Crypto Market News
- Shiba Inu and Doge took big losses with Vitalik’s cashing out his airdropped Shiba Inu (to charity) being the bearish catalyst. Ran thinks that’s the beginning death knell for these doggie meme coins.
That said, Yearn.Finance (YFI) released a WOOFY token that’s pegged at a more affordable price to the value of YFI. This made YFI more approachable for new retail investors and helped push up its price.
- Elon Musk tweeted that Tesla will no longer accept BTC for vehicle purchases because of the high energy cost of BTC mining / txn confirmation. Ran points out that this likely comes from a misinformed Tesla board member, not Elon himself. Ran also mentions that Gold mining uses much more energy than BTC mining. BTC miners are incentivized to find the cheapest energy sources, which often leads them to renewable energy sources.
VERDICT: the tweet is an over-reaction by clueless Tesla board members. But Ran notes that, at least short-term, this is bad news for Proof-of-Work coins.
- The US stock market also dropped yesterday. Ran notes that inflation is rising and the government can’t hide it anymore (even though the US govt is saying it’s “temporary inflation”). This could lead to the Fed raising interest rates which will make all assets "cheaper". Ran notes that everyone sees the dollar getting weaker, but Bitcoin isn't yet capturing all the value it could possibly have in an inflationary environment. Because Bitcoin is still a relatively new asset, BTC is thought of by investors as 50% a substitute for gold and 50% a risky/speculative asset. Ran thinks that in 2-3 years, the “risky asset” narrative will start to fade. But for now, BTC is also hurt by inflation fears that hurt the overall equities market.
New Token Releases
- Ran introduces Shield Finance's insurance dapp, a smart contract that protects against market crashes. These smart contracts are designed to take the place of stop-losses. Once the price goes below a certain level, you can sell the Shield smart contract and get paid out. This will help traders hedge their positions without having to leave their coins on exchanges. Shield will launch on May 19th through the PAID Network.
- Tomorrow is the Donkey Finance launch, a one-touch farming protocol that makes earning high APYs easy. Drop a donkey meme in Ran's twitter (and change your Twitter profile pic to include a donkey!) for a chance to win 100 Donkey tokens.
How is Crypto Banter making money when everyone else is getting rekt from Elon’s most recent tweet?
Sheldon and Ran discuss which of the larger alts are heating up and could be ripe for rotating into from ETH. Sheldon is starting to see some rotation from Ethereum into stronger alt-coins. Ethereum also looks strong, and Sheldon sees continuing strength in the ETH/BTC pair.
Sheldon says that the following strong alts look promising:
Kusama has just broken an all time high and Sheldon thinks it keeps running. The news that pushed KSM’s price higher was that KSM holders can now stake their tokens (as collateral to a crowd node) to create parachains. Polkadot will only have 100 parachains, but this sets up Kusama to host many more parachains.
Sheldon does think DOT and KSM are overheated for now and will wait for a pullback before buying more as he's bullish on both.