Sometimes, a big development changes the shape of entire communities.

Imagine the first potluck.

Imagine an entire village united in a fever dream of yams, sweet potatoes, pieces of dirt, and whatever they could gather into the community cauldron.

The first peasant to consider seasoning this stew must have, well, blown some minds. But now our minds are blown again, this time by the latest development in crypto interconnectivity.

Like that community cauldron, the Ethereum Virtual Machine (EVM) has been keeping crypto’s village afloat, but get ready to ladle some piping hot stew, because now more than ever, the EVM is bringing all of us together.

Espresso Shots

☕️ FTX Sues SBF’s Parents

The Bankman-Fried parents have been sued by FTX, alleging that the couple used “access and influence within the FTX enterprise to enrich themselves.”

Until the FTX collapse brought international controversy upon the house of Bankman-Fried, the parents were professors at Stanford. Ironically, SBF’s father was teaching tax policy.

SBF stated at the 2022 DealBook Summit in New York that his parents were blameless in the FTX catastrophe: “They bore no responsibility for that. I feel really bad about that. I feel really grateful for the support my parents are still giving me throughout all of this.”

But it turns out that may not be the case. FTX is alleging that the $10-million gift the couple received from their son, as well as a $16.4-million estate in the Bahamas, were siphoned from customer funds.

What’s worse, SBF’s father was involved in an employee capacity, distributing hundreds of millions of dollars in loans, while his mother helped organize SBF’s political donations.

Supportive parents will pay your bail money, or even find you a lawyer. But if your parents really love you, they’ll implicate themselves.

☕️ Crypto Miners Form a Coalition

Crypto miners will have a new advocacy group in Washington in the form of the Digital Power Network, an affiliate of the Chamber of Digital Commerce.

The Digital Power Network (DPN) currently boasts eleven crypto-mining companies, including Argo, Cipher, Riot, and TeraWulf. The eleven members of the DPN account for half of the Bitcoin mining, or hash rate, within the U.S.

The DPN is part of a growing initiative to establish pro-proof-of-work resolutions in the House of Representatives.

The DPN will work alongside the Digital Energy Council to tackle Biden’s proposed 30% electricity tax on crypto mining.

Before the coalition, most digital power conflicts in Washington were resolved by tired IT professionals turning off the routers for aging senators, and then turning them on again.

☕️ Spiderchain Crawling Forward

Co-Founder & CTO of the self-custody firm Casa James Mopp published a blog post on Monday detailing possibilities for “Spiderchain,” developed by Botanix labs.

Sidechains are separate blockchains tied to the Bitcoin network. A consistent issue has been developing safe methods of transferring Bitcoin to these sidechains without a centralized intermediary.

That’s where Spiderchain comes in. “The Spiderchain works as a Proof of Stake Layer 2 on Bitcoin,” said Willem Schroé, founder of Botanix Labs, in an interview with Decrypt. “You stake Bitcoin on Bitcoin in decentralized multisigs.”

Those multisigs consist of a subset of a hundred, randomized stakers that ensure the security of the transactions. It’s a model that functions much like Ethereum, and is compatible with Ethereum Virtual Machines, but more on those later.

And yes, we’re as surprised as you that Spiderchain was developed by Botanix Labs, and not the result of a radioactive spider biting a blockchain.

Spilling the Beans

Solana’s Magical Mystery Tour 🚌

No, the Ethereum Virtual Machine isn’t the latest in VR technology.

Despite the name’s most immediate associations, this isn’t some massive rig that’s going to jack users into the Matrix.

The Ethereum Virtual Machine (EVM) is more like a program or computation engine that manages blockchain interactions and smart contract functionality.

And again, despite what the name suggests, Ethereum Virtual Machines aren’t just for Ethereum.

These computational engines are also compatible with the Binance smart chain or Polygon, as well as several other blockchains.

EVMs are fantastic tools for connectivity, promising new levels of speed and transference between blockchains.

And this week, there was a major development in Ethereum Virtual Machine use that has all of DeFi singing.

It was announced the blockchain Injective will roll out a new layer-2 infrastructure called “inEVM.”

Notably, inEVM purports to be “the first-ever Ethereum Virtual Machine capable of achieving true composability across Cosmos and Solana.” And, while EVMs aren’t anything new, the level of compatibility that Injective is unveiling certainly is.

It’s a new bridge in DeFi, one that promises lightning-fast speeds between the Solana and Cosmos blockchains, built in conjunction with Caldera — another piece of Layer-2 rollup infrastructure.

This new tech stands poised to revolutionize the way Ethereum developers interact with the broader DeFi space.

Faster, more compatible, and user-friendly are Injective’s priorities as the blockchain attempts to foster a DeFi that values collaboration over competition.

If all of this sounds a little technical, that’s because it is. But the big takeaway here is that a new bridge has opened up, one that may be faster and easier to use than any before it.

And Injective doesn’t intend to stop there. They’re also developing plans to further decentralize the sequencer and validator protocols using Altlayer interlayer, and the Espresso Systems sequencer.

Now, to clear up any confusion, Coffee & Crypto is in no way related to the Espresso Systems software company.

Crypto 101

Two-Way Peg: Get your mind out of the gutter. A two-way peg involves the transfer from a central blockchain like Bitcoin to a secondary sidechain.

In a two-way peg, unlike a single peg, those assets can be transferred back and forth instead of just one way.

Spiderchain intends to overhaul this system and eliminate the need for a centralized intermediary in these transfers.

The Last Sip

The Last Sip: If Spiderchain is successful as a side-chain solution, you better believe it will spawn countless reboots and sequels before culminating in “Spiderchain: Into the Spiderverse” which will have its jerky, 2.5D style copied by every animated feature for years to come.

Stay Caffeinated,

Coffee & Crypto Team

That's all for today! If this email got you hooked on our unhinged crypto takes, be sure to get a full dose on Twitter @GetCoffeeCrypto.

Want cutting-edge market analysis delivered to your inbox three times a week? Sign up for Premium Roast! We'll cut through the BS floating around on Twitter and CNBC and help you finally understand the markets, all for the price of a single cup of coffee.

If you find yourself smiling at any of our dumb jokes, or even *learning* something - make sure to share this newsletter with your friends!

If you get 5 friends to sign up - or even enemies, we don't care - we'll send you our Bitcoin Bootcamp Ebook! This thing is packed with info and is the ultimate guide to the world’s ultimate currency.

Just hit the Click to Share button in the section below to get started!

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.