17 June 2022
Here's your latest intelligence on the tokens and markets relevant to the Tokenised Earth Economy.
Warren Buffett is famous for saying, "Only when the tide goes out do you discover who's been swimming naked." Celsius, a CEX focused on offering clients attractive yields on their crypto by investing customers' money in highly risky DeFi protocols, is basically insolvent and fighting for its life to avoid liquidation. Users have been blocked from withdrawals, and anyone with liquidation risk has to weigh up if they should deposit more money into celsius to avoid liquidation but then potentially lose that collateral if celsius does go belly up. Celsius has around 2 million users and billions under management!
The contagion spread, and the large hedge fund 3 Arrow Capital, which once had over $18 billion under management, is mainly collapsing due to massive use of leverage. Famous for their big wins investing in the likes of Avax, Near, Aave, Starkware, Solana, Polkadot and many more, including Luna. They lost close to $600 million on Luna! 3AC is a massive threat to the markets for further pain. Part of their services to companies they invested in was outsourced treasury management. Protocols are complaining that they have gone radio silent and treasuries are at risk. 3AC holds prominent positions in many tokens due for unlocks soon; expect forced selling. They also hold a tremendous number of NFTs.
The macro-environment is as bad as the crypto markets. Japan is defending the peg of its bond at 0.25% as it keeps printing money while the rest of the world tightens up. The Yen hit a 24-year low against the USD! The FOMC meeting this week added another rate hike of 0.75%, the most significant in 28 years!
Is this capitulation? Are we at the bottom? No one really knows, as we have never had a bear market in crypto at the same time as traditional markets go into recession.
📈Reference Markets over the past week
📊Impact Markets over the past week
📉DAO Shares over the past week
ℹ️ Remember that DAO’s with a rebase mechanism should be valued on their treasuries, and market cap increases are a more important metric than token prices, as high yields try to outpace price fluctuations.
Earth State Opportunities
- Get Whitelisted for EarthFund’s first cause here.
- Get an Airdrop: Stakers of Osmo, Evmos and Juno can now claim the Diffusion airdrop. Head over to claim.
- Join PrimeDAO, rate tokens, up your tokenomics game and earn!
- Stake USDT/USDD on Tron and earn over 40% while the TronDAO defends the peg. They have deep pockets but this is a risky play!
- Play the popular wordle game on web3 and win $50 in Matic!
- Lend to off-chain companies in the real world using DeFi using Maple Finance. Earn sustainable yields at around 9% on USDC! This is a huge narrative.
- Apply for a grant through Toucan, supported by Coinbase Giving, if you’re working on a project that supports carbon supply or utility or makes ReFi accessible to more users.
- Trade: Hodl an index fund of BTC, ETH, LINK, and 50% stablecoins on GMX Protocol on Arbitrum and earn 18% yield paid in ETH!
- Give: Gitcoin Round 14 is live; check out some really interesting projects here. Pro tip: many of them are tokenless - airdrop, maybe?
🌍 For the Earth!
Earth State change is unstoppable, and so is the evolution of the crypto market!
Join the weekly Earth State Twitter Space every Tuesday at 15:00 UTC, where we discuss what's moving in ReFi and the Tokenised Earth Economy. This week, we'll be talking to John Richardson from Ethelo.
This article is strictly educational and is not investment advice or a solicitation to buy or sell any assets or make any financial decisions. For tax advice, talk to your accountant. DYOR – Do your own research.