tl;dr
• Consumer price index numbers are expected out today and that will tell us about inflation• Senator Elizabeth Warren is calling for more aggressive SEC enforcement• The FTX fallout could be long, but may not have the impact of Luna's collapse• Solana's fall could cause them to lose projects• Twitte...
• Consumer price index numbers are expected out today and that will tell us about inflation
• Senator Elizabeth Warren is calling for more aggressive SEC enforcement
• The FTX fallout could be long, but may not have the impact of Luna's collapse
• Solana's fall could cause them to lose projects
• Twitter files to become a payments processor paving the way for possible DOGE implementation
FTX is still the top of the new cycle, but don't lose sight of everything else. Here is what is on my mind today.
1. Keep watch on the CPI numbers that are to be announced at 8:30 this morning. The consumer price index is a trailing indicator and I am expecting at least a slight overreaction to the numbers. Why? Because there have been a slew of layoffs, including 13% from Meta (the 1st time in their 18 year history).
2. Elizabeth Warren is yapping for more aggressive enforcement by the SEC. I am beginning to think she carries so much hate for business that she may not know how it works. I do not mind enforcement if the regulations are clear and are made aware to those in the industry. That said, calling for further regulation by enforcement is reckless. If you keep empowering the SEC to continue along its current path, you are inviting problems that will span more than just a single industry. The haphazard approach will affect things financial.
3. The FTX debacle will now fall into the bankruptcy groove and following the same patter as everyone else in this predicament. Right now we know there are a few companies like Softbank, Tiger Global, Thoma Bravo, Sequoia, BlackRock, Galaxy Digital ($77M exposure) and Paradigm Investment Group that invested in FTX at one point or another. Then you have projects like Near, Solana, Anthony Scaramucci's SkyBridge, Yuga Labs and more. Sequoia has already written off its FTX investment. I am looking to see if there are more opportunities during the comings weeks.
4. Something I am looking at are all of the projects that are currently on Solana and whether or not they may be rethinking the choice in chain. This could lead to chains like Polygon and Cardano to pick up more projects as Solana continues to slump. I am expecting another hit on Solana today as $1B becomes unstaked and could flood the market with people looking to sell their coins.
5. Did you know Twitter filed its application to become a payments processor. Filing with the Financial Crimes Enforcement Network (FinCEN) lays the foundation for Twitter to process money transfers. Currently, Twitter Tips, a way for people to give money to creators, is a limited implementation powered by Strike's API and leveraging Bitcoin. Twitter has choices here. They can run with PayPal that offers more robust services as well as more coins, adding Ethereum, Litecoin, and Bitcoin Cash. They could also lean on their new relationship with Binance to roll out more coin support, including the much touted DOGE.
6. You need to learn that overleveraging can crush you. In the case of FTX it is clear they were overleveraged and they could recover enough to cover the mistakes. Now there are a lot of people that are looking backward and saying they told you about the strange things that were going on at the company. Do your own research and learn from this debacle. I look at centralized exchanges in the same light as banks. They hold assets and charge you to use your assets. Meanwhile, they could be investing your assets in things they can make more money from. Think mortgages and other loans. So my kids and I look into exchanges with the same eye as when we look at projects and coins to invest in. We want to know who is involved, what they are doing and how they are doing it. Hindsight is 20/20, but it is not useful unless you can learn from it.