GM Digest #40

Gm with Valuable Alphas / Insights — Make Sure to DYOR. All of This is Not Financial Advice. Ape at Your Own Peril

Grayscale Wins

• The court decided that the SEC's decision to deny Grayscale's request to transform its GBTC fund into a Bitcoin ETF was erroneous

• Previously, the SEC had turned down Grayscale's ETF proposal, citing concerns that it lacked the necessary safeguards against fraudulent and manipulative activities

• BTC soared 4.1% to in an hour and the whole market is green. This is a big win for the industry as the SEC has been nothing but hostile and this decision might pave the way for other BTC ETFs

• SEC Ruling on BlackRock’s Spot Bitcoin ETF due this week

Thoughts: The US regulatory environment has been nothing but rough for the industry this year and the court’s ruling on GBTC could change that trajectory. The court disagreed with SEC’s action to reject Grayscale’s application and showed the power of checks and balance in the judicial system. Beyond Grayscale, we have BTC ETF applications from heavy hitters like BlackRock, Ark, Bitwise, and Wisdomtree waiting in the pipeline.

Twitter Acquires Crypto Payment License

• @X has acquired a license for crypto payments and trading in the US

• This will enable the social media platform to store, transfer, and exchange digital assets for its massive user base

Thoughts: Since X (Twitter) is the place where all things Crypto can be found — Top Crypto KOLs, Project Launches, and All sources of Alpha, the move to enable crypto payment will solidify X’s positioning as the de-facto All-Things-Crypto platform

Genesis’s Creditors

• @DCGco reached a deal with the creditors of its now-bankrupted subsidiary, Genesis, where DCG will borrow $1.15B from new debt facilities and make 4 payments to the creditors

• Genesis was hit hard by 3AC and owes around $3.6B to its top 50 creditors. They are expecting a 65-90% recovery rate which came as a nice surprise.

• Bankruptcies and frauds from the last cycle are still haunting us today but the overall damage is looking to be less than people initially thought with the market back up this year.

Thoughts: Glad to see this drawn-out public battle between Genesis and some of its creditors including Gemini come to a close. Unsecured creditors are expected to recover 70-90% in USD equivalent while customers are expected to recover 65-90% on an in-kind basis. 80% or $7B of funds have been recovered from FTX’s collapse and the recovery rate of these mega fumbles is turning out higher than anyone originally thought.

Dinari Fund Raise

• Raised $7.5M from SPEILLLP (Susquehanna), @500GlobalVC and @balajis

• Dinari is one of the first RWA protocols to launch on L2 (@arbitrum) and showcase the power of DeFi by allowing anyone to trade US equities with $USDC and verify their on-chain books

• @DinariGlobal is a decentralized stock trading platform providing access to tokenized US equities to retail investors

Thoughts: Most RWA dApps are still on Ethereum Mainnet as they are focused on onboarding institutional and HNW investors + DAOs. However, we are starting to see their expansion into L2 starting with Dinari (Arbitrum), PolyTrade (Polygon) and TProtocol (OP). The ticket size will be a lot smaller but if they do this right, we might see mass adoption of RWA soon.

DWF’s CRV

• @DWFLabs bought 12.5M CRV from Mitch (founder of Curve) for $5M on Aug 1st with no formal lockups and they just transferred 2M CRV to Binance for “inventory management”

• The CRV situation has yet to improve as $CRV price continues to decline despite the overall green market today

• All eyes are still on CRV and the $0.4 liquidation price for Mitch’s positions on Aave, Frax and Inverse. With over 300M CRV deposited as collateral, a single liquidation could single-handedly drag down the whole market and Curve ecosystem

Thoughts: We will most likely see high volatility with CRV as whales are trying to figure out how to position themselves and some liquidators might be chasing Mitch’s liquidation price. Best to stay away from CRV and its derivatives like CVX for now and look for major dips if you are long-term bullish on Curve.

Polynomial Volume ATH

• Polynomial recorded $250m in daily trading volume and has been processing the largest share of volume of trades on Perp DEXs in the last week

• Its OP Trading Program where 5.3M $OP ($8M) will be given out to traders over the course of 20 weeks is coming to an end so this most likely contributes to the recent rise in volume.

• @PolynomialFi trade is a decentralized derivative trading exchange powered by the @synthetix_io protocol on Optimism

Thoughts: Synthetix’s ecosystem has been thriving on OP with Kwenta, Polynomial, and Overtime all reaching ATH in terms of user activities and platform trading volume. Synthetix V3 is also launching soon with cross-collateral. $SNX has been trading in the $1.5-3 range for the past year — Could be a potential dip-buying opportunity

Lyve Fi: ve(3,3) LST

• @LyveFinance Mission is to provide a cross-chain public liquidity layer for all LSD assets. Lyve utilizes Solidly Fork model to bootstrap early liquidity

• Lyve enables LSD assets farming, trading, staking, and bridging across L2s with LayerZero

• $LYVE IDO will happen in Early September

Thoughts: Even though Solidly Forks has been getting a bad rep due to its high emissions and the unwillingness of retail to participate in the flywheel, Solidly Fork + LSDFi could work (At least in term of narrative, attracting retail speculation). I’ll keep a close eye on this and report on the IDO as we get closer.

Bonus: Got 3 WLs to be shared with my Friend Tech community (FCFS)

Trifecta Triple Bot Strat

• @trifectafi is an automated trading platform that leverages 3 bots to maximize profits for the users

• Sniper, Scalper, and Shot Caller Bots work in tandem, utilizing AI to automatically execute the trades on both CEX & DEX. Users are also able to use the sniping bot directly via Telegram

• $TRIBOT token sale will happen next week (Early September)

Thoughts: A bit on the fence on this as the docs/socials use too many big words without really going into details on the inner workings of the product. Keeping a close eye on the token sale as TG Bot narrative has been one of the top-performing narrative this month

New Order x Synonym

• The Proposal to merge @neworderDAO & @synonymfinance has passed with overwhelming support from the New Order community

• Synonym Finance is building a cross-chain Defi Lending utilizing Wormhole Cross-Chain Stack

• New Order DAO is one of the Top Defi Incubator DAO in the space. The move to merge is an act of doubling down, concentrating its resources into scaling Synonym

• Users will be able to convert $NEWO to $SYNO 1:1 ➨ $SYNO will be staked for 15 months where users will receive revenue share

• $NEWO is currently trading at $1.1M MCap & $5.3M FDV

• Great Overview on this by @DefiIgnas:

https://twitter.com/DefiIgnas/status/1694241009134448705

Thoughts: There’s a clear strife between the community & the New Order DAO core team, contributing to the slow decline in $NEWO price. Conversion from $NEWO to $SYNO at the current price is looking pretty attractive considering you’re investing into a potential “Radiant Capital” at $1.1M MCap. However, the 15-months lock-up is obviously too long for me so I’ll likely not participate in this

Degen Section

• $LINQ and $LIM made another sharp retracement yesterday. $LIM is now trading at $200k MCap (Down from $1.2M+ two days ago). Still on the fence whether to buy the dip here considering the dip buying thesis was invalidated yesterday (the dip just keeps on dipping despite market going up). I’m not selling my stack at this point though!

• $HIPVP has been performing extremely well, congrats to the readers who bought this from seeing it on GM Digest #38. I’m still holding a huge stack of this — the team is pushing very hard, their Marketing Lead is @MonkofArbitrum who’s one of my favorite Alpha Callers (who I used to follow when I was a nobody during Arbitrum szn early this year)

• PintSwap Tris NFT remains an attractive opportunity. Pintswap is currently building a P2P order book & OTC platform that allows people to skip the tax, and skip the slippage when they trade shitcoins & lowcaps. NFT currently trades at 0.5 E → It can be transferred to tokens later on when they launch (<$1m Mcap of Tokens at the current NFT price). I currently own about 5 Tris NFTs, I’ve been slowly shifting my profits from other coins to this.

• $DMT has been underperforming vs other GambleFi coins. It has retraced hard from $40-50 level that it was trading at early this month. It’s now trading at $20 at $3M MCap, pretty undervalued considering the pipeline of products that they’re launching soon — Sanko TV for Streamers, New Games, etc. I’ve been a fervent supporter of $DMT since Day 1. Watched how their v1 tokens were exploited and how quickly the team launched v2 and compensated everybody in a timely manner. I bought more $DMT v2 tokens and it retraced 60-70% for 1-2 months. I kept on DCA’ing until $5 and watched it pumped to $40+ (taking partial profits on my principal). Why so much conviction? They’re adapting to the market, showcasing how a successful GameFi model should be in this current market environment. They’re pushing the boundaries that TreasureDAO & TridentDAO fail to push.

• No new interesting tokens to ape into today, all eyes on $AERO liquidity launch tomorrow — depending on the market sentiment, I might ape in (As long as the market stays green and we don’t see BTC ETH red scam wicks lol)

*Reminder to Size Your Entry for Degen Plays and Take Your Principal Out (Take Profits) Whenever You Hit Your Target*