|
Today's edition is brought to you by Gemini β your trusted US-based crypto exchange, whether you're new to the game or a pro. |
Start trading and snag $15 in $BTC just for getting started! |
|
GM. This is Milk Road, you know what they say: βa newsletter a day, keeps market uncertainties away.β |
Hereβs what we got for you today: |
βοΈ Toxic tokenomics βοΈ $BTC vs other major asset classes π₯ Milk Road PRO portfolio updates ποΈ The Milk Road Show: Is Uptober Still On? Crypto Market Analysis & Predictions w/ Lark Davis πͺ FTX creditors may recover 120% of their lost funds |
|
|
TOXIC TOKENOMICS β£οΈ |
Picture this: |
You and your 10 friends finally score a reservation at that fancy Japanese spot in town. |
As you sit at one end of the long table, watching your friends sip sake and look sharp in their suits, you think βThis couldnβt get betterβ¦β |
|
Then, at the top of the table β the sushi arrives (garnished with a vibrant green and orange salad) |
β¦but by the time it reaches you, all thatβs left is the garnish. |
Thatβs what it can feel like being a retail investor in crypto: by the time the best opportunities reach you, the value is mostly gone. |
Just look at this chart of all the altcoin listings on Binance in 2024. π€― |
|
Itβs easy to blame the market conditions for this β but the Milk Man thinks thereβs a different factor at play here: |
β¨ Toxic Tokenomics β¨ |
The most common flavor of βToxic Tokenomicsβ right now are βlow float, high Fully Diluted Value (FDV)β projects. |
Low float: Small amount of tokens in circulation (with a ton more to be unlocked over time). High FDV: Unnecessarily high valuations, even though the projects are relatively new. |
Hereβs how to test for Toxic Tokenomics: |
Incredibly high valuation at TGE (aka: Token Generation Event, aka: Launch) Lots of future token unlocks (which could mean lots of future sell pressure) Tokens that end up falling by 50%-90% Retail buys in thinking itβs at a 50%-90% discount Retail gets rekt |
|
But this doesnβt mean that low-float, high FDV tokens are all badβ¦ |
Hereβs the not-so-toxic side of these tokens: |
If there is only a limited supply of tokens in circulation, a small amount of demand can cause the token to absolutely rip! |
(The math on that? Restricted supply + increased demand = number go up). |
Now, hereβre some actionable steps you can take to test a tokenβs toxicityβ¦ |
1/ Ignore the red, follow the green |
|
2/ Check the schedule |
Looking to roll the dice and attempt to find a high FDV token that could experience a demand spike while its float is low? |
Check its token unlock schedule first, so you donβt buy amidst a fresh injection of supply. |
Following these steps should help increase your proverbial βsushi-to-garnishβ ratio. πͺ |
|
β¦or you could take the lazy option and let our army of nerds (researchers) at Milk Road PRO do all of this detective work for you β all they do is hunt for standout opportunities in crypto. |
(Day in, day out). |
Moral of the story? Sit in the middle of the long table - you wonβt go home hangry. |
|
| | Gemini was founded in 2014 by the Winklevoss twins, Cameron and Tyler, whoβve been crypto trailblazers for over a decade. | Gemini isnβt just another exchange; itβs built with security at its core. | As a licensed, full-reserve exchange and custodian, Gemini offers top-notch security features like passkeys, setting the gold standard for compliance and innovation. π₯ | Ready to start trading? Head over to Gemini and snag $15 in $BTC. | Sign up today and claim your Bitcoin! | |
|
|
|
$BTC VS OTHER MAJOR ASSET CLASSES βοΈ |
There are only two things we hate more than falling crypto prices: |
Matcha lattes (they taste like dirt and we will die on this hill) Steve Jenkins |
Whoβs Steve Jenkins? |
Heβs the guy that rolls into our laid-back neighborhood poker night wearing a floral shirt, dark sunglasses, and a full-on rodeo hat. |
Apart from his lack of fashion sense, Steve always (and I mean, always) goes all-in pre-flop, even with a 2-7 offsuit. |
For those of you who donβt play poker (good on you), hereβs the translation: |
Itβs stupid. Itβs so so dumbβ¦but it somehow works (so is it really that stupid? π€) |
|
Steve always ends up leaving poker night in one of two ways: |
Tipping his dumbass rodeo hat after a big win Calling a cab home 5 minutes into the night |
Why are we telling you this? |
Because $BTC, like Steve Jenkins, often ends the year in one of two ways: |
Outperforming all other asset classes by miles (8 out of the last 11 years) Scraping the bottom of the barrel (the remaining 3 years) |
In those 8 victorious years, $BTC has outpaced the next best-performing asset by massive margins. π€― |
|
(God, thatβs beautiful π₯²) |
But of course, past performance is not a guarantee of future results. |
So, letβs check-in and see how $BTC and its rivals are doing over the past yearβ¦ |
|
Phwoar! Looks like $BTC is about to lock in another year of outperformance. |
β¦ok, but what does this look like over a 10 year period? |
|
Not. Even. Close. |
The broader takeaway here? Itβs a good time to be in crypto (and has been for the past decade). |
A more personal takeaway? If this is in any way reflective of the strategy Steveβs been using at poker night β itβs time for us to quit playing poker. |
(Steve, if youβre reading this: screw you and your Spirit-Halloween-discount-rack lookinβ outfit). |
|
MILK ROAD PRO PORTFOLIO UPDATES π |
Look! Up in the sky! Itβs a bird! Itβs a plane! Itβsβ¦ the Milk Man sharing his latest portfolio changes. |
Like clock-work, every Thursday, weβre here to share our updated list of investments from the Milk Road PRO Portfolio. |
Disclosure: We are not a day trading portfolio so donβt expect a high volume of trades. Read our βhow to build a crypto portfolio in 2024β report to learn more about our portfolio strategy. |
Portfolio performance π |
The Milk Road PRO Portfolio saw a slight increase over the past 7 days. Our portfolio value is at $85.7K, up 0.81% since last week. |
|
Frustrated because the markets arenβt moving the way we hoped? Thatβs exactly what they wantβto shake out the weak hands. |
We wonβt go into too much detail today, but make sure to catch this Saturdayβs PRO report for a full market update and key reasons to feel bullish about the weeks ahead. |
|
|
Portfolio changes π |
| The Milk Road PRO Portfolio is available for Milk Road PRO members only. | GO PRO AND UNLOCK: | Full access to the Milk Road PRO Portfolio. π NEW: Our yield strategies π Our weekly reports that help you invest successfully in crypto. π° Full access to our weekly bull market peak indicators. π Full access to the Milk Road PRO community. π« 50% OFF the Crypto Investing Masterclass ποΈ | | PRO REVIEW OF THE WEEK | |
|
|
|
BITE-SIZED COOKIES FOR THE ROAD πͺ |
Hacken, a blockchain-focused cybersecurity company, offers a maximum of 180% APY through its DualDefense Flash Pools. These Flash Pools power the first-ever security prediction market that rewards stakers for contributing to decentralized security. * |
UniswapX is Uniswap Labβs latest protocol development that users donβt see, but makes their crypto-swapping experience significantly better. By sourcing liquidity from the wider DeFi ecosystem, users are getting better pricing β not to mention a bunch of other perks. * |
FTX creditors may recover approximately 120% of their lost funds as part of a $16.5 billion repayment plan. Payments are expected within 60 days after a still-to-be-determined effective date. On we go. |
Crypto.com has filed a lawsuit against the SEC after receiving a Wells notice, challenging the agency's claims. It joins a growing list of companies, including Uniswap, Robinhood, and Consensys, that have also been targeted by the SEC with Wells notices. |
The U.S. Supreme Court declined to hear a case regarding the ownership of the seized Bitcoin from the Silk Road marketplace. The seized Bitcoin, which accumulates to 69,370 $BTC, is currently valued at around $4.4 billion. |
Phantom Wallet is launching beta support for the Base network, expanding its multichain capabilities. Already live on Solana, Ethereum, Polygon, and Bitcoin, Phantom now adds Base to its supported networks. * this is sponsored content, not financial advice |
|
MILKY MEMES π€£ |
|
|
|
|
RATE TODAYβS EDITION |
What'd you think of today's edition? |
|
ROADIE REVIEW OF THE DAY π₯ |
|
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 research. |