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September 9, 2020 | Issue #134

Editor's Note: Before you chomp away at our latest issue, we wanted to send a quick reminder that this is your last chance to register for tonight’s virtual summit (click here to register) where Teeka Tiwari will take a deep dive into the ultra-lucrative pre-IPO market.

The event starts tonight at 8PM EST. Sign up by clicking here – it’s free.

 MUST READS 

SUSHI


Two weeks ago, an anonymous developer known as "Chef Nomi", copied DeFi project, Uniswap (covered below) to create SushiSwap. Ten days after creation, Chef Nomi sold all of his SUSHI for $13M in ETH, blindsiding the community and leaving the project in disarray. (This is likely why ETH fell harder than BTC this past week). In the midst of all the havoc, Chef Nomi then ceded control of the project to the head of FTX.

What is Uniswap?
To understand SUSHI you need to understand Uniswap. Uniswap is a VC-backed decentralized exchange (DEX) that allows anyone to swap ERC20 tokens. It aims to solve decentralized exchanges' liquidity problem by allowing a user to swap tokens without relying on buyers and sellers who create liquidity. A DeFi favorite, UniSwap’s daily trading volume has surpassed that of Coinbase. Learn more about Uniswap here.

What is SUSHI and SushiSwap?
SushiSwap was announced on Aug. 26 as an “evolution of Uniswap”. But it is quite literally an exact copy of Uniswap except for added “community-oriented features” — which primarily is a token. In short, SushiSwap rewards its liquidity providers (LPs) with the token SUSHI.

Uniswap doesn’t have a governance token and currently distributes 0.30% of its collected trading fees to liquidity providers. SushiSwap, by contrast, offers liquidity providers 0.25% of trading fees, converting the remaining 0.05% into SUSHI token rewards.

SushiSwap in a sense is trying to steal Uniswap's customer base and liquidity. The scheme is aptly named “Vampire Mining.”

Was it successful?
In short, yes. SushiSwap gained considerable traction among cryptocurrency traders, peaking at $1.58 billion in total locked value on September 3.

With it's success, SUSHI was swiftly listed on Binance and FTX.

Exit Scam?
On September 5th, rumors started swirling that Chef Nomi cashed out $15M worth of developer funds of personal gain, causing the token to crash 88%. The withdrawal amounted to 20,039 ETH and 2,558,644 SUSHI from the dev fund.

SBF steps in
After being accused of “exit-scamming” by the protocol’s users, Chef Nomi transferred control of the protocol to FTX CEO Sam Bankman-Fried (SBF).

At that point, conspiracy theories that Chef Nomi and SBF were actually the same person reached a high, while others continued to argue that Chef Nomi was actually the CTO of data provider Band Protocol.

What's Next?
It's hard to say for sure what the future of SUSHI will be. But in the meantime, several token holders have threatened legal repercussions through a class action law suit against Chef Nomi.
 

Insights from the (2nd) Most Famous Bitcoin Miner in History, Hal Finney


Hal Finey was one of the first people to discuss Bitcoin in the public. He also had a good understanding of the future of mining and its importance on keeping Bitcoin secure.

Despite ALS taking his life in 2014, his foresight on the future of mining remains relevant today. This article goes into the insights and thoughts he shared on the future of Bitcoin mining.
 

 SPONSORED 

[Final Reminder] Pre-IPO Access Ends Tonight


Forget the frenzy over initial public offerings (IPOs). Because the bigger gains come when you get in BEFORE companies go public… pre-IPO

This year alone, pre-IPO shares have soared as much as:
  • 3,405%
  • 50,400%
  • 130,650%.
It’s extraordinary, and not the norm… but they are happening right now.

Which is why it’s urgent you attend former hedge fund manager Teeka Tiwari’s LIVE event TONIGHT, September 9th at 8:00 pm ET, where he reveals details on his next recommended pre-IPO deal.

Click here before registration closes…

 DEEP DIVE 

🗺️  These 10 Countries Lead the World in Bitcoin Adoption


According to a new report from blockchain research firm Chainalysis, of the ten nations where cryptocurrency use is the highest, only two are developed economies: China and the United States.

Get the full adoption index and rankings here.
 

Two Reports, Same Trajectory


Bitcoin: A Novel Economic Institution:
Written by Yassine Elmandjra from ARK Invest in conjunction with the team from Coin Metrics, this piece is a great deep dive that concisely lays out the advantages of Bitcoin when compared to the incumbent system.

Risking zero to $500,000:
This report, written by Bloomberg Intelligence analyst Mike McGlone, provides readers with an updated glance of Bitcoin's price trajectory. Mike explains why Bitcoin appears as a resting bull market on the back of gold, with limited supply, increasing demand and declining volatility.
 

Bond Report: Ask Yourself, Where is the Money Coming From?


Here's a short version of Elisabeth Préfontaine's (founder of Octonomics) thesis on bonds and market manipulation.

"In plain language, the bond market is sustained artificially. The price does not reflect reality. Market signal has been lost. Fundamentals do not reflect what is going on. Credit spreads are meaningless. The market is manipulated."

🎯 Action to take: Sell some bonds, buy some Bitcoin, and wait it out.
 

August 2020 Crypto Highlights


It may be hard to keep up with all that’s happened as the crypto hype engine spins yet again. But don’t worry, CoinGecko is here to help...

Here are their four key crypto-highlights for the month of August:
  • The market capitalization of the top-30 cryptocurrencies
  • The market dominance of the top-7 cryptocurrencies
  • Decentralized Finance (DeFi) token performance
  • The state of the cryptocurrency exchanges
Get up to speed here.
 

Improving Your Futures Roll: An Overview of the Basis Trade


One of the most popular trades for any commodity futures is the "basis" trade. This is when traders build a strategy around the difference between the spot price and futures contract price of a commodity. This exists in corn, soybean, oil and of course, Bitcoin.

As futures volumes balloon, the Coin Metrics team provides a good framework for better analyzing this corner of the market.
 

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The Biggest Change to Money Since 1971...
 

Recently, a patent filed by Microsoft surfaced that could forever change the way you save, spend, borrow, and invest.

Why has Microsoft invented such a strange chip? And what does it mean for your money?

Put simply, what Microsoft has created will usher in one of the most dangerous reforms in the history of the American financial system.

Click here to learn more.

 REGULATORY FRONT 

Zug Will Accept Bitcoin and Ether for Taxes


One step at a time, tax acceptance may be a sign of governmental acceptance towards cryptocurrency as money.

Switzerland’s canton of Zug, home to hedge funds, crypto firms and commodity traders, will start allowing citizens to pay taxes in Bitcoin and Ether as the acceptance of digital currencies continues to rise.
 

 TWEET OF THE WEEK 

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