“You make most of your money in a bear market, you just don’t realize it at the time.”
- Shelby Cullom Davis
1-Min Market Update
Bitcoin
Range bound between $20k-$28k
Major moves seem unlikely for now, yeah kinda boring I know
Ethereum
ETH is around 81% down from the peak, somewhere in between previous corrections
“The merge” edges closer—here’s a great thread.
Macro / Stocks
June CPI data on Wednesday is expected to show U.S. headline inflation rising above May’s 8.6% level
China likely to remain partially shutdown as BA.5 sub COVID-19 variant spreads
The Nasdaq 100 Vs Bitcoin
How likely are we to see the Nasdaq (blue) and Bitcoin (orange) diverge? See the last month or so, the correlation has broken slightly in the Nasdaq’s favor.
This chart tells us the Bitcoin has very much been viewed as a speculative, “risk-on” asset that has attracted excess liquidity. Will the narrative change?
And to finish, here’s another correlation that should give you a bit of much needed, bear market, hopium:
Weekly News
Voyager Digital files for Chapter 11 Bankruptcy, while Crypto exchange FTX has a few billion to support the industry
Voyager Digital has commenced voluntary Chapter 11 bankruptcy proceedings in the Southern District of New York. The company also announced in a press release that it was proposing a restructuring plan as a means of making whole its creditors and customers. Voyager had a significant level of exposure to Three Arrows Capital, which has also begun bankruptcy proceedings.
Sam Bankman-Fried (SBF) who is the head of one of the largest cryptocurrency exchanges, FTX, said that his company still has a “few billion” on hand as a means of supporting the struggling firms that could further destabilize the digital asset industry. He did however note that the worst of the liquidity crunch has likely passed.
The British Army Lost Control of Twitter and YouTube Accounts
As confirmed by the Army and the Ministry of Defense Press Office, the British Army lost control over its Twitter and YouTube accounts on Sunday to crypto scammers.
The hackers used both platforms to promote fraudulent cryptocurrency and non-fungible token (NFT) projects and renamed the YouTube account after American investment managers Art Invest.
The fraudsters posted videos of discussions that were held by the company in 2021 discussing the Bitcoin (BTC) cryptocurrency.
Crema Finance is a liquidity provider built on Solana (SOL) and got exploited for around 69,500 SOL which is equal to $2.3 million, as well as $6.5 million worth of stablecoins, for a total loss of $8.8 million in notional value.
The hacker then swapped the stablecoins for Ethereum (ETH) through the usage of Uniswap (UNI).
The team behind the protocol offered the attacker a bounty of $800,000. However, the hacker negotiated a much bigger bounty of $1.7 million in the form of SOL token, where in exchange, they returned $7.6 million worth of the stolen crypto.
Members of the Solana ecosystem are also the target of a class-action lawsuit that was filed last week before a court in California. They were accused of illegally benefiting from SOL, the blockchain's native cryptocurrency, which the lawsuit claims is an unregistered security.
According to the lawsuit, Solana Labs, the Foundation, the co-founder Anatoly Yokavenko, Multicoin Capital Management, Kyle Samani, and FalconX are all responsible, according to Mark Young, who is a California resident.
Coca-Cola to release Pride Series NFT collection, UAE to launch First Metaverse Hospital, Reddit announces an NFT-based Avatar Marketplace
Coca-Cola has announced plans that they will release a Pride series of non-fungible tokens (NFTs) as a means of celebrating the LGBTQIA+ community, and to do so, they will be collaborating with artist and advocate Rich Mnisi. The NFT collection will be minted on top of the Polygon (MATIC) network.
UAE announced the launch of the first hospital in the Metaverse that will go live in October of 2022. The goal here is for it to be a fully functional virtual hospital where patients can visit using avatars and interact with doctors. The medical Metaverse will be under the management of Thumbay Global, which has already started work on the project.
Reddit announced the launch of an NFT-based Avatar marketplace, which will enable users the opportunity to purchase blockchain-based profile pictures at a fixed rate and will have 90 different designs that will be released in the tens of thousands.
Aave Proposed an Over-collateralized Stablecoin Called GHO, and Shiba Inu (SHIB) Announced a New Stablecoin as Well as a New Reward Token
The decentralized finance (DeFi) platform Aave has unveiled its plans towards launching an over-collateralized stablecoin that would be called "GHO"; however, this is subject to the community decentralized autonomous organization's (DAO's) approval.
The announcement was made by Aave Companies and stated that it would be an Ethereum-based and decentralized stablecoin that is pegged to the U.S. Dollar, one that can be collateralized with multiple assets that the users choose.
Alongside this announcement, Shytoshi Kusama, lead developer of Shiba Inu (SHIB), announced a new project through a blog post. This featured the TREAT token, a new reward token tailored towards the SHIb community that will also be a part of the future Metaverse, Shibarium, as well as a stablecoin that will be able to avoid the problems found in other assets in this category.
Weekly projects to watch
The weekly projects to watch will be coming in another edition from now, later in the week. Stay tuned!
Thanks for reading,
James