🚀 Happy Ethereum ATHs! It is a glorious day for ETH bags and ETH bad hodlers respectively.
However, price action isn’t everything. In fact, money and funding is flowing into the space like NEVER before. This guide will show you how to prepare..
🥶 Facebook Gets Meta: Important Announcement for the Future of the Metaverse
💎 ALPHA GUIDE: How to Research Crypto Projects
🥩 Staking Quiz
🎧 Podcast Release: How to Profit from Virtual Land with DCL Blogger
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🙌 A Brand-New Facebook
In a play to be the messiah of the metaverse, Mark Zuckerberg announced today at the Connect 2021 Conference that Facebook is to be rebranded with a new name and a renewed focus on taking the evolution of the internet by storm.
Zuckerberg, CEO of Facebook, revealed yesterday that the social media outlet will be investing over $10 billion into its play for the metaverse.
As part of the rebranding process, Facebook will be known by the corporate name “Meta” to distinguish itself from its reputation as a one-dimensional social media platform.
Facebook’s Head of Metaverse Products, Vishal Shah, confirmed the company’s metaverse will support NFTs as a core integration.
Earlier this month, the social media giant was ordered to “immediately discontinue the company’s pilot of Novi”, its digital wallet, and cease all work on its Diem stablecoin project.
It’s clear that Facebook is a crypto-conscious corporation. With such big names doubling down on the future of a digital universe, it may be wise to take a longer look at the metaverse.
Want to learn more? Get started with our introductory guide to the metaverse.
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.
🧠 Ready, Set, Research
If making millions were easy, everyone would be financially secure. Crypto is no different. If you’re serious about uncovering hidden gems, there are a couple of critical steps that should never be overlooked.
Read the whitepaper! If a project does not currently have a whitepaper, read whatever authentic primary technical information is available.
Get involved with the community. By visiting the website and any Discord or Telegram channels available. Not only is community size a critical metric, but members can often answer questions and provide a sense of conviction among those interested in the project.
🚩Raise the Flag
If you still feel good about the project, it’s time to roll up your sleeves and get to work. To maximize your time, prioritize the identification of any red flags.
As you read the whitepaper, these key points will serve you well:
1️⃣ Vet The People: Who’s Who?
RESEARCH: The conspicuous absence of documentation on investors, advisors or team members doesn’t bode well for early-stage ventures. If you can’t find details on the development, take notice.
🧘♂️ TIP: If recognizable names like Alameda Research or Vitalik Buterin are involved in a project, it adds some legitimacy to any start-up.
RESEARCH: The project’s token should be easily identifiable in its function (why would anyone hold it?), liquidity, utility (what can I do with it?), and incentives (how can I benefit from it?)
🧘♂️ TIP: Looking at vesting or “lock-up” terms can offer valuable insight into the potential of a pump-and-dump scenario. If the project is primed for a rapid sell-off, it might not be the best idea.
RESEARCH: What’s the purpose of the project? Ideally, a start-up will address an identified vacuum in the crypto-space and face little competition.
🧘♂️ TIP: If the market is saturated by projects with similar purposes, or the use-case isn’t strong, another area must be quite exceptional to consider moving forward.
These principles should be vigorously applied when approaching any project in early stages, or those with lower market caps.
However, just because an established token has persisted value throughout weeks or months, doesn’t mean a healthy dose of research won’t pay off in the end.
SafeMoon is a cryptocurrency that launched in March and attracted attention purely because of its rising price.
Look at how the details surrounding this project hold up to scrutiny:
🚩 The owner has more than 50% of the liquidity.
🚩 The SafeMoon website has a history of going down and being unavailable.
🚩 The usefulness of SafeMoon is still unclear, with only vague long-term goals and a 3-page whitepaper.
Due diligence isn’t a crystal ball, so there’s no way to know if SafeMoon will skyrocket or crash. By identifying some key takeaways from doing sufficient research we equip ourselves with enough information to begin making a responsible decision.
Moonshots are few and far between. Getting in on the ground floor of a project before a 10x or 20x can make your portfolio go parabolic. Nothing guarantees a successful investment, but if you’re willing to put in the hours, time is on your side.
We’ve put together a check sheet as a starting point for developing responsible research habits.
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💧Stake Your Bets
Which of the following is NOT a risk and/or downside of staking your crypto?
Market Risk: The risk of the entire market crashing
Liquidity Risk: If the asset you’re staking is illiquid, converting it back to stablecoins or Bitcoin could present a challenge
Lockup Periods: occasionally, a requirement for staking is locking up your crypto for a fixed period of time anywhere from 24 hours to a few years. If you’re unable to sell your crypto due to the lockup period, you could lose money.
High Power Consumption: Staking requires a high power consumption from your personal computer
🎧 How to Profit from Virtual Land with DCL Blogger
DCL Blogger is one of the earliest NFT traders and content creators in the space. He continues to trade successfully and is working on several projects of his own.
4. High Power Consumption: Staking requires a high power consumption from your personal computer
This is actually not a disadvantage of staking but is more commonly a disadvantage of mining crypto.
Let's take a closer look into the differences between mining versus staking.
Mining works by competing to solve a complex mathematical puzzle, and whoever solves it first gets the right to add the next block to the blockchain.
Staking means those who have “locked” their coins away for a particular interval, the protocol randomly assigns the right to one of them to validate the next block
This actually requires significantly less power consumption compared to its mining counterpart.
If you are interested in learning more about staking, including how to do it yourself check out our Guide to Staking.
🌎🧘♂️✍️ Stories in this newsletter were written by Kyle F., Max P., Nick T., 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.
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.