Unprecedented bullishness
WHAT'S MOVING CRYPTO
Happy Friday Everyone! đ
In March I flagged Bridge Network to our paid subscribers and announced our private round investment at $0.07. Last month Bridge held the public sales of its BRDG token at $0.20 which sold out in 1 minute. It had since cooled down from its debut, and it wasnât exempt from the bloodbath that recently swept the crypto markets as a whole, but after last weekâs update showed that Q2 was shaping up to be a big quarter for the network the price of the token has taken off! At the time of this writing, the price has skyrocketed to $0.46 after kicking off lows at $0.09.
Subscribe to our paid newsletter (and join hundreds of others) to make sure you donât miss out on CRYPTO opportunities like this one!
The failed effort to rescue Terra has been expensive with costs surpassing $2.9B. Not to worry though, Do Kwon has announced a second revival plan. The recent market volatility hasnât deterred the European Central Bank which still plans on launching a prototype of the digital euro in 2023. If everything goes smoothly, the EU could have its own central bank digital currency (CBDC) by 2026. Finally, Robinhood is rolling out a Web3 wallet in an attempt to capture NFT hype and presumably make up for declining dogecoin revenues.
Having said thatâŠletâs get to it!
Unprecedented bullishness
âItâll be different this timeâ
Stocks and monkey JPEGs on the same app
If youâre reading this but havenât subscribed, join our community of 1k smart, fun & edgy investors đ
1. Unprecedented bullishness
âBe fearful when others are greedy. Be greedy when others are fearful.â - Institutional investors on Bitcoin (probably)
While Terraâs unraveling was causing devastating ripple effects throughout the crypto-verse, institutions funneled $299M into Bitcoin funds last week, good for the largest inflow since October 2021 and the 19th biggest since records began in 2015.
Itâs an unprecedented level of bullishness for such an extreme period of volatility.
Ethereum, on the other hand, saw 2.6% of assets under management in Ethereum-based funds evaporate during the same time ($27M), possibly in relation to concerns surrounding âthe mergeâ.
Total YTD outflows for Ethereum total $236M.
Interestingly, one of its main competitors, Solana, has seen substantial inflows of $103M for the year.
On a related note: the deadline for SECâs decision on whether or not it will allow Grayscale to convert its Bitcoin trust into a spot ETF is July 6.
2. âItâll be different this timeâ
Switching back to TerraâDo Kwon unveiled his new plan to revive the blockchain: a fork.
He proposed forking the current Terra blockchain to allocate certain amounts of Luna to previous holders based on a set distribution, where many of the tokens would be subject to long vesting periods.
The plan was put to vote among Luna token holders and within one hour received over 23M votes in favor compared to just 11M against the plan.
The official vote, however, doesnât seem to represent the sentiment among the Terra community at large.
A poll on the networkâs research and governance forum shows the community overwhelmingly rejects the fork.
One validator with 1.49% of the vote compared the voting process on the proposal to a dictatorship model, where the majority doesnât possess the voting power to prevent it from happening.
This wonât work. Forking does not give the new fork any value. Thatâs wishful thinking.
- Binance CEO Changpeng Zhao
3. Stocks and monkey JPEGs on the same app
Sam Bankman-Friedâs FTX US is expanding its offerings in a move that should help the company navigate periods of decline in the crypto markets.
Unveiled this week, FTX Stocks will allow users to buy shares in almost every company in the S&P 500 and Nasdaq 100, as well as several ETFs from the same app where they purchase JPEGs of monkeys.
Users will be able to trade stocks commission-free with no-fee brokerage accounts that theyâll be able to fund with asset-backed stablecoins (a first for retail brokerage accounts) such as USDC in addition to the standard wire transfers and credit card deposits.
Unlike competitor Robinhoodâof which Sam Bankman-Fried is now a 7.6% ownerâFTX Stocks will not take payment-for-order-flow (PFOF).
Orders will initially be routed through Nasdaq Inc.
The launch isnât a surprise as FTX US has been looking for ways to diversify from crypto markets in the event of downturns (ex: now) and has been hinting at this for months.
Even if stocks arenât profitable for the company off the bat, the offering serves to attract retail customers that can then be upsold on the higher-margin business (crypto).
SOURCES*
Bloomberg
Coin Telegraph
Blockworks
1. Decrypt
2. The Block, The Block
3. Bloomberg
Disclaimer: The publisher does not guarantee the accuracy or completeness of the information provided in this page. All statements and expressions herein are the sole opinion of the author or paid advertiser.
Grit Capital Corporation is a publisher of financial information, not an investment advisor. We do not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient. Â
THE INFORMATION CONTAINED ON THIS WEBSITE IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME. THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION. INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORSâ OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN.
No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. Â
Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable. They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur. Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and the publisher undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material.
The publisher, its affiliates, and clients of the a publisher or its affiliates may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.
Neither the publisher nor any of its affiliates accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein.
By using the Site or any affiliated social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.
For Full Terms of Use Click HERE. For the Privacy Policy Click HERE.