Arbitrum Season, Tornado Cash Drama, aUSD Compromised & the Top NFT Marketplaces
In This Issue
- I share my thoughts on the state of the market, Arbitrum season, Dogechain, Tornado Cash drama & Acala’s aUSD compromised.
- Sam has a report for you on the top NFT marketplaces in 2022.
Premium members also get the following:
- My latest portfolio updates
- Rekt Capital has the latest technical analysis for you on the market.
- Rebecca has all of the latest news for you.
- Upcoming NFT drops
- Defi Dad has a tutorial for you on how to earn up to 56% APR with staked MLP in Mycelium on Arbitrum.
- Jesse has a ton of hot new airdrops for you.
- Hot new token sales.
- Rebecca breaks down this week’s trending coins.
- Jesse has a deep dive for you on Sudoswap.
And much more!
What’s On My Mind by Lark
The State of the Market
Relief Rally Out Of Steam? Well, it seems like the relief rally might be either running out of steam or taking a big break. Trend lines are breaking all over the place!
At the time of writing the RSI uptrend and price uptrend has broken for Bitcoin, with a potential loss of the 50 day EMA on the cards.
Many altcoin charts are looking similar to this. Technicals would seem to be indicating that we are at least seeing a pause in the rally. And as usual it is not just crypto. The S&P 500 was just rejected at key resistance after putting in an overbought reading on the daily RSI.
The situation remains volatile as all bear market rallies are. I had hoped for a bit more bullish action here, but as they say “hope is not a strategy”.
Perhaps once the market chills out about what the FED just said we will see one last hurrah and Bitcoin can get to 28k? Maybe the Ethereum Merge narrative still has enough juice to provide one more good pump?
Remember there are lots of major macro events that are causing way too much uncertainty in markets right now. I remain cautious.
Burry Sells! It has been revealed that famous investor Michael Burry is completely out of the market according to Q2 filings. Burry has been pretty clear that he thinks things are going to get worse before they get better. Seems he is putting his money where his mouth is.
Fed Meeting Minutes: The minutes from the last Federal Reserve meeting are out and they confirm what we all knew but perhaps wanted to deny. And that is that inflation is likely to stay for a long time and that there is little evidence that inflationary pressures are easing. They also said they expect the unemployment rate to increase in the second half of the of year. Long story short, we are not out of the woods yet!
There are lots of cool Arbitrum apps to check out these days as the Ethereum layer two continues to gain traction. Here is a short list of apps you may want to look into.
GMX is a perpetual swap protocol with a robust token model that pays stakers in both escrowed GMX and pure Ethereum rewards which is nice. We covered this one recently here in a full report. You can either trade on GMX or buy and stake their tokens.
Vesta is a new stablecoin protocol… I know, not another stablecoin, but this is a first mover on Arbitrum with a very low market cap. Could be one of those that pay to be early on?
Radiant is a borrowing and lending protocol native to Arbitrum. Basically AAVE, but by a different name and with better rewards! Most stablecoin rates are around 10% now. Ethereum and Wrapped Bitcoin around 12%. MOST of those rewards come from token incentives. Could be one to farm?
Mycelium is a the new kid on the block in the perpetual swaps space on Arbitrum. New enough that you can be really early. Oh, and apparently Bitmex’s Arthur Hayes is an advisor. Premium members, make sure to check out Defi Dad’s tutorial on this for more info on how to get involved.
Or if you want to stick with some of the more household name protocols then check out the usual suspects – Curve Finance, Uniswap, and Aave. All of these protocols provide their usual good services, but on Abritrum.
PLUS, anyone using Arbitrum will “likely” be eligible for a future airdrop of the ARB token. No guarantees of course, but an airdrop will almost certainly be coming! Please note any of these protocols could suffer from smart contract exploits resulting in a complete loss of funds.
Dogechain, A New Controversial Addition To Dog Coin Mania
Dogechain, a polygon edge based sidechain for Dogecoin, has arrived! By the way the CEO and CTO of ANKR are contributors to the Dogechain.
While it has been causing a lot of controversy in the dog coin communities the reality is that Dogechain has arrived. And with it all of the meme coin mania.
One memecoin already went up 300,000% on Dogechain!!! Bow wow! This chain is about as new as can be which means there is risk, AKA YOU CAN LOSE ALL YOUR MONEY, but also opportunity. I fully expect most of the coins that launch there to be total dog shit.
If you want to play around you can check out Dogeswap. BUT, you will need to bridge some doge over first using the Dogechain Bridge. Use Dexscreener to find some low-cap gambles. Love it or hate it, this is one of the big things happening in crypto this week. If you choose to participate then play carefully.
If you want to manually add Dogechain to your Metamask then here is the info:
- Network Name: DogeChain
- Network URL: rpc01-sg.dogechain.dog
- Chain ID: 2000
Tornado Cash Drama Continues
The fallout regarding the USA sanctioning code is continuing with a whole host of reactions coming in across the space.
Tornado Cash is an Ethereum privacy mixer tool that allowed users to keep transactions away from prying eyes. The US government says that North Korean hackers used this protocol to launder money therefore it needs to be sanctioned.
It is easy to say that because bad people used it that Tornado Cash is thus bad and should be banned and sanctioned. But then, bad people have used banks, and we didn’t shut those down did we?
This all sets a dangerous precedent for open source software. And we are already seeing the fallout!
👉 Aave Bans Justin Sun, TRON CEO! Someone sent Justin Sun 0.1 ETH from Tornado Cash which has led to Aave banning his address. Justin Sun has a billion dollars in Aave. Now, to be clear he can still access his funds via the backend smart contracts, but not via the website. While Justin will have the technical skills to do that, do you? The rush to ban users who have interacted with Tornado Cash by apps like Aave is worrying.
👉 The Netherlands arrested one of the open source devs who worked on Tornado Cash. Coding is not a crime. Privacy tools are not criminal. Remember how many bankers went to jail for all of their crimes??? Yeah. It is BS. Now you know why Satoshi disappeared.
👉 Maker Dao Considers Dropping USDC! Currently Maker’s Dai is largely backed by USDC… which is silly anyway, but they are now considering dropping the 3.5 billion USDC in their possession and swapping it for Ethereum. This is due to regulatory fears over USDC accounts being frozen due to Tornado Cash. If a substantial amount of USDC backing DAI was frozen this would kill the DAI peg.
👉 And just to further highlight the absurdity of the situation celebs have been getting hit with sanctioned funds. Meaning that their addresses will now be blacklisted. This is an incredibly poorly thought-out regulation.
Acala’s aUSD compromised!
Another week, another exploit. This time it was Acala’s aUSD which was the victim.
What happened is that a liquidity pool got exploited and it allowed the hacker to mint 1.3 billion aUSD. This dropped the price of aUSD massively, 99% down in minutes. YIKES!
In total, the attackers only netted a few million dollars, but they wrecked aUSD in doing so! Sad to see this happen as aUSD was just really starting to gain traction across the Polka Dot space.
A plan to burn all of the maliciously minted aUSD has been executed. This saw the price of aUSD shoot back up by 10,000% to get close to its peg value. A lot of drama, but hopefully a strong lesson for the Acala team.
Now let’s see how they rebuild user trust in their stablecoin.
Synthetix Review by Jesse (Premium Article)
If you haven’t heard of Synthetix (formally Havven). Don’t worry, you’re not the only one.
Developed and released on the Ethereum Network in 2018, Synthetix is a decentralized derivatives platform that enables users to mint various assets or buy perpetuals using the Synthetix Protocol.
Each synthetic asset (or Synth) is an Ethereum token that tracks and represents the price of a real-world asset. All Synths minted on the network are backed by a large liquidity pool of SNX tokens.
Shortly after Synthetix entered the market, it was on a steady course to becoming the largest derivatives protocol in crypto, with more value locked in the protocol than runners-up Keep3r Network or dYdX and now Synthetix remains the most used and largest liquidity pool for derivatives in Blockchain.
Continued success for Synthetix is due, in large part, to the way the network operates. As development into Layer 2 technologies continues, Synthetix has already begun to issue a handful of Synths on Optimism and encourages users to use this new technology…
The Top NFT Marketplaces in 2022 by Sam
If you’re shopping for NFTs there are now multiple marketplaces across several blockchains, and sometimes dealing in specific niches. It can be a little confusing at first glance, but here are some notable marketplaces and what they have to offer.<h3 id="opensea“>OpenSea
Image credits: OpenSea
The default NFT marketplace, where most people start (and often stay), and which set the template for its competitors. It supports NFTs on Ethereum, Solana, Polygon and the less well known Klatyn. Basically, if you’re into NFTs, you will almost certainly be spending some time at OpenSea.
LooksRare and X2Y2
Image credits: LooksRare
The two main challengers to OpenSea’s dominance of the Ethereum NFT scene are LooksRare and X2Y2, both of which launched this year, have token incentives, and are decentralized. However, neither has as yet looked like a long-term threat to OpenSea.<h3 id="sudoswap“>Sudoswap
Image credits: Sudoswap
There has been growing interest lately around Sudoswap, which takes a new approach to NFT trading and could prove disruptive. Sudoswap is fully on-chain and uses an automated market maker (AMM) protocol, which is familiar in the world of DeFi.
This means increased liquidity and the capacity to create pools for buying and selling collections along customized price curves, along with the ability to provide liquidity to pools and earn fees.
Also of note is that trading fees on Sudoswap are only 0.5% (compared to 2.5% on OpenSea), while creator royalties are bypassed completely. That latter point is controversial as it means that creators lose out on income, and it remains to be seen what the longer term consequences of that might be if Sudoswap continues to grow.
Art marketplaces on Ethereum
Image credits: Async Art
While OpenSea sells all kinds of NFTs, including art, some marketplaces are designed specifically for artists to auction their work and for collectors to hone in on the art scene.
If you’re interested in art and design, or simply investing in artistic collectibles, you can browse through and follow artists who catch your attention. NFTs on these marketplaces are sold through auctions, and there’s always the possibility of picking up on new artists early.
The two major art marketplaces are Foundation and SuperRare, while Async Art allows for a dynamic creative process in which NFTs can be broken down into purchasable layers that can then be manipulated by their owners.
Art marketplaces on Solana
Image credits: Formfunction
There is a burgeoning art scene on the Solana blockchain too, and in some ways the Solana marketplaces come across as more accessible than their Ethereum counterparts.
The site designs have good immediate impact and usability, Solana won’t rinse you for sky-high gas fees, and–most critically–there are some amazing artists and designers selling their creations.
The places to start are Exchange and Formfunction, where you’ll be bidding auction style for NFTs, and you might want to follow the LeDao collective to keep up with new artistic activity.<h3 id="magic-eden“>Magic Eden
Image credits: Magic Eden
Sticking with Solana, there’s Magic Eden, which is the Solana equivalent of OpenSea. If you’re looking for all kinds of Solana NFTs then this is the major marketplace. It also has an NFT launchpad, which is a safe way to find new projects since to use the launchpad developers have to doxx their identities, either publicly, or at least internally to Magic Eden.
Despite OpenSea having extended support to Solana earlier this year, Magic Eden remains the most popular place to buy and sell Solana NFTs. Also, Magic Eden just announced that it will soon integrate Ethereum NFTs, so it will be interesting to see how that plays out.
Image credits: Teia
The major marketplace for the Tezos blockchain is Objkt, which operates similarly to OpenSea, but–due to the Tezos NFT scene having become heavily art-oriented–it leans much more towards art projects.
For a specialized art marketplace on Tezos there is Teia, which, compared to art platforms on Ethereum and Solana, is more avant garde in both UI/UX and content.<h3 id="jpg-store“>JPG Store
Image credits: JPG Store
Moving over to Cardano, its equivalent of OpenSea and Magic Eden is called JPG Store. It has sometimes felt as though Cardano NFT tools were playing catch up with competitors on other chains, but JPG Store has created a smooth, easy-to-use product and, like Magic Eden, has implemented a launchpad for new projects.<h3 id="joepegs“>Joepegs
Image credits: Trader Joe
The Avalanche NFT scene is smaller and at an earlier stage than those on the other blockchains mentioned here, but it’s growing, and the major marketplace is Joepegs, which has been developed by the Trader Joe DEX team and has its own launchpad.<h3 id="coinbase-nft“>Coinbase NFT
Image credits: Amber Vittoria
Mention must go to Coinbase since it’s such a huge name in crypto, but the reality is that its entry into NFTs was an anti-climax. Since launching, its marketplace has been largely overlooked by the NFT community, who continue to trade on dedicated NFT platforms.
The hope was that Coinbase would onboard a crowd of NFT newcomers eager to spluge their hard-earned ETH into the JPG merry-go-round, but that bag-pumping vision has yet to unfold.<h3 id="gamestop“>GameStop
Image credits: GameStop
As it launched soon after Coinbase’s marketplace, gaming and electronics retailer GameStop’s NFT platform was always going to draw comparisons, and the outcome so far is that it has come off better.
GameStop’s NFT platform uses the Loopring Layer 2, which means lower costs for transactions. It will also soon integrate Immutable X NFTs, and there are many blockchain gaming projects being developed using Immutable X’s Layer 2 protocol.
By the way, if you visit Immutable X’s own marketplace, it currently has an open-ended trading rewards program allowing users to earn the IMX token.
Off the beaten track
Image credits: Hint of Mint
For somewhere new and less well known, try Hint of Mint, which operates as a kind of NFT boutique featuring work from selected artists. The curated collections are high quality, and it runs on Polygon, so you’ll avoid paying high gas fees.
This list is far from comprehensive, and the more you explore NFTs, the more platforms you’ll find. You could easily use nothing other than OpenSea, but when you dip into smaller ecosystems you can sometimes find unexpected opportunities.
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Lark and the Wealth Mastery Team
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.