📈 Web3 TLDR: 👑 Crypto Kings belongings seized
The Web3, NFT and Crypto Newsletter
Here Are The Things You Need to Know:
Current Price: $19,220 - 7D Change: -2.51% - 30D Change: -12.05 - YTD Change: -126.70%
Current Price: $1,357 - 7D Change: -12.45% - 30D Change: -27.07% - YTD Change: -135.21%
Disclaimer: This newsletter is not financial advice. Always do your own research
This edition is sponsored by TechMango.
- 🥶 Celsius Trying To Climb Out Of The Cold?
- 🤑 Web3 TLDR Opinion: Use Stablecoins To Retain Your Invested Value
- 🌐 Post Merge Update
- 👑 Crypto Kings belongings seized
Post Merge Update
Job of the week
AND NOW THE NEWS
Celsius Trying To Climb Out Of The Cold?
A recently leaked recording of Celsius' leadership call is shining some light into how they might get into the good graces of their customers again. A proposal for paying back customers might include giving wrapped assets that can be traded on other platforms. Here is the general breakdown:
1) Celsius' remaining funds would be allocated into certain wallets
2) Then issue Celsius-wrapped tokens, known as Cx tokens, to represent the ratio of how much the firm owes to how much it has on hand.
Ex. Customers waiting to redeem their bitcoin will receive CxBTC or CxETH tokens.
The other option is to decline the wrapped token, and wait for a larger payout when additional revenue is realized. As markets go up, any assets held by Celsius will go up as well.
I find this to be an interesting idea, but will depend on the market demand for Celsius-wrapped tokens. If Celsius is able to clear all Chapter 11 hurdles, they might end up being bullish and the wrapped tokens might increase in value as well. Even waiting for the larger payout could be great too. As long as Celsius has a plan to pay back their loyal customers, unlike some of the other disgraced DeFi lenders in the last 6 or so months, then I guess all we can do is just hope it comes to fruition some day.
Web3 TLDR Opinion: Use Stablecoins To Retain Your Invested Value
*Reminder, this is not financial advice and I am not a financial advisor. Always do your own research when investing*
More economic downturn this week is killing all markets, and we're definitely feeling the pain in crypto world. ETH is down to its' lowest in months, along with BTC and almost every other token out there. So what is a sad, regretful token holder supposed to do? Rely on Stablecoins, of course! Before you read further, take some time understanding chart basics and price trends. Cointelegraph has an excellent 101 (seems more like 1001) guide on reading charts, but could be a bit overkill for the average novice. However, if you're in it for the long haul, might be a great read to get another notch on your crypto-knowledge belt.
Now, assuming you have basic knowledge of Stablecoins (TLDR; coins that are pegged to fiat, like the US dollar, and are very over-collateralized in order to keep prices as stable as possible), they are the best intermediary between coins/tokens and fiat. In order to retain value in a downtrending coin/token before Stablecoins were conceptualized, one would have to find a token that is either stable in price or in an uptrend swing and swap to that coin/token. However, there is no guarantee that token won't drop in price over time either. So your other option is to use an exchange (like Coinbase) to sell your token for fiat. However, there is a cost associated with that, including a possible 20% Capital Gains tax. That's a lot of money to lose JUST to retain the value on your invested money.
Now introducing Stablecoins. Stablecoins allow you to harness the stability of fiat, and still keep your investment in the crypto arena. This means you don't have to worry about the token going down in price (except for poorly executed Stablecoins such as Terra) and you don't have to pay exorbitant taxes and fees. Not all Stablecoins are created equal, but the arguably best one based on collateralization ratio and market cap/supply is USDC.
If you decide to cut your losses and swap your value-lost token to USDC (or any other Stablecoin you wish), you can also find lender or staking platforms for a decent APY via directories like DeFiLlama or Coindix. This is a great hibernation strategy while we all wait out this crypto winter. You let your money earn while while the USDC token itself stays pegged to the dollar (hopefully). Are there risks? Yes, of course. Depegging, and pool liquidity imbalance issues could make you lose some of your invest amount, but the token itself should not lose value, by design.
Did all this go over your head? It's ok, we are still working on a TLDR style guide to give you everything you need to succeed in DeFi soon!
Post Merge Update
The price of ETH fell a little post merge to much disappointment to a lot of investors but a fizzle and a steady price is good news in the crypto world. In a space where volatility has helped crypto sky rocket, it has also seen it drop 80% over a week.
The merge was not just about money and value. It stabilized (and legitimizes) the network which real value is the ability to build and host smart contracts. Ethereum has the potential to become the backbone of the next generation of the internet and at its previous cost and need of power and computers, it was never going to be able to scale. Now that the merge has brought down the core horse power needed. the platform is ready to host dApps, DAOS, tokens and transactions which will drive future adoption.
Once the network grows, the price will grow with it. Give it time!
Written by: WarBiscuitNFT
Crypto King's Belongings Seized
The Royals are in the News again. A 23-year-old Canadian Aiden Pleterski who calls himself the "Crypto King" reportedly had $2 million worth of assets seized by the government.
The assets include a Lamborghini, two McLarens, and two BMWs,
He is being sued over allegations he defrauded investors. Investors told the publication that at least $35 million given to Pleterski's company, AP Private Equity Limited, went missing. Twenty-nine creditors have a bankruptcy proceeding against Pleterski, and say he owes them almost $13 million.
One Last Thing...
Remembering the good old days...
Bringing it back 😮💨
— Austin (@austinonchain)
Sep 21, 2022
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