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November 22, 2022

🥛State of the Market: When it rains, it pours

GM. This is the Milk Road. The daily newsletter that covers crypto like Ron Burgundy would.

You stay classy, San Diego.

Here’s what we got for you today: 

  • The State of the Market

  • Is JP Morgan launching a crypto wallet?

  • Quick Bites

  • Milky Memes

THE STATE OF THE MARKET

We’re only one day in, but boy it’s been a week. They say when it rains, it pours.

And right now…

Coinbase: 

The stock hit an all-time low of $41 yesterday.

Yeah, you read that right. You can now get one share of Coinbase for the same as Applebee’s 4 for $40 (IDK about you, but I double up on Applebee’s 2 for $20).

In hindsight, it was inevitable… 

Genesis:

Genesis is on the brink of collapse, reportedly now seeking an emergency $500m bailout.

This is what happens when you lend billions of dollars to a bankrupt hedge fund (3AC), swap $1b of Bitcoin for a failed blockchain’s stablecoin ($UST), and accept magic internet money ($FTT) as collateral.

Rumors are spreading on twitter that tomorrow is the drop dead date, so we’ll see how this plays out.

If they fail at raising, who knows what domino will fall next:

FTX:

  • Yesterday, we found out that Samuel and FTX bought a $16m vacation home for his parents

  • Caroline made Forbes 30 under 30 last year. She said she would have told her younger self to “be less risk averse”. Checks out.

  • Samuel is supposed to be testifying in front of the US Senate in December, which if he shows up, will be the first time he’s set foot in the US since the FTX collapse. Hopefully, he’s not able to leave this time.

And, judging by his running form, we’re not too worried he’ll be able to flee authorities.

This guy needs to get off of Twitter and in the gym. Maybe prison will help with his form 🤷🏽

JP MORGAN FILES A TRADEMARK FOR A DIGITAL WALLET

JP Morgan is run by Jamie Dimon. In the past he’s said:

  • I personally think that Bitcoin is worthless

  • Cryptocurrency has no intrinsic value

  • They (cryptocurrencies) are decentralized Ponzi schemes, and the notion that it’s good for anybody is unbelievable.

So it was a shock when this trademark hit yesterday.

The wallet isn’t just for crypto, but it does include virtual currency transfer + exchange, virtual checking accounts, and crypto payment processing. 

Add another tally to the JP Morgan crypto adoption tracker:

  • Partnered with Visa on October 11 to integrate JP Morgans’s blockchain product Liink with Visa’s B2B Connect network.

  • In May, they carried out an on-chain transaction involving the settlement of BlackRock assets

  • Opened a space in Decentraland

  • On November 2, JPM was the first US bank to perform an international currency swap

Men lie, women lie, Jamie Dimon lies, but the blockchain never does. 

TODAY’S EDITION IS BROUGHT TO YOU BY ROBOMOTION

A few gallons of milk before I started writing at the Milk Road I ran growth for a startup. 

I was good at the fun stuff. Targeting the right customer, writing cold emails, and closing clients. 

But I hated boring, repetitive work tasks like collecting and entering customer data. 

Now there’s a tool called Robomotion that would have made my life 100x easier.

It’s a robotic process automation (long for RPA) tool that can automate the boring, cumbersome parts of your workflow.

Start prioritizing your time and energy today.

Get the Black Friday deal for Robomotion (it’s a discount on top of a discount). 

QUICK BITES

Two Estonian citizens charged with a series of crypto scams totaling $575m. The business partners were responsible for launching a fraudulent ICO, bitcoin mining fraud, and raising $550m for a failed startup. 

U.S. Senators urge Fidelity to stop offering Bitcoin to customers following FTX and ask bank regulators to ‘review’ SoFi’s crypto listings. The FTX effect. 

Legendary toy maker, Mattel, is rolling out their own NFT marketplace. The first release will be Series 4 of the Hot Wheels NFT Garage set for 15 December. 

Bitcoin’s Market Value to Realized Value has fallen below 0.6 only twice in the past decade: in Jan 2015 and Dec 2018. Both of those instances were near a bear market bottom. 

Ethereum and Bitcoin are being shorted in record numbers. Short inflows represented 75% of the total inflows—the largest on record. 

NFT trading has remained strong despite the market uncertainty. OpenSea saw ~$40M in volume last week, Magic Eden ~$10.3m, and Blur ~$8.1m. 

MILKY MEMES 

That’s a wrap for today. Stay thirsty & see ya tomorrow!

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A ROADERS REVIEW

VITALIK PIC OF THE DAY

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 researchBut