Sunday Rundown - May 16, 2021

Happy Sunday! Read below for some articles and videos you may enjoy.

First, let’s call a spade a spade. It was a rough week for the crypto market (unless you’re ADA, MATIC, SHIB, or the other handful of altcoins in the green).

Bitcoin’s price remains 26% down from its all-time high and lots of altcoins have gotten worse haircuts.

Do you buy now? Wait for the price to drop further? What about altcoins? Some have fallen 50% or more from their all-time highs. Do you buy the dip or wait for the next leg down?

Premium subscribers know what to expect and what I’m doing about it.

BTW you can now call me. To schedule a call in advance, find me on Superpeer.

To catch me in the moment, use Remotehour.

Watch this RealVision interview, Lawrence Lewitinn: the Skeptical Insider. You’ll have to set up a free account with RealVision but it’s worth it (free).

This interview covers a lot of ground about the crypto market and bitcoin’s value proposition. Pay attention to Lawrence’s comments about whales and liquidity, especially in light of Elon Musk’s recent actions.

Unlocking the Treasury

• Bottom line: over the next year, the market will see a flood of tokens from altcoin treasuries.

• My take: nothing new. When you invest in altcoins, you need to factor inflation, rewards, and expiring lock-ups into your expectations. Inflation makes each token less valuable over time even if the price goes up. Rewards sound great but many users sell them instantly, creating downward pressure on prices. When lock-ups expire, it means tokens move from a locked/unspendable smart contract to the open market—often leading to sudden (temporary) excess in supply.

• Why we care: inflation, rewards, and lock-ups can help networks grow, but at a cost. Often, altcoin tokenomics compensate their community for that cost, e.g., with generous staking rewards or bonus tokens for depositing into certain smart contracts or decentralized exchanges. Over time, attrition moves tokens from speculators to believers, laying the foundation for massive, non-speculative growth—for those willing to wait for the process to play out. In the meantime, it tamps down on prices.

At the risk of encouraging groupthink, here’s a video from Crypto Crew University that shows two interesting patterns playing out that may surprise you.

Ignore the upsell for Steve Courtney’s trading program. I can’t comment on that program as I don’t know anything about it, but I share the video because it offers a valuable perspective from a trader’s view.

While the title, “Attention Bitcoin Holders: This is Bad News,” falls squarely into the clickbait category, it really doesn’t accurately describe the video. YouTube’s algorithm favors clickbait, it’s what you have to do to grow your channel on that platform.

This tweet, if true, shows the amazing power of a token upgrade.

Talk about squeezing the middleman and wringing efficiencies from the market. Nice to see with a $5 million order on USD stablecoins, let’s see how it does with a $50 million order on an altcoin outside of the top 30.

While the jury’s still out on whether V3 will prove a long-term success for Uniswap, you can’t deny the benefits of trading large big accounts with low slippage.

Relax and enjoy the ride!