How the Trillion dollar gaming industry will merge into Web3, and when will Bitcoin break through $30,000?
High Volatility on Bitcoin is liquidating leverage traders, but the bull-run continues upward.
Let's talk about the GameFi industry for a moment and how the gaming industry is worth trillions of dollars and is now transitioning into Web3, and then we’ll get to more multichain coin swaps and whether Bitcoin will break $30,000 in the near term future, and if altcoins will start to explode or not.
The gaming industry is being revolutionized and upgraded thanks to the integration of NFTs and tokenization of in-game assets and currency. Currently, gamers spend countless hours in-game but are unable to extract the value they accumulate outside of the game, whether it be into their next game or back into real life.
NFT’s and GameFi has the potential to do this. However, the gaming industry is hesitant about implementing Web3 functionality into AAA games that already have millions of users. Game studios are concerned about potentially harming their existing revenue streams from subscriptions and in-game purchases. Therefore, they need to find a way to introduce this technology without risking their user base or revenue.
Recently, I spoke with Moxy CEO Matt deFouw about how their tech can easily add NFT and crypto functionality into Web2 games. This way, major AAA gaming studios don't have to take a risk on their already large user base. Matt and his team at Moxy have managed to bear the risk instead of the gaming companies while providing value to the game players.
With their technology, most games can become eSport game modes where players can compete and earn NFTs or crypto in a skill-based, non-gambling manner. Their Beta is already running, and they are currently offering rewards for those who participate in the Moxy Beta Challenge Season 2. It's definitely worth checking out.
If you're interested in learning more about how these multi-billion-dollar gaming empires can move into NFTs and Web3, have a listen to my conversation with Matt below.
And if you like this part about gaming, you will definitely want to watch the video we did with SHRAPNEL, the most highly anticipated Web3 game, which still hasn’t launched. It could revolutionize GameFi for years to come. Through my discussions with Venture Capitalists, they agree that this is the game they are waiting for (and they are invested in). See my latest interview with them here:
Moving over to non-custodial trading, DEX, and multichain swaps, there is need to focus on this as more people become weary of centralized exchanges and giving their keys to third parties to trade.
Ferrum Network is a multichain network that is pioneering the ability to move assets across blockchains, such as Ethereum to Binance Smart Chain or Ethereum to Solana, without requiring the use of a centralized exchange or sacrificing custody of your assets. As the network approaches its mainnet launch in the coming months, there have been numerous updates and developments that users should be aware of.
Currently in the testnet phase, Ferrum Network has just launched the Proof of Concept testnet nodes that everyday people can run to help support the network in the lead-up to the mainnet launch. By running a testnet node for Ferrum, there is a chance that users may be eligible for an airdrop of $FRM tokens as a reward for supporting the chain. For more information on how running a node works, you can refer to Ferrum's guide.
If you're interested in learning more about Ferrum Network's mainnet and the ability to swap tokens across multiple chains in a decentralized, non-custodial way, you can check out an interview with Nick Odio of Ferrum Network below.
Market Analysis:
In last week's letter, Bitcoin was ranging between $30,000-$29,000, and it was expected to chop sideways, hopefully leaving room for altcoins to rise in the meantime.
However, what happened was that Bitcoin broke down to $27,000 and held support there while the fear of $25,000 price action accumulated, although BTC has held support so far.
Then, out of the blue, Bitcoin pumped 10%, and proceeded to dump back down within 24 hours. This is typical price action in a bull market, meant to liquidate traders who are using leverage.
People who are holding long term are break-even with the price from two weeks ago, yet those who were leveraging lost all of their funds. A simple reminder that leveraging is a bad idea and unless you are a full-time professional trader, it's not recommended.
While many are saying that $25,000 is still a magnet, my good friend Crypto Birb, who normally only trades spot Bitcoin on the longer term, has purchased more Bitcoin following a buy signal on the 12H chart. There are no targets on these trades as they are trend continuation trades. When he confirms the trend is up, he buys and holds until the trend changes back down.
I think despite the volatility in both directions (meant to liquidate the leverage traders), Bitcoin will spike back up in the next week or two and continue above $30,000.
Altcoins:
Some altcoins held their ground well during this last Bitcoin Dip, but most have not been positioned to rise in the near future. Some of the outliers I saw were BNB, ZIL, WOO, INJ, and RNDR, which didn’t dip much on this Bitcoin dip or have recovered quickly.
Since last week, there has also been a memecoin craze, with the $PEPE coin coming out of nowhere and pumping over 1000x returns for early buyers. I highly recommend staying away from these coins unless you consider yourself a full-time gambler.
While new traders see posts about the incredible gains that could be made, they usually end up buying the top, and in the end, lose money. There’s also a chance these coins rug pull/exit scam as they are based on nothing. No development, no platform, just a picture of a frog. The smart contracts underlying the token could also have the ability to be changed to print more, inflate the currency, or include other methods of making the coin go to zero overnight.
With the rise of PEPE, now has a dozen other memecoins trending, also based on nothing. If you buy these, it’s more than likely you will lose all your money.
If you want to see the madness that is PEPE coin, take a look at their Twitter.
Long-term investors will win by investing in projects that have large network effects and long-term potential, like layer 1 networks. The next Microsoft, i.e. Ethereum, or the next Dollar, i.e. Bitcoin. And it’s OK to make other mid-term investments in narratives you’ve studied and think will do well, like some of the current narratives of Web3 Gaming, DeFi, service-level NFT applications, AI, Liquid Staking, Blockchain as a Service, Zero Knowledge technology, and more. At least these sub-industries have something going for them more than a picture of a frog.
Other Crypto News:
Coinbase sueing the SEC to provide more clarity and guidance on digital assets. What is a security and what is not?
Binance pulls out of $1 Billion bankrupt Voyager deal
US House passes bill to increase the debt limit by $1.5 trillion
First Republic Bank which was supposed to be bailed out by the government, dropped another 40% today. It’s now down 93% YTD.
Chinese Yuan overtakes US dollar as most-used currency in China's cross-border transactions for the first time in history.
Billionaire Hedge Fund manager Stanley Druckenmiller has shorted the US Dollar
US Senator Ted Cruz says he is incredibly bullish on Bitcoin and he “bought the dip."
UK blocks Microsoft's $69 billion deal to acquire Activision
That’s all I have for this week. Stay tuned for more in next weeks episode!
Ashton Addison
CEO, Crypto Coin Show
Great work as always!