🥛 Wtf is a Stacks token? And why is it pumping?

  • February 23, 2023
  • 4 Min Read

GM. This is Milk Road. We’re the crypto newsletter that’s like the bacon in a BLT; without us, there’s no sandwich.

Here’s what we’re serving up today:

  • WTF is Stacks and why is it up over 160%?
  • What Tezos & Google’s collab means
  • Coinbase’s new regulated trading platform
  • A 546,000% return on investment

WTF IS STACKS AND WHY IS IT UP OVER 160%

There’s a new token taking crypto by storm: Stacks (STX). It’s the native token for the Stacks Network, a so-called Layer 2 network that sits atop Bitcoin’s own (L1) network.

Over the last week STX is up 163% to about $0.87 and has regained a market cap of about $1B. #ThreeCommaClub

So wtf is the Stacks Network and why is the token up so much? Two reasons, friends:

1.) Stacks Network powers NFTs on Bitcoin

Cypto’s oldest blockchain is hot for NFTs—“digital artifacts” if you’re nasty—and more than 160,000 digital artifacts have been created on Bitcoin in the last month. 

Call it a Gold Rush of sorts. If Bitcoin NFTs are the gold, then Stacks is the shovel. Built on top of Bitcoin, Stacks lets developers create and deploy smart contracts, which power stuff like NFTs, DeFi, etc. 

Before this, Bitcoin was principally used for monetary transactions. If you wanted to build an app, you’d go to another blockchain like Ethereum or Solana

Stacks changes this. As the hype for Bitcoin NFTs and DeFi apps goes up, so goes the price of Stacks’ native token. 

But the “cherry on top” is…

2.) Stacks is SEC-approved

STX was the first-ever token offering that received approval from the SEC back in 2019. 

Not only that, but Stacks was later deemed “not a security” in 2021. This means that investors can legally trade the STX token on U.S. crypto exchanges.

Stacks is therefore cool with the SEC, which is kinda like being the child of a diplomat back in high school. No matter what you get into, you got that immunity, baby!

Can STX keep the momentum going? That’s a question of whether enough people believe in the future of smart contracts on the Bitcoin blockchain. So far, it’s looking good.

CHANGE YOUR LIFE WITH MiSED

It's hard to stay positive in the middle of a crypto bear market. 

Our portfolio's are down >50% and every day a new exchange or NFT project rugs their community. 

Believe it or not, there is now a Play to Earn NFT game helping holders control their mindset to live their best life. 

The game is called MiSED.

MiSED helps you live a better life with interactive gameplay. 

You walk around the virtual world and come across obstacles. Each obstacle ‘educates’ you so you can get the best out of your memory, imagination, and reason.

By buying the MiSED NFT you get: 

  • Access to a private auction platform where you can exchange in-game currency for real life products, like the Titanium Racing Bicycles.
  • VIP access to digital and real life events & fairs with all the companies who joined the auction platform.

Plus, you can request tailor-made NFT or physical art piece from MiSED's NFT artist. 

But the mint is coming up fast.

Leave your wallet address on the mint page so you can become an OG member.

I want to live my best life

GOOGLE AND TEZOS ARE COOKIN'

Are you caught up on the latest episode of the Great Tezos Bake Off?

Google Cloud will be the first major cloud computing platform to be a validator, or “baker” (as stakers are called), for the proof-of-stake network. Thomas Kurian, this trifle is delicious, you’ve earned a Hollywood Handshake™.

As a reminder, in a proof-of-stake network validators are used to verify transactions on blockchains and create new blocks. (As opposed to crypto miners in a proof-of-work network.) Anyone can become one, as long as they stake their crypto as collateral.

Why become a validator? Because when you’re chosen to verify a transaction, you get a nice return. Plus all stakers get a say in making decisions that are implemented in the network.

Because of the partnership, Google Cloud and its users will become “bakers” and gain access to the Tezos blockchain to build DeFi apps. (Google Cloud likely isn’t involved in having a vote in network decisions right now, though.) Tezos bakers meanwhile get to set up nodes—that’s the tech that validates transactions—using Google’s cloud platform.

Google’s deal with Tezos is a sign that Web2 giants see Web3 players as partners for the future, not successors. It’s a win for both sides, giving each credibility among participants in the other community.

And there are some past examples to draw on: Google Cloud has been running nodes for the Ethereum and Solana networks for some time.

Investors are keen on the team-up. The price of the native Tezos token, TXZ, jumped about 4% in the wake of the news, to $1.28.

ANOTHER CRACK AT A FEDERALLY-APPROVED EXCHANGE

The SEC hasn’t overtly blessed a crypto exchange, but if a “Flash Boy” gets his way, it just might.

The chairman of the U.S. stock exchange IEX, Brad Katsuyama, has reportedly partnered with Coinbase to create a digital assets trading platform that would be the first to receive explicit approval from SEC chair Gary Gensler.

According to a Fox Business report, IEX has met with the SEC to review such plans. It’s not the first time IEX sought direct federal approval for a new crypto exchange—the first attempt involved partnering with Sam Bankman-Fried’s FTX. (Until its November implosion, anyway.)

The Milk Man’s Take: This is the latest example of crypto players trying to ensure that they can do business without fear of later SEC rule violations. Gensler has made it clear via previous public statements that illegal, unregistered securities trades are not his cup of tea. Perhaps Coinbase, known for dotting its I’s and crossing its T’s, will do the trick.

MILK AND COOKIES

Trademark Thursday. Lacoste filed trademarks for crypto transaction software and virtual clothing. GM filed trademarks for Chevrolet & Cadillac NFTs. Kyrie Irving filed trademarks for NFTs for his “No Concern” brand.

A Taco Bell metaverse wedding. Venture capitalist Sheel Mohnot won a contest to get married in a Taco Bell metaverse wedding later this week. Actor Kal Penn will be the emcee. Talk about a true love story.

Titanic gets tokenized. Recovered artifacts from the sunken ship are being turned into NFTs."Jack, draw me like one of your French NFTs."

NFT marketplace wars heats up. Uniswap’s NFT marketplace will now let traders use any Ethereum-based token to buy digital assets. Traders can easily buy NFTs with stablecoins (USDC, Tether, etc.) and other tokens like Shiba Inu, etc.

From $15K → $82M. Co-founder of Reddit, Alexis Ohanian, has revealed that he was an early investor in ETH and bought $15K worth of the token back in 2014. At today’s prices, that’s a whopping 546,000% return.

MILKY MEME

🤣🤣

That's a wrap for today. Stay thirsty & see ya tomorrow! If you want more, be sure to follow our Twitter (@MilkRoadDaily)

INTERESTED IN ADVERTISING ON THE MILK ROAD?

Fill out this survey and we'll get back to you soon!

A ROADERS REVIEW

VITALIK PIC OF THE DAY

loading 1628741469589872640

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.

Get smarter about crypto

Join 250,000+ subscribers and get our 5 min daily newsletter on what matters in crypto.

Contributors

  • Avatar of Milk Man

    Milk ManWriter

    This dashing dairy expert is not just your average milkman. He's a tri-athlete, a former classmate of Satoshi Nakamoto, and a crypto enthusiast who loves nothing more than delivering the freshest news and insights straight to your inbox.