16th October 2024 > > WLFI & Larry Fink.

tl;dr

WLFI gets off to a rather slow start. Larry Fink reminds us of the long-game.

Market Snap

Market Wrap

Quarter of a billion dollars went into the ETFs on Friday, another half a billion on Monday, and over a third of a billion yesterday. These are not speculative retail flows – this is the incoming wall of institutional money into BTC. And it’s only going to get bigger.

One should not be surprised at the resultant price action.

Curious Cryptos’ Commentary – World Liberty Finance

This is the Trump owned and managed DeFi platform that went live yesterday. And oh boy, there are some problems.

The first one is not actually a making of Trump’s. Scams are everywhere all riffing on the same old themes of greed and naivety. I know readers of the CCC are too smart to fall for these feral scumbags. The second problem was an entirely self-made one, for the website repeatedly failed during the day.

The biggest problem for the Trump family is the very poor reception of the launch of World Liberty Financial and its coin WLFI. The platform adds no new functionality to what is already available in the DeFi space. Why would anyone use a new and untested dApp for lending, borrowing, or providing liquidity rather than a battle-hardened household name such as AAVE? (*)

I had made the assumption that some investors would proceed on the basis of emotion rather than hard-nosed economics.

I was wrong.

Just 3% of the 20bn coins offered at 1.5c each were sold. That is not a resounding seal of approval, probably reflecting everyone’s shared view that the Trump pivot into cryptos, though most welcome, is nothing more than political opportunism, allied with the alluring smell of potentially free cash.

…

(*) Full disclosure – the CC Treasury has a decent sized investment in AAVE, likely to be one of the stand out coins this cycle, though that is just a personal opinion and most certainly should not be construed as investment advice.

Curious Cryptos’ Commentary – Larry Fink

BlackRock CEO, Larry Fink, commented during the Q3 earnings call for BlackRock:

“Conversations we’re having with institutions worldwide, conversations about how they should think about digital assets, what type of asset allocation there should be.”

When I talk about a wall of institutional money, Larry knows exactly what it will look like.

He continues:

“I mean, we believe Bitcoin is an asset class in itself. It is an alternative to other commodities like gold.”

BTC is its own asset class. Wow.

If BTC grows to the same market cap as gold at $18 TRILLION (it will be much higher one day), the price per BTC will be over $800k.