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Health, Wealth, and Happiness

August 21, 2023

“An investment in knowledge always pays the best interest.”

- Benjamin Franklin

Howdy investors!

Today we look at the massive change happening in the layer-2 ecosystem, thanks to the launch of Coinbase's Base protocol. Then we look at a slower change that's been coming for years, and some consider inevitable: The Flippening.

Additionally, we analyze the differences and possibilities in earning yield from traditional bonds vs. cryptocurrency staking. While our typical understanding of these two assets tells us that bonds are a stable and secure investment, crypto has quickly caught up in terms of stability and potential returns.

Speaking of Coinbase: several projects have been built on Base, but few have gotten as much attention as Friend Tech, a "SocialFi" platform allowing users to buy and sell shares of Twitter accounts. While the future of Friend Tech is still being determined, there is potential for growth, especially if the platform attracts influencers and celebrities from outside the crypto space.

And now let's jump into everything!

Bonds vs. Crypto Staking: Which Has Higher Yields?

by Anatol Antonovici

Investor Takeaway: Today they have similar yields, but bonds and crypto staking have different risk profiles, security considerations, and opportunities. Bonds are generally safer, while crypto staking offers potentially higher returns and increased volatility. For investors, striking the right balance between the two is important for a diversified portfolio.

Even though bonds and crypto assets are different assets, they offer a similar annual yield today. Bond yields depend on various factors, including interest rates and credit rating, while crypto staking involves earning rewards through network validation–a process that carries its own risks.

In this piece, we’ll show how bond yields vs. staking returns stack up against one another.

Read more on Bitcoin Market Journal >>

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The Lowest-Rated Investment Ever?

We focus on the best projects and assets when we highlight our Investor and Risk Scorecards. However, knowing about the worst projects can be helpful, too ... so you know what to avoid.

You can find our analyst reports for the top 50 crypto projects to locate some of the best projects around. Still, if you continue scrolling to the bottom of that list, you'll eventually reach our lowest-rated investment ever.

With an overall rating of 2.4 stars out of 5, this token didn't inspire confidence from our analysts. As we concluded in the scorecard:

"[This token] does not stand out as a blockchain venture, and having an anonymous team does not exactly breed confidence among investors looking for digital assets to put into their portfolio."

Premium members: click here to view our lowest-rated crypto investment of all time.

(Not a Premium member? Sign up today to access our complete library of webinars, crypto scorecards, token analytics, and other member-exclusive content.)

Must Read

Today's most important stories for crypto investors.

Layer 2 Wars Heat Up As Coinbase Launches Base (Forbes)

Investor takeaway: Since its launch on August 9, Coinbase's Base protocol has already attracted over $200 million in total value locked (TVL), ranking fifth among all Ethereum layer 2s. The network's success may also influence the performance of the Optimism governance token (OP), as the treasury of the Optimism Collective receives 15% of the Coinbase sequencer fees.

Investors bullish on Base and the Layer-2 thesis may want to jump into the Coinbase pool and buy some shares or Optimism tokens. However, note that the prices of $COIN stock and OP token have both dropped since Base's successful launch. Please do your own research before investing.

The Flippening: Why the Ethereum Crypto Supremacy is only about Time (Mirror.xyz)

Investor takeaway:"The Flippening," a time when Ethereum's market cap overtakes that of bitcoin, has been a topic of conversation in crypto circles for years. Are expectations for "The Flippening" realistic?

We're big believers in Ethereum's innovative technology and potential for disruption. Whether or not Ethereum overtakes bitcoin, it's worth a close look, since so much great stuff in crypto is getting built on top of it.

How the SEC’s Ongoing Battle with Ripple could Shape the Crypto Industry (The Street)

Investor takeaway: The U.S. Securities and Exchange Commission (SEC) is appealing a recent court ruling that Ripple's XRP token complies with securities laws when sold to retail investors. This news highlights the ongoing regulatory uncertainty in the U.S. crypto market. The outcome of the SEC's appeal could impact the regulatory status of XRP and other cryptocurrencies, potentially affecting their investment strategies and portfolio decisions.

The All-in-One Guide to Friend Tech (X)

Investor takeaway: Friend Tech is a "SocialFi" platform that allows users to buy and sell shares of Twitter accounts that have joined the platform. After purchasing a share, users can access a private channel to communicate with the account holder. The price of a share increases incrementally with each purchase or sale.

This new, somewhat unconventional platform is a puzzle for us. The future of Friend Tech is still being determined, as other blockchain-based social media platforms have failed in the past. However, there is potential for growth, mainly if the platform attracts influencers and celebrities from outside the crypto space.

Long-Term Wealth

$1K invested at today's market prices

This asset	invested 5 years ago	is now worth
Bitcoin (BTC)	$1,000	$4,077
Ethereum (ETH)	$1,000	$3,857
Uniswap (UNI)*	$1,000	$850
BNB Chain (BNB)	$1,000	$15,321

Note: The future may look different from the past. Please invest carefully.

* As UNI is less than five years old, we calculate from the launch date (Sep 2020).

ICYMI