Adoption News from Visa and ETH ETFs?!, Whales Market & More

The Castle Chronicle: Volume 55

AuthorAuthorAuthorAuthor

unex, 0x_Vlad, CJ CJ & C-L.eth
February 07, 2024

 👀 What’s to Come in Volume 55

🔑 Key News: Headlines, Exploits, Continued Adoption, DeFi Updates, New Projects & more from CJ

⛓ On-Chain Sleuthing: feature along with Smart Money Moves from Cl

🔥 Hot Narratives from unexployed

📈 Macro Outlook: Simplified Round-up and Implications from Hansolar

📉 HTF Price Action Scenarios: from Vlad

⚔️ A Call to Arms

Think you have what it takes to enter the Castle and contribute to funding and advising projects across the space?

🔑 Key News

Major Headlines

  • Visa enabled crypto withdrawals on debit cards in 145 countries

  • SEC likely to approve spot Ethereum ETFs on May 23

  • Fed Leaves Rates Unchanged

  • FTX Exchange won't be restarted & customers to be paid in full, while seeking permission to sell 8% stake in Anthropic

  • OPNX to shut down in February

  • Binance Code and Internal Passwords Exposed on GitHub for Months

Project Updates

Interesting Projects

  • MUD: Open-source framework for large Ethereum applications and Autonomous Worlds

  • Anza: Solana focused devshop

  • Moby HQ: Community launchpad

  • Pandora: ERC404, an experimental token standard

  • Althea Network: Settlement layer bringing open-access infrastructure to people everywhere

  • Rivus DAO: Liquid staking for Bittensor (TAO)

Courtesy of CJ - check out his telegram channel for daily news, projects updates and new releases

⛓ On-Chain Sleuthing

Even Institutions Making Mistakes

We often conflict institutions for “Smart Money”, but this often does not rhyme. Just because institutions trade with huge size, does not mean their decisions are correct.

Last week, we reported that Amber Group DCA’d a $600k position in $RSTK. As of today, February 6th, Amber is down bad. They are now 75% down and have been a clear example of FOMO.

Their reasoning was that due to the cap increase in EigenLayer, Restake Finance would benefit immensely and more TVL would come in as the $RSTK rewards were so high.

Due to poor communication and execution from the team, Restake turned out to be nothing more than a novel pool2 farm-dump protocol that simply wrapped stETH in their own version.

They definitely had the first-mover advantage and milked that to the best of their capabilities. But with the fierce competition and their trajectory, it seems that $RSTK can be written off.

Amber Group moved their holdings to a new address that can be found here.

FHD LONG EIP-4844 play

FHD is Long EIP-4844

A relatively known CT persona that goes by the pseudonym FHD has been taking large positions in $ARB and $OP over the last few days. His position account for multi-five figs.

We thought we would include him here since his content has been great so far.

FHD DeBank Page [visible for free subs]

Whales Market Beta Play on ETH Mainnet?!

I, CL, have been very bullish on OTC projects for a very long time. I think there is a real and tangible usecase for OTC products in DeFi and it is a real primitive.

Recently, crypto saw the launch of Whales Market on Solana. A platform that enables point and future airdrop OTC transactions.

The incurred fees and total users on the platforms speak volume. Their major breakthrough was during the pre-days of the $JUP airdrop and their marketplace around other airdrop points has grown significantly ever since.

We may have found a nice beta play to Whales Market in the Trenches:

Next part is only visible for free subs.

As always, nothing you read here is financial advice.

Research and analysis by Cl

🔥 Hot Narratives

Social-Fi Resurgance

  • Farcaster has received a lot of positive wind after succesful token launches and interest from big names in the platform

    • The mobile apps is a great combination of Twitter and NFTs

    • Does require a one time subscription payment

  • Another Social-Fi project that you want to keep on your radar is none other than DeBank as it has its own L2.

  • Platform is also behind Rabby Wallet (recently announced points and hinting at token)

  • We expect something similar for the DeBank L2.

  • Use the L2 to follow and message with other users and participate in prizes.

  • Metrics on DeBank L2 here

WormHole Airdrop Requirements

  • Last year raised >$200mln

  • Fits in interoperability narrative

  • Less farmed than LayerZero (this will change quickly)

  • Potential qualification factors listed on their site:

  1. Bridge from and to any of the chains mentioned using Portal Bridge.

  2. Vote on goverance proposals from Uniswap and Moonwell on different chains.

  3. Bridge using Carrier, Portal, Allbridge, and Mayan Swap.

  4. Bridge NFTs using Wormhole: DeGods, Y00ts, or Madlads (all three quite expensive, dont recommend unless you have them).

  5. Use any of the cross-chain DeFi products: Synonym Finance, Pike Finance, HashFlow, and MagPie.

Currently, Wormhole is very much underfarmed and in the position to pull the greatest token-launch-frontrun versus LayerZero ever. Like Blur did versus OpenSea.

Wormhole is estimated to have ~150k unique users.

Courtesy of unexployed

Use our referral system to spread the word about the Chronicle!

💹 Macro Outlook

BTC, ETH, and Macro

Han still missing 😥 

Courtesy of Hansolar - check out his telegram chat for all things options, crypto and DeFi

📈 HTF Price Action Scenarios

Gm frens!

Last week I was waiting for some clear bullishness on the LTFs and a clear break of the most recently formed supply zone.

Price broke above the supply zone but got instantly rejected which makes me believe this was just a fakeout. I want to see a clear uptrend breaking through the supply and sustaining price action above it. Once that happens I can look to get involved in a re-accumulation

  • Expansion out of consolidation

  • Deep pullback into demand zone

  • Indecisive price action below supply

To me longing this is catching a knife, which is something I’m trying to avoid like the plague. I’ll simply wait for a clear uptrend showing me that money is behind the move and then I’ll get involved in the pullback.

Until that happens, I’ll keep repeating myself - outperform the market by staying out.

Trade responsibly and I’ll see y’all next time!

Courtesy of Vlad - trend-based trader and MentFX student

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Virtually yours,

The Castle

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In our newsletter, we may discuss projects or tokens in which we hold positions. While we aim to provide informative content, our views are not financial advice. Please conduct your research and consult professionals before making investment decisions. Crypto markets are volatile, and past performance doesn't guarantee future results. Invest responsibly, and be aware of the risks. Your capital is at risk, and we do not accept liability for any losses.

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