[Daily] Crypto removed from the ban list

Good morning! Welcome to The Daily Moon. It has been a year since Russia invaded Ukraine, and as the world mourns the loss of life and property, the crypto community has stepped up. So far, $70 million in crypto has been donated to Ukraine, while some estimates even peg pro-Ukraine crypto funding at $200 million. Let’s keep it going. 

As of Monday, 8PM IST

The markets recovered. Bitcoin rallied on the back of positive US jobs data. Ethereum continued the bull run as its Goerli ether tokens saw a spike in demand. S&P 500 and Nasdaq went up in early trade on a spike in investor buying. Back home, Sensex and Nifty ended lower on losses in steel and IT stocks. 

Will They HODL BTC?

A lot depends on the short holders. Will they buy and HODL Bitcoin? If they become HODLers, the crypto has a chance to break into another bull rally. 

But why them?We told you how whales decided to book profits on their Bitcoins. When the big boys sell, BTC falls. 🤷 The token is currently at an oversold phase, according to technical indicators. This means that there are more sellers than HOLDers. Here’s how short-term holders can help: 

1. Short-holders, meaning investors who hold tokens for under 155 days, often make quick sales. This leads to price flips. If they HODL, prices may stabilise. 

2. If short holders accumulate for longer, the token availability in the market goes down. Scarcity leads to a rally. 

Another technical metric shows that short-duration holders are sitting on profits. That’s a volatile sign because it raises fears of sudden sales to book profits. 

Buying, selling, it’s part of the gameYes but currently, crypto seems to be emerging from winter and rising inflation numbers are bound to bother consumers globally. In the US, for instance, personal expenses were up 5.4% in January, a slight increase over December. If prices stay high, short-holders may get tempted to sell their BTC. A few seem to have been swayed recently and a sell-off was reported on Saturday. 

All’s not lostWhile short-HODLers can move the market, a lot has happened behind the scenes. Bitcoin’s mining difficulty rose by ~10% and more miners have plugged into the network. If this brisk activity continues, Bitcoin will enter a bullish phase sooner than expected. 

Over 5000 web3 🧠 start their day this way

Meet Kim.

She's a software engineer at a BIG crypto company.

She doesn't want to scroll through all the crypto news of the time. Why?

• there's no time

• there's too much noise, but most importantly

• everything is so boring

🥱

So she reads the doodhwala daily 🥛

Doodhwala daily is a free crypto newsletter that covers the top news and analysis everyday in a FUN way. It's read by web3 founders, developers, venture capitalists, and even that weird guy who keeps DMing you for crypto advice.

Just ignore him and check out the doodhwala 👇🏻

Lido Has A Limit

With an ETH staking rush on Lido, the DeFi has activated a safety feature. It’s called Staking Rate Limit and may limit staked Ether mints as well as fix daily limits for fresh deposits.

But why?The staked Ether on Lido Finance has topped 150,000. To avoid sudden exits that will affect the DeFi liquidity, Lido has put a set of measures in place. These include:

• Hard caps on deposits and withdrawals.

• Longer wait-time for capacity to replenish.

• Reduction in staking rewards.

The idea is to avoid unmanageable sell offs that impact the financial strength of the DeFi network. 

ICYMI The unexpected inflow happened after Tron’s Justin Sun staked 150,000 ETH worth over $240 million on Lido. 

What now?There isn’t much to worry about. Lido has said that users can either wait for a few days or make smaller mints to avoid glitches. Customers, however, weren’t happy about these restrictions. 

IMF Won’t Ban Crypto. For Now

Well, that’s what the top boss says. The International Monetary Fund plans more regulations for private cryptocurrencies but if things go south, an outright ban won’t be completely off the table.

Who said what?Well the IMF managing director Kristalina Georgieva spoke to Bloomberg. The first objective, she says, is to differentiate between state-backed cryptocurrencies and publicly issued stablecoins and cryptos. Fair enough. 

The IMF and two other bodies are working on guidelines for a regulatory framework. It is expected to be released in the second half of the year.

Meanwhile in the USWhile the IMF is, for its part, trying to do its best to understand this new technology,.The US SEC has declared that all crypto except Bitcoin should be considered a security. Mind you, these are statements, not rules or laws or directions.

Largest NFT Dump?

Was it market manipulation? Was it a way to generate profit from a new token? Many questions, few clear answers. Machi Big Brother, a known NFT whale, dumped 11,680 Ether worth ~$18.6 million over 48 hours. But here’s the twist: he bought back 991 NFTs of the 1,010 tokens he dumped. It’s already being called the largest NFT dump ever.

What did he dump?

• 90 Bored Ape Yacht Club (BAYC) NFTs 

• 191 Mutant Ape Yacht Club (MAYC) NFTs 

• 308 Otherdeed NFTs 

Why?!

Best guess: booking profitsMachi Big Brother received one of the biggest receivers of new NFT marketplace Blur. 

So the best theory to explain the dump: he just wanted to make some money.

Sigh. The less said, the better. 

And that’s it for today. If this email was forwarded to you, please consider subscribing. It’s free. We’ll never show you an ad or charge you for this. We swear.

Also, to sweeten the deal, here's an offer you cannot refuse! You can refer this newsletter to your friends, family and any amazing community. The top referrer every month wins a guidebook to upcoming potential airdrops and exclusive premier content! Click below to share your unique referral link!

Who are we? This newsletter’s ambition is to educate (and to entertain). The world of money is changing everyday and we want to help you decode what’s happening in the world of crypto, public markets in the US and India.