In This Issue
- I share my thoughts on the state of the market, Genesis trading, Black Friday Ledger sale, FTX hacker dumping, Cardano’s new privacy coin, Metamask airdrop & Arbitrum on fire.
- Rebecca breaks down the latest news.
- REKT has a TA report on the Litecoin halving.
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What’s On My Mind by Lark
The State of the Market
New yearly lows have hit for Bitcoin! And many altcoins. But not for Ethereum…
ETH continues to be a strong coin in the market. The reasons are simple
- Staking rewards, and locked supply from staking
- Raging defi and NFT scene
- Increasing demand as layer twos like Arbitrum keep sucking up ETH.
- ETH literally being deflationary, and less ETH being dumped because block rewards dropped by 90%.
That being said, FTX and the resulting contagion has been a punch in the gut for markets. The fear, panic, and depression are very real. Many people lost everything on FTX. This has been a tragedy for our industry. And, the secondary market effects could still be months away from being fully realized.
Just keep in mind that we will have some spectacular market rallies during this bear market, but that we are a long way from being out of the woods.
In other news, the FOMC Meeting notes came out today. Long story short, the FED sees the terminal rate being higher than expected, but they also anticipate slowing the pace of hikes soon. The markets generally liked this news.
We also have Bitcoin Miners who are dumping their coins. In fact, the selling was the biggest from miners since late 2015. At the current price, most miners will be unprofitable. It will be a great washout for miners. Meaning that they will be forced to sell their coins.
This has been the wild card worrying markets all week. What will happen to Genesis Trading which is/was Bitcoin’s biggest OTC desk and major crypto lender. What will the implications be for parent company Digital Currency Group which is invested in over 200 companies across crypto. And what does this mean for The Grayscale Bitcoin and Ethereum Trusts? The nuclear scenario is that the trusts are unwound and 635,000 Bitcoin and 3 million Ethereum are dumped into the market.Sadly, at the time of writing I have no indication on how this all resolves.
Speculation is running rampant, however the only ones who can really give us definitive answers are DCG and Genesis. And that is the one thing they have not done yet. But it is definitely THE BIG STORY right now in crypto. I will keep you posted.
Black Friday Ledger Sale
We all know how important self-custody is for your coins, and this year has proved that beyond the shadow of a doubt. So now more than ever is the perfect time to get yourself a hardware wallet to keep your coins safe because Ledger is running a great Black Friday Sale!
FTX Hacker Dumping
A big factor in price declines this week aside from the Genesis fears has been that the FTX hacker has been dumping coins.
This person is almost certainly an FTX insider by the way.
They held around 300 million dollars worth of ETH at the start of the week. They have since been dumping their ETH for BTC, in particular renBTC, and who owns Ren? FTX.
Once the ETH has been turned into renBTC it is then redeemed for real on-chain BTC.
Cardano’s New Privacy Coin
It was recently announced that Cardano is launching a new privacy blockchain and coin.
This new sidechain is being called Midnight. The token will be called Dust.
While many privacy coins like Monero are just payment coins, Midnight will bring private smart contracts.
The idea will be to allow for a highly private environment, but one which can be audited if necessary via optional privacy. This means that when you want to show your activity to someone you can, for example, your accountant. But when you want to keep your transactions private, for example from regulators, you can.
Will it be as private as Monero? No, Monero is 100% private all the time, with no options. Can it offer high utility to average users? Absolutely. The ability to offer high degrees of privacy with optional privacy has a great potential use case. No word yet on how to get our hands on these coins. Stay tuned.
Another week, another airdrop idea. We have long… very long speculated about a potential Metamask airdrop and how that might be obtained if there is one. Well, IF, big IF, there is an airdrop at some point in the future then it will likely go to users who have done one or more of the following.
- Swap tokens on Metamask. Did you know that Metamask has a built-in Swap feature? Yep, it is right there next to Buy and Send. This swapping is done via Metamask itself. This is a highly likely way to qualify for a future airdrop.
- Use The Bridge. Metamask just launched a bridge to let you move funds between Ethereum, BSC Chain, Polygon, and Avalanche. Using this bridge *could* qualify you for the airdrop. If you are bridging coins anyway, then why not give the Metamask bridge a try?
While the above options are the most likely when it comes to getting an airdrop there is also the potential that other Consensys-owned properties and partners could benefit from a drop. Consensys, the lead Ethereum development studio aside from owning Metamask also owns Infura, and works closely with companies like Gnosis Safe.
Remember, that with airdrops nothing is guaranteed, and we do not know the criteria that Metamask will implement if they ever do an airdrop. But hopefully, this will help you qualify if they do.
Remember, we cover all the top airdrop opportunities each week in our Premium Newsletter.
Arbitrum On Fire
Amazingly, in spite of all the insanity in markets, Arbitrum is still kicking butt.
This chart here shows the number of unique addresses on Arbitrum is going nuts! This will be due in part to the low fees, but also a move by users away from centralized platforms and to exchanges like GMX.
We are also seeing major defi platforms like Convex Finance coming to Arbitrum. Further extending the market for defi products for Abritrum users.
In Case You Missed It by Rebecca
Crypto market news
President of El Salvador, Nayib Bukele, has announced the country will buy one Bitcoin a day. Source
JPMorgan had its trademark application for a digital wallet approved, which can apply to online services such as cryptocurrency processing services. Source
Institutional crypto lender, Genesis, halts withdrawals in the wake of the FTX collapse. The firm is also the liquidity provider of Grayscale’s Bitcoin Trust. Source
As the discount widens on GBTC, Grayscale won’t share proof of reserves due to “security concerns.” Source
Coinbase has released a report detailing its holding 635K bitcoins in custody on behalf of Grayscale. Source
Cathie Wood’s Art Invest buys another $1.5M in Grayscale’s Bitcoin Trust, GBTC. Source
Coinbase analysts have warned that the FTX collapse could potentially lead to an extended crypto winter to the end of 2023. Source
BnkToTheFuture drops its plan to acquire crypto lender, Salt, due to the FTX exposure. Source
Silvergate Capital has detailed its exposure to FTX, causing its stock price to drop 7% in one day. Source
Gemini has announced its Earn program is unable to meet customer demands after Genesis halts withdrawals. Source
Coinbase CEO, Brian Armstrong, sold more than $1.6M in COIN shares on 11 November. Source
Sam Bankman-Fried received $1B in personal loans from Alameda according to the FTX bankruptcy filings. Source
Celebrities sued for promoting FTX such as Tom Brady, Gisele Bundchen, Steph Curry, Shaquille O’Neal, and Larry David. Source
Bybit has released its reserve wallet addresses, indicating that over $1B of its assets are in Bitcoin, Tether, Ethereum, and USDC. Source
FTX’s new CEO, John Ray, has begun reviewing its assets as part of the bankruptcy process, criticizing its “complete failure of corporate controls.” Source
Nexo is being sued in the London High Court by a group of investors for allegedly blocking $126M in withdrawals back in 2020-21. Source
CoinMarketCap has launched a new proof of reserves feature that gives users updated insights into the financial state of crypto exchanges. Source
FTX Group has just $1.24B in cash reserves, as revealed in new bankruptcy filings. Source
Hedge fund investor, Bill Ackman, explained in a Twitter thread he is no longer a crypto skeptic, thinks it’s here to stay and used Helium as a promising example. Source
Phemex has published proof of reserves, liabilities, and solvency in a bid to lead by example in the wake of diminishing confidence among crypto investors. Source
Coins and Projects
220K bitcoins have been removed from crypto exchanges over the past 10 days as investors move their coins to self-custody. Source
Bitcoin price drops to its lowest levels in two years as it hits $15,649, marking a fall of over 26% since 5 November, before any FTX speculation. Source
Maker DAO’s new technology called Maker Teleport is available on Arbitrum and Osmosis, allowing faster transactions and withdrawals within the DAI ecosystem. Source
Starknet has deployed its new token, STRK, on the Ethereum mainnet but the tokens are not yet for sale. Source
Ethereum development company, Matter Labs, has raised $200M to support the launch of its zkSync V2 rollup network. Source
Ethereum has been under selling pressure as the FTX hacker has started selling millions in ETH for the Alameda-linked Ren Bitcoin (renBTC) token. Source
Binance Labs has made a strategic investment in Belgian hardware wallet company, Ngrave, and will lead its Series A funding round. Source
Circle, the company behind USDC has reduced its Circle Yield product APY rate to 0%. Source
Cardano is releasing a new privacy-focused blockchain called Midnight and a token called Dust, underpinned by zk technology. Source
Cardano’s regulated stablecoin called USDA will launch in early 2023. Source
Cardano is set to launch an algorithmic stablecoin called Djed on the mainnet in January 2023 and will integrate it into 40 apps in the ecosystem. Source
Solana’s NFT marketplace, Magic Eden, has added support for Polygon-based NFTs, making it the third blockchain available on the platform. Source
Binance and OKX have suspended support for USDT and UDSC on Solana given the ecosystem’s close ties to FTX. Source
Trust Wallet has launched its browser extension and integrated with both Binance Pay and Coinbase Pay. Source
Nexo is set to launch its own non-custodial wallet despite ongoing questions of insolvency. Source
Sui network, another layer-1 blockchain created by ex-Meta employees, launches its testnet. Source
Chiliz has surged 11% in 24 hours as the 2022 FIFA World Cup kicks off, with sports fans turning to tokens on the Socios app. Source
Celo has partnered with Ethereum software company, ConsenSys, allowing its developers to build with the Infura infrastructure to make the blockchain more scalable. Source
The Sandbox is launching a three-part LAND sale with Playboy, Tony Hawk, and Snoop Dogg. Source
Big Short investor, Michael Burry, is bullish on gold amid the FTX contagion. Source
Bank of England’s deputy governor says the UK may need a digital pound. Source
The Reserve Bank of India will launch its retail CBDC pilot in December. Source
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Market Analysis by Rekt Capital
The Litecoin Halving — Everything You Need To Know
Litecoin — LTC/USD
One of the largest gainers in the space right now, LTC is enjoying a strong move to the upside after managing to secure its multi-year trendline as support (black).
Price has rallied to the top of the historical demand area (green) which has figured as a historical Accumulation Area for LTC across cycles.
LTC right now is trying to break out from this historical demand area but needs to Monthly Close beyond it to bring it closer to confirming a new macro uptrend.
Late 2017 has showed that even Monthly Closes beyond the green area aren’t sufficient by themselves, and so price would need to both Monthly Close above the green area and successfully retest the top of the green box as support so as to confirm that new trend.
Ideally, LTC needs to simple stay above $67, which is the price denoting the top of the green area.
And if LTC stays above $67 heading into next month, then it will have a decent chance at breaking the immediate two resistances ahead (blue):
The blue levels are where the upside wicks tend to terminate and reject from, so holding above $67 would increase the chances of breaking beyond these resistances.
One of the important fundamental catalysts underpinning this move is the Litecoin Halving.
So let’s dive into an in-depth analysis of how the Litecoin Halving impacts Litecoin’s price…
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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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