🧘‍♂️ALERT: This Changes Everything

Dear Meditators

Yesterday, Twitter’s board unanimously agreed to sell Twitter in its entirety to Elon Musk for a deal valued at $44 billion. This changes everything.

When news of the deal broke yesterday, Musk tweeted a statement, saying he was committed to “defeating the spam bots”, and “authenticating all humans”, as well as adding new features and making the algorithms open source.

Today’s newsletter will deep dive into the Twitter deal and another topic Musk has been very vocal about: the environmental implications of cryptocurrency.

Today’s Meditations: 

• Green Crypto
• Elon Musk x Twitter Explained
• BAYC Instagram Hack

⏰ Top Headlines

• Founders from a16z, Solana and more back new billion-dollar crypto fund
• Web3 solutions aim to make America’s real estate market more accessible
• CFPB invokes old rule to expand authority over fintech and crypto firms
• Fireblocks expands institutional access to Terra’s DeFi ecosystem

? Un-Earthing the Truth

In honour of Earth Day, today’s Big Idea explores initiatives that aim to make cryptocurrency more sustainable. Earth Day is celebrated on April 22 every year with an aim to preserve and conserve planet earth and its biodiversity.

1️) Proof of Stake Mechanisms

ETH 2.0 will move from the current PoW mechanism to a consensus mechanism known as proof-of-stake (PoS). According to a recent research report conducted by Carl Beekhuizen, it is estimated that Ethereum will use at least 99.95% less energy after the switch.

2️) Renewable Energy Sources 

ExxonMobil is the top oil and gas producer in the U.S. According to people with knowledge of the matter, they have been running a pilot program to mine bitcoin in North Dakota since late January 2021. To put it simply, the energy from flames one may see rising from oil fields is being redirected to mine bitcoin. (click here to learn more). While this may not be the renewable energy environmental activists were searching for, it is a way to solve two problems at once by finding a use for the otherwise wasted energy.

3) Innovation Amongst Cryptocurrencies

Many of the biggest cryptocurrencies are exploring green initiatives:

• Algorand. As reported in last Thursday’s issue, Algorand, the PoS blockchain protocol will begin offsetting its network’s carbon emissions by using a portion of its transaction fees to purchase carbon credits at ClimateTrade. Carbon credits are permits that allow the owner to emit a certain amount of greenhouse gas and were originally devised as a mechanism to reduce emissions.
• Near. Near Protocol managed to offset its first year’s emissions through documented, verifiable, tree planting and reducing subsequent emissions.

✅ TIP: The need for climate solutions is only becoming more significant over time. Being climate-friendly is a positive when it comes to researching and selecting cryptocurrencies. Keep an eye out for it.

4) Blockchain Solutions For Companies

Samsung announced its intention to plant mangroves in Madagascar to help offset their carbon emissions. They are partnering with Veritree, a blockchain technology company that helps track and account for every tree that is planted (‘Proof of Tree’, if you like).

Cryptocurrency is an explosive and pragmatic industry. Climate change does not present a problem but rather, an opportunity to innovate and build solutions. Something the industry has done time and time again.

? Out of the Twitter Blue

Yesterday Twitter’s board approved a $44 billion deal to buy Twitter and take it private. How did this come about and what could it mean?

• Just over three weeks ago a filing revealed that Elon Musk had bought a 9.2% share of Twitter stock, making him the largest shareholder in the company.
• Days later it was revealed that Vanguard had pushed him down into second place with an additional purchase, although it is unclear whether this was made with prior knowledge.
• Observers were then confused when Musk changed his mind and turned down an offer to join the Twitter board, having acquired enough shares to be invited.
• It turns out that board members are limited in their shareholdings, and so Musk shifted gears by making an unsolicited offer to buy the whole company.
• Called a hostile takeover, it is against the wishes of current management, including CEO Parag Agarwal, who took over from Jack Dorsey last year.
• However the board, who should always act in the best financial interests of shareholders, met with Musk this weekend and approved the deal.
• What this means for the possibility of layoffs for current employees is unclear, and Agarwal was unable to answer many questions in a Monday town hall meeting.
• When news of the deal broke yesterday, Musk tweeted a statement, saying he was committed to “defeating the spam bots”, and “authenticating all humans”, as well as adding new features and making the algorithms open source.

Never a dull moment for the world’s richest man. But with great power, comes great responsibility.

? Bored Ape Hack Club 

On April 25th, according to a post by the official Bored Ape Yacht Club’s (BAYC) Twitter account, the most prestigious club in the metaverse has been compromised once again.

• The hacker was successfully able to take control of the official BAYC Instagram and posted a link to a fake land airdrop website, supposedly linked to the anticipated BAYC metaverse, “The Otherside”.
• The fake webpage showed a graphic that read “airdrop now” before prompting users to connect their metamask wallet.
• @zachxbt identified the hacker’s wallet address and mapped out the path that was used in the attempted getaway via a report on breadcrumbs.
• The hacker was able to successfully steal 4 BAYC, 7 MAYC, 3 BAKC, 1 CloneX, & more leading to a total of 91 NFTs stolen.
• With the current floor prices, the 14 BAYC ecosystem assets alone are worth at least 870 ETH or $2.6 million.
• The club’s co-founder @CryptoGarga took to Twitter to reassure the community they will be in contact with affected users and stated that “nothing important will ever be posted on Instagram again”.

This should serve as another reminder of the importance of tight security when operating in the crypto space. To stay up to date with the best practices and better protect your digital self, be sure to check out our Crypto Security Guide.

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??‍♂️✍️ Stories in this newsletter were written by Isambard FA, Kai.A, Nick T., Max P., Kimia K., Ellen B. and Koroush AK. Graphics were produced by Ellen B.

Not financial or tax advice. The content in this newsletter is for informational purposes only. Nothing in this email is intended to serve as financial advice. We are not financial advisors. Every investment and trading move involves risk. Do your own research when making a decision. See our important security disclaimers here.

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