Ever since our mom said we weren’t allowed to read Tom Wolfe’s The Electric Kool-Aid Acid Test, we’ve wanted to try LSD. And it turns out, crypto is no different.

And no, crypto isn’t doing some lame Silicon Valley micro-dosing that gives you more initiative and makes you more creative at work. We’re talking macro-doses, face-melting, ancient-god-meeting quantities of LSD.

So, rip off a tab of that blotter acid, put it on your tongue, and let’s see how deep this newsletter goes.

Espresso Shots

☕️ Listen to Earn? 💵 🎧

A new podcasting revenue model is rewarding people with bitcoin for listening to their podcast.

ZEBEDEE, a Bitcoin gaming firm mostly known for its implementation of Bitcoin Chess and Bitcoin Scratch, wants to venture outside of the world of gaming and into the wacky and wonderful realm of podcasting.

ZEBEDEE will only pay users for their first hour of listening. If they paid them continuously, you could just put on the podcast on and walk away. Then you’re just Bitcoin mining.

Anyway, it’s nice to see someone literally paying people to listen to their podcast instead of just constantly plugging three partially knowledgeable white guys trying to be funny.

Oh, wait a second…

☕️ El Salvador's Debt Repaid 🇸🇻 💰

The world has been watching as El Salvador, the first country to make Bitcoin legal tender, struggles with its national debt.

And lo and behold, this week, El Salvador paid off its $800 million in national debt, with interest.

President Bukele took to Twitter to clap back at the naysayers.

El Salvador’s success just goes to show we can do anything when we all get together and support an authoritarian government that wrongfully imprisons citizens and silences journalists.

☕️ Film3 At Sundance 🎬 ☀️

Callita, a film by Miguel Faus, won one part of the three part Andrews/Bernard Award established by Steven Soderbergh.

But why are we writing about it? Because Callita, a satirical look at the Catalan bourgeois, was entirely funded by NFTS.

“This movie started as a crazy idea in my mind that maybe I could fund my first feature through an NFT collection, and a few months later, thanks to 500 degens on the internet who believed in us and minted our NFTS, we got to make the movie,” said Faus.

This new sector of Web3, coined Film3, looks ready to open up the industry to creators who may not otherwise be able to get funding.

If online communities are financing Hollywood movies instead of out-of-touch producers, we may be able to avoid the inevitable, all-female reboot of Saving Private Ryan.

Spilling the Beans

Yes, Crypto is getting very fascinated with LSD 🔴 🔵

First off, Crypto watched the matrix too many times. 🐇

Then, a bunch of their friends started doing it. It sounded like a big, fun adventure and Crypto didn’t want to feel left out.

Then, the final nail in the coffin, Crypto went one time to see a Grateful Dead cover band, and the rest is history.

And no, sorry, we’re not talking about Lysergic Acid Diethylamide, those little paper squares that Craig was always trying to get you to take in college. The ones with the Mad Hatter on them that would have you seeing wavy trees for eight hours.

Crypto has been getting involved with a very different kind of LSD. And not Peyote or Mushrooms. Sorry, we’re done with drug jokes, now. We’re in danger of getting addicted.

Crypto’s LSD experimentation is with Liquid Staking Derivative (LSD) Tokens, in a practice known as Liquid Staking.

Liquid Staking involves the implementation of high-yield tokens that allow investors to stake on Ethereum for a lower cost.

The standard buy-in for an Ethereum stake is 32 ETH, but LSD lets you stake at a much lower cost, as an LSD token is actually comprised of several different tokens.

For example, an LSD that’s shooting up in popularity is the Defi Pulse Index.

The DPI is an LSD Token that is actually three tokens built on Ethereum: Lido Finance’s stETH, Rocketpool’s rETH, and Stakewise’s sETH2 tokens.

Crews Enoch (yes, that’s a human name) is one of the founders of the Defi Pulse Index and he feels confident that their liquid staking derivative will become an indispensable tool to the savvy investor.

“You want to be able to diversify your risk at the asset and protocol layers,” says Enoch, “All of my portfolio is subject to the same smart contract risk if I’m only using Lidio protocol or Rocket protocol.”

Enoch is right that spreading your token’s contact across several protocols eliminates some risk.

It falls under that ancient wisdom regarding eggs and baskets. But the thing is, if you have more eggs in more baskets, you’re still vulnerable to the kind of contagion that could come from macro events in the market. (See FTX.)

While the instability among large firms is exactly what’s pushing the popularity of LSD, we always advise caution when entering an investment with objectively higher yield.

We've seen far too many so called "high-yield, low-risk" products crash and burn, from Luna to Gemini Earn.

You usually don’t make more money without assuming more risk.

In short, be careful.

LSD may seem mind altering and exciting, but you get too involved and next thing you know you’re living in a cabin in Montana and making statues out of “found objects.”

Sorry, I know we said we were done making drug jokes, this is just a relapse.

Meme of the Day

Wall Street Bros love LSD.

The Last Sip

If ZEBEDEE is going to pay listeners to tune in to their podcast, here are some other activities we’d like to see incentivized with Bitcoin:

• Waiting for Public Transportation.

• Making Smalltalk with your Uber Driver.

• Telling the Grocery Store Cashier that You Don’t Need a Receipt.

• Listening to your Mom Explain the Plot of A Movie.

• Flossing.

Stay Caffeinated,

Coffee & Crypto Team

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.