Market Matters

Another week has flown by, and here we are, yet again, hand in hand, investors of all types clinging onto hopium in this bear market with adversities being thrown our way. In this article, I’d like to take a slightly different approach after we recap the market developments since we last spoke. 

I will be discussing risk management and lightly touching on crypto portfolio management. Firstly let's have a quick look at the important events from last week till date. Last Friday, the 7th, the Bureau of Labor Statistics released jobs data, including the Average Hourly Earnings, Non-Farm Employment Change, and the Unemployment Rate.

Jobs data is important to keep an eye on because it can signal the likelihood of the next direction policymakers intend to head with more or less aggressive rate hikes. These strong jobs reports weren't received well by the markets, sparking the start of a move down that continued further into this week after a relatively calm and sideways-moving weekend.

When data comes out that does not support the narrative of a FED pivot to a less aggressive stance, another large interest-rate increase of 75bps is already priced in by the markets ahead of time. Investors are always forward-looking regarding future expectations and information, which is why the equities and crypto markets took a tumble after the jobs report.

The Average Hourly Earnings rate came in precisely as projected, but the Unemployment Rate came in lower than expected, and the Non-Farm worker Employment Change came in higher than expected, both of which were the root cause of the recent market volatility. The data suggests that the rate in which US jobs are being created in the economy showed signs of a gradual decline. It’s heading in the right direction but seemingly not fast enough to curb the appetites of hungry investors who anticipate the news being received poorly by policymakers by the time the next interest rate increase comes

This week, we saw the Producer Price Index (PPI), where increases in production costs translate to the consumer’s wallet and increased spending. We also got a look at the FOMC Meeting Minutes, where a detailed record of their last meeting was released, which presented a thorough look into everything economic which influenced their decision on the most recent interest rate hike.

Later in the week, which would be released at the time you’re reading this, the more important data was released, including the Consumer Price Index (CPI) related to inflation, Retail Sales data highlighting the changes in the total value of retail sales, and the University of Michigan Consumer Sentiment report.

As discussed last week, this week was set to have high levels of volatility based on the sheer amount of data and reports being released. Luckily for us as investors, next week should be a calmer week which may provide us with some unusual upwards momentum because there isn't much in the way of data being released. With some downtime between more big news, it will allow us to look into some things that I consider pretty important in investing.

Gainz’s Educational Tips:

Let's talk about crypto portfolios; maybe something so obvious but also commonly overlooked is the actual management of portfolios. First and foremost, everyone investing in crypto should have their own set of rules that they follow and tools they use to establish and improve upon their consistency and performance. 

One thing I tell as many people as I can who are new to crypto is to establish rules for yourself that reflect your risk tolerance and willingness to invest in short-term and longer-term endeavors but with two leading end results being longevity and profit. We want to remain in the space for a long time because usually, good investments take time; not everyone will get rich overnight in the hunt for the next Bitcoin.

There is a saying, don’t put all your eggs in one basket, and that should apply to individual crypto portfolios as well because diversification reduces one’s risk sitting solely in one single coin and allows you to have a spread of various coins with different use cases. A balanced portfolio is adequate, but behind that lies a quality core strategy that encompasses every individual’s game plan differently, which may include an approach with dollar cost averaging (DCA), swing or day trading, or even leverage trading; to name a few.

It’s best practice to dial in your strategies and techniques and then keep a close eye on news or other market factors that may directly impact your trading or investment portfolio.

Wild Web3

The SEC’s Scope Is Now On Yuga Labs

Some crypto services and NFTs have been threading the grey line of possibly being a security with their offerings. It is reported that the U.S. Securities and Exchange Commission (SEC) is looking into Yuga Labs, the creator of Bored Ape Yacht Club, on whether they have violated securities laws with the sale of their digital assets and distribution of APECoin.

Being a leader in the NFT space, the SEC probe will set a precedence that will cascade to the rest of the NFT landscape, especially if it bears a negative outcome. “As a leader in the space, Yuga is committed to fully cooperating with any inquiries along the way,” Yuga said in a statement.

Speculation aside, as web3 matures, regulators are stepping in to set the boundaries of the playing field, and it would be wise to keep abreast of the developments that could redefine the space.

CNN Joining The Ranks Of NFT Rugs?

The Vault, an NFT marketplace by the news giant CNN, was abandoned just after a year. The company announced that it would be shutting down the Vault without going into specifics. The Vault was launched in June 2021 and sold Moments, NFTs of immortalized newsworthy ‘historical moments.’

Started off as a six-week experiment, the Vault outgrew its original vision and lasted longer than planned. With the significant drop in volume in the NFT market, there is a lack of demand for NFT-related purchases. CNN has possibly joined other numerous web2 companies taking a leap into web3 at peak euphoria and bolting during a downturn.

It’s no wonder the community is up in arms and throwing jokes about CNN being a rug pull, cash grabbing, and leaving buyers in a lurch. CNN is considering plans to compensate the holders for roughly 20% of the original NFT mint price. However, details are still being worked on. It is common for projects to fail or lose traction, especially in a bear market, however, we should objectively look at it and refrain from labeling them as a definite rug pull.

The True Stan Of India’s Gaming & E-sports

Stan, a web3 startup in Bengaluru, India, has recently announced a tie-up with over 50 well-known gaming creators and e-sports athletes in India. They also claimed to be the first platform (app) to release an NFT project in the gaming and e-sports industry. The startup will be rolling out over 10,000 NFTs and 2,000 exclusive Limited Digital Collectibles' (LDC) over the next two months.

“The idea and objective behind this are to enable the users – including non-crypto-native ones – to tap into the burgeoning NFT gaming economy while also engaging them actively along with their favorite e-sports creators and idols," said Nauman Mulla, co-founder, and COO, STAN.

As web3 grows, more use cases for NFTs will surface worldwide across different industries. It is a matter of time before blockchain technology, and NFTs will be ubiquitous in our daily lives.

Mission: Improbable

"We have ways to go about handling these pesky lap dogs but first we'll need to make a decision on which of these to take out first."

“I’ll take out the sniper on the guard tower. That way he wouldn’t see us going into the compound and we can just avoid the others.” Crimson replied.

With a silent nod of approval from 5976, Sergeant Crimson adjusted his sights and took aim. 5..4..3..2..1.. Sergeant Crimson steadied his breath and shifted his scope over to the guard on the tower.

1000..1001..1002..

Thin traces of smoke could be seen coming from the barrel of his silencer and the wait began. Complete silence. The hopeful 5 minutes have started now. It was a race against time. 

Moving through the tall grass to reach the entrance of the hideout never felt that long. Seconds felt like minutes. Upon arrival at the entrance of the hideout, it was all clear. The prowling guards were nowhere in sight. A digital fingerprint lock was in store for the triple threat. Without hesitation, 5976 bolted for the sniper tower and returned with a finger.

3 minutes.

The system safely recognized the finger and the doors slid open without a hitch. They were expected to be met with goons behind the doors but an empty, kitchen-looking space stared at them dead in the eyes. It was time for the upgraded lenses to reveal the whereabouts of these goons. Heat signatures were picked up coming from below the compound with a total headcount of 20, 5 in a room slightly down the hallway and 1 at the top, beyond a flight of wooden stairs. It was a shot in the dark. They had to choose who to go after. 

Arming their boots, they had decided to take the unconventional route of going vertically up the wall before moving horizontally to the front of the room, the hassle to avoid being detected by stepping on squeaky boards. 5976 took point with Sergeant Crimson and TKK covering his blind side. It all led down to this moment. Heartbeats thumping and adrenaline rushing, the three of them dying of anticipation to find out if they hit the nail on their first attempt. 

1 minute 30 seconds. 

“Hands up and don’t move!” 5976 exclaimed the moment Sergeant Crimson broke down the door. The guard’s face turned as white as a sheet, facing the barrel of 5976’s rifle. 

Snap.
As the trigger went off, the guard’s body laid limp on the ground.

F*ck… it wasn’t the target.

And they had no time. Only 1 minute till the enemy discovers that they’ve been infiltrated.

"Icarus, come in. Mission failure. We couldn't extract the target. We need to leave ASAP." "Roger that. T-45 seconds over. Mark the LZ with red smoke. I need a clear landing."

"Roger. Tango Yankee."

Utilizing the lenses, Sergeant Crimson pinpointed the location of the remaining guards as the triple threat sprinted to action, breaking out the window of the second floor and taking out the remaining guards with pinpoint precision and 30 seconds to spare. 

Red smoke was dropped and all they could do now was hope for Icarus to arrive soon. The mission failed and it would only get more difficult to locate the hideout now since Mr Web II would be fully aware of this covert operation and the target.

It's back to the drawing board.

Phantom Files: 24

Phantom 24 has been busy escorting ration cargoes for Ghosts and refugees after The Fallout. Pineapple and Plortis were dispatched to his location for an interview. 

What’s your favorite color?

Pink

Coffee or tea?

Tea, especially boba tea

What’s your spirit animal?

Otter or Shark

Summer or winter?

Winter

What’s one thing people don’t know about you?

I'm double jointed

A skill you’re working on mastering?

Cooking

What’s your favorite food?

Ramen

What’s your least favorite food?

Mushrooms

What’s the last thing you cooked?

Chili Shrimp

A dessert you like?

Chocolate souffle

What would you like to be remembered for?

Making others happy with my food

A book that everyone should read?

Unwind by Neal Shusterman

Most adventurous thing you’ve done in your life?

Going to EDC with friends I only knew from video games and exploring Vegas by myself

Favorite app?

Youtube

Secret talent?

Shotput

What are three things you can’t live without?

Food, my phone & boba

What’s your biggest fear in life?

Losing those I care about

Story behind your name?

My dad made this his PSN username (for electric) hawk and jj is his initials, as well as mine. I just ended up playing the PS3 all the time and just kept the username since then

Why do you love Yuri so much?

She's hot, funny, plays games, and is a boss girl

Favorite PxN memory?

My jail jjaddy squad

Someone that you look up to in this space?

Andrew Wang

Favorite video game?

Call of Duty Modern Warfare 2/Black Ops 2

Favorite Movie?

Green Book or Avengers: Infinity War

Could you give us some hints about what inspirations your phantom PFP will have?

Uchiha