Health, Wealth, and Happiness

October 6, 2023

“Still thinking about #Bitcoin. No conclusion – not endorsing/rejecting. Know that folks also were skeptical when paper money displaced gold.”

- Lloyd Blankfein

Howdy investors!

Today we're reprinting a post from December 2022, shortly after the collapse of Sam Bankman-Fried's FTX. Given the SBF court case this week, it's more timely than ever. We're also covering opinions from other stakeholders in SBF's ongoing trial.

Additionally, if you want to avoid centralization, we're seeing some data that Uniswap could be a great choice. One investor has taken the time to detail proper risk management strategies for Uniswap liquidity providers.

Finally, recent research indicates that now might be a good time to rotate out of ETH and into BTC. While we believe in both projects, there's some good research to dig in here to support your own decision-making.

Keep reading to learn more.

In Defense of Sam Bankman-Fried

by John Hargrave

Let me take you back to long, long ago in crypto history: March 2022.

Everyone was nuts over Sam Bankman-Fried, boy wonder. The billionaire with the unruly mop of hair. The young genius who would play videogames while giving interviews, then power lunch with Washington senators wearing cargo shorts.

Every crypto media outlet worshiped and adored Sam Bankman-Fried, and fought eagerly to get exclusive interviews with him. Even the traditional media was enamored with the self-made crypto wunderkind.

Today, these same media outlets call him a crook, a scammer, and a Ponzi-schemer. They call him Sam Bankless-Fraud. They celebrate that he was sent to (literally) arat-infested prison.

It is hard to remember a more dizzying fall from grace. Even Icarus is like, “Damn, bro, that’s too close to the sun.”

I have a much more charitable view of what happened with SBF, and here's why I encourage you to put yourself in his shoes.

Click here to read the full story >>

Premium Power-Ups

Level up your crypto investing game.

Last night we had a terrific discussion with Bitcoin Market Journal members about our Blockchain Investor Scorecards.

Created in 2018, we've since analyzed nearly 100 projects using our industry-leading scorecards, and last night we presented the results of five years of research.

Our members gave us great feedback on how to expand our research, and how to make our scorecards even more useful in the months to come. We learned a lot, and you will, too.

Premium members can click here to watch the replay of the event.

(And if you're not a Premium member, click here to join.)

Must Read

Today's most important stories for crypto investors.

Sam Bankman-Fried’s Crypto Empire Was ‘Built on Lies,’ Prosecutor Says (New York Times)

Investor takeaway:Sam Bankman-Fried, the founder of the now-defunct cryptocurrency exchange FTX, is on trial for one of the most significant financial frauds in recent U.S. history.

This trial is particularly notable given Bankman-Fried's rapid rise to billionaire status and the subsequent collapse of his company, FTX. The case draws comparisons to the conviction of Theranos founder Elizabeth Holmes and is seen as a significant moment of reckoning for the cryptocurrency industry.

For the investors following this case, it seems inevitable that the outcome will have ripple effects through the market. Keep the faith; this, too, shall pass.

Liquidity Provider Strategies for Uniswap v3: An Introduction (Medium)

Investor takeaway: On March 11, 2023, Uniswap saw a record transaction volume of nearly 12 billion USD due to stablecoin price fluctuations. Investing in Uniswap's USDC/WETH pool that day could have yielded over 550% APR (!).

Uniswap v3 introduced the concentrated liquidity feature, enhancing trading and adding risks. Despite potential high returns, many avoid Uniswap v3 due to these risks.

While Uniswap pools present lucrative yield opportunities and play a crucial role in DeFi, entering unprotected LP positions, especially narrow-range ones, can be risky. Hedging strategies using borrowed funds or short-selling the volatile asset can mitigate these risks.

Time to Rotate from Ethereum to Bitcoin, Says New Research Report (Crypto Briefing)

Investor's Takeaway: A recent report from K33 Research advises decreasing Ethereum holdings in favor of bitcoin following the underwhelming debut of Ether futures ETFs. These new ETFs had trading volumes of only 0.2% compared to bitcoin futures ETFs from 2021.

The analysts believe there isn't substantial unsatisfied demand for ETH currently. The tepid response to the Ether ETFs is likened to the 2017 CME bitcoin futures rather than the enthusiastic reception of 2021's bitcoin ETFs.

Despite the ETF approval being a significant milestone for Ethereum, K33 suggests minimizing Ether holdings until there's a positive shift in sentiment and increased institutional interest. The report concludes with a recommendation to shift from ETH back to BTC.

Best Stablecoin Interest Rates

The best rates for staking and lending stablecoins this week.

Click here to see our current rates, updated weekly.

Note: Nexo rates are dependent on your Nexo Loyalty Tier, which is based on the number of Nexo tokens held in your account. Your rates may vary.

ICYMI