Crypto Banter Notes - 051421 - Friday May 14, 2021

By cryptogardens | Crypto Banter Notes | 14 May 2021


Crypto News

  • Donkey Finance launches today and Defire launches on Monday. Donkey Finance will allow people to copy others yield farming strategies. It’s a copy trading strategy reminiscent of the eToro exchange (who are incidentally investors in Donkey). Donkey will also allow farmers to set their cut of how much rake to take from their followers.
  • Inflation will be a constant flame to BTC prices as investors look to escape inflation into safe-haven assets. US inflation is starting to become an issue as it's up 4.4% year on year. Ran & Ellio believe it’s even higher, especially if you look at housing prices and education costs. Ran mentions that some of the commodities in the inflation basket are subsidized by the government. Ran also mentions that this "temporary inflation" narrative that the administration is pushing is just a sleight of hand trick that's inflating the starting basis for future prices.
  • Tesla's Elon Musk continues to insert himself into the Bitcoin and Doge markets with his tweets. One of this week's guests, Sheldon Evans, has a theory that Elon Musk is not truly interested in crypto but rather in energy efficiency. He’s really into renewable energy and wants to be able to say that he’s revolutionizing crypto farming as proof that his company is on the vanguard of energy technology.

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  • In crypto market news, Ran notes that BTC dominance continues to drop. This has been good for alts, particularly the coins that have pumped recently: Kusama, Polkadot, Cardano & Polygon. Ellio mentions that smart money institutional buyers are still buying the BTC dips so HODL your bags.

Doge coin - is there enough adoption so that it’s here to stay? 

  • Ran says that he knows more people who hold Doge than any other coins. It’s ultimately up to the people to determine what coin(s) they will all congregate around and achieve a massive network effect.
  • Winston Wolf mentions that as more adoption happens, he worries that some technical issues will crop up with the Doge coin network. Doge was initially conceived as a joke coin, and has no technological innovations as it's just a fork of Bitcoin. Something breaking in the Doge coin network could be good for crypto as these new investors would then jump off into other crypto projects.

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  • What if merchants start accepting Doge? There are some merchants accepting Doge but that's not the main driver for Doge. Ellio says to keep an eye out for when the retail buyers run out - will institutional buyers step in? The optimistic view is that at the very least, Doge brings new people into the crypto world.

Which Secondary Chain Will Gain Network Effect?(Cosmos, Cardano, PolkaDot, Polygon, Terra Luna)

This is a chance for each of the guests to give reasons about their favorite chain to rise up alongside Ethereum and to give reasons why (as well as to offer criticism of other chains).

  • Sheldon Evans - big fan of Cosmos (Atom) - there is room for another chain, and he is a much bigger fan of Cosmos compared to Cardano or Polkadot. He mentions that some of your favorite projects are built on Cosmos such as Binance Chain (BNB), Terra (LUNA) and Crypto.com Coin (CRO).
  • Miss Natoshi is a big fan of Polygon (Matic) and notes that it’s become the #1 project in 2021 in terms of adoption. Transactions on Matic have now surpassed Ethereum and big projects like Decentraland are porting over. She also mentions that exchanges like Coinbase might soon allow direct layer 2 Polygon withdrawals for the sake of speed and minimizing transaction costs.

-> Sheldon Evans thinks that even after Ethereum goes to 2.0 it will need layer 2 scaling solutions like Polygon.

  • Winston Wolf sounds most bullish on Cardano as he notes that it’s very hard to port from PolkaDot over to Ethereum. If someone builds on Solana or Polkadot, they might be stuck there. He mentions that the compatibility layer between Ethereum and Cardano is very good, so developers are attracted to the ease of porting to Cardano and its EVM-compatibility (EVM = Ethereum Virtual Machine).

-> Mr Biz worries about Cardano’s marketing plan and that their founder’s sometimes combative nature will rub others in the space the wrong way (“Charles Hoskinson doesn’t have people skills”). Mr Biz is a big believer in Polkadot and Kusama.

-> Ellio believes that although many Cardano dapps might not be here for the long term, it just needs to show it can push transaction volume through. Short term, Ellio is bullish on Cardano.

  • Ellio is also bullish on Terra Luna and believes they should be able to sustain their yields in a bear market. Too much of Defi is reliant on Curve for yields and frothy alt coin valuations during a bull market. Luna is a diversified chain that includes derivatives (Mirror protocol), and it might become a top 10 ecosystem as a Defi-centered layer 1 chain.

The big issue with any of these second chains is cross chain liquidity which is what DFYN is out to solve.

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cryptogardens
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