Hello Crypto Enthusiasts! Welcome to another edition of our Crypto Layer 1 and 2 newsletter, where we dive deep into the dynamic world of digital currencies. Whether you're a seasoned investor or just starting your crypto journey, we're here to guide you through the twists and turns of the blockchain universe. Grab a cup of coffee, sit back, and let's embark on this exciting journey together. Happy reading and happy trading!

"Bitcoin is a very exciting development, it might lead to a world currency. I think over the next decade, it will grow to become one of the most important ways to pay for things and transfer assets." — Kim Dotcom

Market

Layer 1 and 2 Daily Movements

Market Overview: The market for Layer 1 and Layer 2 cryptocurrencies is displaying a mix of slight price corrections and modest gains. Ethereum's small decrease in price is a natural ebb in the volatile crypto market, while Polygon's gain, albeit small, reflects the ongoing demand for solutions that address Ethereum's limitations. The market remains optimistic about the future of both Layer 1 and Layer 2 solutions, as they are essential for the continued growth and adoption of blockchain technology. Investors seem to be maintaining confidence in the sector's long-term prospects despite short-term price movements.

Index

Topics Covered in Today’s Newsletter

• Kraken Said to Seek Partner to Help Build It a Layer 2 Blockchain Network

• Arbitrum Governance Divided Over $2.4M Research Coalition

• Perella Weinberg Partners: FTX Restructuring Process Narrows Down to Three Shortlisted Investors

• Top 10 Public Companies Holding Bitcoin: Entry Price vs. Current Value (2023)

Layer 1

Kraken Said to Seek Partner to Help Build It a Layer 2 Blockchain Network

Kraken, the crypto exchange behemoth, is on the hunt for a tech ally to construct its very own Layer 2 blockchain network. It's like they're assembling a digital dream team to craft the ultimate crypto playground. 🎮🚀

Here's what's crackin' at Kraken:

• Tech Titans on the Shortlist: Kraken's got its eyes on some of the sharpest minds in the blockchain biz. They're chatting with Polygon, Matter Labs, and the Nil Foundation to figure out who's going to be the architect of their new digital domain. 🤝💡

• Following Coinbase's Footsteps: Kraken isn't the first to throw its hat in the Layer 2 ring. Coinbase already blazed the trail with Base, their own Layer 2 network. It's like Kraken's saying, "Nice move, Coinbase, but watch this space!" 🏃‍♂️💨

• The Job Hunt: Kraken's not just talking the talk; they're walking the walk. They've put out a call for a "Senior Cryptography Engineer" to join the squad. They're looking for someone who's into open-source, Layer 2 tech, and zero-knowledge proofs. It's like a casting call for the next crypto superhero. 🦸‍♂️🔐

• The Big Picture: This isn't just about Kraken flexing its muscles. It's about major crypto players expanding their empires, building out their own blockchains as a new revenue stream or just to level up their game. It's like the digital version of the space race, and Kraken's gunning for the moon. 🌕🚀

Layer 2

Arbitrum Governance Divided Over $2.4M Research Coalition

We've got some spicy drama brewing in the world of Arbitrum, where a cool $2.4 million is causing quite the stir. It's like a high-stakes episode of "Blockchain's Got Talent," but instead of singing, it's all about that sweet, sweet research. 🧐💰

Here's the dish on the Arbitrum tizzy:

• The Proposal Puzzle: Arbitrum's token holders are scratching their heads over a hefty $2.4 million proposal to fund a research coalition. It's like ordering a deluxe pizza and then finding out it costs as much as a car. 🍕💸

• The Voting Vortex: The community's split right down the middle, with about 57% saying "Yeah, let's do it!" and 41% going "Hold up, that's a lotta dough!" The voting booth is hot, with debates raging until November 10th. 🗳️🔥

• The Coalition Crew: The proposed "Arbitrum Coalition" is like the Avengers of blockchain, with Blockworks Research, Gauntlet, and Trail of Bits banding together to make governance smoother than a jazz sax solo. 🎷✨

• The Money Talk: We're talking big bucks here, folks. Some of these research hotshots could be bagging an annual salary equivalent of up to $1.3 million in ARB tokens. That's enough to make even a blockchain blush. 💼🤑

• The Concentration Conundrum: Some folks are worried that this coalition could hog all the power, like a game of Monopoly where one player has all the hotels. It's a delicate dance between expertise and equity. 🕺⚖️

• The Clarification Clamor: Confusion's in the air, with ARB token holders asking for a lifeline to understand the nitty-gritty of the payouts. It's like trying to read the fine print without your glasses. 🧐🔍

• The Assurance Angle: The coalition candidates are stepping up to say, "Trust us, we're not overcharging." It's like a garage sale where the seller swears that vase is antique. 🏺🤝

So, grab your popcorn and stay tuned as the Arbitrum saga unfolds. Will the research coalition get the green light, or will the community pump the brakes on the spending spree?

FTX Saga

Perella Weinberg Partners: FTX Restructuring Process Narrows Down to Three Shortlisted Investors

We've got some serious business brewing in the crypto cauldron with FTX's restructuring saga. It's like a high-stakes poker game, and the chips are down for a major reshuffle. 🃏♠️

Here's the deal on the FTX financial facelift:

• The Restructuring Rundown: FTX is in the thick of a restructuring process, and it's not just any makeover. We're talking about a $13 billion hole in the balance sheet that's got everyone's attention. It's like discovering a financial black hole in your backyard. 🕳️💵

• The Investor Shortlist: The plot thickens as the restructuring process has narrowed down to three mystery investors. It's like a financial "The Bachelor," but instead of roses, they're handing out equity stakes. 🌹📈

• The Diverted Funds Drama: There's a twist in the tale with funds reportedly being diverted to private investments. It's like playing a game of Monopoly, and someone's been secretly building hotels on Boardwalk. 🏨🎲

So, keep your eyes on the prize and your ears to the ground. FTX's restructuring is shaping up to be a tale of redemption or a cautionary tale for the crypto world.

General News

Will the next crypto bull run be dominated by L1s, L2s or something else?

Get ready to buckle up for a brainy breakdown of the next crypto bull run. Will it be a Layer 1 (L1) fiesta, a Layer 2 (L2) soiree, or will some other tech wildcard steal the show? Let's decode the digital dilemma!

The Blockchain Bonanza: As we peek into the crypto crystal ball, the "crypto spring" might just be blossoming. Bitcoin and buddies are buzzing, and everyone's wondering if we're on the brink of a bull market bonanza. 🌼📈

• Layer 1 Lowdown: L1s like Bitcoin and Ethereum are the OG blockchains. They're like the main streets of Crypto Town, but sometimes they get a bit crowded, and that's where L2s come in with their side streets to ease the traffic. 🛣️🚗

• Layer 2 Lowdown: L2s are like the express lanes, zipping transactions on parallel tracks before they merge back onto the main blockchain highway. They're the unsung heroes keeping the crypto commute smooth. 🏎️💨

• The Gas Fee Fiasco: Ethereum's gas fees have been like a rollercoaster ride at an amusement park—thrilling but pricey. It's sparked a whole carnival of solutions aiming to make transactions faster, cheaper, and more scalable. 🎢💸

• Speed Demons: Newer protocols are showing off their TPS (transactions per second) like sports cars at a drag race, leaving some older blockchains in the dust. It's all about who can cross the finish line of efficiency first. 🏁🔥

• Future Forward: The report hints at emerging trends like asset tokenization, where real-world assets get a digital twin on the blockchain. It's like giving your house or car a virtual life. And account abstraction? That's about making crypto as easy as streaming your favorite tune. No more fumbling with seed phrases! 🏠🎶

So, crypto curious folks, keep your eyes peeled and your wallets ready. Whether it's L1s, L2s, or some other tech titan, the next crypto bull run is gearing up to be a wild ride through the blockchain universe!

Other News

• Ethereum’s Dencun Upgrade Is a Step Toward a Scalable Settlement Layer: Goldman Sachs Read More

• Will Kraken become the next exchange to launch layer 2? Read More

• Crypto Arbitrum Orbit: A Game-Changer for Ethereum’s Scalability Read More

• What Are Blockchain Layers? Layer 1 vs Layer 2 Scaling Solutions, Explained Read More

Until Next Time, Crypto Explorers!

As we wrap up this edition, we want to thank you for being an integral part of our community. Remember, the world of cryptocurrency is as vast as it is thrilling, and we're honored to be your compass in this digital frontier. Stay curious, stay informed, and most importantly, stay awesome! See you in the next edition. Keep hodling and shining!

Warmest wishes, CryptoCavalry Team.