Episode 20: SNX and FTT

Episode 20: SNX and FTT

By SirGerardThe1st | Tokenomics | 27 Mar 2021


“Then another sign appeared in heaven: behold, a great red dragon that had seven heads and ten horns, and on its heads were seven diadems. His tail dragged a third of the stars out of the sky and hurled them to the earth. And the dragon stood before the woman who was in labor, in order to devour her child when she gave birth. "
Apocalypse of Saint John 12: 3-4 and 9-3

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Source 

In the futile attempt to quarrel between maximalists of BTC, ETH, DeFi, and other liberating ecosystems, many people lose track of which is the common enemy. It is not us who have to fight each other, it is us against centralization, against corporations, against Central Banks. They are the 7-headed beast that the Apocalypse announced to us.

The Central Bank is one of the most sinister ideas that a human could have had in the entire history of civilization. The Central Bank is an icon of unlimited power, made up of bureaucrats, politicians, and dictators, who invent debt and money and thus give value to the things of their countries. Central banks record the money that commercial banks create to finance corporations. They have been conferred with the authority to invent money out of thin air.

In his 'Manifesto of the Communist Party' (1848), published together with Frederick Engels, Karl Marx organized a series of 'measures'. Marx's measure number five reads: "Centralization of credit in the hands of the state, through a national bank with state capital and an exclusive monopoly."

As is well known, the amount of gold and silver cannot be increased at will. As a result, the amount of credit (in terms of loans) cannot be easily expanded based on political expediency. However, Marx could already have fantasized, which would be possible once the state is put in a position where it can create money by expanding credit, usurping, and monopolizing the production of money.

The idea of ​​central banking has a long history. For example, the Swedish central bank, the Sveriges Riksbank, was founded in 1668, and the English central bank, the Bank of England, was formed in 1694. The fraudulent operations of such institutions soon came to light, with the denunciation of the British economist David Ricardo. In his 1809 essay, "The High Price of Bullion," he pointed out that it was the increase in the quantity of money, in the form of banknotes not backed by gold, that caused a general rise in prices.

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Image by PublicDomainPictures from Pixabay 

On August 15, 1971, Marx's vision came true: the US administration ended the endorsement of the US dollar in physical gold, so gold, the currency of the civilized world, was officially demonetized. Through this coup, in the United States of America, as well as in every other country in the world, a system of paper money without backing or fiat money was established. Since then, all currencies around the world represent fiat currencies: they represent the creation of money through the expansion of circulating credit, not backed by real savings or deposits, monopolized by central banks.

The fiat money system, that is, the creation of money through the expansion of circulating credit, has generated a new type of large-scale debt slavery. Consumers, corporations, and, of course, governments have also become highly dependent on central banks continually generating ever greater amounts of credit and money, always at ever lower interest rates. In many countries, central banks have de facto become the true centers of power: their monetary policy decisions effectively determine the level of well-being (?!) of their citizens.

In Europe, central bank Marxism has accomplished a great feat: 19 nation states with a total of around 337 million people have renounced their right to self-determination in monetary matters, submitting to monetary policy dictated by a supranational central bank that issues a single fiat currency, the euro.

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Image by Bruno /Germany from Pixabay 

When trying to find out whether central banks are public or private entities, the answers are confusing, dreamlike, nebulous, and escapist. "Well no, but maybe yes, actually maybe they are private, but they definitely are not." That is what comes out clean. And if you wonder if central banks have shareholders, the answer is yes, and by "law" they charge dividends. With this all said. It couldn't be clearer. The answer to the second question is the answer to the first. In other words, the entity that creates money for a country is in the hands of private shareholders. There is something that seems cloudy, right?

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Image by  d-keller from Pixabay 

The central bank creates promissory notes, even if it does not have reserves, it delivers them to the Treasury, and there the miracle of creation occurs. The Treasury deposits it in the different government agencies, those that need money to cover their deficits, and from that miraculous moment, governments can finance wars, or roads, or pay salaries to employees in a municipality, or electoral campaigns, or build a bridge that is absolutely useless for commerce but owed by one governor to another for having voted in favor of a law, all encompassed under the pompous and ridiculous name of "government projects", according to political opportunism. And sooner or later, all the money ends up as bribes between government employees, in the accounts of contractors for the cartelization of public works, and in other similar destinations, and is deposited in retail banks, so everything ends up being a huge cloud of sewage gases, with the result of galloping inflation, in direct relation to the size of the "government projects" faced by the government, but planned much higher, either to stabilize, or better yet, to destabilize and then to invade and restore democracy.

But that is not all. Prepare to have direct contact with the Apocalypse.

The central bank not only provides money to the economy of a government, but it lends it with interest! So, increasing or decreasing the money supply, the central bank regulates the value of the issued currency.

Even an idiot realizes that the entire structure of this system can only produce one single thing in the long run: DEBT!

Why is nobody protesting against this embezzlement of private shareholders against the whole of society?

Because people have no fucking idea how money works.

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Image by Tatutati from Pixabay

It doesn't take much ingenuity to figure out this blatant scam. Let us suppose that the monetary unit of a country is the “fart”. Each fart issued is actually one fart plus a certain percentage of debt based on that fart as interest. And since the central bank has a monopoly on the issuance of farts, and they lend each fart (which they don't have as a reserve anywhere) with immediate debt attached to it, where does the money come from to pay off this debt? It can only come back from the central bank, which means that the central bank has to continually increase its money supply to temporarily cover the outstanding debt that it created itself, and since that new money will also be loaned with interest, it is going to create! more debt! As Henry Ford said, if people knew this, there would be a revolution before dawn.

Do you understand why these guys are scared of decentralization and cryptocurrencies, and trying to discredit them by all means?

How can it be that they cheat on you so blatantly and you don't do anything? What are you going to say when your children find out about this embezzlement and they ask you "Dad, what did you do?"

Thomas Jefferson (1745-1826) said “I believe that banking institutions are more dangerous than an army. If the American people ever allow private banks to issue money, the banks and the corporations that will grow around them will deprive the people of their prosperity until their children wake up homeless on the continent their parents conquered."

How are vested interests paid for this sinister machine? With income tax. That is what you pay income tax for. If we consider an average income tax rate of 30%, it means that approximately a little more than three months of your work you give away to these people, because that money goes directly into the pockets of these "legal" and even respected operators.

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Image by Eric Perlin from Pixabay 

How can we defend ourselves against the central banks?

1) Pass our entire economy to the crypto sphere as soon as possible and deal with cryptocurrencies.

2) Barter. Fiat money is a debt for the central bank, and that every time you return a bill to the banking system, for example, by depositing it or buying something, what you are doing is a favor to the central bank, because you are "lightening" in that amount the debt that it contracted when issuing a promissory note. Well then, who wants to do some central bank a favor? Nobody, right? So you have to use as little money as possible. Also remember that the central bank issues with interest, and that interest is basically paid with the greatest horror play that politicians invented, which is the income tax. Therefore, the least amount of income tax would have to be paid for these guys to weaken. If you use money to pay for something, you are making money for someone else, generating income tax debt.

This has been resolved, with much more frequency and volume than you might imagine, with the beloved and never well-weighted barter.

In big cities it is very difficult to think about bartering. Everything is set up so that supermarkets develop by selling small fractions of food so that households have solved the problem of food. And transportation, and medicine, and education, and protection against cold or heat. All this is what is generically called "progress." Well, leaving the city and entering the countryside, bartering is a very frequent activity, which generates a large volume of operations.

The exchange of food, transport, cleaning services, medical services, garbage collection is common.

But slowly and progressively, several countries have already learned the trick of bartering. Not only in the countryside, but also in the cities it has been understood by professionals, artisans, and many home trades. The dentist changes his services for fitness, the doctor changes his services for organic vegetables, the plumber changes his services for accounting advice. And so, dear friends, you do not pay income tax or circulate money, that is, you get out of the system and you work in an anarchic way.

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Image by Lorri Lang from Pixabay 

 

With that said, let's move on to today's two tokens.

 

 

SNX

https://www.synthetix.io/

Ranking Coingecko #43

Synthetix (SNX) is a decentralized platform dedicated to creating synthetic securities.

What is a synthetic asset?

It is an asset that digitally represents another asset in the real world and that copies its movements. One can own "synthetic gold", this being a synthetic asset that exactly copies the movements of real gold. That is to say, one can take advantage of the movements of gold without having it, and therefore, without having the need to deal with issues of custody, maintenance, storage, and procedures related to the possession of the asset.

Synthetix is ​​a decentralized finance protocol or DeFi, which has been created to issue synthetic assets over the Ethereum network. These synthetic assets are guaranteed by the Synthetix Network Token (SNX), an ERC-20 token, which once blocked by the Synthetix contract, allows the issuance of synthetic assets within the platform. These Synths assets can represent anything and you have the ability to interact with them without the need for third parties. In this way, Synthetix can represent assets, stocks, fiat money, and commodities of all kinds.

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Source https://www.synthetix.io/

 

The Synthetix project started as Havven, a project devised by Kain Warwick. In December 2018, the project was renamed Synthetix.

The evolution of the project since then led Synthetix to be one of the largest projects in DeFi. Currently, Synthetix's market value exceeds $ 2 billion, making it clear that it is one of the largest DeFi projects in the ecosystem.

Each Synths created on the platform is supported by a system of guarantees, participation, inflation control, rates, and governance. This operation is very similar to MakerDAO and DAI. In MakerDAO we can use different tokens to create DAI. Well, the same thing happens in Synthetix, we can use several tokens to create SNX.

The operation of the oracles is vital for the operation of Synthetix since they are the means of connection between the real world, the represented assets, and the actions of the Synths on the platform. For example, if gold falls in price on the international market, the oracle will bring this information to Synthetix and cause the price of Synths sGOLD to drop in line with that of the international market. This oracle system in Synthetix is ​​provided by ChainLink (LINK).

The SNX token supports the issuance of up to 250 million tokens.

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SNX fulfills two very clear functions:

  1. It is used to create Synths, allowing to establish the participation, purchase, and earnings of a Synth. For this, the SNX tokens must be collateralized at a ratio of 750% (C-Ratio), or be invested in the platform as a stake that serves as a stabilizer.
  2. Allows you to establish a means of governance in the Synthetix DAO. SNX token holders can vote for Synthetix Improvement Proposals (SIP) and participate in the governance of the protocol.

To facilitate the process of creating SNX tokens, Synthetix has created a dApp called “Mintr” that allows users to mint Synths, using as collateral on deposit an amount of SNX tokens that obeys a 750% factor.

Every time a user interacts with Mintr to acquire Synths, the dApp makes a call to the Synthetics smart contract, and this is in charge of managing all the processes necessary to mint said Synths.

Participation when it comes to governance is limited, making it clear that Synthetix is ​​not a highly decentralized system. The design of the basic protocol, the configuration of the incentive parameters, and the development of the system are currently governed by the Synthetix Foundation, leaving such points outside the governance of the community.

Synthetix has a development control system very similar to that of projects such as Bitcoin and Ethereum. SIPs or Synthetix Improvements Proposals are open documents that describe the protocol standards and proposed updates. In these, anyone from the Synthetix community can participate and contribute their ideas and theories to improve the protocol.

Synthetix has created the Synthetix Exchange, a DEX that allows trading with Synths within the platform. It currently works with 5 different Synths categories:

  1. Fiat currencies: such as sUSD, sEUR and sJPY, among others.
  2. Commodities: synthetic gold, and synthetic silver.
  3. Cryptocurrencies: such as sBTC, sETH, and sBNB.
  4. Inverse cryptocurrencies: iBTC, iETH, and iBNB, which inversely follow the price of cryptocurrencies. In this way, for example, when the price of BTC increases, the price of iBTC decreases in the same proportion, and vice versa.
  5. Cryptocurrency indices: currently working with sDEFI / iDEFI, and sCEX / iCEX, which follow a basket of DEFI assets, and a basket of native DEX's tokens.
  6. Inverse cryptocurrency indices: currently working with iDEFI, and iCEX, which follow a basket of DEFI assets, and a basket of native DEX's tokens.

It also allows you to use these Synths (such as sETH and sUSD) to request loans from the exchange interface itself, and other functionalities such as the creation of liquidity pools that are connected to protocols such as Curve and Uniswap, that is, you can make operations of yield farming and liquidity mining from the Synthetix DEX.

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Source https://www.synthetix.io/

Conclusion. Synthetix is ​​definitely a gamechanger. It enables decentralized operations of assets that are normally handled in highly centralized venues. Unfortunately, decentralization is not complete, and the complexity of the smart contracts housed in the SNX ecosystem is for the time being alienates many small investors approaching the DeFi world. There are still centralization points in the Synthetix ecosystem. The defense of the developers against these criticisms is that given the complexity of the operations that the DEX allows, having central control points prevents any security problem from affecting the protocol for a long time, and at the same time allows solving these problems in a way faster and easier. However, Synthetix has many advantages to make it very attractive, and hope that its SNX token will be very valuable in the near future. The system always seeks to provide a high level of liquidity in the market and to do so with zero slippage. Another great advantage is the possibility of operating with assets that are normally not available to small investors, such as commodities. Anyone can operate synthetically with international markets, copying the price of assets that they would not otherwise be able to access, and without having to ask anyone for permission. This, which is a common feature in DeFi, is greatly enhanced in Synthetix. Definitely it worth have SNX in the portfolio, hoping DeFi becomes more and more friendly as we move closer to mass adoption.

 

 

 

FTT

https://ftx.com/

Ranking Coingecko #35

FTX is a cryptocurrency derivatives exchange backed by Alameda Research, a crypto liquidity provider trading company.

The exchange was launched in April 2019. In early 2020 it launched its daily and weekly Bitcoin binary options markets.

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Source https://ftx.com/

In November 2020, the exchange ventured into tokenized stock trading. Its partner CM-Equity guards the tokens redeemable for the underlying shares. You are allowed to buy fractions of a share, which is especially useful for high-priced stocks like Amazon ($ AMZN) and Google ($ GOOG).

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Source 

In December 2020, FTX continued to innovate with the launch of pre-IPO futures contracts for AirBNB and Coinbase. These contracts allow traders to speculate on the price at which these companies will go public. The exchange also offers thematic trading of products, including a basket of cannabis-related traded stocks. Recently, it launched a Wall Street Bets index, which includes GameStop ($ GME), Dogecoin (DOGE), and iShares Silver Trust ($ SLV).

The price of FTX Token (FTT) has doubled since early 2021.

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FTX buys back and burns 33% of all commissions generated by the exchange and 10% of its net additions from insurance funds. This process will continue until half of the initial 350 million offer is destroyed.

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Source https://ftx.com/

According to a December 20 announcement, Binance has made an equity investment in FTX and is taking a long-term position in the exchange's native asset, FTX Token (FTT).

In a statement, Binance CEO Changpeng Zhao noted the "astonishing growth" of FTX, adding that:

"With their background as professional traders, we see ourselves highly reflected in the FTX team and believe in their potential to become a major player in the crypto derivatives markets."

Currently, it appears that the market is valuing both tokens the same. Binance appears to be expanding its ecosystem through its decentralized exchange Binance Smart Chain, its blockchain project incubator, and a successful token launch pad. For its part, FTX is focused on being the market leader in derivative product innovation.

The rating agency TokenInsight published an “Exchange Token Valuation Report” where it found that, based on certain parameters, most of those tokens are “undervalued”. In this way, it concludes that these assets represent good investment opportunities at their current prices.

In their study, TokenInsight used certain metrics to assess the “target price” of assets, some of which are shown below:

  • Price to Earnings Ratio (P / E, Earnings Multiple)
  • Earnings Yield
  • Price / Earnings to Growth (PEG)
  • Price to Burn Ratio (P / Burn, Burning Multiple)
  • Burning Yield
  • MarketCap / Earnings
  • Implied Enterprise Value
  • Implied Enterprise Multiple
  • Network to Transaction Ratio

The main tokens analyzed were Binance Coin (BNB), Huobi Token (HT), OKEx Token (OKB), FTX Token (FTT), KuCoin Shares (KCS), and Leo Token (LEO). In addition, it also encompasses smaller cryptocurrencies, such as the HBTC Token (HBC) and BitMart Token (BMX).

Of the assets in question, only BMX and LEO were considered “overvalued”, while the rest presented a real price below the “target price”.

The team behind FTX is very interesting.

Sam Bankman-Fried, CEO and Founder. Before founding Alameda and then FTX, Sam was a trader on Jane Street Capital’s international ETF desk. He traded a variety of ETFs, futures, currencies, and equities, and designed their automated OTC trading system. He graduated from MIT with a degree in physics.

Nishad Singh, Head of Engineering. Prior to joining FTX, Nishad was a software engineer at Facebook where he worked on applied Machine Learning. He graduated summa cum laude from the University of California Berkeley with a bachelor's degree in Electrical Engineering and Computer Science.

 

Conclusion. There are several very attractive exchange tokens. As mass adoption begins to materialize, more and more people will be using exchanges, with the more advanced ones trading derivatives. FTT has great potential to grow a lot and become very strong. In the White Paper, the FTX team clearly says they have a lot of experience in being successful in very competitive markets. Textually “FTX was built with a lot of features to differentiate us from our competitors, but its greatest strength lies in the team behind it. We are confident that FTX has massive potential to rise to the top because we have proven time and time again our ability to enter a crowded market, disrupt the status quo and become one of the dominant players. We have consistently demonstrated our ability to innovate, execute and grow rapidly. These qualities have served us well in helping us stay one step ahead of the competition. There is enormous untapped potential in the derivatives market, and we are excited to repeat our success with FTX. We’d be ecstatic for investors and supporters to join us on this journey.” Several times I said that the most important thing in a project is the team. In this case, betting on FTT, in addition to betting on mass adoption, is betting on an aggressive and passionate team. That is tokenomics.

 

As usual, none of the things written in this post are financial advice and are not intended to replace personal research.

 

Thank you for reading!

 

If you have any questions or comments, please feel free to leave them down below

 

You can also contact me at gerardo.saporosi@gmail.com

Twitter https://twitter.com/SirGerardThe1st

LinkedIn https://www.linkedin.com/in/gerardosaporosi/

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SirGerardThe1st
SirGerardThe1st

Franchise veteran, Dapps developer, DeFi evangelizer, Bitcoin and Ether since a long time


Tokenomics
Tokenomics

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