The Good – July 29, 2022

Before we dive into the good news in the crypto space (and there is), it’s important to remember that the only thing bearish about cryptocurrencies is the price action. Adoption, attention, use, and interest have only grown and continue to grow. 

The image above is from the on-chain analytics service, IntoTheBlock. The active Dogecoin ($DOGE.X) addresses have exploded by nearly 265%. Why is this a big deal? Because Dogecoin represents a part of the cryptocurrency market that is the most speculative: memecoins.

 If there is renewed interest and new participation in cryptocurrencies like Dogecoin, some analysts view that growth as a warning sign of a new ‘altcoin season’ developing. But Dogecoin isn’t the only memecoin finding buyers. 

According to WhaleStats, Ethereum ($ETH.X) whales have increased Shiba Inu ($SHIB.X) holdings from $736,000 to a whopping $5 million – nearly +580% higher over 24 hours. 

On the regulatory side, The Law Commission of England and Wales recommended that a new category of property is needed to provide legal protection for digital assets. The new category’s label is data objects. Existing private property laws would then extend to cryptocurrencies. 😁

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Technically Speaking – September 28, 2022

September is almost done, with October just around the corner. September has historically been a weak one for the crypto market. And unless something dramatic happens between now and Friday, this will be the sixth consecutive September that has closed in the red for the crypto market. Let’s look at the Total Market Cap chart. 

Today, September 28, 2022, is an important date from a Gann Analysis perspective. It is the final date in a massive cluster of time cycles that began on September 19 and culminated today. What does that mean? It means there is a high probability of a very powerful move and trending move beginning anytime between now and October 5.

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Technically Speaking – September 30, 2022

Polygon (MATIC)

No, the chart below is not a bunch of hugs and kisses. The chart style is known as Point & Figure, the oldest technical analysis chart style in existence. The primary difference between Point & Figure charts and Japanese candlesticks or American bar charts is Point and Figure is a price action only chart. There is no time or volume. 

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What Is Staking?

What is staking? Basically, it’s you putting up your crypto (your stake) to help validate or secure a blockchain’s transactions. You get rewarded for supporting the network. However, some jurisdictions may view the reward as a type of interest generation, which makes some regulators start getting an itchy trigger finger.

For example, you can stake Cardano’s ($ADA.X) native token ADA in their Daedalus wallet for a 5-6% RPY (Rewards Per Year), but you need to find a stake pool that isn’t saturated to get the highest rewards and monitor that pool every once and a while to make sure you don’t need to restake somewhere else later.

Not everyone wants to do that – especially not across five or ten different cryptocurrencies. That’s why many cryptocurrency exchanges now offer staking right on their platforms – but the rewards can be different. We’ll get into that part a little later.

Staking is quickly becoming a title that encompasses three primary ways to generate passive income in the crypto space: staking, lending, and DeFi. While all have the intended purpose of generating passive income, they are different. 

DeFi and Lending

Lending is, well, just how it sounds – you get a return on lending your crypto or stablecoins for lending protocols. And DeFi includes a collection of both staking and lending, but also rewards for providing your crypto as liquidity.

In February 2022, crypto lending platform BlockFi agreed to pay a whopping $100 million fine for “…failing to register the offers and sales of its retail crypto lending product.” 

In a nutshell, BlockFi used to allow US customers to earn a variable interest rate on certain cryptocurrencies that they (customers) put up for lending. 

In the DeFi space, similar reward structures exist for not only providing your crypto for lending but for providing liquidity. But that’s a massive topic that is difficult to summarize and is something the Litepaper will tackle in the future.

High monthly yields are not universal

There are a large number of platforms and exchanges that offer staking rewards – but they can be vastly different. The table below shows just some of the rewards for Kraken, Binance.US ($BNB.X), Coinbase ($COIN), and Nexo ($NEXO.X).

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