In This Issue
- I share my thoughts on the state of the market, Waves being in trouble, Terra is back, the Cardano and Solana futures story, the 19th million Bitcoin mined & inflation.
- Sam has a report for you on undervalued NFTs.
Premium members also get the following:
- My latest portfolio updates
- Rekt Capital has the latest technical analysis for you on the market.
- Rebecca has all of the latest news for you.
- Upcoming NFT drops
- Defi Dad has a tutorial for you on how to earn up to 33% APR with stablecoins on Fantom’s Beethoven-X.
- Jesse has a ton of hot new airdrops for you.
- Hot new token sales.
- Rebecca breaks down this week’s trending coins.
- Jesse has a deep dive for you on Astar Network
And much more!
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What’s On My Mind by Lark
The State of the Market
The crypto markets have taken a tumble at the time of writing. WTF is going on? Well, quite simply it seems that the markets are reacting to released transcripts of the FED meeting that happened two weeks ago. And as we know when the equity markets dump, then crypto dumps right along with it! Here are the key things to note for investors. The FED wanted to raise interest rates by 0.5% not just 0.25%, the reduction came only due to the conflict in Ukraine. Meaning that we can expect more aggressive rate rises to happen at future meetings. The second and likely much more impactful reality is that the FED will start unwinding its nearly 9 trillion in assets. In 2020 and 2021 the FED was buying up assets, but now it is planning to unload them which will put incredible pressure on the markets! Welcome to the era of quantitative tightening! Not good.
Terra is Back!!!
According to the Terra Foundation Bitcoin Wallet it seems that they have started buying Bitcoin again! This after a short break of around a week with the last purchases on March 30th. With the most recent purchases it would appear that Terra has spent around half of their greenlit cash for buying Bitcoin. It is interesting to note that Terra allowed the market to cool down before making new purchases. Seems that everyone wanted to front run the Terra buys last week which pushed the market up. Terra Founder Do Kwon has announced that Terra will be basically buying Bitcoin in perpetuity with a strategy of constant stacking planned for the future. Also Microstrategy’s Michael Saylor did buy the dip this week too.
Waves in Trouble?
Waves “Russia’s Ethereum” had a mega pump recently on speculation that Russia would turn to Waves to evade sanctions, which was followed by claims of price manipulation directed at Alameda. But the reason I want to talk about Waves today is that within 2 months the Waves ecosystem could see about 400 million in liquidations for the backing of its USDN stablecoin. The immediate effect of this news hitting the market was a fall in price of the stablecoin from one dollar to 74 cents, even as low as 60 cents on some exchanges, and it is at the time of writing still trading well under a dollar at 88 cents. USDN is like UST in that it is collateralized by the WAVES coin like UST is collateralized by LUNA. Claims of the whole WAVES USDN thing being a ponzi also started to rattle investors who ran for the exit door which caused the peg of USDN to fall fast. The crux of these claims are that borrowed money is being used to pump the price of WAVES which is then turned into USDN and then more money is borrowed to buy more WAVES and repeat. Basically way too much leverage in a system that will be unable to absorb a major price decline of the WAVES coin. While a collapse of USDN would not break defi, it would wreck a lot of people and of course it does serve as a stark reminder that this is all still an experiment on so many levels. Be careful out there.
Cardano and Solana futures story
The CME group is considering launching futures contracts for popular altcoins like Solana and Cardano. Up until now the CME has only offered Bitcoin and Ethereum trading. Their entry into a more diverse range of altcoins truly underlines the big demand for the big money investor crowd to get exposure to these assets. That being said, the CME contracts are utter garbage. Just paper tools of manipulation from Wall Street. But it does show they are paying attention. What US and global investors really need are a wider array of spot ETF products. Canada for example already has spot BTC and ETH ETFs. This is the future of institutional crypto investment. The demand for real exposure to underlying assets remains very high.
19 millionth Bitcoin Mined
Woohoo! Nice milestone. But much more than that, it underlines the scarcity of the asset. By 2032 most of this last 2 million will have been mined. Yet right now, we are seeing over 96,000 Bitcoin being removed from exchanges. At that rate there will be zero Bitcoin left on centralized exchanges either in late 2023 or early 2024 based just on current supply sitting on exchanges. If we assume that every single Bitcoin that miners mined gets sent to exchanges and sold then maybe we push this back to 2025. Look, obviously the exchanges are not going to run out of Bitcoin, there will always be sellers. I simply share these figures to underline the very real scarcity potential for BTC. As supply available to buy continues to fall the sellers will be likely to continue demanding higher and higher prices. This is the rising tide that will lift all crypto boats.
Inflation is going crazy basically everywhere. Meaning that investors are under more pressure than ever to perform. The USA is clocking inflation at 7.9% and the EU at 7.5%. To just break even you need to make these numbers as an annual return, to make a real profit you need to beat those numbers. Remember at those rates you lose half your purchasing power every 9 years. Real rates are likely much higher. Inflation on certain items like fuel and food will hit hard. Stablecoin farms can beat this number, albeit not by a lot. The S&P 500 has for the last 20 years usually come in over 10%. Bitcoin year on year has put in a very strong performance. All but 2 of the last 10 years saw a positive return, often a big one. Altcoins while riskier can dramatically outperform Bitcoin. Long story short if you don’t want to be a passive victim of inflation you need to be invested. Just something to remember.
Undervalued NFTs by Sam
NFT markets have been ambiguous recently. The ApeCoin airdrop had an impact, and $APE being listed on major exchanges meant new money could enter the NFT space, with blue chip collections receiving a pump. The Azuki Something Official airdrop has had an effect too.
Expectations are that this action should trickle down to smaller and newer projects, but there’s a sense of hesitancy. Coupled with the fact that ETH is well over $3K and could go higher, it might be that people are less inclined to let go of their ETH.
And at the same time, there’s a constant stream of new projects, leading to saturation. Some people say there’s too much trash launching, but the opposite is also true: a lot of launches look good quality but not obviously distinctive, which also might lead people to sit things out for a while.
A result of all this is that there are plenty of interesting collections that minted out, but are sitting on secondary at low prices. It’s a fair bet that some of these projects can pick up and run in the future, and now might be a good time to speculatively collect what could turn out to be bargains.
This collection is below 0.1 ETH, has cute, attractive artwork (if you’re into that kind of thing), the Q2 roadmap includes Worldwide Webb game integration, and it feels collectible. The community seems strong, and there are waves of hype and floor sweeping.
Also in its favor is that one of the founders is doxxed, and it’s supported and admired by some influential creators. On April 15th it’s scheduled to release Cosmokush, a CBD brand (but with shipping limited depending on legality).
This one picked up a lot of momentum last month, climbing to a floor price above 1 ETH, and since then ranging around in the 0.3 to 0.7 zone, with some rarities going for a lot more than that.
Setting this one apart is the community–which is incredibly dedicated and creates real momentum through the ups and downs–along with early interest from celebrities and influential people in the NFT space.
And most importantly, there’s the design. The retro toons style has a lot of degens hooked, and the whole drop has the feel of a classic PFP project, keeping things simple and to the point.
Despite having clean design, a big event called Weather Fest, and an all round professional approach, this one hasn’t yet gained the traction that might have been expected, but sometimes these things take time. It’s certainly worth checking in on, as the quality is not reflected in the current low prices.
Back in February, Weather Report founding artist, Dentin, left the project acrimoniously, and created Dented Feels. This project has a very similar visual style to Weather Report (for obvious reasons), and picked up a lot of support.
The histories of the two projects are interlinked, so if you’re interested in Weather Report then it makes sense to keep tabs on this one too.
These have been climbing in price, and what you get with this one is a ton of utility and future potential. The phase module NFTs give you entry to the Haus ecosystem and its projects.
This project is interesting for its distinctive art, and the fact that it’s the work of Dirty Robot, an illustrator and comic artist who has a big Instagram following.
The floor price is below 0.1 ETH, and there are indications that holding these will bring future rewards, with plans for apparel production. This project isn’t going out of its way to generate hype in the style of, say, Loveless City (another recent art project), but if you like the style it could be worth picking up.
Cardano NFTs pumping
There was big news in the Cardano NFT world, with Clay Nation announcing that it was partnering with Snoop Dogg, one of the biggest names in not just music but, more recently, NFT collecting.
The news caused an immediate pump in the price of Clay Nation NFTs, and DEADPXLZ (along with offshoot metaPXLZ) and Chilled Kongs followed too. However, keep in mind that Cardano NFT volume is still only about 3% of Ethereum NFT volume, so there’s a huge amount of potential for further growth.
For reference, the Clay Nation floor is currently around 3000 ADA, which is still only a little over 1 ETH, and even the most valuable collection, SpaceBudz, has a floor around 6100 ADA, or just over 2 ETH. Basically, prices are way off what we’re seeing on Ethereum, but if more volume comes in then that could change.
A Cardano project that’s very highly regarded but which hasn’t yet seen the kind of pump that other collections have received, is Yummi Universe.
This is surprising since Yummi last week released its litepaper, which details play-to-earn gaming, NFT staking, and the launch of the $YUMMI token.
This one definitely has a lot of potential, not least because of its status within the Cardano NFT space, its capacity to become a solid brand, and the community and goodwill it’s built up.
Thank you so much for your support, and I truly hope that today’s issue will give you insights needed to help you master your wealth.
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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.