In This Issue
- I share my thoughts on the state of the market, China drama, bonds are bad news, Aptos the Solana killer, risk & Polkadot.
- Rebecca breaks down the latest news.
- REKT has a TA report on Bitcoin Dominance as well as a few different Altcoins.
- Zero-Knowledge Proofs: What are ZK proofs and how can they be used for trustless authentication?
- New Airdrops & Opportunities: Get your hands on some free tokens with this weeks airdrops and incentivized testnets.
What’s On My Mind by Lark
The State of the Market
Long live the crab!
Bitcoin has just been grinding sideways for the last few months. The market currently is like watching paint dry!
We could be facing months more of this kind of market action. With, of course, the occasional terrifying drop, and lots of boredom and false hope.
I know just how easy it is to tune out during this time.
And for some of you, that may be the right call.
But, money keeps being made even in these market conditions. One coin I totally missed was QNT that put in like 500% gains completely countering the market.
But it just goes to show that if you are willing to put in the work that there is still money to be made in this market.
But, make no mistake. Crypto is still following equities, and equities are not looking awesome at the moment. Major risks remain in the global economy and this is a time for caution.
So much China drama this year! The second biggest economy keeps making headlines for all the wrong reasons.
The big stories this week are:
- China is stopping LNG sales to Europe. China had been buying discounted Russian gas and shipping it to the EU, but no more! This will put extra pressure on an already tight situation in Europe.
- Xi Jinping was re-elected to chairman, and in his acceptance speech, he basically said that Hong Kong has been forced into submission and that Taiwan is next. Yikes!
- Semiconductors, the things that make the world go round, have come under attack after a recent announcement from the USA which said that any US citizen working in China on semiconductors needed to leave their job or possibly lose their citizenship. This led to an almost overnight massive amount of stress on China’s chip industry.
All the kinds of drama that markets hate because it creates so much uncertainty.
Bonds Are Bad News
The worst year for bonds since 1920 and the 4th worst ever. Which just highlights the continued risks in the markets. This is the world’s second biggest asset class. It usually moves glacially slow, but now it is moving fast and threatening to bankrupt pension funds! Yikes! I guess they will need to print some more money… again…
By the way, the Bank of England did actually stop buying bonds last week. Sooo…. does that mean the pension funds are all ok now? 🤔
Aptos The Solana Killer
A new blockchain called Aptos has launched. It is being billed as the Solana killer. The mainnet went live on Monday this week. It has created a lot of buzz considering its potential for scaling and the team being largely made up of previous Meta people. Although a shaky launch and heavy centralization leave a lot to be desired.
The initial circulating supply will apparently be around 125 million out of a billion with the VCs and team locked up for 13 months.
Remember that new listings can be volatile and during a bear market it can be hard to find bidders to keep a valuation high. I am watching from the sidelines for now. Be careful if you are chasing the hype and know when to take profits.
One other thing to watch out for is new tokens launching on Aptos. The dexes, games, and other dapps could be big money makers in this new ecosystem… if they get it right. Remember that even then there are a lot of chains out there and that most have almost no users and no dapps.
By the way, we featured this as a testnet a few months ago in the airdrop section. I hope that some of you were able to get in because that airdrop could be worth a nice little chunk of change now!
Upgrade to Premium so you can check out Jesse’s review on this new chain in the next issue of the Wealth Mastery Premium Investor Report.
Risk Right Now
Piling into bitcoin at $69,000 was not a low risk move. Buying Bitcoin around $20,000 though is a lot lower risk by comparison. Can we drop more? Of course. But the risk profile of such a drop is a lot different now. This is why I keep buying BTC at these levels.
If buying altcoins, remember that the risk parameters become very different. Many coins will simply not survive. The risk-reward equation is amplified for altcoins right now. Many will still see another 90% down or simply fade into nothingness, but not all. The reward potential for altcoin investing does remain insanely high. Coins bought during this bear market are the future 100X gainers… if they survive.
Bitcoin might do a nice 10X from the bottom leading into the next cycle. It is the safer lower risk play. Much like Ethereum and a few other top altcoins. That being said, simply having a high ranking now on the charts is not a guarantee of future success. Just look at the top 15 coins from October 2017!
Polkadot Not Dead Yet
I still like Polkadot. A good percentage of my portfolio is in DOT, and other Polkadot related coins like Efinity and Moonbeam. As well as some venture investments like Parallel Finance that have not been released yet.
Why do I still like Polkadot? Well, quite simply it still has excellent potential. The parachain roll out and cross chain messaging all happened late in the bull run and thus the full impacts of what Polkadot is building have not been fully seen yet.
A recent report from Cointelegraph shows that dev activity remains very high with over 500 contributions in September, which is an all time high for the ecosystem.
If we look at total value locked in all parachains it is about a billion dollars. Which is not a lot, nor a little. I plan to remain in my DOT investments for the foreseeable future and to ride out the bear market on these coins which could be big movers in the next bull run. Assuming of course that the Polkadot devs continue to deliver.
In Case You Missed It by Rebecca
Crypto market news
Bitcoin, crypto, and NFTs join the Guinness Book of World Records in the latest edition under the category of “Cryptomania.” Source
Bitcoin ownership in Canada has increased from 5% in 2020 to 13% in 2021, according to a study from The Bank of Canada. Source
Legendary investor, Bill Miller, described Bitcoin as “an insurance policy against financial disaster, with limited fallout” at the Forbes/SHOOK Top Advisor Summit. Source
Bank of America study shows 75% of US Millennials and Gen X investors want to diversify their portfolios with alternative investments such as crypto. Source
CryptoCom has chosen Paris to be its new European headquarters in a $145M expansion. Source
Meta and Microsoft partner up to bring the Office 365 apps into the metaverse by featuring them in Meta’s new Virtual Reality headset. Source
NYDIG has laid off 100 staff over the past several weeks, which is around 33% of its workforce. Source
Hollywood actor, Sir Anthony Hopkins, sold out his debut NFT collection “The Eternal Collection” in under 10 minutes, despite the bear market. Source
Coinbase CEO, Brian Armstrong, plans to sell part of his Coinbase stake to fund research in science and technology. Source
Mastercard has partnered with Paxos to help banks offer crypto trading services to customers. Source
Cameron Winklevoss steps down from his leadership role at Gemini Europe. Source
Kraft Foods Group has filed a trademark application covering NFTs, Metaverse, and cryptocurrencies. Source
Shopify has partnered with Novel, a no-code Web3 commerce platform, to make Web3 accessible for merchants. Source
US state of South Carolina has seen a house sold as an NFT for $175,000 USDC. Source
Walmart’s chief technology officer says crypto will become a major payments disruptor. Source
Coins and Projects
Bitcoin saw 37,800 coins leave exchanges on 18 October, the biggest daily outflow since June’s price crash. Source
Bitcoin gaming and payments company, Zebedee, announced the launch of a non-profit organization to advance open-source Bitcoin development. Source
Bitcoin failed to produce one block for over an hour, leaving more than 13,000 transactions stuck in a pending state for 85 mins. Source
Tether has reduced its commercial paper exposure to zero and replaced its reserves with US Treasury Bills, to de-risk its USDT stablecoin. Source
Ethereum reached 51% censorship levels in a 24-hour period, as it’s producing blocks in compliance with the US Treasury Department. Source
MetaMask users in the US will be able to buy crypto directly from their bank account through the crypto wallet. Source
Binance launches a $500M lending project to support the crypto mining industry by providing private loans. Source
Solana NFT marketplace, Magic Eden, is moving to an optional royalty model in a bid to attract new users. Source
Solana-based DeFi platform, Mango, has been hit by a $100M exploit after the hacker manipulated their collateral. Source
Aptos Labs blockchain launched its mainnet and unveiled controversial plans for its tokenomics. Source
BNB Chain successfully deployed an upgraded version of its network to restore cross-chain transactions after the bridge hack. Source
Binance burns $547M worth of BNB tokens in its quarterly burn event. Source
Binance’s BUSD stablecoin is now available on Polygon. Source
Polygon is being used by the Indian Police to make reporting crime easier for its residents. Source
Cosmos developer, Agoric, is developing a native stablecoin, IST, ahead of its mainnet launch for the Interchain. Source
Cosmos has found a critical security vulnerability in the Inter‐Blockchain Communication protocol that impacts all IBC-enabled chains. Source
Ripple begins testing its XRP ledger sidechain that’s compatible with Ethereum smart contracts, in the first of three steps to introducing it into the mainnet. Source
STEPN is set to lay off over 100 staff and its parent company, Find Satoshi Lab, will also reduce investments in the app. Source
Bored Ape Yacht Club could be about to delay its NFT and ApeCoin staking launch by a month to add a bug bounty program. Source
Uniswap Labs has raised $165M in a Series B funding round led by Polychain Capital, as they turn their attention to NFTs and Web3. Source
Uniswap is to be deployed on privacy-focused Layer 2, zkSync, following a governance vote. Source
Yuga Labs is to be investigated by the US Securities and Exchange Commission (SEC). Source
Axie Infinity has launched its first mini-land game called Raylights and is live for all landholders. Source
Dogecoin will be accepted as payment at Elon Musk’s Boring Company. Source
Everyrealm, a metaverse content developer, backed by celebrities such as Paris Hilton and Will Smith, plans to launch a virtual real-estate game called Hometopia. Source
Decentraland has added Ozzy Osborne, Soulja Boy, and Dylan Francis to the roster for its second Metaverse Music Festival. Source
US Treasury Secretary, Janet Yellen, reiterates a CBDC has advantages and whilst it could take many years, the US should be in a position to issue one. Source
US inflation comes in hotter than expected with CPI at 8.1% for September. Source
US Senator, Elizabeth Warren, has demanded details on the energy consumption of Texas mining companies. Source
US stablecoin bill isn’t happening anytime soon according to House Representative, Jim Himes. Source
The United Arab Emirates (UAE) launches its first physical Bitcoin exchange-traded product (ETP) on the Nasdaq Dubai. Source
China hints at possible Asian yuan to reduce reliance on the US dollar pegged to a bundle of 13 currencies. Source
UK Finance Minister, Kwasi Kwarteng, has been fired and replaced with former Foreign Minister, Jeremy Hunt, after PM U-turns on the proposed tax cuts. Source
Brazil’s Rio de Janeiro is looking to accept crypto payments for property taxes in 2023. Source
Interpol has reportedly set up a dedicated unit in Singapore to fight crypto crimes. Source
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Market Analysis by Rekt Capital
In today’s newsletter, I cover Bitcoin Dominance as well as a few different Altcoins, specifically:
- Cardano (ADA)
- Chiliz (CHZ)
- Thorchain (RUNE)
- Polkadot (DOT)
- Cosmos (ATOM)
- Polygon (MATIC)
Let’s dive in.
It looks like BTC.D is looking set to perform a Monthly Close above the blue horizontal resistnace, much like it did earlier this year.
The implications of this would be that BTC.D would then set itself up for a retest attempt of the blue horizontal into new support so as to enable a move to the red horizontal resistance above.
And the implications for that in the broader market wouldn’t be too kind for Altcoins at all; the majority would likely underperform.
And if this turn of events takes place, then I’ll keep Altcoin allocation sparse.
As for Bitcoin’s price, I’d expect volatility finally though BTC.D doesn’t inform the direction of that volatility.
Either way, Bitcoin Dominance is showcasing to us that Bitcoin will likely become increasingly dominant in the coming weeks and this has tremendous implications for the Altcoin market.
Technically, this means that Altcoins will likely lose major support levels, in which case their existing Bear Market corrections will deepen.
So in today’s newsletter, we’ll look at some Altcoins to understand what sort of realistic downside could take place if things continue to play out as they have been with Bitcoin Dominance.
Cardano — ADA/USDT
Cardano is breaking down from its wedging structure (red), after flipping the top of that structure into new resistance last month (as evidenced by the upside wick in the Monthly Candle of September).
The top of that wedging structure was a confluent resistance with the major blue Monthly resistance; officially, this level is a strong resistance.
Now ADA will head to the black level for a support test but the reality is that that level could be easily lost in which case ADA would enter the red-black range which is where ADA will try to likely find some stability.
A -95% corrections would see ADA reach the bottom of that range whereas a -90% would occur if ADA breakdown from black.
Judging by historical bear markets where a -90% correction is common for Altcoins, a -90% correction could take place now as well and the implication of that is a breakdown into the range which technically means that the correction wouldn’t stop at -90% but proceed deeper…
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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.