In This Issue

• I share my thoughts on the state of the market, the FED pivot, QE infinity, Binance Smart Chain paused, Mango Markets, Avalanche on Opensea and Ethereum is deflationary.
• Rebecca breaks down the latest news.
• REKT has a TA report on the Bitcoin Halving.

Premium Subscription highlights this week:

• What is the blockchain trilemma? How do scalability, decentralization and security all work together? Will any blockchain figure out how to optimize all three?
• Jesse’s coin review: Does Zcash have a future? Find out if Zcash is a good investment for you.
• Airdrops & Opportunities: Jesse has a list of new airdrops as well as incentivized testnets so you can get your hands on some free tokens.

What’s On My Mind by Lark

The State of the Market 

Limbo… Bitcoin, after being rejected again at the 50 day EMA on October 6th has come down hard.

But, this move has really only seen Bitcoin maintain within its range. Except for a few days Bitcoin has been trading between $18,500 and $20,500 since the end of August! The crab market is well and truly here! 

*** Do note that periods of extended calm tend to precede periods of often extreme volatility. And in a bear market, that volatility is not expected to the upside… 

The amount of Bitcoin on exchanges just keeps dropping. We recently got back to the same level that we saw in November 2018!

This is a wild bear market due to this.

While prices are indeed in the gutter, interest from buyers remains steady. 

While markets have pretty much been a raging dumpster fire this year we continue to get crazy stats like the one above. Here are a few more from this week.

1. Ethereum added 135,000 new addresses on the 10th. 
2. Polygon hit a new high of weekly active users at 1.4 million. IN A BEAR MARKET!!!! 
3. 12,000 Brazilian companies have declared holding crypto on the balance sheets. 
4. Google announced an integration with Coinbase for institutional crypto services. 
5. Millions still being raised across the crypto space, with very active VC involvement. 

And that is just a small sample to make my point. I for one will stay dialed into the markets and continue to look for opportunities, because they are 100% out there, and this bear market is very unlike the 2018 bear market. The number of builders, investors and active users still here is INSANE!!! 

That being said… 

CPI data is scheduled to be released tomorrow. For most of this year it has been a market moving event, I expect this time to be no different. 

For what it is worth many big analysts are still calling for more downside in stocks. IF, this proves to be true, then crypto will not be spared.

I know that everyone wants to rush to call the bottom, but bottoms form up over time and you DO NOT need to perfectly time it. 

The Coveted Pivot 

More and more we are hearing talk of a potential FED pivot. This will most likely be the turning point for the market when it does.

Until that time, the FED will continue to be like a wrecking ball crushing everything in its sight! But, at some point the pain in markets could become too extreme and already real risks of mass contagion events like UK pension funds being on the brink or systemically important banks being on the verge of collapse are threatening a change in policy.

Nobody knows when, but it will come. 

QE Infinity 

The Bank of England has announced that it will double its “temporary” bond buying program up to 10 billion pounds a day. They just can’t stop.

They are addicted to easy money, and the can must be kicked down the road.

The cost of not intervening in markets is just too damn high with rumors swirling that UK pension funds almost went under a couple weeks ago before the BOE intervened.

THAT BEING SAID, the BOE also announced that it would stop its temporary operations by the end of the week. Let’s see if they blink! 

And, no, it is not just the UK.

Many countries are facing hard times in their bond markets. The USA, for example, has a big brewing bond problem, as it seems that the FED, foreign governments like Japan and China and commercial banks are all stepping back from buying up bonds.

That puts more pressure on the FED to intervene in markets.

The collapse in bonds markets means that many pension funds are being put at risk or at the very least have seen huge values wiped off the books. 

Binance Smart Chain Paused

This week Binance Smart Chain was paused for a few hours late last week as a major exploit was uncovered during an ongoing hack.

While about 500 million was exploited on BSC, the hacker only managed to bridge out like 100 million.

Exploits like this are pretty common in crypto. What is worrying though is the ease with which Binance is able to just switch the chain off.

Did this prevent the further theft of funds? Yes. Is it a worrying level of centralization? Also, Yes. 

Mango Markets 

In other hack related news, Solana’s Mango Markets were hacked for over 100 million USD this week!

Ouch! Another day, another hack!

Defi is a big deal, and it is set to be a major innovating force in finance. However, at this time, it remains risky.

In the last 24 months literally dozens of platforms have been hacked and billions in user funds have been lost. Just remember this before using any defi products. You are a pioneer, and that comes with risks! 

Not Everyone Will Survive

One of the hallmarks of a crypto bear market is that many projects will simply wither up and die.

Many already have of course.

Some crypto projects shut down in the first 12 months and did not even survive the bull market. Many others though did make big raises during the bull market when things were hot and everything was pumping. These companies will now be tested big time.

Last bear market many companies simply ran out of money. Lots of good ideas were run by financially irresponsible teams.

This bear market will see a repeat of that. So when and where possible when looking at altcoins during this bear market keep in mind whether they will be able to survive or not!

If possible ask teams on socials how much funding they have set aside. Look at liquidity for the token. Pay attention to social media engagement.

The bear market is when many teams throw in the towels and walk away. You don’t want to be caught holding the bag when that happens. 

Avalanche Gets On Opensea

While many, many other NFT market places have popped up over time, Opensea remains the dominant player. And recently we have seen many new integrations with Avalanche being the most recent to announce their integration with Opensea.

I have invested in many NFT marketplace tokens over the last couple of years but none ever even came close to capturing significant market share from Opensea, and the continued integrations make catching up even harder. 

Avalanche is a coin I’ve had in my portfolio for a while now. If you’d like full access to my portfolio so you can see what I’m buying and selling, click here to go Premium!

Ethereum Deflationary

The last week has seen Ethereum enter into deflation again.

The effect was very mild though at only -0.09%, still though, that is setting Ethereum on course for an annual decline in supply.

This is happening while markets are generally rubbish and many users have disappeared. All of which bodes well for the long term picture for Ethereum. 

In Case You Missed It by Rebecca

Crypto market news

BNY Mellon, the oldest bank in the US, has added cryptocurrencies to its custody services. Source

NFT-related trademark applications in the US have tripled since 2021. Source

Mt. Gox has released its timeline for Bitcoin repayment and now has plans to release 137,000 BTC on January 10, 2023. Source

Guido Cannetti, an Argentinian UFC fighter, is to be paid his entire salary in Bitcoin. Source

Google partners with Coinbase to bring Bitcoin and Ethereum payments to its cloud customers and will use Coinbase Prime to store the crypto. Source

Coinbase is to expand its operations into Australia with services for retail investors and will expand into institutional products in the coming months. Source

Coinbase CEO, Brian Armstrong, announced a Coinbase documentary, Coin: A Founder’s Story, will be available from 7 Oct on streaming platforms. Source

FTX partners with Visa to roll out crypto debit cards in 40 countries worldwide. Source

Huobi Global is to be acquired by Hong Kong-based investment company About Capital Management. Source

Tron founder, Justin Sun, has confirmed he’s taken an advisory role at Huobi but denies being the buyer behind the acquisition of the exchange. Source

FTX is expected to make some upgrades to make improvements to its matching engine. Source

Formula One has filed 8 trademarks for “F1” covering crypto, NFTs, and Metaverse. Source

Coins and Projects

Bitcoin mining difficulty hit a new all-time high after its latest adjustment, spiking by 13%. Source

Lido Finance has launched Layer-2 Ethereum staking on Arbitrum and Optimism. Source

Ethereum balances are now showing on Google, with the data being generated by Etherscan. Source

BNB Smart Chain resumes its operations after a $566M bridge exploit that saw the hacker get away with $110M. Source

BNB Chain has launched its latest dApp Incubator program in the EU to boost Web3 start-ups. Source

BNB Smart Chain is set to perform a hard fork on 12 October to fix the most recent exploit. Source

Polygon has launched its zkEVM public testnet to enable a smoother Ethereum migration. Source

Matter Labs will launch an Ethereum Layer 3 testnet in Q1 2023 called Pathfinder. Source

Near Protocol has announced a new partnership with Google Cloud, to provide infrastructure for its Web3 start-up platform, Pagoda. Source

MakerDAO has initiated $500M in US treasuries and corporate bonds using its reserves. Source

1inch has partnered with Unstoppable Domains allowing users to simplify wallet addresses. Source

Nexo will integrate Zash into its platform to help develop new valuation and pricing tools for NFTs. Source

Terra’s USTC has soared 30% after a proposal by Terra Classic developer to re-peg the token. Source

Star Atlas has released its first pre-alpha gameplay demo on the Epic Games Store. Source

Moonbirds DAO is set to launch in early 2023 with $2.6M in Ethereum. Source

OpenSea now allows users to bulk list and purchase up to 30 NFTs in one single flow. Source

Scale3 Labs, founded by two ex-Coinbase engineers, has raised $5.3M in a seed funding round. Source

MobileCoin has collaborated with stablecoin platform, Reserve, to launch a new stablecoin called “Electronic Dollars” (eUSD). Source

OpenSea launches support for Avalanche and becomes the seventh blockchain to integrate with the application. Source

Macro news

US Department of Justice (DoJ) seizes $22M in Bitcoin from a user taking part in ransomware attacks. Source

SWIFT has presented a framework for a global CBDC system which claims to solve the challenge of interoperability between different networks. Source

The US Securities and Exchange Commission (SEC) has rejected Wisdom Tree’s application for a Spot Bitcoin ETF. Source

Japan’s Prime Minister revealed that the country plans to invest in NFTs and the Metaverse as part of its digital transformation. Source

The EU doubles down on its previous Russia crypto sanctions, resulting in a complete ban between Russian crypto wallets and EU service providers. Source

India outlines its CBDC plans, explaining a move to a digital rupee would reduce the operational costs involved in managing physical cash. Source

Portugal proposes a 28% capital gains tax on crypto held for less than a year, which would come into effect next year. Source

PayPal was set to implement a policy that would see $2,500 taken out of users’ accounts for spreading “misinformation” but has backtracked calling it an “error.” Source

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Market Analysis by Rekt Capital – The Bitcoin Halving

Here are 7 core principles we need to account for when thinking of Bitcoin’s price in the context of the Bitcoin Halving.

Firstly — diminishing returns.

Principle 1: Returns prior to and after the Halving seem to be diminishing with each Halving.

• Pre-Halving 1: Returns amounted to +636%.
• Pre-Halving 2: Returns amounted to +414%.
• Pre-Halving 3: Returns amounted to +344%.

And of course post-halving returns:

• Post-Halving 1: Returns amounted to +8950%.
• Post-Halving 2: Returns amounted to +4000%.
• Post-Halving 3: Returns amounted to +623%.

And as a result, the conclusion appears itself that secondly — Bitcoin tends to rally most after the Halving.

Principle 2: Bitcoin rallies more after the Halving than before.

But also the exponentiality of the uptrend is different post-Halving compared to pre-Halving.

The amount of ROI that BTC generates pre-Halving is lesser than post-Halving but at the same time it takes roughly the same time for BTC to generate that pre-Halving ROI vs the amount of time it takes for BTC to generate post-Halving return.

This makes sense — the Bull Market gets progressively more euphoric as it goes on and so the exponentiality of the uptrend post-Halving sees price grow more but what’s interesting is this takes a similar amount of time.

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Final Notes

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.

If you are reading this it means you are on the free version of the Wealth Mastery Investor Report, which is great for news and tips on the crypto markets.

If you really want to take advantage of fastest growing asset class EVER, I highly recommend you join us in the Premium Investor Report.

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See you next time!

Lark and the Wealth Mastery Team

Legal Disclaimer

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.