Plus: Robinhood needs to ship you money IRL
GM. Right this moment’s market looks like a fruit cocktail: a bizarre combine, however we’re right here to verify it’s well worth the sip.
🥊 Dealer vs Hyperliquid.
🍋 Information drops: Robinhood will launch DoorDash for money, Binance exec spills the tea on his time in Nigeria + extra
🍍 Market taste immediately
Worry walked again into the chat, and main cryptos are slipping.
Why? Tariffs.
(What a shock… as if it hasn’t been the rationale for like a month now).
Donald Trump introduced a 25% tax on all automobiles and automobile components coming into the US.
That’s a giant deal for the reason that US imported round 8 million automobiles final yr, value about $240B – principally half of all automobiles offered within the US.
Trump says this might be nice for the American automobile business – extra jobs, extra funding…
Nonetheless, specialists are like, “uhh… yeah it will prolly backfire.” They suppose some US automobile factories might quickly shut down, automobiles might get dearer, and US buying and selling companions might get fairly mad.
And it is just the start – Trump plans to announce much more tariffs on April 2.
In truth, he is already throwing arms: Trump warned that if the EU works with Canada to do financial hurt to the US, he’ll hit each of them with even larger tariffs than he’s already deliberate.
Humorous timing right here btw, since this rant got here simply days after some analysts had began to imagine the entire tariff factor wasn’t gonna be as unhealthy as feared + uncertainty will finish.
The Kobeissi Letter by no means purchased into the calm tho’ – they have been warning that issues will prolly get even messier.
Right here’s what they imply:
Markets bought too chill now: for the previous week, there weren’t any large tariff updates, so buyers began considering the worst was over. That each one went out the window immediately with the automobile tariff announcement tho’;
The tariff uncertainty will not finish with the announcement: Barclays is warning that these tariffs might hit as much as 25 nations – they usually’re anticipated to reply with their very own taxes. So, we have got a possible commerce warfare looming;
Trump’s not attempting to keep away from ache. His concept appears to be: undergo now, win later. And with inflation nonetheless operating scorching, the Fed may simply roll with it too.
A complete lotta mess, principally.
BUT right here’s the enjoyable half (kinda): whereas inventory markets are tanking ($400+ billion misplaced in tech alone this week), Bitcoin and different cryptos have truly recovered over the previous few days.
And if tomorrow’s inflation report seems to be good, we might go even increased.
Plus, individuals on-line are feeling bullish too – Santiment says for each 1 unfavorable crypto put up, there are 18 constructive ones.
A part of this good temper comes from establishments getting concerned in Bitcoin:
GameStop is investing in Bitcoin (as we talked about yesterday);
Bitcoin ETFs are nonetheless getting inflows;
And a European Bitcoin treasury firm referred to as The Blockchain Group purchased 580 extra BTC.
So yeah, crypto’s kinda displaying power proper now, however let’s not get too comfortable. It might all change once more tomorrow on this financial system.
🥝 Memecoin harvest
Think about explaining to your accountant that your greatest win this yr got here from these:
Knowledge as of 09:00 AM EST.
Try these memecoins and many extra right here.
As soon as upon a time (which is like, now), there was Hyperliquid – a decentralized change the place you’ll be able to wager on crypto costs going up or down (these are referred to as perpetual contracts or “perps” if you happen to’re one of many cool youngsters 😎).
It was having a very good time on Earth – till someday (yesterday) its peace was disrupted by… an evil dealer.
Right here’s what went down:
First, the dealer opened an $8M quick on a memecoin referred to as JELLY – principally, he was betting its value would go down.
Then, he eliminated his margin – the cash you are supposed to depart within the commerce to show you’ll be able to cowl your losses – which principally dumped the commerce into Hyperliquid’s vault (aka HLP);
Now, HLP had no alternative however to carry the quick – preserve it open, pay curiosity, and threat getting wrecked if JELLY’s went up.
And guess what this difficult Ricky dealer did subsequent?
YUP, he began pumping JELLY – despatched its market cap from $10M to over $50M in lower than an hour.
Kachow – HLP was now down $12M on paper.
Then, a second pockets got here into the equation, opened an extended place (betting the value would go up), and made $8.2M.
Now, if JELLY had hit a market cap of $150M, the complete HLP vault might’ve been worn out.
So the Hyperliquid group had to select:
Let the protocol burn within the identify of decentralization…
or
Step in and hit the emergency button.
They picked the button.
Validators delisted JELLY, modified its value means down, and force-closed all open positions.
Everybody besides the suspicious wallets bought mechanically refunded, and what might’ve been a $12M catastrophe was a $700K revenue.
As for the dealer? He put in $7M, pulled out $6M, and nonetheless has round $1M that he’s at the moment unable to withdraw.
(And may by no means get again, relying on how Hyperliquid performs it.)
The ethical of the story:
Decentralized perps can get actually loopy – one dealer can push the entire system to its limits.
Hyperliquid reacted quick and saved the vault – however it additionally left individuals questioning:
How decentralized is “decentralized” when issues go the incorrect means?..
Now you are within the know. However take into consideration your mates – they in all probability don’t know. I’m wondering who might repair that… 😃🫵
Unfold the phrase and be the hero you realize you’re!
🍋 Information drops
📦 Robinhood’s cooking up some new options, and one in all them is money supply straight to the doorstep. Yup, like ordering a pizza.
🤨 A brand new ballot exhibits that Argentinians don’t belief President Javier Milei anymore after the LIBRA memecoin scandal. Nonetheless, his political get together – La Libertad Avanza – is holding robust heading into the following election.
📢 Crypto corporations are asking Congress to inform the DOJ to again off. They are saying the best way the DOJ is dealing with the Twister Money case is means excessive – and will put any blockchain dev vulnerable to getting charged only for constructing stuff.
⛓ Binance exec Tigran Gambaryan spilled the tea on his 8-month “keep” in Nigeria. He says the federal government principally held him hostage and used faux expenses to try to get one thing from Binance.
📝 Trump may quickly kill off a rule that may’ve made DeFi protocols report back to the IRS. The Senate already voted to eliminate it.
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