5 Minute Crypto ⏳ - What are BTC's 7 network effects? Which tokens will OKX list in HK? Why PoW = a clock ⏰; Epic Games; China web3 paper

Howdy everyone — this is the 5 minute crypto update for Friday June 2, hope everyone had a great weekend

Let’s get it on!

—

https://twitter.com/jihoz_axie/status/1664206052471246848?s=46
It’s a list of tokens that OKX exchange will definitely support when retail trading begins again in Hong Kong. The full list:
BTC, ETH, ADA, MATIC, SOL, DOT, UNI, LINK, SAND, LTC, AVAX, AXS, ATOM, XLM, USDT and USDC. Hong Kong users can buy, sell and convert 16 major virtual assets through the app, including BTC, ETH and several others. Tokens can be purchased with HKD, peer-to-peer (P2P) or via ApplePay, Visa and Mastercard through third-party providers

https://twitter.com/JavierAng_/status/1663236315050311680?s=20
Takeaways
-they see web3 as a small part of broader vision of internet 3.0
-tech stack of blockchain, metaverse, AI, AR/VR
-the blockchain platform they mention - ChainMaker - is primarily state sponsored and with approved nodes only
-and curiously, no mention of digital yuan / CBDC

https://twitter.com/flip_research/status/1663512122188513281?s=46
Great thread from Flip Research on how to pick small cap winners
-A clear narrative is important. If it's a complex AF project with niche appeal, doesn't matter how many gigabrains are on the team, no-one will buy it.
-Big VC backing is a double-edged sword. Their goal is to extract as much value out of the protocol as possible, finding ways to psyops you into becoming their exit liquidity.

https://www.coindesk.com/policy/2023/05/30/indias-rbi-intends-to-push-g-20-to-focus-on-cryptos-macro-risks/
According to Coindesk, India’s central bank is apparently pushing the G-20 - where India currently holds the presidency - to more deeply research cryptocurrency especially with respect to “financial stability and integrity to macro-financial and cross-sectoral implications” which is just bureaucrat speak for we’re afraid crypto may disrupt our gravy train

Trace Mayer network fx
https://nakamotoinstitute.org/mempool/the-seven-network-effects-of-bitcoin/
1. Speculation
2. Merchant adoption
3. Consumer adoption
4. Security (miners and hash rate)
5. Developer mindshare
6. Financialization - eating market share of tradfi
7. Adoption as world reserve currency, which to quote: “Eventually all transactions will be settled on the blockchain, including house titles, stock purchases, car titles, and other monetary instruments and currencies”

https://grisha.org/blog/2018/01/23/explaining-proof-of-work/
To quote:
the Bitcoin paper states “To implement a distributed timestamp server on a peer-to-peer basis, we will need to use a proof-of-work system”, suggesting that it primarily solves the issue of timestamping

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4380845
“celebrity-endorsed ICOs are associated with a 23-26 percentage point increase in scams through September 2019 and a 39-40 percentage point increase in fraudulent ICOs through April 2023.”

https://www.theblock.co/post/232424/dormant-15-milllion-wallet-from-ethereum-ico-wakes-up-after-eight-years
OG wallet that participated in Ethereum ICO - investing $2500 when ETH was priced at 31c/token - is now worth almost $15M

https://www.theblock.co/post/232367/ethereum-layer-2-solutions-fees
ETH L2s are paying record fees to ETH main chain
In May, they paid 9000e or $16M
Arbitrum paid the most, followed by ZKSync

https://twitter.com/Mani_NFTz/status/1662420624315396097?s=20
Epic Games is the Fortnite creator founded by Tim Sweeney in 1991 with a current estimated value of $32B and 700+ players
Some NFT games they’re launching include a mafia-themed first person shooter, and an open world MMORPG

—

That’s it for today! All the links are in the show notes. You can follow