Cryptocurrency, Bitcoin, Ethereum, GME, Doge Update.

Boxmining avatar Boxmining
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Latest Bitcoin and Cryptocurrency news and trends. We take a look at the key events affecting the blockchain sector and review market movements. Combining both fundamental analysis and technical analy...

AI Analysis

Hey there! So, this video dives deep into the wild world of crypto, fresh off the back of that crazy GameStop saga. It’s all about how the GameStop incident really pulled back the curtain on traditional finance, showing how rigged it can be, and why that’s pushing a whole new wave of people towards crypto and decentralized finance (DeFi). We explore the market’s movements, the exciting rise of meme coins like Dogecoin, and the crucial lessons on how to navigate the risks in this fast-paced space.

Here’s a breakdown of what went down:

* GameStop Fallout & Crypto's Appeal:
* The recent GameStop incident was a dramatic wake-up call, exposing how big institutions were losing massive amounts of money (up to 10-20% daily) from shorting GameStop, and how companies like Robinhood froze trading to protect these big players.
* This whole situation highlights the inherent flaws in traditional, centralized finance, which is seen as "rigged" and controlled by big banks who can even influence regulations.
* This has led to a huge surge of new people getting interested in crypto, as it offers a space without centralized control or the ability to freeze trades. People are asking basic questions about crypto, which shows the immense new interest.
* The decentralized nature of blockchain means that once code is released on platforms like Uniswap, it's unstoppable. China tried to ban Bitcoin in 2017 but failed, proving crypto’s resilience and how people find alternative ways to access it.

* Market Update & Meme Coins:
* Bitcoin (BTC) and Ethereum (ETH) remained relatively stable over the weekend, though Ethereum almost broke through a significant price barrier.
* Ripple (XRP) saw a huge comeback, surging 17% in 24 hours and 77% over seven days, partly due to its large base of long-time holders from 2017, even though it was historically pumped by mainstream media and then dumped.
* Dogecoin (DOGE) experienced an enormous rally, proving the power of "memeability" and how simplifying a message can really appeal to the masses. The lesson here is that marketing and public appeal are incredibly important in this space, even for projects that seem less serious.
* However, after such huge rallies, the risk of a sharp decline becomes exponentially higher, so jumping in immediately isn't always smart.

* Exchange Liquidity & Trading Insights:
* If you're trying to unload a significant amount of Dogecoin or other altcoins (like $10,000), exchanges like Kraken or Coinbase might face congestion or have low liquidity.
* The recommended exchanges for high liquidity, especially for altcoins, are Binance and FTX. It’s always good practice to check a coin's 24-hour trading volume to ensure there's enough liquidity before you trade.
* There were noticeable price gaps over the weekend, for instance, between Dogecoin's Perpetual Future price and its spot price on FTX, with futures trading much lower.
* FTX also listed GameStop (GME) Spot and Futures, allowing trading outside US market hours. Interestingly, the futures price was significantly lower (around $209) than the spot price (around $270), offering a way to short GameStop at a lower entry. FTX is powerful but complex to use.

* WallStreetBets & Smart Plays:
* While the initial GameStop play by WallStreetBets was a "smart, high-IQ play" that capitalized on big funds being incredibly over-shorted (300-400% of circulating supply), subsequent attempts to "plow money into the next one" are far riskier.
* It's crucial to be careful and make "SAFU" (safe) plays, as not every opportunity will be as perfect.
* The decentralized finance (DeFi) space is expected to truly "blow the minds" of the WallStreetBets crowd once they understand its full potential.

* Decentralized Finance (DeFi) & NFTs:
* Uniswap (UNI), a decentralized exchange, hit an all-time high, now holding over $3.45 billion in locked liquidity. This means you can trade large amounts of tokens (e.g., $100,000 worth of Ethereum) with minimal price impact (less than 0.7%).
* Despite its growth, DeFi is still "very foreign" to new users, and explaining it effectively to those who don't understand Ethereum or decentralization is a major challenge for 2021.
* Visa is reaffirming its commitment to crypto payments and fiat on-ramps, indicating more mainstream integration is coming.
* Non-Fungible Tokens (NFTs) are gaining traction, with the Fortnite founder acknowledging their potential but calling them a "speculative mess." NFTs represent unique, non-replaceable digital items like art or game items.
* The art world, traditionally, has seen "value engineering" where rich individuals bid on their own art to inflate its value, then donate it for tax deductions. A similar speculative "wash trading" might be happening in the NFT space.

* Community Growth & Project Updates:
* The Bitcoin subreddit reaching 2 million subscribers is a sign of massive growth, but it's uncertain if this is a market top or just the beginning of broader understanding.
* TrustSwap is developing a "smart launch" platform to bring safety to the altcoin space by preventing "rug pulls" (where developers suddenly dump tokens on investors). It allows projects to lock liquidity and founders' tokens on the blockchain, providing a "safety guarantee."
* DuckDAO partnered with Stakenet, which is working on Layer-2 scaling solutions for Ethereum. This is a crucial development because current Ethereum transaction fees (around $15 per trade on Uniswap) are too high for mass adoption. Layer-2 solutions aim to provide much faster and cheaper transactions, becoming the "next major battlefield" for crypto.
* Labs, a project the presenter advises, is working on bringing property and securities trading onto the blockchain, aiming for regulatory approval and hoping to bridge the efficiency of crypto markets with traditional assets.

* The Dark Side: Pump & Dumps & Risk Management:
* A significant warning was issued about "pump and dump" scams, often orchestrated on Discord channels. Organizers buy large amounts of a coin, hype it up to attract new investors, and then "dump" their holdings for profit, leaving newbies with worthless assets. These can happen in seconds.
* It’s crucial to understand that trading is not a fair game; it's rigged towards experienced players. You should always assume you're up against incredibly smart operators like Sam Bankman-Fried (FTX founder), who make "2000 IQ plays" to profit from market inefficiencies.
* The mentality should be: "Can I beat this guy today?" This mindset helped the presenter survive the 2018-2019 crypto bear market.
* It's easy to make 10x gains in crypto, but also easy to lose almost everything (0.1x). A diversified portfolio is key. The presenter holds 60% in Bitcoin, Ethereum, and VeChain, and 30% in other altcoins.
* Many altcoins from 2017 (like Ripple and Litecoin) have not fully recovered to their peak prices, with Ripple still down 84% from its January 2018 high, highlighting the risk of holding coins that might never fully rebound. The market can stay irrational longer than you can stay liquid.
* Be wary of celebrity coins (like AKOIN or Soulja Coin); many celebrities lack liquid capital and are often just looking for easy money from crypto’s easy fundraising potential.

* Upcoming Market Influences & Outlook:
* The upcoming Chinese New Year (in about a week and a half) is a traditional "sell signal" in crypto, as Chinese investors often cash out for holidays and gifting. The US tax season at the end of February also poses a potential selling pressure due to capital gains taxes.
* If the market doesn't see a significant dip during February, the end of these looming clouds could lead to an "amazing year" and a major "explosion" in prices.
* Yield farming (like with Bow, Pancake, Wing, and SwissBorg) is still a strong opportunity, especially on Binance Smart Chain (BSC), offering ways to earn new coins.
* Ultimately, crypto teaches you to "read between the lines," question everything, and treat information with a critical eye, almost like playing Among Us where everyone could be an imposter.

The crypto space is full of opportunities but also significant risks. Staying informed, managing your risk, and understanding the underlying dynamics are crucial for navigating it successfully.

Transcript

to go live on YouTube, but welcome to the Facebook people. I think those are already online and let's click the button. We are ready to go live, guys. So, well, welcome back to another episode of Box Mining. We are on the 5th of February right now here in Hong Kong. It's 11 a.m. bright and early in the morning, but I know a lot of you guys probably are having different time zones. So anyways, guys, welcome back to another Box Mining episode. It's been a lot happening this weekend, especially th...