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8th October 2021 > > Stellar (XLM).

tl;dr

Stellar and Moneygram announce a real-world partnership that embeds cryptos into the legacy financial system.


Market Snap







Market Wrap

If this recent ramp up is being driven by the expectation of the impending approval of a US BTC exchange traded fund (ETF), then that would make me feel a little nervous.


If such an expectation was realised in the form of a physical ETF, then further price rises after the announcement would be in order.


However, I fear that if such an expectation was realised in the form of a futures ETF – the overwhelmingly likely outcome - then price falls after the announcement would be in order.


A futures product is a lot less attractive to institutional investors. Some, if not most, of those people piling into leveraged longs are not aware of the fundamental differences between the two products, and their relative attractiveness to the investor base.


Contrary to popular opinion, the announcement of a futures-based BTC ETF may trigger a sell-off.


I see a big move in 10yr UST but equities rally at the same time. The madness of quantitative easing.


As for the perpetual swap funding rate, that is the biggest overnight move seen since the CCC started reporting on this metric due to popular demand.


We are getting deeper into long squeeze territory for BTC but remember that by itself does not guarantee a sell-off – but it will exacerbate any downward market moves.


At the same time, shorts have been building across some alts, especially BSV (Bitcoin Satoshi Vision), a hard fork of BCH (Bitcoin Cash) which was itself a hard fork of BTC. This could be due to hedging of BTC leveraged longs as BSV will underperform if markets turn south.


Curious Cryptos’ Commentary – Countries ranked by crypto owners

HT to Tracey who has forwarded me a piece of research attempting to rank countries by the percentage number of crypto owners in that country.


Top of the list is Ukraine, which has gone out of its way to provide a positive legal framework for cryptos. I suspect that Russia’s ever-increasing threat of military invasion and the subsequent theft of all private property from non-Russians is a motivating factor.


Second on this list is Russia itself, which has banned cryptos. I think this demonstrates the futility of banning cryptos, but also reflects a desire to remove assets from the thieving grasp of psychopathic Putin and the violent, disgusting thugs who keep him in power.


Nigeria and Thailand – both countries that have tried to ban cryptos – appear in 7th and 8th place.


Curious Cryptos’ Commentary – Moneygram and Stellar (XLM)

XLM has been a long-term top pick for the CCC (NOT investment advice).


Moneygram had previously announced a partnership with Ripple (XRP), which is a centralised form of digital currency, and so falls into the same category as Central Bank Digital Currencies (CBDCs) i.e. neither of them are cryptos.


Following the various legal and regulatory problems recently and rightly suffered by XRP, that partnership was terminated.


Moneygram have now announced their first real crypto partnership, this time with the Stellar Foundation, whose native currency is XLM.


XLM was set up in direct competition to XRP by one of the co-founders of XRP, Jed McCaleb. No bad blood there then.


The objective of the new partnership is to develop a payments bridge that streamlines money transfers with near-instant settlement in USDC, one of the larger stablecoins. Anyone who has had experience of XLM can testify that transactions settle almost instantaneously at very low cost.


This new project is not ground-breaking in the sense of the new developments we are seeing in Decentralised Finance (DeFi).


But this is exactly the type of nuts and bolts plumbing work which will embed cryptos and blockchain technology deep into all areas of our lives. You do not have to understand internet protocols to access websites or send emails. You do not have to understand the maths of cryptography to use cryptos. That is someone else’s day job.

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