The more things change…the more they stay the same. That’s a quote I use over and over on
this channel, because it’s true in this world, especially in the crypto markets. Things change,
but there are always major similarities from the past. Understanding this feature,
and how to navigate it, can help you so much in crypto and finding altcoin winners. And
let me tell you, there is reason to this rhyme…figure it out in about 10 minutes,
because it’s time for Chico Crypto!!
A circle is an object where a point is crossed multiple times if you kept traveling around
its shape. If you travel at the same speed, these points are hit at certain intervals in
time…The crypto markets are cyclical in nature because of Bitcoin…whose market cycles happen
in 4 year time spans, acting very similar in each one….with the past heavily influencing the future
Thus the same thing can be said about altcoins…and altseasons….past happenings and narratives have
an effect on future outcomes…And guess what?? I have a big feeling,
a big narrative from the end of 2020 is going to resurface in another form…
The summer of 2020 saw something special from
the crypto markets…the launch of DeFi into the crypto mainstream…
Things like Uniswap for decentralized trading,
MakerDao for a decentralized stablecoin…were turning the crypto markets on their head…
But one of the biggest innovations came from the unlocking of liquidity in DeFi through synthetic
assets providing deep exposure to a range of assets like never before in decentralized
finance. Synthetic assets…sythentix…yeah that’s the crypto project I’m talking about…
Throughout 2020 and the explosion of DeFi onto the scene, Synthetix had
one of the most spectacular runs. As we can see in November of 2019,
synthetic was sitting at rank #67 on Coingecko…by January of 2021 it was sitting at rank #17…
Well time has passed since that run,
and like I said…the more things change…the more they stay the same…
Synthetic will once again go on a spectacular run…regaining it’s previous rankings on
Coingecko…and I actually spotted this all the way back in January of last year…let’s watch now…
I was insinuating that SNX throughout 2022 would retake its old position of
rank #52 from rank #103 on Coingecko, as we know SNX is getting close to that,
rank #67 today….so it’s happening, but I have a feeling, it won’t stop at 52…I
have a feeling rank #17, which was hit in 2020, will be retaken by Synthetix…
Why?? Well, just like in 2020, SNX is innovating the DeFi ecosystem,
bringing it one step closer to competing with traditional finance…
Synthetix is creating something that is going to solve one of the biggest problems in crypto
while unlocking liquidity for DeFi once again. Synthetix is close to the release
of Synthetix teleporters…their cross chain solution that will allow instant liquidity
movements between multiple chains, without inherent risks of the bridge architecture.
Basically with teleporters, it makes what chain you are on obsolete. You want to buy an asset,
but they are on a chain with no liquidity?? No problem,
just interact with the Synthetix dapp, buy the token from a chain with liquidity,
and then it moves the synthetic asset from one chain to the next. Aka this is cross
chain liquidity…aka this is going to be a big reason Layer 2 DeFi summer of 2023 goes down…
Now if you didn’t know, Chainlink is what’s allowing synth teleporters to
function…specifically Chainlink’s cross chain interoperability Protocol, CCIP…and yesterday,
those stinky boys released a product update…let’s see what they had to say about synthetix and CCIP.
“In October 2022, Synthetix, Aave, and Qi Dao began testing an early alpha version of CCIP
across three testnets. CCIP is now being actively tested across three testnets with 25 test partners
(and more to join later), involving a wide range of use cases from governance and gaming to
cross-chain token transfers and NFTs. This testing phase helps ensure that the production version
meets the functionality and security demands of the rapidly expanding cross-chain economy. The
current version of CCIP is near feature-complete in terms of the initial mainnet implementation.”
CCIP is seriously close to an initial mainnet implementation!!! Now think what is going to
happen when this goes live and synthetix will be used to move billions of dollars
across chains and networks...SNX is going to run and smash through the Coingecko rankings…
Now another narrative, the markets seem to have forgotten is NFTs, non-fungible tokens.
They were the talk of the town in 2021, but their hype has fizzled out with the crashing markets.
But NFTs will make a resurgence as technological innovation pushes them into their next paradigm…
With defi-esque NFT trading terminals like Blur,
and the multitude of NFT collateral lending platforms, the NFT ecosystem has grown beyond
collecting art, exploring the metaverse, and joining in on the PFP community culture. The
NFT economic structures have morphed into a trader’s paradise.
For many segments of the ecosystem, it’s not even about the jpeg anymore. It’s all about
the numbers, the trade volume, and trends. Love it or hate it, the current landscape of buyers,
collectors and traders are web3 native… These systems and platforms have created
a thriving ecosystem that is fully detached from the woes of the cryptocurrency market.
The NFT market is now independently transacting billions of dollars in trade volume on its own.
The fact remains, that when money is involved, you better believe all the financial tools,
products and platforms to transact will follow… While exploring the multitude of
projects shared with me through my community telegram channel, MEZZ caught my eye . It’s
bringing high-level traditional finance to NFTs thru a decentralized solution. Helping users
acquire NFTs, and or bundles of crypto tokens, through a bidding-backed collateral extension…
In other words, it helps users find access to immediate liquidity to buy assets they
don’t have the funds to purchase on their own. MEZZ is a blockchain-based platform creating a
DeFi interpretation of mezzanine finance. Traditionally used for companies to raise
funds for specific projects, or to aid with company acquisitions through a hybrid of debt
and equity financing. This gives buyers access to welcome liquidity, while giving protection to
the lender through the right to convert the debt to an equity interest in the company, in case of
default. Or in this case, to the NFT, or bundle of crypto assets the financing was used for.
Let’s say you’re in the market for a Crypto Punk NFT, or maybe you want to buy 10,000 LINK tokens,
and you see it’s undervalued. You know you need to buy it NOW, but you’re short half the
Ethereum you need to acquire… MEZZ is creating an open marketplace to request the extra liquidity
needed. You set your terms, and offer the loan for others to fill. This allows you to quickly
acquire the NFT, or bundle of crypto tokens, and take advantage of the current market price.
Mezz facilitates the secured holding of the acquired NFT, or crypto assets, in escrow while
you pay back the lender within the timeframe you specified. Once you successfully repay the lender,
the NFT is released to your wallet and you are the proud new owner of your dream Crypto Punk,
and or tokens. If you fail to meet your obligation in time,
the Crypto Punk goes to the lender. Both parties are able to collaborate
on the acquisitions in a trustless manner that is to their mutual benefit.
Although the project is in its early stages, it promises some strong use cases,
and impactful utility for the NFT, and ERC20 market as a whole. The existing defi lending
solutions require you to own the NFT first, before getting collateral. With Mezz, your portion of the
purchase liquidity is all you need to access the funding to acquire. Mezz really does feel like
a low cap hidden gem in its earliest of stages… especially noticing they just made their way onto
CoinGecko with a very modest $4M fully diluted market cap. That’s a lot of room for growth,
and with some very strong advisors behind them like Danny, the CFO of Illuvium, JP,
the Co-Founder of ARCADE, and NFT artist Jack Kaido, Mezz definitely looks to be a game changer
and I am excited for the upcoming release of their platform. Cheers viewers, I’ll see you next time!!
foreign [Music]