It’s altcoin time

Good morning! Welcome to The Daily Moon. Sam Bankman-Fried has been arrested. The FTX founder was held in the Bahamas at the request of the US government and will be extradited soon. Guess he'll testify before the House Panel after all.

The markets were in the red. Bitcoin was just above $17,000 and Ethereum was at $1,250 levels. Nasdaq rose in early trade. Back home, Sensex and Nifty ended flat.

What Killed NFTs?

We all know that NFTs bore the brunt of the bear market this year. But it’s not just the crypto volatility to blame. Too many NFTs, low-quality NFTs, and exorbitant pricing may be the real reasons for the prolonged NFT winter.

But why?The hype has caused the downfall. NFT entrepreneur Gary Vee has warned that the value of 97-99% of the NFTs will go down to zero.

1. There is a supply and demand issue. Too many subpar NFTs with barely any takers.

2. This takes us to greed. People invest just to make a quick buck and are not true believers.

3. DYOR on the developers behind NFTs is missing.

FUD is skyrocketing. For instance, the price of Justin Bieber’s Bored Apes Yacht Club NFT dropped 95% after the FTX collapse.

DamnSo, is it time to shut it all down? Empty your wallets and wait for the sweet release of death? Not yet.

• The technology behind NFTs is here to stay.

• Find out who’s running a project before you spend money on any old dumb ape.

• Be ready to unlearn and relearn as the market stays volatile.

As Gary says, treat it like a marathon, not a sprint.

Traders Head to Altcoins

The US Fed may hike interest rates again on Wednesday. But this time around, the market’s better prepared, and Bitcoin’s on wait-and-watch. The action has now turned to altcoins.

Who’s winning?Monero, Toncoin, and Trust Wallet Token are among the alt preferences. Monero, for instance, has gained ~2% in the past week, Toncoin is up ~8% in the past 24 hours and Trust Wallet Token, for example, is up ~2.7% in the past 24 hours. Here, traders want to HODL.

Axie’s on the list tooAxie Infinity, which has been on a death spiral, seems to have found love. Its price has stayed above ~$7.67. However, interest in altcoins may reverse once the rate hike decision is announced. Over to the Fed.

Goldman Makes The Same Basic Error  

Goldman Sachs believes that innovation will happen via blockchains. But it wants to detach the technology from crypto.

What’s happening?The investment bank claims that blockchain use will enable quicker financial transactions. Goldman even used a private blockchain to arrange for a ~$105 million digital bond. This translation was completed in a minute instead of the usual five days. Great news, except that this process takes five days because of regulations. A blockchain may not magically solve that problem.

The solution lies in crypto A private, regulated blockchain is very similar to the existing processes. What may bring a change is decentralised finance through crypto, where transactions won’t be held up for days. It’s a system outside the current governance framework. But that will never happen unless the maze of regulations is untangled.

This love for blockchain separated from crypto comes around every once in a while. And then they realise one doesn’t exist without the other and they change their tune. We’ll be here when Goldman Sachs finds love for crypto.

Mine in Arkansas

New York’s loss is Arkansas’ gain. Entergy, a power company in Arkansas, will offer cheap electricity to crypto miners. Miners fleeing New York’s PoW ban will get power for as low as $0.01 per kilowatt-hour.

Wow, for real?This is a bulk rate for miners. So, you’ll probably have to team up with some mining companies to use this sop. Commercial customers pay $0.10 per kilowatt-hour, which means crypto miners get a 10% discount.

There is obviously fine print, but the miners have a home if they want to move to Arkansas.

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