tl;dr
Japan is set to rock the markets with what they are calling a monetary policy tweak. Here is what is on my mind today.1. The Bank of Japan (BOJ) is considering changing its yield curve control policy, potentially causing market volatility. If implemented, this shift may lead Japanese investors to se...
Japan is set to rock the markets with what they are calling a monetary policy tweak. Here is what is on my mind today.
1. The Bank of Japan (BOJ) is considering changing its yield curve control policy, potentially causing market volatility. If implemented, this shift may lead Japanese investors to sell foreign assets, impacting US stocks, bonds, and cryptocurrencies. The timing is uncertain, but it could happen soon. Investors should be prepared for possible market fluctuations in the coming days. As you might imagine, this could also lead to volatility in the crypto market.
2. FTX and Genesis have settled disputes in their bankruptcy cases where Genesis is a debtor. The initial number FTX was claiming it was owed was $3.9B. This was later reduced to $2B. This may be good news as crypto exchange Gemini is embroiled in a lawsuit against Genesis for $1B in debt they say they are owed by the bankrupt Genesis. Gemini has brought fraud charges against the former lender alleging they wanted to close their EARN program in October 2022, but that Barry Silbert convinced them to keep the program going even though he was aware that Genesis was facing insolvency issues.
3. Way back on November 2nd, I told you about Project Guardian. A partnership between DBS Bank, JP Morgan, Polygon, Aave and Uniswap to test cross-border DeFi. As we all know, that project is quite successful. Well, Polygon has been selected by the Bank of Italy as they experiment with institutional DeFi. A lot of people Have been watching poor performance by MATIC this year. This should be proof that so much more is in the pipeline.
4. Sometimes I stop to take a gander at the whales are doing. One of the things they are doing is diving deeper into Shiba Inu as the project nears major announcements in August. Shiba Inu is far more than a memecoin. You don't achieve Top 20 status without putting the work in. I think August's announcements are going to move the needle for the project and may even shave a zero.
5. Something Cathie Wood said has caught my attention. More importantly, when I look at research, there is validity to her thought that Bitcoin is going to usher in monetary revolution. She points to a very overlooked fact. When the banking industry was wreaking havoc, Bitcoin went from $19K to $30 thousand.
6. In a letter to the SEC, Grayscale has requested the agency treat all of the Bitcoin spot ETF applications equally. Even going as far as saying they should approve them all simultaneously. At the very least, done in a fair and orderly manner. It is a rather bold move and executed, possibly, an ideal time as the regulator finds itself on its heels.
7. Citing market volatility, Sequoia Capita cuts their crypto fund by over 65% to $200M. The announcement was made earlier this year. So it is not a surprise to investors. The fund will be focusing on newer crypto startups following the downturn in the space and it takes less capital to get in at such early stages. I also believe they may be a tad more discerning as they continue to invest in the space. It comes down to managing risk.
8. I just told you yesterday about how Ripple is working with Palau to create a new stablecoin. Well, they are on a roll as they are eyeing a similar partnership with Montenegro. Ripple gave a workshop with the central bank of Montenegro, CBCG, where they presented 20 use cases. There is a lot going on at Ripple. I am expecting continued adoption of its XRP Ledger technology and a growth, in kind, of XRP.
9. The SEC is once again using fear as a cornerstone for compliance. The Chief Accountant of the agency is now emphasizing legal liabilities for accountants auditing crypto firms. This time they mentioned best practices, such as how firms onboard new clients.