OVERVIEW

Crypto's Fireworks Were All Duds 

A couple of days of some pump has reversed into a day of dump. It’s a holiday week, so what do you expect? It's mostly quiet today as we in the US here get ready for Independence Day - or, as my cheeky friends in the U.K. call it, Good Riddance Day. 🟥 

In today’s Litepaper, we’re starting off with a look at Bitcoin’s chart and some price levels analysts and traders are watching.

Also on deck: PolitiFi memecoins are exploding and a Crypto 101 over hot and cold wallets. 📰

Before we dive in, here’s today’s crypto market heatmap:

And here’s a look at crypto’s total and altcoin market cap YTD:

TECHNICAL ANALYSIS
Bitcoin’s Most Important Trendline 📈 

There’s an important trendline we’ve looked at various times so far in 2024 - let’s talk a walk through memory lane and see how Bitcoin has responded to this line so far. 👀 

This interior trendline for $BTC is proving to be one hell of an important level to watch. In the April 2, 2024 Litepaper, this is what it looked like:

Then, in the April 17 LP, here's what it looked like:

Bitcoin then got right on top of that interior trendline as shown in the May 1 LP:

And that brings us to what $BTC looks like today:

Bitcoin dropped hard below that trendline on June 24 - which sucked for bulls. And since then, bulls have made several attempts to push above that level, but they’ve been unwilling or unable to drive higher.

Analysts and traders are watching the 200-day moving average near the $58,500 value area, which is the next critical zone.

Keep those eyes peeled for the remainder of this July 4th holiday week. 🎆 

NEWS
PolitiFi Meme Coins Still Going Wild Post Biden-Trump Debate 🗳️

With chatter about Biden potentially losing the Democratic nomination for the 2024 election, PolitiFi meme coins are having a field day after President Joe Biden’s lackluster debate performance from last week. 📉 

Political Memecoin Mania Continues

According to Cryptonews, CoinGecko revealed that the $SOL-based Gabin Noosum (NOOSUM) token – yeah, a misspelling of Gavin Newsom’s name – shot up from $0.003 to $0.0051 yesterday before crashing back down this morning.

But the real kicker is the Kamala Harris (KAMA) token, which rocketed 344% in 24 hours to $0.015. Meanwhile, the Jeo Boden (BODEN) meme coin took a nosedive, dropping 73% over the past week. 🚀

Polymarket’s Election Odds

Over on Polymarket, crypto bettors are increasingly leaning towards a Democrat other than Biden winning the election. On Wednesday, Harris surged past Biden as the top candidate for the Democratic nomination, leading with 45% odds over Biden’s 34%. ✅ 

Trump remains the frontrunner with a 61% chance of winning, according to Polymarket. Trump’s promise to protect Bitcoin holders from regulatory crackdowns under Biden has garnered him significant support in the crypto community.

Whether wagering platforms like Polymarket will be of any important predictive power in future elections remains to be seen. Regardless, it’s proving to be an easy option for people to bet on some crazy ass unknowns. 😲 

CRYPTO 101
Crypto Wallets: Hot vs. Cold Storage Explained 🔒️

Picking the right crypto wallet can be confusing as hell. And when you throw in words like hot and cold to describe a wallet, it makes it even more of a headache. 🤕 

Let’s break down the differences between hot and cold wallets so you can store your digital assets like a pro.

Hot Wallets: The Tech-Savvy, Always-Connected Option 🥵 

Hot wallets are always connected to the internet, making them super convenient for everyday transactions. But, like anything always connected to the interwebz, they come with some risks.

• Accessibility: Hot wallets are easy to set up and use. You can access them from your computer, smartphone, or tablet, making it a breeze to send and receive crypto on the go.

• Speed: Need to make a quick transaction? Hot wallets are your go-to. Their internet connection ensures speedy processing.

• Examples: Popular hot wallets include Coinbase Wallet, MetaMask, and Trust Wallet. These platforms offer user-friendly interfaces and often come with added features like in-app trading and staking.

• Security: Here’s the catch. Being online makes hot wallets more vulnerable to hacks and phishing attacks. Think of it as leaving your wallet on the café table while you grab another latte. Not the safest move.

Cold Wallets: The Security-First, Offline Approach 🥶 

Cold wallets are like your grandma’s 500 lb. safe—secure, reliable, and definitely not connected to Wi-Fi. They store your cryptocurrency offline, providing an extra layer of security against digital threats.

• Accessibility: While not as convenient as hot wallets, cold wallets are pretty straightforward once you get the hang of them. However, they require a bit more effort to set up and access.

• Speed: Transactions with cold wallets aren’t instant. You’ll need to connect your device to the internet to make a move, which adds a step but boosts security.

• Examples: Trezor and Ledger are two of the most well-known cold wallets. These hardware wallets look like USB drives and can be securely stored anywhere you like.

• Security: Cold wallets are virtually immune to online attacks since they aren’t connected to the internet. Unless someone physically steals your hardware wallet, your assets are safe.

Choosing the Right Wallet for You 🤔 

The choice between hot and cold wallets depends on your crypto habits and security needs.

• Hot Wallet: Ideal for active traders and those who make frequent transactions. If you’re constantly moving crypto around, the convenience outweighs the security risks—just don’t forget to use strong passwords and enable two-factor authentication.

• Cold Wallet: Perfect for hodlers and anyone storing large amounts of cryptocurrency. If you’re more of a set-it-and-forget-it type, the added security is worth the minor inconvenience of slower transactions.

Hybrid Approach: Best of Both Worlds 🌏️ 

Why choose one when you can have both? Many crypto enthusiasts use a combination of hot and cold wallets. Keep a small amount in a hot wallet for daily use and store the bulk of your assets in a cold wallet. It’s like having a checking account for spending and a savings account for, well, saving.

Personally, I have hot wallets all over the place: Coinbase, Kraken, Bybit, Crypto.com, Minswap, Uniswap, etc.

But I also have the crypto I plan on hodling for a long time in a Ledger wallet.

You can use both, just be aware of the risks and rewards of both. 🔒

NEWS
Crypto News In Three Sentences 📰

🚀 Uniswap Swap Volume Hits All-Time High 

Uniswap ($UNI) just smashed its all-time high in swap volume, clocking 4 million swappers in June alone thanks to its layer 2 solutions. This surge cements Uniswap’s status as a DeFi giant, with users flocking to its faster, cheaper trading options. The recent launch of the Zora Network, which improves swapping experiences even more, is fueling this momentum. Bitcoinist has more.

💸 Ponzi Scheme Crypto Fund Owner Ordered to Pay $84M 

Sam Ikkurty, the mastermind behind a Ponzi-like crypto hedge fund, got slapped with an order to pay back almost $84 million to investors. His scam promised insane returns but was just another Ponzi scheme in disguise. The court's ruling hits him with restitution and disgorgement, showing that crypto fraud is getting no mercy. Protos has more.

🔍 Silvergate Gets $63M Fine for FTX Failures 

Silvergate Capital, the bank that went down with FTX, failed to monitor over $1 trillion in transactions and now owes a $63 million fine. Regulators nailed Silvergate for misleading investors about its compliance controls and hiding the FTX fallout's impact. This fiasco highlights the need for stricter oversight in the crypto banking world. From QZ.

🌐 Lido’s Ethereum Stakes Surge Despite SEC Scrutiny 

Even with the SEC breathing down its neck, Lido ($LDO) saw a 100k $ETH jump in staked Ethereum. Their new Community Staking Module is pushing for decentralized node operations, making solo staking easier. Lido’s wrapped staked ETH on Layer 2 networks also saw a spike, proving its growth in the decentralized staking game. Full story at CryptoSlate.

🔒 Holograph Hacked by Insider, Faces $14M Security Breach 

Holograph got hit by a former contractor who minted $14 million worth of HLG tokens, crashing the price by 80%. This insider attack exposed major security gaps, prompting Holograph to beef up its system and plan a token burn. It’s a stark reminder of the relentless threats in the blockchain space. More from CoinGabbar.

📈 Genesis Digital Assets Eyes US IPO Despite Alameda Ties 

Genesis Digital Assets, heavily backed by SBF’s fallen Alameda Research, is eyeing a US IPO. They’re consulting advisers and planning a pre-IPO funding round as the crypto sector heats up. Despite the FTX-triggered chaos, Genesis is leveraging its massive operations to ride the bullish wave. CryptoPotato has more.

🛡️ Insurance: DeFi’s Unsung Hero 

Insurance is the silent guardian DeFi needs, just like it did for cars and buildings by cutting risks and boosting safety standards. Companies like Schwarzschild are pioneering DeFi insurance to offer coverage that mirrors traditional financial protection. This move is crucial for mainstream adoption, ensuring digital assets are as secure as your cash in the bank. From CoinDesk.

Links That Don’t Suck 🔗

🎆 July 4th history: Some 'facts' we get wrong about Independence Day

👉️ Digit: Humanoid robot employed to move underwear boxes at Spanx warehouse

🎮️ Nintendo sues Switch modder along with a Nintendo piracy Reddit moderator

😡 Taliban jailed 8 traders for holding and using crypto

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