With the crypto market down -3.5% this morning, I regret starting yesterday's newsletter with "the crypto markets continue to look strong." In hindsight, there were multiple signs that we were probably nearing a local top. The first being Shapella doomers flipping bear to bull on Sunday, as noted in Monday's newsletter. The second being multiple meme coins launching and gaining momentum with speculators going further out on the risk curve in this up only market since the start of the new year.
But not all meme coins are created equal. Mind you, DOGE is still worth $12.6B. Is there such a thing as a "blue chip" meme coin? Well, the market seems to think so. PEPE, a meme coin created just five days ago, is up over 3,000,000% with a market cap of $130M. Yes… you read that right. Some early buyers have turned $250 into $1M+ and are still holding! Absolute mad lads.
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Without trying to rationalize PEPE's price action too much, in terms of memes I believe PEPE is much better than DOGE. In conversations with my colleagues and all over my Twitter feed, the pepe meme is used 100x more often than DOGE. While I won't be buying any PEPE and will continue to cope if it trends higher, it would be peak meme if the top occurs tomorrow on 4/20. In other news, UK CPI came in HOT this morning at 10.1%. The report came out around 2:30 AM EST, 1.5 hours before the crypto markets nuked, and I believe is the most attributable reason for why we are witnessing this move lower. Inflation is still sticky around the globe, and central bank monetary policy will continue to remain tight until we see demand destruction. What other newsletter goes from talking about pepes to inflation? None. Remember, there is no second best crypto newsletter. - EffortCapital |
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By this point, I'm sure you are sick of seeing PEPE, WOJAK, and CHAD across your timeline. You are wondering why you didn't chuck a couple hundred bucks at one of these meme coins to ride into an early retirement. Rather than buying these tokens, some searchers have been sandwiching all these trades. I'm not just talking about a normal ham & cheese sandwich, more like an A5 wagyu combined with iberico pork, prosciutto, and caviar sandwich with a $10,000 bottle of wine. Yesterday, MEV searchers did $90M in volume on arbitraging and sandwiching PEPE. Searchers were constantly making over $1K profit in each sandwich on large trades, completely wrecking users in the process. As apes jumped on the hype train and increased their slippage tolerance, searchers happily came in to help realize that maximum slippage and give users the worst execution price that they agreed to be possible, while enjoying the front-running and back-running profits for themselves. For an indication of how absolutely ridiculous the situation was, a searcher with the ENS address jaredfromsubway.eth made 12,000 transactions in a 24 hour span, and took up 7% of all Ethereum blockspace. To date, he has a trading volume of $722M for WETH, $192M for PEPE and $95M for WOJAK. His most profitable sandwich made him a cool $31K. In total, jaredfromsubway made about $1M yesterday. Not bad for a day's work. |
The MadLads NFT collection mint is slated to take place tonight if you are on the Madlist, and tomorrow night if you are not. If you like the peaky blinders vibe, these are definitely for you, and could be one of the hottest NFT mints of 2023. MadLads are xNFTs, meaning that the NFT itself contains executable tokenized code representing ownership rights over its execution. You can think of a xNFT like an app itself, meaning that you can package and publish your app as an xNFT on a decentralized marketplace. NFTs with executable code, how cool is that. To facilitate this new tech, Backpack is a purpose built wallet to store such xNFTs. Instead of a simple wallet, Backpack acts as an operating system built specifically for xNFTs. Like a wallet, Backpack manages your private keys and connects to apps. But unlike anything else, it is asset and protocol agnostic. Everything in the wallet is an xNFT. |
Despite common misconceptions, blockchains are transparent systems that don't offer privacy by default. A user's transaction history, including their assets and counterparties, can easily be tracked with a simple address. Silent Protocol aims to bring privacy to Ethereum dApps without sacrificing application composability or UX. It brings privacy to Ethereum dApps without disrupting functionality through its EZEE framework. Check out our latest unlocked report that covers the protocol in detail! |
Silent Protocol aims to bring privacy to Ethereum dapps without sacrificing application composability or UX. |
Skip Protocol is building toward a sovereign MEV value chain where a protocol, and its community, decide how a block is constructed and how to distribute MEV across all stakeholders. |
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Intel will stop accepting orders for its bitcoin mining chip, Blockscale, on October 20, ready to be phased out completely next year |
ZkSync has seen the most amount of activity since deploying on Ethereum |
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The insights, views and outlooks presented in the report are not to be taken as financial advice. Blockworks Research analysts are not registered broker/dealers or financial advisors. Blockworks Research analysts may hold assets mentioned in this report, further outlined in the Firm's Financial Disclosures. |
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