🧘‍♂️ALERT: Could This Be…Uptober?

Market Meditations | October 4, 2021

5 charts you NEED to see.

Dear Meditators

? Rejoice! For we are seeing an extremely positive start to the month.

Could this be… Uptober?

Today’s Meditations:

  • ? Trick Or Treat: Money or Doxxed. How 89 million dollars were accidentally gifted to Compound users. 

  • ? Technical Analysis. Essential info on BTC, ETH, SOL, SRM and AXS.

  • ☑️ Grayscaling Solutions. Find out which 2 lucky altcoins have won a place in Grayscale’s fund.

  • ? Our Crypto Calendar. What you do NOT want to miss this week.

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? Trick Or Treat: Money or Doxxed. 

If you accidentally received $20 million would you give it back if someone asked nicely? That is exactly what happened with the DeFi staking protocol – Compound. A bug in Compound’s company update was responsible for mistakenly gifting 89 million dollars to users! 

Late last week, Compound made what appeared to be a very costly mistake. This was by no means an early Christmas gift for users. Founder and CEO, Robert Leshner, took to Twitter to plead with users to give back the money.

  • If users gave back the money, Leshner said that they could keep 10% as a reward for their good deed. 

  • He then said, “Otherwise, it’s being reported as income to the IRS, and most of you are doxxed.” 

  • He later retracted his statement saying it was “bone-headed” to say that he would dox people. 

This is not the first time a bug has accidentally given people money. In May, it was Blockfi who sent out $20 million to users. What can we learn from this?

  • Protocols are subject to bugs

  • Lack of safeguards results in different security when using crypto services vs. using traditional banking services. 

  • We must be aware of the inherent risks in crypto services. This is why we must do our best to have the best security possible

Would you have been one of those people that returned the crypto in fear of being doxxed? Or would you have been someone who returned crypto because it was ethical?

Our Market Meditations are longer format educational segments. Each letter features a Market Meditation which will deep dive and analyse a relevant crypto event, theme or tool. 

⬆️ Could This Be… Uptober?

1️⃣ BTC/USD 

Testing key resistance at $48.5k.

Promising to see positive price action, particularly when stock markets are more risk-off.

We regard a break of this level as an aggressive entry. 

A more conversative entry would be once the next key resistance level is claimed: $50k.

Next key support at $44k.

2️⃣ ETH/USD 

Structure not breaking as clearly as Bitcoin. 

Bitcoin is starting to establish higher highs in a way that we aren’t seeing on Ethereum just yet.

That being said, ETH will likely follow BTC.

Next hurdle: $3.6k and key level to break at $4k. 

Beyond $4k is price discovery.

3️⃣ SOL/USD 

We’ve just broken the key structural level, $170. Favoring longs now.

A test of $190 is probable. 

$200 is our key breakout level. In other words, If we claim $200 we expect aggressive continuation.

So many positive fundamental developments around Solana: just recently, Solana was added to the Grayscale fund. More on this later in the newsletter.

4️⃣ SRM/USD 

SRM experienced a pretty harsh drop.

Starting to see some recovery.

That being said, Solana looks stronger at the moment.

Above the $10.8 level, the odds shift more towards SRM. 

5️⃣ AXS/USD 

The token that keeps on giving.

Trailing Fibonacci is our preferred entry approach: buying at 0.236 retracements.

Few coins have experienced such uptrends.

Community is vibrant, the game keeps improving and we’ve just heard their plans to launch a DEX, which will likely provide more upside momentum.

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➡ Grayscaling Solutions

Grayscale Investments, holder of the world’s largest bitcoin fund, now holds Solana (SOL) and Uniswap (UNI) in its Digital Large Cap Fund (GDLC). The move into the two altcoins further diversifies the portfolio by reducing its holdings in Litecoin and Bitcoin Cash to account for the addition. 

  • Grayscale rebalances its GDLC every quarter by selling crypto assets in order to buy others with good track records. 

  • After the rebalancing, SOL and UNI now make up 3.24% and 1.06% of the portfolio, respectively. 

  • Grayscale institutional investment continues to grow. Financial powerhouses like Morgan Stanley have more than doubled their holdings in the Grayscale Bitcoin Trust (GBTC) from April to July this year. 

  • Grayscale offers a host of options ranging from Single Asset Trusts to Diversified Funds like DeFi and GBLC.

An implication of the move may be institutional demand justifying the decision. One reason for this could be the recent addition of David Grider as head of research to the Grayscale team. 

At a summit in New York City last month, Grider spoke about the future of DeFi and the movement of crypto toward the metaverse as the decentralized iteration of web3 continues to take root. 

Grider sees the natural evolution of crypto moving from smart contract logic to NFT’s and areas beyond, such as gaming and virtual reality. With Uniswap’s TVL comfortably over $2.5 billion and Solana’s Defi ecosystem growing, it shouldn’t be surprising that Grayscale is adding these assets to its balance sheet.

On Mondays, our ‘Scan The Week’ section is designed to show our community what events and headlines we will be keeping an eye on.

Tuesday, 5th October

  • ? BSV CoinGeek Conference
    CoinGeek is returning to the world’s financial capital to showcase the latest developments on the BSV Blockchain. If you’re in NYC, learn about solutions built on top of BSV across Supply Chain Management, Health Care, Global FinTech, Marketing, and many other industries to transform the way they do business.

Wednesday, 6th October

  • ? Chainlink Telegram AMA
    Originally announced in September 2021, the Chainlink and Sonar technical collaboration begins with Chainlink Price Feeds for Access to Real-Time Data. Now, join the Chainlink Community and Sonar Founders for a Telegram AMA at 13:00 UTC. 

Thursday, 7th October

  • ⚙️ Hedera Mainnet Upgrade
    Hedera will be upgrading Mainnet to v0.18.x on Thursday, October 7th 2021 at 16:00 UTC. It is estimated to take approximately 2.5 hours during which time all network services will be offline.

Friday, 8th October 

  • ?? US Jobs Report
    On Friday the jobs report will reveal the pace of economic recovery. It will take an incredibly low number of jobs added to delay the Fed from tampering its stimulus program in November.

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??‍♂️✍️ Stories in this newsletter were written by Kyle F., Misael Calleja, Nick T., Max P., Kimia K., Ellen B. and Koroush AK. Graphics were produced by Gerasimos P.

Not financial or tax advice. The content in this newsletter is for informational purposes only. Nothing in this email is intended to serve as financial advice. We are not financial advisors. Every investment and trading move involves risk. Do your own research when making a decision. See our important security disclaimers here.

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