Cardano Daily Discussion - May 16, 2023

Hello everyone,

Welcome to the Cardano Daily Discussion!

The standard sub rules apply here (see sidebar), with the exception that price discussion is allowed in this thread, though we encourage you to try not to make this the focus and talk about the project itself. Please ask questions, help others and be civil - be sure to get involved in Project Catalyst too!

If you're new, please make sure you're read through the newbies guide and share it with others (use the ?newbies comment command to reference it).

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⚠️ Scam Warning ⚠️

Please read the Cybersecurity guidelines for Cardano Users.

There are ongoing giveaway scams on youtube and many scammers lurking in Cardano's social channels impersonating ambassadors/moderators/official staff contacting users via direct messages.

For example, searching 'cardano' on youtube and sorting by most recent upload date shows several giveaway scams running (all videos in screenshot are scams):

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Ongoing 'giveaway' scams on Youtube

The youtube scams are automated; use stolen footage usually of Charles Hoskinson and are restreamed so to appear to be 'live'; appear to have many watchers (which are bots); use bought hacked channels and are edited to appear like official channels.

See this post for more examples of what they look like

Do not be fooled!

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To be clear:

• ⚠️ There is no such thing as a Cardano giveaway
• ⚠️ Never share your seed phrase with ANYONE
• ⚠️ Never send ADA to someone promising to send you more ADA back
• ⚠️ You will never be contacted by ambassadors/moderators/staff

Please report scams on the Cardano Fraud Detection Bureau.

⚠️ Scam Warning ⚠️

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Midnight Subreddit

In anticipation of Input Output's new data protection blockchain 'Midnight', I've managed to acquire r/Midnight through some negotiation and repurpose it for the Cardano Community (the sub was created for a card game back in 2011 but was mostly unused).

I decided to do this as I thought the project will eventually need a home on reddit and best to setup now before any scammers do. Obviously there's not much to post about on there right now as it's early days as the project is yet to be released, but if you'd like to be kept up to date on the project please feel free to join the new subreddit if the project interests you and I'll be sure to post updates as and when they become available.

Right now the sub is mostly a carbon copy of r/cardano, I've copied most of the automod and rules over, so certain aspects may seem a little incongruent atm, but I'll tailor and tweak the sub as we go. Feel free to send me or post any input if you want stuff to change.

Cheers all

While after each Halving we have had diminishing returns at the price, the total USD value settled on Bitcoin is about to breach $100 Trillion this Halving.

While we are basically all just waiting for the countdown to the next halving right now which will come in about exactly one year form now, it may be a good time-pass if we look at what may be awaiting us after the next Halving. Personally, I think I have already heard a hundred times about the “big“ bull market coming after the next Halving.

But that may just be one half of the story, I don‘t want to be bearish, but historically the returns for each bull market after the Halving have been diminishing, meaning they have gradually declined. Which is actually nothing bad at all.

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Market Cap increase per Halving

Here we can see the market cap growth from each Halving until the next one. While from 2016 to 2020 we had a 16x growth, this Halving epoch we are just having a 2.5x growth so far with one year remaining. This would logically mean that the next Halving will also cause a bit less extreme bull market, which makes sense as with a higher market cap way higher sums of money are needed to move the prices.

But there is one metric that has seen explosive growth throughout… the total amount of USD settled on the Bitcoin Network.

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Here the growth went from: $10B in the first Halving to $690B during the second, $12T during the last Halving epoch and we are standing at about $94T during this Halving. Which makes it clear that during the next Halving epoch we will have well over $100 Trillion dollars settled on the Bitcoin network. This is an unfathomable number.

This just happens to show that even if we are not seeing the same explosive bull markets for prices, the mass adoption is just accelerating even further and that metric is arguably even more important than any prices.

Bitcoin a top 3 asset in the event of US debt default: Survey

https://cointelegraph.com/news/bitcoin-top-3-asset-in-us-debt-default-survey

Last week's most important news

As we continue to navigate through the ever-evolving and dynamic world of cryptocurrencies, it's important to stay informed about the latest news and trends shaping the industry. We have compiled a weekly recap of the most significant developments, providing a comprehensive overview of the events that have recently stirred the crypto space.

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Bitcoin-based BRC-20 Tokens Exceed $900 Million in Market Value

The total market value of tokens created on Bitcoin using the Ordinals protocol has surpassed $900 million, with Ordi memecoin leading the pack. These Bitcoin-based tokens, known as BRC-20, are akin to Ethereum's ERC-20 tokens. The memecoin trend has significantly contributed to the surge, with Ordi's value soaring by 22,500% since April. It currently holds a fully diluted market cap of $525 million. Other Bitcoin-based meme assets follow Ordi, with market caps between $8 million and $20 million.

US Crypto Exchange Bittrex Files for Bankruptcy Amid Regulatory Pressure

Crypto exchange Bittrex has filed for bankruptcy in Delaware, months after revealing plans to cease US operations and following an SEC lawsuit. The exchange estimates both its liabilities and assets to range between $500 million and $1 billion. Earlier this year, Bittrex laid off 80 employees and announced its departure from the US, but it was sued by the SEC in April. The bankruptcy filing might complicate the exchange's fight against these charges. Despite the financial struggle, the company assured customers of a "100% like-kind cryptocurrency distribution" under its liquidation plan.

Litecoin Sees Record Transactions

As Bitcoin transaction fees surge due to the increasing popularity of BRC-20 tokens, Litecoin has seen a significant increase in transaction volumes, providing a more cost-effective alternative for crypto enthusiasts. On May 8, Litecoin processed over 525,000 transactions, nearly matching Bitcoin's daily count of 575,000, marking a fivefold increase since the start of the year. This shift is largely driven by congestion on the Bitcoin blockchain and high transaction fees, prompting users to seek alternatives like Litecoin.

US CPI Inflation Drops Slightly to 4.9% in April

The US Bureau of Labor Statistics has reported that the annual US inflation rate, represented by the Consumer Price Index (CPI), fell to 4.9% in April from 5% in March, missing market expectations. The core CPI inflation, excluding volatile food and energy prices, also fell slightly to 5.5% from the anticipated 5.6%. The USD experienced selling pressure following the report, with the US Dollar Index declining by 0.2% to 101.45, and the yield on the 10-year US Treasury bond dropping below 3.5%.

Binance Introduces 'Capital Connect' Platform for VIP Users

Binance has launched Capital Connect, a platform aimed at connecting VIP users with investment fund managers. The platform is a response to a growing demand from high-net-worth investors who are not interested in trading crypto themselves but want to invest their capital with active fund managers. Binance will not charge a fee for the platform, expecting to benefit indirectly as the fund managers use the exchange for their trading. Despite ongoing legal issues with U.S. regulators, Binance continues to serve its over 128 million customers and introduce new products and services.

In conclusion, the past week has witnessed a flurry of activity across the cryptocurrency spectrum. From the slip in Bitcoin prices to Ethereum's temporary transaction glitch, we've seen how intricate and unpredictable the crypto space can be. With the rise of BRC-20 tokens on Bitcoin's network and Bittrex's unfortunate bankruptcy filing, it's clear that the landscape continues to shift and evolve. Lastly, the surge in Litecoin transactions highlights the growing search for cost-effective alternatives amid increasing Bitcoin transaction costs.

These developments serve as a reminder of the importance of staying informed and adaptable in the fast-paced world of digital currencies. As we anticipate another exciting week ahead, we'll continue to keep you updated with the most relevant insights and analyses.

Thank you for your continued support and engagement.