December 7, 2021
Dead-Cat Bounce or V-Shaped Recovery?
Introduction
With both the stock and crypto markets massively oversold after last week’s liquidation event, the strong bounce we’re seeing now is the unsurprising consequence – the question is, what’s next. Follow-through on this bounce in the days and weeks to come will determine if we are only experiencing a “dead-cat bounce” or the return to full-on bull mode.
While it’s likely smart to take some profits on positions you bought during the flash-crash (if you managed to), the last days’ price action is a good reminder that buying at maximum fear levels gets rewarded more often than not. While easier said than done, “buying low and selling high” and staying true to your investment strategy and risk management will guide you through even the wildest storms.
Whales Bought the Dip
We already pointed out yesterday but have gotten more data today that while leverage traders and “weak-hands” were shaken out during last Saturday’s massive dump…
… long-term holders and whales slurped up the dip. Despite technical structures and the macro picture still looking somewhat shaky, this exchange and on-chain data instill confidence in the intactness of this crypto bull market from an intrinsic perspective.
Will the Cardano Ecosystem Rise From the Ashes?
We haven’t talked about Cardano for quite a while – and for a good reason. After the massively anticipated “smart contract launch” this summer, it quickly became clear that the Cardano ecosystem was not ready for prime time…
Apart from the hot NFT activity on Cardano supported by one of the most faithful communities in the crypto space, there has just not been much to write home about. Hence, we have seen ADA underperform massively in the last six months, especially when compared to hot L1s like Solana and Avalanche, which gained significant traction.
Is there still hope for Cardano to turn around? The answer is yes. While the ADA chart certainly looks rather unpleasant and suggests that with broader market weakness, ADA could easily slump down to $1 and below, there is hope for Cardano believers.
FINALLY, the first DApps on Cardano are rolling out – at least on testnet. SundaeSwap, one of the most anticipated Cardano DEXes (aka, the “Uniswap on Cardano”), had its initial launch yesterday. While there are still bugs to be ironed out, it looks like in the comings months, we could, at last, get to see and experience working smart contracts and DApps on Cardano.
And we're live! 🎉 Thank you everyone for staying patient with us :) Visit testnet.sundaeswap.finance and play around with #SundaeSwap on the #Cardano testnet!🍨 If you encounter bugs, issues, or just have recommendations, please fill out this form: forms.gle/h8HjkCmVnhc6dQ…! Enjoy!
In addition, we see progress being made with the “ERC-20 Converter”, a tool that will enable seamless bridging of ERC-20 tokens from Ethereum to Cardano.
As with every hot trend, it’s always better to position BEFORE it starts heating up and everyone becomes aware of it. Thus, now might be the right time to pay attention to the Cardano ecosystem: Check out which projects might have potential (e.g., have strong backers, team, community, and narrative) and might be close to launching a product soon.
Hint: Most of the hotly anticipated DEXes on Cardano (e.g., SundaeSwap and OccamX) don’t have their native token out yet. However, there are ways to earn these through staking, liquidity providing, or a process called ISO (Initial Stake Pool Offering). You can find out more here for SundaeSwap and here OccamX.
To round it off, here is a little strategy tip: Instead of taking on additional risk and jumping into ADA on today’s strong market bounce, try to make a watchlist of coins you want to pick up on another potential discount day. Because chart-wise, we’re not in rocket mode yet, and you don’t want to be the one to panic-sell on the next possible dip…
The Current Web 2 Landscape Is Broken
As a crypto enthusiast, you probably don’t need many arguments to be convinced that many legacy systems and corporations will be disrupted by the “Web 3 wave”. In case you do, here are a few illustrations:
YC's original rejection email for Metamask. nice piece of crypto archeology from: readthegeneralist.com/briefing/metam… crazy how YC whiffed on Ethereum so hard. tactical miscalculation of how passionate and widespread dissatisfaction with the direction of web2 was at the time.
In case you need a reminder of what the vision of the Web 3 movement is:
Oliver you are awesome as usual, thanks for your time!
Thank you Oliver!!