In This Issue
- I share my thoughts on the state of the market, is it time to ape into altcoins, Grayscale possibly suing the SEC, Ronin being hacked & exercise coins
- Sam has a report for you on Metaverse 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 9% APY with ETHMAXY, a 3x stETH leveraged yield position
- 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 Ape Coin
And much more!
What’s On My Mind by Lark<h3 id="the-state-of-the-market“>The State of the Market
Technical reversals are being locked in across the board with various indicators showing that the markets could be setting up for a major run. I really love seeing the markets being more bullish, although I do lament not buying more Bitcoin at cheaper prices… like I always do. Still though the green market days bring a lot of needed enthusiasm into the markets.
I want to be clear. Risks remain in the macro markets. The Russia Ukraine conflict is far from finished. Rate hikes could still have a negative impact on the markets. Recession fears are real and persistent. Can crypto outperform and rally hard in such market conditions? Of course. Will it? Let’s see.<h3 id="time-to-ape-into-altcoins? “>Time To Ape Into Altcoins?
The question here is will the market maintain momentum after Terra is done buying up Bitcoin? If it does then altcoins are going to rocket hard. Personally, I have primarily been buying Bitcoin during the accumulation period. But now that the markets are hinting at a reversal I am looking at altcoins once again. I am eyeing up a few potential new positions to enter like ROSE, but will mainly focus on doubling down on existing positions like GLMR. As is always the case altcoins will outperform when the market starts really moving.<h3 id="grayscale-to-sue-the-sec “>Grayscale To Sue The SEC
Grayscale, the biggest holder of Bitcoin and the operator of the Grayscale Bitcoin Trust, has announced that they are considering suing the SEC if they deny their spot Bitcoin ETF application. I actually support this. For way too long in the USA the SEC has been acting like a school yard bully intimidating companies, and rejecting everything it doesn’t like with almost no rational reasoning. At this point not giving the market a spot BTC ETF is ludicrous especially considering Canada and Brazil already have them, and many European markets have very similar products. Perhaps someone finally holding the SEC accountable for their games will move us in the right direction.<h3 id="i-can’t-actually-believe-this,-but-it’s-true“>I Can’t Actually Believe This, But It’s True
Axie Infinity’s sidechain Ronin was hacked for 173,600 Ethereum and 25.5 million USDC. Apparently no one even noticed the hack for like 6 days. WTF? Pretty bad look to be honest. This is one of the biggest crypto hacks of all time, and the biggest in DeFi history. And yet another stark reminder that we are pioneers. When crypto hacks happen they are often pretty damn dramatic, as we see here. The fact that Axie’s AXS token did not completely tank after the hack news broke is in of itself a good sign of how strong the market is right now. The question now is how will Axie get out of this mess? That is a lot of lost Ethereum, and Axie’s annual revenue is only like 30 million right now. But the story doesn’t end there. Apparently the hacker also tried to short AXS anticipating that the token price would drop when the news broke, but since no one noticed for 6 days, the markets pumped and he got liquidated on his shorts. He also apparently sent a bunch of ETH to FTX which will of course be seized, although he remains in control of almost 176,000 ETH at the time of writing as you can see on his address HERE. A comedy of errors by all parties.<h3 id="exercise-coins“>Exercise Coins
The move to earn frenzy is sweeping the crypto space lead by STEPN, which has done like a 200X since the token sale a few weeks ago. I sold early… FML. Genopets another move to earn has also soared in price. Anyway, this is the newest iteration of participate to earn crypto apps. Much like play to earn gaming, move to earn apps reward people for participation. There are now loads of people walking all over the place trying to earn money via the apps. Cool. Buyer beware though if you are trying to chase the hype on something like STEPN, the time to buy is not often after a 200X, the time to buy was when I talked about it on Youtube and here in the newsletter.
Metaverse NFTs by Sam
Back last year, when Facebook rebranded as Meta, there was a flurry of hype around the idea of the metaverse. Since then, it’s become commonplace for NFT projects to throw the word ‘metaverse’ somewhere into their roadmaps, with little regard for how difficult and expensive metaverse building would be.
That in mind, let’s take a look at where we are in the march towards some kind of metaverse (or metaverses), and which projects have solid prospects from here.<h3 id="yuga-labs“>Yuga Labs
When everyone was discussing Meta, Bored Ape Yacht Club didn’t feature in the conversation, but things have changed dramatically and it’s no exaggeration to suggest that BAYC and Yuga Labs (the company behind BAYC) are now contenders to dominate metaverse development.
Just to briefly run through what Yuga Labs has recently done: acquired CryptoPunks and Meebits from Larva Labs, launched and airdropped ApeCoin, and raised $450m of funding from investors including Andreesen Horowitz, Animoca Brands, and Adidas, with Yuga being valued at $4 billion.
There’s been a teaser trailer for a metaverse/MMORPG called Otherside (and it blows away Zuck’s much-derided Meta video), and there was a leaked pitch deck.
The leaked material is out of date and should be taken skeptically, but still, it’s worth looking through. Three things that stand out are how profitable Yuga Labs has been over the past year (a 92% profit margin in 2021, pulling in $127m net profit), how they identify that an attractive metaverse needs a gaming element to make it fun, and how ApeCoin is likely to become the currency of their ecosystem.
It’s difficult to look at what Yuga is doing, the resources, backing and status they already have, and the celebrity endorsements, and not conclude that big things could be happening. There may not be many NFT collectors who will pay over 100 ETH for a Bored Ape, but ApeCoin provides a way to get exposure to what Yuga is building, and it’s looking like there will be virtual land for sale at some point in the near future.<h3 id="worldwide-webb“>Worldwide Webb
A valid criticism of metaverse projects is that they just don’t look very appealing, with visuals that compare poorly when placed next to modern games, and a feeling that–unlike games–they’re empty platforms with nothing much to do.
By contrast, Worldwide Webb has deliberately taken a retro, pixel-based style that will appeal to anyone nostalgic for nineties gaming. Also, it’s pitched as a metaversal game with quests, rather than just a metaverse world, giving it a sense of purpose (unlike the aimlessness of just walking around in a virtual environment).
You can play around with it without hooking up your wallet, or you can connect MetaMask and dive in–there are several NFT collections that are already integrated for use as avatars and pets, and you can pick up real estate and items on OpenSea. Other specialized assets are CryptoWeebs and CryptoGFs.
As with Yuga’s plans, what makes this project stand out are that it has character and a gaming element.<h3 id="nft-worlds“>NFT Worlds
Also linking up gaming and metaverse concepts, is the Polygon-based NFT Worlds. This is unique in that it’s built on Minecraft servers, so you’re getting a web3, blockchain-utilizing experience integrated with the already hugely successful Minecraft environment.
The idea is that within your purchased world you are free to develop whatever you want, and so it can function as a platform on which other projects can build their own communities, environments and games.
The advantage that NFT Worlds has is that it’s bootstrapped onto Minecraft, which is very solidly established, strongly supported, and familiar to developers and users. The negative issue with this is that NFT Worlds is reliant on a centralized, third-party foundation, and there’s no guarantee that Microsoft (which owns Minecraft) will always continue to be supportive.
A Lot of Competition.
These three projects all stand out and have their own unique selling points, but there’s a lot of competition.
An important note about the Embers project, that I mentioned last week as an interesting upcoming drop. There was news late last week that two men were charged with fraud and money laundering in relation to an NFT project called Frosties, and it appears that the same two men are connected with the Embers NFT project.
Fortunately, the drama all unfolded before the Embers mint could go ahead, although the Embers website is still up, and its Discord server has been active with people discussing the attempted scam.
Something to take away from this is that minting NFTs carries inherent risks. If it’s not a project that has already minted something before and established itself in the space, then a safer alternative is to do all your buying on secondary markets, where you know exactly what you’re getting.
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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See you next time!
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.