***Qrafty smiling the biggest smile*** Welcome, fellow crypto seeker! I, Qrafty the crypto lovin’ honey badger, welcome you to Coinqraft – the crypto newsletter for brainy folks who crave the lowdown on crypto and Bitcoin but prefer to dodge the crypto fanatics and Twitter daredevils lurking in those mysterious Telegram caverns!.🌟

🦡 Whoooweee there's a lot to talk about today! 🦡 Let’s dive into the crypto rabbit hole because Qrafty just got back with news 📰 and scoops 🔍 from the crypto jungle:

1. Rates to be hiked again, yaay!

2. OnlyFans + Friend dot Tech is a match made in… money?

3. Crocs and Doodles Collaboration

Today’s Story

The Powe(r)ll has spoketh

The well suited gentleman has enlightened us once again with his financial wisdom, letting us know that more rate hikes are expected and Bitcoin has dumped a bit, but nothing too bad. Qrafty thinks it’s better to share the conclusion in a story, below 👇️ 

Once upon a time, in the land of Econoville, there was a magical place called the "Federal Reserve." At the helm of this enchanted realm was a wizard named Jerome Powell. He had a peculiar job - battling the mischievous Inflation Goblin.

This tricky little goblin loved to play pranks by making the prices of things jump up. But sometimes, he got a little too mischievous and made things too expensive.

One sunny day, Wizard Powell gathered the townsfolk and said, "Dear citizens of Econoville, that mischievous Inflation Goblin is at it again! He's making prices go too high."

Everyone in the town frowned, but Mr. Wizard Powell explained, "To tame the Inflation Goblin, we'll have to do something called 'interest rate hikes.' It's like telling the goblin to slow down with his pranks."

A clever young mage asked, "But Mr. Powell, won't higher interest rates make it harder for us to borrow gold coins for our quests and adventures?"

Wizard Powell chuckled, "You're quite sharp, young mage! It's true that higher interest rates can make borrowing a bit tricky, but it's the only way to keep the Inflation Goblin from causing chaos."

He continued, "Think of it as a magical seesaw. If one end goes up, the other comes down. So, while we make it harder to borrow, we hope that the Inflation Goblin will stop his price-raising shenanigans."

But a wise elder chimed in, "Mr. Powell, isn't there a risk that this might make it too tough for our merchants to sell their enchanted wares? If people can't buy, our local economy might slow down."

Wizard Powell nodded, "Exactly! It's a fine balance, like tightrope walking with a goblin on your back. We want to control the Inflation Goblin, but we also want our merchants to thrive. We'll adjust our strategy as needed to keep everyone happy."

He told the crowd about a time when he had said, "Some discomfort is expected as we battle the Inflation Goblin." It was like going on an epic quest where you knew you'd face a few bumps along the way.

As the townsfolk listened, Wizard Powell assured them, "We've seen some positive signs recently. Inflation has started to cool down, like a goblin taking a nap. But we'll keep an eye on it and be ready to act if it wakes up again."

He reminded them that while they had to be cautious, they also had to be brave. "We don't want to overdo it and hurt our kingdom's growth," he said. "Like any adventure, we must proceed with care."

The thing is… Fed futures are now pricing in a 25 bps rate hike in November. Three months ago, markets were expecting 3 CUTS in 2023. Two months ago, markets were expecting 3 more HIKES in 2023. Last week, markets were expecting a 6-month PAUSE. Now, rate hikes are back on the table.

So… what can we expect, Qrafty?

Reasonably Good Future Scenarios:

1. Stable Growth and Inflation: The economy finds a good balance, with inflation gradually coming down to more manageable levels. Prices of goods and services start to maintain a steadier pace. The housing market stabilizes, with house price increases slowing down to a more sustainable rate. People continue to have access to jobs, and the overall economy grows steadily.

2. Managed Housing Market Correction: Policy measures are put in place to manage the rapid rise in house prices. This could involve introducing regulations to curb speculative buying and providing incentives for affordable housing construction. As a result, house prices stabilize and become more aligned with people's incomes, making it easier for more individuals and families to own homes.

Not Good Scenarios:

1. Continued High Inflation: Despite efforts to bring down inflation, it remains stubbornly high due to ongoing supply chain disruptions, geopolitical issues, or unexpected events. This makes goods and services more expensive over time, putting pressure on people's budgets. Housing prices might continue to rise at an unsustainable pace, making it increasingly difficult for many to afford homes.

2. Housing Bubble Burst: If the housing market isn't properly managed, the rapid increase in house prices could lead to a housing bubble. If this bubble bursts, house prices could suddenly plummet, leaving many homeowners with properties worth much less than they paid for. This could lead to financial instability and negatively impact consumer spending and confidence.

Completely Unexpected Scenarios:

1. Technological Revolution: A major breakthrough in technology, like a new source of clean energy or a revolutionary way of building homes, could positively impact the economy. This could lead to job growth, increased productivity, and a surge in new opportunities, which might help stabilize inflation and create affordable housing solutions. AI has the potential to do that, but the penetration and impact in markets and jobs is not yet strong enough to create a significant difference.

2. Global Economic Shock: A significant event on the global stage, like a major conflict or a widespread natural disaster, could disrupt supply chains and economies worldwide. This could result in unexpected shifts in inflation, employment, and housing markets, creating challenges that were not foreseen.

🙃 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! 😇 👇️ 

A good giggle… priceless. For everything else there’s… laughing hysterically.

Here is the main news of the day 👇️ 

1. Doodles and Crocs - Exclusive Collaboration

Doodles, the cool lifestyle brand, and Crocs, the comfy shoe sensation, are teaming up to mix real-life style with digital flair. Picture this: exclusive Doodles x Crocs Classic Clogs, complete with funky Jibbitz charms designed by the clever folks at Burnt Toast. And guess what? Each bundle even includes a digital collectible "Crocs Box" – because your shoe collection deserves some 21st-century fun!

When you snag the Doodles x Crocs Classic Clog Bundle, you're not just getting comfy kicks – oh no! You'll also score a nifty Crocs Box digital collectible. Crack open this virtual vault, and what do you find? Two Doodles Wearables and a Beta Pass, granting you VIP access to Doodles' Stoodio.

Mark your calendars for August 29, when the collection will be available on the doodles.app platform ! But also be aware that on the 28th, Doodles’ Original Collection buyers will be offered exclusive access. Doodles holders will get a discounted price of $99; for the infidels (as in non-holders), the price will be $120.

2. Pepe rugged? Price drop 19% on suspicion that team sells

The Pepe memecoin took a nosedive in price when its developers dumped a massive load of tokens into crypto exchanges on Thursday, potentially rattling the nerves of investors.

The PepeCoin team moved a whopping 16.045 trillion PEPE tokens valued at $16.85 million to four exchanges, namely Bybit, Binance, OK and KuCoin. The transfer came from the team's multi-signature Ethereum address (a multisig wallet requires multiple parties to approve any transactions). The wallet still holds 10.697 trillion PEPE worth around $9.5 million.

Also, the team also altered the security settings for this multi-signature wallet, reducing the required signatures from five out of eight to just two out of eight for transaction authorization. That doesn’t really smell good to Qrafty, right?

3. OnlyFans + Friend.tech = ❤️

Friend.tech added a new feature yesterday, the ability to send photos in the app. Aaaaaand suddenly it saw a large influx of OnlyFans *cough* content creators *cough* swarming the app.

Just to have a better idea, OnlyFans (OF) is the social media playground where accounts (mostly female oriented) make green by sharing their photos or videos. Now, I must warn you, this isn't your grandma's social media – it's a bit more spicy, with content that's, shall we say, a tad more on the adult and explicit side. 😄📸🔞

Why did that happen, Qrafty?

For multiple reasons, but mainly because sex and money have this great relationship on the Internet. Also, in case you didn’t know, porn was (and still is) a main driver for the growth of the Internet in its early days.

So this was a huge opportunity for online sex workers to open up a new distribution channel for their content. And yes, it definitely works, since the business model is pretty much the same: hiding content behind a paywall.

It’s just the mechanics differ a bit: OnlyFans ensures that the cash goes straight to the content creator, although there are a few fees along the way. On the flip side, Friend.tech takes a different approach. It stashes the ETH earned from selling keys in a smart contract, using a nifty bonding mechanism to set key prices based on the number of holders and keys sold.

Will it be a match made in… crypto or will things fade out as fast as they fizzed up? Time will tell and Qrafty will pay attention for you :)

4. Biden’ Crypto Tax Proposal wants to kill adoption

A proposed U.S. Treasury Department rule suggests that cryptocurrency brokers, including exchanges and payment processors, would have to provide new information about users' digital asset sales and exchanges to the IRS.

This rule aligns with Congress and regulatory efforts to ensure proper tax payments among crypto users. The proposed Form 1099-DA aims to simplify tax calculations for users and help them determine if they owe taxes.

The rule would treat digital asset brokers like those in traditional financial markets, requiring them to report information similarly.

The proposed definition of "broker" covers various platforms, centralized or decentralized, that deal with digital assets. This rule encompasses cryptocurrencies, non-fungible tokens (NFTs), and related online wallets.

Brokers (aka exchanges) would be responsible for sending these forms to both the IRS and users for tax preparation assistance.

What does that mean more exactly, Qrafty?

It means that both CEXes and DEXes would have to send all your transactions to the IRS so that Uncle Sam knows how much you owe. Cool, right?

5. BlackRock holds 12,224 Bitcoin… Really? NO!

BlackRock has recently come into the spotlight with the disclosure that it possesses an 8.1% ownership stake in MicroStrategy. This revelation carries significant implications within the world of finance and cryptocurrency. What makes this noteworthy is that BlackRock, while not directly investing in Bitcoin, has ingeniously positioned itself to gain from Bitcoin's potential value growth through its substantial holdings in MicroStrategy.

To put it more clearly, MicroStrategy has made substantial investments in Bitcoin, essentially betting on its rising value. By owning a sizable chunk of MicroStrategy, BlackRock is indirectly exposed to Bitcoin's performance. It's as if BlackRock has joined the ranks of "publicly traded Bitcoin enthusiasts," riding the waves of Bitcoin's value appreciation without directly investing in the cryptocurrency itself. This strategic move allows BlackRock to benefit from the potential profits in the crypto space through its significant MicroStrategy stake, which is the equivalent of ~ 8% of Michael Saylor’s company.

6. JPMorgan Analysts Say Things

First, don’t believe mainstream analysts. Ever. Second, don’t believe bankers. Ever. So don’t believe analysts bankers, ever ever! The challenging part is just beginning, so please be aware of this as we are entering the final and most mentally draining phase of the market.

It’s not about what they say, it’s more about why they say it. There’s a clear interest at play, always, and you are NOT the one who they intend to help. The market will enter a period where most people rage quit, sell and become exhausted by what BTC will be doing. Trust your instincts.

Hey hey 🙃 Qrafty hopes you are enjoying the experience here and would like to regularly get Qrafty’s letters!

If so, please click on the button below. Qrafty is really really grateful to have you here, so thank you!

Qrafty’s thought of the day

Today, here’s a simple and clear way to understand how secure Bitcoin is. The only thing that can break that is a quantum computer.

Other stories from today worth considering

XRP: Three lawyers from SEC’s legal team quit case

Both sides, the SEC and XRP, had some changes in their lawyer armies. It’s not something terribly unusual, but it’s funny that a Twitter user said that they don’t want to be on the wrong side of history. Funny thing is, the user might be shocked that there might not be a good side of history in this trial.

Base and Optimism shake hands

In a based optimism for the future (see what Qrafty did there?) the Optimism Foundation is waving its magic wand and offering Base a whopping 118 million OP tokens over the next six years. But Base isn't getting this treasure chest for free! In return, they must part with 2.5% of all the gold coins they collect or 15% of their fairy-tale earnings, whichever is more enchanting.

FTX and BlockFi Hit by Third-Party Data Breach

Kroll, an independent intermediary in charge of handling creditor claims for bankrupt firms, suffered a data breach. This incident resulted in the exposure of customer information from both the crypto exchange FTX and the lending platform BlockFi. Both firms issued alerts to their customers regarding potential scams.

Binance suddenly aware of compliance

Binance encourages low-cap projects to enhance liquidity due to “concerns about potential market manipulation” as part of “ongoing risk management initiative.”

Also, as per WSJ, suddenly Binance realized that they have been working with banned Russian lenders… what a realization, Qrafty notices.

Magnet Finance rug pulls $6.4m on Base

The Friend dot tech success is good news, but it seems like Base can’t shake the scammers for the moment. Magnate Finance, a lending project operating on Ethereum Layer 2, disappears with over $6 million in apparent 'rug pull'.

Market Whispers

Well, since is the beginning of the weekend BTC didn't fail to play with our emotions a little bit before it goes into weekend hibernation.

So, in tandem with S&P, Mr. Powell spoke so we don't want to hurt his feelings by not reacting to his words, BTC pushed to $26,300 from where it fell to $25,777 in 3 candles of 15 min.

Fun right? It didn't make any new high, it didn't sweep the lows, just played around with both sizes - long and short. Seems like "diamond hands" recently means do hold onto your long/short position for longer with more conviction. See you on Monday at the open of stock market, till then sleep tight BTC :)

Today is KISS AND MAKE UP DAY!

Why did the lipstick go to therapy?

Because it couldn't stop getting involved in lip-to-lip relationships and had to learn how to "kiss and make up" with itself!

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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