In this Edition:
- We share our views on Bitcoin's new stablecoin, Argentina's issuance of a 2,000 Pesos note, the promotion of cryptocurrencies by China's state-run television
- Altcoin alpha by Spaziocrypto.
Optimists on Bitcoin with NFT, BRC-20 tokens and... a stablecoin
21 million Bitcoins and only 8 billion people. This equates to only 0.002625 Bitcoins per person. The biggest risk is having no Bitcoin allocation at all.
And it seems that more and more people are starting to buy it. There are now 40 million Bitcoin addresses with a balance of $1 or more. Even if Bitcoin addresses do not always mean new users, the adoption trend is going in the right direction. BTC addresses with more than $1, $10, $100 and $1000 have increased by 16%, 18%, 23% and 32% respectively so far in 2023.
The Bitcoin network is growing rapidly, despite the bearish market.
The ordinal NFTs play an important role in Bitcoin's bearish market boom. Bitcoin NFT and memecoin trading volumes in May surpassed those of Solana, making Bitcoin the second most popular NFT blockchain, behind Ethereum.
Bitcoin's DeFi ecosystem continues to grow, with a new addition to the network: a stablecoin.
The Ordinals ecosystem has certainly come a long way in a short time.
Stably USD is a BRC-20 token that represents a US-secured stablecoin. Company documents show that each #USD token is fully guaranteed and held at banks insured by the FDIC through Prime Trust.
Users will then have to pass Know Your Customer (KYC) identification checks to exchange between the two currencies. Let's keep our fingers crossed that #USD spreads to Bitcoin and does not suffer the same fate as it did to Ethereum.
StableUSD on Ethereum has only 752 holders and a market capitalisation of $264,000. Bitcoin can do better than that.
A 100% inflation. It seems unthinkable. But that is the current reality for the people of Argentina.
They are facing an inflation rate of 109%. This is the fastest rate of inflation for the country since 1991. The proposed solution?
Increase interest rates to 97%. Issue banknotes with bigger numbers! What could go wrong from here?
Argentina has issued a new 2,000 pesos note.
The banknote is only worth $8.50 at the official exchange rate and $4 on the black market. I wish you were joking. The most valuable banknote currently in circulation is the 1,000 pesos note, which is only worth $2.70. Once the infernal cycle starts, it is almost impossible to stop it.
So things look set to get worse as the country continues to be under IMF control. The 2018 agreement between Argentina and the IMF failed and was replaced by a new $44 billion loan in 2022. Since then, drought has ravaged the nation, reaching the second highest drought reading in 20 years. Not surprisingly, the economy is barely growing. GDP in March rose by only 0.1%, lower than forecast by 0.4%.
Is China coming to the rescue? Argentina has teamed up with China to expand the yuan currency swap line in order to accumulate reserves at the central bank, hoping to avoid another sale of pesos.
The two countries signed a 70 billion yuan swap line agreement in 2009 and expanded it to 130 billion yuan in 2020. It appears that up to $5 billion has been used and discussions are again opening to increase the total amount.
This is starting to look a lot like the US debt ceiling debacle. Different baths, same... you know what!
With elections looming and a recession looming, the situation is similar in both countries at the moment. However, Argentina has no reserve currency status to hide behind. They have been thrown to the lions and left for dead. This is exactly what Bitcoin was designed for. Bitcoin is hope.
China's state-run television station pumps the cryptocurrencies
China's largest state-run television station has just uttered our favourite "C" word: cryptocurrencies.
China Central Television (CCTV) just broadcast a segment to over 1 billion people about the upcoming opening of cryptocurrency retail trading in Hong Kong on 1 June. The segment lasted 98 seconds and reportedly did not include anything (too) negative about cryptocurrencies.
This is huge! The CEO of Binance, CZ, is extremely optimistic as 'historically, covers like these have led to market rallies'. Meanwhile, the US continues to step up its action against cryptocurrencies. So get ready for fireworks displays, the next market rally in Asia may be about to begin.
ApeCoin [APE] is launching an accelerator programme for projects working with Bored Apes' NFTs. Bored Apes holders will be able to vote (via APE) for the projects they wish to see incubated, and winning projects will have to adopt APE within their business frameworks. The aim is to increase the adoption and usefulness of APE.
Binance [BNB] is launching an NFT lending feature where users will be able to secure loans in ETH using their NFTs as collateral. This will go into effect on Friday 26th. Binance's move follows a similar programme launched by BLUR, the NFT marketplace and aggregation platform.
The developers of Cardano [ADA] have added over 1,000 Plutus v1 smart contracts to Cardano since the beginning of the year, a 22 per cent increase. Plutus smart contracts are crucial for dApps on the network.
Solana [SOL] has integrated an open-source ChatGPT plugin into the network. You can download it here. In addition, the Solana Foundation increased their strategic AI funding money from $1 million to $10 million.
Synthetix [SNX]is turning things upside down. First, Synthetix's total trading volume has exceeded that of GMX in recent weeks. One reason for this could be the lower trading costs, which are now as low as 0.02% on some trading pairs. Secondly, the exchange's founder is pushing for a buyback and destruction of millions of SNX tokens, along with a number of other proposals, all aimed at stimulating the protocol's next phase of growth.
Uniswap [UNI]holders are discussing another commission change proposal that would charge liquidity providers 1/5th of the pool fees on all v3 pools and then redistribute those gains to the community. The commission change is currently being tested on v3 Polygon with the possibility of expansion to Ethereum pools. Further proposals will be needed to determine how exactly the additional income will be redistributed.
Elixir [ELXR] Protocol, a new DEX that creates markets on multiple CEX and DEX, will integrate with the Injective blockchain. The token will be ELXR and the launch of the mainnet has not yet taken place.
Vela [VELA] Exchange, the new DEX of Arbitrum derivatives, has just introduced Hyper VLP 2.0, which defines rewards and incentives for Vela beta participants. Vela's mainnet (beta version) is coming soon.