Bitfinity Weekly: Carrying the Trades
Welcome to Issue #118 of Bitfinity Weekly for our #BITFINIANS community. If this newsletter was forwarded to you, sign up here.
What's in Today's Email?
- Global Crypto News
- This Week in our Blog
- NFT Market Bytes
- Tweet of the Week
- Meme Time
- A Matter of Opinion
Global Crypto News
Win Some, Lose Some: A sudden market plunge this week saw Bitcoin briefly plummet below $50k, leading to over $350 million in liquidations across DeFi protocols. Aave emerged as a winner despite its token $AAVE losing 23.7% of its marketcap, as the popular DeFi protocol generated over $6 million in revenue thanks to liquidating positions during the flash crash. The sell-off was not so kind to other players however, with more than $1 billion being liquidated across the crypto derivatives market.
Market Ripples: The SEC's multi-year lawsuit against Ripple Labs has concluded, which coincided with a 20% change in the value of the company's token. On Wednesday a District Judge ordered Ripple Labs to pay a $125 million civil penalty and placed injunctions on the company that prevents further securities law violations. The penalty Ripple was originally slated to pay was $2 billion, a sum significantly higher than what the court ultimately decided on.
SOLo Journey: Major DeFi protocol Ethena launched a version of their $USDe stablecoin on Solana this week. The token is already integrated with multiple Solana DEXs and DeFi platforms, including Kamino and Orca. $USDe is a stablecoin pegged to the US dollar, and backed by both Lido Staked Ethereum (stETH) and short positions in perpetual futures markets. A vote is expected to be held next week regarding whether or not $SOL will be allowed to be used as collateral from $USDe loans.
Rekt Republic: Eric Trump and Donald Trump Jr. both tweeted about an upcoming crypto project this week, leading many to speculate that an official Trump family cryptocurrency is in the works. In a now-deleted tweet, Ryan Fournier (chairman of "Students for Trump")theor claimed that a Solana-based token called $RTR was that project, leading to a pump followed by a 90% dump. The Kanpai Pandas NFT project took significant damage from the $RTR fallout as a Pandas co-founder was supposedly involved in the fake token.
This Week in our Blog
Casey Rodarmor shook up the entire crypto world last year with the release of his Ordinals theory. Learn more about his journey as well as the potential trajectory of the man behind Ordinals and Runes in our comprehensive guide:
Hans
Recent innovations on Bitcoin, such as Ordinals and Runes, has led to fierce debates on whether or not Bitcoin should be used as a DeFi protocol chain rather than a store of value. Take a deep dive with us on this complex matter:
Fred
NFT Market Bytes
Lasers Ahoy: Gaming giant Ubisoft is developing a game on Ethereum L2 Arbitrum. The company, which is behind popular hits such as Assassin's Creed and Just Dance, announced on Tuesday that the new game is set in the same universe as Netflix's animated series "Captain Laserhawk: A Blood Dragon Remix". The game will not be limited to the Captain Laserhawk cast, as Ubisoft confirmed that it will feature characters from other Ubisoft franchises.
Closing Time: Immutable, an gaming-centric Ethereum L2, is closing its Immutable X Marketplace on August 13. Users and developers must transition to alternative marketplaces by September 27– at which time the Immutable X Marketplace will cease all operations. Immutable X Marketplace was initially built as a showcase for features possible via Immutable SDK and had partnerships with notable projects such as Gods Unchained.
Drawn Together: Azuki, an anime-themed NFT brand, is launching a series of animated shorts across social media platforms. The series is intended to attract a broader audience into the Azuki universe. Holders will be invited to create content in an interactive manner, with video contents exploring the lives or Azuki universe characters, including Elementals and Beanz.
Tweet of the Week
🎙️We will be going live today with @layeredge at 4 PM UTC !
— Bitfinity Network (@bitfinitynet) August 8, 2024
🫵Join the discussion on our partnership and how we're bringing #Bitcoin security to cross-chain dApps.🚀 https://t.co/Gq8wydwaku
Missed our latest Space? Never fear, click the link to hear the recording!
Meme Time
A Matter of Opinion
Many analysts have blamed the Bank of Japan (BoJ) raising their interest rate for the recent market turbulence. You may have heard the term "Japanese yen carry trade", but what is it exactly and what does it have to do with market volatility?
The practice of carry trade has been a significant play in global financial markets, particularly involving the Japanese yen. In essence, carry trade involves borrowing in a currency with low-interest rates and investing in assets or currencies with higher returns. This strategy has been widely used with the Japanese yen because the BoJ has consistently maintained an extremely low interest rate, making it an attractive currency to borrow against.
Historically, carry trades have significantly impacted various markets on an international level, and it seems crypto is no exception. Institutional and large volume traders have often leveraged the yen's low borrowing cost to invest in assets in a rather reliable manner for years. However, this strategy is not without risks, especially in volatile markets.
In the case of Bitcoin, which is no stranger to drastic price fluctuations, the carry trade can significantly amplify both gains and losses. When the value of Bitcoin changes, individuals who used yen to make their purchases may see changes. Conversely, if Bitcoin's price crashes, it can lead to massive losses, particularly for those heavily leveraged.
The markets, both stocks and crypto, seems to have calmed down for now. Bitcoin has seen notable changes this week, with many alts rallying behind it. However, this editor wonders if we are out of the woods yet. The Bank of Japan's Deputy Governor pledged to refrain making interest rate hikes during volatile market conditions but the future is unpredictable.
Connect with Bitfinity Network
Bitfinity Wallet | Bitfinity Network | Twitter | Telegram | Discord | Github
*Important Disclaimer: The information on this website is provided for general informational purposes only and should not be considered financial advice. While we strive for accuracy, Bitfinity does not endorse and is not responsible for any errors or omissions or for results obtained from the use of this information. Views expressed herein may not reflect those of Bitfinity. External links are provided for convenience and verification of information is recommended before taking any actions based on content found here.
Comments ()