Wealth Mastery Premium Investor Report 172

In This Issue

• I share my thoughts on the state of the market, Genesis owes 900 million to customers, Arbitrum domination, Twitter crypto payments, market downturn & Litecoin.
• Rekt Capital has the latest technical analysis for you on the market. 
• Erik has a report for you on the upcoming Ethereum Shanghai upgrade.
• Defi Dad has a tutorial for you on how to earn 4.75% staking LINK with Chainlink Economics 2.0.
• Jesse has a ton of hot new airdrops for you. 
• Hot new token sales. 
• Rebecca has all of the latest news for you.

For any crypto related questions please comment on the website. 

For any support related issues please visit wealthmastery.io and click the bouncing blue circle in the bottom right corner.

👉 DOWNLOAD THIS ISSUE AS A PDF HERE 👈

What’s On My Mind by Lark

The State of the Market

It is tempting to feel like the bull run is back on every time we get a few green candles, but I would like to remind you that markets often see some of their biggest rallies during a bear market. That does not change the underlying structure of the market, and can catch a lot of people off guard. Bear market rallies can be a lot of fun, but until proven otherwise they are just that. 

Remember, right now Bitcoin is trading under every relevant moving average and is thousands of dollars away from the downtrend line. 

Broader markets continue to face turmoil. For example, US housing declined at the fastest rate over the last 3 months in 30 years. Yikes! 

Also worth keeping in mind that the S&P 500 has run into the prevailing downtrend line which has been our persistent foe throughout all of 2022. Failing to move beyond here will slow the rally. 

Worth keeping in mind that it has rallied 17% since the last CPI data release. Had it not been for FTX Bitcoin would probably be like 25-30K right now. Next CPI data date is on the 13th. FED meeting on the 14th. The market will be waiting for those events before deciding our next move. 

All that being said we just lost the uptrend and tagged a bear cross on the MACD. Not awesome. Let’s see if the news can turn things around next week. While I wish Bitcoin was not so correlated, the fact is that right now, where go equities so goes Bitcoin. 

Genesis Owes 900 Million To Gemini Customers 

Genesis, the biggest Bitcoin OTC desk and major lender, has been on the brink of chaos for weeks now. The parent company Digital Currency Group has been trying to save it. Now news has come out that Gemini customers who used the Gemini earn program are owed 900 million dollars. OUCH! The risks of Genesis hitting bankruptcy are still very real. If this happens then we could have another very painful collapse on our hands. Praying for those with their coins stuck in Gemini. Again, reminder, if you have your coins an ANY lending platform you are playing with fire right now. 

Oh, and Nexo just announced it is leaving US markets. A similar pattern that we have seen with other lenders before they collapsed. Are they trying to hide something? Maybe not, again, maybe Nexo is totally fine. But… what if it isn’t? Is that a risk you are really willing to take? 

Arbitrum Domination! 

Arbitrum has quickly become the go to layer two for many companies in crypto. Trader Joe just announced that they are going to be expanding beyond the Avalanche ecosystem and will be integrating with Arbitrum. They join a long list of projects integrating a multichain and particularly ETH layer two strategy. If you have not yet tried out Arbitrum then what are you waiting for? Check out the beginner guide for how to get started using Arbitrum.

Twitter Crypto Payments 

Elon Musk has confirmed that Twitter will be enabling crypto payments. Remember that he is a co-founder of Paypal. The man knows payments. Someone also combed through the Twitter code and found clues that a Twitter Coin and tipping feature have already been coded in. It remains to be seen if Bitcoin, Ethereum, and Doegecoin will be featured or not. Regardless it is a big deal for one of the biggest social media platforms to be getting even more into crypto. 

Market Downturn Pain

Major players continue to face pain from the broader market downturn. Bybit announced a 30% reduction in staff this week. Which makes sense, fewer traders trading means less support staff needed. Circle also announced that they are canceling their SPAC. It has long been rumored that Circle was doing a SPAC, and many had thought it was close to happening. But now it seems they will be waiting for better market conditions. Makes sense. We will see more of this. The smart players are running lean right now, cutting the fat is the way to survive the bear market. 

Litecoin

I am not a big fan of Litecoin, I used to be, but I am not really anymore. I just don’t see the point considering the explosion of low fee layers twos and alternatives like Polygon and Solana. That being said, Litecoin is still a top coin and the market does like it. At least they like speculating on it. The narrative seems to be now that the Litecoin halving is coming in about 8 months. Because, that is the only possible narrative for Litecoin now. That being said, Litecoin has out performed majors like Bitcoin and ETH recently. Seems traders are hoping for a repeat of 2019 when LTC rallied 500% in the lead up to its halving. Although the entire market rallied at that time, so it is hard to say if the tail is just wagging the dog here when it comes to this narrative. I am not chasing the Litecoin hype now. 

By the way you can check out our Litecoin guide HERE. 

Position Updates

I added some more Bitcoin. Nothing crazy.

Market Analysis by Rekt Capital

In today’s newsletter, I will cover Bitcoin as well as a few Altcoins, specifically:

• OMG Network (OMG)
• Litecoin (LTC)
• Basic Attention Token (BAT)
• Chainlink (LINK)
• Band Protocol (BAND)
• Chiliz (CHZ)

Let’s dive in.

Bitcoin — BTC/USD

Just a quick update on BTC — not much has changed since Monday, price continues to hover below the Monthly level of ~$17150.

Because BTC Monthly Closed above this level in November, this level still technically acts as support.

However, this month we are seeing that this level is acting as resistance for the time being, though this could still easily change.

As long as price remains below this level, then price could set itself up for a rejection further down into what is essentially the $13900-$17150 range.

Ultimately, BTC is negotiating right now which range it wants to occupy for the coming weeks: either ~$17150-$19880 (blue-green) or the $13900-$17150 range.

OMG Network — OMG/USDT

Here is my analysis from late November for additional context:

Here is today’s update:

Indeed, OMG Monthly Closed below the green level, despite a decent reaction from the orange demand area.

In fact, it’s early in the month of December but OMG has already flipped the green level into new resistance, following through on the black pathway and revisiting the orange demand area.

Despite the relatively decent reaction last month from the orange area, the fact that OMG is already back at the orange area once again, so soon after the reaction, means that the orange area is actually probably running out of buy-side interest.

As a result, it is possible this area is weakening and may give way to a breakdown in the future.

Breakdown from the orange area and OMG will officially enter the final portion of the green area which is where OMG performed a Bear Market bottom in the previous cycle.

Litecoin — LTC/USD

LTC enjoyed a Monthly Close above the green area this past November which now means that the top of the green box which figured as resistance may need to soon act as a support, especially if LTC experiences a dip soon.

So a dip into the top of the green box (~$67) could take place as a technical retest attempt in an effort to fully confirm the breakout into a new macro uptrend.

Of course, the retest attempt could become a volatile one where downside wicking takes place into the black trendline at around the ~$60 area.

Such a turn of technical events would not only successfully retest the top of the green box as a support but also the multi-year black trendline as support as well; such a retest would be a positive sign of growing buy-side momentum on the dip.

Basic Attention Token — BAT/USD

To give more context on BAT today, here is my late September analysis on BAT:

Here is today’s update:

Indeed, BAT has rejected lower, last month flipping the blue level into new resistance.

Not only that, but BAT rejected to the downside at a lower price level compared to previous red circled price levels, which only highlights how the sell-side pressure is weighing heavily on price: sellers are willing to sell at lower levels, whenever there is a chance at relief.

BAT may soon revisit the green multi-year trendline, which has acted as a good reference point for Bear Market bottoms.

Specifically, downside deviations below the green Higher Low have preceded Bear Market bottoms.

And so a downside deviation below the green HL could occur in this cycle as well; the green HL denotes the -90% mark for this Bear Market correction and so, given how many Altcoins bottom at the -95% to -99% mark, then downside deviation below the green HL looks to be likely for BAT.

But once that deviation occurs, history suggests it would signify that price is entering an area that has offered outsized ROI for long-term investors.

Chainlink — LINK/USD

LINK continues to consolidate inside this green-black channel ($6.27-$7.78).

This past November price Monthly Closed below the black resistance and price has since rejected and looks poised to revisit the green Range Low as part of its intra-range price behavior.

Downside wicking below the Range Low could occur but as long as price holds the green level as support, another rebound to the black level would technically be on the cards.

Band Protocol — BAND/USD

Here is my BAND analysis from late August:

Here is an update today:

The Bullish Divergences played out for BAND as price exploded into an +180% uptrend, rallying straight into the red resistance area, which is a confluent resistance with the black Lower Low trendline.

Though price strongly rejected at that confluent resistance area, price has dipped only insofar to the blue level, which acted as resistance over the Summer, but may act as support following the Monthly Close above the blue level.

As a result, a retest attempt via the black pathway may take place in an effort to turn this old Summer resistance into one of Winter support.

BAND could dip into the blue level and perform either a more or less volatile retest as the two black pathways indicate, but generally price-stability at the blue level upon tagging it as support would be a bullish sign for trend continuation in the future.

Chiliz — CHZ/USDT

Here is my analysis on CHZ:

Indeed, the upside beyond the red macro downtrend was limited and price has since not only rejected from that area, but also Monthly Closed below the orange support.

Given that this Monthly Close occurred below the orange level, this level has been lost as a support and may therefore turn into a resistance soon, especially if price rallies towards the upside in the coming weeks, only to reject at the orange level.

Interestingly, this orange level is looking to become a confluent resistance with the red Macro Downtrend itself, which may pose significant sell-side pressure on CHZ.

Generally though, this Monthly Close below the orange level means that CHZ has broken back down into the green-orange range and upon rejection at the orange level (double confirmation of breakdown), CHZ will look to find support somewhere within said range, with the lower regions of the range being certainly on the cards.

Thank you for reading.

PS: If you enjoyed today’s edition, you’ll really like the Rekt Capital newsletter. Cutting-edge insights on the Crypto markets, straight to your inbox three times a week.

The Upcoming Ethereum Shanghai Upgrade by Erik

The Ethereum Shanghai upgrade, scheduled for the second half of 2023, will be the first update since the Merge of September 2022. Shanghai is less spectacular and less high-risk, but important. The upgrade has 3 main changes:

1. People who currently stake their ETH will finally be able to withdraw.
2. The transaction fees that builders pay will be lower.
3. Layer 2 will get some scalability improvements.

In Ethereum’s roadmap, Shanghai would be part of phase 2, the Surge – even though these phases are not precisely sequential. The list of proposals for the Shanghai upgrade are currently (December 2022) slated for a review.

So we don’t know the exact list yet. But it’s likely that what will come out will make the following three upgrades possible.

TO READ THE REST OF THIS ARTICLE, CLICK HERE – “The Upcoming Ethereum Shanghai Upgrade: 3 Big Improvements”

How to Earn 4.75% Staking LINK with Chainlink Economics 2.0 by Defi Dad

With a fully diluted market cap just over $6.6B, Chainlink (LINK) remains one of the most well known cryptooasset-based protocols for “providing a secure, reliable, and decentralized source of off-chain data to power unique smart contract use cases for DeFi and beyond.” Long before DeFi was even a word, Chainlink’s Founder Sergey Nazarov identified a pressing need for building decentralized data feeds, most commonly recognizable today as Chainlink oracles.

When you trade on GMX, lend/borrow on Aave, or check a price on CoinGecko, chances are that you’re benefiting from the Chainlink protocol.

TO READ THE REST OF THIS ARTICLE, CLICK HERE AND LOG IN TO WEALTH MASTERY – “Earn 4.75% Staking LINK with Chainlink Economics 2.0”

Token Sales by Lark

Bybit will be launching Medieval Empires on their launchpad. Bybit launchpads generally do okay, but be aware of the prevailing market conditions and the lack of demand for gamefi now. The launch date has not been announced yet. It will also be launching on POOLZ on the 14th. 

Airdrops by Jesse

New Airdrops & Opportunities

Binance Exchange is showing up just in time for the holidays with a brand new Learn and Earn Event. Users can gain knowledge on blockchain and earn free crypto by completing courses and quizzes anytime between now and December 7th. Eligible users will stand a chance to receive a predetermined amount of BNB, BUSD, ALGO, POLYX, or tokens from other projects, depending on the course or quiz they complete. Do note that each course can only be completed once, and every user qualifies for a maximum of one reward per completed course. The POLYX reward is only available to users who have never subscribed to Simple Earn Locked Products before December 7th. POLYX rewards will be automatically locked in Simple Earn for 150 days, where users will receive 100% APR during the lockup period.

Rainbow XRB provides a powerful crypto wallet service that enables worldwide secure transactions between users, investors & merchants that will be reliable and trustworthy. Rainbow XRB’s vision is to create an authentic and transparent cryptocurrency wallet platform for users and investors using Blockchain Technology. Rainbow has issued its first-ever Zorbs NFT Airdrop. All you have to do is pay the gas fee to mint one. Each address is only allowed 1 free NFT. Once the minting period closes, you’ll only be able to purchase them on the secondary market. The current floor price on Zora Marketplace is 0.07 ETH ($90).

LEND is a multi-chain lending protocol with absolute yield value extraction from protocol to holder. LEND users can interact with the protocol in a few ways; Deposit crypto assets to earn competitively high interest, similar to a traditional savings account. Or use their crypto assets as collateral to borrow tokens. With LEND, users will be able to know they are safely maximizing the earning potential of their crypto assets and savings. LEND announced its Global Prelaunch Event with over $125,000 in prizes, NFTs, and LEND merch. LEND is the First Lending protocol on BNB Chain that shares the actual revenue generated by the ecosystem back to native token holders. LEND is also offering the last few Whitelist spots to participants of their Free NFT Whitelist Campaign. 

NYXS is trying to connect fans with athletes & support them through a global community. By providing opportunities to young talented athletes, they give them the right to dream & extend fan support worldwide. NYXS is giving away 20,022 USDC to users who complete simple giveaway tasks. Sign up for the Giveaway and complete simple tasks to earn entries. A total of 100 participants will be randomly selected to win $70-$2,022 USDC. 1st prize winner will get $2,022, 2nd prize winner will get $1,500, 3rd prize winner will get $1,000, 4th – 20th prize winners will get $300, 21st – 50th prize winners will get $200 and 51s – 100th prize winners will get $70. 

Wombex is a yield aggregation and veToken accumulation protocol built on top of Wombat AMM. Wombex combines the power of liquidity providers and WOM token holders, supercharging each other and accelerating long-term Wombat growth. For this purpose, Wombex accumulates veWOM and aggregates LPs deposits simultaneously. Wombex Finance is holding its New Year’s Airdrop on CoinMarketCap. Giving away 141,000 WMX tokens to 3,000 lucky participants. Sign up for the drop before December 25th to participate. 

Incentivized Testnets

(In order of potential earnings)

Dusk Network, ZKasino, JediSwap, TiTi, Aleo, Cedro, Deepwaters, Trustless.

Until next time, remember that the only guarantee is BTC. So keep stacking that Satoshi. –Jesse Koz

In Case You Missed It by Rebecca

Crypto market news

Sam Bankman-Fried has been called to appear at an FTX hearing by the Texan securities regulator on 2 February 2023. Source

Ledger has partnered with iPod creator to design the new credit card-sized Ledger Stax launching in Q1 2023, which displays NFTs and transaction details on the exterior. Source

“Twitter coin” could be coming soon to the social media platform after code from its Web app hinted at the plans, which could also include crypto. Source

Coinbase Wallet will stop supporting Bitcoin Cash (BCH), Ethereum Classic (ETC), Steller Lumen (XLM), and XRP from 5 December due to low usage. Source

Jack Dorsey has canceled plans to trademark “Web5” for his Bitcoin-focused subsidiary, TBD, roughly six hours after the initial announcement. Source

Animoca Brands is planning a $2B Metaverse investment fund and is expected to make its first investment next year. Source

Mexico-based crypto exchange, Bitso, is making additional reductions to its headcount in the latest round of cutbacks. Source

Nexo has received registration to legally operate in Italy and plans to use its new EU registration to continue operating once new regulations kick in during 2024. Source

Nexo will no longer accept new US registrations and will gradually wind down its US operation due to a lack of regulatory clarity. Source

Sam Bankman-Fried is confronted over the FTX collapse when he appeared virtually as a speaker at the New York Times’ DealBook Summit. Source

Kraken cuts its workforce by 30%, which is approximately 1,100 people, to survive the crypto winter. Source

BlackRock chief executive, Larry Fink, says the company had invested $24M in FTX. Source

Telegram has announced plans to build a decentralized crypto exchange to help steer the industry away from CeFi. Source

Bitmex has launched a system to allow depositors to self-verify their liabilities in the crypto exchange’s total liability balance sheet. Source

Coinbase Wallet’s latest update was blocked from the Apple app store due to the controversy surrounding Apple’s new 30% commission from NFT transactions. Source

Galaxy Digital is to acquire custodian, GK8, from bankrupt Celsius. Source

Sam Bankman-Fried says FTX US should be solvent and is unsure of why withdrawals have not been enabled. Source

Coca-Cola has partnered with CryptoCom to release a 10,000-piece World Cup NFT collection. Source

Coins and Projects

Bitcoin’s Adjusted Spent Output Profit Ratio (aSOPR) indicator has hit the lowest levels since 2018 – another capitulation signal. Source

Strike has partnered with mobile app, Bitnob, to facilitate Bitcoin Lightning payments in Africa. Source

Over 8% of the Bitcoin supply has been bought between $15.5K and $17K as per the UTXO Realized Price Distribution (URPD) indicator. Source

Ethereum developers begin the shutdown of the Ropsten testnet with completion expected sometime between 15-31 December. Source

MetaMask has been integrated into Russia’s Sber bank’s blockchain platform. Source

Uniswap has launched an NFT marketplace aggregator on its native protocol. Source

Binance has acquired the Japanese crypto exchange, Sakura Exchange BitCoin (SEBC). Source

Binance has frozen $3M in assets from the Ankr exploit that minted six quadrillion aBNBc tokens, which the hacker partially converted into USDC. Source

Solana-based DEX, Orca, has integrated with Stripe to debut a fiat-to-crypto payments project, using a customizable widget that can be embedded into Web3 apps. Source

RNS.id, a Web3 identity platform, has integrated with zkSync for on-chain KYC. Source

Polygon APIs will soon be deployed on The Graph, as it’s expanding support for the Polygon blockchain. Source

Chainlink has launched staking for its native token, LINK and is a major step forward in its new Economics 2.0 plan. Source

Avalanche DEX, Trader Joe, has announced its first expansion into the Ethereum ecosystem by deploying to Arbitrum. Source

Avalanche has partnered with Alibaba Cloud to power the company’s infrastructure services in Asia. Source

Fantom is proposing to reduce its token burn rate from 20% to 5% to fund a dApp rewards program. Source

Near Foundation has partnered with Columbia-based food giant, Grupo Nutresa, to create a Web3 loyalty program in Latin America. Source

Compound’s community is set to vote to increase the Wrapped Ethereum (WETH) supply cap by 100% on its V3 lending protocol. Source

Magic Eden has followed OpenSea in launching an NFT royalty protection tool called Open Creator Protocol, allowing creators to enforce royalties on new collections. Source

OpenSea will be adding NFT support to the BNB Chain, a month after announcing support for Avalanche. Source

CroLend, a Cronos-based algorithmic lending protocol has drained $600K from users in a rug pull. Source

Axie Infinity spikes 24% in 24 hours as the community takes the first step to a fully decentralized future. Source

SushiSwap says it only has 1.5 years of treasury reserves left as operating expenses currently amount to $5M per year. Source

Macro news

US Fed Chair, Jerome Powell, hints at raising interest rates at a slower pace of 50 basis points in December. Source

The US economy added 263K jobs in November which means the unemployment rate remains unchanged, despite the interest rate rises. Source

The European Central Bank (ECB) warns of losses from over a decade of aggressive money printing and the current combination of high inflation and rising interest rates. Source

The ECB has said Bitcoin is on the “road to irrelevance” in a blog post titled “Bitcoin’s last stand.” Source

Brazil’s lawmakers have approved a regulatory framework that recognizes Bitcoin as a form of payment, and just needs the President’s signature to make it law. Source

Australia estimates that digital assets could increase GDP by up to $40B AUD a year with the right regulatory framework. Source

US Commodity Futures Trading Commission (CFTC) commissioner has suggested creating two categories of retail investors separating households from professionals. Source

Mark Zuckerberg is still long-term optimistic about Meta’s Metaverse potential on a five-to-ten-year time horizon. Source

Italy will impose a 26% capital gains tax on crypto profits above €2,000 from 2023. Source

Pakistan has signed new laws to ensure a CBDC is ready to launch by 2025. Source

Follow Rebecca on Twitter and Instagram.

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.

Do let me know if you have any questions or feedback, or any topics you’d like to see covered in future issues.

See you next time!

Lark and the Wealth Mastery Team

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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.

You can find a full disclosure of all my crypto & venture investments here.