Polkadot DOT preparing for liftoff at the end of 2021?! 🚀 | ETH deflatioanary BEFORE Ethereum 2.0?!

Ladies and gentlemen, people of the internet,
welcome back to yet another episode of Crypto over Coffee! I hope you are doing well! If you’re new here, every Saturday we break
down the latest news and hottest topics in the world of technology and cryptocurrency
over a cup of delicious coffee. That being said, in today’s episode I’m
talking about the bull case for Polkadot, deflationary ETH, blockchain gaming, our usual
“404 logic not found” segment, and more so make sure you stick around for all the
updates. If you like crypto, please subscribe to the
channel and hit the bell button or follow the podcast on your platform of choice so
you can get a heads up whenever I post new episodes of Crypto Over Coffee.

Just a friendly reminder, please be aware
of scammers in the comments posing as me and other crypto youtubers. I do not have a Whatsapp and will not ask
you to contact me. If the comment does not have the name highlighted
like you see here, it is not me, and you can report them. Be safe out there! Now in partnership with the folks at Keystone,
I give away a Keystone Tablet steel seed phrase backup in every episode by picking a random
comment from the video and one Keystone hardware wallet per month.

Just for transparency, the product is only
available in select regions, so if you win and are from an unsupported region, I will
send you some BTC instead. The winner of last week’s giveaway for the
Keystone is…. Big congratulations to you and of course,
I will be in touch! Now, my friends, let's kick it off today with
a little crypto market update like we do on this show every week. This week has been one of those sideways,
boring weeks in crypto, with not much insane price action to report besides I guess the
Squid Game token getting rugged, which is just another sad example of a memecoin going
kaput in a matter of minutes. That aside, Bitcoin held the line above $60k
and Ether remains at around $4500 which is duly impressive to be honest. Altcoins have been a mixed bag overall, with
very little to show for in terms of big moves. That said, in light of the infrastructure
bill passing with the shambolic crypto provisions in place, I think the markets are actually
in a good place.

On that note, there is no need to panic as
we have ‘til 2024 to fix this mess and we will continue that effort until it is rectified. There are opportunities to amend the provisions
and also to fight any of these rules in court, so we shall see what happens. For now, let’s cross our fingers that the
markets can absorb the fear here and we can get back to our regularly scheduled programming,
in other words, let’s get back to some positive price action. Only time will tell, but for now, stick to
your plans folks. Alright, a
few weeks ago I covered the exciting news that the Polkadot parachain auctions would
kick off on November 11th, marking the biggest launch milestone in Polkadot history. Parachains, for those unfamiliar with the
term, are purpose-built blockchains built on the Substrate blockchain framework that
can interoperate with one another on the Polkadot network via a shared layer-1 called the relay
chain. Each parachain can vie for one of the limited
slots in the Polkadot network by essentially leasing that spot with the highest bid, and
right now these parachain projects are facilitating crowdloans from their communities to build
up the funds to bid on the first slots in the auction on November 11th.

Crowdloans refer to the process of raising
funds from DOT holders in return for some type of reward mechanism, and the funds raised
for the crowdloans go towards the slot auctions like I mentioned before. Now, I could talk all day about the mechanics
of Polkadot and parachains, but that’s a video for another day. I am here to talk to you about what this means
for the Polkadot project in general – first of all, Polkadot has done well in the market
based on its potential, but now it can really be set loose because it will have real tangible
value flowing through it once Parachains begin to go live after auctions are complete. You will have DeFi powerhouses like Acala
Network and smart contract platforms like Moonbeam bringing liquidity and utility to
Polkadot should they land one of the parachain slots as many expect they will. One of my favorite contenders is Manta, who
is building a much needed privacy-focused network on Polkadot.

I mean, this is an entire universe that will
begin to expand starting in November, this is just the beginning. Technologically, Polkadot’s first parachain
has already gone live in the form of the Shell parachain, which is foundational to the core
operations of the network like block production. Right now, the Shell parachain is just a shell
of what it will soon be (see what I did there?), but it will gradually evolve into its fullest
form, dubbed Statemint, which will perform the aforementioned core functions on the Polkadot
network when parachains go live and connect to one another on the relay chain. All of this suffices to say that one of my
biggest plays this past few years has been loading up into Polkadot and biding my time
until this day comes where everything begins to come together for the project. I am an interoperability guy, I believe in
this technology and its anti-maximalist ethos – because of that, I think that Polkadot is
fueling up to truly launch itself to new heights.

In other news, something rather significant
happened in the Ethereum world recently, as the fee-burning mechanism implemented in EIP
1559 resulted in a full week of consecutive negative issuance. In other words, the total burnt ETH by way
of transaction validation on the network outweighed the 2 ETH issuance from the block subsidy,
resulting in a week of deflationary forces on the supply of Ether. Myself and many others postulated when EIP
1559 launched that we might see a window of hours or maybe a day or two of this type of
behavior on Ethereum, but would not see any type of true, longer term deflationary movement
in Ether’s supply until Ethereum 2.0 comes to fruition and shifts the economics of the
network. However, I’m surprised to see a full week
of negative issuance like we did recently.

This brings to fore a few big thoughts for
me; first it makes it that much more clear that Ethereum cannot scale even close to the
levels that the demand warrants. This means that block space is still at a
huge premium and fees are still sky high, but you already know that. For the network to be running at high burn
rates like this for so long just reinforces this. Second, this burning does support the idea
the Ether could be net deflationary in a holistic way when Ethereum 2.0 ships, it’s not a
guarantee in my opinion, but there is now evidence that it will play out like that. And third, the price of Ether is likely to
react to this news, particularly if the negative issuance trend continues with sky high demand
for Ethereum block space for DeFi, NFT’s and gaming. This is adding to the bull case for Ethereum
if you ask me, but that doesn’t change the fact that the poor accessibility for avg.
users on Ethereum right now is untenable. Ethereum 2.0 can’t come soon enough. Well, I just mentioned gaming and NFT’s,
and I think this story or well two stories are worth mentioning.

Firstly, I read an article this week about
Electronic Arts, or EA as most people know them, discussing the future of the gaming
industry and alluding to openness to entering the fray related to blockchain gaming and
play to earn. In the recent earnings call for EA, CEO Andrew
Wilson called games with NFT’s and play-to-earn features “the future of the gaming industry”,
which is not saying directly they they will imminently enter the space, but that they
are actively looking at it and watching it. To me, this is not surprising, and EA is one
of those game companies that would be best poised to get value from NFT’s and play
to earn. If you look at the pattern of their products
around things like FIFA for example, which is a wildly popular Football game, yes football,
the proper term for soccer. In FIFA, you already have an in-game currency
and in-game items within the extremely popular Ultimate Team mode, and if EA could eek out
revenues from secondary market transactions for those in-game items like player cards
as well as in-game currencies, it would be a huge revenue builder for them.

This is just one example of course, but there
are so so many things that EA could do particularly with its games related to intellectual property
and brands like sporting. They’re not alone either, following this
trend, the huge game studio Ubisoft also expressed its desire to be a leader in this burgeoning
space. GameStop seems to be all-in, surveying the
market and planning their entry.

I mean, we have reached full on FOMO pretty
much, and that will inevitably expose the low effort entries from the winners. That is what I’m looking forward to. Speaking of gaming, actually, and Polkadot
to be honest, wow I’m really tying this episode together aren’t I? One project that I have expressed my admiration
for countless times in the years I’ve been doing this show is Enjin, one of the first
entrants into the NFT and gaming space in blockchain and the creator of the NFT token
standard ERC1155. In the years since Enjin was first created,
they have expanded work on several awesome projects, but one stands out in particular,
and that is Efinity. Efinity is a purpose-built, Polkadot compatible
blockchain that will deliver on a vision for a low-to-no-fee network for minting and exchanging
NFT’s across an interoperable universe of blockchains, and it is one of the projects
I am most excited for that is yet to launch fully. You might now immediately wonder what the
path forward is for Efinity in terms of the upcoming Parachain auctions on Polkadot, and
I’ve got a full video coming on this topic, but here’s the clif notes version: Efinity
is going to aim for a parachain slot late in the first batch of auctions around the
early December timeframe, and it will be facilitating its DOT bond fundraise using a crowdloan mechanism
that incentivizes DOT lenders with a reward rate of around 7.5 to 9.75 EFI tokens per
DOT and exclusive Founder’s edition NFT’s for top contributors.

Those who loan their DOT to help Efinity land
a parachain slot in the fourth stage of auctions will definitely have some cool reward opportunities
to consider. In addition to this exciting path to a parachain
slot, the Enjin team announced the Efinity Metaverse fund of $100M to help catalyze the
development of an open metaverse ecosystem – this fund will be allocated towards developers
building in the NFT and gaming space in an effort to give more opportunities for these
developers to bring their vision to reality.

Really exciting times for the Enjin ecosystem,
and boy, how far have they come since the beginning. Wow. Alright, so let me change gears here a bit
and touch on a tech-focused story that I actually meant to cover ages ago but it kept getting
pushed out, and that is related to the content-focused blockchain network, Theta. A while back, I read a paper about a really
fascinating patent that Theta had been awarded for content caching and delivery in a peer-to-peer
style edge network. In English, Theta has won protection for their
method for delivering high quality video both for live streaming and on demand applications
using a mechanism that is compatible with decentralized networks. It uses a combination of traditional content
delivery network technology and a set of distributed edge network nodes that help distribute content
to 1 to many clients that consume that content. Anyway, how it works for the sake of this
video doesn’t matter as much as the implications of it.

Theta has amassed a pretty impressive suite
of solutions to some of the most challenging elements of a content delivery in a “web3”
world, and it’s only a matter of time before Theta really realizes its vision in getting
each of these components working in harmony together to the extent that their Two weeks ago, Crypto Over Coffee’s headline
story was that Elrond, the highly scalable blockchain network, would be launching its
long-awaited decentralized exchange primitive, the Maiar Exchange. The most common question I got from that video
was of course related to what the specific dates were for the launch, so I figured I
would update you here on that. The launch will happen in a series of phases,
the first of which will be on November 7th when those who have earned the native MEX
token from holding eGLD in self-custody, staking that eGLD etc.

Then, you will be able to provide liquidity
to the platform on November 16th, and shortly thereafter on November 19th you will be able
to farm MEX on the Mair Exchange. I will be very curious to see how the user
experience is, because if the Maiar wallet is any indication, it should be super crisp
and easy to use. Finally, it has arrived, my friends! Now, Ladies and gentlemen, it is time for
“404, logic not found” and for those who are as of yet uninitiated, in this little
firecracker of a segment, I highlight notable tech-related fails or otherwise stupid moves
in the world that need to get some attention. Speaking of attention, if you want to help
this episode of Crypto Over Coffee get some attention from the algorithm robots, please
hit that like button and get subscribed or follow the podcast. It tells those robots that you are enjoying
the content and others might also enjoy it. Thank you for that in advance! [sip] Let me
ask you a question, does it not drive you absolutely crazy when you read marketing copy
that states “the first ever…” whatever it is? Like “Today, we are proud to announce the
launch of our new token, which is the first ever token that represents REAL artwork”,
I mean come on, everyone knows that’s not true, that’s been done a hundred times or
thousand times before.

That is the topic of today, my friends and
it seems petty, I know, but I see it all the time. You have crypto projects that just write bold
faced lies about the ingenuity or originality of their idea, and it’s so unnecessary too! There is nothing wrong with being second,
heck, even third, or 100th, if your product works better than what else it out there,
you have a chance to make a splash. This is definitely NOT a time where Ricky
Bobby’s famous line “if you ain’t first you’re last” really applies. It’s almost as if these teams think no one
will notice when they write something just plain untrue pretending that they’re the
first to do something that’s clearly been done before, and that this lie really helps
promote their project. Here’s what scares me about this, first
of all, we already have a problem with FOMO buying in the crypto market.

I mean people will buy cryptocurrencies they
don’t understand with money they can’t afford to lose from so-called experts musings
on Twitter. When you mix that with blatantly false marketing
and purposefully complex jargon to sound cool, you have a recipe for disaster. People believe what they read, for better
or for worse, and there are ethical rules about how you represent your brand or your
project if you’re a business in this space. Not only that, but being first is not a selling
point! Like really? Are we 11 years old? Oh yeah I was first to finish my PB&J sandwich
or collect all the trophies on Call of Duty.

Being first isn’t the only way to make an
impact, your product has to work and it has to make people realize they can’t imagine
NOT using it. Yeah, being first AND being quality can be
beneficial, but quality comes first. As a community, I think that we should be
holding projects accountable for these instances of manipulative marketing. From my perspective if you’re not able to
produce a compelling marketing pitch about your product without making verbose, fabricated
claims, then either a) your product is not ready to be launched yet, b) it is simply
not a good enough product or c) you need a new marketing strategy. Any deviation from honest marketing practices
to me, is a 404 logic not found. Alrighty, my friends it is time for sponsor
time, which keeps my coffee cup full and the show coming to you every weekend.

First I want to thank the long term sponsor
of Crypto Over Coffee, Ledn, who offer an awesome BTC and USDC savings account product,
collateralized BTC loans, and more! Ledn recently announced an increase in their
interest rate tiers for both BTC and USDC with 6.25% APY for balances up to 1 BTC and
2.25% APY for any balance over 1 BTC. Additionally the USDC interest rate is increasing
to 9.5% APY on the full USDC balance one has in their account. I love seeing rates going up based on market
conditions. And now, as part of a new onboarding program
for new users, you can get $10 in USDC if you make a qualifying deposit of $75 and leave
it in Ledn for 15 days or more by using my link in the description and pinned comment
below. If you want to start earning interest on your
Bitcoin or USDC, definitely give Ledn a look! Thanks. Next I’d like to shout out PlatyPunks, an
NFT project centered around pixel art style platypi of various attributes, and today I
want to share with you some pretty cool news coming out of the PlatyPunks camp about a
sports industry collaboration they’ve put together.

It was announced this week that Brandon Brown,
a NASCAR driver, would have PlatyPunks prominently advertised on the hood of his #68 car today
actually in Phoenix, Arizona. It’s pretty cool to see an NFT project featured
as a sponsor for a sporting club, following suit with other examples of crypto in the
sports industry like Crypto(dot)com, FTX, and others being a big part of sports branding
today. If you want to keep up with the latest on
PlatyPunks, you can check out PlatyPunks at <http://platypunks.com> and follow them on
Twitter as well! Of course I would be remiss if I did not remind
you that NFT’s are highly speculative, often illiquid and there are risks therein, so please
be careful and know the risks before making a decision to purchase any NFT, bearing in
mind local regulations where applicable.

Thanks to PlatyPunks for sponsoring a segment. Alright folks, let's do some community Q&A. I always answer questions from folks who watch
the show, and I’ve got some questions from last week’s episode that I’m going to
answer and want to remind you that if you have a question you want answered, leave them
in the comments below on YouTube, or you can tweet me (at)hashoshi4 as well. Alright, let’s dive into these questions..

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