🍩 DONUT HOLES

• Pepe hits $1 billion in market cap, thanks to Binance listing

• Do Kwon could face 40+ years in jailtime—if you don’t know, that’s the guy responsible for the biggest crypto wipeout ever ($60B, gone)

• Fed reveals 722 banks have losses over 50% of capital—the banking crisis is definitely not over yet

• Microsoft 🤝 Goldman for privacy-enabled blockchain network

BITCOIN

The “fundamental” of Bitcoin

Ever heard folks say Bitcoin doesn't have "fundamentals"? Well, Bitcoin's got its own set of them—decentralization, scarcity, security, you name it. And here's the kicker, Bitcoin's added a new trick to its bag: NFTs and tokens.

Boom. NFTs and tokens on Bitcoin.

Remember when we chatted about NFTs on Bitcoin that went for millions? Well, it's not just NFTs now, it's tokens too. Like how tokens such as Dogecoin and USDT live on the Ethereum network, clever folks have figured out how to get tokens—dubbed BRC-20 tokens—onto Bitcoin. And guess what? They're getting a whole lot of love.

How much love?

The total market cap of BRC-20 tokens is lounging at $900 million, and $ORDI, the first token issued, has skyrocketed from $0.1 to $20 bucks, a staggering 20,000% increase.

With all these folks rushing in, the number of transactions in line and fees have shot up. Now, there are two ways to look at this:

1. “It’s a catalyst for adoption”

By expanding the use of BTC, it adds a shiny new layer of value to Bitcoin. Got NFTs and tokens you fancy that are on Bitcoin? Well, you gotta use Bitcoin to buy 'em and pay the transaction fees. So, in the long run, this could add another reason for people to buy Bitcoin.

2. “Bitcoin’s under attack”

These new BRC-20 tokens are so hot right now that they caused a traffic jam of 469,000 orders at their peak. Fees for a single transaction rocketed to $20, from less than a buck, which is likely what caused Binance to pause BTC withdrawals.

If this persists, is will be pretty tricky to use Bitcoin for its original purpose: transferring value. Bitcoin can only handle about ten transactions per second. This means the more NFTs and tokens are minted, the less Bitcoin can be used for value transfer. That’s why some folks are even calling this situation an attack on Bitcoin.

WEB2 / NFTs

The Elon Effect

Guess who’s been shaking up the internet (again)? Our meme-lord, Elon Musk. In his latest tweet, he posted an image from an NFT project called Milady. What’s the connection, you ask—absolutely nothing!

Despite the randomness, the crypto world lost its collective mind. The Milady NFT price took off like a Tesla on a drag strip, and its token, $LADYS price? It shot up by a whopping 3400%.

Elon’s insider trading?

But wait, it gets weirder. Just before the Musk tweet, some lucky duck bought $45k worth of $LADYS tokens, which now worth more than a million $$. Convenient timing or insider scoop? We're calling them the Musk Whisperer. Whoever they are, they're rolling in some sweet digital dough now!

Disclaimer before you dive in

A word of caution for those thinking about diving into the Milady pool. Our friends at Lookonchain spotted a bit of a fishy situation - 42 wallets collectively own 23% of all Milady tokens. These addresses all had a sudden Ethereum injection and simultaneous Milady shopping spree, which smells a bit...single entity-ish.

Remember our friendly advice: more concentration equals a higher chance of a crypto rollercoaster. A single entity owning a 23% stake? That's a big red flag. If they decided to sell their hoard, it could flip the market on its head. So proceed with caution, folks!

🐦 TWEET OF THE WEEK

What’s your thought after reading today’s issue? Let us know by replying to the tweet, or feel free to ask any burning questions you may have. We're here to engage and discuss with you!