In this week’s edition:

• ⚔️ Aave and Polygon feud over yield proposal.

• 📰 CoinDesk drama after Justin Sun article pulled.

• ⚖️ Coinbase and Bit Global fight over wBTC.

• 🚫 Crenshaw out as Senate cancels SEC vote.

• 💸 FTX to start creditor payouts in January.

• 💵 Ethena launches BlackRock-backed stablecoin.

• 🐧 PENGU airdrop tanks Pudgy Penguins NFT prices.

• 📊 MicroStrategy joins Nasdaq 100 index.

Why Robinhood CEO Vlad Tenev Is Betting Big on Crypto, Stablecoins, and Prediction Markets

Robinhood’s crypto business is on a tear, having quintupled post-election. CEO Vlad Tenev shares his vision for how to marry TradFi and crypto, and what role stablecoins, staking, and prediction markets will play.

In this episode of Unchained, Robinhood CEO Vlad Tenev offers a rare glimpse into the company’s strategy. How did memes like Dogecoin become one of Robinhood’s biggest assets, onboarding millions of users? What drove its decision to embrace stablecoins, staking, and a dedicated crypto wallet—and what risks do these moves carry?

As Europe’s MiCA regulations set the stage for a global crypto framework, Vlad discusses how Robinhood is positioning itself for growth, the role of prediction markets, and why blockchain could dramatically lower costs for investors. He also shares personal insights from his own experiences with hyperinflation, revealing how stablecoins might safeguard wealth for millions around the world.

With crypto ETFs, regulatory shifts, and a new administration looming, here’s what he thinks is next for Robinhood—and the crypto industry.

Listen to the episode on Apple Podcasts, Spotify, Pods, Fountain, Podcast Addict, Pocket Casts, Amazon Music, or on your favorite podcast platform.

Weekly News Recap

Aave and Polygon Clash as Yield Proposal Sparks Tensions

A brewing rivalry between OG protocols Aave and Polygon took center stage this week after Polygon introduced a governance proposal to allocate $1.3 billion in bridged stablecoins into Morpho, a competing lending protocol. The plan aimed to generate $70 million in annual yield,but faced sharp criticism over potential risks and competitive implications.

Marc Zeller of the Aave Chan Initiative (ACI) responded with a proposal urging Aave to disengage from Polygon. Suggested measures included freezing asset reserves and restricting borrowing on Aave’s Polygon deployment, citing bridge vulnerabilities that have historically led to significant user losses. Zeller emphasized that such risks made continued collaboration untenable, pointing to past exploits such as the Harmony and Multichain bridge hacks.

Polygon’s community ultimately rejected the Morpho proposal, citing concerns over added risks and the lack of user opt-in mechanisms for bridged asset investments. Despite this move, tensions escalated when Polygon co-founder Sandeep Nailwal accused Aave of monopolistic behavior, calling the withdrawal proposal “anti-competitive” and undermining innovation in Web3.

Aave’s founder Stani Kulechov defended the governance decision, arguing that prioritizing user security was central to the DAO’s responsibilities. However, the clash has left both sides at odds, with Aave’s potential exit still under discussion.

Editorial Tensions Rise at CoinDesk Following Ownership Dispute Over Justin Sun Article

According to a report by Fortune, crypto news outlet CoinDesk is grappling with internal tensions after its new owner, crypto exchange Bullish, reportedly pressured the publication to remove a controversial article about Tron founder Justin Sun. The article, published in late November, detailed Sun’s purchase of a $6.2 million banana artwork and his subsequent stunt of eating it, alongside his ongoing legal battles and allegations concerning Tron’s use in illicit financing.

Following complaints from Sun’s team about the piece’s tone, Bullish, which acquired CoinDesk for $75 million last year, allegedly directed the outlet to take the article offline. The move led to protests from CoinDesk journalists, who raised concerns about editorial independence during a meeting with Bullish CEO Tom Farley and CoinDesk CEO Sara Stratoberdha. While the article was removed from CoinDesk’s site, it remains available through Yahoo News syndication.

The fallout has already prompted changes, including the resignation of Matt Murray, chair of CoinDesk’s editorial committee and former editor-in-chief of The Wall Street Journal. Murray stepped down on Monday, as reported by Fortune. His exit comes amidst Bullish’s announcement of a planned initial public offering, further complicating CoinDesk’s operational dynamics under its new ownership.

Judge Rules Against BiT Global in $1 Billion Lawsuit Over Coinbase’s wBTC Delisting

A U.S. District Court has denied BiT Global’s request for a temporary restraining order to prevent Coinbase from delisting Wrapped Bitcoin (wBTC), clearing the way for the exchange to remove the token as planned. The ruling is a setback for BiT Global, which filed a $1 billion lawsuit accusing Coinbase of anti-competitive behavior after it announced plans to delist wBTC following its transition to a new custodian.

BiT Global, which took over wBTC custody in partnership with BitGo, argued that Coinbase’s actions, including the promotion of its competing wrapped bitcoin product cbBTC, would cause “imminent and irreparable harm.” However, Judge Araceli Martínez-Olguín rejected the request.

Coinbase defended its decision, citing its right as a private company to control its listings. A representative told The Block, “The idea that we’re like a water or electrical company, a utility that you have a right to plug into, is just bogus.” They also noted that Coinbase accounts for less than 1% of wBTC trading activity and dismissed the claims as “ foolish.”

Crenshaw’s SEC Reconfirmation Bid Ends as Senate Cancels Vote

The Senate Banking Committee has canceled the vote to reconfirm Caroline Crenshaw as an SEC commissioner, effectively ending her tenure. Initially delayed last week after Republican lawmakers opposed her nomination, the vote was rescheduled but ultimately canceled due to a lack of sufficient support, according to a report from Decrypt citing sources familiar with the process.

Crenshaw, a prominent figure in the SEC’s regulatory approach to digital assets, faced vocal opposition from crypto industry advocates. Groups such as the Blockchain Association and DeFi Education Fund led campaigns to block her reappointment, citing her tough stance on crypto regulation. Coinbase CEO Brian Armstrong also publicly called for her removal.

With Crenshaw’s term expiring and SEC Chair Gary Gensler and Commissioner Jaime Lizárraga stepping down in January, President-elect Donald Trump will oversee the appointment of three new commissioners.

FTX to Begin Creditor Distributions in Early January

FTX’s bankruptcy estate announced that its court-approved Chapter 11 reorganization plan will take effect on Jan. 3, 2025, paving the way for creditor distributions to begin. The plan, which was first approved in October, allocates between $14.7 billion and $16.5 billion for repayments.

According to CEO John J. Ray III, “We are well positioned to begin executing the distribution of recoveries back to all customers and creditors, and encourage customers to complete the necessary steps to begin receiving distributions in a timely manner.”

FTX has partnered with Kraken and BitGo to manage the distribution process. Creditors can receive their payouts in stablecoins by converting fiat funds into digital assets via the FTX claims portal.

The “initial distribution” phase is expected to occur within 60 days of the plan’s effective date.

Ethena Launches USDtb and Partners With Trump’s World Liberty Financial

Ethena Labs has announced the launch of its new stablecoin, USDtb, a project backed by BlackRock’s BUIDL fund, which manages over half a billion dollars in U.S. Treasury bills. USDtb marks a shift from Ethena’s flagship USDe token, offering a more traditional asset-backed model. Unlike USDe, which uses market-driven derivative strategies, USDtb maintains its dollar peg through reserves equal to each USDtb token issued, over 90% of which are held in BlackRock’s tokenized fund.

In addition to its launch, Ethena disclosed a partnership with Trump-backed World Liberty Financial (WLF). The collaboration integrates Ethena’s staked USDe token (sUSDe) into WLF’s Aave instance, enabling users to deposit sUSDe and earn rewards in both Ethena’s tokens and WLF’s native token. Ethena has proposed sUSDe as a new collateral asset for WLF, with co-incentivized rewards expected to boost stablecoin liquidity and utilization across the platform.

We had Ethena Labs’ founder Guy Young on the show this week, be sure to check it out if you haven’t yet!

PENGU Airdrop Shakes Up Pudgy Penguins NFT Market

This week saw another airdrop make waves as the PENGU token launched alongside a dramatic shift in the market for Pudgy Penguins NFTs. The token, tied to the popular collection, debuted on Solana with a fully diluted valuation of $2.6 billion, quickly gaining over 200,000 holders. However, the launch caused the floor price of Pudgy Penguins NFTs to plummet nearly 50%, from 30 ETH to around 15.9 ETH, as holders rushed to claim their tokens. The drawdown is likely because NFT holders no longer felt the need to retain their tokens after claiming the airdrop.

Each Pudgy Penguins NFT entitled its owner to 1.7 million PENGU tokens, valued at approximately $50,000. This broad distribution extended beyond NFT holders, with allocations for Ethereum and Solana users and a portion reserved for the Pudgy community. Despite some transactional hiccups on Solana during the claim process, the launch was hailed as a significant milestone for the brand’s expansion, following its growth across retail and social media.

MicroStrategy Joins Nasdaq 100 Following Massive 2024 Bitcoin Rally

This week saw another milestone for MicroStrategy, as the company was announced as a new member of the Nasdaq 100 index, effective Dec. 23. Known for its aggressive bitcoin holdings, MicroStrategy has increasingly become a proxy for the cryptocurrency, with its shares rising more than 500% this year, far outpacing bitcoin’s 140% gain.

The inclusion in the Nasdaq 100 means ETFs such as the Invesco QQQ Trust, which manages $325 billion in assets, will now automatically buy MicroStrategy shares.

Economist Alex Kruger, speaking on this week’s Bits + Bips podcast, described the ripple effect of this addition: “Anytime anybody buys the Nasdaq either via ETFs or mutual funds or futures, you're literally buying MicroStrategy. What it does is it enables Saylor to sell more shares and to buy more Bitcoin. It’s simple math.” Kruger added that this dynamic could reverse under extreme market conditions, potentially creating a self-fulfilling cycle.

New Blockchain Projects Signal Strategic Moves Across the Industry

Three blockchain initiatives made headlines this week with notable launches and developments that showcase different approaches to advancing decentralized technology.

Sonic Labs, a rebrand of the Fantom Foundation, officially launched its layer 1 blockchain, Sonic. The new network is compatible with the Ethereum Virtual Machine and introduces features like faster transaction finality and a fee monetization model that allocates up to 90% of application-generated fees to developers. Sonic also announced a token airdrop of 190.5 million "S" tokens, valued at approximately $232 million, available on a 1:1 basis to holders of the Fantom blockchain’s native token FTM. The initiative aims to attract developers and users by providing financial incentives and a familiar development environment.

In addition, crypto exchange Kraken launched its layer 2 blockchain, Ink, built using Optimism’s Superchain technology. Ink supports interoperability with other OP Stack-based networks and has partnered with decentralized platforms such as Curve and Frax. Kraken also announced plans to implement permissionless fault proofs in early 2025 to enhance transaction accountability within the network.

Meanwhile, TradFi giant Deutsche Bank revealed its plans for a layer 2 blockchain project utilizing ZKsync technology, as part of its involvement in the Monetary Authority of Singapore’s Project Guardian. The platform is designed to support compliance-driven applications, integrating tools for transaction oversight and risk mitigation. A minimum viable product is expected to launch in 2025, pending regulatory approval.

Watch the Recap!