Weekly Update April 10th

Bitcoin and Crypto Market Updates (April 10th)

Make the chop stop.

No really, make it stop.

BTC and BTC DOM have been in a sideways choppy pattern for nearly an entire month now. While this has happened, we’ve generally seen a bleed on Alts with some exceptions.

I’m really just looking for these two charts to make a decision on the direction and the IDEAL scenario we are looking for is a drop in BTC DOM while BTC remains stable OR rises.

Attention now turns to CPI on Wednesday this week and the earnings picture with some major financials kicking off earnings this week.

When I look at the tech sector — QQQ for example I said last week the bullish structure is still being maintained and that hasn’t changed. Until we lose this zone the 330 target remains in play.

When I look at SPX I see we have an H+S pattern in play here and the almost year-long resistance zone to contend with. All eyes on how this plays out over the next few weeks.

Japan moving towards a crypto-friendly future

Japan’s Web3 project team, in collaboration with the Liberal Democratic Party, has released a white paper proposing crypto-friendly initiatives in the country. The paper suggests that Japan can take a leading role in driving global conversations around how digital assets are handled. The white paper notes that policy changes need to be made to create a Web3-friendly environment, including tax reforms, better accounting practices, and a new DAO law. Japan is also seeing a growing need to provide clarity around how DAOs can or should be structured in the country.

Apple hides Bitcoin whitepaper on Mac devices

The Bitcoin white paper has been found hidden within the system files of late-model Apple computers running macOS Catalina or later. The nine-page document, labelled as “simpledoc.pdf,” appears to showcase Satoshi Nakamoto’s vision for decentralized cash. This discovery, made on Nakamoto’s 48th birthday, was first reported by blogger Andy Baio, who stumbled upon it while trying to fix his printer. It is unclear why the document was buried in an obscure folder in macOS, but all modern versions of the OS seem to contain it.

Buenos Aires airline adopts NFT plane tickets

Buenos Aires-based Flybondi is the first airline to offer NFT versions of tickets to its customers, with the option to transfer the ticket to someone else or make a name change on the reservation. TravelX’s technology called NFTicket uses blockchain Algorand, which is said to be the largest use case of utility NFTs seen. TravelX expects other airlines to follow Flybondi’s lead by the end of the year. Flybondi CEO Mauricio Sana said the new ticket distribution method will reduce customer service costs and increase revenue, while NFTs could help airlines build loyalty. This is a significant step towards consumer empowerment and flexibility.

LayerZero raises $120M more at $3B valuation

Crypto protocol LayerZero has raised $120 million in a funding round led by a16z and Sequoia Capital, giving it a valuation of $3 billion. This tripled valuation is an outlier in the crypto space, but experts say it makes sense given LayerZero’s critical infrastructure that makes multi-chain crypto and web3 possible. There aren’t many multi-billion dollar valuations and raises currently in crypto but given Layer Zero’s infrastructure in the space, this one makes sense.

Saudi Arabia’s $620B wealth fund backs crypto VCs

Saudi Arabia’s sovereign wealth fund, Sanabil, has disclosed investments in nearly 40 US venture capital firms, including several focused on crypto, blockchain, and Web3-related investments. The fund, which commits around $2 billion annually, lists investments in Andreessen Horowitz (A16z), Polychain Capital, and Valar Ventures, among others. Sanabil has allocated 50% of its assets to venture capital, 30% to private equity, and 20% to a liquid portfolio. While it has disclosed backing crypto-friendly venture capital firms, it’s unknown whether its liquid portfolio includes digital assets.

Real-world assets

Real-world assets (RWAs) are a new class of assets that are being introduced into the cryptocurrency world. These assets are physical assets that exist in the real world and are tokenized using blockchain technology. This allows for fractional ownership and trading of these assets, making them accessible to a wider range of investors. In this article, we will explore the concept of RWAs in crypto and their potential impact on the financial industry.

What are Real World Assets (RWAs)?

Real-world assets are tangible or intangible assets that have value in the physical world. These include assets such as real estate, art, precious metals, and other commodities. In the traditional financial industry, these assets have been traded using traditional financial instruments such as stocks, bonds, and mutual funds. However, with the emergence of blockchain technology, these assets can now be tokenized and traded using cryptocurrencies.

Tokenizing RWAs involves creating a digital representation of the asset on a blockchain. This token represents a portion of the underlying asset, and its value is tied to the value of the asset. The token can be bought and sold like any other cryptocurrency, allowing investors to gain exposure to these assets without having to purchase them outright.

Benefits

One of the main benefits of RWAs in crypto is that they provide investors with access to a wider range of assets. Traditionally, investing in real estate or other physical assets required a large amount of capital, making it inaccessible to many investors. Tokenizing these assets on the blockchain allows for fractional ownership, making them accessible to investors with smaller amounts of capital.

Another benefit of RWAs in crypto is that they provide greater liquidity for these assets. Traditionally, it could take weeks or even months to sell a physical asset such as real estate. With tokenized assets, these assets can be bought and sold quickly and easily on a cryptocurrency exchange.

RWAs in crypto also provide greater transparency for investors. Since the ownership of the asset is recorded on the blockchain, investors can easily verify their ownership and the value of their holdings. This eliminates the need for intermediaries and reduces the risk of fraud and manipulation.

Potential Impact

The introduction of RWAs in crypto has the potential to disrupt the traditional financial industry. By providing investors with access to a wider range of assets and greater transparency, these assets could become a popular alternative to traditional financial instruments.

Real estate is one area where RWAs in crypto could have a significant impact. Real estate has traditionally been a difficult asset to trade due to its illiquidity and high capital requirements. Tokenizing real estate on the blockchain could provide investors with greater access to this asset class, and could even lead to the development of a secondary market for real estate tokens.

RWAs in crypto could also have an impact on the art market. Tokenizing art on the blockchain would allow for fractional ownership of these assets, making them more accessible to a wider range of investors. This could also lead to greater price transparency and liquidity in the art market.

Conclusion

Real-world assets in crypto represent a new frontier in the cryptocurrency industry. By tokenizing physical assets on the blockchain, investors can gain exposure to a wider range of assets and enjoy greater transparency and liquidity. While the impact of RWAs in crypto is still uncertain, they have the potential to disrupt traditional financial instruments and create new investment opportunities for investors.