Infinite Money Glitches, Multicoin’s AAVE Dump, and More

WEEK IN REVIEW

Multicoin’s DeFi Disaster: Firm Spotted Dumping AAVE After Brutal 55% Drawdown

Onchain data shows Multicoin Capital is now more than $40 million underwater on a large AAVE position built through Galaxy Digital’s… read more

Editor’s comment:

To be fair, 55% is somewhat mild in crypto, and the sunk cost fallacy can be deadly. If the bear market deepens, BTC dips, and altcoins get even more wrecked, Multicoin might end up looking fairly smart right now. Also, AAVE is a forsaken governance token.

HYPE Jumps 17% After Hyperliquid Grants Coinbase Rights to USDH Assets

HYPE reached a yearly high of $46.93, soaring 17% in 24 hours following news that Coinbase will stake HYPE to activate AQAv2… read more

Editor’s comment:

This seems like a massive win for Hyperliquid but only a slightly exciting PR move for Coinbase. Ryan Watkins said that given stablecoin yield is the largest revenue source in the industry next to trading fees, Hyperliquid is “now the first blockchain to internalize both,” which is a “fundamental transformation of Hyperliquid as a business.”

Kevin Warsh Confirmed as Fed Chair as Lawmakers Split on Independence

Kevin Warsh’s confirmation as Federal Reserve chairman drew split reactions from lawmakers over inflation, affordability, and central bank independence… read more

Editor’s comment:

Tom Lee predicted that the S&P 500 would reach 7,300, and turned out to be right. The second half of the prediction was that markets would experience a drawdown, potentially driven by the entrance of a new Fed Chair, as has happened in the past. We will see if Lee’s right and if the Fed’s dot plot is still taken seriously through Warsh’s tenure.

Saylor’s Infinite Money Glitch? STRC Preferred Stock Smashes $1.53B Volume Record

Michael Saylor’s Strategy reported an all-time high trading volume of $1.53 billion for its STRC preferred stock… read more

Editor’s comment:

Infinite money glitches usually pop up during times of euphoria and irrational exuberance, and this is not one of those times. It will be fascinating to see how the mechanics of STRC hold up during a steep downturn, and if we get a breakout, just how high MSTR will go. It’s hard to tell if Saylor’s empire is a house of cards or a freight train that has reached escape velocity.

Warren Says the CLARITY Act Will ‘Blow Up the Economy’ as Senate Panel Votes 15-9 to Advance Bill

Senator Elizabeth Warren launched a sweeping attack on the U.S. digital asset market structure bill during a Senate Banking Committee hearing on May 14.… read more

Editor’s comment:

Luckily, based on the statistics discussed in this issue of the newsletter, the economy is already blown up and won’t get much worse for the average person just because digital assets are regulated. It was a valiant effort from Warren, but ultimately, CLARITY will see the Senate, likely in June.