Green Tea & Digital Assets Weekly Round Up (May 22, 2022)

Green Tea & Digital Assets Weekly Round Up (May 22, 2022)

A weekly newsletter on actionable digital asset market insights and practical observations with a smidgen of greentea 🍡 insights

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πŸ“– Book of the Month πŸ“–

This month let's add a new book that is very interesting and financial history of the world during the gold standard era from the 1920's and 1930s. I am reading this book because it is a great view into what a changing monetary system looked like during that era and the divergences that central banks had in an every man or woman for themselves period of transition. If you are reading along or listening drop me a note on Twitter or email!

Listen to: The Lords of Finance For Free with Audible. Link

πŸ’­βœπŸΌ Food For Thought πŸ’­ ✍🏼

Surprise, surprise - Link

The more rates rise, the faster they rise the more likely we are to experience some sort of shock (to the extent we are not already shocked by inflation) Link

As we close out this section I leave you with this good article from the Economist's current issue. Elon Musk Acolytes, don't be "triggered" Β Link

πŸ’Έ Companies and Deals I am Watching Closely πŸ’Έ

1. Elwood Technologies, a crypto trading platform, raised $70mm from Goldman Sachs, Barclays, Dawn Capital and others. - Link

2. Japanese bank SBI Holdings has purchased a controlling stake in BITPoint Japan, a crypto trading platform, for $99 million. - Link

3. a16z is launching their first gaming focused fund with $600m in commitments. - Link

πŸ“– Quote of the Week πŸ“–:

β€œThe snake which cannot cast its skin has to die. As well the minds which are prevented from changing their opinions; they cease to be mind.” ― Β Friedrich Nietzsche

πŸ“– Book of the Month πŸ“–

This month let's add a new book that is very interesting and financial history of the world during the gold standard era from the 1920's and 1930s. I am reading this book because it is a great view into what a changing monetary system looked like during that era and the divergences that central banks had in an every man or woman for themselves period of transition. If you are reading along or listening drop me a note on Twitter or email!

caption for image

Listen to: The Lords of Finance For Free with Audible. Link

πŸ’­βœπŸΌ Food For Thought πŸ’­ ✍🏼

Surprise, surprise - Link

caption for image

The more rates rise, the faster they rise the more likely we are to experience some sort of shock (to the extent we are not already shocked by inflation) Link

caption for image

As we close out this section I leave you with this good article from the Economist's current issue. Elon Musk Acolytes, don't be "triggered" Β Link

caption for image

πŸ’Έ Companies and Deals I am Watching Closely πŸ’Έ

1. Elwood Technologies, a crypto trading platform, raised $70mm from Goldman Sachs, Barclays, Dawn Capital and others. - Link

2. Japanese bank SBI Holdings has purchased a controlling stake in BITPoint Japan, a crypto trading platform, for $99 million. - Link

3. a16z is launching their first gaming focused fund with $600m in commitments. - Link

πŸ“– Quote of the Week πŸ“–:

β€œThe snake which cannot cast its skin has to die. As well the minds which are prevented from changing their opinions; they cease to be mind.” ― Β Friedrich Nietzsche

πŸ“° This Weeks Most Interesting Digital Asset News πŸ“°:

1. Β  Β  Enterprise-grade Liquid Staking Standard with Support of Coinbase Cloud and Figment - Link

2. Β  Β Terraform Labs’ legal team resigns after UST collapse - Link

3. Β  Β  Robinhood developing non-custodial crypto wallet launching later this year - Link

4. Β  Β  Biden Administration Wants Crypto Exchanges to Separate Customer and Corporate Funds - Link

5. Β  Β  Hashed Wallet Takes $3.5B Hit, Delphi Digital Discloses Loss After Terra's LUNA Collapse - Link

6. Β  Β  Cloudflare announced web3 initiatives, Β will run full Ethereum validator nodes. - Link

πŸ“ˆ Top 10 Market Movements by Market Cap over the last 7 days πŸ“‰:

Bitcoin: Price OHLC

You can see above that Bitcoin has not broken above the $48k amount in 2022. I continue to remain bearish short term but I am keeping an eye Bitcoin and I think I will be moving my time horizon out to the end of 2022. What I am really looking for is some evidence of a monetary policy shift from the Fed but we are not there yet.

Bitcoin: HODL Wave

The chart shows the bundle of all active supply age bands for Bitcoin, aka HODL waves. Each colored band shows the percentage of Bitcoin in existence that was last moved within the time period denoted in the legend. Β We still have more to go. I personally think BTC will go back toward $15,000.

Bitcoin: Net Realized Profit/Loss Ratio

Net Realized Profit/Loss Ratio is the ratio between realized profit and realized loss. As you can see above the majority that have sold as at a loss on a "net" basis on the lows this prior week.

Ethereum: Price OHLC

OHLC is the Open, High, Low and Close price. ETH is still chopping around just like Bitcoin above and you can see here it is off the highs of the prior weeks and also down the the year of 2022.

USD Coin: Circulating Supply

Given the Luna fiasco, let's take a look at the growth in USDC which is backed 1:1 versus USD with cash in a trusted custodian and regulated by the NY Department of Financial Services. A key comment, to paraphrase, from Jim Bianco I came across this week what that "if the government owns the currency, they own your protocol and will regulate it". This is a key problem that DeFI will have to find a way solve. Long term, I agree with this comment--there is no way to have truly decentralized finance as long as the comment remains true.

Total Value Locked (USD) in DeFI

Since the Luna blowup we can see basically no change from last week which was $56 Billion TVL.

As a reminder TVL means "Total Value Locked". This refers to people taking ETH based tokens or other tokens and "locking" them in DeFI protocols to lend, generate yields and otherwise earn excess returns.

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Green Tea Tidbits:

The scientific name for green tea is Camellia Sinensis.

Disclaimer:

This Newsletter does not provide, and no portion of this content purports to be, individualized or specific investment advice and I do not provide investment advice. Β All information provided herein is general in nature and is made without regard to individual levels of sophistication or investment experience, investment preferences, objectives or risk parameters and without regard to the suitability of the content for individuals or entities who may access it.

No information provided herein, should be construed as an offer to sell, or a solicitation of an offer to buy any security or investment vehicle, nor should it be construed as tailored or specific to you, or any reader or consumer thereof. You understand and agree that the content does not constitute specific recommendations of any particular investment, security, portfolio, transaction or strategy, nor does it recommend any specific course of action is suitable for any specific person or entity or group of persons or entities.

The content herein is based upon information from sources believed to be reliable and I am Β not responsible for errors, inaccuracies or omissions of information; nor is it responsible for the accuracy or authenticity of the information upon which I rely. For informational purposes only. Do your own research.

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