One bad App(le)

Gm! If you’re planning on including the word “crypto” in any New Year’s resolutions, we’d advise you to lower your expectations. Most Wall Street analysts predict that the S&P 500 will finish 2023 in the red, and whatever happens to global equities…let’s just say not even a regimented manifestation practice can get us out of this one.

But hey, you never know what could happen before the end of the year. We do, however, know what will happen in today’s send—here’s what’s on tap: Crypto has had enough of the Apple app store, crypto SPAC listing hopes are being dashed, and SBF is trying to talk his way out of this massive hole.

—Angelina & Vincent

An Apple a Day Keeps the Crypto Away

As if constantly texting our friends “gm” and “wagmi” and “have you bought Doge yet?” wasn’t bothersome enough, it seems we might have to do it with green texts soon, too.

Why? The crypto industry hasn’t been on friendly terms with Apple and its iOS tech lately—MetaMask co-founder Dan Finlay even called for crypto to ditch Apple’s App Store altogether. Let’s unpack why.

It has to do with the “Apple tax.”

• Apple collects a 30% commission for every purchase made within apps downloaded from its App Store—that's the so-called Apple tax.

• In October, Apple updated the App Store guidelines to address NFTs. Following that update, the 30% commission also applies to in-app NFT purchases.

• The policy adds that “apps may not include buttons, external links, or other calls to action that direct customers to purchasing mechanisms other than in-app purchase.” AKA there’s no way to avoid the tax.

That hasn’t gone over well in crypto. Coinbase Wallet announced on Thursday that Apple blocked its latest iOS app update because its new NFT feature didn’t comply with the Apple tax. Apple wants the gas fees associated with NFT transfers to go through its in-app purchases system so it can collect a commission.

The problem? Gas fees are always paid directly on-chain, so Coinbase couldn’t comply with Apple’s demands even if it wanted to. So until Apple supports the Ethereum or Polygon blockchains, apps won’t be allowed to offer in-app NFT purchases.

Zoom out: The App Store’s current policy isn’t inclusive of blockchain technology, making it difficult for crypto firms to launch their own apps and achieve growth in the mainstream. Apple’s monopoly in the app space is also an avenue for censorship…

One last thing? Crypto isn’t alone in its critique of the App Store—Elon Musk, Mark Zuckerberg, and Spotify CEO Daniel Ek all gave their two sats on the new App Store policies in the past two weeks. The tl;dr? They’re not big fans.

—Angelina

Keeping Things Private

One of the best paths to transparency for a crypto company is going public, but the latest dual crash in crypto and equities (paired with regulators’ decision to go after special purpose acquisition companies or SPACs) has dissuaded many from following through with plans to list on a stock exchange.

Roll the tape:

• Trading platform eToro gave up its plans in July, saying the deal had become “impracticable.”

• Bitcoin miner PrimeBlock stopped pursuing a SPAC in August (it didn’t say why).

• And now stablecoin issuer Circle has also gone back on plans to go public.

In Circle’s case, the decision to call off its listing wasn’t because of revenue challenges (in fact, Circle is one of the very few companies that's making money off of interest rate hikes).

It's because Circle couldn't meet the SEC's demands before going public. This exemplifies two major realities in crypto right now: 1) how difficult it is for stablecoin issuers to operate without a US regulatory framework and 2) how little crypto firms have put towards regulatory compliance in the past few years.

What to look out for next: With the push for proof-of-reserves, there’s a chance that crypto companies could become more transparent and subsequently more suited for public markets, but the slowdown in global growth coupled with a crackdown on SPACs means that it will take even longer for crypto firms to meet Wall Street’s high standards.

—Vincent

Sponsored by Caleb & Brown

[Live event tomorrow] Forecasting crypto’s 2023

Join us virtually tomorrow (12/7) for a fireside chat with Kevin Ting, founder and host of Coinsider, and Jake Boyle, Chief Commercial Officer of Caleb & Brown.

Kevin and Jake will share their top predictions for 2023 as well as reflect on and analyze what happened in 2022.

They’ll also share super actionable insights, like their bear market strategies, security best practices, and more!

Looking forward to seeing you there!

Register for free here →

The SBF Apology Tour

In addition to managing customer funds and being honest, keeping his mouth shut is another class SBF slept through. Against the advice of his own lawyers, FTX’s ex-CEO spent the last week doing an apology tour of live interviews.

The takeaway: We’re as clueless after SBF’s interviews as we were before. Pleading ignorance about the co-mingling of funds between FTX and Alameda, SBF continues to deflect blame. And as far as showing remorse goes? Zilch.

Quotable: “The SBF legal strategy is to attempt to characterize fraud as incompetence, in order to stay out of jail,” says Civic and Gyft co-founder Vinny Lingham.

—Angelina

In other news:

• Crypto exchanges Bybit and Swyftx are laying off workers.

• SBF says no thanks to appearing before a US House hearing.

• There’s a good chance the US could be headed for a “soft landing,” aka bringing down inflation without entering a recession.

• Crypto trading firm Auros has missed a $3.1 million loan payment.

• A court in China has decided that NFTs are virtual property and protected by law.

And that’s what you need on your crypto radar today. What crypto investing theses are you looking at these days? Reply to this email and let us know! See you Friday.