A Sea of Red

Image by Stefan Keller / Pixabay

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Another week in crypto-town with big losses across the board on all coins and tokens. Markets are extremely volatile, with everyone's advice being: just survive. Find a way to do exactly that and come out the other side.

Before we kick-off, I'd like to announce that we're working on some exciting new offerings for new projects preparing to mint. We're currently collecting input from all types of possible partners to see how best we can help them with their projects. icy.tools wants to be a key partner in making sure your Mint Day goes exactly as planned! We'll provide essential, custom-tailored analytics data on your launch date. And if you're looking for help scaling your node infrastructure, I'm sure we can be of help together with QuickNode! For those interested please fill in the form over at https://icytools.typeform.com/to/yJFEGBE4

Oh yeah! We're going to be at NFT.NYC! Make sure to come by the QuickNode x icy.tools booth! Come talk to our team members, grab some swag, and enjoy a good time. We'd love to connect with all of you, so make sure to drop by for a chat! Oh yeah, we'll also be giving away a PS5 to one lucky degen.

A couple days ago, I had a conversation with some good friends of mine and we were talking about 'forced-sellers,' and what they mean; it is also a term that has been popping up on Twitter lately. Especially due to the market conditions. Essentially these are people that should have the risk-profile to be able to weather the storm, however, due to unexpected changes on multiple fronts one can switch from being long-term oriented to capitulation, becoming a forced-seller. Forced sellers are never pleasant to witness, and they harm us all; they remove people who were invested in the success of the space and projects and force them to leave, hence the term forced-seller. Endure the hard times, do not make any rash moves or worse moves you cannot afford. Hard times create strong men, and strong men create good times. Be the one that creates the good times.

We saw the FED, the Federal Reserve Board, raise interest rates by 75 basis-points. The highest raise since 1994, they're doing this to get inflation under control with the hope still being to try and stick a soft-landing. Inflation is really starting to hit all parts of the economy, let's hope we get the situation under control ASAP.

Diving into things; we saw Celsius, the simplified lending platform, nearly blow up. Partially caused by big holdings in stETH, with certain uncertainties stemming from the fact that stETH is trading slightly below its peg and the illiquidity surrounding stETH. Celsius also ran into issues at the end of last year when BadgerDAO got hacked in the $120m exploit. It also seems like they were taking on huge amounts of leverage. Celsius ended up pausing withdrawals from its users earlier this week and is sitting together with lawyers to figure out how to restructure things for healthier books. A case like this certainly shows us to be wary when looking at CeFi platforms. It does simplify the processβ€”it seems like the industry is not mature enough with the lack of regulation for this to be pushed to the masses.

I'd also recommend you keep educating your circle on the point that if you don't have the keys, you don't really control the assets. Don't let other parties take needless risks with your capital.

Three Arrows Capital or better known as 3AC, one of crypto's largest venture capital firms, has come under fire. They've taken on huge losses from AVAX, Terra (LUNA), NEAR, and multiple others. A few days ago, rumors circulated that one of the largest venture capital firms found themselves in quite a bit of red and on the verge of collapse. As of today, those rumors are pretty much confirmed. Zhu Su, tweeted that they are in the process of communicating with relevant parties and committed to working things out. 3AC seems to be overleveraged and with prices being hammered downwards it seems a bit bleak for them. A key note here is that they have $18bn under management, and are now at the point where they are considering asset sales & a bailout. https://www.wsj.com/articles/battered-crypto-hedge-fund-three-arrows-capital-considers-asset-sales-bailout-11655469932?mod=Searchresults_pos1&page=1

Coinbase and BlockFi have cut their workforce by significant numbers, 18% for Coinbase and 20% for BlockFi. It looks like they're aiming to get ahead of the hard times that seem to be coming for all. Let's hope they'll be able to maintain their current workforce going forward. On that note, Kraken and Binance have let the world know that they are hiring a mass amount of talent. With Kraken saying they've got 500 open positions and Binance a whopping 2,000 open positions. Looks like there's still opportunity for many! CZ didn't miss his chance to do a little light trolling. 😈

In the land of NFTs, we've seen 'floor' prices being hammered down and taking a heavy beating as well. As of writing (16-06), it seems that floor prices are recovering somewhat but it pales in comparison to the value lost over the rug downward from global markets. Just to look at some data so we have something to touch base on, I'll go over some blue-chip projects and their valuations from peak to trough.

Let's start off with none other than the Bored Apes. BAYC reached a peak ETH floor price of 157E on the first of May, putting its valuation at $429,096 USD at that time, to 69E just a couple of days ago, dropping down all the way to a valuation of $89,700. Talk about a crazy price delta in both cases! Nearly a 60% drop in ETH valuation and almost an 80% drop in USD terms. Since then, the [[Bored Apes]] have retraced a little, and are sitting at over a floor of 86E ($94,600).

Bored Ape Yacht Club

Azuki saw an all-time high of 34.5E floor at the start of April, dropping all the way down to 7E earlier this week, and then recovering to almost 10E.

Azuki

Doodles came from 25E in the second week of May to 7E earlier this week, recovering to 11E as well. The general trend seems to be that holder count seems to be on the rise after a very short dip, that trend seems true for the collections that are considered our blue chips. I was hoping for a little more of a dip so that I could join that holder count!

Doodles

Alright, enough doom & gloom. Let's dive into the things that happened within NFTs.

Lacoste opened their Discord server last week and had their mint this week. Minting at 0.08E and now trading for 0.27E, it seems they are calling on the community to help design a PFP for their collection. It will be interesting to see the direction this goes in, it is another massive brand entering the web3 space. Seems like there is definitive interest from these brands, regardless of market conditions.

Lacoste UNDW3 Official

Deca art recently had their membership mint, called The Octagon. They've raised $6.2M and are hoping to change the way we experience digital objects. Their site is focused on experiencing the digital and putting people on the path to what they call a baby metaverse. Remix your webpage to how you see fit, find a way to display it, and capture it in a way you see true; equipped with commerce tooling of your favorite marketplaces. The best part yet? They're not limited to just one chain - show off your art, regardless of where it sits. Their NFT is an open edition mint, designed to act as a membership pass, growing over time as you interact with the site. You'll likely see a lot of Deca galleries being posted on NFT Twitter over the next couple of days.

SalesForce has entered the NFT landscape. Bringing a sustainable minting and selling platform to those who are integrated with their platform. With the growth of NFTs this last year, it is no surprise that big players such as SalesForce are looking for ways to connect their clients with consumers that might be interested in digital ownership.

Ape Coin is staying put.

A while back the ApeCoin community came together for a vote, to decide their future of where they were going. The DAO voted in favor of remaining on ETH, deciding to go forward with activities on ETH for the foreseeable future. It is important to note that this does not reflect Yuga's own path forward, as one has to wait and see what they have in store for the world with The Otherside and more.

Chimpers lore.

Chimpers saw a lore update. Giving a backstory to the ten legendary Chimps. One can read up on that lore over at https://lore.chimpers.xyz/ still quite a bit of mystery around the direction this project is going in, but certainly seems like they're building up their own universe with great storytelling. Seems like they're gaining some attention with certain big names picking up a few pieces over the last couple of days.

Chimpers

gn mfers.

mfers had an interesting week last week. sartoshi, the creator of mfers, decided it was time to hand over the mfers contract to the community. Giving control to 7 mfer holders who have been active in the project and made a name for themselves, carrying the spirit of the mfers forward. He announced a final mint and deleted his Twitter sometime during the mint. Certainly a topic worthy of discussion, with the end of sartoshi mint bringing in 1,173E - just to have its creator delete his Twitter and ride off into the sunset. I'll let everyone form their own opinions of this one.

π”šπ”žπ”€π”‘π”¦π”’. but for real.

We Are All Going To Die had their mint a couple of weeks ago. Quickly rising in the charts, hitting a peak price of nearly 2E per piece last week dropping all the way down to 0.20E as of writing. This free mint took many by storm, being the other free mint that captured the attention of many after Goblin Town. Reports have come out that some of its artwork could be stolen from the game Magic: The Gathering.

Still living in Goblin Town.

Talking about Goblin Town, the team has finally released information surrounding who they are and their past projects. The NFT studio is known as Truth Labs, and creates projects as the Illuminati Collective or known by their Twitter handle of @secretsociety. The direction of Goblin Town itself seems a little uncertain, however, it seems like they do have plans for the community they built up over the last couple of weeks. The 1,000 Goblins that sat in the team's wallet will be distributed between the Truth Labs Treasury, the team, and communities found within Truth. They are also going to be seen around NFT.NYC. Let me just applaud the way the team deployed the mint all the way to the end, keeping an element of mystery around the project. That said, it is still important to be cautious in the space; as projects without doxxed teams can end up being nothing but dust.

Shibuya. It's fun to say.

Shibuya, the anime studio led by pplpleasr has released chapter 2 of their white rabbit production. Adding another two minutes and a half to the story and allowing pass holders to pick the next part of the protagonist's journey.

Free and not so easy.

Free mint meta still seems to be the name of the game, but the market seems to be in a position in which it is being quite selective about which projects deserve value. Rightfully so, it's time to hunker down and stick with the teams you really believe in. I'll also raise an important point, with the market being as brutal as it is - more scammers come out of the woodwork, so make sure you are doing your due diligence and not just aping everything you see.

The volume across all platforms has been quite dire this week, and with pressures on crypto as a whole - my best suggestion would be to not do anything foolish. Preserve capital where you can, and think through your choices before aping into random projects.

Touch grass, take a step back but do not forget to come back; it's build season after all.

And come say hi to the icy team at NFT.NYC! We look forward to meeting you!