type of bankruptcy proceeding would be determined by what the business is, which is ill-defined in an industry that remains unregulated. 

Context: Celsius reportedly hired restructuring attorneys last week. 

"You’re a stockbroker, a commodity trader, a banker or an insurer. If you’re not one of those, you’re everything else," Honeywell quipped. 

The intrigue: "The customer wants that crypto account balance to get priority treatment," Honeywell said. But priority treatment only goes to those in specialized cases — for example, when a customer holds a securities account.

"We also have a strange situation where some crypto companies might be deemed to be offering securities, but others deemed currency," Honeywell added. 

Bottom line: "Not your keys, not your coins" is the lesson for Celsius customers. It's better to hold your coins in your own wallet, rather than an exchange or platform.

Crypto influencer wakes up "with Celsius sweats"

With crypto values plunging, debtors have to top up their accounts or risk losing assets.

Photo illustration: Sarah Grillo/Axios. Photo courtesy Ben Armstrong

Ben Armstrong, aka &quot;BitBoy Crypto,&quot; is a YouTube influencer who has taken payment to promote crypto. Everyone knows this, and he does not deny it. But what has him riled up lately is something he&#x27;s both publicly endorsed and used as a customer.That something is the crypto lender Celsius.

Circle Internet Financial, the issuer behind the second-largest stablecoin pegged to the U.S. dollar, is aiming for stablecoin dominance with a second offering — one pegged to the euro. 

Why it matters: Circle's USDC dollar coin has a near $60 billion market capitalization and is rapidly closing in on Tether's USDT. Now, Circle is launching Euro Coin (EUROC), which like USDC, will be backed by full reserves, the firm said. 

Situational awareness: The euro-pegged stablecoin market is small compared to USD stablecoins'.

Total circulation of euro-denominated stablecoins is just $129 million as of June 16, according to data compiled by CoinMarketCap.com, compared to $156 billion in dollar-denominated stablecoins.

For example, Euro Tether's market capitalization is just under $220 million, dwarfed by USDT's $70 billion.

Driving the news: Circle on Thursday said it would launch Euro Coin as an ERC-20 standard token on the Ethereum blockchain on June 30. 

Details: Exchanges like Binance US, Bitstamp, FTX and Huobi Global will support the coin, as well as DeFi players Compound, Curve, DFX and Uniswap.

Custodians include Anchorage Digital and Fireblocks. 

Reserves will be held at U.S.-regulated institutions like Silvergate Bank, a unit of Silvergate Capital.

"Euro Coin expands opportunities for payments, on-chain FX, trade finance, commerce and broader digital asset markets use-cases," Jared Favole, senior director of communications and policy at Circle, tells Axios.

Flashback: Circle is set to merge with blank-check company Concord Acquisition Corp. in a re-cut deal valuing the company at $9 billion. 

In early June, Concord extended its deadline to close the deal by 6 months, from June 10 to December 10, according to a filing. 

Post-merger Circle will trade under the symbol "CRCL."

What they're saying: "We must have a choice against just dollar stablecoins. As good as they are, dollar stablecoins are dependent on the dollar ecosystem," Keld van Schreven, cofounder and managing director of leading London-based crypto investment public company KR1, tells Axios.

"We need euro pairs with btc, ether, dot, atoms, sol, and other major crypto. A euro stablecoin will expand the whole crypto ecosystem and bring in a huge amount of liquidity."

Regulators and lawmakers in Europe are poised to set up rules for stablecoin issuers. The Markets in Crypto Assets, or MiCA, legislation is poised to be finalized, setting common rules for 27 member states. 

Businesses can start minting Circle's Euro Coin by depositing euros into their Circle Account using Silvergate's Euro Sen Network. 

What's next: Euro Coin will eventually launch on other blockchains, according to Circle. 

Also, additional deposit options are expected later this year. 

Our thought bubble: The market has not shown a burning desire for euro-backed stablecoins... yet.

Editor's note: This story has been updated to include comments on the benefits of a euro stablecoin from KR1's Keld van Schreven.

Circle to test growing stablecoin dominance

Circle's USDC dollar coin is rapidly closing in on Tether's USDT — now it is launching Euro Coin also backed by full reserves.

Illustration of the zero on a euro bill replaced with the logo for Circle Internet Financial.

Circle Internet Financial, the issuer behind the second-largest stablecoin pegged to the U.S. dollar, is aiming for stablecoin dominance with a second offering — one pegged to the euro. Why it matters: Circle&#x27;s USDC dollar coin has a near $60 billion market capitalization and is rapidly closing in on Tether&#x27;s USDT. Now, Circle is launching <a class="gtmContentClick" data-vars-link-text="Euro Coin" data-vars-click-url="https://www.circle.com/en/euro-coin" data-vars-content-id="99198568-a5a4-4646-ab9f-f301ed7c04f4" data-vars-headline="Circle to test growing stablecoin dominance" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.circle.com/en/euro-coin" target="_blank">Euro Coin</a> (EUROC), which like USDC, will be backed by full reserves, the firm said.

Sections

Axios Local

Axios gets you smarter, faster with news & information that matters.

About

Subscribe

Crystal Kim

Stories

Amber Vittoria, an artist freed by NFTs

Crypto influencer wakes up "with Celsius sweats"

Circle to test growing stablecoin dominance

Crypto execs cut their own pay as layoffs mount

Kraken's hiring spree comes with disclaimer

Newsletter editions

🐵 Jenkins the Valet

👼 New Ethereum

🗽 Membership privileges

🤾‍♂️ DARPA's take

😰 "Waking up with Celsius sweats"