The Fundamentals, thee basics...something many hear of, look at them for a quick second
& then they think they need to move onto the more advanced stuff.
Now listen hard, you do not need to, it’s why I play this clip all the time…..well
we're sticking to them today, because it’s time for Chico Crypto!
If you haven’t noticed, I’m a fundamentalist first & investor second.
I wan’t decentralization 1st of course, but I also want crypto to work & provide new
financial tools, with good user experiences.
Bitcoin and Ethereum, hands down provide the most decentralization, but where bitcoin stops
with just payments, ethereum picks up with smart contracts providing new financial tools
through DeFi.
So through 2019 and into 2020...
I’ve been DeFi curious, digging into the ground breaking products, before they were
ground breaking or had a token, like 11 months ago saying Uniswap, would be the tool to kick
the NEXT BULL RUN..
I love Uniswap, I think it’s greeeeaaaat, but scaling with it needs to happen.
So last week you saw me put some heat on it, synthetix and their chosen scaling solution
optimistic rollups.
And I had some people say, I did those videos, because I like xdai...which is far far from
the truth, as today we will do a similar thing with xdai turn the pressure cooker on...and
look at the things I don’t like about it as heat isn’t a bad thing, if the outcome
gets the wheels moving resulting in better work.
So just like we had to go back in history with optimism, let’s go back in history
with xdai.
Xdai was announced over 2 years ago, in October of 2018 as a collaboration between makerdao
and POA.
At launch, xdai was a pure POA chain, with only one validator POA network, but it immediately
“decentralized itself” as much as possible with POA, adding 10 validators to the network
by september of 2019...but this stablechain, xdai still was tokenless….although this
September 2019 xdai blog post about decentralization reveals so much.
They said “As we prepare to upgrade the xDai Stable Chain to the new POSDAO consensus
model, the current xDai validators will become the initial staking validators for this delegated
Proof-of-Stake model”
Yes they were preparing to launch a token, a governance one for the switch from POA to
POSDAO consensus.
Now remember this blog, september 2019...what happened just before this???
Xdai and the chain got its first round of VC funding, from leading crypto VC firms.
B-tech led it with Bitmax and focus labs, but also Bixin & NEO Global Capital, NGC.
UGGG OHHHH…
Predominantly Chinese VCs, BitMax the unregulated exchange out of Singapore, and the investment
ARM of NEO, NGC.
I used to like NEO, but found out things I did not like, so I stopped supporting...well
guesswho suspiciously doesn’t even promote xdai as one of their investments to this day,
nowhere to be seen in their website portfolio.
NGC
Tis not a good sign, when your VC, isn’t even putting the project within their portfolio,
and I would guess, they aren’t holding their tokens
So going to the stake token breakdown, we can see from seed round and private round,
nearly 23 percent of the eventual tokens would end up in some sort of investors hands.
From the release below, we can see both private and seed follow the same schedule.
25 percent were released at listing, in May of 2020, 10 percent released 28 days later,
thus in April of 2020, and the rest of the 65 percent will be released for 224 days after.
So how many tokens was this?
Well they are transparent, it is over 1.97 million, and they broke it down including
how many are released from the 65 percent per day, over 5700.
And they include the token contract.
This means we can figure out how many, these investors have left to receive.
Going to that and looking into the tokens, we can see there are just over 203 thousand,
of the nearly 2 million.
And going by how many are released per day, just over 5700...that means these VCs only
have about 35 days left, a month of getting tokens.
Sell pressure from VCs may finally be over for xdai stake, if that’s what they have
been doing.
And unfortunately even more Tokens were given to these guys, specifically BitMAX for the
liquidity fund...as we can see over 9.6 percent of the supply, over 816 thousand stake tokens,
and 100% released at listing & it was supposed to foster global liquidity.
UGHHH, BS, stupid stupid mistake, as if you go to trading volumes for STAKE, uniswap,
is providing nearly 39 percent of the trading volume for STAKE, while BITMAX is doing just
17 percent.
Decentralization is fostering more liquidity, than a liquidity provider.
I would be pissed if I was on the xdai team.
Sooo, it sounds like xdai needed money in 2019 & they made deals with the VCs that might
not have their best interest at heart, but their own interests.
And if you know what VC stands for Venture Capitalist, that interest is money.
So does that mean I’m dumping my stake because of VCs & in my opinion, a bad token emission
to them?
Well it’s almost over, just over a month and I wouldn’t doubt the downward pressure
on stake has been coming from some of them, they have been selling & making money, that
is what VCs do.
Some are immediately sending to exchanges to presumably be dumped.
Going to the private investor token contract, we can see 5 days ago a large amount was sent,
over 23 thousand stake.
Clicking into the address it was sent to, we can see it was immediately sent to another
address, clicking into that one, we can see it was immediately sent to BitMAX, presumably
to be sold.
But now, once this is over with...it’s time for decentralization, and the good validators
to take over.
As the VCs token supplies go to nill.
Public POSDAO for xdai, was announced on the 23rd, opening up validators to the public,
and allowing the public to delegate their stake to the validators to share in the validating
rewards.
The validators are the ones who have a stake in the network, and usually have it’s best
interest at heart.
And xdai is proving itself as we speak….one of the 4 dapps, supported by Ethereum.org,
as editors choice Dark Forest….they tweeted this 2 days ago “shoutout to xDAI for smoothly
scaling up their node infrastructure to handle the traffic generated by this dark forest
round :)” And some big ethereum boys are playing it,
dark forest retweeted the leader board from Austin Griffith, including Matthew Huang of
Paradigm...who as we know is supporting rollups...aint that interesting
But the round of this game is HOT...Which means, xdai, has once again taken the #1 position,
as the most active public layer 2, pushing once again over 75k transactions per day.
But that’s about to increase even more & it leads me into a BIG token pick.
This episode isn’t all bad..
I put my hands up on my hip, then I dip you dip we DIP.
Yes DIP, from etherisc.
WHY!?
Well in November they put out a blog post, titled “The Road ahead!”
And what do they say regarding their roadmap for the next few months?
Deploy a new instance of GIF (“Generic Insurance Framework”) on the public xDai chain.
Under the new legal framework, deploy the already well known and successfully tested
Flight Delay Product (“FDD”) on the xDai chain GIF using xDai as payments.
Go-Live is planned until the end of year.
This, while enabling DIP token holders to provide liquidity to the first Flight Delay
Risk Pool on xDai Chain.
This will be powered by the first use of ChainLink oracles on xDai chain!
Scaling, Chainlink oracles, xdai, and insurance.
Me likey and the planned go live for the flight delay risk pool on xdai from their blog, go-live
at the end of the year.
Which we are rapidly coming up on...
So, insurance products should be a big hit, especially after what happened with the Cover
exploit yesterday, and then the founder of nexus mutual getting hacked before that...well
going to their website, we can see they have decentralized insurance products designed
for crypto wallets, for crypto loans and collateral, and they even have crop insurance and social
insurance out of the design stage and into the prototype stage.
Fundamentals, what’s working, while providing a wholesome look at those projects, if that’s
what you want.
That’s what you get with us.
Cheers I’ll see you next time!!