There are quite a few interesting updates on Crypto recently. Let me pick a few that caught my attention recently!
(1) LUNC – up 440% over the past 60 days. Crypto is very volatile and crazy indeed? Did you join the fun to huat or maybe just gloating at the sideline?
What is BAB Token? Binance is introducting its very own account-bound BAB Token. It is the first-ever soul-bound token on the BNB Smart Chain. BAB tokens are non-transferable tokens that work as identity credentials for Binance users who have completed KYC verification.
Introducing the #Binance Account Bound BAB Token, the first-ever Soulbound Token on @BNBCHAIN!
BAB tokens are non-transferable tokens that work as identity credentials for Binance users who have completed KYC verification.
Non-transferable: Users cannot transfer BAB tokens to other users.
Revocable: Users can revoke their BAB tokens.
Unique: One verified Binance user ID allows the user to mint one BAB token only on a certain chain.
Gas fee applies whilst minting BAB tokens, which will be deducted from the user’s Funding or Spot Wallet on Binance. The initial gas fee is fixed at 1 BUSD. Users may revoke their minted BAB tokens, after which there will be a 72-hour lock period. Users may mint new BAB tokens after the lock period
Remember that I have mentioned about Soul-Bound token in my previous post? Seems like the future is coming earlier!
(3) Bank of Russia agrees to legalize crypto for cross-border payments
The Bank of Russia, the nation’s central bank, has acknowledged that cross-border payments made via cryptocurrency transfers are to be legalised. According to TASS, the Russian central bank has changed its mind about how to regulate cryptocurrency and is now working with the Russian Ministry of Finance to legitimise its use for international payments. Alexei Moiseev, Russia’s Deputy Finance Minister has stated that the Bank of Russia and the Finance Ministry anticipate legalising cross-border cryptocurrency payments soon. The need for local cryptocurrency services in Russia was emphasised by Moiseev, who pointed out that many Russians use international sites to create cryptocurrency wallets. (Source)
What does the above imply?
Another country realized the Cross-border transaction is crucial amidst the current chaotic geopolitical climate. Instead of the global SWIFT (which most Russian Banks are terminated from the network following the Russia’s invasion of Ukraine) Crypto is likely the solution for FAST transfer of money.
This truly reflect another a powerful important use case for digital cryptocurrencies and the future of Crypto!
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For those who are into Crypto, will likely notice the less co-relation between ETH and BTC recently. Let’s look at the price chart carefully.
Chart source: Tradingview YTD Chart
Chart source: Tradingview 6M Chart
Chart source: Tradingview 3M Chart
Chart source: Tradingview 1M Chart
Chart source: Tradingview 5D Chart
Look at the charts (YTD, 6M, 3M, 1M, 5D) above carefully, what did you observe? Did you notice something very interesting?
Although BTC and ETH are both down YTD, but ETH rebound is getting stronger as compared to BTC?
Let’s put this into table format to see it better.
Did you notice the pattern above? Both ETH and BTH are down, but ETH are slowly going up more in percentage as compared to BTC? Why so bullish about ETH instead of BTC? There are few reason(s) which I can think of.
Reason 1: Usefulness
Both are coined as “Queen” and “King” of Cryptocurrency. Bitcoin is generally known as a store of value (like your physical gold, hence people tend to call it “Digital Gold“) vs Ethereum supports smart contracts, DeFi and secure financial cryptocurrency transactions etc. In term of “usefulness“, ETH definitely rank higher. Of course although BTC is “useless” except for “store of value“, people still buy it. But why? This is the same reason as why people buy the useless real physical gold for thousands of years. Is gold really useful? Can you eat the gold? (You may wish to read this post on why gold is useful.)
Let’s use the famous term “thought experiment” which our great scientists always use. Imagine, 5000 years ago, someone rich and powerful stumble into a piece of nice shiny marble instead of gold (yes the toy marble that we use today) and words spread/rich powerful people advertise, value it etc. As for gold, no rich and powerful people like it. What will happen if you fast forward to today? Toy marble become value whereas gold become not valuable at all. What am I trying to drive at?
Real digital gold is perceived store of value since thousand of years ago and is still valuable today. Bitcoin is also perceived store of value for the last decade. Will Bitcoin continue to be the perceived store of value hundred years down the road? Your guess is as good as mine.
I am personally more bullish in ETH than BTC for the longer term simply because ETH is more useful.
Reason 2: ETH Merge
What is ETH Merge? Basically the ETH Merge will complete Ethereum’s transition from Proof of Work to a Proof of Stake system. This is expected to occur on 19 September 2022. You can read more about this inETH site itself. Basically this news cause people to be bullish about ETH
Reason 3: The most powerful and the most important reason
This is the most powerful and more important reason that cause ETH to pump.
This is the best reason which you can think of that result in the ETH pump.
Without this reason, ETH will not be so bullish and goes up more than BTC in %.
It’s the greatest reason of the century that cause ETH to be the most bullish in the short term.
Guess the reason?
Slowly slowly scroll down to find out…
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Scrolling down….
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Scrolling down….
Scrolling down….
Slowly slowly…
Slowly slowly…
Slowly slowly…
Slowly slowly…
Slowly slowly…
Slowly slowly…
Be patience…
Be patience…
Be patience…
Be patience…
Be patience…
I will reveal the reason…
I will reveal the reason…
I will reveal the reason…
I will reveal the reason…
I will reveal the reason…
It’s coming soon…
It’s coming soon…
It’s coming soon…
It’s coming soon…
It’s coming soon…
I will let you know this most important reason of the century soon…
I will let you know this most important reason of the century soon…
I will let you know this most important reason of the century soon…
I will let you know this most important reason of the century soon…
I will let you know this most important reason of the century soon…
It’s coming…
It’s coming…
It’s coming…
It’s coming…
It’s coming…
Be patience…
Be patience…
Be patience…
Be patience…
Be patience…
Here you go 🙂
Haha, this reason was brought up in CT and many people have been talking about it 🙂
Bear is getting long and people need some fun in life isn’t it? Remember to Careyourpresent and be happy. Life is much more important than anything else. Do also read my Careyourpresent Series 🙂
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Similar to traditional investors, DeFI/Crypto investors love the staking yields, attractive APR/APY etc! Many people are always having the of wet dream of FIRE (Financial Freedomand Retire Early)! One of the main way that everyone know is passive income > expenses. But how do you get passive income?
The most common is dividend income. Put 1 million of your capital at 6% yield in dividend stock would generate $60k per year or $5k per month. If your expenses is lower than $5k per month, you can quit rat race! Then you can FIRE!
For Crypto in 2021, this is even sexier. I am sure that if you are actively in the Crypto world in 2021, there are tons of protocol that advertise xxx% APR/APY or even xxxx% APR/APY? WOW! Great! We can use this DeFI yield to achieve Financial Freedom in Crypto!
How sexy would it be if you heard that this particular DeFi Protocol is generating 300% APR? Would you put your money in this DeFi site? By putting your money in this DeFI protocol, wow, you could FIRE EASILY! How does it work?
Let’s put numbers into perspective!
Created by yours truely Careyourpresent
I am sure many of the investors/traders, wet dreamers of FIRE, Financial Freedom sure have planned and drafted the table above. Then they would look at the table above daily, making wet dreams daily, dreaming of achieving their goals. In fact, the Crypto narrative of high APY/APR make this dream come true faster!
Look at the table above. Wow! For a portfolio of 1 millions dollars, you can generate $127K per year, $10k per month, $2.5K per week, $350 per day! Yes! Financial Freedom! The best thing is for Crypto you only need to put in 3% of your 1 million capital, you can easily generate $90k per year, $7500 per month!
That mean you are using 3% of your capital to earn 71% of your passive income ($90K out of $120K)! Higher Risk gives higher return (in fact, very very high return! Together with Stablecoin yield of 20% (hehe, guess many people should know why I mentioned 20% hehe…UST, in case your don’t know), I can easily FIRE! HUAT AH!
The best part is this is only 3% of your 1 million capital, even if DeFi is higher risk, so what?
In fact, I am only risking 5% of my portfolio to get majority of my yield such that my passive income > expenses! Can quit race race and retire early!
Ok, back to real life, what happen in the end? I guess many would have know now! The 5% of your portfolio is gone! In absolute term, it is $50k. OUCH! That’s at least few months of my monthly salary! It hurt! For some who got greedy after keep getting “nice yield” after putting in small amount initially, then slowly slowly get greedy and put in larger part of your capital (like 20%or more etc), you lose much more of your hard earned money! Then Crypto investor would say Crypto Winter is here, give up on Crypto, better go back to TradiFi. Sound familar?
(In case anyone don’t understand the Crypto terminologies used above, you can refer to this post).
The above narrative are very common in 2021. Now, there is a new narrative in CT which I would like to bring to your attention.
Created by yours truely Careyourpresent
What is real yield and what does it mean? You can see many CT talking about it. Let me give a summary of this.
Real Yield is defined as yield derived from the generation of “real” revenue (like Token Swaps, AMM trading fees etc), as opposed to revenue derived from the inflationary token emissions (as in 2021).
If we time travel back to 2021, in order to acquire more users, many of the DeFi protocols incentivize liquidity/attract more TVL by offering nice attractive high XXX% or YYYY% APR/APY. I am sure that you have heard of this last year, if I provide ETH – USDC in a liquidity pool, I get this protocl DeFi token at 300% APR/APY. WOW! Passive income!
The objective by these protocols is to buy time to create more sustainable revenue-generating products (of course some evil protocol use YOU as EXIT Liquidity). Eventually, as (1) the yield comes from inflationary tokens which has no real value/revenue generated (2) more users will rotate to the next DeFi once the emission incentives from the xx protocol tokens start to decrease, the price of the token of the DeFi protocol collapse. Retail interest and greed was at an all time high in 2021. Of course there are smart sharks that still wins by farming the yield and run after know the tokens will collapse soon (Refer to this post to see how monitor sharks in Crypto).
Do you still remember, Wonderland? Time? Luna UST? Cronos, DeFI kingdoms Jewel? Mad Meerkat Finance? Etc. They marketed and entice DeFi users with high APR/APY. People FOMO goes in and whack with their hard earned money, in the end when the tides goes naked, everyone become poor. (See 80000% APY! Wow let’s ape!)
Back to current time, the narrative now is to use DeFI protocal/Dexs with Real Yield instead of “fake” yield in 2021. More real revenue = more yield paid to users. The term “Real Yield” become the main story line now. How long this narrative will substain? Your guess is as good ad mine.
For an example on real yield currently, you can refer to my post on the recent GMX. People see real revenue generated from the GMX Dex. GLP Arbitrium even give around 20% APR to users as it accrues 70% of the platform’s generated fees. These fees are also paid in your favorite ETH (this is enticing to many people especially with the upcoming ETH merge). Of course there are other protocols who are real yield generating too, but I won’t share more examples in this post.
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Reminder!: If you still have any crypto in CEX like Gemini, KuCoin, Crypto.com, FTX etc or any lending platform, please withdraw them into your own hardware wallet (e.g. Metamask), ideally with Ledger.
NOT your keys, NOT your coins!
Please do not wait until the CEX/lending platforms starts to make announcement like Hodlnaut today. It will be too late!
Another lending platform – Hodlnaut suddenly gone today.
P.S. I already took out all my funds from Hodlnaut few months ago when news such as Celsius, 3AC dying… such things are usually contagious. 2nd half of the year will be worse.
Soulbound tokens (SBT) were first mentioned in his website, follow by in a paper published by Vitalik Buterin and others on May 11th, 2022. In the paper, Buterin et al suggest that even until now Web3 focused on “transferable and financialized assets, rather than encoding social relationships of trust”.
Web3 today centers around expressing transferable, financialized assets, rather than encoding social relationships of trust. Yet many core economic activities—such as uncollateralized lending and building personal brands—are built on persistent, non-transferable relationships. In this paper, we illustrate how non-transferable “soulbound” tokens (SBTs) representing the commitments, credentials, and affiliations of “Souls” can encode the trust networks of the real economy to establish provenance and reputation. More importantly, SBTs enable other applications of increasing ambition, such as community wallet recovery, sybil-resistant governance, mechanisms for decentralization, and novel markets with decomposable, shared rights. We call this richer, pluralistic ecosystem “Decentralized Society” (DeSoc)—a co-determined sociality, where Souls and communities come together bottom-up, as emergent properties of each other to co-create plural network goods and intelligences, at a range of scales. Key to this sociality is decomposable property rights and enhanced governance mechanisms—such as quadratic funding discounted by correlation scores—that reward trust and cooperation while protecting networks from capture, extraction, and domination. With such augmented sociality, web3 can eschew today’s hyper-financialization in favor of a more transformative, pluralist future of increasing returns across social distance.
What are Soulbound Tokens (SBT)?
In short, Soulbound Tokens are publicly visible, non-transferable tokens, which can be issued to wallets that are called Souls. Once issued, the tokens are bound to the “Soul”, thus enabling personal identification that was not possible in the past only with NFTs.
In summary, SBTs are NFTs that can’t be transferred once received. You will hold it in a Soul wallet forever.
This will be a method for defining “social identity” in Web 3.0 and De-Fi. SBT will be you in future. So Cool!
What would SBT be used for?
There are several use cases for Soulbound tokens (or non-transferable NFTs), likely there will be even more cases in future.
Certification and Documentation – example your University Degree, your driving license etc
Proof of Attendance and Presence – Verify applicants/attendees of an event
Facilitate Lending and Borrowing – Your credit report can be represented using SBTs. This will offer lenders a borrower’s complete credit profile.
Voting – replace your national identity during voting. So cool!
Wallet Recovery – Buterin introduced the idea of a social recovery wallet in a January 2021 report
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In whatever investment that one do, we would always like to know if the big sharks are invested in the particular investments which you are in. How do you find out? In Traditional Finance, we can know from SEC filings, announcement from companies investor relations etc after the trades are done. If you want more real time trade, you can use Bloomberg but that would usually set you back about 5 digits cost monthly, which is impossible for most retail traders.
However, Crypto is very very different. We can see real time trade using simple tools.
Yes! Blockchain scanner Etherscan, Arbiscan etc.
How much does it cost? Free!!! All transaction are transparent to all users of Crypto regardless if you are retail or sharks. You can even track their public wallets if you know how to find them (also see what are Crypto wallets?).
The main idea is that these whale wallets usually have an unfair advantages of information/trades as compared to typical retails (similar to Traditional Finance). We can see their trades and decide if we should do the same trade or simply just learn from how these sharks think. .
For example, if you suddenly see many whale wallets (not just one) put in their money to buy a token of a particular DeFi, we can conclude that the token price will move soon (of course please do your usual fundamental research on the Crypto, e.g. Tokenomics). Of course, the vice versa is true. If you see many sharks start to run/sell the token, it is better that you run too before it is too late.
The key question is: How do we Track Whale Wallets?
Method 1: Most simple method (but you need to pay)
Use Nansen’s Smart Money – they have done the hardwork for you but of course you need to pay.
Another method is to create and keep your own whale wallets simply using Blockchain scanners.
How?
Let’s do an example of the recently very popular GMX Tokens (with repeat shilling by many CT).
Three Simple Steps:
Step 1: Go to Arbiscan. Search for GMX. You should be able to find the token.
Step 2: Click “Holders”, you will get the top holders of the token “GMX”.
Step 3: Copy the address of the “Whale Wallet” that you want to find out more and put in example Debank (of course you can use Zapper, Apeboard Etc. You can refer to here). For example, I have copied the 7th Wallet in the screenshot above into Debank. From there I can observe what this whale is selling/buying/trading etc. After which, I need to decide if I wish to add this wallet into my Whale Wallet list.
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