Overview:
- Crowdloan Guide
- Infrastructure Bill FUD
- Terra UST trend
- Meme Coins
- SANDbox Alpha
Market Update
· Bitcoin (BTC) has broken a 19-day uptrend on the 4-hour charts and fell as low as 58.5K. BTC rejected this support by evidence of a long pin bar making a short rebound in price a possible scenario. Stochastic is in the oversold zone.
· Ethereum (ETH) has broken out of an uptrend that lasted for 45 days. It’s opening a chance to re-enter ETH, which has been one of the best performing Large Caps over the past 2 months. Institutions have been loading up on ETH and with all the ETH burning due to EIP- 1559 London hard-fork, this continues to be one of the best buys in crypto.
· Bitcoin Dominance is up .56%. Showing a modest money flow into Bitcoin from alts. In true fearful markets, dominance would fluctuate a lot higher. This is providing evidence that the downward price movement may only be temporary.
· Bitcoin margin liquidations hit 270M, in the largest shake-out since Sept 21. These fast shakeouts are commonplace in bull markets and are often needed. Expect there to be more if the market stays in a strong bull status.
· 3rd Largest whale address added 207 Bitcoins to their wallet at 62k.
Bitcoin Fear and Greed Index 71
Google Trends 41
Insight
The Infrastructure Bill signing yesterday was likely used as a catalyst to shake-out the over-leveraged and the less experienced.
The bill enters effect in 2023. Currently, an unofficial bipartisan committee is forming by senators to contest crypto-related amendments. This committee includes Senator Lummis, Senator Warner and many others. Click here to see what amendments were added to the bill which could cause damage to crypto adoption. In the long run, the infrastructure bill could prove to be bullish in nature, as some funds will inevitably sneak into the crypto market. In the worst-case scenario, we have nearly a year to start planning.
Yesterday’s drop may be the start to a larger pullback. There is still a lot of leverage in the market needs to be shaken out before any major up moves are to occur. The fear and greed index is slowly coming down but still remains in greed. It’s advised to hold off on major purchases until the dust has settled.
Decentralized Stablecoins, UST
The issuance of UST has been in a very strong uptrend and has doubled in the past 14 days.
Figure 1 UST Total Market Cap
This trend is developing faster than I had predicted. This may be because of the wider adoption of UST and/or all the protocols that are going live on the Terra Ecosystem. Either way, I recommend keeping a close eye. Here is a link to my older report with more information on how to profit off this trend.
Major News
· StarkWare, an Ethereum Layer 2, ZK-Rollup developer raises 50 million dollars in a Series C funding round and is now valued at 2 billion dollars. StarkWare is used in crypto projects such as dYdX, Sorare and Immutable. CEO Uri Kolodny refused to comment about a token release.
· Valkyrie is launching a $100 million hedge fund later this month. It will dynamically include exposure to 13 different blockchains, staking and 250 tokens.
Crowdloan Guide pt. 2
Here is part one of the guide which outlines the pros and cons of participating in a Crowdloan and why I believe it’s a great investment. Tomorrow I will talk about Moonbeam and Acala. One of these two will likely be the winner of the first auction. Both are great projects.
The Step-by-Step Guide
This will be a step-by-step guide with links to videos to aid in the process of contributing to Crowdloans. I recommend setting up this process and then making the final decision tomorrow for where to contribute your DOT.
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Buy some DOT token at an exchange. (Kraken, Coinbase Pro, Kucoin, Binance). If you need a guide to which exchange is best, here is a link to a past report on exchanges available to US customers.
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Open a Polkador.js Wallet. It’s about a 5-minute process. Here is a good video for guidance. Make sure you try your wallet on the Polkadot substrate. KEEP YOUR SEED PHRASE IN A SAFE AND SECURE PLACE!!
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Send DOT to your new Polkadot.js wallet. Remember to always test it by sending a small amount before you send all your funds.
In your exchange:
a. Go to the withdraw page.
b. Choose the correct asset (DOT).
c. Enter the Polkadot.js wallet address under Wallet.
d. Make sure to choose the correct network (DOT).
e. Enter in a small amount, 1 DOT.
f. Double-check everything, including the addresses before sending.
g. Press confirm.
h. Wait a few minutes and check your Polkadot.js wallet for the balance.
i. If successful, restart the list and send a larger balance.
- In the Polkadot Substrate
a. Make sure you are in the Polkadot substrate and not the Kusama Substrate. Switch it in the left-hand corner of the screen if you are.
b. Go to accounts tab and make sure your wallet connects to the network.
c. Then go to the Network tab. Under the network tab, go to the Crowdloan tab.
d. The projects are below with a “+ Contribute” to the left of them. Press this to contribute.
e. A confirmation screen will come up with the amount you would like to contribute. Enter the amount and press contribute.
f. DONE! You are now contributed to the Crowdloan. 96 Weeks later your will reap the rewards.
Here is a video of the entire process made by Polkadot if you need further guidance.
Notable Events
· Sandbox unveils Sandbox Alpha, giving users the first chance to explore the Sandbox metaverse. The play-to-earn event will start Nov 29. Information on how to participate.
· Polkabridge (PBR). This red-hot token will be listed today on Kucoin at 0800 UTC.
NOOBIE lesson of the day
MEME Coins
I often hear about people that are new to the space, talking about meme coins such as DOGE and SHIBA INU. Many highly experienced people in crypto are strongly against them. I personally am not. They’re a fun and easy to understand a gateway into a complicated arena. There’s also no denying that some of them have strong communities and Dogecoin is going to the moon. That’s pretty cool.
Now that being said, I don’t believe meme coins are the best investments and I will outline a few of the reasons. Many cryptos serve a technical utility. They are part of a utility network and if you own the token, you own part of the network. The more a network is utilized, the more value the network gains. Tokens serve to provide liquidity, secure validators, transfer information and many other things.
Meme coins on the other hand often don’t serve much technical utility. They are mostly community driven. Community can be a strong driver but it’s usually not a consistent one. It creates lots of volatility in price and relies on many outside factors such as celebrity shills. Many of these tokens are not very well distributed, where a few people on the top own a large majority. Those people have a lot of incentive to keep promoting the project. You can look here and see that one Doge wallet owns 28% of all Dogecoin and the top 20 addresses own close to 50%.
Don’t get me wrong, I’m not trying to kill the fun. I think meme tokens serve a great purpose but if I had to choose crypto based of utility, meme coins would be near the bottom of the list. If you decide to buy meme coins, I always recommend use only a portion of your portfolio. Think of them as a high risk/high reward situation.
Tomorrow
· Alcala and Moonbeam overview
· “Buy the dip” trade set-up
Hope you guys/gals enjoyed today’s report. Thanks for reading. PM me your email if you would like to receive the FULL report to your email.
TraderGabi
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