Gary Gensler & SEC Twitter Drama

How a fake tweet from the SEC caused 100s millions in losses for investors

Author

will stauner
January 11, 2024

The Phenom Weekly Update

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Hey Phenoms,

This weeks had more drama than your grandmothers favorite soap opera. Gary Gensler and the SEC spiked then tanked the market w/ a tweet about ETF approval and a retraction. If their twitter was actually hacked, then their security incompetence is laughably ironic. If it was intentional than it is far more nefarious market manipulation. Either way, the SEC’s actions led to hundreds of millions in needless liquidation losses for investors. The very people the SEC is tasked with protecting. Bravo, Gary, Bravo. 🙄

Solid idea GARY

Despite the SEC’s shenanigans on Tuesday, they officially approved 11 Bitcoin ETF’s on Wednesday 1/10/24. Yesterday was a historic day for the industry that marks the beginning of widespread and institutional adoption of crypto as an asset class. Congrats to everyone here for front running the world! 2024 should be a truly exciting year for digital assets and we are stoked to have you along for the ride!

Here’s what we have for you this week:

  • Delphi Digital’s Case for Waning ETH Dominance 🧵

  • Fox partners with Polygon to launch Verify, a new identity protocol 🙈

  • Airdrop Alpha: OpenDollar on Arbitrum ✈️

  • A look at investing strategies beyond BTC and ETH 🔬

WAGMI,

Will

PS: For those of you that have been subscribed for awhile, you should be seeing periodic emails directly from Eric as well this weekly update. If you haven’t, be sure to check your spam folder for emails from Phenom Crypto. 

Market Pulse™️

Keep your finger on the pulse

Investing Beyond BTC and ETH

In the crypto markets Bitcoin (BTC), Ethereum (ETH), and U.S. dollar-backed stablecoins dominate 75% of the $1.7 trillion market, change is the only constant. The remaining 25% of the crypto market, often overshadowed, is predicted to skyrocket by 100x over the next decade, potentially surpassing the private capital markets.

As blockchain technology redefines asset trading, the distinction between crypto and traditional finance (TradFi) blurs, transforming every asset into a potential crypto asset. This shift necessitates sophisticated tools for investors to navigate thousands of crypto assets, far beyond the familiar territories of BTC and ETH.

Historically, a market cap weighted index of BTC and ETH has been a winning strategy, capturing significant market gains. However, the future of crypto investment looks beyond these blue-chip assets. Many emerging crypto projects, despite increasing market caps, face challenges like supply dilution and insider selling, impacting token prices.

To adapt, investors need new strategies. One approach is a low-fee, auto-rebalancing index that accounts for token supply and market liquidity. Yet, current crypto index products offer limited options, often with high fees or complex methodologies.

For the savvy investor, DIY investment strategies might be the answer. Tools like Kaiko's liquidity list offer insights for creating a personal long/short list, balancing between assets with higher liquidity than market cap and vice versa.

The future of crypto investment is not set in stone. It's a landscape in flux, where adaptability and informed strategy could lead to unprecedented opportunities. For most investors just investing in the top 2 is great but for those of us looking for outsized returns we must continually be looking for strategies that provide alpha and as the market matures liquid indexes could be a simple, safe option.

AirDrop Alpha™️

Arbitrum, a ETH Layer 2 scaling solution, has experienced significant expansion, with a total value locked (TVL) of over $2.5 billion.

A novel stablecoin protocol on Arbitrum, named Open Dollar, is currently conducting an airdrop. Most Arbitrum users who have interacted with Arb DeFi are likely to be eligible.

Open Dollar is designed to utilize LST as collateral for borrowing OD stablecoins at low interest rates. This allows users to reinvest in DeFi, maintaining 100% of the staking yield. This protocol shares many features with Ethereum's Liquity.

To find out if you're eligible for the airdrop, visit @open_dollar on Twitter for detailed information. The token and protocol are set to launch in February.

Check out their recent thread below:

BlockBuzz™️

Quick Hitters from the week

The Twitterverse

A collection of the most interesting stuff on Crypto Twitter this week

Us either Alex 🤣

Pay your taxes folks

Delphi’s making a case to fade $ETH

WAGMI

For the Crypto Culture

Also me holding on during the Bear Market

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.

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