In This Issue

• I share my thoughts on the state of the market, Genesis is bankrupt, Nexo raided, high profile hack & altcoin alpha.
• Rebecca breaks down the latest news.
• Rekt has a TA report on the macro bearish invalidation that many Altcoins are showing signs of but haven’t yet fully confirmed.

Premium Subscription highlights this week:

• AI Coins: What are AI coins and how can you invest in this thriving technology.
• Airdrops: Don’t miss Jesse’s weekly airdrops and incentivized testnets.

What’s On My Mind by Lark

The State of the Market

The Bitcoin price candle last week was the biggest one since early 2021! Nice! 

That being said, we have reached overbought levels for many major coins. Remember, nothing goes up in a straight line. If we are indeed seeing a new cycle start, or even just a significant bear market rally then just keep in mind that volatility is normal and to be expected. 

Count on this to happen. If looking for entries then watch for pullbacks instead of FOMOing at local tops. Will that always work? No, sometimes things will just pump and pump and leave you sidelined, but more often than not we do get those juicy pullbacks. At the time of writing it seems that we are currently in this situation. I am watching for Bitcoin to hold above the 200 day moving average. Which is at $19,500. That is a critical level. And while this move has been very exciting, keep in mind that BTC failed to take out the price levels early November. 

Keep in mind too the velocity factors in crypto. The S&P 500 will move the slowest, but crypto remains highly correlated to it. Bitcoin will largely follow its moves. Ethereum will move slightly faster than BTC. And Altcoins will move very fast both up and down compared to everything else. They have the highest reaction factor of any of these markets. This is great on the way up, and poison on corrections. Currently the S&P 500 is facing rejection at the downtrend line. So long story short, keep a cool head. Markets are still frothy. 

Japanese bond purchases have been ramped up big time! Japan is the third largest bond market in the world. The Central Bank of Japan has been struggling to keep the market contained but is being forced once again to step in and buy bonds. They made a record 78 billion dollar purchase last week in response to a massive sell-off by foreign investors. This was an unscheduled purchase, and it did not stop the yields from rising. Japan’s Central Bank is going to be in full crisis mode over this. This could have far reaching implications. 

Genesis Bankrupt

It seems like we are finally going to see Genesis go bankrupt. For weeks there has been speculation, and the news today seems to be that they are preparing to file chapter 11 bankruptcy. This means that Gemini Earn customers are screwed as they will need to wait maybe years to get anything back. It also calls into question what might happen to the parent company Digital Currency Group, and their Grayscale Bitcoin and Ethereum trusts. As mentioned previously Justin Sun is backing an offer to buy out the trust.  

Nexo Raided 

The offices of crypto lender Nexo have been raided by Bulgarian Authorities with allegations of money laundering, tax crimes, terrorist financing, sanctions violations, and unlicensed banking activities. Time will tell what if any of those allegations are true. 

Also, their application to incorporate in the Cayman Islands was just rejected. Dude, not even the Cayman Islands wants anything to do with Nexo! Nexo’s CFO also deleted their Linkedin profile. Not a great look. 

As always, maybe Nexo will be fine, maybe it is all good. Maybe they really are the best centralized lender in a time when almost every single other high-profile lender has gone bankrupt. Just maybe. But is that a risk I would take? Nope. The risk is too high. The reward for staying in too low. If I had any more on there I would be running for the exits. 

High Profile Hack

Some dude who goes by the name of NFT God got hacked in the latest high-profile hack. And the hackers got everything. They hacked his socials, his newsletter, and his crypto accounts. All of his crypto was sitting in a hot wallet, not a cold wallet. This is a mistake that we see over and over again. Please, if you are into crypto and have any kind of substantial holdings then you should be using a hardware wallet. Keeping thousands or even millions in a hot wallet is just asking for pain. 

Also, this also seriously underlines the need to put two-factor authentication on EVERYTHING!!! Put it on your email, your Twitter, Facebook, all of it! Keeping yourself safe from hackers is easy enough, but it requires taking some precautions. And two-factor authentication is one of the biggest steps you can take. Use a Google Authenticator or even use your Ledger wallet and their 2FA app. 

Oh, and how this guy got hacked is worth noting. He downloaded a piece of software from the top link in a google search. The link was an ad. It took him to a mirror site for the popular streaming software called OBS. This gave the hacker full access to his computer. So, first and foremost be careful when downloading anything!!! I always double-check that the site I am visiting is legit. But even then, had he simply had 2FA and kept his assets in a cold wallet like a Ledger he would have avoided a lot of shit and not lost all of his crypto. 

So keep safe! Remember, it is someone’s full-time job to steal your shit. 

Altcoin Alpha 

• Synthetix V3 is dropping soon. And what is crazy is that right now, before that upgrade SNX is one of the highest paying real yield coins. V3 could provide a big spark for SNX. 
• Aave V3 could be launching this week. It will increase efficiency, lower gas fees, make cross-chain liquidity easier, and make layer two support better. 
• Curve USD rumored to be launching soon. This is just a rumor and nothing is confirmed. But, this is coming. When it does it could provide a whole new catalyst for the CRV token. Definitely, something I am paying attention to. 
• Shiba Inu has announced that each transaction on their coming layer two solutions called Shibarium will burn SHIB coins. Shibarium is currently scheduled to launch “soon”. Don’t forget they are also launching a stablecoin and metaverse too. 
• GMX is considering deploying on Binance Chain. It is already finding great success on Arbitrum and Avalanche, but BSC is one of the most popular chains so it could be a big catalyst for the network and bring in more users. 
• 1inch is considering adding a token burn mechanism. Not confirmed yet, but it could be a positive long-term catalyst if they do. 
• Illuvium removed their ILV/ETH liquidity from Sushiswap and converted it to USDC to ensure they have plenty of funds to maintain the economic health of the game. I remain bullish on this play-to-earn game. 

In Case You Missed It by Rebecca

Crypto market news

Ledger is adding a Web3 game called Cometh Battle to its Ledger Live hardware wallet app. Source

Three Arrows Capital (3AC) founders are raising $25M for a new crypto exchange. Source

CryptoCom has delisted Tether’s USDT for Canadian users due to a regulatory ban. Source

FTX users can remain private for now for at least another 3 months, as ruled by a US Delaware bankruptcy judge. Source

FTX has recovered more than $5B in cash, liquid cryptocurrency, and liquid investment securities. Source

Gemini has escalated its dispute with Digital Currency Group’s (DCG) Genesis by terminating its Earn program. Source

Options Trading company, Group One, has taken a beneficial ownership position in MicroStrategy that includes the option to buy 1.26M shares. Source

Abu Dhabi-based Venom Foundation has launched a $1B fund for Web3 and blockchain projects. Source

Genesis allegedly owes its creditors more than $3B according to a report from The Financial Times. Source

Samsung’s investment arm is to launch a Bitcoin Futures ETF in Hong Kong. Source

Nexo’s offices have reportedly been raided by police in Bulgaria for alleged money laundering. Source

The Miami Heat arena will soon be able to remove its existing FTX branding, after having permission granted from a US bankruptcy judge. Source

Tinder’s chief product officer has moved out of Web2 having joined Web3 gaming studio, N3twork. Source

PayPal’s cross-border remittance service, Xoom, has partnered with Visa Direct to allow debit card holders to receive funds almost instantly. Source

CryptoCom has announced its cutting its workforce by 20% due to the bear market and “recent industry events.” Source

SkyBridge Capital CEO Anthony Scaramucci said the company can buy back the 30% stake of the company it sold to FTX. Source

FTX has been cleared to sell assets including LedgerX, Embed Technologies, FTX Japan Holdings, and FTX Europe. Source

Silvergate Capital has reported a $1B net loss in Q4 2022 after large outflows of deposits. Source

Coins and Projects

Bitcoin mining saved a National Park in Congo from bankruptcy after tourism fell in the aftermath of the Ebola and Covid crises. Source

Optimism and Arbitrum flipped Ethereum in combined transaction volume on 10 January after processing more than 1.1M on-chain. Source

Ethereum software company, ConsenSys, is to cut its workforce by around 100 staff. Source

Ethereum startup, Obol Labs, has raised $12.5M to decentralize validators, in a funding round co-led by Pantera Capital and Archetype. Source

MetaMask users will be able to gain access to Ethereum liquid staking providers Lido and Rocket Pool after integrating with ConsenSys. Source

StarkWare has released an open-source full-node client for StarkNet called Papyrus. Source

Polygon has teamed up with Web3 gaming development platform, Xternity, to migrate a Solana-based game over to the network, called Synergy. Source

Polygon has successfully completed its hard fork to reduce gas fees and chain reorganizations. Source

Cardano is to launch a software toolkit later in January that will enable developers to deploy custom-built sidechains on the network. Source

BONKz, a Solana NFT collection co-created by those behind the BONK token, launched on Magic Eden and sold out in hours. Source

Avalanche and Ava Labs has partnered with Amazon Web Services (AWS) to bring blockchain solutions to enterprises, institutions, and governments. Source

Solana Foundation has been subject to a security incident involving its email provider, Mailchimp, which saw an unauthorized log-in exploit users’ information. Source

Gala has deleted its tweet announcing a partnership with actors The Rock and Mark Wahlberg—the token fell 13%. Source

SushiSwap is to launch a DEX aggregator and DeFi incubator in Q1 2023, in a bid to 10X its market share. Source

Filecoin Foundation will send a decentralized file system to space this year aboard a Lockheed Martin satellite, to test IPFS for in-space communication. Source

Shiba Inu developers are planning to launch a beta version of its Layer-2 network called Shibarium. Source

Macro news

Bank of America has said stablecoins and CBDCs are the future of money and payments in a new research report. Source

The Chinese digital yuan represents 0.13% of cash and reserves held by the central bank. Source

El Salvador has passed a crypto bill providing the framework for a Bitcoin-backed bond. Source

A former Bank of England advisor has said CBDCs are not worth the costs and risks. Source

The Bank of Tanzania is cautious about taking a CBDC approach and is waiting for the conclusion of its research before making a final decision. Source

The Bank of Thailand has announced plans to allow virtual banks to operate in the country for the first time. Source

The Central Bank of Iran is working with the Russian government to issue a new stablecoin backed by gold. Source

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Market Analysis by Rekt Capital

In today’s edition of the newsletter, I’ll share my thoughts on the macro bearish invalidation that many Altcoins are showing signs of but haven’t yet fully confirmed.

Because for Altcoins to invalidate a bearish bias, Altcoins need to then confirm a bullish bias.

So while Altcoins may be positioning themselves for an invalidation of a bearish bias, they are yet to confirm a bullish bias; as a result, Altcoins find themselves in a strange transitional, macro trendless vacuum.

In today’s Altcoin market update, I will cover a few Altcoins today, including:

• UniSwap (UNI)
• Polkadot (DOT)
• Dusk Network (DUSK)
• Enjin Coin (ENJ)
• Elrond (EGLD)
• Hedera Hashgraph (HBAR)
• Crypto Com (CRO)

Let’s dive right in.

UNI/USDT — UniSwap

UNI has enjoyed a rally from the red horizontal support, a level that has enabled a strong rally in the Summer of 2022.

However, just like in the Summer of 2022, even now UNI is close to the black Macro Downtrend.

This downtrend has been a point of rejection for UNI.

Technically, breaking the Macro Downtrend would be bullish for UNI.

Losing the red level as support on the other hand would be bearish for UNI because it may be currently forming a Macro Descending Triangle with the Macro Downtrend being the sloping resistance the red level acting as a base of the predominantly bearish macro structure.

In a nutshell:

Macro consolidation in towards the apex of a potential Descending Triangle.

Break the Macro Downtrend = bullish.

Lose the red level as a support: bearish, with scope for a revisit of the orange area below.

DUSK/USDT — Dusk Network

Red area will act as resistance in the short-term.

But if this red area rejects DUSK and it manages to land on the blue support and retest it as such, then DUSK could follow the green path.

Lose blue and I won’t be interested in watching it going forward.

In a nutshell:

I’m only interested if blue holds as support.

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Final Notes

Looking for more content? Well, this is a must watch: Bitcoin Exploded 676% The Last Time This Happened!

Thank you so much for your support, and I truly hope that today’s issue will give you insights needed to help you master your wealth.

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See you next time!

Lark and the Wealth Mastery Team

Legal Disclaimer

TCL Publishing ltd (director Lark Davis, owner of Wealth Mastery) is not providing you individually tailored investment advice. Nor is TCL Publishing registered to provide investment advice, is not a financial adviser, and is not a broker-dealer. The material provided is for educational purposes only. TCL Publishing is not responsible for any gains or losses that result from your cryptocurrency investments. Investing in cryptocurrency involves a high degree of risk and should be considered only by persons who can afford to sustain a loss of their entire investment. Investors should consult their financial adviser before investing in cryptocurrency.

You can find a full disclosure of all my crypto & venture investments here.