In This Issue
- I share my thoughts on the state of the market, FTX collapse, Instagram NFTs, Solana partners with Google and a possible SUI airdrop.
- Rebecca breaks down the latest news.
- REKT has a TA report on Bitcoin and a handful of altcoins.
- Flash Loans: Eric explains what they are and how you can use them to make money.
- Airdrops: Big list of airdrops this week as well as a step by step guide on how to position yourself for a one in particular.
What’s On My Mind by Lark
The State of the Market
Black Swan. You don’t see them too often, but that is what has happened with the collapse of FTX, more on that in a minute.
Markets are absolutely devastated. Bitcoin has put in a new yearly low. Many coins are heading in that direction if not already there. Ethereum has lost key support. Basically absolute carnage.
Crypto finally broke away from the macro carnage, but in the wrong direction.
And while it is easy to talk about the opportunities that are showing up in the market, the truth is that this collapse will have hurt a lot of people.
If that is you, then I want you to know the following.
- Losses can be recovered, and even if it seems hopeless now remember it is just money. If you are really feeling depressed or worse about the situation then reach out to friends and family. Call a hotline if necessary. Don’t suffer in silence.
- Many people in crypto have suffered catastrophic losses before. And many have recovered and gone on to make it all back and gone on to new portfolio highs.
- A new bull market will come, and while it doesn’t feel like it now in the depths of despair of this bear market, it will.
So what am I doing now? Not much, some low bid buy orders filled. But, with so much chaos and such a strong potential for contagion I feel like the right play at this time is to wait for the dust to settle. Catching falling knives could be very dangerous right now. I am holding onto my fiat while this all plays out.
In a shocking turn of events a top 5 exchange FTX has gone under. This came just a day after the CEO’s Lehman Brothers tweeted that “FTX is fine”. Spoiler alert, everything was not fine.
The trouble all stemmed from FTX using its exchange token FTT as collateral for loans, and when the prices started falling the loans started getting called in. Leading to a cascading collapse of FTX in a matter of a few hours.
This collapse is without a doubt going to shake the entire crypto industry. This is bigger than anything else that has happened this year. This is our Mt. Gox moment in 2022.
It has been a hard year for crypto investors with so many collapses and bankruptcies.
- LUNA/UST Collapsed
- Celcius and Voyager Collapsed
- Three Arrows Capital Collapsed
- And Now FTX Collapsed
If you are new to crypto, then realize that what we are seeing is extremely rare. I think that the FTX story still has a lot of twists and turns to expect as we see the market unwind its exposure to what at one time was the second biggest exchange.
Also, while Binance had originally floated the idea of buying FTX, they have officially backed out of the deal.
That all being said, it is a good time for a reminder to not treat your exchange account like a bank. It is not. Substantial holdings should be kept on a hardware wallet.
Now let’s talk about something that is not this disaster…
It was announced last week that Instagram would be allowing for minting NFTs directly on their platform! This is huge because Instagram has 1.4 billion global users. The blockchain chosen for this incredible integration is Polygon, which has seen significant price action since that time. Matic has been one of the most bullish assets in crypto during this bear market with an incredible range of big partnerships coming out including Reddit, Starbucks, JP Morgan, and Disney!
Solana Partners With Google
Google recently announced that they will be running a Solana network validator. This means that Google will now be verifying transactions and maintaining a record of transactions. It will also be adding its Blockchain Node to the Solana ecosystem. This is pretty big news for Solana. And I know that Solana has been suffering from lots of problems this year like frequent outages… which c’mon, that’s not good for a blockchain now is it? But, those issues aside, Solana is getting noticed in a big way! Now let’s see if they can weather the FTX fallout or not…
By the way, there is like 18 million Solana getting unlocked to early investors in a few hours. This is literally hundreds of millions worth of SOL. Be careful trying to catch knives on SOL, things could get worse before they get better.
SUI Airdrop? Maybe
Aptos, the new “Solana Killer” that launched a few weeks back had an airdrop to users that was worth over $1,000! Not bad for free money in a bear market. But many are already saying that the “Aptos Killer” is Sui. We covered the opportunity to become a node operator for Sui a few months ago in the premium edition of Wealth Mastery. But, there could still be an opportunity to get some free money by testing out applications on the Sui testnet.
So let’s talk about it!
First you will need a Sui wallet, such as Suiet. Note, you will want to use a new passphrase for this wallet, not an existing one that you use for another wallet.
You may even consider creating a few wallets to send yourself coins back and forth to, so as to help testing the network. And of course to use dapps on the different wallets! Try to do this more than one time ideally. For example, set aside two times a week when you will log on and play with the dapps and send some transactions.
Then you will need some testnet coins. You can do this by tapping into a faucet such as the one built into the Suiet wallet. Just click on airdrop. Note, none of these are “real” coins. It is all just testnet play around stuff.
Now that you have a wallet and some coins you will want to do something.
There are already a few dapps which have deployed on the SUI testnet. The theory here is that if you use these dapps on testnet and help to test the network that you may receive a future airdrop.
Here are a few to check out
- Sui Name Service, similar to Ethereum Name Service. Basically digital IDs.
- Movex, the first decentralized exchange on Sui.
- Coming soon is Kriya Dex an on-chain derivatives exchange.
- Blue Move is an NFT marketplace.
The Sui Discord might be a good place to keep an eye out for hot new projects running on the testnet. And if you start digging around you will find that there are about 20 dapps or so currently or soon to be on the Sui testnet.
Disclaimer, you might not get any airdrop. Nothing is 100%. I am not vouching for any of the above protocols as good investments. Just sharing that by using these applications on the testnet you “may” be eligible for a future airdrop.
In Case You Missed It by Rebecca
Crypto market news
Lebanese are turning to Bitcoin and Tether to store funds and make payments during times of economic crisis. Source
MoneyGram has announced most of its US users will be able to buy, sell, and hold cryptocurrencies via its mobile app. Source
Bitcoin miner, Iris Energy, is on the verge of a $103M loan default as some of its mining equipment isn’t meeting financial obligations. Source
Bitcoin miner, Stronghold Digital, has completed its debt restructuring after returning 26,200 miners to NYDIG exchange over the past 10 weeks. Source
Crypto exchange, Deribit, suffers a $28M hot wallet hack and had to halt withdrawals. Source
BitMex has reduced its headcount after the CEO steps down, in a pivot away from spot trading, brokerage, and custody services. Source
Galaxy Digital plans to reduce its headcount by 20% in a bid to optimize the company during the bear market. Source
Fidelity offers retail investors commission-free trading on Bitcoin and Ethereum. Source
Mastercard continues to support cryptocurrency and blockchain start-ups by adding 7 companies to its crypto accelerator. Source
Santander UK limits deposits to crypto exchanges in a bid to “protect customers” and doesn’t rule out a total ban in the future. Source
Kraken’s NFT marketplace goes live in beta mode to customers on the waitlist after being delayed since the summer. Source
Coins and Projects
Ethereum sees the minting of OFA-compliant blocks rise to 73%, adding to the growing censorship concerns. Source
Ethereum’s Shanghai upgrade is due for release in the second half of 2023 and its EIP-3651 proposal plans to cut gas fees on the network. Source
MetaMask has partnered with NFTBank to allow users to track the value of their NFTs. Source
Binance CEO, CZ, announces his intent to acquire FTX to help with the liquidity crisis – pending due diligence checks. Source
USDC issuer, Circle, has announced Solana will add support for Euro coin, EUROC. Source
Neon Labs will launch its EVM for Solana on 12 December, allowing Ethereum apps to launch on the Solana network. Source
Polygon was used as JPMorgan’s first on-chain DeFi transaction as part of the Monetary Authority of Singapore’s (MAS) Project Guardian. Source
Meta has confirmed it will not charge users for creating or selling Polygon NFTs on Instagram until 2024. Source
Google Cloud’s partnership with Solana will see them become a Solana validator. Source
Aave community votes to deploy on ETH Layer-2 scaling solution, zkSync’s 2.0 testnet. Source
STEPN has partnered with ASCIS to launch a physical running shoe that’s available to pay using USDC on Solana Pay. Source
Evmos developers have raised $27M in a token sale led by Polychain with the aim to deploy the funds into developing the ecosystem. Source
Solend reported a $1.26M market manipulation attack across three of its lending pools. Source
Elrond rebrands as MultiversX as It begins to shift its focus to the Metaverse with three new products called xFabric, xPortal, and xWorlds. Source
Elon Musk teases Dogecoin integration for Twitter after less than a week since his takeover. Source
Fantom has potentially seen the return of Andre Cronje which sends the FTM price up 24%. Source
Dapper Labs lays off 22% of its workforce due to the current economic situation. Source
Has Formula One racing team has partnered with OpenSea for NFT expansion plans. Source
Japan’s largest mobile operator, NTT Docomo, has partnered with Astar network to invest $4B in a Web3 consortium. Source
El Salvador President sat down for an interview with US Fox News anchor, Tucker Carlson, and explained that the West will eventually move to a decentralized financial system. Source
China holds $6B in cryptocurrencies including 194,000 Bitcoins – that’s more than MicroStrategy. Source
US authorities have seized $3.36M in Bitcoin relating to Silk Road, a darkweb marketplace. Source
The US Fed hikes interest rates by the expected 0.75% in a confusing speech that signaled both dovish and hawkish actions are possible. Source
The Bank of England raises interest rates by 0.75%, the largest hike in 33 years and signals the potential for the longest recession on record. Source
UnionBank, one of the largest universal banks in the Philippines, has launched Bitcoin and Ethereum trading. Source
Canada has launched a consultation on crypto, stablecoins, and CBDCs as revealed in its new mini-budget.Source
The New York Fed says CBDCs could reduce foreign exchange transaction speeds to 10 seconds. Source
The Bank for International Settlements is leading a CBDC project with the Bank of France, the Swiss National Bank, and the Monetary Authority of Singapore (MAS). Source
The Bank of Korea has completed a 10-month-long CBDC experiment, including using it to buy an NFT. Source
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Market Analysis by Rekt Capital
In today’s newsletter, I will cover Bitcoin as well as a few Altcoins, specifically:
- Chainlink (LINK)
- Coti (COTI)
- Binance Coin (BNB)
- Chiliz (CHZ)
- OMG Network (OMG)
- Litecoin (LTC)
Let’s dive in.
Bitcoin — BTC/USD
Here is an overview of the macro situation for BTC:
Technically, BTC has failed to reclaim the macro ~$20000-$23000 range (green-red), which now means it will likely figure as resistance.
This now sets price up for a revisit of the Monthly levels which are lower:
The ~$17000 Monthly support has been tagged already, with price overextending below as of this moment.
If BTC is able to Monthly Close above ~$17000 then price could bounce from there.
But until the Monthly Close, there is plenty of time for BTC to experience volatility and if things get even more extreme — tag the lower ~$14000 Monthly support.
Chainlink — LINK/USDT
For some background and context on today’s analysis, here is an analysis I shared earlier this month:
Here is an update:
LINK perfectly followed the blue path after retesting the black level as support.
As a result, LINK rallied +19% towards the red diagonal resistance to end the proposed move.
This is where LINK strongly rejected upon contact, the expected point of rejection.
LINK has since returned to the green level.
What does this recent volatility mean for LINK from a technical standpoint?
Perhaps most importantly, it means that this multi-month consolidation within the green-black macro range hasn’t been able to generate any sustainable buy-side momentum.
Technically, LINK has performed a fake-breakout from the macro range, ultimately rejecting at the red diagonal resistance.
Now LINK finds itself back at the macro Range Low but the problem that is surfacing now is the following question:
If LINK has failed to perform a breakout after months of consolidation at current levels, what does that say about buy-side interest?
The reality is that this recent volatility sheds a condemning shadow on buyer interest at these prices and further casts a shadow of doubt on the green Range Low of the macro range — can price sustain itself here if the buyer interest is so weak?
Ultimately, a Monthly Close below green would confirm suspicions of this green level weakening as support.
And if or when that happens, LINK would breakdown from the range for a revisit of the mid-$5 region.
But until that Monthly Close is in or until LINK has flipped the green Range Low on the Weekly timeframe, price could still bounce from the green level to as high as the black Range High, as it has been doing for months during its consolidation period.
The question is — how much longer can LINK consolidate in this fashion before a major macro move finally takes place?
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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.
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