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News Digest: Investing in nothing is gaining popularity. But WTF?

Igor Grigorchenko

News editor

Jun 2, 2023 at 09:50

Salute to all degens and crypto enthusiasts! This is the buidlbee crypto community team here with new insights and perks of the day.

What’s new in the crypto market over the past 24 hours? We list the main events in the world as briefly as possible. In the second part of the review, we traditionally offer fresh trading ideas that will allow you to get practical benefits from innovations in the crypto world.

Here’s a portion of the short news of the day:

The brand new newsletter with insights, market analysis and daily opportunities.

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  • The U.S. House of Representatives voted to raise the U.S. national debt ceiling. The bill has now gone to the Senate for approval and will soon be signed by President Biden.
  • The founder of OpenAI said the future roadmap for development is that, most importantly, GPT-3 will soon be open-source. This means a large number of clones based on this popular model will soon appear.
  • Today, the cryptocurrency will become fully legal to trade in Hong Kong, which is a proxy market for China. In this regard, many expect a new cycle of growth to begin this summer.
  • Outflows from the exchange in the last 24 hours totaled $200 million, or nearly 10% of the exchange’s reserves. The exchange is in the midst of a scandal that could potentially lead to its collapse.

The phenomenon of collective contagion

The crypto media is trying to figure out what’s going on — an unknown anonymous person raised about $1 million in 24 hours simply by posting his address on Twitter.

Yesterday, a guy with 70 thousand followers wrote on Twitter: “Send me ETH and you’ll get nothing in return”. The tweet went viral and so far has raised over $1.2 million; the original tweet has almost 2 million views.

The crypto media has set up entire investigations in an attempt to figure out what’s going on. From the outside, it all looks like some kind of art action (collective performance) for the abuse of common sense, but people are happy to participate in what’s going on. It seems that in the race for craziness, YouGetNothing.eth is a strong new competitor with meme tokens and paid JPEGs.

The owner of the wallet excuses himself on Twitter:

“There is nothing for sale. I cannot reiterate this enough. People simply choose to send tokens to: YouGetNothing.eth. Or they choose not to. It’s hard to explain exactly why this happened but here goes.”

“The Block” quotes an on-chain analyst:

“It’s not just a small group of speculators either. More than 1,000 transfers have been made to the wallet, according to crypto analytics firm Arkham Intelligence. The largest transfer was for 10.05 ether ($19,150), per Arkham.”

Right before our eyes, the famous slogan from WEF is being implemented: “You’ll own nothing and be happy”. Under the original tweet, many volunteers patiently explained the fundraising rules:

“The more ETH you send, the more nothing you get.”

FLOKI Strikes Back

The popular meme coin began its expansion into the world today:

  • The coin can now be used to pay for any item on the popular AliExpress marketplace. It seems like a genius move!
  • FLOKI is also connected to the Binance Pay payment system, allowing you to pay with the coin anywhere in the presence of Binance Pay.
  • The coin is now experiencing increased volatility; initially, the coin soared by 40%, but local whales took advantage of the situation and began aggressively selling off $FLOKI on the euphoria of the crowd, almost completely suppressing the initial growth momentum.

Something went wrong with WFAI

Another new meme token that combines with the trendy AI theme has been caught in a strange story:

  • Yesterday, the big whale, DWF Labs, bought a huge batch of #WFAI.
  • Already known to all successful traders SmartMoney also bought 920 billion #WFAI yesterday for 5.8 #ETH ($11k).
  • But today it became known that the WaifuAI project is suspected of fraud. Several addresses containing 83.54% of the total were blocked by the project owners; the further fate of the project is not clear. The project lost about 40% of its value in a day. It seems that this time the lucky SmartMoney seriously got into trouble.

$$$ Ideas $$$

[1]: Halving cycles as a price pattern

There’s good news and bad news at the same time. Let’s start with the bad news: Bitcoin finished its first negative month of 2023, with the first cryptocurrency falling nearly 7% in May.

The good news is that things are on track. If you look at the global chart of halving cycles, you can see that we are now in the predicted dip that has been repeated in every cycle. Despite this temporary decline, this historical model is still predicted by an uptrend:

[2] The hunt for privacy coins is open

Binance will delist privacy coin tokens for its customers in the EU. This is another blow to all projects with advanced anonymity. Due to similar legal problems, it is very likely that other major exchanges will do the same for Binance, which will lead to a drop in both prices and liquidity in the market for these coins.

At least it is desirable to get rid of assets from this risky group; at maximum, you can try to short this market. All major coins in this group (e.g., Monero and Dash) are falling right now on this news, but due to the reasons voiced, this may become a long-term trend.

[3] Why dYdX?

dYdX is a next-generation decentralized exchange that is known among crypto degens for its increased anonymity and margin trading capabilities. Today, this exchange announced expansion and simplified the entry threshold for regular users, for which three interface versions will be launched soon. A lightweight web app, an iOS app, and an Android app will be released. There will also be a Typescript and Python SDK for developers to extend the basic functionality of the exchange to their needs.

Investing in exchanges has been considered a reliable approach for many years because exchanges earn equally in a rising and falling market. If you consider the trend in 2023 with abnormally fast growth in popularity of DEX, then the adaptation of dYdX for the mass public can shoot well. The launch of the new version 4 of the exchange is planned for early this summer.

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