Welcome to The Wise Guy,
Where we take cryptocurrency seriously, but we also know how to have a good time.
That’s why we’ve curated the crème de la crème from not one, not two, but FIVE newsletters.
MilkRoad, Defiant, Messari, Bankless, and CoinDesk Node.
Defiant’s Top Story
The U.S. House Financial Services Committee has given the green light to the Financial Innovation and Technology for the 21st Century Act. What does this mean? Well, it’s a big step towards bringing some much-needed clarity and protections to the world of cryptocurrencies.
The act covers things like registration requirements for digital asset exchanges, brokers, and custodians, as well as enhanced disclosure rules. Plus, it helps define which areas of the market have jurisdiction.
If this act becomes law, it could be a game-changer for the cryptocurrency industry in the United States. Woohoo!
But hey, let’s not forget about the global markets. Even with the recent rate hike by the Federal Reserve, things are holding up pretty well.
Cryptocurrencies have seen some small gains, and popular stock indices like the S&P 500 and Nasdaq are hanging around their highs for the year. Seems most folks don’t expect any more rate hikes in September, as inflation takes a breather.
So, in a nutshell: the future is looking brighter for cryptocurrencies in the U.S., and the global markets are doing a happy dance. Inflation can take a rest for now.
Messari’s Desk
First up, MakerDAO has given DAI a boost by increasing its savings rate to a whopping 3.19%. That makes DAI the only top stablecoin offering a fancy on-chain “risk-free rate.”
This move aims to encourage more people to use and adopt DAI in the world of cryptocurrencies. But here’s the fun part: with this rate hike, a whole new world of arbitrage opens up. Users can now exploit the differences between borrowing rates of other stablecoins and the DAI savings rate to make some sweet profits.
Now let’s talk NFTs. Who’s curious about when we’ll hit the bottom? Well, buckle up, because there’s a twist.
Unlike cryptocurrencies, NFTs don’t have historical patterns to predict bottoms. But here’s the scoop: NFT transactions and volumes are projected to hit their lowest point since June 2021.
Some popular NFT projects have seen massive drops in floor prices. We’re talking about a 95% decline for Azuki, Doodles, and Cool Cats.
Even big shots like CryptoPunks and Bored Ape Yacht Club haven’t been spared, with their floor prices dropping over 80%.
It’s a rollercoaster ride, my friends. But hey, here’s the silver lining: for true value seekers and projects with strong communities, these trends might just pay off in the end.
OpenSea is also making moves with their new “Deals” feature. It’s all about peer-to-peer NFT trading, with a twist. The best part? Fee-free trades! Yep, you heard it right. OpenSea has abolished their fees for NFT swaps, making it more affordable for users to trade.
Plus, they’re allowing bundle trades and the inclusion of multiple NFTs in a single trade.
This adds a whole new level of dynamics to the NFT marketplace. It’s like a treasure hunt with endless possibilities. And here’s the kicker: this liquidity boost can lead to more frequent transactions and even shape a new pricing structure in the NFT sector. So get ready to dive into a safer, more liquid, and user-centric market.
Last but not least, let’s not forget about the AI breakthroughs in the crypto space. Meet BitTensor, a decentralized network of machine learning models that rewards participants for contributing their computational resources and expertise.
They recently introduced the BitTensor Language Model (BTLM), a super impressive language model that outperforms existing models by 12%. And here’s the cool part: it’s so compact that it can run on almost any device, from smartphones to laptops. Decentralized AI is becoming more accessible than ever, revolutionizing the landscape.
Bankless’ Desk
Meta, the company behind the metaverse, is facing significant financial losses. Since the beginning of 2022, they have reported $21 billion in metaverse-related losses. This is almost as much as the total funds raised by crypto venture capitalists during that time.
While Meta’s investments in hardware and VR goggles are capital-intensive, they are necessary to capture the potential of the multi-platform metaverse. However, Meta’s struggles to go mainstream, despite having unlimited resources, highlight the challenges that web3 companies may face in reaching a mass audience.
In the crypto world, the metaverse is also experiencing a rough patch, with metaverse tokens down and NFT volumes dropping to mid-2021 levels. OpenSea, one of the leading NFT platforms, has only achieved $117 million in NFT volume for the month of July.
Furthermore, there is legal drama involving Sam Bankman-Fried (SBF), the founder of FTX. Prosecutors want SBF to be jailed before his trial, as they believe he has been trying to intimidate witnesses and influence their testimony. SBF’s defense lawyers argue that he has the right to defend himself publicly. The judge will ultimately decide what action to take.
Milk Road’s Educational Desk
Milkroad got some juicy intel about crypto tokens, and we’ve seen some impressive returns. Bitcoin (BTC) is up 76% year-to-date, while Ethereum has gained 57%.
But the real stars of the show are the altcoins like XRP, SOL, BCH, and MKR, which have soared by 100% or more.
We like to think of these as the “Dark Horses of Crypto” – the underdogs that surprised everyone with their success. They were the unexpected winners that many investors didn’t have on their radar at the beginning of the year.
Let’s shine a spotlight on two of these dark horses, shall we?
1. COINBASE STOCK ($COIN)
Coinbase, the U.S.-based crypto exchange, had a rough start to the year. It faced a Wells Notice and got sued by the SEC, which accused it of violating securities laws. Despite these setbacks, Coinbase’s stock (COIN) has rallied. It’s up 30% in the last 30 days and a remarkable 176% year-to-date. How did this happen?
Firstly, Coinbase has become the go-to exchange for multiple Bitcoin ETFs. Big names like BlackRock, Fidelity, and others have chosen Coinbase as their “surveillance-sharing service.”
Secondly, the ruling that XRP is not a security was a major win for Coinbase. It was one of the main securities the SEC charged the exchange with listing. If XRP isn’t considered a security, Coinbase can’t get in trouble for listing it. Success-by-association at its finest!
2. BITCOIN MINERS
Bitcoin miners had a tough time in 2022. The crash in Bitcoin’s price meant mining profits plummeted, and some companies even started losing money. It was a case of “second-hand rekt.” Some miners went bankrupt, while others had to sell off their reserves or shut down their operations.
But here’s the good news – Bitcoin miners are making a comeback! Mining profits are flowing in again, and the stock prices of publicly traded mining companies have soared. Here are a few examples of the best performers this year:
– Core Scientific: +1,250%
– Iris Energy: +430%
– Riot Platforms: +425%
– Bitfarms: +300%
These Bitcoin miners have once again taken the winner’s podium in the world of investments.
So, it seems like there are indeed “50 Shades of Grey Green” in the crypto world. Amidst challenges and setbacks, there are always opportunities for unexpected winners to emerge and capture the spotlight.
CoinDesk’s Best Story
Yesterday, we witnessed a prime example of the dangers of disinformation in the case of disgraced FTX founder Sam Bankman-Fried.
False narratives were spread on social media, suggesting that changes in the criminal charges against him meant he was getting special treatment due to his connections in the Democratic party.
However, these narratives were far from the truth.
Let’s set the record straight. Bankman-Fried is by no means getting away with his alleged crimes. He still faces numerous active charges, with a trial scheduled for October.
While one set of charges, including bank fraud, was dropped in June due to procedural issues, they will be revived as part of a separate trial in March 2024. Similarly, the campaign finance charges are expected to be rescheduled for March.
Political influencers like Ian Miles Cheong and Glen Greenwald, alongside Republican presidential candidate Vivek Ramaswamy, used this flawed premise to fuel a partisan narrative.
They mischaracterized the events to further the FTX-Democrat connection, even though Bankman-Fried’s supposed links to the Democratic party were incorrect.
In reality, he donated to both Republicans and Democrats using stolen customer funds, aiming to gain favor and influence across the political spectrum.
The danger here lies in the fact that these conspiracy theorists are playing into the hands of the corrupt elite they claim to be attacking. Bankman-Fried’s prosecution should not be turned into a political football, as it obscures the true nature of the case.
Twice weekly crypto goodness, coming your way! Catch us every Monday, Tuesday and Friday. And hey, don’t forget to check us out on Wednesdays for all the latest AI news – because why limit yourself to just one kind of intelligence?
