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GM. This is Milk Road, you know what they say: “a newsletter a day, keeps market uncertainties away.”

Here’s what we got for you today:

• ✍️ Toxic tokenomics

• ✍️ $BTC vs other major asset classes

• 🥛 Milk Road PRO portfolio updates

• 🎙️ The Milk Road Show: Is Uptober Still On? Crypto Market Analysis & Predictions w/ Lark Davis

• 🍪 FTX creditors may recover 120% of their lost funds

TOXIC TOKENOMICS ☣️

Picture this: 

You and your 10 friends finally score a reservation at that fancy Japanese spot in town. 

As you sit at one end of the long table, watching your friends sip sake and look sharp in their suits, you think “This couldn’t get better…”

Then, at the top of the table – the sushi arrives (garnished with a vibrant green and orange salad)

…but by the time it reaches you, all that’s left is the garnish.

That’s what it can feel like being a retail investor in crypto: by the time the best opportunities reach you, the value is mostly gone.

Just look at this chart of all the altcoin listings on Binance in 2024. 🤯

It’s easy to blame the market conditions for this – but the Milk Man thinks there’s a different factor at play here:

✨ Toxic Tokenomics ✨

The most common flavor of ‘Toxic Tokenomics’ right now are “low float, high Fully Diluted Value (FDV)” projects. 

Low float: Small amount of tokens in circulation (with a ton more to be unlocked over time).
High FDV: Unnecessarily high valuations, even though the projects are relatively new.

Here’s how to test for Toxic Tokenomics:

• Incredibly high valuation at TGE (aka: Token Generation Event, aka: Launch)

• Lots of future token unlocks (which could mean lots of future sell pressure)

• Tokens that end up falling by 50%-90%

• Retail buys in thinking it’s at a 50%-90% discount

• Retail gets rekt

But this doesn’t mean that low-float, high FDV tokens are all bad…

Here’s the not-so-toxic side of these tokens:

If there is only a limited supply of tokens in circulation, a small amount of demand can cause the token to absolutely rip! 

(The math on that? Restricted supply + increased demand = number go up).

Now, here’re some actionable steps you can take to test a token’s toxicity…

1/ Ignore the red, follow the green

2/ Check the schedule

Looking to roll the dice and attempt to find a high FDV token that could experience a demand spike while its float is low?

Check its token unlock schedule first, so you don’t buy amidst a fresh injection of supply.

Following these steps should help increase your proverbial ‘sushi-to-garnish’ ratio. 💪

…or you could take the lazy option and let our army of nerds (researchers) at Milk Road PRO do all of this detective work for you – all they do is hunt for standout opportunities in crypto.

(Day in, day out).

Moral of the story? Sit in the middle of the long table - you won’t go home hangry.

$BTC VS OTHER MAJOR ASSET CLASSES ⚔️

There are only two things we hate more than falling crypto prices:

1. Matcha lattes (they taste like dirt and we will die on this hill)

2. Steve Jenkins

Who’s Steve Jenkins? 

He’s the guy that rolls into our laid-back neighborhood poker night wearing a floral shirt, dark sunglasses, and a full-on rodeo hat. 

Apart from his lack of fashion sense, Steve always (and I mean, always) goes all-in pre-flop, even with a 2-7 offsuit.  

For those of you who don’t play poker (good on you), here’s the translation:

It’s stupid. It’s so so dumb…but it somehow works (so is it really that stupid? 🤔)

Steve always ends up leaving poker night in one of two ways:

1. Tipping his dumbass rodeo hat after a big win

2. Calling a cab home 5 minutes into the night

Why are we telling you this? 

Because $BTC, like Steve Jenkins, often ends the year in one of two ways:

1. Outperforming all other asset classes by miles (8 out of the last 11 years)

2. Scraping the bottom of the barrel (the remaining 3 years)

In those 8 victorious years, $BTC has outpaced the next best-performing asset by massive margins. 🤯

(God, that’s beautiful 🥲)

But of course, past performance is not a guarantee of future results.

So, let’s check-in and see how $BTC and its rivals are doing over the past year…

Phwoar! Looks like $BTC is about to lock in another year of outperformance.

…ok, but what does this look like over a 10 year period?

Not. Even. Close.

The broader takeaway here? It’s a good time to be in crypto (and has been for the past decade).

A more personal takeaway? If this is in any way reflective of the strategy Steve’s been using at poker night – it’s time for us to quit playing poker.

(Steve, if you’re reading this: screw you and your Spirit-Halloween-discount-rack lookin’ outfit).

MILK ROAD PRO PORTFOLIO UPDATES 📊

Look! Up in the sky! It’s a bird! It’s a plane! It’s… the Milk Man sharing his latest portfolio changes.

Like clock-work, every Thursday, we’re here to share our updated list of investments from the Milk Road PRO Portfolio. 

Disclosure: We are not a day trading portfolio so don’t expect a high volume of trades. Read our “how to build a crypto portfolio in 2024” report to learn more about our portfolio strategy.

Portfolio performance 📉

The Milk Road PRO Portfolio saw a slight increase over the past 7 days. Our portfolio value is at $85.7K, up 0.81% since last week. 

Frustrated because the markets aren’t moving the way we hoped? That’s exactly what they want—to shake out the weak hands.

Portfolio changes 👀

BITE-SIZED COOKIES FOR THE ROAD 🍪

Hacken, a blockchain-focused cybersecurity company, offers a maximum of 180% APY through its DualDefense Flash Pools. These Flash Pools power the first-ever security prediction market that rewards stakers for contributing to decentralized security. *

UniswapX is Uniswap Lab’s latest protocol development that users don’t see, but makes their crypto-swapping experience significantly better. By sourcing liquidity from the wider DeFi ecosystem, users are getting better pricing – not to mention a bunch of other perks. *

FTX creditors may recover approximately 120% of their lost funds as part of a $16.5 billion repayment plan. Payments are expected within 60 days after a still-to-be-determined effective date. On we go.

Crypto.com has filed a lawsuit against the SEC after receiving a Wells notice, challenging the agency's claims. It joins a growing list of companies, including Uniswap, Robinhood, and Consensys, that have also been targeted by the SEC with Wells notices.

The U.S. Supreme Court declined to hear a case regarding the ownership of the seized Bitcoin from the Silk Road marketplace. The seized Bitcoin, which accumulates to 69,370 $BTC, is currently valued at around $4.4 billion.

Phantom Wallet is launching beta support for the Base network, expanding its multichain capabilities. Already live on Solana, Ethereum, Polygon, and Bitcoin, Phantom now adds Base to its supported networks.

* this is sponsored content, not financial advice

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.