Most commentators predicted a big correction in January and they weren’t wrong. The overall market has fallen by 15% since January with Bitcoin and Ethereum down 40% from their ATHs in November. The recent 26% collapse in the stock price of Meta, formerly Facebook, saw a knock on effect in the blockchain metaverse world. Some say they don’t see the market falling much further. We don’t agree. In the short term any bad news will have a disproportionate effect on valuations with good news having little impact. Hang in there. The good times will be back. As always it will be the resilient amongst us who will be the winners.
- The most anticipated news in the crypto community is the Executive Order Biden is expected to announce imminently. The reason for the order has been cited as ’for national security’. Speculation as to the contents of the order ranges from a ban on stablecoins to a ban on mining. The consensus is an order to compel competing agencies to cooperate to bring regulatory clarity to crypto.
- OpenSea, the leading NFT marketplace, exceeded $3.5 billion in monthly trading volume which eclipsed the all time high of $3.4 million achieved in August 2021.
- Animoca Brands, The company behind leading metaverse platform The Sandbox, raised $350 million valuing it at $5 billion. It just goes to show you that the smart money is being invested in the companies behind projects rather than in tokens.
- It is often assumed that the proceeds from the sale of virtual land in the various metaverse’s vying for investors’ attention flows back to token holders. In most cases this isn’t the case. In the best case scenario sale proceeds end up in the treasury which are then used to invest in the project. However in the majority of cases funds flow to the company behind the project. Investors should check before investing in any metaverse land based project as this clearly demonstrates the intentions of the project owner and whether token holders are valued or not.
- According to JP Morgan, Ethereum is losing market share to rivals like Solana when it comes to NFTs. Ethereum’s volume share fell from 95% at the beginning of 2021 to 80% as the high gas fees continue to weigh on the platform.
- The Bank of Russia called for a full ban on crypto. However this outcome seems unlikely as the government encourages bitcoin mining after the exit of China from the space.
- Talking about banning crypto, India has opted to tax rather than ban crypto and have announced the introduction of a central bank digital currency. At least that brings certainty to the biggest democracy in the world where the growth in crypto adoption is exploding.
- Crypto.com says that hackers stole nearly $34 million from users. However they were quick to make good investor’s losses.
- Google is getting into crypto. As part of this drive Google Pay users will be able to store their crypto assets on digital cards which can then be converted into fiat whenever a purchase is made.
- The Federal Reserve published a 40 page white paper discussing a US CBDC. Whilst this paper is only exploratory it is a sign that the initiative is under consideration.
- Meta formerly known as Facebook canned its cryptocurrency dreams by selling its intellectual property to the crypto bank Silvergate.
- One concern crypto naysayers often cite is the threat from quantum computers. Researchers at the University of Sussed think today’s quantum computing power is still millions of times too weak to hack bitcoin. They believe this will continue to be the case in most of our lifetimes.
- January saw its fair share of rug pulls. One rugpull was a project called Doodled Dragons. Part of their pitch was that they would donate money to the WWF. Shortly after the rugpull the head scammer tweeted, ‘actually, fuck that, our charity will instead be… my bank account. Cya nerds.’ There is a special place in hell reserved for people like that.
Inside Track Podcasts
We continue to build our library of interesting content from emerging projects and technologies in the blockchain space. Inside Track is the best way to learn about cryptocurrency from experts in the field as well as discover emerging projects from NFTs to DeFi, from memecoins to launchpads.
This month we produced the following Inside Track podcasts;
- ICHI — the stablecoin platform who announced the launch of its Angel Vault.
- RUG — the web 3.0 development agency.
- Pixelmatic — the game design studio behind Infinite Fleet.
Listen to Inside Podcasts here
The Launch of the Moonshot Incubator
WANTED: Advisors, Mentors and Investors
We are launching an incubator to help crypto talent develop and launch their ideas. We are looking for advisors, mentors and founder investors who are interested in acting as a sounding board for exciting new crypto projects.
You will need to be experienced in the crypto market and willing to invest risk capital into the projects which we present to you assuming you find them enticing of course.
You will get to see investments early and have an opportunity to invest in the project prior to a listing.
For Advisors, Mentors and Investors
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Not Financial Advice
This article does not constitute financial advice or a recommendation to buy in any way. Always do your own research and never invest more than you can afford to lose. Investing in cryptocurrencies is high risk, and you could lose 100% of your investment. The article should be treated as supplementary information to add to your existing knowledge.