Welcome to all of the new subscribers! The next poll is going live with LINK on the chopping block. This can be found on our Twitter by clicking the post below:
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The Past Week
Individuals seeking regulations for cryptocurrencies may soon get it. Gensler appears to be holding the same views as his predecessor Jay Clayton that all ICOs are securities and thus, violate U.S. securities law. In all fairness, his comparison of tokens to public securities show how similar they are. “Generally, folks buying these tokens are anticipating profits, and there’s a small group of entrepreneurs and technologists standing up and nurturing the projects.” Furthermore, he stated that stable value tokens backed by securities are securities. I believe that we will see a lot of volatility in the crypto markets as regulation moves forward.
Other laws targeting crypto this week come from bills coming forward to fund the $1 trillion infrastructure improvements. However, these are still in the works as they hammer out specifics. The other interesting one comes from Rep. Beyer (D-Va.) that is 58 pages long and focuses solely on crypto. It covers everything from which cryptocurrencies are securities, which are commodities, authorizes the Fed to create a CBDC, etc. If you would like to read more about all of these, you can here, here, or here.
With the government finally making moves we see companies following suit. Google is beginning to allow some crypto ads - given they follow their guidelines, but this shows credibility is coming. Does this mean crypto ETFs are coming to the US?
What else:
Moody’s Lowers El Salvador Rating, Maintains Negative Outlook Partly Due to Bitcoin Law (coindesk)
NFT Markets Post Record-Breaking Week (coindesk)
Here’s how much ETH has already been burned due to EIP-1559 (theblockcrypto)
Finnish police offer $300K to broker who can sell $80M in seized Bitcoin (Protos)
Why Is China Launching the Digital Yuan? (chainalysis)
South Korean regulator to reportedly shut down 11 crypto exchanges (cointelegraph)
Uruguayan Bill to Allow Crypto to be Used for Payments (coindesk)
Panic selling is crypto investors’ biggest mistake (cointelegraph)
French Asset Manager Wins Approval to Launch Bitcoin ETF in EU (coindesk)
How Bitcoin impacted Tesla, MicroStrategy, and Square’s Q2 earnings (Protos)
Ethereum’s Hotly Anticipated ‘London’ Hard Fork Is Now Live (coindesk)
JPMorgan Launches In-House Bitcoin Fund for Private Bank Clients (coindesk)
Wealthfront adds support for Grayscale's bitcoin and ether funds (theblockcrypto)
What do our followers think?
Disclaimer: the responses are not apples-to-apples with prior polls and we have no means to verify accuracy of the responses.
Another week of low responses. Is this due to lack of interest in crypto now? People back in the office? We don’t know, but still a relatively good turnout. We are seeing an interesting change though in responses. ETH has over a 50% buy which we have never seen since we started our polling. This is more than likely due to the hard fork that occurred recently - cutting both energy and fees. The rest is pretty consistent with prior polls.
Other than that, even the bullish vs bearish sentiment is consistent with prior polls (55% is bullish) and ownership seems the same as well with 58% saying they own crypto. Overall, 50% of respondents say they are holding which is consistent with what markets are doing right now.
Data:
BTC: 849 total votes; 291 buy, 332 hold, 291 sell
ETH: 838 total votes; 475 buy, 205 hold, 158 sell
ADA: 712 total votes; 228 buy, 194 hold, 290 sell
LINK: 630 total votes; 145 buy, 224 hold, 261 sell
DASH: 591 total votes; 105 buy, 217 hold, 269 sell
FMA People’s Crypto Portfolio:
BTC is staying in…unsurprisingly.
And we are officially back in the positive this week as the portfolio surged upwards, though it remains to be seen whether this too will be transitory. In the meantime, patience has paid off as the portfolio moved into double digit positive territory, ending above even the broad market S&P 500 index. The portfolio was driven mostly be Ethereum, though most crypto was up this week. Link and Dash are still down more than 50% since we added them to the portfolio.
Looking into the crystal ball:
Looking forward we are focused on volatility in the space. We’re likely to see large swings as investors grapple with increased transparency and regulation of Bitcoin. As always, we are monitoring the pandemic and the increased levels of the delta variant across the globe. Mask mandates are being enacted (again) in many urban areas and those with vaccinations can still be infected and transmit the virus per CDC report. Back to school and work plans are in jeopardy as a result. In any event, the portfolio is at a turning point. We hope that increased regulation legitimizes the asset class so that institutional investors begin to have some sort of peace of mind to invest in the asset class.
If you would like to see a live view of the portfolio, you can do that on CryptoCompare.
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We look forward to doing this all again next week, take care!