LSD Coins Rally & DCG/Genesis Woes
Market Monday: An overview of the performance of various financial assets
Daily Bullets - Monday, January 9th
Hope everyone had a wonderful break! We’re back!
Synopsis: Market is looking green and spry with ETH outperforming over Bitcoin, liquid staking derivative (LSD) coins have been rallying over the past week and the DCG/Genesis potential bankruptcy is still in the air without a resolution yet. Will a bankruptcy result in forced selling? Upcoming important macro dates to be aware of are US December CPI on January 12 and FOMC rate hike on January 31.
Daily Bullet Highlights:
- Federal prosecutors in New York, along with the SEC, are investigating Digital Currency Group (DCG) for internal transfers at its lending subsidiary Genesis
- The timeline for Mt. Gox financial details registrations and repayments has been pushed back by two months to Sept. 30 from July 31
- Ethereum’s upcoming Shanghai upgrade, which lets users unstake their ETH, is the likely catalyst behind liquid staking derivative tokens narrative rally. Devs planning to release a public test network for Shanghai by the end of February
- More than 55M shares of Robinhood stock worth over $450M owned by FTX co-founders SBF and Gary Wang seized by the U.S. Department of Justice
- Crypto payments firm Wyre cuts withdrawal limits to 90% of funds, CEO has stepped down and the firm is exploring strategic options to survive the bear market
- Huobi Korea is set to sever corporate ties with crypto exchange Huobi Global and run its own business
- Gala Games is working on a movie with The Rock and Mark Wahlberg causing $GALA pump
- OpenSea adds support for Arbitrum Nova
Market Monday: An overview of the performance of various financial assets
- Since the FTX crash in November, Gold has been outperforming. There was a gradual slide in stonks (S&P 500, Nasdaq, Dow) with a recent uptick while the Dollar slid down. ETH held up better than Bitcoin and has seen a strong rally off its local bottom in December. Risk seems eager to return and many have hopes for an “echo bubble” meanwhile we still have overhanging macro concerns to clear up first.
Crypto News:
- As part of its regularly scheduled rebalancing, Grayscale sold its AVAX and used the cash to purchase Bitcoin, Ethereum, ADA, MATIC, and SOL
- Mastercard is launching a web3-focused incubator with Ethereum scaling layer-2 blockchain Polygon to help artists connect with fans
- LongHashX, the startup accelerator arm of crypto venture capital firm LongHash Ventures, has launched soulbound tokens to reward contributors
- Financial authorities in Germany are raising the alarm amid the rapid spread of a new financial malware affecting banking and cryptocurrency applications called “Godfather”
Crypto Exchanges:
- Court filings show FTX spent $40M on food, flights, and hotels in just 9 months
- MEXC Global officially launched the MEXC Mastercard, allowing cryptocurrency holders to use digital assets in daily payments
- Flare Network (FLR) and Beldex (BDX) listed on KuCoin
DeFi:
- Trader Joe DEX launched its mainnet on Arbitrum, its first move expanding to a chain beyond Avalanche
NFTs/Gaming/Metaverse:
- GM: Daybreak Around the World, the Nat Geo Genesis NFT Collection
- A phishing website offering a Pokémon-branded NFT card game has been spreading malware
- Allah Rakha Rahman, the Indian composer and singer is launching his own metaverse platform Katraar for artists and their music
- 119,170 NFTs each representing one frame of the 83-minute long 2022 thriller film The Rideshare Killer shot in 24 frames per second were minted on the Polygon blockchain
Early Stage Projects:
- Pendulum wins Polkadot's 35th parachain auction
- MUX V2 - The first ever leveraged trading aggregator is live on Arbitrum
- Premia merges with Knox Vaults
- Valorem Options Litepaper
- DYAD testnet V5 is live on Görli
Economic/Government/Regulatory:
- Metropolitan Commercial Bank’s holding company will exit its crypto asset vertical, pointing to the shifting regulatory environment for banks involved in crypto
Fundraises:
- DeBox $2M Strategic Partnership and Seed investment from ABCDE Capital to build a Web3 Substack and full-stack DAO platform - @DeBox_Social
Research/Reads:
- M6 Labs - Deep Dive Into DIBA - Using Bitcoin, DIBA offers the opportunity to create, trade, and collect Unique Digital Assets (UDAs) - source
- How the GBTC premium trade ruined Barry Silbert, his DCG empire and took crypto lending platforms with them - source
- What JPow and the FED look to do in 2023 - source
- Delphi Digital - The Great Reset: Navigating Crypto in 2023 - source
- Crypto VCs say half their token bets are sidelined with no launch date in sight - source
- Glassnode - A Volatility Slumber - source
- Andre Cronje - Oracle Evolution - source
- A Brief Primer On Ethereum’s Scaling Solutions - source
- Deconstructing the Impact and Opportunity of Modular Execution Layers - source
- Solana vs. Polygon: A Developer’s Perspective - source
- What would a perfect game look like? We’ve got some ideas - source
Twitter:
Bullish large miner perspective on Bitcoin in next couple months:
1/ I would like to discuss our current position in the Bitcoin market cycle.
Starting from the previous Bitcoin (BTC) all-time high (ATH) and ending with the next halving, #BTC crossed the bear market bottom in 2014 and 2018, respectively.— Jiang Zhuoer BTC.TOP (@JiangZhuoer)
Jan 9, 2023
10 biggest narratives for 2023:
Being early to a hot narrative is the simplest way to make OUTSIZED RETURNS.
Identifying this narrative is a bit more challenging...
I reviewed hundreds of pages in multiple crypto reports and made a list of 10 BIGGEST NARRATIVES for 2023 + related money making opportunities:
— korpi (@korpi87)
Jan 8, 2023
GCR bullish on China:
I believe China, (and Asia in general) will fuel the next run
It will take quite some time to melt Western cynicism towards this space, but the East is ascending and yearning to flex
You should be hanging out in WeChat
Many future pumps will be on coins none of your circle know— GCR (@GCRClassic)
Jan 9, 2023
Ongoing crypto narratives:
1. WEEKLY CRYPTO NARRATIVE COVERAGE #1
A must-read for any narrative trader, I'm covering all narratives + possible upcoming ones for BOTH NFTS & COINS:
- LSD
- SOL
- Artblocks... AND MOREA 🧵
— Kyle (@0xkyle__)
Jan 9, 2023