  What you need to know today in crypto and beyond May 4, 2021 Sponsored By:  If you were forwarded this newsletter and would like to receive it, sign up here.
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Today's must-reads Top Shelf  MASS ADOPTION: Mastercard found encouraging, if tentative, signs of global cryptocurrency adoption. According to a two-week, 15,569-person, online survey across 18 countries, 40% said they plan to use crypto in the next year. Enthusiasm among millennials is predictably higher. THE FLIPPENING: Some $1.32 billion worth of ether (ETH) options contracts traded yesterday as the native Ethereum token continues to rally. ETH "flippening" open interest in bitcoin for the first time ever is a "further sign of market focus temporarily shifting away from bitcoin, the top crypto asset by market value," CoinDesk's Omkar Godbole noted. NO SECRET: Multicoin Capital raised $100 million for a new crypto venture fund. DeFi platform Equilibrium raised around $8.5 million to build a suite of applications on Polkadot. Arrington Capital and Blocktower Capital led an $11.5 million investment in privacy-focused blockchain Secret Network, buying up its native SCRT token. Secret allows for anonymized smart contract development, which the network maintainers hope will one day host a more private DeFi and NFT ecosystem.
PERSONAL IDENTIFICATION: Cryptocurrency exchanges in Thailand may soon be required to onboard new customers using a "dip chip" machine that verifies user IDs in person, according to the Bangkok Post.
– Daniel Kuhn
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Overheard on CoinDesk TV Sound Bite  "I like round numbers. If we can hold and get through this $3,500 level, obviously $5,000 isn't off the table."
– MarketGauge Managing Director Michele Schneider, explaining the ether (ETH) price tear on CoinDesk TV's "First Mover."
A message from CoinDesk  CoinDesk Research: Does Bitcoin Have an Energy Problem? Is Bitcoin bad for the environment? This CoinDesk Research report looks at the data behind the most common critiques and shows that, while Bitcoin uses a lot of energy, the mix is evolving toward renewables. Bitcoin also incentivizes investment in clean energy sources, can convert pollution into value, and redistributes wasted power production. Download the free report.
What others are writing... Off-Chain Signals 
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 Introducing Unlocked 101 at Consensus by CoinDesk 2021 New to crypto? Here's a crash course. Unlocked 101 is a free educational series of sessions designed to give you the tools to navigate crypto. Sessions will be hosted May 4–20 to prepare you for Consensus by CoinDesk 2021, our virtual big-tent event.
 Introducing CoinDesk Indexes TradeBlock, the leader in providing crypto asset indexes to financial institutions, is taking the CoinDesk name.
Introducing CoinDesk Indexes, the industry standard for institutional-grade digital currency price references, with billions of dollars in monthly trading volume quoted against them.
Underlying new brand names, TradeBlock's index methodology will continue to adhere to the standards of integrity and reliability that have always differentiated its indexes.
Read more about CoinDesk Indexes, the industry standard in crypto benchmarks.
Putting the news in perspective The Takeaway  The Reflexivity of 'Number Go Up' Technology Ether (ETH) is on a tear (more than $3,200 at the time of writing) and it's not hard to see why. Last month, ConsenSys economist (and CoinDesk columnist) Lex Sokolin said recent price action in ETH is the result of years of building. There are more Ethereum-based products than ever, more users and more ways for people to deploy their capital, earn yield and have fun.
"The price action that people are excited about – that's the result of custodians and financial infrastructure firms and wallets put into place over the past several years," he said on CoinDesk TV.
Sokolin is pointing to a cycle of legitimacy where the driving ideas and promises of Ethereum, the so-called "world computer," are actually being encoded. These tools help justify the price of ETH in a similar way traditional investors value a company stock by examining its balance sheet.
But there's another factor at play in Sokolin's reading: the excitement he mentioned in the first half of that quote. People are generally "excited" by the price of ether, not just the network itself. Price drives interest, which reflexively drives higher prices.
Cryptocurrencies are opening up the space to reimagine what money is and can be. It's part of what many now refer to as the "meme economy," where human psychology and fads are as important as economic fundamentals. (BitPanda, for example, is hiring a meme "lord/lady.") While meme-driven finance may seem new – like a peculiar offspring of decades of loose monetary policy, increasing internet usage and being cooped inside during a global pandemic – many see this economic activity as rooted in some of the most primitive human behavior.
In seeking to explain the "ponzinomics" of token systems, several market analysts – like Tony Sheng and Deribit's Matti – have taken up the theories of mimetics and reflexivity rooted in the work of 20th century philosopher Rene Girard. Memetic analysis seems anything but scientific, but for Girard it's the secret to understanding most human behaviors and cultural formation. Matti gives a crash course definition of Girard's main idea: "A human [is] a lifelong child that desires the toy someone else has just picked up." In other words, people often don't know what they want until they see what someone else has.
Girard's most famous student, Peter Thiel, was thinking of mimetic theory when investing in Facebook. Social networks are playgrounds where human desires, envies and competitions are on full display.
Applying mimetic theory to crypto, Deribit's Matti argues that a cryptocurrency's price is a meme. It may be a way to judge actual network activity but it's also a signal of what other people find desirable.
"Price makes memes concrete," coder and writer Rachel-Rose O'Leary said in a direct message. "In crypto we have our own words for this: FUD and FOMO. In a cyclical, almost seasonal pattern, FUD gives way to FOMO – fear gives way to mimetic desire."
Crypto, more than most economic activity, is future oriented. While the code may be deployed today, the real story is the promise of disruption tomorrow, or what O'Leary calls an "overall preference for narrative."
People buy into the idea that Ethereum is the world computer or that bitcoin is a global reserve currency. Not today, but tomorrow. And ultimately, as Matti says, it is the aggregate of active observers that "decides what reflexive assets will become."
Price gives people a reason to believe, a story to invest in and an object to desire – as long as it's going up. But reflexivity works in the opposite direction, too.
The Chaser... 
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