🚀 Going In Circles
"You Either Crank This World Or It Cranks You" - Soulja Boy
May 31st | Sign Up
Happy Memorial Day. We’ll let you get your BBQ on, this will be a quick one.
Price Check 📉
⬇️ Bitcoin: $36,875.43 (+3.0%)
🩸 Ethereum: $2,554.46 (+5.7%)
🩸 Dogecoin: $0.312199 (+2.2%)
🩸 SushiSwap: $11.68 (+7.2%)
⬇️ Polygon: $1.88 (-0.9%)
⬇️ Nasdaq: $13,748.74 (+0.09%)
Prices as of 2 AM EST 5/28, data from Coingecko, Yahoo
Markets: Crypto gets a slight relief bounce over the weekend going into Memorial Day. Stocks are closed today, go outside.
Covid: American and Southwest Airlines have postponed plans to resume serving alcohol on flights due to a recent surge of unruly behavior aboard flights.
Circle SPAC? 💳
Circle Pay, one of the companies behind US Dollar stablecoin, USDC, completed a $440 million funding round last week. That number is among the top 10 in private fintech investments, in case you thought that was business-as-usual.
The company is private, unlike its partner Coinbase, so it isn’t obligated to disclose what it intends to do with the funds, but it is rumored that the company has its eyes on going public with a SPAC, or Special Purpose Acquisition Company. SPAC’s are basically “blank check” companies that can fast-track an IPO because the company being acquired by the SPAC is not disclosed, avoiding some paperwork, while protecting against swings in market sentiment. And we all know how the general public feels about crypto. 😕
Big names in the funding round included:
Investment Firm Fidelity
Cryptocurrency exchange FTX
Digital Currency Group, owner of Grayscale Investments and crypto-blog Coindesk
UK Hedge Fund Marshall Wace
Cross-border Venture Capitalist firm Valor Capital
Carbon Offsetting Crypto Trees 🌳
NFT project Crypto Trunks is committed to changing the reputation of NFTs with carbon offsets. The project aims to be not only carbon neutral, but carbon negative. Collaborating with Offestra, the NFT project has offset over 5,200,000 KG of CO2.
The offset is achieved through a reforestation program in the Cayo district of Belize—The Bull Run Project. The Bull Run project is designed to protect 4,650 hectares
(11,490 acres) of tropical pine forests, grasslands, and mature humid broadleaf forests.
That amount of CO2 offset equates to:
3,471 transatlantic flights
12,108 barrels of oil
267,414 Ethereum transactions
Bitcoin vs Ethereum 🥊
One buzzword that you’ve probably heard throughout your crypto journey is maximalism, which is the idea that, in the end, only one cryptocurrency or blockchain will come out on top and all others will be rendered useless. In today’s crypto environment, you probably lean towards falling into one of three camps. Bitcoin-maximalist, Ethereum-maximalist, or Ethereum killers.
Bitcoin maxis believe that Bitcoin will be the only digital asset that is needed or will have any use in the future. Their main talking point is that other cryptocurrencies are inferior, and to the ETH maxis they say anything done on Ethereum can be done on Bitcoin. Zoomer Money says—not likely. OG Bitcoiners and some folks crossing over from traditional finance are some examples of the type.
The Ethereum maxi camp is mostly made up of early DeFi adopters and NFT enthusiasts. Ethereum’s biggest competitor is Binance Smart Chain (BSC), and the two networks are in a contentious fight to come out on top as the leading network for Decentralized Finance. Ethereum maxis are in favor of Ethereum due to BSC’s centralized nature. Binance owns and operates all the nodes that keep their smart chain network running, therefore Binance could theoretically shut them down at any time. ETH maxis cite this single point of failure, the lack of quality projects, and frequent hacks as their main deterrents from BSC.
The third camp is mostly made up of newcomers, younger investors, and those who started investing in 2020 or 2021 who were attracted by the cheaper transaction fees of ecosystems like Binance Smart Chain and Solana. The much lower barrier to entry (when compared to the Ethereum network) allowed those with less capital at hand to start investing in crypto. We all started somewhere!
Members of this camp claim these projects improve on the technology of smart contracts and predict a Myspace or Napster-type extinction situation for Ethereum. Critics of this camp and its coin projects cite a lack of decentralization, security risks, or no working products released. Cough cough…. Cardano
One could make the argument that there’s a 4th camp of people called Profit Maximalists, who have no interest in trying to pick the winning technology. Profit Maxis would rather allocate their portfolio to what is performing best, regardless of that asset’s fundamentals. The saying goes something like: do you want to make money, or do you want to be right?
Who is right?
Being as objective as possible, the short answer is: it’s too early to tell. With cryptocurrency and Decentralized Finance in their infancy, the “race” has just started. Another important note is that not everyone sees it as a race, and believes that multiple different cryptocurrencies and blockchains can co-exist together. This is where we stand at Zoomer Money. While the Ethereum ecosystem is what we are currently most excited about, we believe maximalism is a ultimately a flawed vision of cryptocurrency.
The Wrath of the SEC 🤧
The SEC has now officially charged 5 individuals for their involvement in the Crypto platform Bitconnect violating the registration provisions of federal securities laws. According to the complaint, the promoters received a total of $2B in commissions based on a false promise of 40% returns.
We allege that these defendants unlawfully sold unregistered digital asset securities by actively promoting the Bitconnect lending program to retail investors,
said Lara Shalov Mehraban, associate regional director of SEC’s New York office.
The SEC is giving the promoters a chance to give back the money they made and to pay civil monetary penalties.
Small Bitez 📰
Users of smart contract platform Tezos (think ETH killer) Sue IRS over crypto tax staking rules
BSC DeFi protocol Burgerswap gets hacked for over $7.2 million
Maharashtra government partners with blockchain startup Print2Block to issue COVID-19 test certificates
The Bitcoin sponsored car led for 32 laps in the Indy 500 yesterday, finishing in 8th place
Joe Exotic launches tiger king cryptocurrency ($TKING), says NFT’s are planned to help pay for his legal fees
Crank That Clout 🕺
Perhaps the most entertaining subplot of this bull-run has been Soulja Boy’s hilarious attempts to enter into the crypto industry. Soulja’s fumbled endeavors to take part in the community and his promotion of dubious projects have made him a target for the Crypto Twitter folks, who hurl memes and sarcastic remarks at him every time he tweets. Some have made the observation that he spent all his “Crank That” money and is (desperately) looking for the next opportunity, but it appears to be at the expense of the crypto industry.
Soulja’s most recent and maybe biggest slip-up was a now-deleted tweet where he promoted an obscure token and accidentally copy and pasted the email from the project in the tweet, detailing his compensation.
Crypto veterans describe what’s going on with Soulja Boy and other celebrities as a top signal. Which is an event or recurring set of events, big or small, that causes a current bull run to end, or “top” out and begin a downward trend. Seasoned investors get nervous when new and inexperienced entrants frivolously enter the market to chase fame and money and promote scammy projects. Cryptocurrency can change the world, but if you’re only in it for more dollars, you’re in it for the wrong reason. 😉
TLDR; The crypto community has been cyberbullying Soulja Boy, but the one-hit-wonder rapper brought it upon himself.
Thanks for reading! 👋
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