Qrafty teaches you what exit liquidity is, knows the top crypto games and Alameda minted half of the USDT supply

***Qrafty smiling the biggest smile*** Aloha, crypto curious! I am Qrafty - the crypto lovin’ honey badger 🦡 !

Welcome to Coinqraft – the daily crypto newsletter for busy but curious people who don’t have time for the crypto drama!🌟

🦡   Qrafty has fresh bits from the crypto jungle, so let’s dive in: 📰 🌟

1. Don’t Be Exit Liquidity

2. Top Play To Earn Games

3. Gary: “Crypto Doesn’t Have Value”

Bonus: Alameda Minted Half of The USDT Supply

What is Exit Liquidity?

How Not To Become It

Imagine you're at a crowded concert, and you decide to leave early to avoid the traffic. Exiting the venue might be smooth if there's a well-organized exit path (high exit liquidity). However, if there's a stampede and everyone is rushing to leave at once (low exit liquidity), it could get chaotic.

In crypto markets, "exit liquidity" is similar. It refers to how easily you can sell or exit your cryptocurrency holdings without causing a significant price drop. When there's high exit liquidity, you can sell your crypto quickly and at a stable price. But when there's low exit liquidity, selling large amounts of crypto can crash its price, and this is where retail investors often get "dumped on."

Here's why retail investors are usually the ones who get dumped on:

• Limited Information: Retail investors often lack access to the same information and resources as institutional investors. They might not be aware of market trends, news, or big players' intentions.

• Size Matters: Large institutional investors can trade massive volumes of crypto without causing substantial price swings. Retail investors, on the other hand, typically have smaller holdings, so when they rush to sell in a low exit liquidity situation, it can trigger a price drop.

• Emotion-Driven Trading: Retail investors might be more susceptible to emotional trading, panic selling when they see prices dropping, which exacerbates the problem of low exit liquidity.

Now, this is important to remember when your favorite crypto influencer is shilling you a new coin, making subtle innuendos that it’s the next big thing. Your money is their exit liquidity, please remember that.

What should you do?

Research: knowledge is power. Before investing, thoroughly research the crypto project, its team, technology, and community. Understand the potential risks and rewards. Start from the premise that it’s a scam and you shouldn’t lose more than you can afford.

Risk Management: never invest more than you can afford to lose. Diversify your portfolio across different assets to spread risk. Stay Informed, keep an eye on market news and trends. Follow reputable sources for updates and insights.

Set Goals: have a clear strategy and set realistic goals for your investments. Know when you want to enter and exit a position. Don’t panic sell (or FOMO buy). Don’t fall for FUD.

Limit Orders: use limit orders when trading. This allows you to specify the price at which you want to buy or sell, which can help avoid sudden price drops. Learn from mistakes: if you do make a wrong move, take it as a learning experience. Analyze what went wrong and how you can improve your strategy.

Finally: if it sounds too good to be true, that’s correct. Stay away!

🙃 Qrafty hopes that today’s main story brought brave badgery value to you! Now it’s time for a break, you deserve a bit of fun! 😇 👇️

Crypto Has ‘No Innate or Inherent Value’

…says the SEC in the Coinbase case. Well duh… thank you Sherlock! Guess what? The paper (well… cotton) on which we print things and call it money doesn’t have inherent value either.

Very few things have inherent value to people. Those are sacred. Like… you know… life! Everything else derives its value in relation to everything else, mkay?

Money is a story we all tell each other, a conspiracy we all participate in willingly and agree on. It’s more like a continuous mass hallucination than a hard fact. But we built institutions around this concept, out entire way of life is based on the existence of this access to money. It’s mobile value, redeemable for anything we desire, as long as we have enough access to it.

If we decided to, starting tomorrow there would be no money. Or borders, religion, institutions, politics and so on. It seems incredibly hard to accept or comprehend for some, but it’s really that easy. Then, Qrafty asks: how will the world function?

These are the silent agreements, the foundations on which we have built this society and attained a certain level of achievements and comfort. It’s impossible for most to think about a different way of living. It’s impossible for most to even think outside the self imposed boundaries of our collective creation. That’s the whole point, isn’t it?

When it comes to crypto, the gentleman from the SEC is saying that it doesn’t have “inherent value“. Newsflash, senor: the object of your job has no inherent value, mkay?

Value is given by people. The more something is useful and becomes a part of our life, the more value it has. When it also solves a need, it has commercial value as well. It’s all perception and it’s all in the eyes of the beholder.

Whether Mr. Gensler believes digital currencies have value or not, that is completely irrelevant. His time in that office is limited. His decision power, the same. The whole blockchain and digital currencies space will not succumb to the whims of the SEC boss, it will move forward. It’s more important to understand how it will move forward and be at the edge of change.

Top Play to Earn Games

Let’s leave aside war and crazy people for a while and focus on some more pleasant ways of spending time. Playtoearn has made the top play-to-earn games by active users for last week, and the top 3 are:

1. Farmer’s World with over 420,000 active users in the past 7 days.

   If FarmVille was on blockchain, this would be the closest it would get. You know… aside from actually being FarmVille on a blockchain. It operates on the WAX blockchain and you’re livin’ the life… of a farmer.

   You get to cultivate crops, breed animals, build different buildings, mine for gold and NFT’s and even fight jungle monsters. So the usual peasant life with some adventure sprinkled on it.

   Players earn by exchanging resources they obtain in game for the $WAX token. The game is not available for mobile yet and you will need about $500 just to start playing it. If you want to start the game in the mining section, that’s going to set you back $2,000. Yeah, and people wonder why no one’s playing Web3 and NFTs…

2. Sweat Economy had 289,510 users last week.

   This is a very interesting concept for an app, because it rewards your movement with crypto tokens. Yep, you become the proverbial hamster, but you don’t need a wheel to run in. Just start running or walking wherever you want.

   The game is built on the NEAR blockchain and you receive sweatcoins for moving daily, which can be redeemed for the token named $SWEAT. Also, there’s a daily limit to how much you can earn, to prevent the system being exploited.

3. Alien Worlds with just under 150,000 weekly users.

   Alien Worlds also runs on the WAX blockchain. It's got this whole galaxy going on, with six different worlds, and each one has 500 land plots.

   You can do some virtual mining and scoop up a cryptocurrency called Trilium, the in-game currency.

   The land plots are all owned by players and each plot is an NFT; each owner of land receives a percentage of the trilium mined on his land.

   There are three ways to earn in this game: mining, revenue from land and staking.

Also, although volumes are abysmal and there’s more interest in watching paint dry than buying NFTs, the top 3 NFT Collections by volume are:

1. Bored Ape Yacht Club with $6.52 million in volume, an almost 40% drop in volume compared to last week.

2. Gods Unchained has volumes of $4.48M, a modest 20% drop.

3. Crypto Punks seems to have some life left into it, as the volumes jumped over 60% compared to last week. Don’t get your hopes up though, it’s definitely temporary.

👆️ None of the above mentioned projects or games represent any form or endorsement or financial advice from Qrafty, nor did Qrafty receive any funds for their promotion. 

Alameda Minted Half Of The USDT Supply

Here’s something interesting for you. Alameda, FTX’s research division and the company that had a $64 billion white check from the exchange, seems to be responsible for almost half of the total number of USDT minted… ever.

Decentralization, right?

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Other stories 

Fidelity is hot for Bitcoin

Looks like Fidelity is either in love, or high on Bitcoin. Among all assets under the loving Sun, to them Bitcoin is the best, most beautiful, wonderful and fabulous asset that every was. It’s all love baby, it’s all love!

And that makes Qrafty very, very suspicious! So should you! Why would such a big fund tell us their strategy, unless they have an interest for us to know? Read that bit about exit liquidity again, you’ll understand.

Huobi recovers $8 million

Huobi successfully recovers $8 million worth of stolen Ethereum by offering a bounty to the hacker. The exchange, in a centralized move, rewarded the attacker with approximately $400,000 in ETH as a "white hat bonus."

This whole hack thing was pretty weird to begin with. Usually we find out more down the road. For now, Qrafty will keep the detective hat on, but leave it like this.

Ethereum Foundation needed some cash for drinks

The Ethereum Foundation has exchanged around 1,700 ETH, equivalent to $2.76 million, for the stablecoin USDC. This non-profit organization conducted the conversion directly from Ethereum to USDC using the Uniswap decentralized exchange.

Deribit dreams bigger

Deribit has plans to broaden its range of options available for trading on its platform. They plan on adding XRP, SOL and MATIC, starting January 2024. Additionally, the company is exploring expansion on a geographical scale, aiming to obtain an EU license and establish an office in the Middle East.

Market Whispers

Even though the weekend candles gave us a little hope for upside, looks like Bitcoin is not detached from real world after all, and the economic and world events seem to influence it nearly as much as it influences TradFi.

So, talking numbers, Bitcoin went down a few red candles to $27,260. To be honest, Qrafty was expecting to take last week lows and re-test the October open ~$26,950. Maybe tomorrow. If it goes straight up from here, we are looking to take last week highs, towards ~$29,200.

Qrafty ends channeling his inner trader.

Today is COLUMBUS DAY!

That’s all from Qrafty 🦡 for today! Qrafty thanks you and wishes you to live each moment as if you are listening to the music you love most!

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