Today’s edition is brought to you by Harpie – the leading crypto security tool that protects your wallet from theft with always-on threat detection and real-time fund recovery.
GM. This is Milk Road, where every Friday Eve brings a crypto knowledge breeze. 🌬️ Here’s the forecast today:
- PayPal’s PYUSD is live on Solana: Why you should care 💳
- What’s inside the Milk Road PRO Portfolio? 👀
- The looming debt bubble 💭
- Largest bank in Singapore is a whale 🍪
Prices as of 9:30AM ET. Click here for our Fear & Greed Index
PAYPAL’S $PYUSD IS LIVE ON SOLANA: WHY YOU SHOULD CARE 💳
Whether you’ve seen the chatter on Crypto Twitter or you’re just hearing it now, this is huge news.
PayPal’s stablecoin $PYUSD, which launched on Ethereum nearly a year ago, has now landed on Solana.
Why care about a stablecoin? Because it’s just the tip of the iceberg.
$SOL holders, buckle up—Solana may become the hottest spot in crypto!
Since last week, all hype has been around Ethereum, especially with the ETF approval.
In fact, we received a bunch of Qs for yesterday's Milk Road PRO AMA, asking if selling $SOL to buy $ETH was a good play. 🤔
But following the herd in crypto may turn you into exit liquidity so let’s take a peek into the kitchen to see what Solana’s cookin’ up
The Main Course: An assortment of web2 payment superheroes are joining forces with Solana and we couldn’t be more bullish about it.
1/ PayPal, the OG of online payments, wants a bigger slice of the stablecoin pie. With their massive user base, this will undoubtably bring more action to the Solana Blockchain.
Why did they choose Solana? Well, this tweet sums it up pretty well:
2/ Stripe introduced a new checkout option last month, enabling stablecoin ($USDC) payments powered by Solana.
Crypto users will seamlessly use their $USDC to pay across 1.3+ million active websites globally.
This means the US fintech giant is bringing us closer to everyday purchases via Solana’s blockchain—ka-ching!
3/ Visa expanded its stablecoin settlement capabilities, last year, on to the Solana blockchain
The payment card provider now handles over 5,000 transactions per second. Which makes Solana, the king of TPS, the perfect partner here.
But wait, there's dessert!
Just this week, two major crypto protocols launched on Solana:
1/ GMX: This is a decentralized derivatives exchange that offers lightning-fast trading and low fees.
With over $40 billion in total trading volume and half a billion dollars in total value locked (TVL), $GMX is perfectly poised to bring a surge of activity to Solana.
2/ LayerZero: Think of it as the universal translator for blockchains. It makes cross-chain communication as easy as sending a text.
By effortlessly connecting different networks, it is set to make Solana the life of the party with tons of seamless activity.
PLUS: Rumor has it, that other Ethereum heavyweights like Ethena, Aave, and Pendle are eyeing Solana for expansion.
And there's not just talk about Solana heating up. Yesterday, we saw action as Circle minted $250M $USDC on the blockchain.
They’re loading their milk jugs, gearing up for a wild surge in Solana’s activity.
Milk Road Take: Solana's getting a major glow-up with big players jumping on board, proving it's a speedy, high-performance blockchain.
This influx of major web2 and web3 companies highlights Solana's growing reputation for handling massive volumes quickly and cheaply, attracting both users and developers.
With stablecoins like $PYUSD and $USDC, it's making crypto as easy as swiping your card. Solana's flywheel has just started, so $SOL holders, get ready for liftoff!
Which L1 powerhouse are you cheering for?
A/ $ETH - the OG
B/ $SOL - the speed demon
C/ Other
Hit reply and let us know your pick with some spicy comments
BILLIONS ($) IN CRYPTO IS STOLEN EVERY YEAR
The future of finance shouldn’t feel unsafe, but with billions ($) in crypto stolen every year, the threat of losing your assets to increasingly advanced attacks makes crypto theft the #1 concern amongst new and experienced users alike.
Harpie is on a mission to make crypto more secure.
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Backed by trusted names like Coinbase and OpenSea, Harpie is the security solution you need to safeguard your wallet and protect your crypto from becoming a part of the billions ($) lost to theft every year.
And best of all? Harpie is free.
THE REVEAL OF THE MILK ROAD PRO PORTFOLIO 📊
Our mission is to help you invest successfully in crypto. What better way than showing you our own moves?
Say hello to the Milk Road PRO Portfolio – an educational resource designed to show how we would manage our crypto investments, allocate capital, take profits, and stay informed in the crypto game.
First up, this is totally different from the old Milk Road Public Wallet. This is a simulated portfolio reflecting the Milk Road PRO research team's view of what an ideal crypto portfolio could look like.
Here’s what’s inside:
- List of investments
- Percentage allocation (%) for each asset
- Context for why each asset is included
- Coming Soon - Details on how we put our investments to work onchain (e.g. earning yield, airdrops, etc.)
PLUS: A color-coded system to indicate status for each investment:
- 🟢 Good time to buy
- 🔴 Time to sell
- 🟡 Hold the asset
- ⚪ Watching a new asset
We will be updating the Milk Road PRO Portfolio weekly, with all our moves shared in Thursday's newsletter.
We’re not launching this resource so you can copy the trades. This is to provide educational insights on building an investment portfolio that performs well this cycle, while trying to minimizing risk.
Important: This resource & weekly updates are for Milk Road PRO members only.
Upgrade your membership to gain access — you will find the Milk Road PRO Portfolio in your welcome email or on the thank you page after payment.
THE LOOMING DEBT BUBBLE 💭
Markets have been green, but is everything really hunky-dory with the economy? Doesn’t seem like it on the outside!
Let’s peel back the layers and dive in.
1/ Credit Card Delinquency & Defaults 📈
Plastic card delinquencies and defaults have been rising!
- Delinquencies (late payments) hit 8.9% in Q1 2024, doubling from ~4% in 2021.
- Defaults (failure to pay at all) are also climbing fast, doubling in 3 years, and soaring to levels not seen since the 2008 Financial Crisis. 💳
With record-high debt and high rates, US consumers are feeling the burn—ouch! 🤕
2/ Excess savings 📉
From early 2020 to August 2021, the US economy had a joyride, piling up $2.1 trillion in excess savings.
But now, the fun's over and the reality check is here:
- Households have been burning through those savings at $70 billion per month.
- March 2024 hit rock bottom with savings plunging into the negative at -$72 billion.
The stimulus party is over, and the hangover is brutal. 🤒
3/ Credit card debt & savings rate 💳️
US credit card debt has skyrocketed by $330 billion to a record-breaking $1.1 trillion.
Meanwhile, the US savings rate has nosedived to 3.2% in March, the lowest since November 2022.
Saving money is now a luxury most can’t afford. 💸
4/ US National Debt 🇺🇸💣
Fun Fact 🚨: The U.S. National Debt is rising by $1 trillion about every 100 days!
Check this out:
That's a staggering $34.7T and climbing. Each citizen owes $103K, and each taxpayer is on the hook for $267K. Talk about a heavy burden!
I know what you're thinking: Holy cow, Milk Man, why are you such a buzzkill?
Well, the news isn't all bad, as long as you're investing. Time in the market > timing the market.Remember how we’ve been saying bad news is good news?
Well, t he money printer isn't directly going BRRRRR but we’ve got the next best thing.
Starting yesterday, the US Treasury initiated a buyback program, injecting about $2 billion into the economy every week. 💵
This means fresh dollars can flow into the economy as if the printing presses were running again.
Cheaper debt and more money for institutions and individuals to invest with could lead to skyrocketing market conditions... and maybe even some new Lambos on the road. 🚗💨
BITE-SIZED COOKIES FOR THE ROAD 🍪
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Largest Bank in Singapore is an ETH Whale. DBS, Singapore's largest bank, holds nearly $650 million in Ether (ETH), making it one of the largest holders of ETH. Their blockchain address has reportedly generated over $200 million in profits from these holdings. Cha-ching!
BlackRock Files S-1, Launch of ETH ETF imminent? Yesterday, BlackRock updated its Form S-1 for its iShares Ethereum Trust (ETHA), potentially paving the way for the approval of its ether ETF in late June or early July, according to the ETF bros Eric and James.
Ethena Live on BLAST Network. Ethena Labs has launched its USDe and sUSDe stablecoins on the Blast L2 network, integrating with multiple Web3 protocols to offer new services with significant benefits for users in terms of rewards and leverage.
NYSE Crypto Trading on the Horizon. NYSE President Lynn Martin and Bullish CEO Tom Farley discussed NYSE offering cryptocurrency trading, pending clearer regulatory guidance. Their optimism reflects the growing interconnection between TradFi and DeFi.
Wanna team up with the Milk Man? We currently have 3 positions open – check ‘em out and apply here!
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ROADIE REVIEW OF THE DAY 🥛
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In May 13th’s daily we asked you to reply on whether or not you are stacking crypto ETFs? And here is the reply of the day:
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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.
