What cryptocurrencies should you watch in 2022? MATIC, FHM, and more! | The Market Report

Foreign. Welcome to this special holiday edition of the Market Report. We appreciate you jumping in and joining us for the holiday this season. I'm your host Benton and we are joined by a resident experts Jordan Finisith and Marcel Peckman. Jordan use his background in psychology and human behavior to spot emerging trends in the crypto markets. Marcel applies his 17 years of experience trading derivatives options and futures to the crypto derivatives markets. Happy holidays fellas. We are here. New FORMATTED show Today we're gonna be dropping alpha all over the place. What's happening this week? How we feeling guys?

I'm doing pretty good, just had a vacation myself so I'm taking some time off but enjoying here to be with the show and talk with you guys about some crypto picks.

Exactly.

Marcel, that's because you've been buying some altcoins and doing some APA crazy APIs on defies. Because for myself we had the perfect storm in 2021. We had inflation, we had central banks over the world printing money like hell and yet bitcoin only went up like 50, 60. So yes, I'm kind of disappointed but I think things will get in motion in 2022 so it will be a good year.

It seems like we're getting a little bit of a bounce over the last couple days, 2440 hours just in general in the markets. I know we are going to be diving into a couple different things today that are going to be new. So to walk everyone through kind of this new holiday special format, we're going to be jumping into a quick little markets news roundup. Give you the latest breaking happenings inside the Twitter space, inside crypto Twitter. And then we're going to have Marcel walk us through a bitcoin options trading advice. He's going to give you some hot tips of how to get involved in that area of crypto. And then Jordan and myself today we're bringing you some high level projects that we believe in and I think at the end of the day we're going to kind of go back and forth and give you some alpha and insights into what is happening with a couple of these projects where we talk about and then last but not least, we're going to have our markets pro segment. We're going to have some coins that you should be hawking. Absolutely looking at keeping track of the Vortex score and the newsquake. So we are super excited. Tell us where you are tuning in from around the globe today. We're going to be constantly checking the chat today for questions, comments and also because we're going to be checking that chat today. We're going to be giving away a one month subscription. Santa Claus is coming early this year folks and we're going to be giving away that one month subscription. So make sure you drop your Twitter handle in the chat today we're going to be random selection 1 free month of Markets Pro. You want to get that in your pocket heading into 2022. There's a lot of stuff happening in the markets. Markets Pro will take care of you. So for today let's go ahead and give you the markets news rundown for what's been happening this last week.

Sam.

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Wow, great shout out to our editor Dano again. Always just, he just puts a little special spin on that and gives you all the, the latest, greatest happens inside the crypto space. So I we're gonna have Marcel jump in today and he's gonna tell us are we still in a bare market or are we, are we heading in the right direction? So let's go ahead and hand this over to Marcel and he's going to give us his takes of what's going to happen here in 2022. So let's run it back to know if you wouldn't mind leading us to Marcel's expert takes.

Okay Ben, so we've all heard some ultra bullish year end expectations and models for bitcoin and cryptos and we're kind of stuck near the $50,000 and $4,000 for Ethereum. So it's 2.3 trillion for the total cryptocurrency market cap. And if you watch some of the most promising models such as plan B stock to flow, I don't know if you guys have heard of that, but it basically uses the issuance how many coins are minted every year and how many coins are available in circulation. So, so if you have a high inflation high issuance, then your value should be lower. So it's based on scarcity. So the scarcity, the assets, the higher it's going to be its value. For example, gold, we have like 200 trillion tons of gold in the world and they are mined like 3,000 tons every year. So it's a really low inflation rate like 2.3%. But Bitcoin, after the latest halving, which is the mathematical formula that reduces the issuing every four years by half, our inflation right now currently stands at 2.1%. So Bitcoin became the most scarce asset in the world, but well, it didn't come plan out as we expected. The $100,000 150,000, $120,000 expectations. And 2021, as I said in the introduction, was the best year anyone could expect because we had inflation, we had central banks desperate and yet bitcoin failed to break the 1.1 trillion dollar mark. So this leads us to the important question, are we on a bear market? After the 40% correction down to 42% first I want to hear your, your guys opinions and our viewers as well.

Exactly. Jordan, go ahead and jump in here.

Mark, like I've said in the previous show, I think we have seen more of a longer, longer market cycle here. I don't think we're in a bear market. I think a bear market will come, but I think we still got to get that blow off top. Like I said last week, we haven't gotten there yet. So as soon as that happens, I'll be like let's, let's start talking about that bear.

I, I'm gonna follow the same sentiment. I think we're in for this extended cycle again. I said this last week is this is not the same as 2017, 2013. I think we're in a different area, different time, different space, different scenarios impacting kind of the, the general crypto markets that we didn't see back in 2017. The amount of quantitative easing and money printing is it as a game changer I think for, for bitcoin right now. So I think we will see a strong Q1 heading into 2022. Super excited for the end of the year. Give me, give me to January, February. Let's start, let's start getting the bulls back. Are you a bu bear? We want to hear it in chat heading into 2022. I'm going to be hawking to see who's, who's the bulls and who's the bears and tell us why, why are you bullish or bearish? So Marcel, great insights there. I know you wanted to kind of walk through a few other things too.

Yeah, I kind of agree with you guys, but I don't think it's an extended cycle in my opinion. What happened is that we had the whole China fud and Tesla stopped accepting bitcoins and miners being expelled from China and that caused the first wave of correction. Then right after that, as soon as we started recovering, we saw regulators piling in the stablecoins markets. So we had the Congress, we had Senate, we had U.S. treasury, all of them issuing reports and asking, urging lawmakers to regulate the sector. So there's a lot of fear of what regulated stablecoin market could be for cryptocurrencies, as 80% of the volume in cryptocurrencies happens in stablecoins and also for the defi segment. Stablecoins are essential for the dex and for the farming and whatever. So in short, I don't think we're on a bear market. And I'll show you two charts that will show how. Francois, am I. Danilo, can you please share my screen?

And real quick, I'm gonna chime in here. If you're in chat, you're watching. Don't be afraid and don't be shy. Ask questions. Ask Marcel your questions. What do you want to learn from Marcel today? Make sure you're chiming in and chat. Go ahead, Marcel.

Okay, so Benton, that's the Bitcoin FuturesInfo.com and we have the futures contracts, which is a derivative where people can leverage, where people can short. You have it at Binance, Bybit, CME, FTX, Huobi, OkX, all of the exchange, most of the exchange offer those derivative contracts where you can put like $10,000 and you can short $50,000. So 5x leverage to the negative side. So if it goes down 10%, you earn 50% gains, but if, if it goes up 18%, you get liquidated, your position is terminated and you lose everything. So it's a risky market, but it gives us some insight on how professional traders are positioned. Because the longer the future contract, the longer future contracts for March and for June should trade at the premium, at a higher price than what we currently see at Coinbase and Bitstamp and regular spot exchanges. Because when a trader says, okay, I'm going to hold the trade until June or until March, when he's optimistic, when he's bullish, he's going to require more money to enter the trade. So you should expect a 5 to 15% premium on March and June contracts. And right now you're seeing a 9 to 10% premium in March and the same thing, 9 to 10% premium in June. So the derivatives markets in Bitcoin are healthy. And another chart that reinforces that is that despite the price falling from 69,000, Bitcoin's price falling from 69,000 all time high to the current 49,000, the overall, the size of the derivatives market remain healthy. We're at $19 billion of open interest, the total amount on these derivative futures contracts, whereas six months ago we were below 12 billion billion. So the market is healthy. There are no alarming. Thank you, Danilo. There's no alarming signs that we are entering a bear market despite the 40% correction. So there's another question that is attached to that and I want to hear your guys opinions on that as well. I'll tell mine first. Should investors expect an out season for the first quarter, for the next three months? My answer is in short, no, don't do it. Because what we've seen over the past six months, that specific sectors, Metaverse, defy, NFT and whatever there, those tokens are coming hot mem coins like Dodge and Sheba. But it was not a generalized altcoin season so we should not expect this pattern to occur over the next three months. But I want to hear your guys opinion as well.

Yeah, I don't think like the concept of an alt season like it's all going to be all the, all coins at once or bitcoin at once. I don't think that, I think we're beyond, we're moving beyond that structure. Like, like somebody's like who was in the past one, was it ran or somebody's like what if we don't get a full market wide bull market or bear market at any one time? We get different sectors popping off, popping off and kind of keeping the whole thing. Like the S P hasn't hit like a really long, long extended bear market a long time. We could see something similar in the crypto market where different sectors kind of rotate into popularity and every once in a while in between bitcoin gets, get some, get some gains, make some increases on the bitcoin dominance and then pulls back again. But like an overarching full across the board altcoin season is probably going to be a little more challenging. But to me that's, that makes it more fun because then it's easier to actually take your profits in certain sectors when they come up and not have to deal with the whole breadth of the market trying to, trying to time it all kind of a thing.

Yeah, I, I'm kind of in that same school thought really think what we're seeing now is, is the crypto markets are starting to kind of have this like maturation process inside of the altcoins because there's so many different kind of niches whether it' five metaverse, NFTs, that kind of stuff. Like to say hey, what's up? Wrong again. What's up guys? Thanks for tuning in again. Love to have you all here today. Tell us where you're tuning in from by the way. But to answer Marcel's question, yes, I believe we are in a different scenario with all seasons. It's not going to be the same where bitcoin leads, eth falls, then it kind of goes through a cycle. I think we are like Marcel said, we're seeing these metaverse tokens rise when the whole entire market's falling. And then you have tokens like Luna, like Ran was talking about last week that are surging right now during these market of pit like downfall. So it's very, very interesting to see the differences of, of previous cycles and, and what we're going through now.

Yeah.

And even like looking at the altcoin season indicator on coin Market Telegraph Pro, like it's been on either 30 all season or now. It was up to like 80 all season recently, like for the whole year almost. It's not like it never went to like it's bitcoin season. So it just speaks to me like, hold on. We like. Because there's so many more like main or normal, normal people coming in, not so like focused on the bitcoin in the beginning. It's not gonna like, I think bitcoin is not going to be like the, the most attractive coin in the barrel, like going forward because people are going to be interested in a lot of the other things going on there. I think that that's going to kind of contribute to how the other, the other sectors can gain a lot of momentum. Whilst bitcoin is the. Is now it's the gold and it's the conservative play and all the young people like, I don't want to play that. That's boring.

Wrong again saying BTC lost 31 dominance this year. Does that mean anything to you guys? When. When bitcoin loses kind of a dominance like that, what does that tell you? We also actually have another question from Lawson that I want to get to next regarding stock flow model. So we'll ask dominance factor. Is that. Is that anything you're kind of weighing in in any trades, Marcel, heading into 2022.

Oh. As Jordan said, we've seen many new segments popping up and that increases the number of options available of cryptocurrencies available. So if we had stuck with the top 100 coins from December 20, 2020, we would not see bitcoin's dominance fall that much. It's because new coins appeared and there's always been this kind of new emergence of new coins and new segments. So yeah, bitcoin's dominance is not that important in my view. My deal.

Yeah, great point. And I want to pull up this question. We pulled it up a couple times now. What do you think of the plan B stock to flow model given where we're at right now in the failure of his other models? Marcel, I, I know where you stand with, with plan B, but why don't you share your insights with this question? How do you feel? What's your take?

Okay, Lawson, so what you gotta understand is that plan B model in the past failed brutally. When we touched like $20,000, his model was at $11,000. When it dipped to $28,000 recently, his model was at $57,000 or whatever. So it missed the mark in the past by a huge amount, more than 80%. And I don't think it should be used as a model to predict month after month prices, but cycles having the medium price over the four years. That's why he will never miss big because it's a median price of four years so it's easier to get some certainty around that. But month to month it's impossible.

I think we give a little bit too much credit maybe to computer models. I mean just look at disease models, climate models. Now bitcoin stock to flow models, like all these models are wrong. Despite the people in the back thinking like this is right now. And to me like they're based on a certain set of criteria in a com. In a constantly changing universe kind of a thing. Like the bitcoin stock to flow model is built on four year having cycles and all this stuff. I'm like, that's changing. We're witnessing a new asset class coming into fruition on the planet. So the market cycles for that are in, in my mind going to inevitably extend, started off smaller and over time we might get a 10 year cycle in the future of a bitcoin or crypto market, cryptocurrency market cycle. So I think it was a, it served its purpose up to this point, but it's kind of, it needs to be adjusted to how things are developing in the future maybe.

Yeah. Excellent, excellent points today guys. I, I want to move us to the, the next couple segments today. This is the showdown we've been talking about. Jordan's going to be talking through a project giving us the alpha, the insights you can't find anywhere folks. And Jordan's going to give it to us. I'm going to walk you through one of my favorite projects right now and why I'm so bullish about rebase token projects. So let's hand it over to Jordan here to know if you wouldn't mind walking us in to Jordan's expert segment. He's Going to show us some alpha today.

All right, so with my pick, I went with like a safer pick in a sense, like a bigger project. I know you'll hear Benton come up with a, like a smaller cap project, but it's exciting in its own way. But the project I'm actually going to talk about is Polygon. Polygon is an Ethereum layer 2 proof of stake protocol that utilizes a variety of technologies and continues to add new, new things into its repertoire in order to scale Ethereum and make it. Yeah, make it scalable. Make it so that more people can interact on it a lot. The, the burgeoning gaming and metaverse ecosystems are going to be able to operate on Ethereum a lot better because of things like Polygon. Most recently, Polygon has made acquisitions to help integrate ZK roll up technology into the Polygon ecosystem. I believe they acquired a firm called Mirror, which is a ZK roll ups and that's kind of the newest trend inside of the Ethereum ecosystem. ZK roll ups as a scaling solution. As far as the community goes, Polygon has a really strong and supportive community, is gaining more over time as new projects kind of migrate over to the Polygon ecosystem. Most recently, if you go share my screen to new, you'll see that this is one of the biggest developments I think for Polygon is that Uniswap has recently and this was a community vote, they voted to add support for Polygon. This is a very like the first real outside of Ethereum. And I think maybe optimism is what they had chosen before but no other, other platforms or scaling solutions had really integrated with Uniswap. And now Polygon is. So that's going to bring out that the Uniswap is the biggest decks in the whole of the crypto ecosystem. So to me this means that now a lot of tokens that trade on Uniswap will be more likely to port over to Polygon just to get exposure to that lower, lower, lower cost transaction. Okay, you can stop sharing. Danielle. So that's this one big thing. They also had the announcement that Opera is integrating with Polygon. Opera the about 80 million different users. Opera, it's a browser platform, so there's a lot of big things as far as the community and development and integrations going on. Recently they got over a million followers on Twitter, close to 40, 000 Reddit followers, 67000 Telegram followers, and a good amount of social engagements, especially recently with these big announcements from Uniswap and Opera. So the team is growing. I Mean the, the project's growing, lots of good integrations coming up. The team co founded by. I don't even know if I'm gonna say these names right but it's like J.T. kanani, Sandeep N. Yeah, I'm not even gonna try but this, the team is a legit team from what I've seen. And again they've been making acquisitions in the, in recently in time. I know there's been some controversies, we'll get into that in the rebuttal but yeah. So the, the problem again, solving layer two issues on Ethereum. Now Ethereum's going through its own transition right now. Are they going to make it to proof of stake? They're trying to change their car tire while driving on the freeway in my opinion. So Polygon's over here in the back on the side like we got you, we got your back. Like when is Ethereum gonna scale? When is it going to switch to proof of stake? I don't know, is it really going to do anything? Are they going to get up to like a hundred thousand transactions, 100,000 transactions per second, or is it still going to be like slow and expensive and like so the price of Ethereum goes up to $10,000. Even if they can get the gas down, it's still going to be like 50 to $60 a transaction because their price is so high. So there's always going to be this need for these layer two solutions. You got ETH being locked up in contracts. People aren't going to be want to spend in their eth. It's going to turn into the next store of value just like Bitcoin did. So Polygon is going to be the thing that swoops in and be like we got your back Ethereum community. And look, you don't even have to spend your Ethereum, you just have to spend this Polygon and it's a cheaper token. So people coming in now are going to be more likely to buy Polygon than Ethereum in my opinion.

Yeah, I, I mean we were talking pre show and it's like I'm sitting here looking at things and trying to dissect the Polygon. I'm bullish on Polygon. Matic just overall generally. You saw tech Dev post about it the other day like the chart is very similar to eth on, on 2017. I want to pull up a comment from the chat real quick. Jordan, what are, what is your take on this? You think the SEC is going to kill D5? What is your, what is your Thought on that real quick.

And then again, these governments, they can't kill these things like people like a VPNs, the Internet, the V. The governments can't kill it. They want to because, like, they want to control the financial system and the Swift system and all that stuff. But no, they might try to kill it, and then that's going to make them look really bad when it doesn't die. So what?

So, like, in respect to. To Polygon itself, we want to hear from you all. Are you bullish on Polygon? If so, why? I think there's a lot of things going awesome. Well, with that ecosystem, not to mention they just started doing burning with every transaction. Marcel, I know you actually had a point about an article from Decrypt that was about. I forget what it was about, but if you wouldn't mind walking us through.

Oh, you're muted.

Yeah, Benton. So what I'm worried about Polygon is that it might be too centralized. For example, on December 15, just like a week ago, their developers implemented a surprise hard fork. A hard fork is a change in the code that makes the current version incompatible with the previous one. So they found a bug and they decided, okay, let's upgrade it. And the ones who haven't seen our message or still did not upgrade will wake up with their machines with lagging data and disconnected from the network. So maybe you have an arbitrage bot doing multiple exchange, doing multiple layer two solutions, and your bot is not working, or you're off $1 million because of that fault. So, yeah, there's never a good way to correct a substantial bug. There's not. There's no clear best practice. But when those things happen, that a few developers are able to change the code without the majority, without the user saying, okay, we're cool with that, it worries me. So what's your opinion on that?

I agree with that. And to me, that's just the nature of how things roll out in the cryptocurrency ecosystem. Even at the beginning, you couldn't call Bitcoin decentralized because it was controlled by a small group of people that had even the most of the hashing power. So it's more like over time, legitimate projects that grow can become more decentralized. They can put things in place to allow the decentralization process to be integrated. And I would say that Polygon's not there yet, but I think it's probably one of the better technologies, especially for layer two scaling solutions. And in the future, I would hope that they move towards more towards that decentralized mindset. I can't say that's gonna happen for sure but with the ethos, the ethos of the whole ecosystem I would assume that it will. But you know that's a valid point but every project out there essentialized until it's not in my opinion.

So I real quick to that that SEC comment. All I have to say is good luck. Good luck SEC regulating the D5 space. Really gonna be challenging for them to do that. I want to pull up real quick the tech dev looks like the, the post that he made about Matic to pull up some charts. I mean if you're looking at this and you're seeing Eth from 2017. I know, different time, different era and you see this and you're looking@matic 2021. I mean folks, come on. I mean that's, I, to me it looks like almost the exact same Jordan Marcel. I don't know if you've had time to, to really dissect Matic.

But yeah, Ash is saying see what it's being probably like the reason you mentioned that they have the token burning mechanism is because they just implemented the EIP 1559 from Ethereum onto Polygon. So anything that does happen on Paul, on Ethereum can be implemented into the Polygon ecosystem. And like yeah, I think what he's saying Matic is whatever he's promised to be. And what Matic is actually trying to do is become like Polkadot wanted to be the, the interoperability for the whole crypto ecosystem. Matic is trying to be the interoperability layer for all of Ethereum. So they're taking the best technologies within the Ethereum ecosystem and integrating it into their protocol to try and make Ethereum the best. And I getting in this debate with people like, like Ethereum's got first mover advantage. It's way ahead. So a lot of, a lot of the applications that exist out there are on top of Ethereum. So Polygon has some of the best opportunity in my, my opinion to kind of take some of that market share and co op and so people don't have to fully move away from Ethereum. They can stay on top of Ethereum but pay less fees and stuff. So I think it's just got a really good, really good trajectory going forward for years and they just priced just yesterday hit it all new, new all time high at what, 270. That might be like don't buy right now, wait for a pullback people. But that's not investment advice. That's just like, oh, we're not a lot. But yeah, new all time high. Even though the rest of bitcoin's sitting down there by 50,000, so it's not being dependent on bitcoin Matic. So I don't know, it's just one.

So my, my last point here for, for Polygon is, let's see, Marcel brought up this during the pre show. He said Founders foundation and treasury holds 65 of coins. Is that a concern at all for you, Jordan? When you're looking assessing some of these projects and tokens, like, how much does that matter to you?

Depends on, like, is it just the founder, people that made it, developers holding it, Is it a foundation? A lot of that does, yeah. It matters how the tokens are allocated and what they plan to use those tokens for in the future. I know if it's a foundation holding the token, a lot of times those are used as development funds and whatnot. So that could potentially be a good thing in the future. But yeah, if the developers are holding like 85 of the tokens, like some of these products, I'm like, watch out.

But yeah, yeah, yeah, that's normally a. Definitely a concern for me too. So question here from the audience. Where is the overall market cap by end of 2022? Are you, are you making any predictions here on the show today? Live, live hot takes from Jordan.

At the. It's hard to say at the end. Maximum in 2022, 78 trillion.

Okay, that's, that's a big number. I think that's attainable though. I don't think that's outlandish. 2022 could be a potentially massive year. Any predictions for Matic heading into to Q1? Where do we think that could fall? A lot of people are throwing around $5, $10. These kind of psychological numbers.

I've been seeing a lot of people like Maddox, $10 built in. I'm like, oh, that. Yeah, I would like to see that. But if everybody starts saying that, just like everybody was saying Bitcoin to $100,000 by the end of the year. And I'm like, nope, because you're all saying it. So yeah, I was like, meg, I'm waiting to see Matt to get to $10. Will it happen this year, next year? Maybe if we get a really sick blow off top. Yeah, we'll. We'll see.

Very good. All right, folks, we want to hear from you. Are you bullish on Matic? Are you bullish as Jordan is on Matic for this year heading into the end of 2021 into 2022. We actually have a very, very special guest video holiday season cheer for everyone offering a little bit of holiday spirit around the globe. If you haven't liked and subscribed, go ahead and do so. Cointelegraph on YouTube. We're here Thursdays like and subscribe. Smash it. Bing bong right there. Put on your notifications so you know when we are live on Thursdays. Also, don't forget, drop your Twitter handle and chat. We're going to be picking one winner, one holiday winner for our Markets Pro giveaway today. You don't want to miss your chance so make sure you are plugging in your Twitter and let's go ahead and and jump into our guest video. Special highlights.

Hello, I am Big Chad GM Crypto people.

This is Matthew Greenspan from qe.

We, the chart guys would like to wish you all a happy holiday season as well as a healthy new year. Wishing everyone a very happy and healthy holiday season of 2021 after a very historic and beautiful year. A glorious year indeed. Remember to establish those trade game plans in advance to help eliminate emotions from the decision making process. Stick to the trends and use a stop loss.

Keep an eye on the net flows. When money's flowing away from exchange, it means people putting money into their wallets which is a good sign for the crypto markets and Bitcoin in particular being the biggest. But if money's coming onto exchanges means that people are taking it out of their wallets, bringing it onto exchanges which means that they are being prepared to sell.

If you were to pick something to put your funds in, whether it be Bitcoin or Ethereum, I would personally go with Ethereum. At this point it looks to continue to outperform.

Take care and much love from the Akron Crypto Channel.

Wishing you amazing holidays and an awesome 2022.

And I'd just like to wish everyone at Cointelegraph and all of your viewers a very happy Christmas and a healthy.

And prosperous 2022 from the Cointelegraph family to your family, we want to say thank you for all of your support this year. We hope you, you have a wonderful holiday season.

That was dope. That was awesome. Great video. Whoever made that, give the, give that person a raise. We love to see that. So now it is time for for us to kind of dive into some Dow Rebase tokens. Today I have a project I'm bringing you you probably may have never heard of. I saw somebody in chat Lawson, he's been chiming in great Comments today, by the way. And for the rest of the folks, chime in. Love it too. But we got a project coming in to you today. This is Fantome. It's on the Phantom chain and the Moon river chain. I'm going to be jumping in, diving in, dissecting. What the heck is it? Why is it so popular? Or not popular? Maybe it's been under your radar, you don't know about it, and I'm going to dive into this. So let's go ahead and get right in. So for those of you who aren't familiar with Fantome F A N T O H m. This is an Olympus Dao fork. It is a Rebase Token project. So what does that mean, Rebase token? A lot of people are kind of coining this model as Defy 2.0. So we saw the sushi swaps in in from the Defi summer phase and things have kind of progressed and evolved and now we're kind of reaching this, this new model of Defi. And so why is this model so important? It's because the protocol itself owns its own Treasury. So if you think of any of the tokens on the market, the bitcoins, the Ethereums, the Matic, theoretically they could all go to zero and nothing is actually backing those assets. So with the Project Phantom, it is a Defi protocol that issues out the token fhm. This token is backed up by their Treasury. So there is a lot of gamification going on. And for those that are familiar with the prisoners dilemma, this is something Jordan could probably break down a lot better than I can, but it is incentivizing all parties inside of the ecosystem to stake or buy bonds, which are essentially just IOUs. And then the protocol itself is building up a treasury of money or Runway, so that if the actual native asset price of FHM drops, that will always be backed by at least $1 of Dai inside the Treasury. So I'm going to pull up their website real quick to just kind of show you all. I know we've been doing a little bit of talking here. We're going to pull up actually. Let me see. Give me one sec.

Yeah, we've seen similar projects, okay, out of Phantom, but maybe on Ethereum, and some of them failed in the past either because the rebasing wasn't able to match up the volatility of the token, like a 40% intraday drop. Then what can you do? Or because of a Oracle, Oracle failure to gather data to get a price from other exchanges. So do you really think that Phantom solved those issues, are confident on that.

So here's, here's the, the deal is, is there's been so many forks of the Olympus Dao model because Olympus Dao kind of innovative with what they're doing. So when, when you see a lot of these projects fork, they're just ripping off the same model. And the issue is getting and driving new investors into the protocol. So in theory the incentive and because you're getting extremely high APIs, let me mention you're getting 1.1 million APY right now for staking. However, to Marcel's point, the asset price has dropped 80% and I'm going to pull up a chart here to show you all. It's like, it's not very sexy and I know I'm not making my here any better, but let me pull up. Yep, there we go. Let me pull this up. I mean when you're looking at the chart itself, it's like it was at an all time high. We saw back at what was at $12,000. Now it's down to 50 I think. Or that's market cap. Market cap. Let's see, it was at 60, 60. Now it was uh, it was not looking very hot. And so it started out great. What happened is the ecosystem was flourishing. People were driving new investments into the actual protocol. But the great part about this is that when you're buying the tokens, there's always an increasing supply of FHM token. And so when you own your, your share, your staking, you're actually owning a percentage of the market cap and that never changes. So instead of just buying set amount of tokens, you're actually buying a percentage of the market cap. You're not just buying a set number of tokens that can then rise or fall in. So no matter what, you're constantly earning more and more when you're staking inside of these protocols. So any questions from the audience? I hope all that made sense and I was able to kind of break down some of that. This model, this rebase token model and some of the value propositions behind it.

While we're waiting for questions from them. What sets it apart for you with this one compared to like an Olympus DAO or Jade protocol on BSC or what's the one time on.

Yeah, Wonderland Time Klima. My big thing is this is, is I think Phantom A, the ecosystem is, is thriving. So I, when I was looking at a lot of these forks, you see them on bsc, you see them on Polygon, you see them all over the place, even Solana has a fork. I was bullish about Phantom ecosystem first and I spotted this one, got it recommended to me and I was able to get in. The thing with this, I want to preface this is these defi protocols are extremely risky. So you have to be very kind of like risk on when you're getting into these things. And so when you know how to navigate some of those risks though, it does become a little bit easier. But any kind of defi staking mechanism, there's risk involved, there could be smart contract bugs, there could be exploit hacks, there could be tons of things happening. So let's see, the problem is the yield token can go to zero. That's where this actually comes into play is Phantom just launched another token called at a FUD F H u D this is a burnt a a proof of burn token. Are you guys familiar with that? Have you ever heard of that? Proof of burn. So it takes the treasury of Phantom and it's able to go invest that treasury by minting this new token FHUD and then it's able to go and use that protocol to then leverage the money sitting in the treasury. So instead of that money just sitting there, not doing anything, it can actually go out and earn even more money for the treasury beefing up the Runway, making sure that each FHM token is backed all the way to a dollar, increasing the Runway. So the issue for these protocols is driving more investors into them. But the incentives for both parties, whether you're buying the bond side of it or whether you're, you're buying the actual asset and staking is to stake for the long term. And so theoretically if you were to run the numbers, the APYS are so high when the value, when the TVL is this low that in theory, the longer that you hold the, the better that you make out on your actual investment. So let's see. What would the prediction for Phantom be by 2022? Whoops, looks like we pulled up the wrong question. Where was that one? Here we go. What would be the prediction of phantom by 2022? I but my thing is this, with these, these price predictions for these types of projects, I I can't tell you, I have no idea. I stake for the APYs. And so for me, like yes, I do care about the price but while these prices are extremely low right now I'm earning, I'm earning and earning and earning every single day. So if the price does even go up 50%, you know, I could be earning more tokens each day. Just by staking 1.1 million APY, it's absolutely astronomical.

Yeah, the good thing about, the good thing about these projects is that they, well, they do have a high apy, so you're earning more tokens. Even though the price drops down, the value holding is still, is still the same. Which is like in the end, is it gonna see that? Is it gonna stay the same forever? I don't know. Eventually it could go up. But yeah, I'm, I'm concerned about how all these projects are going to survive. I don't think all these rebase tokens are going to live and how, how we know that Phantom is going to be the one that survives out of all of them.

It's not just about that because even if it has a success rate, even if the TVL grows, there will be more users joining their pools. So the yield for the API will naturally reduce from 1 million to, I don't know, 10%, 5%. And once that yield reduces, there are no new entrants, new people wanting to buy the token and stake it. So is that sustainable? Sustainable in a longer term, all of those projects? My question is not only for Phantom.

Yeah, that's a great point. And, and we saw this with the pancake swaps of the world, we saw this with the goose finances of the world. Everyone just started forking and forking, forking. Eventually what I think will happen is you're right, a lot of these projects are going to die off, but a lot of projects are going to continue to innovate on top of what Olympus Dao did. And I like to see projects like Phantom that are trying to address this issue of what are they going to do with the money sitting in their treasury. If it's not sitting there working or sweating, then what are they going to do? And they added in this new proof of burn mechanism which allows them to go use their treasury funds to actually go build more interest. So to me it shows that they're constantly innovating. They have a very small community, surprisingly enough, and, and I was actually surprised at their Twitter. When I went to go take a look at Phantom's Twitter, it was not, not as engaging as the community as I thought. I think they only have about 6,000 followers on average. I think they're getting only about 5 to 10 retweets, which was a little bit surprising to me. But you can see here, the UI on this thing is super sleek. That typically is a good sign for me. But it's not hard again to fork a lot of these things and just slap a nice brand or logo on it. So I do want to caution folks, anytime you're getting into these rebase tokens, these forks, you know, a lot of them can go away overnight. I don't think that's going to be the case with Phantom, but there's always the risk that when you're in the D5 space it is so new, it's so fast moving that some of these projects may not be around in three to six months. But I do believe in Phantom and believe that it will be around for that longer, longer time period.

I think Shalom brings up the piece like there's a lot of these forks aren't going to work, work out and some of them might be kind of scammy. So just keep, you keep, keep, keep your wits about you folks. But I did want to jump to this, his question earlier just to see how we think about this, what we think about taxation and defi and how that's going to affect the whole ecosystem overall. Personally, I like good, good luck governments trying to tax defy. I get, I get like they had a much better handle on the banking system back then. The central banks kind of controlled the regular banks and they could tax them. Like there's so many ways to not get taxed in crypto. They're basically governments are going to be relying on the goodwill of citizens to be like okay, here's I'm going to report what I traded and here's the taxes. Because otherwise it's going to be really hard until they get a few years down the road when they have white listed addresses and you can't deposit anything to an account if it's not from one of these whitelisted addresses. There's not going to be anything they can really do at this point in my opinion.

Again, how like I, I want to see how they're going to try to figure this out. The, the US Government in particular is so far behind any kind of regulation when it comes to defy. Like I'm not even worried about this right now. You know, at the end of the day it's like good luck trying to tax defy there. It's just, it's going to be really, really challenging for governments to tackle this issue and I don't think we're going to see anything for several, several years ahead.

So.

Great question, Sean. Thanks for, for chiming in there. Don't forget, drop your Twitter handles. We're giving away that one month free subscription of Markets Pro, which I'm gonna go ahead and wrap up. I think I stated the case for Phantom. You guys shot your shots. I think it's got some promise. I got some promise behind it. And of course, always, always do your own research. Feel free to ping us though. You know we're all on Twitter if you have questions about some of these projects we're talking about. I'm sure we would be happy to interact with you all, all behind the scenes. So let's go ahead and I know we got some tokens that we're going to be talking about next for our Markets Pro segment this week. Let's go ahead and jump in. All right, folks, so this week on our Markets Pro segment, we have some major tokens that had some major moves. This week we're keeping an eye on Iota. So for those who aren't familiar with the Newsquake service, it's automatic alerts that instantly notify you with market moving events. Thanks to Markets Pro, you can beat the crowd to most important news of the day. So let's go ahead and pull up the chart for Iota on December 21st. As you see on the red circle there, lower portion of the screen, the announcement that IOTA Staking was launching on the Shimmer and Assembly networks came up. Up on Markets Pro, we caught that newsquake and look at that white line. You see the huge surge. So at iota's price pumped immediately after this news went live, shooting from 1.11 cents to 1.31 since that's 18 in the first six hours and then it broke 133 during the next day's pump. So if you were able to catch this newsquake, you made a solid move. I think at the end of the day, that's why you love having Markets Pro in your pocket. The next coin we're going to shift over to is Yearn Finance. And if you've been hawking the Vortex score, you're looking at that scanner and you are seeing what's happening are coins touching that 80 marker? If you're not familiar with the Vortex score, it's a comparison between current market and social conditions and those in the past. And so when a vortex or hits 80 or above, it's considered confidently bullish. But conversely, a low vortex score below 30 indicates historically bearish conditions. So when we're looking at this chart for Year in Finance, that Vortex score illustrated a great scenario for us. Early in the week, the assets hiked from about 21,000 to 31,000 after the price plateaued. So indeed, 15 hours after the peak score was registered, Wi Fi's price spiked once again, climbing from $31,791 to 39,000 dol the next 16 hours. You look at the chart, you see that Vortex score, you see the green, you see the price line. It's a no brainer. That's the power of the Vortex score. You love to see that stuff. So that's going to do it for our Markets Pro segment this week. Hopefully you're able to catch some of those. And if you're using the Markets Pro platform, you probably did. And so don't forget to drop your handles in the chat. We're going to be picking one winner. Holiday special, one month subscription. We'll be giving that away. So today guys, we're gonna have our closing thoughts here for today and we're actually going to have the community vote. Which one are you most bullish about right now? Is it Polygon or is it Phantom? Did we state the case enough? Did you think Marcel's take today? Is it gonna happen heading into 2022? Guys, closing thoughts today. Marcel, I'm gonna hand it off to you.

Well, I'm gonna have to say that Jordan speak was a little bit too safe and at the same time the most dangerous one. Because if Ethereum 2.0 launches next year, which I don't think is going to happen, but if it does, then those scaling solutions just fall apart. Yeah, there are some ZK privacy solutions integrated, but Ethereum can handle that. They can do additional layers and include those solutions. It's nothing really new. Zcash has been doing that for four or five years, so I'm gonna have to stick with Benton's Phantom pick because it's promising. We need some algorithmic stable coins in case the government's regulation become hard.

Thank you, Marcel. All right, Jordan, what are your closing thoughts today, man?

Well, I still think Polygon's gonna outperform Phantom, but that's just my opinion. Even looking at that Vortex chart and seeing what's happened on lately, like these prices, whenever they go up really quick, they always come back down quite a bit. So take your profits. I'm just gonna repeat this until everybody like starts taking profits. Because if I try to make it so I take profits on coins that I've been holding for at least a year because that makes it so I got long term gains instead of short term gains. But that's just my, my approach to things. We got a lot of innovation coming here. I think 2020 is getting 2022. Somebody was like, oh, 2022 was like 2020 number two. Like, ah, 2020 was a bad year, right? It was an interesting year. So we'll see how it turns out. But I think we're gonna get a nice blow off top and then probably start a bear market maybe at some point within this next year. So again, really start like looking at getting your price targets for where you want to. Like, I think this is a good level for me to get out of this token that I like. Like just, just to like ease your, your mind and your soul. Right? Yeah. And Polygon is gonna do well. I don't think that Ethereum is gonna upgrade to some kick ass in the network anytime soon.

Great points. And I would have to echo that. I'm a, I'm a huge fan of Polygon myself. So at the end of the day, you know, it's like I don't think you can go wrong again. Always, always, always do your, your own research. Even when you're kind of jumping into to massive projects like Polygon, cannot emphasize that enough. Safety first, folks. No one went broke taking those profits. Let's go ahead and select our Markets Pro winner for this holiday special. We want to see who dropped their Twitter handle in the chat. Literally the first person to do it will probably win today. I'm just.

Well, this person was the first one to do at the beginning.

Let's see.

He was way back.

For real. Beginning Ds. For real. Is it, Is that. Do we have a winner here? Do we have a winner? Markets Pro one month.

Yeah, let's do it. Yeah, let's do it.

Winner, winner, chicken dinner. That's awesome. We're gonna send you a message on Twitter, so be on the lookout for that. Thank you. I thank you for tuning in today. This has been awesome. Hopefully you all like the new format, the new tweaks. Hopefully some alpha you couldn't find anywhere else on the Internet. We're talking about it. We're going to bring it to you next week. Actually, I think we're taking the next week off. So be on the lookout for us. 2022 is going to be a huge year for the market report and huge year for you all tuning in. We appreciate you. We love you. Make sure you are subscribing coin telegraph on YouTube. We love you all. Thank you all for joining. Happy holidays and let's have a great 2022 to the moon. Let's go. Thank you all for joining us. It.