Mt. Gox sparks market fear ❗️

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📅 Today

🔍️ Market Outlook

• Overall Bias - Neutral 📈 

• Bitcoin held it’s crucial support at $67,200 yesterday. As long as we are above this level, things are good, and Bitcoin’s up-trend remains intact.

• A break of this key level will shift the bias to slightly bearish.

• $70,600 is a key resistance for BTC before aiming for new all-time-highs.

• Look for BTC dominance to be rejected from 54.2% or 54.8% to find good alt-coin trades on an intraday basis today.

Mt. Gox sparks market panic 🔍️ 

Once one of the largest defunct crypto exchanges – Mt. Gox, transferred $9.6 billion worth of Bitcoin to an unknown address yesterday, causing fear in the market leading to BTC dipping below $68k. These recent transfers mark the first significant movement of assets from Mt. Gox wallets in 5 years.

Mt. Gox is gearing up to distribute 142,000 BTC, 143,000 BCH, and 69 billion Japanese Yen to creditors, aiming to compensate for the substantial losses incurred during it’s 2014 cyber-attack. The impending deadline for distributing BTC and BCH to creditors by October 31, 2024

Established in 2010, Mt. Gox once dominated the Bitcoin exchange landscape, handling 70% of all global transactions. The exchange fell in 2014 after losing over 800,000 Bitcoin in a cyber attack, leading to its bankruptcy.Solana Redirects 100% Priority Fees to Block Producers

Solana Redirects 100% Priority Fees to Block Producers ◀️ 

Solana validators have approved a proposal to send 100% of transaction priority fees to block producers instead of burning half.

Over 77% of Solana governance participants voted in favor of this proposal.

The change aims to incentivize validators to transparently prioritize network security over potentially harmful over-the-counter deals. It could also contribute to onboarding new validators.

The proposal only applies only to priority fees - the normal 50% burn rate for regular transactions remains unchanged.

📕 Educational

Why have airdrops failed to deliver this cycle?

🔻So far in 2024, airdrop farming has failed to deliver the outsized returns many hoped for.

YTD performance of some of these tokens include :

• SAGA: -58%

• W: -56%

• PRCL: -26%

• PIXEL: -26%

• OMNI : -25%

Most airdrops have fared poorly, with a few outliers like Celestia & Sei.

Here’s why:

👉 Lack of Utility: Airdrop holders often lack incentives to hold tokens as they offer little utility beyond governance.

👉 Dilution: The surge in airdrop hunters has diluted the value of airdrops, reducing the ticket size and leading many to sell their tokens upon launch.

👉 Unattractive Valuations: Many tokens launch with high FDV without strong fundamentals, leading to quick sell-offs due to perceived overvaluation and limited upside potential.

What can projects do to improve?

👉 Prioritize Community: Avoid launching with low floats and high valuations that disproportionately benefit insiders.

👉 Focus on User Retention: Build simple, genuine products that provide real, long-term value to users.

👉 Sustainable Tokenomics: Avoid predatory tokenomics. Implement fair vesting schedules, insider allocations, and prioritize token utility to ensure long-term sustainability.

👉 Selective Airdrops: Distribute tokens to genuine users, not one-time airdrop farmers. Make the airdrop criteria more stringent to ensure only real users benefit, avoiding dilution and ensuring value accrues to the right people.

📊 Stats

📈 Chart of the day

• Rationale :

• Memes are the leading narrative off-late.

• Pepe has hit new all-time-highs and other memes are now following

• A breakout to new all-time-high for Floki could suggest that buyers are still dominating the orderbooks, leading to further upside.

• A daily close with a strong body candle & volumes can be a buy trigger for Floki.

• Since memes are very volatile, high leverage can be avoided on such tokens,

• Note : None of the content in the newsletter is financial advise. This is for educational purposes only.

🤣 Meme of the day

That concludes our update for today!

We appreciate you joining us for the latest news. Our aim is to provide insights and highlights that keep you well-informed and ready. Remember to follow us on social media for additional updates and giveaways. Happy trading, and see you next time!

Donal