4th January 2024 > > Flash crash, ENS, & leverage.

tl;dr

Flash crashes remind the adults of the terrors of leveraged crypto trading. ENS remains a firm favourite of the CC Treasury team.

Market Snap

Market Wrap

Most of the losses from yesterday’s flash crash to sub $41k have been regained. Half a billion dollars of longs got liquidated reminding us once again of the one immutable law – markets will always hurt the maximum number of people. I have been in chat groups with leveraged traders who were not even aware of the concept of perpetual futures funding rates, probably the key metric for trading crypto futures, though most techies probably disagree (“It’s all in the price”. No, it isn’t.)

Please, do not get involved in trading futures. And certainly, do not trade futures based on YouTube tips.

Curious Cryptos’ Commentary – That flash crash

Curious Cryptos’ Commentary – ENS

The CCC has previously praised ENS (Ethereum Name Service) which aims to simplify public addresses. As an example, feel free to donate to marktimmis.eth any time you like.

Vitalik yesterday weighed in on this debate, lauding ENS as “super important”, propelling ENS up 70% or so.

The CCC is not a coin shilling publication, but our research team does occasionally bring attention to projects that we believe have long-term value for the crypto ecosystem. ENS is one of them.

Curious Cryptos’ Commentary – It didn’t take long

We don’t yet have approval for a spot BTC ETF, but already applications have gone in for leveraged BTC ETFs, to the long and the short side:

“T-Rex files 6 leveraged and inverse Bitcoin ETFs

T-Rex 1.5X Inverse Spot Bitcoin Daily Target ETF

T-Rex 1.5X Long Spot Bitcoin Daily Target ETF

T-Rex 1.75X Inverse Spot Bitcoin Daily Target ETF

T-Rex 1.75X Long Spot Bitcoin Daily Target ETF T-Rex 2X Inverse Spot Bitcoin Daily Target ETF

T-Rex 2X Long Spot Bitcoin Daily Target

ETF Tickers/fees TBA

Effective Date: Mar 18, 2024

All use the yet-to-be launched iShares Spot Bitcoin ETF as initial reference ETF, but reserves right to use other spot Bitcoin ETFs.”

Oh dear (see Market Wrap above).