π€ DOGE creator slapped crypto investors
The crypto market always boasts something that can surprise even the olds.
Howdy, dudes! The buidlbee crypto community is over here. We hope you're hanging in there (times are hard). However, this could mean that a bull market is coming soon!
We have done a complex but enjoyable job of sharing it with you in today's letter:
About the market situation today;
The USDT's dominance is increasing while all the others are falling. How come?
Why did a Dogecoin (DOGE) founder call crypto investors mentally ill?Β
How not to invest, by the example of PancakeSwap (CAKE);
Potential surprise from Hedera (HBAR);
How to get a possible ZkSync drop.
Quickly the most important things of the day:
Ripple (XRP) considers leaving the U.S. amid ongoing litigation with the SEC and regulatory pressure.
In a few days, the third Bitcoin whale woke up. They hold 8,199 BTC ($225M).
The ByBit exchange imposes mandatory KYC (Know Your Customer) from May 8.
Binance US lists Floki Inu (FLOKI).
Coinbase filed a petition with the SEC in July 2022, requesting a clear answer regarding the regulation of digital assets. The SEC did not respond to that request, so Coinbase filed a summary action in court, seeking a review of the request.
On April 26, the first national Romanian NFT marketplace will be released, available to both institutional investors and the public.
Terra co-founder Daniel Shin and nine others are formally charged by South Korea with several counts, including violations of capital markets law. Prosecutors have frozen the defendants' assets to the tune of about $185 million.
π What's going on in the market today?
There is low volatility and temporary stabilization in the crypto market. The nearest big event is May 3, the next Fed meeting.
During the day, a local low of BTC below $27K was updated, but this dip was quickly redeemed. For the last few hours, the major cryptocurrency has stabilized in a narrow range of $27300-27500.
Ethereum fell below $1840, and the market capitalization lost another almost $20 billion.Β
Of the altcoins, CAKE, Matic, SOL, UNI, ICP, NEAR, FTM, and STX suffered the most in the last 24 hours. But FLOKI grew by more than 40% on the news about the listing on Binance.US.
βΉ Case 1: The defeat of U.S. crypto
Since the beginning of 2023, Tether's capitalization has grown 23%, from $66.2 billion to $81.5 billion. This stablecoin has been steadily increasing its market share this year. Current statistics show that when big investors exit deals, they usually allocate the profits to Tether.
Its main competitors, Circle's USD Coin (USDC) and Paxos' BUSD (a Binance-branded token), have run into difficulties. The first suffered after the collapse of Sillicon Valley Bank, and the second was banned by the U.S. regulator. Since the beginning of the year, the capitalization of USDC has dropped from $44.5 billion to $30.7 billion, while that of BUSD has dropped from $16.5 billion to $6.4 billion.
The jurisdiction of these projects explains why this is happening. The insane regulatory environment in the U.S. is pushing more and more traders offshore. Tether is registered outside the U.S. in the British Virgin Islands, while Circle is operated from Boston (U.S.), and BUSD was issued by a New York-based company called Paxos (U.S.). The market has realized long ago that USDT is the same dollar, only without the paranoia of the U.S. regulators.
βΉ Case 2: Dogecoin founder on crypto
Dogecoin founder Billy Marcus recently rather crudely called the world "moronic and hopeless" and cryptocurrency investors "mentally ill."
This is the kind of case where it's not what a person says that matters, but why they say it. Marcus sold all of his crypto assets in 2015.
Obviously, his psyche could not withstand the incredible market growth that happened afterwards and without him. So the main conclusion is: don't panic and sell crypto assets in a hurry, or it will be like with Marcus.
βΉ Case 3: What the $CAKE story has taught us
The $CAKE previously locked in annual staking was unlocked today, and a deep dump occurred immediately. The drop was about 20% overnight:
If you look at the annual chart below (the whole staking period), you can see that the drop is even more tremendous:
A simple conclusion from this case study is that it is extremely dangerous to invest in low liquid assets for long periods of time (a year or more) when there is strong economic uncertainty. Ironically, even in the larger U.S. debt market, there is a similar pattern β there is increased demand for short-term treasuries. Even with more reliable and solid assets today, investors are avoiding long-term investments whose risks cannot be objectively assessed.
π¬ What is the overall conclusion?
Case 1 teaches us to stay away from dangerous jurisdictions; fortunately, there are many crypto-friendly countries in the world.
Case 2 teaches us not to panic and not to rush to the exit, giving in to our emotions.
Case 3 teaches us to avoid the other extreme: not to invest for a long time in low-liquid altcoins in conditions of high uncertainty.
π OpportunitiesΒ
[1] π Hedera (HBAR) price can make x3
Hedera is a fully open-source public distributed ledger that utilizes the fast, fair, and secure hashgraph consensus. HBAR is the native, energy-efficient cryptocurrency of the Hedera network. HBARs are used to pay application transaction fees and protect the network from attack through proof-of-stake (PoS).
The Hedera price is now in the interesting liquidity zone, analysts at P_S_trade suppose. An earlier trading chart of HBAR showed that whoever controls the liquidity zone of $0.055-0.065 will organize powerful momentum in the direction of interest.
It looks like the buyers are trying to keep the price on the retest of the liquidity zone and not let it go lower. Which means they are in control now. That indicates there are chances to make x2-x3 moves.
However, if BTC breaks down, altcoins will definitely follow.
[2] π Getting closer to the drop by ZkSync
zkSync is a Layer 2 scaling solution for the Ethereum blockchain (Layer 1) designed to improve efficiency with faster and cheaper transactions. The project has raised $450 million in investments from a16z, ConsenSys, Blockchain Capital, Bitdao, and other well-known investment funds.
After the success of Arbitrum with its ARB token, zkSync is the next promising project that could arrange drops for the most active members of the network. No announcements have been made yet, though.
The various protocols on zkSync do different activities and give away NFTs for interactions with their products. The main value is increasing your wallet activity on the zkSync network, not the gifts you receive.
Quest zkSync Weekend
Rubic x Symbiosis x Mute.io. Two NFTs are available. Details are here. Deadline: May 5.
Quest from iZiSwap. Each week for four weeks, pick up one NFT. The deadline for the first NFT is April 28.
Providing liquidity on SpaceFi. Instructions on how to do this. Deadline: April 27.
Layer3 quests
Transfer ETH to the ZkSync Era network using this bridge and complete the quest.
Exchange ETH to USDC on these websites + complete the following quests: Onchain + quest, SpaceFi + quest, SyncSwap + quest, and Mute + quest.
Purchase NFT on MintSquare + quest.
Fortune to all of us! We believe in the best (and are prepared for anything)!
π¨ Attention! π¨
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