Issue 9
December 9, 2022

Decentralized Derivative Exchanges & December Watchlist

Contents

Introduction

By Ivan Liljeqvist

Welcome back everybody. It’s been another exciting week in crypto and we’re pleased to bring you the next edition of The Blockchain Review. There’s been word from Gary Gensler of the Securities and Exchange Commission, as well as some senators in the US, prior to special hearings due to take place in both the House and the Senate, following FTX’s collapse, next week.

 

Gary Gensler reiterated his position that the current SEC guidelines are sufficient for US based companies to know how to treat crypto and that they’re subject to compliance with existing regulations. The Corporation Finance Department of the SEC also warned US listed companies that they are obliged to report any direct or indirect impact that crypto events and collateral events had or may have on their businesses.

 

Elizabeth Warren, who’s been firmly in the anti-crypto camp for years, has co-signed a letter to request information from Silvergate on their due diligence practices. Silvergate was one of the few banks in the US that would allow customers to send dollars to crypto exchanges. FTX and subsidiaries had a total of 20 accounts at Silvergate. She, along with two other senators, expressed their concern that Silvergate may have had a role in the collapse of FTX having facilitated the deposit of customer funds to the exchange.

 

Congress will hold two hearings on the collapse next week and could offer further clues on how the US government will treat the industry and financial innovation going forward. As we’ve seen in the past there are strong views on either side, split roughly between the ‘restriction and control’ and ‘freedom to innovate’ camps. It will be interesting to gauge the general mood.

 

On Twitter Maxine Waters invited SBF to participate in the House Committee on Financial Services hearing on the 13th December but he replied and said he’s not sure he’ll be ready in time. Once he’s finished his learning and reviewing of what happened he felt it would be his duty to appear and testify, but not yet. There is still time for him to be subpoenaed if he doesn’t attend voluntarily though!

 

The House Committee on Financial Services near the peak of the bull in December last year ironically had SBF as a key testifier on crypto’s side. That hearing was upbeat and the average positivity of the senators was notable, it really felt like we were turning a corner in opinion. This time the discussion amongst congress is more likely to be reflective of the bear stage of the cycle, but let’s watch for further clues on how Biden’s Executive Order or any of the Bills are likely to progress.

 

We’ll always provide you with our research to help with your education. We’ll keep close track of the main developments and evolution of the niches in blockchain so that you get the best of the new knowledge. When you’ve finished reading your report then please remember to fill out the feedback form, your research is valued and we’re always open to suggestions.

Cryptocurrency Market Overview and Analysis

By CTO Larsson

Dec 9th, 2022 13:00 UTC

For those new to my analysis, I do trend trading over long timeframes. 

Global tech only has two outcomes: Giant success or catastrophic failure. Tech either does a 100x or goes to zero, with little in-between. Before reaching either end point, the asset price will trend for extended periods.

My process aims to give exposure during those periods of established trends. That way I can enter with more capital for any given risk, compared to a hold only approach. I don’t try to catch tops or bottoms. I don’t worry about intraday movements. My style of analysis is not suitable for day traders or range traders. When it comes to tech, the big gains come from catching big moves over long periods of time.

This is an analysis at one moment in time. Market structure can change in an instant. When presented with new information, I will adjust my opinion accordingly. Technical analysis of historical data is not a prediction of the future. It is a tool that can aid in finding setups for favorable risk-reward and points of invalidation.

FOR GENERAL INFORMATION PURPOSES ONLY, NOT FINANCIAL ADVICE. 

All information presented in this report references an opinion of the author and is for general information purposes only. You must not construe any information presented as legal, tax, investment, financial, or other advice. Nothing presented constitutes a solicitation, recommendation, endorsement, or offer to buy or sell financial instruments. I am not a licensed financial advisor or registered investment advisor. For financial or investment advice, seek a duly licensed professional in your jurisdiction, who can take your specific situation into account. Past performance does not indicate future results. You are always at risk of losing all invested funds. 

Disclosure: I hold Bitcoin and Ethereum exposure, both through company ownership and in my personal capacity, as ETP price tracker certificates in ISK through my bank.

Web3 Wallet: Start Guide

Metamask Wallet

In this overview we are using Metamask, the most popular Web3 wallet and ID system. Alternative methods do exist but are not explained in this overview. For a more detailed tutorial navigate to Moralis Blog.

STEP 1 Download and install the Metamask wallet

Bitcoin dominance remains range bound, as drawn below.

A range can break out in either direction and it’s usually a mistake to try to guess in which direction, before it has actually happened.

At one point it will, and that will be my clue for how to position myself between BTC and alts for the next major move of the markets.

The chart is here shown with 3 day candles.

(figure 1.1) - Metamask Wallet

STEP 2 Get Started

Once downloaded and installed, we are presented the option to 
[Get Started].

STEP 3 Import or create new wallet

Once downloaded and installed, we are presented the option to 
[Get Started].

STEP 4 Opt out of Data collection

Once downloaded and installed, we are presented the option to 
[Get Started].

STEP 5 Set up your password

Next we must specify a password for our wallet, this password will be used when signing transactions (we specify a password and agree to terms in order to continue). This is not a private key.

STEP 6 Watch the instructional video

Next, the wallet displays an instructional video on seed key security. The video is highly recommended for new users, or anyone generating a seed for the first time.

STEP 7 Create your seed phrase

Selecting the [Next] button, prompts the generation of a new seed phrase, a related warning is displayed.

STEP 8 Verify your seed phrase

After revealing our seed phrase and storing it securely, the [Next] button becomes selectable. Proceeding from here, we are asked to confirm the phrase as a final security check, to make sure that you have stored the seed phrase accurately. By simply selecting the words in the correct order, our seed phrase is verified, and the [Confirm] button becomes selectable.

STEP 9 Complete wallet setup

Once selected, the final confirmation page indicates that our wallet setup is now complete. Here we select [All Done] and our wallet is ready.

STEP 10 Start using your wallet

When looking to receive funds (cryptocurrency or NFTs), the public address can easily be copied from the top of the browser extension wallet.

Decentralized Derivatives Exchanges & December Watchlist

Introduction

The fall of FTX – the second-largest crypto derivative exchange- has scarred the industry. In turn, crypto risk lovers shy away from Centralized exchanges to look for decentralized alternatives for trading crypto with leverage. Over the past month, there has been a massive interest in decentralized margin and futures trading platforms. This section will take a look at some of these projects. We will also explore other projects we find interesting to watch this month.

People Also Read

Log In

Sign in to your account and start learning!

Already a subscriber? Click here to Login

You've just read 10% of this publication. Subscribe to Moralis Research to keep reading.

Become informed on Web3's continuously evolving landscape by subscribing now.

Find out more about the Subscription Options