Weekly Rundown - July 24, 2022
Is it almost August already?
Is it almost August already? A little hot for crypto winter, isn’t it?
Some people say “friends don’t let friends buy altcoins during bear markets.”
If anything, friends shouldn’t let friends buy altcoins during bull markets. That’s when you lose money.
I would say buy altcoins whenever you feel like it. Just try to hold yourself to small purchases when the market’s hot and try to force yourself to keep putting money in during times like these, as best you can, at a pace that feels comfortable to you.
The cool thing is, you don’t have to rush and there’s less hype to sift through. Same volatility, lower prices, more upside.
Start with some of the altcoins on my Altcoin Reports. I added a new one this month and might have one or two more before the end of this year.
As I mentioned in my most recent market update, cryptos are trading at fire sale prices against every historical measure. For months we’ve seen accumulation amid selling.
That’s great but until new buyers come in, this market can’t sustain upward momentum. In the coming weeks, I’ll be looking for signs that new buyers have returned and keeping an eye on the concerns I’ve raised for a while.
I’m still following my plan, though—and keeping its name.
Scroll down for some content you may enjoy.
In last week’s rundown, I asked “is the four-year cycle still valid?”
63% said yes.
What do I think?
If you believe the four-year cycle’s valid, you’ll find a way to make it valid.
If bitcoin’s price goes up to $40,000 in September, then drops to $22,000 in November, does that count as a “bottom in Q4” even though its price is 25% higher than June’s $17,500?
I guess we’ll see. I’ll take the market as it comes. Stay tuned for another poll next week.
FYI, I’m taking some time away with family during the first week of August. No updates during that time but I may have a rundown, we’ll see. Emails and DMs are always open, no matter where I go!
A common complaint I’ve heard from people working on crypto projects?
They put a lot of time and effort into their work but nobody cares unless the token’s price goes up. Which leads to this tweet:
While this tweet might be made up, it captures real frustration among crypto builders.
In the real world, new ventures take years to come together and sometimes fail. Early backers sometimes wait years to see any gains from their investments. Why would crypto be different?
Pay attention to projects that gain traction or grow during the bear market, even if their token prices don’t go up as quickly or as much as you expect.
While I’d hate to hold out false hope for anybody who lost access to funds held on Voyager, I’d caution against lumping all distressed lending platforms into the same bucket.
We still don’t know quite how deep the liquidity pit goes but at least the industry is trying to patch it up.
Priority one for the market? Straightening out this mess. Bailouts and bankruptcy protections start the process. Look for regulations from the US within the next year or so.
Don’t lose hope.
Decrypt explains why holders of Uniswap, the governance token for a huge decentralized exchange, have not voted to pay themselves fees. While the option exists in the source code, nobody has tried to implement it.
Read the article for the details.
You can hold UNI tokens as a stake in the protocol decisions and the general stickiness that comes from everybody contributing to the liquidity pools that power the exchange, many of which use UNI as their partner pair.
While a lot of people think protocol fees will drive more value to the UNI token, I think it’s fair to ask where that value will go.
When speculators take their fees and cash out, value leaves the ecosystem. They’re just in it for the money. The protocol needs to find other ways to grow.
Without the fee revenue, you end up with more HOLDers who want to participate, not speculate.
In other words, UNI holders have to “do” something to get rewards. Over time, natural churn or boredom will drive speculators out of the network, preserving more value for users and “sticky growth” that can persist once the speculative enthusiasm goes away.
But does it really work that way? I’m not sure anybody knows. It’ll take a while to figure out what works and what doesn’t. Brave new world!
One meme for your week.
Relax and enjoy the ride!