EddieJayonCrypto

 28 Dec 22

tl;dr

• Crypto stocks Coinbase, MicroStrategy and Robinhood each take a nosedive• Galaxy Digital snatches up a crypto mining facility from Argo Blockchain• Kraken calls it quits in Japan• PYMNTS report says 35% of tech-savvy consumers prefer crypto-friendly businesses• Solana's continue problems could lea...

• Crypto stocks Coinbase, MicroStrategy and Robinhood each take a nosedive
• Galaxy Digital snatches up a crypto mining facility from Argo Blockchain
• Kraken calls it quits in Japan
• PYMNTS report says 35% of tech-savvy consumers prefer crypto-friendly businesses
• Solana's continue problems could lead to big opportunities for projects like Polygon
• Gemini is staring down the barrel of a class action lawsuit, but should they be afraid is the question

With stock volumes so low you are going to wind up seeing big swings, while most of crypto holds steady. Here is what is on my mind today

1. Coinbase, MicroStrategy and Robinhood are each getting hammered. With no real news, I have to think it is simply end of year maneuvers that are driving the crypto-related stocks down. I think you may see decent upward movement on them at some point in January. All the while, crypto has decoupled and is still holding steady.

2. In an interesting move, Galaxy Digital buys the Helios crypto mining facility in Dickens County, Texas from Argo Blockchain for $65M. Galaxy also provided a $35M asset-backed loan to Argo. Of course, the assets are 23K mining rigs with a term of 36 months. This means Galaxy is playing host to Argo at the facility. This could be a very smart move as the deal is deep discount for Galaxy since Argo Blockchain's stock has dropped over 90% this year. Chess not checkers!

3. In another setback, Kraken says it will pull out of Japan, citing a prolonged crypto winter. On the first of this month I reported Kraken had to lay off 30% of its staff. I wonder if the exchange is in a position to be bought…and at a steal.

4. I keep seeing stories about how the crypto market has reached a bottom. I seriously doubt that and never pay mind to people calling a bottom callers, including myself. I noticed the last "bottom" at $17.6K and noted it at the moment. For me, it has since become the ceiling the coin is having a hard time regaining. I am paying far more attention to crypto adoption. For crypto to really grow and prosper adoption has to happen and take hold. A recent report by PYMNTS says 35% of tech-driven consumers prefer merchants that accept crypto. I think that is going to be a high growth area.

5. If I were still holding Solana, I would be rethinking my decision. Solana is down almost 95% from all-time highs and I do not see it having a strong possibility of recovering. I am not saying it can't go up, but because of network instability and projects looking to jump ship, I think the coin will have a hard time even maintaining a strong base of true believers. The situation could spell an uptick for popular projects like Polygon.

6. Gemini is facing a class action lawsuit and that is not good news at all. That said, I wonder how it would play out given they have been reporting on the progress toward making their customers whole. Not to mention, customers were not forced into making the investment decision into their EARN program that was run by Genesis. It will be interesting to see how it all plays out, especially if Gemini is able to make everyone whole.

Disclaimer

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