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Todayβs edition is brought to you by 5ire - a next-gen Layer 1 ecosystem with dual chain capabilities; including EVM compatibility and a unique consensus model (SPoS) with built-in sustainability. |
Explore how 5ire is designed for real-world impact. |
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GM. This is Milk Road, your crypto training camp β building your financial muscles one insight at a time. |
Hereβs what weβre cookinβ today: |
The #1 thing to avoid in crypto β 4 BIG things to watch this week π¨ OpenSea acquisition coming? πͺ |
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THE #1 THING TO AVOID IN CRYPTO β |
Youβll see a lot of acronyms flying around cryptoβ¦ |
TVL (total value locked). MAU (monthly active users). DAA (daily active addresses). |
These are all common metrics investors use to decide whether a crypto project is βlegitβ or not. Youβll hear things likeβ¦ |
βThis project has more TVL, so itβs better!β |
βJust look at the trading volume, this is the next big thing! |
But oftentimes, this is a trap. And one you want to avoid. |
Why? First things first⦠a lot of these metrics are inflated. |
Here are two examples: |
1/ Solanaβs stablecoin volume. |
Solana has been leading all chains in stablecoin volume recently. |
It saw ~$120B in USDC volume last week alone. Sounds impressive, right? |
Well, a Twitter user (@CarryWorm) decided to dig deeper. Hereβs what they foundβ¦ |
90% of the volume was coming from the same 9 accounts. All of them were market makers. They inflated the numbers by creating and canceling orders that were never filled. |
In other words, Solanaβs stablecoin volume has more hot air than a bag of Cheetos. |
2/ NFT lending on Blur. |
NFT lending (also known as βNFTfiβ) has been one of the hotter narratives in crypto. |
Blur has been leading the way. |
$833M in NFT loans have been given out or refinanced on its platform this month alone. |
Well, NFTstats.eth (NFT guru and friend of Milk Road) recently found out that: |
2 wallets account for $230M of the loans. That makes up 55.9% of all volume. |
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Milk Road Take: Try to avoid the Metrics-Mania of Crypto⦠|
Donβt get hypnotized by high numbers. Just like a magicianβs trick, the real action is often where youβre not looking. Look for substance over sparkle. It's easy to get caught up in the razzle-dazzle of big stats, but the devil's in the details. Always DYOR (do your own research). Dig deeper, question more, and rememberβ¦ not all that's counted truly counts. |
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| | 5ireβs goal is to merge blockchain technology with sustainability and to transfer the operations and reporting of governments and institutions, particularly those concerning sustainability-focused real-world assets (RWAs), onto the blockchain. | The transformative power of RWAs has taken center stage, surging to $5B+ in TVL, and is becoming a key narrative in the coming bull run. | Where does 5ire fit in? | One way that 5ire is addressing sustainability issues is by incorporating RWAs into the 5ireChain. | The impact is already being felt. From a $7 billion solar energy project to the launch of a multibillion-dollar carbon marketplace β all of which is built on 5ire. | Itβs time to pay attention to RWAs and 5ire π₯ | What you need to know: | 5ireβs project roadmap aligns with the United Nations' 2030 Agenda and incentivizes sustainability across governments, Fortune 500 companies, entrepreneurs, and universities. SPoS Consensus operates on a governance-based reward system aligned with the UN Sustainable Development Goals (SDGs). 5ire is developing a robust 5ireChain ecosystem and contributing to blockchain education in India. | Explore how 5ire is bridging sustainability with real-world impact. | |
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4 BIG THINGS TO WATCH THIS WEEK π¨ |
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Weβve got a big week coming up! |
Here are the 4 most important things you should keep your eyes on: |
1/ The Federal Open Market Committee (FOMC) meeting. |
Itβs FOMC week. The first of the year. **nervous gulp** |
If youβre not familiar, the FOMC is a group of people in charge of controlling inflation & deflation. |
They do this by adjusting interest rates, and deciding what assets to buy with the treasury. |
The FOMC meets (around a fancy mahogany table) 8 times a year to figure out 3 main things: |
Maximizing employment. Stabilizing prices (inflation/deflation). Moderating long-term interest rates. |
The FOMC meets. Then the notes get released. Then the markets react. |
I knowβ¦ BOOOORIIIIIING! But itβs important, so stay with me. |
Here are some possible outcomes from the upcoming meeting: |
Scenario 1: Rates go up. This would likely make investors nervous and turn the markets into a roller coaster (not the fun ones at Six Flags either). |
Scenario 2: Rates hold steady or drop. This would be a warm blanket for the markets, potentially giving a green light to risk-on assets, like crypto. |
The big thing to watch will beβ¦ the FOMCβs language and future predictions. Sometimes it's not just what they do, but what they say about the near-term that gets the markets buzzing. |
Btw, according to CME FedWatch Toolβs predictions, thereβs a: |
97.9% chance interest rates stay the same. 2.1% chance they go down. 0% chance thereβs a hike. |
2/ Earnings reports. |
32% of the S&P500 companies will report earnings this week. |
This includes heavy hitters like Amazon, Google, Microsoft, and Facebook (we donβt call it βMetaβ under this roof). |
Hereβs who else is on deck: |
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Watch out. Volatility from earnings week could also bleed into crypto. |
P.S. - According to The Block, the S&P500 and Bitcoin have a negative correlation, meaning theyβre prices currently move in opposite directions. |
3/ Googleβs crypto ads. |
Starting today, Google is letting βfinancial products that allow investors to trade shares in trusts holding large pools of digital currencyβ run ads. |
This includes Bitcoin ETFs. |
The good news: thereβs gonna be a lot more Bitcoin ads on Google. |
More ads = more eyeballs on BTC. |
The bad news: thereβs gonna be a lot more Bitcoin ads on Googleβ¦ including fake scams and malicious links. Watch out! |
Milk Road Rule #35: Check the link, before your funds sink. |
4/ Token unlocks. |
Every investor should keep track of token unlocks. (In case you missed it, hereβs a quick explainer on why theyβre important and how they can affect prices). |
This week about $240M in tokens will be unlocked: |
$89.6M in dYdX tokens (10.63% of the supply). $72.96M in OP tokens (2.77% of the supply). $55M in SUI tokens (4.02% of the supply). |
Here at Milk Road, we donβt like doing public math. Butβ¦ |
FOMC meeting + earnings reports + token unlocks = a recipe for volatility. |
Buckle up. |
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BITE-SIZED COOKIES FOR THE ROAD πͺ |
Bahamut Grants Program has launched, which includes a 10 million $FTN fund for individuals, businesses, organizations, and researchers. Bahamut chain is an innovative, EVM-based, layer 1 public blockchain with smart contract capabilities, advanced security, and a unique PoSA consensus - that means Proof of Stake and Activity!* |
OpenSeaβs CEO says the NFT platform is βopen-mindedβ towards acquisitions. βThe honest answer is that we take a pretty open-minded approach. We think that if the right partnership comes along, then thatβs something we should certainly consider.β βDL News |
Dark web dealer surrenders $340M in crypto under new plea deal. Itβs the largest crypto seizure in the Drug Enforcement Agencyβs (DEA) history. |
Bloomberg experts believe thereβs a 60% chance an ETF will be approved in May. James Seyffart (ETF guru) is eyeing May 23 as the next date to watch in the spot ether saga. |
Analysts predict Charles Schwab will eventually offer its own Bitcoin ETF. Some experts speculate that Schwab's delay may allow the firm to offer lower fees than its competitors. |
A poem that was inscribed on the Bitcoin blockchain sold for $11,430 at Sothebyβs. Itβs the first-ever individual poem sold by the 280-year-old auction house. |
*This is sponsored content |
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MILKY MEMES π€£ |
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ROADER REVIEW OF THE DAY |
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VITALIK PIC OF THE DAY |
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| Mondays are for getting after it | | | Jan 29, 2024 | | | | 0 Likes 0 Retweets 0 Replies |
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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research. |