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- Crypto Markets have been hit heavy. Don’t panic. Here are a few tips we’re using
Crypto Markets have been hit heavy. Don’t panic. Here are a few tips we’re using
Shaan Puri & Ben Levy
March 08, 2022
Good morning, this is the Milk Road. Your daily tour guide for all things crypto.
In today's edition we've got something fresh out of the oven for you - nine hand selected, great tweets and a note from the editor.
Let's dive in!
Nine great, hand-selected tweets
#1. Timing the market
A reminder to NOT try to “time” the absolute top and bottoms of the market.
Aim for the knees and shoulders & you’ll be just fine. [Read it on Twitter]
#2 - When annual Bitcoin gains have actually happened
This chart is a little hard to understand, but once you get it, it’s amazing.
Basically this shows that almost all of Bitcoin annual gains come from the top 10 trading days in the year.
The other 355 days of the year, it has traded -44% on average. [Read it on Twitter]
#3 - How to play the long game
Crypto is so volatile, people get burned out.
Nick (aka NTmoney on Twitter) was one of the 1st 5 employees at Coinbase, and now he's a full time investor.
Here’s his mindset on how to play the long game in crypto without getting burned out. [Read it on Twitter]
#4 - Finding projects where you can earn tokens
Li asked a good question.
What crypto projects allow you to earn ownership by working, rather than buying the token?
The top answers were: Rabbithole, Bankless, FWB, Krause House, and Layer 3. [Read it on Twitter]
#5 - An executive order on crypto is coming from Biden
No details are out yet, but we'll be watching closely to see what he says and how it changes the game.
No coincidence that we've seen FTX and Coinbase both publicly talk about how they comply with US laws in the past week. [Read it on Twitter]
#6 - A debate you could only see in crypto
This is a fascinating debate. Let me explain what’s going on:
Leighton has enough voting power to turn on “fees” on for Uniswap V3, one of the biggest crypto protocols.
For reference, Uniswap earned $830m in revenue in the past 6 months and all of that was paid out to liquidity providers and now Leighton wants some of that to go back to governance token holders.
There are literally hundreds of millions of dollars on the table, and it’s being discussed openly on Twitter.
This is like sitting in a live debate between Uber board members talking about whether to grow market share vs. grow revenue. [Read it on Twitter]
#7 - What happens when a founder leaves a project
Andre Cronje decided to leave Fantom (along with a bunch of other projects), and the project prices tanked ~20% immediately
People are complaining that he “rug pulled”
But a decentralized projects should not be dependent on 1 person’s involvement.
Andre leaving crypto is a reminder, not a rug pull. [Read it on Twitter]
#8 - The biggest crypto house sale in history
And it was from Scooter Braun, Justin Bieber's manager! [Read the details here]
#9 - A new project with a great viral video
I always see marketers chase the illustrious “Dollar Shave Club” video success and hardly anyone pulls it off.
But I actually thought Dank Bank got pretty close. It’s a funny video and the project looks like they're doing something cool with memes [Watch the video here]
A message from the editor 🥛
Hey - it’s Shaan. Chief milk. Mr. 2%. The big cow around here.
Crypto markets are a little fussy right now. It’s easy to get emotional when prices go up or down.
I wrote a little reminder about how to deal with down markets back in one of the first few editions of the Milk Road…but over 50K+ new readers have joined since then, so I’m going to re-type it here. Hopefully this helps you in some way.
Without further ado, here are the questions I ask myself when the price drops:
#1 - Did my belief change? Or just the price?
For example - Amazon stock dropped to $10 back in 2001 after the dot com crash. This was 10X lower than the all-time high a couple years before that.
Prices WILL go down. That’s a part of the process. But don’t sell because the price goes down. Only sell if your belief in the underlying asset has changed.
For crypto, I think we’ve created a new financial system with superior alternatives to gold, dollars, borrowing & lending, and more.
On top of that, billions of dollars are funding technical teams that are flooding into this market to build new things.
I am extremely bullish on crypto assets (whether the price of ETH is $4,000 or $2,500 that day).
#2 - Am I a tourist? Or a Local?
Tourists leave when the weather gets bad. Locals know that seasons change, and know how to live with the weather cycles.
#3 - Is it crashing? Or is everything on sale?
Our brains are silly.
When prices are going up, we wish we had bought more at lower prices.
Then the price goes down and we….do nothing. Too scared to buy.
Be fearful when others are greedy. And greedy when others are fearful.
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