Bitcoin price drop, should you be worried? WAXP, KOIN | The Market Report w/ Ajit Tripathi

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Hello crypto Internet friends. It is your host Benson. And we are joined again by our resident experts, Jordan Finisith and Marcel Peckman. Welcome to the market report on cointelegraph. We are super excited to have you all here today. Jordan uses his background in psychology and human behavior to spot emerging trends in crypto. Marcel Peckman applies his 17 years of experience trading derivatives options and futures to the crypto derivatives markets. Guys, what is up this week? Wild week in crypto. What is happening, Jordan? What's happening, Marcel? How are we feeling this week, guys?

I'm really curious to hear Jordan's opinion on why we reached all time highs on Bitcoin and Ethereum and we're still not hitting the top on Google searches or Main street media. We're seeing like CNBC recommending everybody to buy a Ripple or Solana or whatever. But I want to hear from Jordan.

Well, I think largely the institutions have been driving this most recent rally and like inflation is at 6.2% in the US like who's got money to spend on cryptos when like it's taking all of our money just to buy food and stuff?

Right.

Well, we'll get, we'll get into that a little bit more in the show.

Got a lot of stuff to dive into today and we want to welcome everyone from around the globe who's watching us. I'm actually coming live today from Lisbon. I was at the salon Breakpoint conference this week. Awesome time. If you were there, give us a shout out and chat. I want to know if you were also in Lisbon. I'm actually still here. So tell us where you're coming in from today and tuning in from around the globe. I know we're going to be getting into some market news this week. All time highs, Bitcoin, Ethan, then some retracements, some big pullbacks this week in the markets. We're going to be talking about that. Diving into seeing what crypto Twitter is talking about. We're going to have an expert guest on today. You don't want to miss Ajit Tripathi. He's going to be an awesome interview. And we actually have some of our markets pro community members going to be able to ask some questions. So we're going to have that lined up today and then we're going to have Jordan kind of give us a recap of the overall market sentiment, what's going to happen and what's fueling some of the current market rallies. And so today we want to hear from you guys, make sure you are getting into the chat today. Tell us your thoughts, tell us your comments. What are your thoughts about what's going on with bitcoin and eat this week. We want to hear from you and if you haven't liked and subscribed, go ahead and do so now. We are Cointelegraph on YouTube. We're here Thursdays, 12pm Eastern. We love having you here. So let's go ahead and kick things off today with our markets news segment. All right, folks, we are going to go right into crypto Twitter and let's kind of see what is happening out in the crypto Twitter space. So I'm going to go ahead and pull up little tweets of the week this week. Bitcoin is now more valuable than Tesla, Facebook and is the sixth largest asset in the world by market cap. Next stop is Amazon. What do you guys think? Is bitcoin going to surpass Amazon anytime soon?

Soon. Eventually it will soon. That's a matter of how this bull market keeps going. What do you think, Marcel?

I think it's destined to fight gold for the 10 trillion strong, but I don't see it happening over the next three or four months.

Oh, touche. I see it happening before the end of the year once we had this market rally. Let's see it. Let's do it. I want to see it surpass Amazon. Get rid of Bezos. Bitcoin's coming for you, buddy. All right, let's tune in for our next crypto Twitter tweet. This is from Coin Telegraph. Did you take crypto cards here? That's what crypto enthusiasts in Asia Pacific region are saying because MasterCard is unveiling crypto link payment cards. Are you guys bullish on crypto payments? What do you guys think about these crypto payment cards going around?

I don't, I don't call that adoption. The cryptocurrencies were made to to work by themselves as a payment system. A store can offer us. Someone can offer their service and charge Ethereum or Bitcoin or wherever and the buyer on the other side simply needs to transfer the coins. I don't see how MasterCard or Visa or the ATMs are helping adoption. It's the other way around.

Oh, I'm gonna have to agree disagree with you on that one, Marcel. Like I get like, we're the, we're the type that have read the bitcoin white paper. We're like, yes, person to person money, but like there's a reason that 50 to 70% of the population ain't in here yet. And they're not gonna come if they gotta go get a new wallet, memorize 12 weird random words and all this stuff. No, they are used to using their card. Let me pull out my card and swipe it. They pull up my card and swipe it. Wait, you. So I can do that with my bitcoin now. I could get bitcoin put on my card and pull it out and swipe it. That's. It's the middle ground. The. The only way that they're going to cross that most of these people are going to cross that bridge is if they can use it in their. Their way that they're used to using money that.

That's fake. That's fake because some gateway or payment later are gonna sell your Bitcoin or Ethereum or Solana, get US dollars and use this US dollars to pay Visa, MasterCard or the seller or whatever. So it's fake adoption. I don't see why people would leave the actual Fiat system because of that, because there's no benefit for them.

It's called inflation, Marcel. Inflation.

Oh, oh, don't bring that up.

These dollars.

And then everything I buy goes up where I can hold this bitcoin and everything I buy goes up, but the bitcoin goes up more. That's like, that's. That's just a simple premise of what might actually attract them. And so, so they're holding it on their MasterCard again. Most people won't want to hold cryptos in their own possession. Even a lot of people that are in it now and got a lot of cryptos, like, oh, crap, I want to put some of this in a bank because, man, stuff happens. And I know that's like, sacrilegious and all, but that's just the way the world works.

Yes, I, I'm gonna kind of like, settle in the middle here. I think the, the, you know, the whole card stuff, I'm not a big fan of spending my crypto, especially bitcoin or eth. Like, I, I just don't think it's. It's. It's like, good for me personally. I want to spend Fiat, if I even have any of that, because I'm all crypto. I don't want the Fiat. Cash is trash. Folks, wake up quick. I want to take a quick second here. Shout out to the crowd. We got people tuning in from Indonesia today. Florida. We got people in Georgia. Kaloro. Love to see it. Thanks for tuning in today. We got Mamiro. We got Joe in from Indonesia. Love Having you here on the show. Thanks for tuning in. Tell us what you think. Are these, these cards, you know, is it a gateway, is it a segue between the traditional system and crypto? Tell us your thoughts, Let us know what you think. We want to hear from you in chat. I want to kind of move to a couple other tweets. I saw. Bitcoin has crashed to price prices seen. Nonsense. Last week I thought this was kind of funny for pomp. Again, we touched 69,000 earlier this week for bitcoin. Huge week. And then we saw massive retracement. Another big headline that we saw this week was Elon Musk now has over 1 billion in cash after dumping the Tesla shares. We're going to dive into this a little bit later. Which cryptocurrency should he buy himself? The first ever trillionaire. What do you think Elon's going to do? We have an article we'll talk about here in just a second, but we want to hear from the chat. What do you think Elon's gonna do? Is he gonna buy bitcoin? Is he gonna get Ethereum? Let's find out. I want to hear from the chat today. Let's see what, let's see what you think Elon's gonna do. So let's get into our first out article this week. This is bitcoin price briefly at 69k all time high before plummeting back to earth. So I want to kind of read a quick excerpt. So interestingly, the breakout was initiated right as a report from the United States Bureau of Labor Statistics showed a sharp 6.2 annual rise in consumer price index, a figure that has hit its highest mark in. So guys, what happened this week? Why did we absolutely surge to 69k and then kind of take this slide back? Is this consolidation? Is this normal for the market right now? How are you feeling about this situation, Marcel?

First of all, I think it's normal. Bitcoin and cryptocurrencies are volatile. We've seen that in the past. Even if you retest down to 52 or $55,000, I don't think that's going to be harmful for the medium to long term. Of course, there are people who bought at the top. They're going to be angry. They could be selling if it dips over 15%. That's normal on every market. And crypto is a volatile market. As for inflation, I don't think that right now that's what's driving people to buy bitcoin because it moved from 3% to 4 to 6%. It's not the biggest issue right now yet. It's going to be in the future. But I don't see inflation as the main driver. What do, what do you say, Jordan?

I don't think inflation is currently driving the price of bitcoin because a lot of people don't really have the money to spend on it necessarily. But I think over the long term people are going to start realizing what's happening. Like, yeah, this is a normal thing. If, if anybody goes back and looks at what happens with bitcoin or any of these cryptos get, when they start getting into uncharted territories after they get past their old all time high, it gets like super volatile. Nobody knows what the chart charterists are like, man, what's going to happen? I don't know. So everybody says, guessing you get a 6.2% print, price starts shooting up. You get like rumors that Evergrande defaulted on the bonds. Everyone's like, oh crap, get out of the market. It's just like, oh man. This is so driven by the like headlines. It's like, ah, I just, the price goes, goes, go sideways for a long time and nothing happens. So they're like, headline, headline, headline. We gotta have action. And all of a sudden like it shoots up and bitcoin will be like $90,000 and every like, oh, I should buy some. And that's when we'll be looking to get out, right? Because that, yeah, that's when they'll be searching for it. When Bitcoin hits 90,000 and it's been parabolic, people like, how can I buy bitcoin? How can I buy bitcoin? Just like they did that in 2017. And that's when the people that have been in for a while will, will be rewarded for their patience.

And hey guys, reminder, in all previous bull runs, there has been 2030 pullbacks in intraday trading. Like this is very, very normal. Welcome to crypto. It's very volatile. We saw the all time high could be speaking, you know, and I think anytime we're going to get to any of those asset all time highs, you're going to see these dips and then these dips kind of hit this floor. And we're going to kind of pull up some charts. I want to pull up bitcoin chart for us all real quick. Danil, if you wouldn't mind. Actually, I can go ahead and do that for us here. Oh, let's see here. All right, so we are now currently in this ascending wedge Here. And this actually broke through the previous wedge that had drawn and now we kind of saw it touch the top of this wedge and kind of come back. So I think potentially this thing could range. I don't know if we'll drop all the way down to like the 50s, but we could see a couple of ranges. And then as it approaches the end of this wedge, you know, that's when we could start to see another all time high. What I thought was interesting though about this chart in particular, this, this line Here is the 200 day moving average and it's kind of flatlined. And so this is kind of the, this is where like you don't know, really know what's going to happen. We could see some more consolidation. I'm optimistic and bullish that by some point before the end of the year, if things are going to play out like previous cycles, we could see the 100k, we could see the six figure Bitcoin and something's going to happen, I think to propel that forward. Maybe more ETFs, maybe inflation gets worse and people are kind of looking for the lifeboat. Who knows what's going to happen. But right now you can kind of see we had a great week. And then a little bit of a retracement. These VWAP levels here, it is very much above the VWAP level, which you love to see. And so that's kind of the bitcoin chart. I'm going to pull up the ETH chart. Very good week for ETH also in this ascending wedge. I love this right here, this 200 day average. It is like going almost at a 45 degree angle. This thing has just been rocketing, rolling since the beginning of October. ETH looks to continue to its momentum. Absolutely love this chart. I'm going to dive into Seoul real quick as well and then we'll kind of get into our next article here. Seoul has just been on an absolute rocket ship ride. These are hovering over these yellow V waps here. And again, this ascending wedge, love to see it. And this, this moving average here, it's going up at an angle. That means. And that tells me that the market for Seoul right now is carrying that momentum up. We could see some consolidation back down to 200 and then we kind of work our way back up to break this previous high of this week. So super, super excited for the markets right now and I think there's gonna be a lot of excitement heading towards the end of the year. The next article that I want us to kind of get into is we touched on this a little bit earlier. Is the inflation record high inflation? This has been reported since 1991, I believe was, is, was last time this kind of inflation was reported. Guys, what are your thoughts? Is, is this a good thing for cryptocurrency and a bad thing for the traditional system? Are the wheels absolutely going to fall off the bus? Jordan, what's your take on what' happening right now with inflation?

Like, to me, this is been baked into the cake for a while now. I saw this coming. I don't like the, the whole lockdown and supply chain issues have been a problem. But like we've been on this upward trajectory of printing money for decades now and it's just not going to stop. Yeah, they, they use the transitory narrative, like that's the way they can kind of control how things are going. They talk about it in the news. They'll kind of placate people by giving them things like this is transitory, but it's really starting to slip. Like it's ain't so transitory, man. And people are starting to be like, I thought this was gonna go away. So yeah, like, I think it's good for crypto in the long term that people are starting to see that the value of their fiat currencies are losing money. But again, once when a bit, one bitcoin is worth a hundred thousand dollars, it's like you can only like a hundred thousand dollars is worth one bitcoin. That's telling you something about the currency is that, yeah, you're rich, but the value of that money isn't as, as high. So like it's, it's a tricky game and people don't think about all the different nuances that are involved with it. I don't know. What do you think, Marcel?

I don't think inflation is a big problem even if you reach 15. Because if people are getting paid more, if there are more jobs out there, then it compensates for the other. The problem is when the suppliers have to increase prices because of higher resources and stuff and freight costs from China and when they raise price and the population say, well, I'm not going to buy this out of this car for $25,000. If, if it was $17,000 two months ago, then the automobile productor goes bankrupt. It's what we're, we're seeing in China right now with real estate sector. That's dangerous even.

Yeah, that's like the, the, the thing is there might actually be deflation that comes out of this. Like Marcel's saying prices go up so much that people are like, man, I ain't paying that. And so people kind of shut down and go into savings mode. And that's just. They don't just jump out of that real willy nilly. So they start. Start saving. Producers have to start reducing the price of things that they're trying to sell and then deflationary. That can be just as bad as in, or worse than inflation, depending on how you're looking at it. So this is a tricky game and there ain't no easy answers when it comes to, like, what to do with your money in the next 10 years, folks.

True. So. All right, so real quick, I want to touch on this topic because this has been like a trending headline, Transitory inflation. Where is this narrative coming from? Obviously, the Fed has been saying this for months now. What does that even mean? Why are they. They kind of feeding us this BS and just saying it's transitory? Apparently it's not, because it keeps happening month after month after month. Marcel, what is your take, if you wouldn't mind kind of explaining this? Transitory inflation?

Benton, Even if the inflation goes away in two months, once the price increases 6, 10, 20%, it's not going down afterwards unless there's no demand for it. And that's the worst thing that could happen for a producer to have supply stock and don't have demand. So there's nothing transitory about inflation because once the price goes up, it never goes down.

Very good. I. I'm going to shift. I know we talked about this in the intro here. Elon Musk just liquidated 1.1 billion worth of Tesla shares. Let's pull this article up from Cointelegraph real quick. And then we're going to kind of shift things over. I want to know what, what do you think Elon should do with his $1.1 billion of stock that he just sold? What are we thinking, guys? If you were Elon, what do you think? What do you think he's gonna do?

Sheba and Doge?

You think he's just gonna pump Shiva and Doge with that, that cash?

No, that'd be fun.

Community, let's hear from you guys. Like, what do you think Elon's gonna do? You think he's really. Is he gonna get all into bitcoin? He's gonna allocate some of that? What do you think? If you had $1 billion in your pocket, what cryptos are you putting your cash into more? So what do you, what do you.

Think, man, I think he's gonna try to experiment some social thing like to solve the hunger in Africa or to solve the energy crisis in some country. He's gonna do some social stuff.

All right, fair enough. So we are super excited to have our guest on for today. So let's go ahead and bring him on today. Make sure you ask your questions and comments in our chat. If you haven't liked and subscribed comment, go ahead and do so. It's Cointelegraph on YouTube. Let's go ahead and bring on our guest for today. All right, we are super excited to have Ait Tripathi here. He is the head of institutional business at a the world's leading defi liquidity protocol. He has a proven track record of delivering solutions for business development, partnerships and delivery outcomes for crypto and fintech firms well known in the UK and EU Fintech ecosystem for thought leadership and advanced analytics, blockchain technology and digital assets. How are you today? Ajit? Thank you for joining us.

Hi, good afternoon. Thank you for inviting us. Yeah, it's been a very exciting conference season. You know, I was in Lisbon for the better part of the last four weeks. So Solana, there's just so much Cosmos, Ethereum, there's just so much excitement in all of the different layer one ecosystems and being a cross chain protocol. We are really excited about all of the progress that's being made across web3. Even now aave3 is coming arc the permissioned aave pool should be, I think fireblocks are working on it. So that should be launched in the next couple of weeks, subject to governance approval, of course. And there is a lot of innovations. Danny has been talking about social media. So the AAVE ecosystem, you know, continues to innovate at a breakneck speed and it's shipping season for, for the AAVE community. So really excited and also very, you know, a little bit exhausted from the, from meeting so many friends in the crypto community over the last few weeks.

Yes, it is the season for conferences, but I do want to kind of dive in today. You've been a part of this industry since no one wanted to talk about bitcoin and crypto and now everyone wants to talk about it. Like what in your opinion was the turning point from where you said, yeah.

So, you know, back in 2015, I think Blightmasters and a few other folks were essentially going around Wall street saying this technology will change everything. And that led to a lot of excitement among banks at the time. So, you know, ubs, Credit Suisse, Goldman, Barclays, all of the folks that I speak to now were getting excited about the tech, but weren't necessarily willing to interact with the actual substance of the tech, which is the crypto, the tokens, the web3 aspect of it. So I think it was still a good opportunity to. And Even back at PwC, I think some of the partners would ask, isn't Bitcoin just something that money launderers use? So you couldn't really have a, you know, a sensible conversation with anyone in the financial industry about crypto. But there was a lot of interest in blockchain technology, right? So there was just this whole enterprise blockchain, all right, let's just skip the money part of this. But, you know, use the tech without any tokens and so on so forth. So there was a lot of interest. And I think, you know, I was involved in a lot of different. Some of the biggest projects in the space, we trade, Comgo, nasdaq, Link, meft, Coin. There was a lot of, lot of stuff going on in a, In a bit of a sanitized environment. So, you know, five years later, obviously the picture has completely changed and all of that has changed, you know, in a. In, in the last two years, if you will, as Defi has accelerated. You know, PayPal and Square came in and showed some revenue. So, and, you know, revolut. So I think with, you know, you can talk to financial institutions all day, but once they see, you know, PayPal, Square and so on, actually Coinbase starting to generate revenue. But it's a completely different story, right Then, Then some of the conversations are no longer required and people really want to find the opportunity to create value for their shareholders. So, so we are in a. We are in an extremely favorable, favorable environment in this industry right now. There is just, you know, every single day we get a lot of inbound queries about how DeFi works on LinkedIn, email, you know, Stanley, myself, Nicolo, the rest of the team, we're getting inbound queries from, you name it, right? I mean, some of the biggest investment banks, mutual funds, asset managers, hedge funds, family offices, you name it. So it's just an. You don't actually have to go out there and talk to anyone. I mean, it's just so much is unbound. The interest in Defi is incredible. The AAVE community has done an extraordinary job of, I think, building a secure, robust protocol. So we get a lot of queries. I mean, this is the opposite of where we were in 2015, right? It's just an extraordinary moment for what.

We'Re building, it seems like this increased attention has also kind of caught the eye of the government and stuff. And we're hearing a lot more about regulations and stuff. How do you think regulations is going to affect DEFI as we move forward?

Yeah, so I mean, you can't get to 3 trillion and have no attention from, you know, policy institutions and governments. And I think some of that is required as well. You know, there are 13,000 plus coins out there and I think none of us can say that, say with a straight face that, that all of those are actually innovative or, you know, genuinely provide value to consumers or otherwise. So, you know, so I think there is, there is need for, you know, some rule making. Some, some. The industry needs to grow. I mean, it cannot be a free for all. Right. I think it's unreasonable to expect that the industry will mature and it'll continue to scale from a small number of users to 7 billion people around the world and there will be no rules. Right. It's just not reasonable. So I think the challenge is regulators are not necessarily involved in the innovation part of the ecosystem. Right. So the news they're getting is always about Shiba, Inu and Dogecoin and all sorts of adverse incidents, if you will, scams and whatnot. They're not really getting the full picture of the innovation that's going on in Web three and in decentralized social media, in decentralized finance. So I think it's important that, you know, people who create rules are actually engaged and they're coming to the, the developer conferences. They are in the discords and they're part of the daos where all of the innovation is happening. And it's. So one of the things that we invest a lot of time and effort in is education. Right. So because someone has to tell the, you know, tell the, tell the positive stories too, right? I mean, because the traditional financial media, whether it's Financial Times or others, they love to publish negative stories. And that's what, you know, a lot of the policy folks are reading. So it's really important that the rest of the industry actually takes a very constructive approach to education. And that's kind of where, you know, we're investing an extraordinary amount of time and effort. So, and hopefully, you know, we can work constructively through industry bodies like the Blockchain association, you know, DeFi Education Fund and others to have a much more substantive dialogue. I mean, crypto industry historically also hasn't had a bit of a teenage response to which is there should be no rules. We cannot get the 3 trillion or 30 trillion and have no rules. I think we just need rules that make sense. We cannot have rules that were created in 1934 or in the 1920s or 40s applied to technology. That's completely different. So I think it's time to change the dialogue and have a grown up conversation. And we are trying to lead that along with some of the other protocols in the space.

Agree.

Ajit, I'm not a defy expert and I assume that most of our viewers are not as well. So can you explain in some lame terms what differentiates AVI from the competition on the DEFI segment?

Yeah, so we don't, you know, this industry so early, we don't think of competition, you know, we think of just creating technology and products that people want to use. But I mean in terms of what makes AAVE what it is, I think it's the community, it's the level of decentralization. I think something I'm very proud of what we've done over the last year or so is how decentralized we have become as a protocol. Right. And what does that mean? So that means that. So last September, August, Stani and the AAVE team gave up control of any keys and we have never had any control of any keys like admin keys or so on since then. All the decisions in the protocol are now made by governance, the aave token holders, 100 to 200,000 odd token holders around the world. And they are made transparently in an open environment with a lot of discussion and debate. Anyone can actually work for AAVE and all they have to do is contribute. I mean they can apply for a grant through the AAVE grantstao all of the, any ecosystem growth development is done by the Grantstown. There is a risk style for making risk parameter related asset listing decisions. So all of the aspects of the protocol have been decentralized. And I think that's something I'm truly proud of. Now the question is how do you do that while sustaining the pace of innovation? And there is place in a decentralized environment for leadership, for quality ideas, for setting the tone, for having the right values. So I think that's something Stani and others in the ecosystem have achieved really well. But you know, we have, we have stood, we have been very aggressively decentralizing and I think that's, that's worked really well for us.

Good. And so I, I do want to take note here. So we have a community here for markets pro that was able to kind of chalk up Some questions for us to ask you, so I want to dive into those. So if you're a member of Markets Pro you get some of these perks. You get to ask some of our guests special questions. So one of our members from Markets Pro wants to know, with more and more banks becoming interested in crypto, do you have strategies for integrating institutional liquidity and what does that look like at al?

Yeah, so I mean one of the things we are looking, there is a bigger picture out there, right? So we're looking at something much bigger than that. So we think that, you know, what we're building is Web3 Infrastructure. So if you look at FinTech, right, FinTech has built really nice front ends, they built great user experiences. But what fintech hasn't done is change the Rails, right? So it's just nice mobile apps on, I mean on 20 year old technology and brittle Rails credit card, Rails and so on, so forth. So what we're doing is we are as a DEFI community we are starting to build the back end of fintech and the distribution of DEFI will still be done by FinTechs and to some extent banks, maybe asset managers. You know, we've got to 15 million users according to consensus and their metamask report, but now we have to, I mean that's a very small fraction of where we need to be with 7 billion people on the, on the planet, 8 billion apparently. So, you know, so that distribution needs to come from centralized entities, right? So but we're building the back end, the infrastructure and the Rails for that system. Now if somebody wants to connect to AAVEI directly in a permissionless environment, they can do that. But if users are not able to do that, then we're launching. So Fireblocks are currently working on the AAVE ARC proposal and that will essentially allow fintechs that need a KYC environment to connect to an AAVE pool and build their own products on top of that ARC market, right? So I think that leads to, and then other protocols will come into that ecosystem, whether it's maker, potentially balancer, I mean who knows, Uniswap, who knows, right? I mean Nexus and so on, so forth. And then what innovators in the fintech ecosystem will do is they will take all of these pieces of infrastructure and create products that then they can offer to their customers, right? So the Defi Rails will be distributed by, by a lot of different centralized and decentralized entities. And I think that's, that's, that's a really exciting year of the future.

Thanks could you explain a little bit about the risks involved with AAVE and how to interpret the risk rating maybe in a simple.

Yeah, so I mean it's, it's still a very young technology, right? So if you look at all of the blockchains, I mean ethereum is barely five years old. Swift is what, 40 years old. So credit card Rails are at least, you know, 30, 40 years old. So we are looking at a very young tech, you know, and, and a lot of practices and behaviors in the, in the defi community are still evolving. The tool set has matured a lot, a long way, right. I think now we have really good wallets, we have hard hat environments, we have developer apps, DAP tools like tenderly and so on, so forth. So things have come a long way from where they were in 2015 and 16. But there is still some technology risk in defi protocols, right. So that leads to certain exploits, attacks and so on, so forth. Now with aave, what we have done is we have, the community has invested quite a lot in audits, right. So there are five different audit, some of the leading audit smart contract auditors that are always auditing the protocol on a regular basis. Then there is formal verification in there. Gauntlet have done an extraordinary amount of stress testing. You know, there is, it's, it an AAVE exists in a very adversarial environment. So you know, if there is a weakness, it will be found and you know, like an incident two weeks ago. So I think we've built something that's now very secure and robust, but at the same time it's still very young technology and most of some of the risks are essentially technology related and defi across the board.

Okay, we still have one question from Discord. So again, I'm not an expert on defi, but I'm gonna read it. So what grant recipient projects are you most excited about? Navi.

Yeah, so I, I, you know, we love them all. So I, I don't want to.

Play.

Favorites and I, I would, I would answer a different question that you didn't ask, right. Which is what would I like to see and what would we like to see as a team? I think, you know, what we would like to see is that is a scenario where let's say the future iterations of the protocol are done instead of, let's say 40% by the core team, by the genesis team, 95% of the, and eventually everything should be done by community. Right. I think that's where we want to get to. So we are seeing some really interesting ideas around using NFTs in AAVE as collateral. We are seeing some gelato have done some really good work across, you know, in terms of building bots across different protocols to identify and exploit opportunities for preventing liquidations. I think we, so you know, people who are building Core Web 3 infrastructure, they're starting to enhance the security, the utility and the user experience of the AAVE protocol. I'm not going to name any specific projects because that sounds a little bit preferential, but what I would personally like to see is when all of the protocol, the future iterations are built by community and I think then we have really made it definitely.

Well, we appreciate you sharing your insights today and joining us on the show. Ajit. This is Ajit Tripathy. He is the head of institutional business at aave. This was awesome to kind of pick your brain and kind of see what's going on, especially inside of the D5 ecosystem. Thanks for joining us. We'd love to have you on again.

Thank you so much. It's been a pleasure.

Excellent. All right folks, we got some, we got some coin movers this week for the Markets Pro segment. Super excited to kind of jump into this this week. So let's get this party party started with Markets Pro. Yeah, it's Markets Pro time, folks. Have you heard of Wax Token? Because if you haven't now you have. Newsquake service. Ever heard of that? It's an automated alert that instantly notifies users when market moving events happen. This week the newsquake. Did you get this one on your phone? Gate IO announced the opening of Liquidity mining pairs for Wax P USD and Wax P ETH on that day. So Danilo, let's go ahead and pull up the chart here. We see that bottom circle. That's a newsquake. You love to see those. And what happens when news quakes come around? You see the price action. That price action is parabolic. That is an Elon musk rocket ship straight to the stratosphere. Wax shot up 49 cents in 5 hours. Price rose 57 cents which was a 16 increase. Absolutely stunning. Great to see that. We're going to move into our next coin that we watch this week and you still want want to keep your eyes on this one because for this coin, COINOS in particular, it was able to catch the Richter scale on our Vortex score. So if you don't know the Vortex score, it's comparison between current market and social conditions and those in the past. So this week's top price mover was Coinos, which added 265%, folks. That's right, you heard it here. And the massive gains, they came after the Asset Flash and ultra high Vortex score. So we see Vortex score first circle all the way on the left of the screen. White line price action completely skyrocketed. Absolutely huge. The asset score touched 90, which is an awesome Vortex score. And several hours later after its debut, the price shot up all the way up to $0.86 and it started at $0.22. That's massive. So coins Vortex score still remains pretty high, suggesting that there could be even more movement to this spectacular rally. You may not want to miss this one. If you haven't tried out Markets Pro, you should because that's the access that you get. And also by the way, you get to ask our guests special questions. You get to send them in and we'll help ask them in the community. So get special perks for being a part of the Markets Pro program. I know Jordan's got some awesome stuff today. We got tons of questions to ask them. So let's kind of pivot right into Jordan's expert segment. Let's go.

All right, so we hear a lot about the four year cycle in bitcoin. You know, it's going to be a four year, we're going to have a bear market, bull market run, four year cycle and crash back down. That's kind of been the way that the whole market has moved over since it started originally. But I'm, I'm wondering if that's going to start changing, if we might get a little bit longer cycles here. Just because the, the asset class has been more established, we're having a lot more institutions come in and put money into it. And as the, the, the value of the whole market cap rises, I think the volatility might decrease and stuff. And so we're gonna get longer cycles just because the asset is maturing as a whole. And like, so we're seeing a similar move. Like the current market structure looks similar to what happened in 2013, 2014 with a double top in 2017. We had a nice pump coming into December. But I'm wondering if, if that's going to happen this time around and if we might actually extend this bull run into 2022 as just we got things like ETFs coming out, El Salvador is accepting bitcoin and stuff like that. I'm just wondering like, do you guys think that we're headed to a longer Michael's market cycle here or are we gonna have like a blow off top here in December? And fall back down because I'm feeling like it's going to extend.

I, I don't see that resemble to the 2017 tops, specifically not talking about price, but market sentiment as a whole. Because I remember clearly that on the second half of 2017, CNBC was recommending everybody to buy Ripple at $3 and everybody was discussing cryptocurrencies and Google searches hit the top. And we are not seeing that now. So I'm not feeling that we're repeating the 2017 cycle.

Well, that might be just my point. Maybe it's going to extend. Like you're not seeing what we saw as we came into the end of that cycle last time. It's kind of dragging out some more. Like there's a lot of other headlines we've been hearing. Shiba Inu, Dogecoin, all these new NFTs. And that's another thing. Go. Do you have something to say, Benson, or you.

Well, I was, I was going to say for our audience, like, I, I want to, I want to hear what they think too. Like, do they feel like this bull run is going to be the same as 2017, 2013? So going to ask that to you all watching today. I want to hear your thoughts. So just real quick, want to chime in with that to, to ask our audience. Give us your thoughts. Let's see. Kaltoro. Yep, exactly. With Marcel on this one. Thanks for chiming in, Kal Toro. Love to see it continue. Jordan, go ahead.

So wait, so you're saying, do you think that it's gonna kind of peter out after this, Marcel, or have we not even really hit that part? Because I think that that what you're describing will come. It just hasn't come yet. So. Which means that we might actually be extending this chat this, this whole cycle because we haven't got the retail FOMO yet. And I don't think that that's not like we're gonna have a blow like the market's gonna go back into bear without that retail fomo because then it just kind of let down. I don't know.

So I, I mean this, I, this feels. I, I wasn't in crypto in 2017, but this seems different from all the homework and research that I've learned. Is it? There's a lot more institutions this go around, which I think could ultimately be a good thing or a bad thing. Because, you know, you hear a lot of these companies that have bitcoin on their balance sheet may have to rebalance their portfolios or, or their balance sheet at the end of the year for tax purposes. So we could see, you know, a big market correction heading into tax season at the end of this year to kind of reallocate, reposition some things. So it's going to be interesting. But I do think it's different because institutions are here.

I have heard some chatter that they're going to kind of restructure the whole tax scheme, like starting January 1st. And so we might get this big old pump going into December because people are trying to get their last cash out before the regulation really comes down and they start taking taxes and stuff like that. That's one rumor out there which could kind of lead to that. But again, I, whoever said the Quinton Forest FOMO has not happened yet at all and that we're not going to have the end of this cycle until FOMO does happen. And I, that's my opinion. What do you guys think?

Yeah, I don't see, I don't see FOMO in any perspective. Yeah, Dodge, Coin and Sheba, some of the altcoins skyrocketed. But that's, this always happens when bitcoin stagnates for a little bit. It, it forms the top and goes down, altcoins go up. But we're not seeing a FOMO on a crypto as a whole. What do you say, Benton?

So, I, I think so. I want to, I want to pivot to Quentin's like, comment real quick. So institutions are buying in private and flooding the market. I, I do want to caution everyone, like the mainstream media, I, I, you hear, you see like the big banks starting to kind of think about crypto and start to get involved. It's like, I, I also feel like there's narratives that sometimes the mainstream media push because they're having their strings pulled from some of these big influencers or, or special interest groups, if you will. And you know that that could also affect the markets and so they could be trying to get in at lower prices because they know this retail FOMO is coming. And so I think it's going to happen by the end of the year and it's going to, it's going to be a matter of time.

So like a lot of what we're talking about kind of goes back to my original premise. Like, we're not to that stage yet. Like technically we should already be headed up if we're going to do the four year cycle. So what I'm saying, like, are we headed for longer micro cycles? Here is like, and again, we, it's been a lot are dependent upon the bitcoin having cycle. And I'm kind of getting to the point where it halves again. There's so little actual bitcoins being produced that they're not going to have as big of an influence. That cut in half is not going to have as big of an influence as it had in the past. Just because so many of the circulating supply is already out there, that we're going to kind of move into a different phase of the whole market developmental cycle and get longer cycles. And it could also be just issues with COVID lockdowns, all these different things that have maybe extended this current cycle. But I think it's going to be a trend that extends in the future, and they're going to go from five years to even longer as the whole asset class develops.

So. So, Jordan, how much. I know we kind of talked about this earlier. Like, how much do you think is playing into this cycle? The inflation and the quantitative easing, the. The money printing? Do you think that's fueling this rally and that, and that's what could potentially extend things further than maybe the other cycles?

Yeah, it kind of like it was back, what, March 2020, market tanked because of COVID And then they started like, stimulus, stimulus. And like here, that was like literally $6,000. It was $6,000 in March 2020. And here we are 10 Bitcoin did a 10X. Like, yeah, inflation is having something to do with it.

And I saw something today. If you put your stimulus check into Bitcoin, a 1200 stimulus check, it is now worth $12,000. That's crazy to think about.

We had a President Biden today saying that if people think that inflation is a problem, they should let him print more money so he can solve the supply and logistics issues. That's. That's crazy. He's living in the metaverse himself.

Okay, like, the fact that they've printed, what is it, 25 of the. The circulating supply of US dollars, they've printed it in the last, like, two years. The whole. So they started in what, 90%? Yeah, yeah. So that. Thank you for like, yes. That's ridiculous. Like, and now they're like, let's. Let's drop a $1.75 trillion bill. Let's do another 2 trillion. It's like, man, this isn't going to stop. But I don't see when people are going to wake up and realize they're not going to stop doing this. Maybe we shouldn't hold dollars.

So is. Is that infrastructure bill that, that got passed in the house and sent here in the States. Is that going to fuel crypto? Is that a good thing for crypto? What are your thoughts on that?

I think it's just going to push more people to be like, man, I ain't holding these dollars in my bank.

That's.

That's ridiculous. What do you think?

Let us know your thoughts. People watching today, what are your thoughts? Is that going to fuel fuel rallies? Do you. Or what are your thoughts about the institutional or the infrastructure bill? Marcel. Sorry, go ahead.

I think it's the tale about the. The frog in the. In the hot water, the hot pan water. If the water goes hotter a little bit. A little bit? A little bit. It's gonna kill the frog. He's not gonna perceive that he's been getting killed.

You know, I need to. I need to verify this, but I was reading somewhere that, like, even that original frog study wasn't true. They had to, like, they had to mess with the frog's brains. Like, they had to, like, cut something out so that they wouldn't jump out of the water. Like, they had a mess with their minds first to keep the frogs to stay in the water. And then they did. So it's like, I don't know. Like, again, I do. I, I. My background, especially as a behaviorist, the father of behaviorism, taught two students, and one of them went off to do propaganda, and the other one went off into the military. So let's just pay attention to where, like, how we're getting our information from folks and realize they don't always have pure motives when they're giving us headlines and stuff. So we need to kind of do deep, deeper research on our own from both sides of all situations and kind of come to our own conclusion things, because we're heading to a world where you're gonna have to take more responsibility for yourself and your life because, like, the government ain't going to be doing it because they're. They can only print money and that runs out eventually or that that ability loses its value soon shut it down.

Nobody's gonna top this conclusion. That was.

I love it. I think that's a great ending point, Kaltura. Great. We're more dumb than frogs now. All right, we do have a couple. We have a question that came in from Twitter earlier this week. So if you have any questions, we're going to open the floor. Make sure you. You type them in the chat. One question was they wanted to know from Bitcoin Horus. He wanted to know more about shiboshis. The official NFTs on Shiba Inu. What do you guys know about these NFTs that are launching on on the Sheba chain? Is this the, the potential next rally for Sheba? I know Jordan's into the meme coins and knows a lot about what's going on in the ecosystems. What can you tell us and what can you tell the viewers at home today about these Shiboshi NFTs?

If I recall correctly, they've already all been minted and they might be for sale. I might be incorrect on that, but that's what I think. And to me that's just showing you, like, if we're going on the mean theme, Dogecoin was like meme 1.0. Sheba's kind of showing you what meme 2.0 is. She but has got Shiba Swap, they got the Shiboshis, they're included in the hottest sectors, defy nft. Let's see if they, what they need to do is maybe develop their own chain or do some cross chain. Like, I ain't trying to like, oh, I've been complaining about Ethereum fees and part of the Ethereum fees is because of Shiba Inu, you know, so I can see why people don't like that. So they need to work on like cross chain and stuff like that. But it's just part of the hype cycle. It's a way to stay relevant. Like, Dogecoin doesn't have memes that the, the project has released, so that, that gives it like 2.0 version of meme, but I don't know. We'll see. There's so many memes, there's no way they can all hold their value. I'm just saying there's so many projects, they're not all going to hold their value. At least 50, probably 90, maybe even 95 of these projects are going to be gone soon just because even though they're printing all this money, it's going to find its way to the best ones and the other ones are going to go away. So just, just be aware of that. And as I keep saying every time, take your profits, people.

No one went broke taking those profits. Exactly right. So let's see. Do we have any other questions coming in from the chat today? I went ahead and sent a message in there. So we are going to go ahead and wrap things up for today. Let's see if you haven't liked and subscribed us on YouTube. What are you doing? Turn on the notification bell so you know that we are here. We are putting out shows every Thursday, 12pm this is the Market Report where you can't get these insights anywhere else from our experts, Jordan and Marcel. They are giving you the information you need to know during this bull run. What should you be doing? What should you be paying attention to? So you want to make sure you are tuning in. We're going to give you those insights that you can't get anywhere else. We appreciate everyone for watching and always, always, always tune in Thursday afternoons. We appreciate everybody. We love you all. Thank you for joining us today on the Market Reports. Until next time. Over and out. It.