Ember Nuggets - Wonderland and BTC Legal Tender

Hi Ember Crew,

With the recent pullback in the market, we just wanted to drop a line and reassure you that everything is ok! With any explosive parabolic market, you will always have healthy corrections. In the meantime, don't forget to continue stackin' sats!

Nugget 1: DeFi rattled with Doxxed Co-Founders with Checkered Past

The markets have had a volatile start to 2022 and a lot of volatility is now coming from the drama on crypto twitter. Earlier this week, an anon account run by Zach (zachxbt.eth) doxxed one of the co-founders of Wonderland (Time), an OHM fork on Avalanche.

Zach, the anon account, discovered the co-founder of Wonderland, OxSifu is Michael Patryn. The account also confirmed the allegations with co-founder Daniel S. Michael Patryn’s background is worrisome for many investors since he was actively involved in such a large project and managed the CFO/treasury duties for the Wonderland protocol.

Some select allegations against Michael Patryn:

Co-Founded the Canadian crypto exchange QuadrigaCX, which is now defunct, and lost ~$170M of user funds

Plead guilty to conspiracy to commit bank and credit card fraud

Served time in the US for running an online identity theft ring

Michael Patryn was able to reinvent himself in the DeFi space as anon online identity OxSifu. The ripple effects in crypto have shook Wonderland and its token TIME which has sold off 60% over the past week, however, recovering 21% over the past 24 hours with 0xSifu stepping down.

It will be interesting to see how the crypto community responds to large projects with anon leaders going forward, and how regulatory agencies may take advantage of the current news cycle to clamp down on the sector in the future.

Nugget 2: Bitcoin as legal tender in Arizona?

Senator Wendy Rogers of Arizona introduced a bill in the state legislature to make Bitcoin a legal tender in the state of Arizona. It is interesting to see how certain politicians and states are responding to the growing prevalence of cryptocurrencies. If the bill passes, it would go into effect Dec 31, 2022. We will keep an eye out on how this story progresses.

An excerpt from the bill:

"Cryptocurrency" mean any form of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of monies, operating independently of a central bank, including Bitcoin, Ethereum, Litecoin and Bitcoin Cash.

Thank you for reading!

Harsharn Singh
Investment Associate | Ember Fund

What are Ember Nuggets?

Ember Nuggets are a weekly update with commentary from the investment team on what’s happening within the crypto market - news, developments, market trends, and more.



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