🦊 Metamask Is on The SEC Ban List!

Let’s Dive Into It!

Happy Monday dear subscribers! In today’s Newsletter, Metamask is now an SEC Target!

In today’s bulletin, we are covering:

• Surfing the Market, with analysis about the Mid-Caps index and AI index
• Don’t miss the News about Bitcoin loan repayment and the SEC vs Metamask
• PROPS is under the spotlight.
• A short article about Trading: take the risk or miss the chance
• Our selection of the best Gems on X

Rough weekend with a mini dump, but well we are still in the “fair enough” ranges. The key support continues standing for most of the setups. The RSI getting fully oversold…this week will be critical to push for the bull reversal:

The AI Index is back to the main horizontal support once again after the main breakout…the $4,9 level is absolutely critical:

British Columbia Court Orders $1.2 Million Repayment in Bitcoin Loan Dispute

The Supreme Court of British Columbia has ruled that Daniel Tambosso must repay $1.2 million to Hung Nguyen for a loan of 22 Bitcoin (BTC) made in September 2021. The court’s decision emphasizes the legal recognition of cryptocurrency in financial disputes.

Daniel Tambosso ordered to repay $1.2 million to Hung Nguyen for a loan of 22 Bitcoin.

• The court ruling underscores the growing legal acceptance of cryptocurrency in financial disputes.
• The case involved a traditional legal dispute but with the modern twist of repayment in Bitcoin.
• Courts globally are increasingly supporting cryptocurrencies, as seen in recent rulings in the U.S., Dubai, and bankruptcy proceedings in favor of Bitcoin loans.
• Authorities continue to enforce strict regulations on unlicensed crypto operators to protect investors.

The judgment reflects a broader trend of courts increasingly supporting cryptocurrency-related cases, highlighting the growing acceptance of digital assets in the legal system.

SEC Targets Consensys: MetaMask Under Fire for Alleged Unregistered Securities and Broker Violations

The U.S. Securities and Exchange Commission (SEC) has sued Ethereum incubator Consensys, alleging its wallet MetaMask violated multiple laws.

Key allegations include that MetaMask’s “swaps” feature makes it an unregistered broker and that its staking service is an unregistered securities program.

• SEC claims MetaMask’s “swaps” and staking services should be registered as securities and broker services.
• Experts argue MetaMask is a non-custodial tool, challenging the SEC’s stance.
• The case raises broader issues about the regulation of decentralized applications and interfaces.

Despite the serious claims, experts argue the SEC has a weak case, noting that MetaMask operates as a non-custodial tool, not as a broker-dealer.

PROPS

Propbase is a platform for tokenized real estate investing. The project falls in the RWA narrative offering fractional ownership of properties, providing users with rental yields.

The platform supports a P2P for trading property tokens and aims to make real estate investment accessible to individuals, enterprises, and funds.

The process is completed in six steps:

1. Application & Due Diligence: Process starts with seller application and property is evaluated.
2. Incorporation: The asset is placed in a LLC backed by documentation and audited by a third party, public blockchain Propbase Registry allows verification.
3. Live Property Auction: The property auction launches on the Propbase platform for a limited period of time and available for investment.
4. Funding Target Reached: Funding target reached and the LLC transfer is complete.
5. Token Distribution: Tokenized shares of the properties underlying asset value are distributed to participants in the property auction.
6. Trading Enabled: Users can create listings and sell their tokens or earn passive daily rental income. Buyers incur zero fees and the seller fee is 1%.

The $PROPS token’s main utility feature is to facilitate processing of transactions. Those transactions can be verified on the blockchain by all parties involved.

The Propbase platform requires the user to interact with smart contracts on the Aptos blockchain with fees paid in the $PROPS tokens. The token is necessary to participate in the Propbase marketplace, registry, and transaction platform.

There are currently in circulation 30% of the total 1.2 billion tokens with a market cap of $33M. According to the vesting schedule all the tokens will be in circulation in 5 years.

The RWA sector in the crypto space has gained a lot of traction recently and with it the number of projects related to it. Propbase faces competition from multiple projects such as Edelcoin, Centrifuge, Propy, Polymath, Boson Protocol or Realio among others. The market opportunity for the tokenizing market is estimated at $16 Trillion with a potential best case scenario of $68 Trillion by 2030.

Trading: take the risk or miss the chance

There’s a quote by Peter Lynch that says, “Far more money has been lost by investors trying to anticipate corrections than lost in the corrections themselves”, and this couldn’t be more true. Join me in understanding why risk should be our friend.

By definition, an investment involves taking on risk in order to achieve a return higher than what we would get if we took no risk at all. From this, something extremely important follows: zero risk does not exist.

Even by not investing, we are taking on risk — the risk of lost opportunities and even the risk of losing purchasing power. It’s clear that the buying power of a dollar today is significantly less than that of a dollar 20 years ago. Sad but true.

And this is where risk comes into play, which, far from being our worst enemy, should be our ally. Properly quantified and controlled, it will be what allows us to grow our wealth.

Often, we look for too many confirmations of a market move before deciding to take a position, which in most cases leads us to not taking the position at all and watching the movement develop from the sidelines.

This often happens in bull markets, where those who sold early in the swing or didn’t enter at all analyze the situation with the bias that the market has already risen too much and should correct.

This implies waiting for a correction that never comes, and as time goes on, it becomes more difficult to change this stance because, hey, if it had already risen too much before, now it has risen even more!

And as Peter says in the quote that begins this article, more money has been left on the table — or in the market — than that lost by the correction we were waiting for and feared.

What I want to emphasize with all of this is that if we decide to operate in the market, whether in stocks or cryptos, we must take on risks and be adapted to live with them.

Of course, we must quantify these risks very well and adapt them to our style and capital because taking risks irresponsibly is harmful and will lead to ruin.

For this, the minimum recommendation is a 1:1 risk ratio, meaning at least the potential gain should be the same percentage as the potential loss. But this will demand us a win ratio at least of 60%. We should aim for moderate risk according to the position (this is where quantifying the risk comes in).

So, starting from a base of a 1:3 ratio, meaning 1 unit of risk for 3 units of gain, should be our minimum threshold for deciding whether it’s worth entering the position, this will demand us a 30% win rate.

From there, everyone manages it according to their tolerance, but we shouldn’t take positions with a lower ratio than that because a 1:3 ratio allows us to have more losing trades than winning ones while still being profitable.

From 10 trades:

7 losing = 7 units of loss or 70% if each trade had a stop-loss of 10%

3 winning = 9 units of gain or 90% if each trade had a profit of 30%

Therefore, quantify your risks, make friends with them, and stop missing opportunities by not taking risks!

Bonus track: A good measure of the ideal risk for you is one that allows you to sleep well.

See you next week!