October 31, 2021 - INSIDER TRADING Scandal!!
About a month ago, it was revealed that several top officials at the Federal Reserve had been trading stocks, bonds and other assets during a time of the most unprecedented Fed action in its 100 year history.
Many have pointed out that this is insider trading by the ultimate insiders - those at the helm of the money printing machine.
Now, whether these individuals did in fact trade on material nonpublic information is yet to be determined. But it did create further distrust in a Federal Reserve that has already lost a great deal of credibility due to their handling of inflation.
However, I think that this insider trading scandal could have much more severe implications for the Fed than most people think. That is because it could provide perfect fodder for those opposed to Jerome Powell to replace him. To replace him with someone who would be more accommodative to lax monetary policy. Someone who would allow inflation to run rampant just so long as it served the broader agenda of those in power.
And, if this reality is to come to pass and inflation turns to hyperinflation (as Jack Dorsey predicted), what would it mean for assets like Bitcoin?
This is all covered in my video today which you can watch here.
✅ FUD about Causing FUD ✅
Sometimes when I make a video that raises concerns about a project, diehard community members accuse me of “spreading FUD”. This could not be furthest from the truth.
When I research a crypto project, I leave absolutely no stone unturned. Not only that, but I have a whole team of people who are helping me do the same.
- We watch every single interview
- We read through every single blog post
- We comb through every single page of a project’s documentation
- We collect every single news story about a crypto project that we can
- We even dig deep into their social media and the social media of their founders
To put things into perspective, the document that contains this research is usually twice and sometimes three times as long as the script that I write when I make the video - so yeah, it’s pretty damn thorough.
Sometimes I will find stuff that’s seriously questionable, and this is more so the case for some crypto projects than it is for others. That said, no crypto project is perfect and I always voice my concerns at the end regardless of the project and I also always leave links to the relevant resources in the video description.
If you’re wondering why I don’t reach out to a crypto project when I find something concerning, it’s because I already know what they’re going to say...
They’re going to tell me that everything is super-fast, super decentralized, super secure, that the coin or token distribution is super equitable and so on. Not surprisingly, this is exactly what the founders and communities of some crypto projects will say when I raise valid concerns based on information that’s publicly available and verifiable.
The backlash that we receive from these community members can sometimes be strong and sustained. It’s a challenge to deal with such an onslaught but I will never waiver. That is because it’s my mission to bring you the most unbiased and impartial crypto education I can.
Am I saying that I always get things right? Hell no!
Sometimes I get things wrong, because sometimes we’ll miss a news piece or blog post. This happened recently with Algorand for example.
The thing is that I only issue a correction if what I said runs contrary to publicly available and verifiable information, which is why I issued a correction for Algorand at the start of my Algorand tutorial video.
It should go without saying that some fancy meme or video or tweet by a crypto project founder or top community member created in response to my concerns doesn’t count as a source. If you count stuff like that as a source, don’t be surprised if you end up getting hurt later down the line.
As the saying goes: you can either be right, or you can make money. Always do your own research instead of taking a crypto project or its community members at their word.
📊 Portfolio Update 📊
No changes to the portfolio this week guys. Not too many attractively priced opportunities at the moment that really caught my eye.
However, given that I have recently signed a podcast deal, I have been looking to reward myself with an NFT - just something to remember the moment. I’m doing due-diligence on some collections at the moment and speaking to resident NFT experts.
As always, I will keep you updated on my portfolio changes as well as my NFT hunt in my Telegram channel
ETH 26.79% | BTC 21.73% | SOL 11.84% | DOT 10.82% | USDC 5.40% | PAXG 3.72% | RUNE 3.60% | ATOM 3.34% | UST 3.06% | ADA 2.54% | HNT 2.23% | INJ 1.58% | MATIC 1.31% | LINK 1.06% | AR 1.00%
📈 Thoughts on Market 📈
It’s been another hot week in the crypto market, and it looks like the money has finally started moving from BTC into altcoins. The first recipient of this momentum tends to be ETH, and when you couple that with the Altair upgrade that happened on Wednesday, you have a recipe for a new all time high. That’s exactly what we got, and it looks like ETH isn’t done quite yet.
If you look at ETH’s price action on the daily chart and zoom out, you’ll see that there are two big bullish patterns. The first is the huge cup and handle which began forming way back in mid-May. The second is the inverse head and shoulders which began forming in early September.
These two patterns point to a 6k ETH in the coming weeks, and I bet the news that’ll take it there is the announcement of an Ethereum futures ETF which some experts are expecting in early 2022. That’s because of the amount of options expiring in March of next year with high strike prices.
The altcoin that caught my eye this week though was Litecoin (also Shiba Inu, but I’ll get back to that dog in a bit). As reported by CoinTelegraph, transactions on the Litecoin blockchain recently approached all time highs.
This seems to be due to the release of the Litecoin Visa Debit card but I wonder if what we’re seeing is whales preparing for the release of the highly anticipated Mimblewimble side chain. For those that don’t know, this will give Litecoin privacy-preserving features that will allow users to send anonymous transactions.
Now, this wouldn’t be a big deal were it not for the fact that LTC still hasn’t popped like other large cap alts. Even though LTC is quite a way away from it's all time high, it is in a visible uptrend, and this makes me wonder when it will finally pop. I really think Mimblewimble is what will do the trick, and you can learn all about it by watching my most recent video about Litecoin.
Before I let the dogs out, I’ll give a quick congratulations to anyone holding metaverse related cryptocurrencies such as Decentraland (MANA), The Sandbox (SAND), and Axie Infinity (AXS).
All of these cryptocurrencies rallied like crazy because of Facebook’s metaverse announcement, which is very interesting to say the least. If history is any indication, these price pumps will be short lived, so keep that in mind before you feel too much FOMO. Speaking of which…
🐕 Thoughts on Shiba Inu 🐕
A few months ago, I made a video about Shiba Inu. I thought it at least warranted a video given that Coinbase had announced they would be listing it. It was an interesting video to research and there was a lot more to the project than I had initially thought.
As I speculated, Coinbase was likely holding off on a SHIB listing until the devs released the Shibaswap DEX. This would make the project sufficiently “complete” to meet Coinbase’s arbitrary listing requirements. I also mentioned in the video that the listing of SHIB on Coinbase would give retail traders an opportunity to pile in on a “cheap” altcoin.
What I didn’t expect was just how much SHIB would rally. This week it briefly overtook Dogecoin and even Polkadot.
So, this once again got me thinking: What on Earth is going on?
Well, there are a combination of factors. Some are rational, some irrational. On the irrational side, there are people that are buying it because they think its low price is indicative of value. As is always the case, you have to consider the market cap of a coin to determine its upside potential. SHIB will never reach 1 cent as that will imply a market cap 5 times bigger than Bitcoin.
I’m not saying that all SHIB holders think this, but there is a strong contingent of first time buyers that do. I still run into people who won’t buy Bitcoin because they say they “can’t afford it”.
On the more rational side, unlike Dogecoin, there are things being built on Shiba Inu. Shibaswap seems to be working as intended and Shiba Inu has just launched Shiboshi which are their NFTs. Do not underestimate the retail appeal of memecoin mania mixed with NFT hype - it’s bound to draw interest.
On top of this, you also have to consider the power of the community drive behind the project at this point. They are creating a SHIB army that is rallying to get businesses to accept SHIB for payment (companies like AMC for example).
This army is also able to create a self reinforcing price & hype cycle. The more people want to trade it, the more exchanges start listing it, and the more people are exposed to it who will then also trade it. For example, there is now an online petition to get Robinhood to list SHIB.
While the CEO of Robinhood has been mum about a listing, I think it's only a matter of time. Their crypto revenue is down 78% from the last quarter and they are hemorrhaging cash. Listing a token with such high demand would go a long way to getting them back into the black. Moreover, it seems illogical for them to offer Dogecoin and object to Shiba Inu - especially given the fact that the latter has more utility & use cases.
On top of all this, you have to consider that there are a lot of people taking out leveraged positions in SHIB. Open interest on SHIB futures contracts is near record high and it appears that most of these are in long positions. Some think that those that are taking on this leverage may be reinvesting their profits into further buying SHIB in the spot market thereby pushing up the price more. Moreover, there is no appetite to short SHIB right now for obvious reasons.
So, with these factors in play, it's hard to tell where SHIB goes. Fundamentally, it is due for a correction at some point but I would be lying if I said I knew exactly when. Whales hold a large proportion of the supply and any sales by these individuals could tank the price. You then also have to consider the possibility of cascading liquidations that could come from those overleveraged.
Therefore, if you hold Shiba Inu, tread carefully. It doesn’t deserve the hate it gets, but it's no Ethereum, Cardano or Polkadot. My opinion of course & not financial advice.
🔥 Deals of The Week 🔥
🔒 Max Crypto Security: With crypto prices recently going through the roof, now is probably a good time to reevaluate your crypto security setup.
A few weeks ago, I told you guys about the benefits of the Shamir backup. This basically allows you to setup multiple seed words on your hardware wallet and require a certain number of seeds to reset a hardware wallet and regain access to that crypto.
So you might set up three seeds with a Shamir backup and require that two seeds are used to be able to regain access to that crypto. That means that if you lose access to one set of seed words, then that crypto is not lost forever.
It also means that cracking that hardware wallet isn’t as simple as a crypto thief finding one set of seed words and getting access to your stash.
The hardware wallet that I am personally using to secure my coins and tokens with a Shamir backup is the Trezor Model-T.
Oh yes, it also supports over 1000 coins and tokens too. So, that Trezor Model-T is pretty much a one stop storage solution when it comes to crypto.
👉 Get a Trezor Model-T Now & Upgrade Your Crypto Security!
🔮 Video Pipeline 🔮
- Best Crypto Books You Have to Read
- Coinbase Pro Vs FTX: Which is best?
- Crypto custody: Complete 101 Guide
- Chainlink Update & LINK Price Potential
- Fantom Update: FTM Coinbase Listing?
- FATF recommendations: Here’s what you need to know!
- The Rich Don’t Pay Tax: Here’s How!
🏆 What's New At CoinBureau.com This Week? 🏆
✅ Ellipal Titan Wallet Review - Next Generation of Hardware Wallet?
✅ Amp Token Review: Paving the Way for Digital Payments?
✅ Top 8 Mobile Wallets: Safe, Secure and Portable
That’s about all I have time for this newsletter. However, I want to thank each and every one of you guys for helping the channel pass 1.5 million subscribers!
Honestly, the team at Coin Bureau are blown away by this and it’s truly a privilege to be able to help educate so many people about this crazy crypto world.
I’ve recently put out a short thank you message to let you know my thoughts on all this incredible support!
Anyhow, I hope you have an amazing Sunday and that you get solid value from my last video.
Guy your crypto guy
Guy is one of the founding members and face of the Coin Bureau. Like many of us, he is just an average joe who became “crypto curious” back in 2013. After recognising the potential of blockchain technology, Guy set off on a mission to create crypto educational content, working with others to start the Coin Bureau website and released our first video on YouTube in 2019. You can learn more about him in his Who is Guy? blogpost.