Building The Future
“We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.” - Amara’s Law
GM, Ghosts.
It’s only seven months since Phantom Network (PxN) launched, though it might feel like eons waiting for the Grey Market (GM)’s release in this fast-paced environment.
We are roughly three weeks away from the initial GM build being ready to present to our community. We will be using the silly season to hunker down and fine-tune our global marketing plan, in anticipation of our commercial launch in January 2023.
As we continue to diligently build, we would like to thank our active community for fervently supporting us in Discord and on Twitter. Also, a shoutout to our diamond-hand passive holders for patiently holding, and believing in our long-term vision.
Over the following weeks, we’re excited to announce some of the partnerships* whose products will be available on the Grey Market upon launch. You can purchase these goods using crypto (ETH and USDC). As we head into the new year, there will also be plenty of fun and exciting giveaways!
We dream of a bustling marketplace where NFT and crypto communities across web3 gather at the Grey Market to buy and sell real products using crypto. A world where digital currency is the norm and the success of the products we build will be shared in a decentralized manner with the community that has supported us throughout this journey.
In the short term, just like Amara’s Law suggests, things may seem underwhelming relative to our grand vision and ambitions. Given enough time, as we continue to grow and re-iterate day-by-day, together with the community, we will change the world.
*We are still seeking the community’s support to help us connect with great partners in the fields of luxury goods, electronics, collectible items, and apparel. You can open a Discord ticket to point us to these merchants.
Tech Terminal
- All APIs for Grey Market integration support have been added to our backend code.
- Testing for our Grey Market smart contracts have been going well. We've completed the testing for Buyer flows this week.
- Ticket integration for Grey Market Disputes between Buyer & Seller is in progress.
- Chat & Inbox System is pending integration of Frontend & Backend. We will commence testing in the coming weeks.
- And One last thing...
print(Holo, world!)
Market Matters
Welcome back, and thank you for your continuous support in reading the PxN Papers. I am Daddy Gainz, here to discuss the events in the markets over the week.
Before diving into everything else, let’s get started with a brief recap on the Philly Fed Manufacturing Index, Unemployment Claims data, and Existing Home Sales in the US, which was not released prior to last week’s edition.
The Federal Reserve Bank of Philadelphia releases its Manufacturing Index every month. It is a survey that asks 250 manufacturers in Philadelphia to rate their level of business conditions in relation to things like their cash flow spending, general hiring, and other investments. This month's Index reported a severe decline at -19.4 in relation to what was expected to be a -6, the largest reported decline since May 2020.
To put this into perspective, anything below the baseline zero mark shows signs of declining or worsening conditions, whereas anything reported above the zero mark indicates an improvement in market conditions. This report reflects where these manufacturers see themselves in future months, which suggests they are anticipating worsening market conditions moving forward, mainly expecting a decline in the workforce, which could be a good sign in the grand scheme of things to push toward the eventual FED pivot to lower interest rate hikes.
With regards to the jobs market, we were met with an Unemployment Claims rate of 222 thousand people, slightly below the forecasted 228 thousand showing continued strength in the US jobs market.
On the real estate side of things, the markets were met with an Existing Home Sales in the US reading of 4.43 million, almost spot on to the expected 4.41 million, which makes this the ninth month in a row of continued decline in US home purchases. Another positive sign for the markets as this shows the FED their aggressive rate policy is slowing the equity and crypto markets, ultimately leading to lower inflation numbers.
Another notable event from last week came from James Bullard, the president and CEO of the St. Louis Federal Reserve Bank, who stated in a speech that the current FED policy may not be restrictive enough at the current pace. He mentioned the likelihood of an increase in interest rates heading up to 7%, which is definitely something to keep an eye on moving forward, as more aggressive rate hikes are not good for traders of any market.
Heading into this week, after overall bumpy trading market conditions last week, we have a shortened trading week in the equities market as the US recognized the Thanksgiving holiday on Thursday, the 24th. Due to the holiday, this week’s calendar is shortened with not much in the way of eventful data aside from the weekly reported US Unemployment Claims, Durable Goods Orders data, and the two more impactful things with the Flash Services PMI and the FOMC Meeting Minutes recap, all of which was reported on Wednesday. Starting with the two less impactful data sets, let's look at what the numbers say for the US Unemployment Claims and Durable Goods Orders data.
Earlier in this article, we mentioned last week’s Unemployment Claims which was still showing strength in the jobs market, but this week we are met with a different story. This week, analysts forecasted a report of 225 thousand unemployment claims, yet we were met with a rather unexpected increase in unemployment claims reported at 240 thousand, showing an extra 15 thousand claims.
If you have been reading along each week, you would know that one of the big things the FED is looking at is employment rates, and they are looking to see increased unemployment across the board. This could be interpreted initially as a bad thing, but it’s a win for the markets. Higher unemployment means less stimulation of the economy, which helps, in the long run, to fight inflation from increasing, especially with many analysts expecting increased spending during the holiday season with Christmas only one month away.
With regards to the Durable Goods Orders data, which showcases the total changes in the value of new durable goods purchase orders placed from manufacturers, showed an increase higher than expected. This increase is unlikely to sustain as we see a clear trend of a slowing economy. The report forecasted a 0.4% decrease but came in at a 1% increase in purchase orders of goods such as cars and electronics like computers.
With the economy coming out of a period of extended shortages due to many factors, such as chip shortages and a global pandemic, this sector of the economy has continued strongly in the face of higher interest rates even though the cost to borrow money continues to increase for consumers, although as mentioned above this is likely to slow down after the holiday season leading into 2023.
Moving on to the more impactful events of Wednesday, we received the Flash Services PMI and the highly anticipated FOMC Meeting Minutes recapping the previous 75 bps rate hike. The Flash Services PMI showed yet another month of declines, exhibiting what we know to be true with slowing economic consumer demand.
The PMI report, an index based on the survey of 400 purchasing managers in the services industry with companies such as restaurants and hotels, came in at 46.1, which was below the forecasted 48, indicating a decrease in activity related to the service industry.
This continued contraction in this end of the economy, is once again a positive signal for the markets. We see the increase in tighter financial conditions for consumers with less expendable income being hit the worse due to the higher borrowing costs. The increase in interest rates will ultimately result in a general overall higher cost of living across the board.
As businesses in the service industry buckle up for a bumpy road ahead, traders of all markets look to take advantage of this potential signal to price in the market bottom, in hopes of seeing a brighter future ahead.
Now let's get straight into Wednesday’s FOMC Meeting Minutes, which we should know by now, is reported a few weeks after the last interest rate hike. This details a record of the meeting and provides us with an extensive and thorough report showcasing which parts of the economic conditions had the largest impact and influence on the FED’s previous interest rate hike decision.
As many investors have been patiently awaiting a FED pivot to lower rate hikes, a majority of the transcript is good news. Most of the members involved in the interest rate hike decisions agreed that we were approaching an appropriate time to pivot to lower hikes. They believed it was time to shift from 75 to 50bps, which is expected to take place during the final interest rate hike of the year in December.
The transcript also stated that the FED continues to watch the jobs market closely as they want to see things cool off more. There is some uncertainty among the members as many agree that if they do too much, it could lead us into a recession, while doing too little could worsen economic conditions.
The FED's next step will become clearer in December as many more import reports and data continue to be released prior to the next FOMC meeting rate hike on December 14th. The federal funds rate will continue to exceed the expected set upper limit of around 4%, with the potential to see up to 7%, but likely falling somewhere between the 5% to 7% mark.
Briefly discussing relevant crypto news from this weekend, we saw the FTX hacker sell off millions of dollars in stolen Ethereum, with the wallet still holding a large amount of ETH, reportedly around 200 thousand tokens. It was also revealed that FTX is in debt of more than 3 billion to its 50 largest creditors, and as the court case continues, it is likely that much more is to be revealed within this growing saga.
As Bitcoin and Ethereum, as well as many other coins, struggle to stay above their key levels of support, it’s wise to keep an eye on all things market related, including any further release of big market firms or exchanges having exposure to FTX, as well as the continued release of economic data and reports as they flow out through the end of this strange and turbulent year we have had.
Gainz's Two Cents
Remember, nothing is a guarantee; although the likelihood of a lower interest rate is high, there is still a potential that we are met with one more 75 bps interest rate hike, which would likely send a shockwave through investors who are currently pricing in the expected future decrease. Unless the intent is to off-board capital immediately back into fiat with your native currency, it’s wise to keep capital off exchanges as the full scope of the FTX collapse damage is yet to be revealed. We hope everyone celebrating any holiday this week has had a wonderful time full of fun with family and friends while taking some time to be in the present moment in real life, away from the wild times circulating through the web3 space.
A bright future is ahead of us. No matter what outsiders say about how “crypto is dead '', I firmly believe that the future will be full of exciting times and mass adoption. We must remember that our crypto space is still in its infancy, and is quite volatile as of late due to this being its first time experiencinga recession-like market
Patience is key in all things, and great things come to those with the ability to wait. We hope you continue to stick around, as we will be here building and innovating through thick and thin. As usual, NFA, DYOR, stay safe, love y’all, and see you next time!
Wild Web3
K-Pop web3 Idols
K-Pop is a multi-billion dollar entertainment industry, and the players are never shy to experiment with new ways to captivate their worldwide audience. tripleS recently exploded into the scene with their debut album, ‘Access’.
Not just another Seoul-based K-Pop girl group, they are among the first to blend blockchain with pop music. Their lead track, “Generation” was a phenomenal hit with over 28 million Youtube views so far. tripleS is a group of 24 members divided into sub-units. Fans can choose the composition of the sub-units through voting on the blockchain using a process called “Gravity”.
The first voted-in sub-unit called Acid Angel from Asia (AAA) debuted with four talents and released ‘Access’ which currently has over 5.5 million Spotify streams. Access features six tracks, and its title song, “Generation” reached over 1 million views within 24 hours of release and 10 million views within seven days of its release.
Modhaus is the web3 project behind the blockchain innovation for tripleS and its goal is to promote Korean Pop culture by bringing fans closer to creators by having them be part of the experience. As web3 seeks to find novel and practical ways to implement blockchain into real-life use cases, we can expect more exciting ways in how this technology will permeate our daily lives.
A Fiery Entrance
How much do you need to become a blockchain gaming publisher? For Fenix games, they recently raised $150 million to create a publishing and platform company to bring blockchain games to market. Seeking to be a web3 gaming launchpad, they plan to acquire, invest, and publish games that are powered by the possibilities that web3 brings.
“You can think of us as like a VC fund,” said Chris Ko, CEO and cofounder of Fenix Games, in an interview with GamesBeat. “The market is similar to earlier [mobile gaming at the rise of free-to-play games] but it hasn’t found its Clash of Clans for blockchain games yet. We’re using the VC arm to fund the next generation of games…”
We have seen the rise of gaming studios that are tapping into the potential of the blockchain to create a new gaming ecosystem that could be fun for players and profitable for game creators. As the technology and market mature, web3 gaming will be an explosive industry that could usher in the much-needed adoption into the space.
Mattel Trailblazing Web3
Nostalgic, iconic brands are coming out of the woodwork to stay relevant in a digitized future. The best way to do so? Through web3 adoption. Mattel, famous for its Hot Wheels franchise, just got hotter by launching an NFT Marketplace on the Flow blockchain, called “Hot Wheels NFT Garage”.
The marketplace will sell digital collectibles in the form of NFTs and is designed for mainstream consumers. Users don’t have to own crypto to make purchases. The platform also has plans to integrate peer-to-peer trading so collectors can trade among themselves.
The Hotwheel collectibles will be grouped into packs, each consisting of seven hot wheels that go for $25 per pack. Each pack will feature NFTs of varying rarities and the rarest can be redeemed for physical die-cast replicas. As we have witnessed time and again, the best way to get adoption is to make the process of onboarding used as frictionless as possible. We hope to see the web3 space grow as the technology becomes simpler for “everyday” people to use it.
Happenings in the Community:
- We would like to wish all our American Ghost fam, a Happy Thanksgiving Day! Also, to commemorate Black Friday and Cyber Monday, we will run a special event for the community. Check our Discord for more details.
- A degen life needs a balance of physical activity. Leveling up on our touching grass efforts, we launched a fitness challenge spanning 4 days for the Ghost fam. We had Crunches with Chewy, Daddy G’s Pump & Dump, JJ’s Leg Day and not forgetting Rest Day with Sharky! Ghosts who diligently put in the effort to join us in the activities stand a chance to win consumables and a raffle entry for a Ghost NFT.
- We ran our regular weekly streams and Mental Health Mondays to get the community to bond together over shared interests.
- We are delighted to bring to you UKiss, a hardware wallet maker and partner for the Grey Market. Our Ghosts stand a chance to win 20x Ukiss hardware wallet and discount codes in the Whiteboxes. With the recent problems plaguing web3, nothing spells peace of mind more than a hardware wallet to keep our funds #safu. Look out for more exciting prizes in future Whiteboxes!
Take A Break
With all the chatter on Twitter, we inevitably feel burnt out trying to keep abreast with the latest FUD or news happening in web3, 24/7, 365 days a year.
Today, we will share some tips on how to take care of your mental and physical health. Everyone has varying levels of resilience. Be it the ability to block out the noise or push through a marathon, we’re made differently.
It’s okay to feel vulnerable and crushed sometimes, but what matters most is learning to pick yourself up. Many times, we will feel like giving up. If you’re still around during this horrendous bear market, trust me, you’re going to make it.
Here are a few tips when you’re feeling mentally drained:
- Take a break. Be it from Twitter, Discord, or work. Being away from something doesn’t mean that you’ve given up. Being in the right frame of mind is more important.
- Talk to someone. The NFT space has some of the best and worst people around. Some people put on a façade, but there are still people who genuinely care. Reach out. If you’re new to the space and can’t find someone to talk to, just head over to PxN’s discord, we care and will be there for you.
- Make sure you have time to unwind. The fear of FOMO eats at us sometimes and leaves us drained. Set aside some time for yourself. Get a nice dinner and chill with Netflix. Go walk your pet. Dance erratically to loud music in your apartment. Anything that makes you feel whole again.
- Hang out with real-life friends. Being online takes away a part of who you really are. Spend some time with people who know YOU. Have a drink, some chicken wings, or just play some Xbox.
Being online all the time is detrimental to our eyes. Especially if you’re sitting in front of your computer the whole day and you only move around to grab some food or shower.
You’d soon develop eye strains, and it’s not good for your physical well-being either. If this becomes a lifestyle and a habit, health problems like high blood pressure and diabetes will soon crop up, especially if you’re not conscious of what you’re putting into your mouth.
Here are a few tips to start developing an active lifestyle while grinding away:
- Hydrate. With PLAIN WATER. Hydration is key for any living organism. It helps to regulate body temperature, prevent infections, deliver nutrients to cells, and keep your organs functioning properly. Not to mention, it helps improve sleep quality, mood, and ensures that you operate with a clear mind.
- Touch grass. Literally. Go for a walk; it helps with the inactivity. Even a morning or evening stroll will help with physical and mental health. Looking at green things like trees or grass helps reduce strain on your eyes.
- Exercise. If you’re already going to the gym or have a sport that you take part in, good job, keep going. If you haven’t cultivated a good habit of exercising, you should probably start now.
Start lifting weights, go for a jog, or even wash your car. Movement keeps your heart pumping. Exercise trains your body to move oxygen and blood to your muscles more efficiently. It helps you burn calories and lowers your cholesterol level. Start on your weight loss dream. NOW.
If you need a friend, reach out to us; we don’t bite. We cannot stress this enough, times are changing, but tough times don’t last. Tough people like YOU will. If you know someone who needs someone to talk to, reach out; you might be the help they need. To the web3 community, we got this.
Pineapple Lounge
Welcome to the Pineapple Lounge! This time Pineapple and Plortis located Phantom 28’s base for an interview!
RandyPaco
@NftPaco
Phantom Files: 28
Pineapple and Plortis were dispatched to the slums to visit Phantom 28’s watchtower. Phantom 28's watchtower had a vantage point of all the major locations in the city. He was sitting at his console, peering through an array of high-powered lenses and screens.
The tower was positioned to overlook the central business district where most of the crime happened and the spaceport. His responsibility as a Phantom was not to deal with crimes on the ground but to be aware of them before they occur. A skillset he'd honed over some years being an Enforcer.
1. What’s the story behind RandyPaco?
RandyPaco is just like a nickname that I've had since I was in like 6th grade and it’s just been a part of me since.
2. What is your favorite weird food combination?
A weird food combination would have to be Hot Cheetos and CFA sauce.
3. What’s your favorite game to play?
My favorite game at the moment would have to be TFT.
4. Where do you want to go on vacation?
I debated whether I wanted to travel to Alaska during my winter vacation.
5. What is your favorite TV Show?
My favorite TV show would have to be The Rookie.
6. What is a skill you want to get better at?
A skill I want to get better at is networking.
7. What is a hot take that you have?
I prefer cats over dogs.
8. Who do you look up to in this space?
I would say I look up to Dex. He's the reason why I’m here today.
9. What is your favorite PxN moment of yours?
My favorite PxN moment would have to be when I became an Enforcer. Pants asked for a resume, which was a joke, but I sent her my actual resume I use for web2 jobs.
10. What’s a custom PFP you would like to have?
I would want to be an e-boy with glasses.
11. What do you like about being on the team for PXN?
I like that I'm learning many skills that would be applicable to web2. It's furthering my career in both fields.
12. When was the last time you drank too much?
That would be the most recent Halloween. I don't remember half of the night, and I have a video of me jumping on a table and eating random stuff. LMAO
13. What is one thing you still have from your childhood?
I still have my Yu-Gi-Oh cards.
14. What is your favorite movie?
My favorite movie of all time would be Hop.
15. What is something you’ve always wanted to try but you’ve been too scared to do?
I've always wanted to go skydiving but never pulled the trigger.
16. What is one goal you are determined to achieve in your lifetime?
A goal I am determined to achieve is to buy a house. I've always rented, and it would feel good to own something.
17. What's your idea of a perfect road trip?
A perfect road trip would be me and 3 of my closest friends driving around the country.
18. What do you do to relax?
I mainly read a lot of manga/webtoons to relax.
19. What are 3 things you cannot live without?
I can't live without my computer, my car, and my phone.
20. What time do you typically sleep?
My sleep schedule has been messed up for so long. I usually sleep at around 8am-10am PST.
21. How many hours of sleep do you typically get every night?
4-6 hours.
22. What is a wacky business idea you have but never followed through with?
My friends and I wanted to start a sticker company using streamers as the basis but never went through with it.
23. How did the meme of you being a 12-year-old start?
Refer to question 24.
24. How did the Randy simps start?
I think these two questions tie in with one another. I started the Randy Simps when I got ghosted because I was spending all of my time in the server. It reached the point where 70% of the server had it in their names.
Pants came in and saw everyone having Randy in their name and was wondering who I was, so she started to FUD that I was underage, hence 12. I sent her my passport just to prove that I was not underage.
25. Who is your favorite musician?
KESHI
26. What is a song that you currently like at the moment?
It's you - keshi & max
27. Can you tell us about one of your favorite moments in web3?
My favorite moment in web3 would probably be when PXN had less than 200 members. Those times were always a blast, and I miss them.
28. If you could shout out anyone in this space, who would it be?
Shout-out to my Azooki homies, Eranthe, Divide, and Chloe. Shout-out to DOXTROT & DUCKOOS too!