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GM to all 22,696 of you. Crypto Nutshell #162 gallopin’ over. 🐎 🥜
We’re the crypto newsletter that's more serene than living on a street where neighbours are a bit too perfect... 🏠🍪
What we’ve cooked up for you today…
👩⚖️ SEC divided on crypto policy
🛠️ Time to update the system
😱 Taking a look at the FOMO indicator
💰 And more…
MARKET WATCH ⚖️
Only the top 20 coins measured by market cap feature in this section
SEC DIVIDED ON CRYPTO POLICY 👩⚖️
Breaking: SEC’s Hester Peirce doesn’t know what her agency is trying to accomplish
The SEC is clearly divided on its stance towards crypto.
Commissioner Hester Peirce had this to say during a fireside discussion at the Blockchain Association Policy Summit:
“There doesn’t seem to be a rhyme or reason for a lot of cases we bring.”
A couple of months ago the SEC went after the NFT collection Stoner Cats.
Funnily enough Peirce appears baffled by this decision to pursue an NFT collection.
In response to stopping people from purchasing Stoner Cats, Peirce said this:
“I don’t really view it as my primary objective… We need to just also remember that there’s a lot of traditional securities fraud going on, and resources that were spent going after Stoner Cats are not being spent to go after [other actors.]”
When asked about what the SEC’s endgame is, in terms of crypto, Peirce said:
“I really can’t tell you definitively… We need to stick to the mandate Congress gave us and not extend beyond that.”
This quote seems to be in direct response to the SEC suing Coinbase and Binance for operating as an unregistered securities exchange.
It’s wild that one of the five SEC commissioners is so open about her disagreement with her agency’s regulations.
One thing is for sure, the SEC is definitely not a united front.
This is very promising for the future of crypto regulation, once actors such as Gary Gensler have been replaced.
For the full article click here.
TOGETHER WITH VENTURE SCOUT 🎯
Check out these returns from IPO to September 2021:
Google (Alphabet) 64.24x
Netflix 550.47x
Facebook 9.02x
Question: What do these companies all have in common?
Answer: They’re all software companies.
Software companies, in our opinion, offer the highest potential returns to investors. (outside the world of crypto 😉)
The problem?
Keeping up with software startups is f*cking difficult.
The SAAS world is practically impossible to keep up with.
That’s why we read Venture Scout.
It’s a high quality weekly report on all the latest and greatest software startups, so you can keep a finger on the pulse of one of the greatest opportunities of our generation.
The best part? Just like us, their reports are completely free.
Subscribe now by hitting that big subscribe button below, there’s really nuttin’ to lose. 🥜
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TIME TO UPDATE THE SYSTEM 🛠️
Brian Armstrong is the CEO & founder of Coinbase.
Coinbase is the largest and first public cryptocurrency exchange in the U.S.
Right now, they’re fighting tooth and nail with the SEC to protect crypto’s future.
Today, Coinbase dropped a new marketing campaign that went viral.
Why?
It perfectly highlights why crypto is going to win out over the long term.
You can check out the 1-minute video here.
It shows the plight of the younger generations. Specifically, Millennials and Gen Z.
These generations did exactly as they were told. They went to school, took on debt for college and got a 9-5 job.
But due to stagnant wage growth, unending money printing & inflation, there’s a problem.
A massive problem.
Their quality of life is worse than the generation that came before them.
They can’t afford to buy a house. 🏡
They can’t afford to buy a car. 🚗
They can’t afford to start a family. 👨👩👧👦
The American dream has been eroded away in real time.
Right in front of our eyes.
This is why crypto will win out.
It’s why crypto investment skews much more towards younger generations.
The old system is broken.
It’s time to update the system.
P.S
We aren’t sponsored by Coinbase or affiliated with them at all.
We just think Brian Armstrong is one of the few clearly good actors in the space. In our opinion, they knocked it out of the park with this campaign. 👏
THE FOMO INDICATOR 😱
Today we’ll be taking a look at one of our favourite on-chain metrics.
The Realized Cap HODL Waves (RHODL) visually breaks down the balance of wealth in the Bitcoin network. Have the majority of coins recently moved? Or are the majority of coins dormant?
Let’s find out.
RHODL builds upon the idea of the classic HODL waves by weighing each age band by the price at which each coin last moved. This removes Satoshi’s coins (~1 million BTC) from the data as they have never moved (realized price is 0).
Warmer colours indicate younger investors. (we’re talking coins held for less than ~6 months)
Cooler colours indicate older investors. (coins held for longer than 6 months)
Here’s how to understand this metric:
Peaks in warmer colours: The market is prepared to pay higher values for Bitcoin today versus historical norms. A sign the market is peaking. 🐂
Peaks in cooler colours: The market is not prepared to pay higher values for Bitcoin. Occurs at major cycle lows where the average investor is no longer interested in Bitcoin. 🐻
A cool and easy way to think about this metric is that of a FOMO indicator. Large spikes in reds and oranges indicate market FOMO. (This is the ideal time to sell) 🤑
Take a look at the chart above and compare previous market cycles to where we are now.
When the price of Bitcoin peaks, so to do the spikes in reds and oranges. This is when the smart money (long-term holders) begin to take profits and sell to short-term holders.
But notice how warmer colours are only just starting to increase…
We have a long way to go before we’re in peak market mania mode.
It’s still only the beginning. 😎
CRACKING CRYPTO 🥜
WHAT WE’RE READING ✍️
Want to get even smarter? Check these out.
p.s. all completely FREE
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CAN YOU CRACK THIS NUT? ✍️
If a computer is connected to the internet and starts running the Bitcoin software, it becomes part of the Bitcoin _______..
A) Node
B) Protocol
C) System
D) Network
Find out the answer at the bottom of “Meme Corner” below 😀
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: D) Network 🥳
If a computer ("node") is connected to the internet and starts running the software, it becomes part of the Bitcoin network.
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DISCLAIMER: The content of this newsletter is not financial advice. This newsletter is strictly educational and is not investment advice. Please be careful and do your own research.
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