DeFi 1.0 Tokens: Overlooked and Undervalued, Ready to Surge
Hello and welcome to The Tentacle, a daily news and analysis newsletter. Today for our paid subscribers we’re taking a look at the forgotten DeFi 1.0 tokens which have survived these many years, building high revenues, but are stuck in the mud from a price perspective. For how much development has gone into these protocols, they're definitely worth taking a look at to add to your portfolio.
But first… lets check out the news.
ZKasino Buckles Under Legal Pressure, Opens Bridge for 72 Hours
Under growing legal pressure ZKasino announced yesterday the reopening of their bridge allowing 1:1 ETH withdrawals. The move comes after the online casino app unilaterally changed the terms and conditions of staking, effectively stealing over 10,000 ETH ($33m) from its depositors a month ago.
The team’s actions were illegal then, and their weak attempt to refund users now is still not enough. A paltry 72 hour window for returning funds is just another exit scam for them to time bound their heist.
Back on April 29, Dutch authorities arrested Derivatives Monke aka Elham Nourzai, gave him a court date, confiscated $12m in assets and let him go.
The refund is most likely a way for the founders to deflect criminal charges against them for fraud and other financial crimes.
Hopefully they actually return all the funds. The project is dunzo at this point. All the founders need to go to jail. Nature will eventually heal.
FTX Lieutenant Ryan Salame gets 7.5 years in prison
In a surprising twist on luxury getaways, Ryan Salame, former right-hand man of FTX founder Sam Bankman-Fried, has embarked on a unique journey—one that doesn't require a passport, but does come with complimentary accommodations, courtesy of the federal government.
Salame’s seven and a half years of all-expenses-paid lodging, followed by three years of supervised freedom, is a bit longer than the five to seven years prosecutors had envisioned. His defense team’s request for an 18-month staycation was evidently too short for Judge Lewis Kaplan's taste.
In addition to his extended retreat, Salame has been generously asked to contribute over $6 million in forfeiture and more than $5 million in restitution.
US attorney Damian Williams summed up the mood with a stern reminder of the “substantial consequences” for such actions. It turns out that undermining public trust in American elections and financial systems isn’t taken lightly. Former prosecutor Mark Bini noted that Salame’s attempts at contrition and cooperation didn’t quite hit the mark with Judge Kaplan, who viewed the FTX fraud as a serious breach of integrity.
So, as Ryan Salame begins his extended hiatus in a federal prison facility, we’re reminded that some vacations are less about relaxation and more about reflection. Perhaps Salame can use this time to contemplate the fine line between strategic investments and, well, felonies. After all, it’s not every day you get a seven-and-a-half-year sabbatical to reconsider your life choices.
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DeFi 1.0 Tokens: Overlooked and Undervalued, Ready to Surge
With all the hype around the ETH ETF and the potential inflows it will receive, it’s time to take a look at the DeFi 1.0 sector, which has lagged significantly. Let’s take a look at some of the opportunities available for the original DeFi protocols, how they cash flow and their value.
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