What’s On My Mind by Lark
Crypto Mega Pump
On Monday, Bitcoin pumped by over 18%, making it the biggest daily candle in about a year. Impressive price action, and frankly quite surprising considering the general fear in the market. While it is tempting to give into FOMO and go all in to catch the pump, just keep in mind that a lot of things can still happen on the macro scene. The full effects of the conflict on the global economy remain to be seen, and the FED meeting in March still leaves many unknowns for the market. I am just sticking to my plan. Accumulating. That being said, we are looking at the possibility of a full on market reversal here if Bitcoin can hold itself up here. Crypto has a way of getting very bullish very quickly. Which is part of the reason why I am willing to hold through down turns, because things can always turn around so quickly.
By the way, here is a little chart hopium of a potential double bottom forming up. IF we confirm this then the target is the mid 50k price zone. That is IF we confirm, which requires closing a daily candle above the red line on volume.
Geopolitics and Bitcoin
The Ukrainian government has officially started accepting Bitcoin, Ethereum, and USDT to assist with the war efforts. This would be the first time that a country has directly solicited donations using crypto to fund a war effort. Also apparently Ukraine will be doing an airdrop for contributors. The ongoing conflict in Ukraine has also seen Russia largely removed from the SWIFT network which means that Russia will now be very isolated financially. While some Bitcoiners have been calling for Russia to adopt Bitcoin, there is no indication such a thing will happen or that it would be desirable. IMO, if Russia were to adopt Bitcoin to evade sanctions then Bitcoin and crypto more broadly would come under heavy restrictions from Western governments. The EU has already announced by the way that crypto will be included in the sanctions package. Besides, a much more likely scenario is that Russia will either adopt the Chinese SWIFT equivalent or release its own version.
We saw some very interesting price action earlier this week with Bitcoin rallying 11% on Monday and the S&P 500 finishing the day down 1.5%. That doesn’t happen often in crypto. We are also seeing an inverse relationship with Bitcoin and gold. While gold did see some good price action in the lead up to the Ukraine conflict, it has since cooled off. Meanwhile, Bitcoin has moved in exactly the opposite direction with a strong rally at the start of the week. That all being said, our fate is often heavily tied to the equity markets, and any major deviations are often short lived. And there remains a lot of fear and uncertainty in the equity markets.
Cash is Still King
With the ongoing geopolitical tensions being so high the simple reality is that cash is still king of this market, sure it is trash, but still king right now. It is for this reason that I am maintaining a strong defensive cash position at around 15% of my portfolio. I have even added to my cash position this week by reducing my position in LUNA which was heavily in profit. Most of my crypto based cash is being used to earn yield in various farms as laid out in my portfolio section. Although some of it is just chilling for quick access.
Another day, another blatant cash grab in NFT land. This time something called Pixelmon grabbed 70 million dollars from NFT degens. The art they ended up buying was laughably bad. After being promised high quality art pieces, this is what investors got.
In this case though I feel like the red flag was there from the beginning. The NFT sellers were charging 3 ETH a piece for these piles of crap. Yes, people paid more than $7,500 for these. If you are an NFT speculator then never, ever, pay more than 0.5 ETH for a sale, ideally 0.1 ETH or 0.2. Even 1 ETH makes flipping for profits hard. A collection that did do well last week was Invisible Friends. To give you context many NFT aficionados thought the mint price was too high at 0.25 ETH. This set did get a big return for investors with floor price around 6 ETH at the time of writing.
Magna/Anime NFTs by Sam
When the Azuki project dropped 10,000 NFTs back in January it made a big impact, dominating the market. It’s still ranked at number one over the last 30 days on OpenSea, and has a floor price over 10 ETH.
Azuki did everything right, with a metaverse plan, community, physical merchandise, and–most importantly–fresh, clean, manga-style visuals, done at a very high quality level.
For anyone into manga and anime, Azuki has an immediate appeal, and nowadays there are a lot of people around the world into manga and anime.
Azuki might be the big name at the moment, but it’s not the only otaku-friendly project or platform, so let’s look at some other points where anime and NFTs crossover.
Trophee and Manga Token
Built on Binance Smart Chain is Trophee, an NFT platform and marketplace utilizing its own native token, $MANGA.
The Trophee ecosystem is a little complicated, but it contains some nice-looking NFTs, and the $MANGA token can be staked to earn more tokens. Additionally, holding the tokens enables access to free manga (as in comics, not the token) on the system’s Manga Reader.
Trophee’s NFTs are priced in $MANGA, and the best way to get to grips with it all is to buy some of the native tokens and start interacting (click through to Pancake Swap at the top right of the Manga Token site).
Minted in February on Solana, Otaku Origins sold out over the course of two days, and will now push on with plans laid out in the litepaper. It’s heavily anime focused, and ownership of one of the NFTs permits entry to the project DAO.
The plans are to produce a community-driven comic book series and to expand into gaming. Some of the artwork for the comic books has been revealed and is looking good.
With a sizable following in the Cardano NFT space is ADA Ninjaz. It’s a carefully thought out project including original, readable manga, storytelling, community, a planned soundtrack, and NFTs, the first two seasons of which you can pick up on secondary, with one more season yet to come.
Psychedelic and upbeat, Karfuru launched at the start of February, sold out its initial 5,555 NFTs very quickly, and has a huge following on its social media channels. There are plans in the roadmap for 3D NFTs, and physical toys.
And if you like Karafuru, then you should also familiarize yourself with WD Willy, the artist who, along with Museum of Toys, co-created it. You can find more of his work on Tezos-based marketplace Hic et Nunc.
If you buy one of the 10,000 Capsule House NFTs then you’ll gain access to future events and offers in the CAPSULEVerse.
What makes that enticing is that Capsule House is the work of Kaejunni and Seerlight, both talented illustrators with big followings. Also, according to the Capsule House roadmap, capsule holders will have exclusive access to future work by Seerlight.
For manga-style illustration, it’s a good idea to follow individual artists who are creating 1/1 NFTs. Many artists mint and sell on Foundation and tend to be active on Twitter, so set aside some time, and some ETH, and see where they lead you.
You can check sales and social media followings, but it’s often the case that there isn’t much artist information, meaning you can find yourself just going on the art itself. That makes for a refreshing change though–the opposite of information overload–so here are some visuals by a few skilled creators.
Alternative NFT Platforms
In addition, on Ethereum and other chains there are yet more alternative platforms trying to claim a share of the market.
Operating on the Solana blockchain, Holaplex is a platform for creators to make and sell NFTs. It allows artists to create their own stores, put their work up for sale, and this can all be done without having to write any code. And on top of all that, it’s free to use.
Bridging the gap between traditional art and NFTs is new marketplace PRISM. It features work by artists from outside the NFT space, and many of the digital assets on sale are tied in with physical objects.
Still in development on Cardano, but one to keep an eye on, is Artifct. A unique part of this project is that last year the team sold 5,000 NFTs representing land parcels on the moon, and there’s a possibility that the marketplace and a lunar metaverse will be tied together.
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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.