🎮 Twitch’s rule reset

…and DeFi thrives under crypto pressure   Fortnite stream star Tyler “Ninja” Blevins (Robert Reiners/Getty Images)   Yesterday’s Market Moves   Dow Jones 33,834 (+0.50%) S&P 500 4,294 (+0.62%) Nasdaq 13,239 (+1.02%) Bitcoin $26,576 (+0.87%) Dow Jones 33,834 (+0.50%) S&P 500 4,294 (+0.62%) Nasdaq 13,239 (+1.02%) Bitcoin $26,576 (+0.87%) Hey Snackers, Edinburgh, Scotland’s historic skyline — with its castle, cathedral, and 200-foot-tall Gothic spire — has received a modern twist: a W Hotel that [looks like]( the 💩 emoji. Locals have dubbed it the “Golden Turd” for the way it reflects the sunlight. All that’s missing is googly eyes. The S&P 500 entered a new bull market yesterday, fueled by gains in big tech stocks ahead of a busy week for markets. Investors are waiting for new US inflation numbers (on Tuesday) and the Fed’s rate-hike decision (Wednesday). Reset Twitch backtracks on new monetization rules after streamers revolt, showing how creators can flex their power Reloading your last save point… On Tuesday, gaming-focused streaming platform Twitch announced new ad rules that would threaten streamers’ sponsorship revenue, including no ads allowed to play directly in-stream, and that on-stream logos could take up only 3% of the screen. Since brand deals make up the bulk of top streamers’ earnings, there was loud backlash: - Backtrack: After big-name streamers like Asmongold threatened to leave the platform and mega-creators like MrBeast criticized the move, Twitch [reversed course]( on Wednesday, saying “these guidelines are bad for you and bad for Twitch.” - Loot: Unlike ad revenue, brand-sponsorship revenue goes 100% to streamers. Deals can be very lucrative: it was leaked that gambling site Stake paid streamer Adin Ross 335 ethereum, or nearly $1M/week last March. Controversy 2.0… This isn’t the first time Twitch has pushed streamers’ buttons. Last year the platform increased its cut of top streamers’ earnings from subscriptions and donations by half in most cases. Twitch blamed the high fees charged by Amazon Web Services for live video. Streamers pointed out that [Amazon]( owns Twitch (awk). - Less pain, less game: [YouTube]( is Twitch’s main rival, and its creator split is 70-30. But its attempt at a gaming platform, YouTube Gaming, sputtered alongside the [Facebook]( Gaming app and [Microsoft]( Mixer. THE TAKEAWAY Don’t bite the hand that feeds you… Twitch’s rule reversal is a testament to creators’ power over platforms. Twitch is still the go-to for watching gaming, but if its top streamers move to YouTube it’ll be hard to retain eyeballs to view ads — its biggest revenue source. MrBeast’s input: “Hey @Twitch how about instead of handicapping what creators make, you help them make more? Seems more logical.” Swap DeFi crypto trading volume pops as regulators put the squeeze on centralized exchanges Crypto's time to shine… Trading volumes on decentralized finance (aka: [DeFi]( platforms [soared]( this week with [Uniswap]( seeing a 40%+ jump in daily transactions and PancakeSwap bumping up 17%. One possible reason for the surge: with DeFi there's often no single entity in charge for regulators to pursue. That may be top of mind for traders as the DeFi surge came on the heels of two SEC [lawsuits]( directed at Binance and [Coinbase]( the No. 1 and No. 2 centralized crypto exchanges (by trading volume). - SECrackdown: The US regulator accused Binance and Coinbase of operating unregistered securities exchanges. It also sought to freeze the assets of Binance.US, Binance's US-based exchange. - CryptGo elsewhere: Traders pulled $1B+ from Binance and Coinbase in the 24 hours after the SEC announced its suits. Prepping for battle… As crypto traders look to decentralized options like Uniswap, centralized exchanges are digging in. Coinbase CEO Brian Armstrong says the biz has no plans to delist the 13 tokens called out in the SEC's lawsuit as being securities (like: [solana]( [matic](. And both Binance and Coinbase say they plan to fight the SEC, with any legal battle possibly taking years to resolve. Meanwhile, Coinbase's "stand with crypto" NFT is spreading on Twitter. THE TAKEAWAY Crypto's roots may keep the industry upright… though the ground is shifting. At its core, crypto is about decentralization. Users self-custodying their assets in hardware wallets and conducting peer-to-peer transactions don't require centralized players. As exchanges struggle with regulators, that decentralized ethos may end up being the industry's saving grace. But decentralized platforms typically have a steep learning curve, which may make them less accessible. KWON The Crypto Catch-Up… 💰 Spendy… The SEC says a biz controlled by Binance CEO Changpeng "CZ" Zhao sent $132M to Binance.US last year as it [lost $181M](. Binance says Binance.US is independent, a claim Binance.US's now former CEO disputed. 🌶️ Spicy… SEC Chair Gary Gensler said there’s no need for new digital currencies as [existing]( currencies like the US dollar suffice. He’s on a PR tour after his agency accused Binance and Coinbase of operating illegally. 📸 Flashy… South Korean [prosecutors]( say Do Kwon could spend his life in jail. The founder of the infamous terraUSD algo stablecoin (picture: $40B investor value wiped out) was arrested in Montenegro after insisting he was not on the run. What else we're Snackin' - [Delivery]( Tense negotiations between [UPS]( and its 340K unionized workers continued this week as the union votes whether to authorize a strike. UPS delivered a quarter of packages shipped in the country last year. - [Test-drive]( [Uber]( is bringing its car-sharing service to Toronto and Boston after launching the service in Australia last year. Users can rent their vehicles or browse and reserve cars by the hour or day. - [Explicit]( In a groundbreaking decision, a federal court ruled that workers can sue their employer over music played in the workplace. Sexist epithets can create a hostile work environment, the court said. - [Unshine]( Shares of [Signet Jewelers]( (parent of: Kay, Jared) fell 10% after it slashed its outlook on duller demand for engagement bling. The world’s largest diamond retailer is feeling the spending pullback. - [Out]( [GameStop]( stock fell 17% yesterday after news that the video-game retailer had fired its CEO (without giving a reason). Last year it also let go of its CFO, among other exec departures. 🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up [here](. Snack Fact Of the Day Most US adults have heard of ChatGPT, but only 14% have tried it [Read more]( Friday - Earnings expected from Nio Authors of this Snacks own matic and solana and shares of: Amazon, Google, Microsoft, Uber, and Uniswap Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate... [See more]( [Sherwood Terms and Conditions]( • [Our Editorial Principles]( • [Contact Us](mailto:hellosnacks@sherwoodmedia.com) • [Privacy Policy]( • [Advertise with us](mailto:advertising@sherwoodmedia.com) [Unsubscribe](