Strap in people, it’s about to get real

Friday July 17, 2020

Assets held on the Fed’s books top ticked Jun 10th and have since seen $211bn shaved off the seven-trillion dollar-scheme-of things.

Interesting how the date dovetails with the gap drop in the all invincible S&P 500

And while Goldman may have hit the ball out the park, this is far from the harbinger of things to come. Netflix has come off its peak after issuing new subscriber guidance half of what the street was looking for as has the rest of the tech high-flyers. Strap on people, its going to be a wild one…

For all the hype DeFi yield farming has mustered up recently, 2Q20 earnings don’t quite paint a home run dropping 42% QoQ. This is actually worse that what it appears to be given the lions’ share of the pullback stemmed from MakerDAO scrambling to keep the house in order alongside Synthetix and their woes. Having said, a sobering reminder nevertheless that the bottom line of these projects have yet to enjoy earning growth trajectories commensurate to the meteoric price action seen by the native tokens of the platforms.

https://bankless.substack.com/p/bankless-q2-token-report

And despite the sketchy latency that has been the cause of frustration for many a Coinbase user all too frequently during times of escalated volumes and volatility, there is no doubt the company has paved the way as one of the OGs by elevating the space into regulated territory. The last series-E round had the company post-money at $8bn. Given the non-existent price discovery in traditional markets — or any apples-to-apples peers (Binance?) with which this unicorn stacks up to and what price tag will Mr Armstrong be shooting for? We shall see…

A slap in the face to the decentralized assets with Tether toeing the line by blacklisting multiple addresses effectively freezing 46mn USDT. Isn’t too difficult to envisage the scope of surveillance and control the governments can, and will likely exert through their CBDCs that are starting to spread like wildfire. Tether’s alternative would be to see the plug pulled altogether a-la Telegram so what really is the choice? Ironic given that they are self-regulating and showing a much more legitimate approach of business vis-a-vis what the NYAG presents them to be. It’s disheartening the double standards that permit clear and known repeat offenders in traditional businesses are saddled with (ineffective) monetary penalties whilst the businesses driving the new economy are (effectively) shuttered altogether. Power of the lobbyists?

Bank of England Governor confirms interest in pursuing a CBDC and who knows? Maybe the future of currencies will be a concoction of sovereigns, central banks, and corporations. The Japanese zaibatsu have been particularly aggressive on this front with heavyweights GMI, Softbank subsidiary SBI, and now

Mitsubishi UFJ Financial Corp — the fifth biggest commercial bank in the world has firmed up the debut of their coin 2H20. Having said, it will be interesting to sees how these behemoths navigate with the Bank of Japan also looking to join the party as the Nikkei reports serious consideration given to issuing a CBDC of their own.

Coupled with the ongoing efforts of the very same regimes in many a case of looking to get a piece of the action by levying taxes the latest coming from Korean lawmakers as they discuss a 20% capital gains tax on virtual asset related income. We’ve certainly come a long way from magical internet money good for nothing =).

And why sweat to get them love handles off you can send them sats to swipe ’em clean? #RealLifeUseCases indeed.

May the trend be your friend. Happy Trading!

Common Base CEO, pow.re co-founder. the strait jacket has been removed