Triaconta Weekly #233
The following topics will be addressed in this weekly:
- Bundle performance
- Winners & Losers
- Market overview
Capitulation is when there is selling at any price because all confidence seems to be gone in the market. It is often the tipping point in the market cycle after a long period of declines, a sharp rapid decline followed by an equally rapid but partial recovery. After a period of doubt, some hope then follows and confidence returns via relief and optimism as prices rise again. Triaconta has experienced this several times in the many years we have been serving clients in the crypto market. Long-term confidence for the growing adoption of blockchain and crypto currencies is still abundant with us, and this crisis will pass again as well. It does mean that at this very moment there are many opportunities but also high risks for new investments in crypto. As we see large differences in the price drops of various projects, it generally remains good advice to spread risk with a bundle.
1 Month: -14.32% | 7D: -22.34% | 24H: +4.51%
1 Month: -13.46% | 7D: -23.09% | 24H: +5.49%
1 Month: -14.10% | 7D: -23.12% | 24H: +4.64%
1 Month: -17.45% | 7D: -27.03% | 24H: +5.45%
Winners & Losers
There are only losers this week. Polygon (-9%) and Litecoin (-10%) have been the least affected by the crisis this week. On a monthly basis, we still see a big plus for these coins. The same is certainly true for Dogecoin with a remaining monthly gain of 39%. The biggest loser this week is Solana (-51%), which surrendered half its value mainly due to forced liquidations of loans using Solana as collateral. Also hit hard were a number of smaller projects such as former Pennystock bundle Reserve Rights (-40%) and Celer Network (-33%) and former DeFi bundle Ren (-44%) and Kyber Network (-37%). Automatic revision allows you to keep a bundle up to date without having to look at it.
Unfortunately, the biggest news this week was that the No. 4 crypto exchange FTX ran into payment problems and has now filed for bankruptcy. As a result of the LUNA crash, their investment arm Alameda was in trouble earlier and FTX had lent them too much money that they didn’t actually have themselves. Confidence is taking a huge dent and all prices are falling sharply. Several politicians are calling for more and stricter regulation but this should have been in place already and is something they themselves are responsible for. The lack of clear rules for this new financial sector means that 90% of the parties chose to settle in sanctuaries like the Bahamas or the Seychelles where there are few rules and so they cannot accidentally do something wrong that could cost them a lot of money. This is eventually going to change for the better but even in Europe, regulation of crypto is a very slow process.
Litecoin has turned 11 years old and in that time, according to the Litecoin Foundation, has processed more than 33 million transactions without any problems with a network that has always remained available 100% of the time. Litecoin is often forgotten alongside Bitcoin and Ethereum but saw more (+59%) new wallets created this year than the No. 1 and 2 in the market. The difficulty level for Litecoin miners also continues to rise to new heights indicating a healthy and growing network that is actually being used for payments. Recent collaborations with MoneyGram, Visa and Paypal and ongoing development mean Litecoin is likely to remain in the Top 30 for some time to come.
The low price and a new record high for Bitcoin mining difficulty are causing problems for current Bitcoin miners and opening up opportunities for a new group. Big oil companies could well become the miners of the future. Small gas bubbles appear to be profitable to exploit with a mobile Bitcoin mining rig. There is also increasing use of energy from gas flaring, a byproduct of the oil industry that is otherwise wasted, to do Bitcoin mining.
Polygon is working with Walt Disney and Marvel on Magical Metaverses and 3D digital collectibles like NFTs. Eventually, it should not only be possible to have adventures with your 3D figure in a Metaverse but also to place it in the digital version of the real world, for example, on Google maps. Everyone can then take a selfie while standing next to your own unique 3D figure. Soon we won’t even know from a group photo which people were really present at the party and which were virtual as life-size NFTs.