The SEC Out To Burn The Earn

If the drama between Genesis (a subsidiary of Barry Silbert’s Digital Currency Group) and Gemini (the Winklevoss twins’ cryptocurrency exchange) could get more dramatic, it just did.Β 

If you’re unfamiliar with the Twitter war between Silbert and the Winklevoss twins, here’s a summary. πŸ—’οΈ

  1. Sam “I’m Sorry” Bankman-Fraud’s FTX collapse in November 2022 brought down almost everyone and anything in the crypto leverage/lending path.
  2. One of those objects in the avalanche of FTX poo was Gemini’s Earn program.
  3. Genesis then used the loaned crypto in various ways to generate revenue and pay interest to the Gemini Earn lenders.

What is Gemini Earn?

In a nutshell, Gemini offered customers a program called Gemini Earn where customers could deposit crypto into an ‘Earn’ account and receive up to 1-ish to 8-ish % APY on $BTC.X, $ETH.X, $USDC.X, and other various altcoins and stablecoins. Interest rates were/are crypto-specific. 🌰

But then, on November 16, 2022, Genesis tells Gemini Earn customers the legal equivalent of, “uh, ya, we can’t give you your stuffs because we don’t have your stuffs.”

Gemini Responds:

Fast forward to Jan 2, 2023, Cameron Winklevoss Tweets an open letter to DCG’s Barry Silbert:

You can read the replies from Silbert and Winklesvoss in the above Twitter thread.

While Gemini and Genesis duke it out, the SEC also jumps into the fight. πŸ₯Š

Yesterday, the SEC issued a press release notifying the public that they’ve charged Genesis and Gemini for the unregistered offer and sales of securities to retail investors through Gemini’s Gemini Earn program.Β 

From the Press Release, SEC Chairman Gensler was quoted saying, β€œWe allege that Genesis and Gemini offered unregistered securities to the public, bypassing disclosure requirements designed to protect investors,” said SEC Chair Gary Gensler.

β€œToday’s charges build on previous actions to make clear to the marketplace and the investing public that crypto lending platforms and other intermediaries need to comply with our time-tested securities laws. Doing so best protects investors. It promotes trust in markets. It’s not optional. It’s the law.”

We’ll keep you updated as this story progresses. πŸ—žοΈ

Technically Speaking – January 6, 2023

Speaking of $ADA.X.

From a technical analysis perspective, Cardano looks messier than a floor after a Roomba that’s just finished a six-hour cleaning cycle and didn’t realize it started that cycle by mowing over, repeatedly, a pile of freshly laid Tibetan Mastiff poo, spreading a trail a horribleness over those six hours that a 3-year old who just discovered poopie can be used as finger paint would struggle to compete with. πŸ’©

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Stocktwits Top 25 FAQ

This is a quick summary of how the Stocktwits Top 25 indexes are constructed, formatted, and released each week.

First off, these indexes are purely objective exercises. We’re not subjectively picking stocks or saying if individual stocks are good or bad. Instead, we provide an updated list of the market’s best-performing stocks (year-to-date) every week. It’s a scoreboard of the market’s current trends and a way of tracking their changes over time.
The lists are comprised of the index’s underlying holdings. For example, the S&P 500 uses the S&P 500 stocks. The only time we adjust the list’s underlying holdings are when the asset managers running these indexes reconstitute them (usually 2x a year) and when individual stocks drop off because of a delisting, acquisition, or any other reason they might stop trading.
Next, we use Google Finance to pull the data in our tables automatically. The year-to-date formula calculates each stock’s return from its closing price on the last trading day of the previous year. The week-to-date formula calculates each stock’s return from last Friday’s closing price to the current Friday.
Once that data is pulled each week, we adjust the tables to include the top 25 stocks in each index by year-to-date performance. Then, we list which stocks made it and which fell out of the top 25 that week.
The “momentum meter” for the S&P 500 list is the average week-to-date performance of the list’s 25 components. And the “Top Dawg” of the week is simply the stock with the largest week-to-date gain across all three lists.
After all that, we manually review the entire post and deliver it to your inbox every Saturday at ~3 pm ET.
This post was created on 03/03/2023 and will be updated if/when the process changes in the future.

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The Good, The Bad, And The Ugly – October 28, 2022

Make sure you check out the TL;DR (Too Long;Didn’t Read) below each section if you want to avoid the technical analysis mambo jumbo.Β 

The Good

Who won the award for best performer of the week? Hint: the world’s richest man Tweets about this crypto every once in a while and has publicly supported its use – you can even buy an electric car with it.Β 

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