🧘‍♂️Important Bitcoin Update

Market Meditations | May 2, 2022

Dear Meditators

An interesting weekend it has been! Power outages and hacks

Looking ahead into the coming week, a similar nervousness does not seem out of the question. Particularly if we consider that we have Federal Reserve meetings scheduled for tomorrow and the day after.

It is highly anticipated that Chair Jerome Powell will shed some more light on both the size and the rate of interest rate hikes.

These meetings have, in the last 6 months or so, had an impact on the crypto markets so we would be wise to have our guards up.

Today’s Meditations: 

  • BTC Technical Analysis
  • Deep Dive into Rari Hack
  • Overview of the Weekend Solana Outage 
  • Our Crypto Calendar of the Week 

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⏰ Top Headlines

? Down The Rabbit Hole We Go…


Macro Structure: If we lose $36k then $30k seems likely. Where ‘lose’ refers to a daily close at a minimum.

Key Support: $36k.

Key Resistance: 100 Day Moving Average, then $45k. After $45k we have $50k but this is a long way away.

Looking Forward: Test of the $36k seems likely.

⛔ Exploits Abound

The deluge of bad news continued to soak the DeFi world over the weekend. Announcements spread across Twitter Saturday, drawing attention to the latest attack.

  • Rari Capital, a DeFi protocol running on Ethereum offering lending, borrowing and yield farming for decentralized finance, lost $80 million to an exploit Saturday, bringing its TVL down to $315 million according to DeFi Llama.
  • Rari Capital announced Saturday that borrowing had been globally paused due to an exploit affecting various Fuse pools.
  • Peckshield referenced a bug common to “all Compound forks in EVM-compliant chains” as potentially responsible for the theft.
  • This isn’t the first time Rari has experienced attack by exploit. In May last year, an $11 million exploit was executed, causing the protocol’s token to plummet in price.
  • Fei Protocol, a stablecoin protocol which merged with Rari in December, offered the attacker a $10 million “bounty and no questions asked” in exchange for returning the remaining users’ funds.

We might sound like a broken record when we talk about the importance of due diligence, but hacks and exploits seem to be breaking records left and right. Whenever assessing an investment opportunities, it’s never safe to assume a project is secure.

We read security compromises all the time, but for every headline, countless horror stories affect users every day. Minimise your chances of becoming a cautionary tale by checking your security habits here.

? Lights Out For Solana

You may remember when Solana went offline late last year in September. Solana just experienced another outage over the weekend. At the time, it was unclear why it was happening. Let’s take a closer look to see what happened on Saturday.

  • Solana went offline at around 4:30 p.m. EST. I went back online at around 11 p.m. EST on Saturday after a successful cluster restart.
  • In a Twitter post on Saturday, they said, “Solana Mainnet Beta lost consensus after an enormous amount of inbound transactions (4m per secondflooded the network, surpassing 100gbps.
  • It turns out that volume was bots swarming the popular NFT minting tool, Candy Machine, earlier on Saturday with an “unprecedented tsunami of inbound traffic.”
  • The outage led to a brief drawback in the SOL price. Solana’s native dipped to a 24-hour low of $83.13 roughly 3 hours into the outage before making its way back to $89 (according to CoinGecko).
  • Solana core developers have still not figured out what happened on Saturday. More specifically, how the “bot attack” overcame the existing safeguards.

Can an outage like this happen again? Of course! Outages, while few and far in between, are something one must be conscious of and plan accordingly.

Monday, 2 May

  • Subme Burn

    Subme’s monthly burning of $SUB tokens throughout 2022 continues this week. Millions of tokens will be burned throughout the course of the year.

  • ❌ Rari Post-Mortem

    Rari Capital’s Fuse Platform’s security compromise resulting in $80 million stolen will be the topic of a post-mortem call at 5pm PT.

Tuesday, 3 May

  • Kava Mainnet Launch

    Completion and full launch of the Kava Network, featuring co-chain architecture of Ethereum and Cosmos co-chains. Developers will be able to build in both the EVM and Cosmos SDK environments.

Wednesday, 4 May

  • Akash Live Stream

    Accompanying the launch of Akash Mainnet 3, the Akash team is hosting a Chia Project and Akash Network update on plotting and farming Chia on Akash at 9 AM PST.

Thursday, 5 May

  • Nyan Heroes Giveaway
    Last day to qualify for the Nyan Heroes Giveaway. The Giveaway is being held to celebrate the $NYN IDO Next Week.

Friday, 6 May

  • Employment Situation

    The U.S. Bureau of Labor Statistics will release its Employment Situation report at 8:30 AM

  1. Watch our How to Get Rich Trading Crypto Course if you struggled with today’s technical section.
  2. Read the following Technical Analysis guides for more insight:
    1. Moving Averages 
    2. Fibonacci Retracement  
    3. Volume and Open Interest  

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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 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.

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