🧘‍♂️ALERT: Crypto Secrets Leaked

Market Meditations | February 11, 2022

Dear Meditators

Our recent podcast with Diran Li, Head of Data at Messari stood out to us in particular. Incredibly valuable insights we were keen to share also in written format. As with most impressive individuals, his tips are based on actions that created his own success in life.

Today’s Meditations: 

  • Top Headlines 
  • Forbes Updates
  • Our Game Changing Podcast with Diran Li
  • Latest Crypto Developments in the United States

⏰ Top Headlines

? Forbes to Receive Crypto Binancing

Forbes, one of the oldest and most respected print and digital publishers, is on the receiving end of a $200 million strategic investment from the world’s largest cryptocurrency exchange.

  • Binance CEO Changpeng Zhao may be posturing to secure a foothold in the content generation market in a play to prepare for the inevitable rise of Web3, in which content looks to play a pivotal role.
  • Binance’s money is buying one of the top two biggest owner seats of Forbes, set to be listed on the New York Stock Exchange under the ticket FRBS, in addition to two out of nine director positions.
  • These funds will aid Forbes in merging with a special purpose acquisition company (SPAC) in the first quarter of this year.

One of the most predictable arguments crypto opponents adopt is the claim that these assets lack true utility and are purely speculation with themes of gambling or Ponzi mechanics.

Web3 could be the use-case to pioneer blockchain assets into an irrefutably integral role as the backbone of the internet.

?‍♂️ It’s Ok to Get Rugged – Seriously! 

Diran, Head of Data at Messari learnt 3 valuable lessons when he first stepped into crypto:

  1. Be proactive. Diran began investigating crypto before he moved into it full time. He explained that building side projects can be a great way to get started in the crypto space. For it allows you to focus on what you love doing whilst not incurring the risks of going full time.
  2. Take risks. Of course, as your interest in an area grows, so too does the temptation to go full time. When the time does come and you have weighed the associated risks and advantages, taking risks is essential. Particularly when you are young. If the risk does not pay off, you will have learned valuable lessons and will be able to look back with no regrets.
  3. Combine passion and skill. In order to be successful, find the intersection of what you are good at, what you are interested in AND where there is potential in the market. For Diran his background was in providing good quality data for large organizations and his interest was providing greater context in the crypto market.

The next few lessons became apparent to Diran when working at Messari:

  • Conduct due diligence. When vetting a project Diran takes a three pronged approach. He considers:
    1) Cryptoeconomics (economics of the token)
    2) The Networking Effect (the strength of the community / marketing)
    3) Game Theory (how market participants will interact with any given project, especially whales)
  • Understanding data. There are two types of data:
    1) Qualitative (descriptive, such as whitepapers)
    2) Quantitative (such as TVL or price, which can be measured in numerical values)
    For qualitative data he recommends platforms such as Delphi and the Block, for quantitative, Dune / Nansen. We can also add Messari onto that list as one of the top data providers in the space.

Diran was also acutely aware of the fact that crypto markets can be challenging. He urged that it’s okay to get rugged! If this happens, go back over the on-chain data and see who made money and who didn’t. If you follow the actions of those that made money regardless of the rug, you may be able to replicate that yourself.

He also explains that we shouldn’t shy away from the challenge. Diran thinks that everyone needs an element of war and peace in their lives. War to push through your limits and peace to gain an element of calm.

And there you have it. Brilliant tips to navigate the crypto space. Diran still thinks we are incredibly early in the grand scheme of crypto. Whatever the current market cycle is, he is certain we are moving in the direction of decentralization and adding value to digital lives through scarcity, true ownership and an improved ability to organize.

₿ The Rise of Crypto

The State of the Union may not have been focused on crypto yet but the states in the Union certainly are focused on crypto.

  • New Hampshire has created a state commission to study cryptocurrencies and their impact. They are also focused on what changes in legislation may be necessary to govern the digital asset space.
  • bipartisan bill was introduced in Tennessee that will allow the state, counties, and municipalities to invest in cryptocurrency and NFTs.
  • Arkansas recently announced an initiative to bring tech professionals and entrepreneurs to their state by offering them $10,000 worth of bitcoin.
  • Arizona introduced a bill to accept bitcoin as legal tender (although this bill is unlikely to pass).
  • Wyoming developed a charter for banks that deal primarily with digital assets.
  • Texas & Kentucky are offering generous tax breaks for crypto mining operations that spend big in their states.

These are just a few of the states that are adapting to the digital revolution, not to mention the nations that are adopting crypto as legal tender.

  1. Watch the podcast with Diran here.

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

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. 

Disclosure. Some of the links we’ve included are affiliate, they give you rewards and discounts and earn us a commission. Additionally, the Market Meditator writers hold crypto assets. See our investment disclosures here.