How to Play a Relief Rally, Polygon News, Cheap Coins & NFT Projects with Big Plans
In This Issue
- I share my thoughts on the state of the market, the FED meeting next week, how to play a relief rally, Zipmex goes down, Polygon news, Cardano Vasil & Cheap coins.
- Sam has a report for you on NFT projects that have big plans.
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What’s On My Mind by Lark
The State of the Market
Relief Rally is here… sort of… and I have some Tesla news!
Anyway, Ethereum has led the way this week with a massive price move on the back of the Ethereum Merge being announced for a possible release on September 19th.
Polygon’s Matic token also pumped hard after the Disney news was announced and pumped further on a tease from the team about a big news release for their zkEVM roll out.
Near protocol bounced perhaps on layer one fomo buys or perhaps due to its partnership with Bitgo.
The main point here is that bullish news seems to move markets right now. This is a good sign and releases a bit of pressure from the markets after the last few weeks of pain.
We are likely in a relief rally now for crypto, the question now is if it can maintain any momentum. While it is easy to get bullish, we must remember that the macro scene still has a lot of uncertainty to unwind before we can confidently say a real market reversal is in play.
And perhaps nothing exemplifies the state of the market better than Tesla’s earnings report today which showed that they have sold 75% of their Bitcoin.
This immediately led to a market panic. Because panicking over something that happened a few months ago makes sense.
Anyway, the key now is to see if the market bounces back quickly from the Tesla news, or if the market was so damn fragile that this was enough to snuff out the relief rally.
FED Meeting This Week
The Federal Reserve is meeting next week and it is largely assumed that they will raise the interest rates by 100 basis points on the back of the 9.1% inflation print this week.
But what I find interesting is that the market has flipped bullish quite quickly.
This is perhaps because many participants believe that 9.1% was the peak for inflation because commodity prices have been cooling. In fact prices for oil and key food crops cooled in the last week of June which was too late to help June CPI, but right in line to see a lower CPI print for July.
That combined with the 100 basis point rate hike, or even just another 75 point raise, will be seen by many as a sign that things could be moving towards a reversal.
How To Play A Relief Rally
Here are some thoughts on how to keep sane during a bear market rally.
By the way, maybe I am wrong and this is the real deal and we shoot to 100K BTC by December, BUT, macro is still cooked. Until we get higher time frame reversal confirmations I will be playing cautiously.
- Be careful chasing pumps. Many make the same mistakes over and over again, chasing green candles only to get rekt again and again.
- Manage expectations. Remember, we are still in a bear market until proven otherwise. Relief rallies are nice, but be careful about getting too bullish.
- If you are running trades then take profits and or move up stop losses.
- We have talked a lot about altcoins that may not make it long term, pumps are good times to deleverage from those coins. For some it may be one of the last times they get a pump.
- Don’t be afraid to rebalance a bit. Nothing wrong with reducing some positions that may have got out of hand.
- For the traders, there will be some really nice short term opportunities to nail some nice longs, and then when the steam runs out short back down.
Zipmex Goes Down
Never heard of Zipmex? Neither had I until they announced they are halting withdrawals.
The CEO of FTX had previously warned that many smaller exchanges are insolvent and to get your funds off. It seems he was indeed right.
I know some of you are using some really high risk no name exchanges, please be careful and consider at least switching to someone more reputable like Binance, FTX, or Bybit or even getting your coins off the exchange and putting it in a cold wallet.
In spite of the pump, this is still a bear market, and this kind of stuff will keep happening.
Polygon has released a major announcement that they will be launching an Ethereum layer two scaling solution called zkEVM.
This will use zero knowledge tech to offer a low fee layer two environment on Ethereum.
It will be compatible with all existing Ethereum dapps and will directly compete with existing layer twos Arbitrum and Optimism.
This is a nice complement to Polygon’s Ethereum based sidechain, but the layer two space is a crowded one and they will need to fight for users.
The testnet will come out likely in August and the mainnet will come out in “early” 2023.
The Vasil hard fork roll out to mainnet should be announced any day now.
When it does happen I can imagine a nice rally coming in from Cardano buyers assuming the relief rally hasn’t been shattered by Tesla.
The testnet for Vasil launched earlier this month, and when it was launched the team said it would be “about a month” until Vasil goes to mainnet.
Watch for an announcement in the near future. It “could” be a good long opportunity.
The market dump has produced a lot of opportunities to pick up coins at or near public sale prices for some newer coins that launched later in the cycle or when the market was already crashing.
Not all of them will survive the bear market, to be crystal clear some could go to zero, but some of them could go on to become the next big thing.
I am NOT saying to run out and buy these coins, but perhaps you might like a short list of coins to research to consider if you see opportunity or not.
Elumia is an MMORPG play to earn game, big backers include Alameda, Animoca, and Crypto.com. The public sale was 5 cents, and the private sale 4 cents. The Current price is 2.5 cents.
Decimated is a dystopian future scifi shooter game. Backed by Spartan, Huobi, and Alameda among others. The private sale was 4 cents, the current price is 3 cents.
Solice is a Solana metaverse coin with big backers like Alameda and Animoca. The public sale price was 7 cents, and the private sale 5 cents. At the time of writing the price is 6 cents.
Monkey Ball is a play to earn monkey sports game. Fun idea haha. Consistently building, backed by Griffin and Solana Ventures. Current price is 4X over private sale which was 2.5 cents.
Immutable X is a layer scaling solution for NFTs and gaming! Good gaming partners like Illuvium, strong backers like Coinbase and Arrington. Private sale was 10 cents, current price is a dollar. So not exactly on a firesale, but a promising coin worth keeping an eye on! Especially if the bear market drags is lower.
Breederdao is a “factory” for gaming assets. Big backers like A16Z and Delphi. Private sale was 10 cents, current price is 11 cents.
Cere Network is a data ownership protocol backed by Binance Labs and Arrington. Public Sale price was 3 cents, current price is less than a cent. Although private sale investors are still up almost 3X!
These are just a few examples I like, there are quite a few more tokens out there with good teams, products, and backers that are currently on sale!
NFT Projects that have Big Plans by Sam
It’s common in a crypto bear market to hear people say that it’s time to build, and it’s good advice.
If you’re not developing a product yourself, but just looking to invest, then you’ll want to identify which teams are busy and well positioned for the next bull run. In that case, let’s take a look at some NFT projects that are hard at work and building for the long term.
Image credits: Yuga Labs
It’s no secret that Yuga Labs–the creator of Bored Ape Yacht Club–has big plans, and if we’re looking for solid bets and justified hype, then Yuga has to be on the list. When it comes to building out a product to go with the JPEGs, it’s all about Otherside, which is Yuga’s shot at creating a metaverse.
Yuga are working with Improbable, a British metaverse tech company, to build their virtual world.
Improbable also powers MSquared, which aims to create a network that will connect interoperable metaverses.
The co-founder and CEO of Improbable is Herman Narula, who has laid out a philosophical case for the metaverse in his book, Virtual Society.
Last Saturday, Otherside successfully executed First Trip, a tech demo entry to its developing metaverse that was accessible to Otherdeed holders. Footage from the event looks very impressive, showing a smooth, game-like spectacle, and an evolving litepaper lays out the important details from here.<h3 id="crypto-packaged-goods“>Crypto Packaged Goods
Image credits: Crypto Packaged Goods
Explore Crypto Packaged Goods (CPG), and you’ll find it’s sprawling and a little difficult to get your head around.
NFT meta during the bear has been for simplicity (no Discord, no roadmap, just mint it and hope for the best), but CPG is a product of the bull market, when projects became increasingly complicated.
Basically though, CPG aims to build networks and mentorship, act as a product incubator, offer consultancy and onboard people and organizations into web3 (which includes decentralization, crypto and NFTs).
The project was founded by Chris Cantino and Jaime Schmidt, who are both well known in the web3 space.
CPG NFTs are still not cheap, but, here in the bear market, are selling for a lot less than they were a couple of months ago. The two collections available are the Genesis Passes and the Pop set.<h3 id="wagmi-united“>WAGMI United
Image credits: WAGMI United
If you’re interested in sports and NFTs, then you’ll want to follow WAGMI United. This web3 venture has actually bought Crawley Town FC, an English football (as in, soccer) team in EFL League Two. WAGMI United also partnered with Adidas, and the team’s new shirt features a Chromie Squiggle.
The WAGMI United team includes well known names from the NFT space including Gary Vaynerchuk, Snowfro and Justin Taylor.
Anyone familiar with lower league English football will know it’s a gritty, unforgiving environment where the grind for points is even more punishing than the Discord grind for an NFT whitelist spot, so it’s going to be interesting to see how that intersects with the web3 digital world.
At the time of writing, WAGMI NFTs–which give access to merchandise, tickets, voting decisions, and other benefits–can be picked up on secondary for 0.23 ETH, while there are still NFTs remaining to be minted at 0.35 ETH.
The fact that they haven’t minted out is a negative, but at the same time, the sale has already raised around 3 million GBP, which is a significant amount of investment for a League Two club, and club ownership is a long-term, formal business venture, so although things might not always go smoothly, this project is just getting started.<h3 id="altered-state-machine“>Altered State Machine
Image credits: Altered State Machine
Who hasn’t looked at their JPEGs and thought to themselves, if only they were intelligent..?
Leading us optimistically to a future in which blockchain-based cartoon apes wage war on humanity is Altered State Machine (ASM), which has funding from investors including Enjin and Animoca Brands.
It’s an innovative project that connects NFTs to Machine Learning (ML) and Artificial Intelligence (AI).
In the ASM protocol, you create an AI bot called an Agent, which has a Form NFT, a Brain NFT, and Memories which are stored in the Brain.
The Form is the visual part, and the Brain is the AI part that is trained using ML models, the outputs of which make stored Memories.
Some applications for the Agents might include game and metaverse characters, digital assistants and DeFi trading bots, and it’s fascinating to watch AI, ML and NFTs intersect. ASM Brains are currently trading at a floor price of around 1.4 ETH, well below a peak of almost 5 ETH back in January.
Land and Accommodation Projects
Image credits: Satoshi Island
It’s always interesting to find people experimenting with new crypto use cases, and there are several projects that are finding ways to tie together NFTs and real estate.
Satoshi Island is located in Vanuatu, in the South Pacific, and this private island is home to a project that will use NFTs as proof of land ownership and citizenship. The plan is to build a real-life crypto community, with a crypto-based economy, and it’s all being done with approval from the Vanuatu government.
Cabin is a project aiming to build a decentralized city, and a network of neighborhoods. It’s taking the web3 digital philosophy and mapping it onto the real world (with a first location node in Texas), and it will incorporate NFT Passports.
Stay Open is aimed at digital nomads, creates pod hotels from repurposed buildings, and plans to use a blockchain based rewards system, and NFTs that bring benefits and utility to holders.
Kift DAO is all about the vanlife, and aims to create a community network of like-minded members. Its Kiftable NFTs, which were created by the founder of Vanlifer, are still minting.
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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.