Crypto Sponsorship for the AFL - and now NFTs

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May 2, 2007
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My friend's dad purchased he and his brother $1000 worth of Telstra 2 shares in around 1999.

He found about the shares recently in his deceased father's stuff.

He sold them and got back $400.
Or he could have bought CSL shares for $5 that is now trading at $270 along with receiving a small diivvy twice a year.
 
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Need to make the chart logarithmic if you're looking at longer time frames...
Need to? Not really. Got a site that provides that option? I don't look this stuff up much.

Again, I'm not arguing that people are or are not making money. That some people who bought in early got lucky and made big money. There's the dude still digging through the rubbish tip looking for his hard drive with 400 mil worth of Bitcoin (or maybe now $200mil).

I'm looking at people who know what they're talking about - and a few people taking the mick - and most of them are pretty skeptical that it's anything but a quirky technology being used to drive Ponzi schemes.

I'm sick at the moment so I'm sitting on the couch watching a lot of the Toobs.


NFT video: Senior Opensea employee caught insider trading works set to appear in the front page of the site, using a bunch of wallets but forgetting it's a completely open database.

 
Nov 13, 2001
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So: Play to Earn.

Another way for rich people to entice poor people to work for them. The rich people buy NFTs and lease them to poor people on unfavourable terms.

What other play to earn models are there? I'm interested in finding out because it seems like a scam.



If it's a fun game, everyone is going to play it, so you're not earning much.

If it's not fun, you're going to earn a fair bit due to rarity, but there will be no-one to buy the rewards off you.

Axie sounds like a funny story - play to earn system that lost $600 million or something to people who hacked them and changed the smart contract code, siphoning all the crypto from their wallet.

"Runescape Gold is a more stable virtual currency than some actual cryptocurrencies."

If more people start playing then there will be more demand from people wanting to jump in, thereby increasing the value of the native token and allowing players to earn more money.

Players play for themselves. For many of these players, if they weren't playing they wouldn't have a source of income.
 
Nov 13, 2001
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Never, ever underestimate the greater fool until the music finally stops.

Screen Shot 2022-05-11 at 11.13.25 am.png
 

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May 12, 2022
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Or he could have bought CSL shares for $5 that is now trading at $270 along with receiving a small diivvy twice a year.
Doesn’t everyone have a mates dad that could have brought XYZ shares back in the 90s & made xxxxxxx returns
 

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Draftee
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Lesson to all investors: Don’t use leverage!

If these “young investors” hadn’t used leverage, they wouldn’t have lost everything


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Or have a plan being it like wait for the coin to bottom out then buy the dip

Not at the top of the market. Well not unless you want to short the stock
 
Jan 19, 2008
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Or have a plan being it like wait for the coin to bottom out then buy the dip

Not at the top of the market. Well not unless you want to short the stock

This is a great plan, wait for the price to fall and then buy. You could be onto something here.

The only flaw is you need to be able to see the future to know when the price has bottomed out.
 
May 2, 2007
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4 messages cryptos are sending to equities​




James Gerrish
Market Matters



As bond yields have surged in 2022 “risk off” has been one of the clearest trends over recent months, the previously high flying US tech names are already in a bear market with the NASDSQ down 29% in just 6-months. The markets had the kitchen sink thrown at it from a macro perspective and its finally succumbed to these negative influences as the Fed has gone from a supporting factor to a major headwind i.e. Quantitative Easing (QE) is being replaced with Quantitative Tightening (QT).
  • Investors aren’t confident central banks can engineer a soft landing as they hike rates while trying to avoid a recession i.e. an extremely tough balancing act.
Over the last year MM has described Bitcoin as an excellent leading indicator for both liquidity and by definition equities and the trouble is the Feds turning the liquidity tap off which is hammering this new speculative asset class – sometimes it’s hard to describe some of these cryptos which look more like a blackjack table than an investment vehicle:
  • There are around 180 different currencies traded around the world, its not just $US, $A, Pounds and Yen in FX land.
  • However, there around 18,000 cryptocurrencies in existence being traded/punted by a huge number of people who in many cases have no idea what blockchain even is!
The most widely quoted crypto is Bitcoin and it’s down almost 60% from its late 2021 high, basically double the NASDAQ losses. This month alone has seen a 30% plunge again mirroring moves in very high beta, or “risky”, stocks. One thing which has been confirmed to all but the staunchest believers is cryptos have no value as a safe haven.
Millennials are the most likely traders of cryptocurrencies, these punters who were born between 1981 and 1996 have also been opening vast numbers of share trading accounts post-COVID, unfortunately, they are now learning that making money isn’t particularly easy – it reminds me of punters before the tech wreck in 2000.
The path of least resistance is clearly down for the likes of Bitcoin and we can easily see it halving again through the 2nd half of 2022 which is a sobering thought for risk in general. At MM while we are not Crypto traders, we will be watching it very carefully as a measure of market liquidity, something that’s obviously required for equities to advance or recover some of their losses.
Message 1 : Bitcoin is a leading indicator for that important investment ingredient liquidity and for now it’s missing from the menu.
Bitcoin

Bitcoin​

Coinbase Global (COIN:US)
Some of the stories of paper wealth destruction across the crypto space are already astounding e.g. Coinbase Global founder Brian Armstrong has seen his fortune plunge from $13.7bn to $2.3bn. This illustrates that it’s not just the digital currencies themselves that are falling with the largest cryptocurrency exchange Coinbase Global (COIN US) plunging ~85% in just a few months. The maths is simple – the more people who lose money punting cryptos the lower volumes are likely to fall. Plenty of comments are already surfacing on Twitter questioning solvency across the industry, only a few months ago these same keyboard warriors were calling Bitcoin to ++$US100,000.
Even famous investors (The Social Network movie) Tyler and Cameron Winklevoss co-founders of rival crypto exchange Gemini have lost over $US2bn this year, or 40% of their wealth. These moves are delivering another clear message to MM:
Message 2: Easy money whether tulip bulbs or cryptocurrencies have a habit of vanishing as fast as they arrive – this thought should not be forgotten when evaluating new growth stocks in particular.
Coinbase

Coinbase​

Huobi Technology (1611:HK)
Following on from the mainstay declines in Bitcoin and the crypto exchanges this week has seen the collapse of Tethers TerraUSD stablecoin which triggered a huge sell-off in digital-asset markets most popular tokens e.g. DeFi favourite Avalanche plunged 34% and Solana 30%. I can imagine a number of subscribers are asking what are stablecoins:
Stablecoins are digital assets which are designed to retain their value. Tether for example sells their tokens / coins for $1 which it then guarantees to buy back for $1 if customers want to redeem. Theoretically, they do this by pegging the coin to the $US and crypto assets using hedging algorithms.
The trouble is hedging can only go so far when consumer confidence stampedes in one direction and in the case of TerraUSD (UST) the result has been frightening this month with prices plunging to 45c, I would hate to be a forced buyer of something for $1 that was trading at 45c! There are currently dozens of stablecoins whose market value was over $185bn late last year. They exist simply as a bridge between crypto land and traditional finance, they should be a streamlined and efficient way of using bitcoin etc through different exchanges but so far this is an unregulated marketplace and problems like this weeks are likely to expedite changes on this front.
The short term issues with giant Tether who reportedly have $US69bn in assets is around whether they keep their promise to maintain the 1:1 exchange rate, something which is really hard to comprehend in a free market world especially as the company is backed by large short-term loans out of China!
Message 3: only invest in assets/stocks that you fully comprehend.
Asian listed Huobi (1611 HK) has its own stablecoin which has certainly not helped performance over the last year.
Huobi Technology

Huobi Technology​

The first half of 2022 looks set to deliver a huge relative performance victory for defensive style investments – definitely not crypto currencies! While there will be twists in the road we believe this trend will be maintained into 2023 hence any strong bounce in high growth / valuation stocks should be considered as selling opportunities.
Message 4: Keep it simple in the current volatile environment, quality businesses are the way to invest i.e. portfolios should almost have a boring bias.

The Bottom Line​

MM likes our 4 messages from today’s brief look at the volatile but interesting crypto space:
Message 1: Bitcoin is a leading indicator for that important investment ingredient liquidity and for now it’s missing from the menu.
Message 2: Easy money whether tulip bulbs or cryptocurrencies has a habit of vanishing as fast as it arrived – this should not be forgotten when evaluating new growth stocks in particular.
Message 3: only invest in assets/stocks that you fully comprehend.
Message 4: Keep it simple in the current volatile environment, quality businesses are the way to invest i.e. portfolios should almost have a boring bias.
4 messages cryptos are sending to equities
 
Spare me. It's ludicrous that a) NFT s**t gets mentioned in the first place and b) that it is arguably the most prominent info in the article.



"Since then, moving forward we've been in a few projects, done a bit of trading here and there. It's been a bit of fun. It could have been more successful if we got out at the right times. But overall, we haven’t lost anything, we're just having a bit of fun with it."

"we haven't lost anything" :straining:
 

Evolved1

Cancelled
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If you are a good trader and you can make a few bucks speculating on cyrpto then all the power to you but anyone that has large % of their capital parked there that they can't really afford to lose is a complete idiot imo. A lot of people will get burned one day and just like usual it will mostly be the smaller holders left carryig the bag.
Warren Buffett warned investors again not to invest in bitcoin. (May 2018)

Boomers have been saying the same thing about bitcoin since its inception. Meh.
 
Players play for themselves. For many of these players, if they weren't playing they wouldn't have a source of income.
I believe with the Axie game there is a lot of action in the system where people rent NFTs to play to earn a cut. A poor guy in the Phillipines can't afford the hundreds of dollars up front for the NFTs to play. They don't own anything and they get the chuck if they don't generate enough income.

And, from all reports, it's an ordinary game. Nobody is playing it for fun.

This is just what I've seen from a few people who know more than I do.

Rare thing, I know!
 
Jul 13, 2015
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Yeah what a huge bust it’s been

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I dont think anyone is doubting that if you got in early and held long enough and sold at the right time that you have made a huge amount of money. Positively insane amount of money for some people.

But for the life of this thread its been all gloom and no boom.

And the company sponsoring the AFL has been absolutely smashed because people are now realising what they are selling is a giant scam.

Locking people in and then taking away all the benefits they were promised. That is just theft. Pure and simple.
 

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