coinershub

Share this post
Crypto Alpha Recap
www.coinershub.com

Crypto Alpha Recap

16.01.2023: Crypto short squeeze. MetaMask introduces Liquid Staking. Zhu & Kyle are raising money.

coinershub
Jan 16
Share this post
Crypto Alpha Recap
www.coinershub.com

Respect the pump. Crypto markets regained the $1 trillion capitalization mark for the first time since November. US CPI data for December was released, and figures aligned with expectations. The report leaves us with the consensus that rates will shift higher in February by only 25bps. And just like that, we are pre-FTX levels.

On Saturday, someone bought ~$4B worth of BTC futures in market orders triggering over $500M in short liquidations and squeezing altcoins left and right. It’s still very much PvP, as liquidity is low and doesn’t trickle down as broadly.

Gas fees continue to rise as we see an uptick in NFT volumes and general on-chain activity. One can only imagine what a supply shortage will look like in a bull market. Unlike Bitcoin, Ethereum doesn’t have a hard cap. Since it’s switched from proof-of-stake to proof-of-work, the issuance is net negative instead of a supply increase of 1.45M ETH. As long as the average gas price on the network becomes at least 16 gwei, the inflation is zero or even triggering a deflation.

Bitcoin is called sound money. It’s a term used to describe assets like Gold that are not prone to sudden appreciation or depreciation (laughs in crypto) in purchasing power over the long term. That’s why ETH is called ultra-sound money, an upgraded version to describe its potential to become a deflationary asset whose total supply will decrease over time.


GM! Sharing is caring. Be a chad and share this newsletter with your colleagues.

Share


Meme of the Day:


General:

  • Crypto lender Nexo’s Bulgaria outpost was raided by local police, suspected of money laundering and tax violations.

  • Société Générale mints $7M in stablecoin loan from MakerDAO. The firm used home loan bonds worth $40M as collateral (debt ceiling of $30M)

  • Su Zhu and Kyle Davies, the founders of collapsed crypto hedge fund Three Arrows Capital (3AC), are hoping to raise $25M to start a new crypto exchange called GTX.

  • Troubled crypto lender Genesis owes its creditors over $3B, prompting its parent company, DCG, to sell some of its venture-capital portfolio ($500M).

  • North Korea’s Lazarus Group moved $63.5M (~41,000 ETH) from the Harmony bridge hack through Railgun before consolidating funds and depositing on three different exchanges.

  • The U.S. Department of Justice is investigating the two brothers behind Solana stablecoin exchange Saber Labs, Ian and Dylan Macalinao, for using a web of 11 pseudonymous identities to build an ecosystem of interlocking financial products around Saber and inflate TVL.

  • Crypto brokerage Blockchain.com is laying off 28% of its workforce, about 110 employees.

  • Justin Sun told Reuters that he’s considering buying up to $1B of Digital Currency Group’s assets.


DeFi:

  • Four months after Ethereum's Merge, 16M ETH has been staked. The figure constitutes 13.28% of the total ETH supply and represents nearly ~$24B at current prices.

  • Polygon eyes hard fork on Jan. 17 to reduce the impact of transaction fee spikes and chain reorganizations. 

  • Algorithmic stablecoin market share falls from 12.2% to 1.6%.

  • Avalanche will support the stablecoin USP created by Platypus DeFi.

  • MetaMask liquid staking blasts off with Lido and Rocket Pool.

  • Self-proclaimed 'safest' DeFi lender, LendHub, loses $6M in a hack.


Sidenotes:

  • 1inch partners with Beefy, under which the 1inch API will power ZAP V2, a tool enabling users to enter Beefy’s yield-earning products from any asset.

  • Visa listed Alchemy Pay as an official Service Provider.

  • Uniswap proposal to deploy Uniswap V3 on the StarkNet network.

  • Rocket Pool welcomes Coinbase Ventures in oDAO.

  • StarkWare released Papyrus as an open-source full-node client for StarkNet.

  • Radiant Capital launches v2.


Funding:

  • Digital asset market maker CyberX raised a $15M Series A round led by Foresight Ventures.

  • Sortium, a developer of Web3 entertainment technology, has raised $7.75M in a seed round.

  • Alkimiya raised $7.2M to “build decentralized capital markets for blockspace” in a round led by 1kx and Castle Island Ventures.  

  • Createra, a creator-oriented metaverse project, announced $10M in Series A funding led by Andreessen Horowitz (a16z) to continue its pursuit of building the largest Gen Z-focused metaverse platform.


Crypto Twitter:

Twitter avatar for @EvgenyGaevoy
wishful cynic @EvgenyGaevoy
And since we are talking about cancelling stuff, if you are investing into coinflex/3ac "exchange" you might find it a bit more difficult to work with wintermute in future (on the relationship building side)
1:54 PM ∙ Jan 16, 2023
526Likes50Retweets
Twitter avatar for @mkt_sentiment
Market Sentiment @mkt_sentiment
At age 25, you give your hedge fund manager $100K to manage, and he produces an annual return of 8%. Assuming a 1.5% management and 20% performance fee, by the time you retire at 65, you will have $764K. But the manager will have $1.24M (at zero initial investment!)
Image
1:12 PM ∙ Jan 14, 2023
11,215Likes1,670Retweets
Twitter avatar for @N1C0_B_
NIC0 @N1C0_B_
Introducing Mars v2: The Next Evolution of DeFi with Rovers @mars_protocol will soon be launching on @osmosiszone let's take a deep dive on #DeFi features soon to come to #IBCgang
Image
6:45 PM ∙ Jan 15, 2023
44Likes15Retweets
Twitter avatar for @defi_mochi
Defi_Mochi (🍡, 📊) @defi_mochi
With the coming of Shanghai and the sudden run up of tokens and LSDs, an obvious narrative for 2023 is @ethereum Layer 2s. Who is winning the L2 wars and what does on chain wallet and transaction data tell us? I crunch data with @DuneAnalytics 📊 to help you find out! 👇 0/18
Image
7:10 AM ∙ Jan 14, 2023
394Likes105Retweets
Twitter avatar for @MingXMecca
LMC @MingXMecca
think about incentives some project has huge outstanding float/in the future that can be hedged cheaper to get MMs to scam pump+ have traders think its a 'narrative' they should join - distribute; than to sell into full bear for 0 later theyve been waiting for GCR echo thesis
Twitter avatar for @MingXMecca
LMC @MingXMecca
This isn't axiomatic, and not every team has the desire, /agility to pull it off, but the more vested tokens a project has in the future that is due to unlock [stuff people are shorting], the more incentive the team has to find some way to pump and distribute before music stops
10:13 PM ∙ Jan 12, 2023
135Likes3Retweets
Twitter avatar for @UnlocksCalendar
Unlocks Calendar @UnlocksCalendar
As we experience positive market momentum, teams with upcoming unlocks will release good news that they withheld for months when market was dead Goal would be riding positive market moves to pump the price just before unlocks Keep an eye on coins like $DYDX (Unlock on 3rd Feb)
Image
3:45 PM ∙ Jan 14, 2023
100Likes8Retweets
Twitter avatar for @napgener
Sn/Fr-axgener 200x @napgener
$CRV finally launching crvUSD this month. Llamakek.
Image
12:54 AM ∙ Jan 11, 2023
166Likes32Retweets
Twitter avatar for @vec0zy
vxCozy @vec0zy
su dropped a new pdf huh? that’s cute… premia.finance/v3.pdf
Image
3:17 PM ∙ Jan 16, 2023
38Likes9Retweets

Thanks for reading coinershub! Subscribe for free to receive new posts and support my work.

Share this post
Crypto Alpha Recap
www.coinershub.com
Comments
TopNew

No posts

Ready for more?

© 2023 coinershub
Privacy ∙ Terms ∙ Collection notice
Start WritingGet the app
Substack is the home for great writing