Latest News in the Cryptocurrency and Investment World
For those of us who are avid market watchers then June would have given you a few sleepless nights. Bitcoin saw its price fall by 8% and Ether 18%. However the last week has seen some much needed confidence return to the market with Bitcoin up 8% and Ether up 21%. Although the Fear and Greed index suggests the market is still in a state of ‘extreme fear’ there seems to be a feeling of positivity returning to the market in the form of more institutions and funds investing in cryptocurrency and frenzied development. There continues to be many quality projects trading at a substantial discount to their all time highs. We still believe this presents a perfect buying opportunity whilst there is still blood on the streets.
Here are three market wisdoms for you to ponder on:
- To make money in the market you have either to be ahead of the crowd or very sure they are going in the same direction for some time.
- Accepting losses is the most important single investment device to insure safety of capital.
- Willingness and ability to hold funds uninvested while awaiting real opportunities is a key to success in the battle for investment survival.
Mark Cuban comes unstuck
Cuban was a significant investor in the stable coin platform Iron Finance which experienced a ‘bank run’ when a few large token holders started selling. The mechanisms the project team had in place for such an eventuality failed to stop the stable coin plummeting to zero.
Meanwhile Mr. Wonderful enters the DeFi space
Cuban’s Shark Tank colleague Kevin O’Leary, aka Mr. Wonderful, also announced his investment in a new DeFi platform which was named after the star of the show, WonderFi. The platform is meant to open up DeFi to the masses by making it easy to stake, lend and borrow. There is merit in the idea as there is a definite need to simplify the DeFi experience.
First regulated DeFi platform launches
It claims to be the first regulated DeFi app in the world. Swarm Markets is regulated in Germany and announced it is onboarding users to its liquidity provider program.
El Salvador adopts Bitcoin
The Government of El Salvador passed a law to make Bitcoin legal tender. Whilst not significant in isolation it could lead to other countries following suit. There is already talk of Columbia, Paraguay and Argentina making bitcoin legal tender. Whilst the World Bank was not supportive of El Salvador’s move, you wouldn’t expect anything less.
Dogecoin took a tumble
The king of memecoins took a tumble falling to $0.18 after starting the month at $0.32. But Dogecoin is nothing but resilient clawing its way back to $0.25. Musk has been busily announcing his support of proposals to reduce transaction costs which has helped stabilize the price.
McAfee hangs himself in Spanish jail
The cyber security entrepreneur and crypto pump and dumper McAfee allegedly hanged himself in a Spanish jail after being told by the Spanish court that he was to be extradited back to the US to face multiple criminal charges ranging from money laundering to tax evasion. You can read our own take on McAfee’s contribution to the crypto community and the lessons we can all learn from his pump and dump schemes here.
More crypto exploits
SafeDollar turned out to be not so safe when the stable coin operator experienced a hack that saw its value fall to zero.
Haven the privacy coin, a project which we have featured on our Micro Cap Watch list, experienced an exploit of its own when a malicious user stole $1 million of its currency. The Haven team is advising people not to buy XHV until it has completed its fork to deploy the fix.
Binance has had more problems recently. The UK regulator forbade it from doing business in Britain. Next up it withdrew from its largest market in Canada. Then Japan complained that it was conducting unauthorized business and finally the Cayman Islands in which Binance is registered announced it was investigating whether Binance should in fact be carrying on crypto business from there in the first place.
The Internet Computer (ICP)
They claim to have reinvented the internet. Until May 10th 2021 the average crypto investor hadn’t even heard of ICP, four days later they had sped past most of the old guard and became the fourth most valuable cryptocurrency in the world. From nothing to nearly $90 billion. However, since this auspicious start the project lost 95% of its value when rumors spread that the founders had dumped $6 billion worth of tokens. The project still has a fully diluted market cap of $22 billion. We believe this project is grossly overvalued, has lost its credibility and should be avoided.
Crypto exchange complaints rise
According to the Consumer Financial Protection Bureau in the US the number of complaints against cryptocurrency exchanges is rising. Top of the list is Coinbase. Complaints include domestic and international money transfers, digital wallets and foriegn currency exchange. This isn’t news for the many of us who experience appalling customer service at the hands of crypto exchanges.
Robinhood aims to list
Robinhood the stock and crypto trading app has published its IPO prospectus prior to a listing. The most revealing facts to come out was the fact that crypto accounted for 17% of its revenues which was still 20 times smaller than its rival Coinbase. Another interesting fact was that 34% of its crypto business was attributed to trading in Dogecoin.
Staking and Yield Farming
We launched our weekly Staking and Yield Farming guide. Each week we will be providing the latest APRs from leading staking and yield farming platforms together with news from the industry.
Staking and yield farming has been a major driver in the huge growth in the DeFi sector. Investors are being enticed by the massive APRs on offer. Totally new projects tempting investors with returns of 10,000+ % are able to attract a deluge of money from investors who don’t seem concerned with the high risks involved. This weekly review aims to look at the best platforms out there and the ones to avoid. We attempt to weed out the platforms that we think won’t stand the test of time.
Liquidity mining is here to stay. Our challenge is picking the winners from the losers. However a credible platform does not protect against the risk of a cyber attack or market risk. Cyber attacks or poor code are common in this space with Safe Dollar, Iron Finance and Pancake Bunny all being recent victims. No platform is totally safe. However as the market evolves investors will be able to insure themselves against these kinds of risks but that is something for the future, we are stuck with each other for now.
- You can read our in depth report on staking and yield farming here.
- View our Table of Staking and Yield Farming APRs here.
New Inside Track Podcasts
We have been busy finding you great content presented by leaders in their field. Our Inside Track library now numbers over 20 podcasts from crypto influencers talking about subjects as diverse as memecoins to taxation including DeFi, decentralized exchanges and IDOs. You name it, we cover it. Take a look at our current library here.
Our latest addition to our library over the last month include the following topics:
Beholder — an indepth look at DeFi.
Shield Finance — a fascinating look at the crypto insurance market and why Shield is taking a different path than many of the platforms entering this space.
ChainGuardians — an insight into gaming on the blockchain and how this is likely to take over from online gaming.
Some other great projects you may be interested in include Yield App, NewsCrypto, Chihua Token, PLOTX and Handshake.
These are bite sized discussions so don’t worry about having to set aside a whole afternoon…
Listen to Inside Track podcasts here.
A Few Articles That You Don’t Want To Miss
Below are a few of the articles we published last month which you may like to catch up on.
- Five cryptocurrencies worth buying whilst the market slump continues
- Crypto Moonshots in the Polygon Ecosystem
- Identifying the most fertile crypto forums
- Are we in a dip, a bear market or something else?
- Is Binance in the US Government’s line of fire?
- Does crypto farming and staking stack up?
This month we held our first AMA on our Telegram channel with the founder of Candela Coin. This was a great success and we plan to hold many more. Please follow us herefor great ideas and discussion without the constant shilling.
Essential Risk Warnings
- We do not own any of the cryptocurrencies which we discuss.
- Our publications do not represent financial advice.
- Discussion of a particular cryptocurrency does not constitute a recommendation to buy.
- Always do your own research.
- Seek independent financial advice.
- Only invest what you can afford to lose.
- Remember cryptocurrencies and in particular smaller cryptocurrencies are extremely volatile. You could lose 100% of your investment.
Join our Telegram channel here.
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.