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GM to all you crypto nuts. Crypto Nutshell #462 droppin’ in… 💧🥜
We're the crypto newsletter that's more magical than escaping a tower and discovering the world for the first time... 🌸🏰
What we’ve cooked up for you today…
🏦 Trump’s token launch
🌅 Saylor’s endgame revealed…
🤔 Longest sideways ever?
💰 And more…
MARKET WATCH ⚖️
Prices as at 4:50am ET
Only the top 20 coins measured by market cap feature in this section
TRUMP’S TOKEN LAUNCH 🏦
BREAKING: Trump-Supported World Liberty Financial Will Start Public Token Sale Next Week
No one saw this coming…
For the first time ever, a presidential candidate is about to release their very own crypto project to the public.
And the reception to this announcement hasn’t been great… (to say the least)
Trump posted the following to X on Saturday morning:
But what even is World Liberty Financial (WLFI)? What is the point of it?
Let’s go over some of the details.
First things first, the tokenomics:
63% of the token supply will be sold to the public
17% will go to user rewards
20% to the team
Tomorrows initial sale will look to raise $300 million by selling 20% of the token supply at a $1.5 billion fully diluted valuation.
The roadmap states that WLFI will be a governance token used to vote on decisions regarding future development of the platform. These tokens will be non-transferable for the first 12 months.
The project is set to roll out in three distinct phases.
The first phase is to launch a version of DeFi lending platform Aave on the Ethereum Layer 2 network Scroll.
This platform will allow users to lend and borrow tokens, starting with Bitcoin, Ethereum and stablecoins.
The second phase is to integrate with exchanges and let users on-ramp and off-ramp with onchain attestations of KYC protocols.
Also part of the second phase is the launch of a stablecoin-focused credit card.
The final phase of the project is to fractionalise real-world assets and obtain regulatory licences for doing so. The project mentions hotels and sports clubs as examples.
Also part of the final phase is the creation of a settlement platform for stablecoins.
That’s a whole lot of promises…
Can they deliver?
A token sale just 21 days out from the election…
Quite the odd move…
What're your thoughts on Trumps crypto project? |
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SAYLOR’S ENDGAME REVEALED 🌅
Since 2020, Michael Saylor and his company MicroStrategy have been aggressively buying Bitcoin.
Between Saylor’s personal Bitcoin holdings and those of MicroStrategy, Saylor has acquired over 269,952 Bitcoin.
That’s 1.28% of the total Bitcoin supply. 🤯
So what’s Saylor’s endgame?
Well in his most recent interview with Bernstein, he revealed all.
Spoiler Alert:
Saylor isn’t going for billions, he’s going for trillions.
First off, Saylor believes that Bitcoin is going to be the top-performing asset of the 21st century. To capitalise, he wants to turn MicroStrategy into a Bitcoin bank:
“This is the most valuable asset in the world. The endgame is to be the leading Bitcoin bank, or merchant bank, or you could call it a Bitcoin finance company.”
Saylor’s game plan is simple: He’s going to continue to borrow money at extremely low interest rates, then use it to buy more Bitcoin.
As MicroStrategy is a long-standing company with healthy cashflows, people are willing to lend them cash at very low rates.
MicroStrategy currently has total debt of ~$3.91 billion dollars at an interest rate of just 1.6% annually.
In his worst case scenario, Saylor believes Bitcoin will go up on average by 22% per year, for the next 10 years:
“Once you get past the volatility and learn to manage it, the bear-case scenario I foresee is Bitcoin increasing by only 22% a year over the next decade.”
This means in Saylor’s worst-case scenario, MicroStrategy pockets a 20.4% return per year.
As Saylor’s Bitcoin strategy continues to be proved out, he believes it will begin taking market share from other forms of investment, which provide lower returns:
“Then we basically start to chew into the fixed income markets, and we just keep buying more Bitcoin. Bitcoin is going to go to millions a coin, you know, and then we create a trillion dollar company.”
That’s how Saylor gets to his trillion dollars.
Saylor views Bitcoin as a binary. It’s either going to be something or it’s nothing. He’s all in, betting that it’s something:
“It's a trillion dollar asset class going to $10 trillion and then going to $100 trillion. The risk is very simple — it’s Bitcoin. You either believe Bitcoin is something, or you believe it's nothing.”
The good news?
Saylor’s betting record is immaculate. 👏
LONGEST SIDEWAYS EVER? 🤔
The price of Bitcoin has basically been the same for the past 6 months…
Besides a few corrections and minor pumps, Bitcoin has been stuck between $50,000 and $70,000 for what feels like forever.
In fact, if we don’t see significant upwards price movement soon, this will go down as the longest sideways price action Bitcoin has ever seen. (In a halving year)
CryptoQuant CEO Ki Young Ju posted the above chart to X, stating:
“285 days have passed in 2024. If there is no Bitcoin bull market within the next 14 days, this will mark the longest sideways in a halving year in history.”
However, this cycle has already proven itself to be a little different.
Usually Bitcoin sets a new all-time high ~240 days AFTER the halving.
But for the first time ever, Bitcoin actually set a new high BEFORE the halving. (March 2024)
Does this mean that the bull market was bought forward?
Possibly…
The other theory is that we won’t see any significant price action until after the US election.
Which is only 21 days away…
CRACKING CRYPTO 🥜
Bitcoin on track for longest flat market in halving year history. Bitcoin struggles to start a significant parabolic upward movement in a new 'accelerated' post-halving bull run.
'Off The Grid' exposes mainstream audiences to blockchain gaming. According to a recent gaming survey from Elympics, approximately 57% of respondents said they played pay-to-win games to collect airdrops.
MicroStrategy Soars to 25-Year High, With 'NAV Premium' the Widest Since 2021. The stock has gained 4% since bitcoin hit an all-time high in March, while bitcoin itself has declined 16%.
Avalanche Foundation to repurchase tokens sold to Terra's LFG in 2022 deal, pending court approval. The financial details of the deal weren’t disclosed, but the tokens are currently worth over $55 million at full price.
WHAT WE’RE READING 📚
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MEME CORNER 😂
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Trivia Answer: B) “Meme coin” or altcoin 🥳
Dogecoin was officially launched on December 6, 2013.
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