FTX Trading Is Back?

Was it just a bad dream?

Jan 20, 2023

Mr. Longtail’s Diary

Dear Readers,

I hope this issue finds you well. Your best *mouse* friend is here to support you mentally, spiritually, and emotionally. And of course, spill the crypto tea.

When I used to work at my 9-5 job, I recall that no email has ever found me well. I was dead inside all the time and slightly depressed. I have always tried to be grateful, hence slight depression. I mean, at least I was healthy, had my salary every month, and the company was fancy. The office building was from the late 90s and so was the interior design. My coworkers in the office’s kitchen were very competitive and it truly was a mouse race (dad joke but I had to).

Nowadays, looking back, I applaud myself for being able to survive there for so long. However, I also learned a lot. My skills helped me to create another, more fulfilling chapter in my career. And I am still work in progress, but don’t we all? I guess the message here is: regardless of where you are right now, keep learning and growing. Don’t give up on yourself. One day it all will make perfect sense to you, and you will be living your dream.

Slay all day,

Mr. Longtail

This week’s tasty snacks:

🧀 - Market outlook: Is the bottom in?

🧀 - Hot News: Justice Department Crackdown on Crypto and more!

🧀 - Project Review: The future of crypto exchanges

🍰 - Those sweet, sweet memes!

🍓 - Your favourite motivation corner!

Market Outlook

Is the Bottom in?

So…in the recent poll you guys decided that the bottom is not yet in:

Who’s going to win? The Bull, the Crab or the Bear?

No one knows! But let’s take a look, and see what data says…

The on-chain data seems somehow re-set. The indicators that were absolutely overheated back in May 21 or Nov 21, are now starting to show bullish reversal.

Realized price and Mayer Multiple shows 2019 & 2015 levels:

Cycle Change Detection Indicator triggered.

Short-Term Holder Confidence, seem to be reversing…

Here a cheat sheet in terms of other trend reversal indicators:

IMHO there is 50:50 chance the bottom is in… We will closely monitor the market and will keep you updated.

⌛’Patience can produce uncommon profits.’ - Philip L. Carret

Find out more at the latest report from glassnode.com.

Disclaimer: The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial, legal or tax advice. The content of this newsletter is solely the opinions of the writers who are not a licensed financial advisors or registered investment advisors. Trading cryptocurrencies poses considerable risk of loss. Authors of this newsletter do not guarantee any particular outcome.

Latest News

FTX Is Back?

In his recent interview with Wall Street Journal, John Ray said he is exploring the possibility of restarting the FTX US operations. Mr Ray currently holds a position of FTX CEO that is responsible for overseeing FTXs bankruptcy.

Apparently, as mentioned by Mr Ray, a special task force has been created to consider restarting FTX.com. Its objective is to recover as much value as possible for the customers. Restoration of customers’ money can also be facilitated through 'liquidating assets or selling the platform' - Mr Ray added.

Do you think people will go back to FTX? (and again, donate to Sam’s Penthouse Charity Club in The Bahamas?)

Find out more at finance.yahoo.com.

Crypto Exchange Bitzlato Charged with Money Laundering

During the press conference on Thursday 19th January, the US Department of Justice informed the public the following:

‘Authorities have seized cryptocurrency exchange Bitzlato, and arrested its co-founder, accusing the firm of fuelling a ‘high-tech axis of crypto crime’. Furthermore, the Justice Department pointed out that: ‘Bitzlato processed more than $700m (£567m) in illicit funds, breaking rules designed to thwart money laundering.’
Bitzlato’s founder is Anatoly Legkodymov, a Russian national living in China.

Find out more at coindesk.com.

CEO of JP Morgan Jamie Dimon: Bitcoin Is a Fraud

‘Bitcoin isn't scarce. How do you know it's gonna stop at 21 million? Is Satoshi’s picture gonna come up and laugh at you?"

said Jamie Dimon, CEO of JP Morgan in a recent CNBC interview that he gave during the Davos Economic Forum in Switzerland.

‘Blockchain is a technology ledger system used to move information. We’ve used to move money’ - he added.

We’ll tbh it looks like it’s a better store of value than the JP Morgan stock…

Find out more at CNBC.

More Crypto Owners in 2022

According to the newly published new report by Crypto.com, global cryptocurrency owners increased by 39% in 2022 compared to 2021. In total, at the of 2022 cryptocurrency owners reached 425 million. That’s almost 1,5 million more than in 2021, as 306 million crypto owners were reported at the end of 2021.

Given that 2022 was a bearish year, numbers above definitely mark a progress in the crypto industry.

Curious to see what the future will bring? Stay tuned and subscribe to Longtail Report!

Find out more at crypto.com.

Genesis Filed for Bankruptcy

On Thursday 19th January 2023 Genesis Global Capital’s lending unit of crypto filed for U.S. bankruptcy protection. The company allegedly owes creditors at least $3.4 billion.
Following the steps of its infamous predecessors, crypto exchange FTX and lender BlockFi, Genesis’ collapse seems to be yet another hurricane in the crypto industry.

Find out more at reuters.com.

Tagmnbagm @tagdemnbagdem

@DCGco

Project Review

(CAUTION: Alpha Leak!)

The Future of Crypto Exchanges

Self-custody: The Adoption Continues

If you’re reading this that means that you’ve most likely survived the FTX collapse. After the SBF drama, everyone discovered (again) the core concept of crypto, which is a self-custody.

Self-custody is like having a 'fort knox' in your pocket!

In the light of current events (FTX drama), self-custody is a growing trend. Thus, we can expect the growth of decentralised exchanges. On-chain perps are likely the future! Rage Trade seems to be positioned well, to eat the piece of the growing pie!

What is Rage Trade?

Rage Trade is a yield and perpetual protocol. It is currently built on Arbitrum and LayerZero. Rage claims to be building the most liquid and composable ETH perp on top of UNI v3. The key features are:

ETH perp with 10x leverage
Omnichain recycled liquidity
Yield generating 80-20 Vaults

Let’s Talk the Nerdy Stuff

Recycled liquidity allows Rage Trade to re-use liquidity across chains and protocols to LP into their ETH perp.

If you own LP positions in:

AMMs (Curve, Balancer, Sushi),
Money Markets (Aave, Rari, Euler)
Derivatives (GMX, Ribbon),

Then, you can recycle your LP shares into Rage using our 80-20 Vaults. This allows users to earn extra yield on their LP shares. And enables Rage to unify liquidity into an omnichain ETH perp. Pretty smart, huh? But there’s more!

80-20 Vaults

Each 80-20 vault accepts a different LP position as collateral (for example, Curve Tri-Crypto). The vault recycles these LP shares to provide liquidity in Rage's ETH perp. The goal of the 80-20 vault is to earn an additional yield on your LP position while replicating the payoff of an ETH-USD LP in Uniswap v2.

The vault maintains the following distribution of assets:

80% of TVL lives in a yield-generating service (Curve, GMX, Sushi etc)
20% of TVL provides concentrated liquidity on Rage Trade

To attract all possible ETH+USD yield-generating assets, LPs can recycle liquidity from all Layer Zero compatible chains.

Airdrop?

Rage Trade doesn’t have a token yet, but it’s more likely that the $RAGE token will be issued, and early users may be rewarded. Additionally, using Rage may increase your chances for both LayerZero and Arbitrum speculated airdrops (if the snapshot is not taken).

Find out more at rage.trade!

Memes of the Week

Who’s liquid nowadays? ¯\_(ツ)_/¯

Mr Longtail’s Motivation Corner

Quote and Book of the Week

‘Realise deeply that the present moment is all you have. Make the NOW the primary focus of your life’.

Eckhart Tolle, ‘The power of now: A guide to spiritual enlightenment’, available at: Amazon

Living in the past

How are you feeling right now, in this very moment? Thinking about how tiring this week has been? Or how annoying your client or boss were? Maybe you are reminiscing about your past, questioning some career decisions you have made couple years ago? If so, my friend, you are currently living in the past (and I want to borrow your time machine to see how I would prosper in ancient Rome as a patrician mouse).

Living in the Future

Now you are thinking how busy the next week at work will be. How many emails you need to send, how many trades you must make. You plan the grocery shopping and coffee chat with a potential business partner. Here is the news for ya: congratulations, you have successfully teleported yourself to the future. You can be featured in the next Interstellar movie (if there would be one, very much needed btw).

How to Start Living in the Now?

But jokes aside, living in the present moment is hard. It requires from us to be mindful and focus only on the now. I started the practice of focusing on the now couple years ago, going through some life hardships. I had nothing to lose so I decided to become more spiritual to ground myself in something bigger than my ego and my constant unmet needs. And let me tell you, it helped tremendously.

The Practice of the Now Really Works!

At first, it felt weird. I sat for 10 minutes and tried not to think about the past or the future. ‘Where is that biggest gouda slice I saw in the fridge yesterday? Maybe this mean mouse from 10B came and took it when I was sleeping. I shouldn’t go to sleep so early!’.

But then, I looked out the window and saw a beautiful big tree. I passed it by every day but this day I saw its beauty for the very first time. So, I sat and glared at the tree and suddenly I was in the now. 5 minutes passed and I felt refreshed, recharged. I no longer was angry at the mouse from 10B. ‘I am sure I will get some amazing brie today as today people go to the market’ – I calmly thought to myself.

That said, I highly recommend trying this exercise, even for 5 minutes per day. It is proven to work on mice and on people. Good luck!

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