In this digest, we discuss : Key Market Updates, Airdrop Alpha, Tax Tips, Essential CT Threads & Hot NFTs
Gm degens, this Digest brings to you a weekly curation of key updates & alpha from the cryptoverse.
It's time to dive into another wild week in the world of crypto! So grab your coffee, strap in, and let's go! ☕
Estimated reading time: 5 minutes
Here’s what’s inside…
1️⃣ Highlights from the Market 📈
2️⃣ Big Story of the Week ✨
3️⃣ Crypto Expert Takeaways 🎧
4️⃣ Crypto Twitter Roundup: Top 3 Threads 🔥
5️⃣ Trending NFTs: This Week's Standouts 🃏
1️⃣ Highlights from the Market 📈
State of the Market - Essential Updates You Need to Know
1. How the Top 10 Coins are Faring
Most coins in top 10 except are in the green over past 7 days
Only Polygon and BNB are technically in red, but really are pretty much unmoved over the week
2. The Crypto Fear/Greed Index
Currently in “Greed” territory
Up from “neutral” of last week, owing to the recent BTC pump
When others are greedy, one should be cautious…?🤔 Something to think about
Source: Crypto Fear & Greed Index
3. Top Trending Category - Zilliqa Ecosystem
Some of the gains in Zilliqa seem to be driven by plans to launch full EVM compatibility on its mainnet on April 25th, 2023.
Zilliqa believes that this launch would help expand its ecosystem and expose it to the wider blockchain developer community.
The implementation of EVM in Zilliqa's ecosystem will be native, eliminating the need for extraneous conversion processes during transactions.
Source : Coingecko
4. Funds Flow Summary: a Look Into the Big Boys’ Activity
For the sixth week in a row, there were outflows from digital asset investment products, which amounted to US$95 million.
The total outflows over five weeks reached US$406 million, which is equivalent to 1.2% of the total assets under management (AuM).
Bitcoin was the primary target of unfavorable sentiment and experienced outflows of US$113 million in investment products last week.
These outflows were significantly different from the general market trend and may have been driven, at least in part, by the necessity for liquidity instead of negative sentiment.
Source : Coinshares
5. Trader Who Killed It This Week
A quick glance at a degen who’re sitting on top of the Binance Leaderboard
GhostCohen saw a degen-like performance with ~635% ROI on the week
Looking at their positions - they’ve gone with a mix of majors (BTC/ETH) with smaller alts
An interesting pick was Skale (SKL) - which seems to have benefited from the L2 hype on the heels of the Arbitrum token airdrop
Source : Binance Leaderboard
2️⃣ Cover Story: 🪂 Airdrop Alpha - Catch the Next Arbitrum
Attention, crypto degens! Did you miss out on the $ARB airdrop? You can still catch some of the other airdrops that are in the pipeline.
In this article, we will share some key takeaways from an excellent Twitter thread by Poopman - DeFi Rookie on how to evaluate airdrops and select the best projects to farm.
Firstly, not all airdrops are created equal. To increase your earnings by 5-10x, it's important to put more effort into the right projects. So how do you evaluate whether a project is worth your time and effort?
The following parameters are essential in determining the worthiness of an airdrop project:
High fundraising usually indicates significant interest and support for the project. This also reflects the project's credibility and impact in the crypto space. For example, @zksync raised $458M, which is considered strong.
2️⃣ Strong Backers
Having strong backers increases the chances of success as they provide a level of legitimacy and access to additional resources. For instance, @Uniswap was backed by @a16zcrypto, and @blur_io is backed by @paradigm. Both are successful projects with strong backers.
3️⃣ Good Fundamentals
Fundamentals are important in assessing a project's value and strength. Strong fundamentals usually indicate innovation or problem-solving ability. They also help estimate token value and potential market size. For example, Arbitrum has strong fundamentals, including a low gas fee, revenues of over $2.5M in the past six months, and an uptrend in active users.
4️⃣ Good Hype
"Hype" is a measure of attention, and good attention equals good marketing. This indirectly reflects the project's capability of attracting new users to the protocol. Therefore, if there is no discussion about the project, it's not worth your time.
5️⃣ Good Tokenomics
Pay attention to the vesting period, inflation rate, distribution and allocation, incentives, and alignment. These details vary from project to project, and there is no universal model.
Based on the parameters above, one of the author's top picks is zkSync.
The project has raised $458M, is backed by BitDAO, and has steadily rising weekly active users.
The bridge volume is around ~2600E per day, and the bridging and deposit experience is smooth.
There is also good hype around the project, with many discussions, but it lacks an ecosystem.
In conclusion, evaluating airdrops is essential in maximizing your earnings as a crypto degenerate. By paying attention to parameters such as fundraise, strong backers, good fundamentals and ecosystem, good hype, and good tokenomics, you can select the best projects to farm.
So, next time you're looking for airdrops, make sure to do your research and select the right projects to farm. Happy farming!
3️⃣ Crypto Expert Takeaways 🎧
Bite-sized alpha from an Illuminati Round Table chat
💵 Insights on Crypto Taxes with Danny
Danny, the head of tax at Koinly, shares insights on crypto tax space.
In one of the segments, he answers our question What are the most common questions you get about crypto taxes?”
Danny mentions the most obvious: "When do you have to pay crypto tax?”
He says most people realize crypto is taxable but need clarification about when these are due.
He mentions transferring BTC to ETH or from another asset to FIAT is something that the user must note regarding gain or loss.
The other way to dispose of crypto for tax purposes is by spending it. Danny mentions cards that can be linked to your crypto balance.
Additionally, earning crypto through yields such as staking or mining. Danny explains that these are seen as income to the government, which will look to tax you.
📑 Read the round table recap here
🎧️ Listen to an audio clip from the discussion here 👇️
4️⃣ Crypto Twitter Roundup: Top 3 Threads
Essential CT alpha & updates to catch up on
✉️ Coinbase’s Remarkable Messages to the SEC
The U.S. SEC has threatened to sue Coinbase over some of its crypto products
Mark Forscher compiles some of the top quotes from Coinbase’s side of the story shared in a recent blog post
Includes this particularly hard hitting one "Tell us the rules and we will follow them."
This is truly a remarkable statement from @iampaulgrewal, @Coinbase’s Chief Legal Officer, at a remarkable moment for crypto in the US.
"Tell us the rules and we will follow them."
A thread of the quotes that really stood out to me: 🧵
— Mark Forscher (@garbnzgh)
Mar 23, 2023
♠️ GambleFi: Some of the top tokens
The Gamble-Fi narrative is picking up steam.
Crypto Koryo shared a thread of the Top 23 Gamble-Fi narrative related tokens featuring its innovation, on-chain data, etc.
Gamble-Fi narrative is hot.
An extensive list of Top 23 related tokens.
Thread 🧵 https://t.co/NvZ6AXC23i
— Crypto Koryo (@CryptoKoryo)
Mar 22, 2023
👮 Do Kwon Got Arrested While…
We just had to include this one from Grinding Poet. Epic.
(Source: TrustMeBro 😛)
[DB] Do Kwon was trying to claim $arb airdrop when he was arrested ~ Reuters
— Grinding Poet (@GrindingPoet)
Mar 23, 2023
5️⃣ Trending NFTs: This Week's Standouts
NFTs that are hotter than your altcoins
The following collections have been creating waves this week (Stats Source: https://www.nft-stats.com/)
7-Day Volume : $1.4M | NFTs Sold over 7 days : 27k+
This collection’s riding big on the AI hype. As their description says,
“Our collection is the first AI-directed 10K animated NFT collection, promoting autonomy through blockchain/web3.”
“With 6.98T unique combinations, AIORBIT NFTs showcase mesmerizing orbits that push the boundaries of creative expression.”
2) Not a NFT Project
7-Day Volume : $930k | NFTs Sold over 7 days : 10k+
As the name says…this is definitely Not a NFT Project.
Did you get the Arbitrum airdrop?