Welcome to the latest edition of ‘The Digital Asset Digest’. Today, we discuss how to determine the value of digital assets and talk about the future of social media platforms.
Crypto Market Liquidations Exceeded $139 Million Following Ethereum’s New ATH
“Following Bitcoin and Ethereum’s sudden price rally, numerous short positions on the market were liquidated. According to Coinglass, $139 million worth of positions has been liquidated in the last four hours.”
Hayden Capital: Coinbase Will Hit $50B in Revenue by 2025
“In 2025, crypto will have a $6.8 trillion market cap and Coinbase will command $50 billion in fees, according to a bullish report put out by Monday by Hayden Capital. ”
Bitcoin well poised to hit $100k as BTC stock-to-flow model runs “like clockwork”
“The pseudonymous Dutch trading expert known for his Bitcoin stock-to-flow (S2F) model has been closely pathing out the trajectory for the flagship digital asset with price as per the model set to hit over $100,000 by the end of 2021.“
Biden administration report on stablecoins calls for laws to mitigate risks
“In the U.S., tension has been brewing for some time over the regulation of stablecoins. Securities and Exchange Commission chair Gary Gensler has been arguing for regulatory authority over stablecoins, which he believes are securities, as well as more oversight over the entire crypto market.“
FTX backs African fintech unicorn Chipper Cash in $150M fundraise
Source: The Block
“Crypto exchange FTX has led a $150 million Series C extension fundraise for African remittance outfit Chipper Cash, according to TechCrunch.“
INDUSTRY WIDE SNAPSHOT
How to measure the value of digital assets?
Digital assets like cryptocurrencies and NFTs have rapidly become part of the mainstream economy. Several institutional investors, corporations and individuals now hold these assets as part of their long-term portfolio.
Unsurprisingly, there are plenty of ways to measure the price of these digital assets. Investors can tap into real-time statistics about the circulating supply, market price and market capitalization of nearly every digital asset ever created. However, investors still lack the tools and techniques required to measure the value of these digital assets.
In other words, we know how much a Bitcoin is worth in dollars. But how much should it be worth? Is a unit of BTC, currently trading at US$60,000, undervalued or overvalued? Academic literature on this subject is limited, but some tools and valuation methods have emerged in recent years. Here’s a closer look.
EXPLORING NEW IDEAS
Will Social Media Be Decentralized?
This week, social media giant Facebook announced a rebrand and pivot in its business strategy. The company will now be known as “Meta” and will focus on platforms or devices that connect people to the metaverse. The announcement was a signal that Mark Zuckerberg considers augmented reality, virtual reality and remote work critical to the future of social media. But it was also an indication that too much of the existing social media landscape is controlled by a single company.
Facebook (aka Meta) is a trillion-dollar juggernaut with controlling stakes in some of the most popular platforms on the modern web. The core Facebook platform along with Instagram and Whatsapp serve as the intermediary for communications between nearly 3 billion people (half the world’s adult population).
Could it be time to decentralize these communications via social media platforms based on blockchain technology? Here are some indications that the future of likes, shares and subscriptions is decentralized.
TOKEN OF THE WEEK
Polkadot is a unique blockchain project that seeks to ensure the seamless interconnection of various blockchain networks. Additionally, it aims to address decentralization, speed and security deficiencies that have clobbered many networks in this emerging sector.
Polkadot was launched in 2016 by Gavin Wood, who previously worked on Ethereum, Peter Czaban, and Robert Habermeier. The trio sought to develop an internet of interoperable blockchains as part of a much bigger decentralized web.
Consequently, Polkadot was designed to ensure other networks don’t operate in isolation. Instead, it hopes to “join dots” to ensure interoperability as part of a much bigger multi-chain network. It seeks to operate the same way as HTML, which allows sites, browsers, and servers to share information.
THIS WEEK’S DEEP READ
NFT Project Spotlight: ThorGuards, the Avatars With Utility in THORChain
“ThorGuards is a collection of 9,999 NFT characters with art inspired by the THORChain ecosystem, Norse mythology, and Cyberpunk aesthetics. Learn about how the art and utility of ThorGuards set it apart from many other NFT projects on the market today. “
And that’s all for today! Like what you hear and want to explore an investing relationship through GDA?