Hey yo, howzit going with my loyal tribe, the Chico Army & for those who are new, just
a lowly viewer of the tube.
You should know by now, but if you don’t, I’m host Tyler & this is the crypto channel
where every episode is a bubbling explosion…..you know our BUM after our morning Coffee.
It’s time for Chico Crypto!
Explosion?
What about BTC this week?
Since Monday, the crypto asset has pushed up day after day from Monday to yesterday
Thursday.
From 11,200 to 11850.
Good stuff…
Although, pulling out the 14 day chart, which I highlighted yesterday, we are still not
past the weekly resistance of 12k, which was hit over last weekend, and when we did hit
it, a big ole explosion, but this time down.
Now, the next thing I would like to look at, side by side with the 2 week price chart,
is bitmex liquidations over the same time period.
When Bitcoin jumped past 10k back on July 26th, then all the way to 11k, by the end
of the day on the 27th, Bitmex had a good amount of liquidations over that same time
period, nearly 185 million in SHORTS.
Now as we can see, liquidations settled over the next 3 days, yet Bitcoin pumped another
1k, from 11k to 12k in that time period.
It wasn’t until August 1st, once 12k was hit that liquidations ramped up & big time,
but this time in the opposite direction, and a whole lot more.
It came with that single candle down, from 12k to just above 11k...Longs REKT by about
174 million Notional value.
So, it’s obvious to me, BTC, is at the whim of manipulators.
They knew passing 10k was a psychological number, which had been defeated more than
a few times in the past, thus they would have a nice set of shorts in between 10k to 11k
to liquidate...once past there 11k, uncharted territory and shorters flee...so it was time
to slowly pump the markets, and get bullish sentiment spreading across the airwaves, that
is why not much action in liquidations happened between , the 28th and 31st of July... even
though BTC moved up by 1k...no shorters left, and setting up, the big one, on August 1st.
I mean it’s hilarious to me, when you pull out the notional value of the liquidations
over the time period, about the same, in longs and shorts, even though BTC has been thoroughly
bullish, a 25 percent increase.
You would think, if this was the “normal” world, the value of the shorts wouldn’t
be right on par with the value of the longs.
But this isn’t the normal world & there isn’t much we can do about it, besides not
play into the leverage game, especially with 50x, 100x, or even like the Nance offers 125x,
because it’s a losing battle, where the exchanges are the only winners.
Although, if you want my opinion of short term market movements it goes like this.
Since the big drop, on August 1st, liquidations have once again been quiet, not much action
on shorts or longs each day...even though we are moving once again up to 12k….just
like what happened before, there aren’t much shorters left, or they were much more
careful, and used less leverage thus more wiggle room.
But bullish sentiment is once again infecting the markets, so I wouldn’t doubt, a slight
12k cross here soon, and then possibly another big ole dip for a big ole taste of long liquidation
tears.
Short term manipulation, is gonna happen, and I don’t like it as much as the next
guy, that is why I don’t even try to mess with daily to weekly trading.
I stick to what I know, and that is how to research, and try to understand the blockchains
being built by the ever growing number of crypto and altcoin projects.
Wednesday, I spoke of a new one who has hit my list, who has ties to the Polkadot ecosystem.
Kadena...and today, I would like to go a little further, because I brushed over a few things,
which are big & need covered.
So, Coinbase listings, they are big and the process of Coinbase doing them has changed.
Coinabse used to just “List” out of the blue and the coin exploded.
Now, they put out a blog post first of assets they are exploring, which usually has coins
on it, they are going to list, and then usually in the near term, within weeks, a coin or
two makes it to coinbase pro and then the regular coinbase app.
But what about the assets, they explore and don’t list?
Are they shat out of luck?
Well I think for a majority of them, that yes, it doesn’t look good to be on the app
in the short term...but there is something special about their September asset exploring
announcement, and it includes Kadena, which connects them to Coinbase & increases a likelihood
of a listing.
So kadena, was explored along other coins, Solana, Handshake, Near, Celo...and others.
The ones who made it through Coinbase processes, where Polkadot, they got to step 1, making
it to Coinbase Custody..but not to Pro, or the regular App...yet.
The only one who made it through the entire thing, from custody to Pro to the regular
app was...Orchid.
But there is something special about this group they were exploring.
And it has to do with something Coinbase just launched.
Their Rosetta API.
The base put out a blog post about it, and this is what it does now.
For developers of new blockchain projects, the Rosetta interface makes it easier to ensure
compatibility with exchanges that use Rosetta, and can dramatically speed up the time it
takes exchanges to integrate with new blockchains and protect customer funds by ensuring specific
security conditions are met.
For the broader community of crypto developers, Rosetta makes it easier to build cross-blockchain
applications such as block explorers, wallets and dapps.
Instead of writing custom parsing for every supported blockchain, applications can use
a blockchain project’s Rosetta implementation to read on-chain data and construct transactions
in a standard format; minimizing code and simplifying maintenance.
And who was a project, who on the same day annoyed they were integrating with the Rosetta
API, putting out their own tweet and thorough blog post about it, getting deep into technicals?
Kadena…
Now I said that the September announcement was interesting, and it is because it seems
to have everything to do with the Rosetta API.
Going to the Rosetta from Coinbase website, they list teams building with Rosetta, now
side by side the September announcement.
Celo on both, filecoin on both, coda on both, near on both, blockstack was announced being
looked at previously, kadena on both, ontology previously looked at, handshake on both, and
sia previously looked at.
So if I had to bet my bottom dollar, that is just a saying, not what I’m gonna do...I
would bet that these coins are looking to be added to Coinbase.
You may ask yourself why?
Well what does the Rosetta API do for new blockchains?
It’s for a quick, easy solution for them to hook up to an exchange, Coinbase’s Chief
product officer, Surojit Chatterjee, said that in their blog post about the solution.
The Rosetta interface makes it easier to ensure compatibility with exchanges that use Rosetta,
and can dramatically speed up the time it takes exchanges to integrate with new blockchains
and protect customer funds by ensuring specific security conditions are met.
Like hooking up to your own exchange?
Like hooking up to Pro & the wider Coinbase crypto ecosystem you are attempting to build?
So, the crypto’s working with the Rosetta API, #1 kadena, because they put out the blog
post 1st, a thorough one and technical one than any of the other projects.
But the others, of course they should be to and we will get into the ones in a bit who
I think have the best chance.
But first, a word from the sponsor of this video, Statera, a smart contract based DeFi
token who is looking to make moves in that space.
And like always, the full details of our agreement, which came from the projects community, can
be found in the description.
Now DeFi, and the power of token smart contracts is allowing things to be built, that were
an afterthought 1 year ago.
Statera combines the two to make their product, which is an Ethereum powered deflationary
token pegged to an index fund of tokens which right now includes the likes of chainlink,
bitcoin, synthetix, and heavy on ethereum.
I’m sure you're like Huh?
Deflationary token and smart contracts?
Index fund of crypto tokens?
Well let me try and break it down as easy as possible.
And begin with the most simple thing.
The deflation.
1 percent of a transaction is burned and thrown into the abyss..although I’m sure you have
heard of that from other projects but the way it happens, and force of it, is unlike
any project you have seen.
The 1 percent of a transaction deflation occurs with Statera through a combination of liquidity
pools.
From both Uniswap and a new one making waves in the DeFi block...Balancer..who ironically
Coinbase was exploring adding them in their most recent addition post, just last week.
Now, STA is just the normal, time time tested, exchange ready erc20, with deflation coded
into its core.
To get STA, you need to buy it off an exchange, like uniswap, but for each purchase, buy/sell/transfer
or smart contract call of it 1 percent is burned.
Now, here is where the liquidity pools come in.
STA is a way of bringing deflation, into liquidity pools, to Uniswap and then Balancer, where
the index funds are.
First they have their own Uniswap pool liquidity token, called the Statera Delta token.
Which is a wrapped token, consisting of 2 assets STA and Ethereum, a 50-50 split enforced
by smart contracts.
A simple index fund, of sorts, where you have 50 percent exposure to Ethereum, and 50 percent
exposure to the deflationary STA.
But this token is highly important, as it’s the gateway to the cream to de le crop of
their Product, the balancer Index Fund they have created.
This is another liquidity pool, within Balancer, and it’s called their phoenix fund.
but the thing about balancer is it’s a programmable liquidity pool, which can balance funds based
on weight.
The weight of Statera’s balancer fund is 40 percent, Statera’s Delta token, 30 percent
Ethereum, 10 percent wrapped bitcoin, 10 percent chainlink, and 10 percent synthetix.
So what happens here, is when Statera is going down, the fund needs to be rebalanced, which
is automatically done, with Balancer’s smart contract portfolio manager.
Since the weight is heavy on Statera Delta, a ton of buying and selling is done in the
external markets, utilizing arbitrage opportunities, including the Uniswap Delta pool, thus STA
is being burned as the fund is rebalanced.
Same goes with STA going up...the fund is always putting deflationary pressure on the
price.
This all makes up the Statera ecosystem so far, and as you can see the Delta Uniswap
liquidity token is an integral piece to it all...but one things we haven't mentioned
is they do have the delta token pool, which is a pool, made up of 25 percent delta token,
and 75 percent ETH...giving you more exposure to ETH, and smaller exposure to STA...which
could be put into other index products soon increasing the deflationary token reach further
than just their ecosystem.
Now, it’s time to figure out, from those projects involved with Coinbase’s Rosetta,
who could added to the exchange in the future besides my #1 pick Kadena?
Well out of the rosetta list, there is one that is oh so obvious.
It’s Celo, because that coin is from none other than Coinbase’s best friend Andreesen
Horowitz a16z, they put out a detailed blog post about it, explaining why they are funding
it.
Then Just in March of this year, the Celo Alliance was announced as a competitor to
Libra and from the tech crunch article cover it they said “The Alliance For Prosperity
includes Andreessen Horowitz (which funded Celo), Coinbase (Ventures), Bison Trails,
Anchorage, and Mercy Corps…
Hmmm…..but as a Libra competitor, that could take so time to get regulatory clarity.
What else could a16z, have their hands on which was on the rosetta list?
Actually a few of them..a16z has their crypto portfolio open to the public.
On it is of course Celo, but also the one who made it all the way through, orchid, but
then next to each other, is filecoin and handshake, both also Near….
So these are the Coins to keep on eye on for the next listing in my opinion, those connected
to the base and implementing rosetta, because it has to do with connecting blockchains to
exchanges.
Kadena, Celo, Handshake, Filecoin or Near?
Cheers viewers I’ll see you next time!