The Binance hacker might have just pulled off one of the smartest moves I’ve seen in crypto. First, Tether froze $1.5 billion in USDT. Then Circle froze another $800 million in USDC. At that point, it looked like the hacker’s money was trapped. But apparently, he had already planned for that. Instead of holding the stolen USDT in a wallet, he allegedly deposited it into Aave and used it as collateral to borrow ETH. Then he walked away. That’s where the story gets crazy. Tether can freeze the USDT sitting in the wallet. But it can’t freeze the ETH he already borrowed. So now Aave is left holding frozen collateral, while the hacker is sitting on liquid ETH. And unless the protocol can recover it somehow, he may not even need to pay the loan back. Two companies froze billions of dollars in seconds. But someone who understood how to use DeFi may have found a way around both of them. Pretty insane when you think about it.

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Brazil’s Stock Market Opens: -19.5%

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Chris Dixon and Ben Horowitz on why a16z Crypto is now a16z Frontier, a fund for the "outer planet" founders building things that don't fit into any existing category: "Years ago, [crypto] was sort of its own world with its own companies and its own investors. The lines have blurred, and it's become kind of more part of the tech landscape." "What we found with our vertical strategy is that there's still new things that fall outside of the verticals... And so by doing this, we will have the motion to invest in the very most interesting founders who are outer planets... It kind of fills a hole in the architecture." "At the end of the day, more than categories, more than products, we invest in entrepreneurs, and so many of the most interesting entrepreneurs are outer planets, so this gives us a real way to get to them." "Plenty of ideas that were not discussed today are probably more interesting and more creative. If for whatever reason they don't fit in the other kind of core areas at our firm, we're open-minded and willing to engage with those kinds of creative ideas." @cdixon @bhorowitz Full conversation: piped.video/-9XQMHhpypc

New markets have changed what people can trade and how. In the last decade, blockchains have started lowering the cost of building markets, making it easier to experiment with net new ones.