Would you like to get free crypto?
We all would! And thanks to community airdrops, this is entirely possible.
As someone who has got my fair share of valuable airdrops, I think I know a thing or two for snuffling out these golden nuggets of opportunity.
The truth is though that the vast majority of airdrops are completely worthless. In some cases, the gas & time required to claim these airdrops can make them completely impractical. For every valuable airdrop that you read about in the crypto news, there are at least 20 that turn out to be worthless.
So, it’s essential that you have an idea of what to look for and how to maximise your chances of hitting the big time. That is exactly what I go over in my video today!
I will be giving you a complete 101 guide as to what airdrops are and why projects do them. I take you through some of the most valuable airdrops over the past year and what we could learn from them.
I also give you some top tips of what to look out for in order to scout these out as well as my thoughts on which potential protocols could be next to drop a token.
You can watch that video here.
📊 Portfolio Update 📊
I bought the dip this week on ETH, BTC & DOT. One has to practice what they preach and I think that the current shakeout was an amazing opportunity to do that. I emptied the clip on all of the USDC that I had been holding for this occasion.
On top of this, I have now officially bought my first Mutant Ape NFT from the Mutant Ape Yacht Club Collection. You can see if over here (more info below). I am also looking to purchase a few more of these from this collection.
There were no other changes apart from that. My updated portfolio is:
ETH 28.76% | BTC 22.62% | SOL 13.23% | DOT 12.44% | HNT 3.47% | UST 3.04% | RUNE 2.89% | ATOM 2.61% | PAXG 2.46% | ADA 2.41% | INJ 1.67% | AR 1.38% | FTM 1.25% | LINK 1.00% | MATIC 0.79%
📈 Thoughts on Market 📈
If you were surprised by the dip we saw last week, you probably haven’t been keeping up with my weekly crypto review. My crypto market predictions have been pretty good lately, but I must admit that my most recent one underestimated just how much we would drop. So, what happened? I can’t say for sure, but I have a few theories.
First and foremost, BTC typically performs poorly in the second half of every month. This is because of options expiries.
It looks like a lot of options traders were betting that BTC would fall in value at the end of last week. Depending on the volume of the outstanding options, these expiry events can have a significant impact on the spot market. In this case, those large Put Option buyers may have manipulated the spot price downward in order for the options to expire in-the-money (i.e., profitably).
Of course, these price moves on expiry could be a self fulfilling prophecy, but it’s a pattern that’s been seen time and time again. I have covered these instruments on numerous occasions on the channel so feel free to watch my most recent video on options data for more information.
The thing is that last week’s BTC options bears were betting that BTC would drop to 58k, so why did it drop lower? The answer: overleveraged longs. Put simply, reckless traders used their BTC to borrow more BTC and bet that the price of BTC would go up. It didn’t and we saw over half a billion dollars in overleveraged longs liquidated last week.
What this means is that half a billion dollars in BTC was automatically sold, causing the price of BTC to drop, which of course liquidated move overleveraged longs and so on. Normally this wouldn’t be a big deal. Half a billion dollars of liquidated longs is a normal week in the crypto market. The difference this time around is that BTC balances on exchanges are very low.
When BTC balances on exchanges are low, this increases volatility because there are fewer people selling their BTC. This means that it takes a lot less money to move BTC prices up or down, and given that the BTC balance on exchanges continues to drop, it means we’re likely to continue to see this kind of volatility in the weeks ahead.
The good news is that this means investors continue to accumulate, and this is despite all of the FUD flying around about, stuff like the possibility of a crypto crackdown in India, US politicians sitting down to discuss cryptocurrencies, and last but not least, the infamous infrastructure bill being signed into law by the US president. This requires its own section.
🇺🇸 Capitol Hill Update 🇺🇸
You might be wondering why what happens in the crypto market depends on what happens in the halls of Capitol Hill in Washington D.C. Besides the fact that a lot of the money in the crypto market came from US investors, US regulators also seem to have a huge influence over some of the largest global “regulatory” bodies such as the FATF. More about that here.
As you might have gathered, a lot has been happening on Capitol Hill, and the development that’s most relevant to crypto is the infrastructure bill which has now become law. This means that poorly defined cryptocurrency “brokers” will have to collect KYC information about users for tax purposes, and all crypto transactions worth more than 10k USD must be reported to the IRS.
The good news is that these provisions don’t go into effect until 2024, and there are some politicians that are looking to push the IRS reporting requirement back to 2026 as well as redefining the term “broker”. So far, a total of 10 politicians have signed on to the initiative, though it’s not clear how far it will get for the time being.
What is clear however is that cryptocurrency is starting to sway politicians, and this is thanks to the actions of crypto lobbying groups such as the Blockchain Association which recently raised 4 million dollars. Crypto lobbying groups might be why a recently passed defense bill contains a clause that requires politicians to clarify crypto regulations.
With the infrastructure bill out of the way, the crypto market has another bill to look forward to: the “human infrastructure” bill which was recently renamed to the Build Back Better bill. The deal was that if both sides of the aisle agreed to the infrastructure bill, the Build Back Better bill would pass without a hitch. This happened on Friday, but the bill still needs to be reviewed by the US senate.
It’s not entirely clear what effect the Build Back Better bill could have as far as crypto regulations go. Back in August, the US department of the Treasury was trying to add even more crypto tax provisions into this second bill. One thing is for sure though, the combined 3 trillion dollar value of these two spending packages will make inflation worse, and this will drive demand for BTC.
🚰 My NFT Purchase 🚰
A few weeks ago, I told you guys that I was looking to buy an NFT to celebrate my podcast deal. This week I also asked for some of your opinions on Twitter about which ones I should buy. There were a lot of suggestions there and it took me quite some time to go through them.
In the end though, I decided to pick up a Mutant Ape from the MAYC. I am also planning to buy at least 2 more over the coming weeks.
While I would have loved to have picked up an original Bored Ape or even a punk, I thought that that money would have been better spent buying the recent crypto market dip.
However, it is my view that the MAYC is a collection that has some of the most attractive return potential. That is because based on their relatively fair price, they confer a lot of the same benefits that come from being a member of the BAYC. Moreover, they have seen an explosion in trading volume growth over the past 2 weeks (1,000% vs. 900% for the BAYC).
Apart from this, there is a really strong case for some NFTs (and Apes in particular) to be an incredible asset over the longer term. Something that I read earlier this week was this op-ed by Andrew Miller, a famous domainer. I recall reading his original op-ed in August when he bought his Ape for $48k.
We cannot deny the mass market appeal that comes from this collection. Over the past two weeks we have had individuals like Jimmy Falon and Post Malone jumping into the BAYC with their purchases. This includes numerous other celebrities who are members including Shaquille O’neal who happens to also own a Mutant Ape.
If you remember my video on NFT collectibles a few months ago, I talked about this appeal for holding a rare asset that is immediately verifiable onchain. One that gives members access to a club that confers benefits from exclusive parties and events. This is something that people tend to place a great deal of importance on.
Apart from their rarity and esteem, there are a number of other benefits that come from holding these apes in the future. As I mentioned in my video today, the Apes are likely to be the recipients of some pretty lucrative airdrops. Apart from the NFT airdrops that have already happened, I think that the Yuga Labs team is likely to release a number more of these. They have also confirmed that they are aiming for a Q1 airdrop of their token.
But finally, I think one of the most significant benefits of owning an Ape is the being part of the community. It doesn’t matter if the community includes any celebrities or not. It’s just the feeling of belonging to like minded individuals who appreciate the appeal of these NFTs. It’s exactly the same feeling I get when I interact with fellow crypto enthusiasts and one of the main reasons I want to hold a crypto event next year.
Of course, I am under no illusion that NFTs are incredibly risky. Many of them will be worthless in the long run. But that’s why I have taken a measured play on it at the moment. Even if it goes to 0, the impact on my broader diversified crypto portfolio won’t be as severe. So, if you guys are considering any NFTs, I encourage you to use a similar mindset.
🔥 Deals of The Week 🔥
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👉 Sign Up To Binance & Get 20% off fees!
Need a walkthrough to get started on Binance? Well, my dedicated video is all you need!
👕 My Merch Store: Big news, I’ve just finished revamping my merch store and it’s looking pretty fly (if I might say so myself).
Also, I’ve just got an order of Crypto Christmas shirts into the Coin Bureau warehouse. These are on the shelves right now and you might one to pick one of those up before they sell out for Xmas!
- HO HO HODL Shirt – https://store.coinbureau.com/product/ho-ho-hodl-t-shirt-2/
- HODL Candy Cane Shirt: https://store.coinbureau.com/product/hodl-candy-cane-t-shirt-2/
All proceeds go towards keeping that Coin Bureau content ad free and elevating the production of those vids!
🔮 Video Pipeline 🔮
- Kraken vs. FTX
- Harmony Update: ONE Price Potential?
- How to spot a shitcoin!
- Complete 101 Guide to Swing Trading
- Tether report: Who’s buying all that USDT?
- Axie Infinity update: Where is it Headed?
- Bullish on Bitcoin? Buy These Stocks!
- Celsius: The best crypto lending platform?
🏆 What’s New At CoinBureau.com This Week? 🏆
That’s about all I have for this newsletter. However, I would like to thank you for your support on behalf of myself and my Team. You are what makes the Bureau what it is today!