tl;dr
• FOMC 25bp and dovish comments• Coinbase tries to quietly back away from NFT creator drops to focus on tools and features; uh huh• Cherokee Acquisition is offering investors a way to protect against major exchanges locking up their assets• Meta's Metaverse division loses over $13.7B, but stock stil...
• FOMC 25bp and dovish comments
• Coinbase tries to quietly back away from NFT creator drops to focus on tools and features; uh huh
• Cherokee Acquisition is offering investors a way to protect against major exchanges locking up their assets
• Meta's Metaverse division loses over $13.7B, but stock still rises
• Polygon has been rising on a lot of news and Shiba Inu is learning from their playbook
• Bittrex (21%) and Chainalysis (4%) have layoffs but I only question the future of Bittrex
• The unauthorized SEC may be called onto the carpet over recent failures like FTX
• Berkshire Hathaway's Charlie Munger is still yapping about how crypto equates to gambling contracts
Coinbase pivots away from NFT drops and Meta loses $13.7B, but still rises. Here is what is on my mind today.
1. Remember when Coinbase was doing NFT creator drops? Yeah, I didn't think so. It never really took off. So they seem to be quietly shutting it down to focus on "tools and features". Hey, you never know unless you try. Simple as that.
2. If you understand options trading, then Cherokee Acquisition may have something for you. They are offering "put options" to protect investments on Binance, Coinbase and Kraken. Through some sort of mathematics, they say they can allow account holders to recover 100% of their assets in the event the those exchanges were to file for bankruptcy and wind up locking customer assets. I would have to do a lot more research since what they are calling them is not quite what they are, but seem to mimic what a traditional put does.
3. I really do laugh out loud every time I hear about Zuckerberg's play to define and control the Metaverse. 2022 was not his year as Meta's Metaverse division lost over $13.7B. It just doesn't work like that buddy.
4. I know you guys are getting sick of me harping on Polygon, but I just want you to look at where they were just a few of weeks ago and where the project is now. Then I want you to look at the news surrounding it. Then I want you to recall how news works. That ought to paint you a clear picture about why I am so hot on the project and why that sentiment carries over to Shiba Inu and how they are mimicking that playbook.
5. Crypto exchange, Bittrex, is laying off 84 people. Do you remember what I said just yesterday about layoffs? Just about any number under 10% is just an operational adjustment and can be used to demonstrate effective management to investors. When hit 20+%, you are looking at a company that is most likely experiencing solvency problems Laying off over 21% of its staff, I think Bittrex is in that latter bucket. Crypto analytics firm, Chainalysis, is dropping 44 people. This represents about 4.8% of their existing staff. They would be in the prior bucket. This is the perfect example of what I am trying to teach.
6. The SEC has a dirty little secret: they have not been reauthorized since 2015. On top of that, they agency is being scrutinized by members of the incoming Financial Services Committee who are probing the agency. I would not be surprised to see Gary Gensler called onto the carpet to discuss his latest failures, including FTX.
7. Why does Charlie Munger continue to run his mouth about crypto? The veteran Berkshire Hathaway investor continues to give the industry a bad rap. Clearly, the man is smart and understands business and stocks. That said, I have yet to hear him give a realistic reason behind his constant degrading of the industry. I hear him say a lot of things, but never a truly clear reason why he thinks everyone, including the folks at BlackRock, Fidelity, Goldman Sachs, etc. have it wrong.