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- SOL Doesn't Just Do Disasters - It Elevates Them
SOL Doesn't Just Do Disasters - It Elevates Them
SOL suckage continues, BTC ordinals and mining hike, NFT investigation goes nowhere, ADA's new partnership
Jonathan Morgan
April 11, 2024
OVERVIEW
SOL Doesn't Just Do Disasters - It Elevates Them 🎭
It was a mixed day across the board, with relatively flat price action. With the whole market stuck in a tightening congestion zone, the breakout or breakdown should be powerful.
In today’s Litepaper: the train wreck that is Solana continues, Bitcoin ordinals airdrop, BTC mining difficulty spikes, Dapper Labs investigation nothing-burger, and Cardano’s new partnership.
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:
NEWS
Theatre Of Fail Featuring Solana’s DeFi Ecosystem 🎭
The Setting
While Solana's network continues to fail its users as often as a dollar store umbrella in a hurricane, $SOL's DeFi space experiences drama of its own.
The Main Characters
MarginFi: The troubled star, struggling with token emissions amid internal turmoil.
SolBlaze: Caught in the crossfire, desperately seeking missed payouts.
Solend: The victim of slander, battling false accusations and defending its integrity.
Act 1: The BLZE Blunder
The Dispute: MarginFi has failed to distribute BLZE tokens for eight days, citing blockchain congestion and high regard for user safety.
The Accusations: SolBlaze and Solend slam MarginFi, alleging misinformation and misconduct that stirred up quite the storm.
Act 2: Internal Strife and Resignations
Drama King MacBrennan: Claims from the co-founder of MRGN that personal funds were used to cover BLZE obligations—what a champ!
Edgar Pavlovsky’s Exit: The founder of MarginFi resigns due to internal discord and aims for more altruistic endeavors, leaving behind a legacy of chaos and the largest withdrawals in MarginFi’s history ($150+ million).
Act 3: The Misinformation Melee
Rooter’s Retort: The founder of Solend steps up to defend his platform, claiming MarginFi tried to tarnish its reputation by falsifying facts about its total value locked and oracle configurations.
The Fabled Report: Mention of a mysterious 20-page risk report by MarginFi that supposedly critiques Solend, yet remains as elusive as a unicorn.
Act 4: Attempts at Amends
Making Nice: Amid the fallout, MarginFi promises to reimburse SolBlaze users for the recent BLZE shortfall and vows to improve communications and transparency going forward.
The Takeaway:
Solana’s transactions still break down more than a Jenga tower during air turbulence. 🤦♀️
NFTs
Ghostface Killah Drops 10,000 Free Bitcoin Ordinals with NakaPepes 👻
Ghostface Killah teamed up with NakaPepes for an exciting drop of 10,000 free-to-mint Bitcoin Ordinals, infusing his music into the blockchain space. 🎤
This unique collaboration allows fans to own a piece of the rap icon's creative output, with full Creative Commons rights for use within blockchain-related projects. The initiative also introduces "Ordistorians," a project uniting Bitcoin artists worldwide in a curated art venture.
As these NFTs provide a platform for established and emerging talents, Ghostface Killah's music enthusiasts and the broader NFT community anticipate this blend of hip-hop and digital artistry to open new avenues for creative expression and ownership. 🚀
NEWS
Bitcoin Mining Difficulty Hits Record High Before Halving ⛏️
Bitcoin's mining difficulty has soared to a record high, setting the stage for next week's halving event. 🌐
This increase indicates greater energy needed to mine $BTC, reinforcing the network's security. With the halving poised to reduce miner rewards from 6.25 BTC to 3.125 BTC per block, this adjustment in mining difficulty ensures that only the most efficient (or most subsidized) mining operations will thrive.
BTCUSD Daily Chart - Click to enlarge.
From a price action perspective, Bitcoin’s daily chart shows continued consolidation inside a bullish pennant. Bulls continue to test the upper trendline of the triangle.
If Bitcoin breaks out of the pennant and closes at or near $71,787, is there enough momentum to keep it moving higher? The daily Composite Index and Detrended Price Oscillators are both in very neutral conditions, so the probability of there being enough momentum to carry BTC higher is definitely there.
Another thing to look at is the Stocktwits Sentiment Score. Last week, it was not far from hitting Extremely Bearish. But over the past few days, it’s stayed in bearish territory while Bitcoin has hugged the $70k value area and is just now turning bullish. 📉
STOCKTWITS CONTENT
New “Trends With Friends” 🍿
Stocktwits co-founder Howard Lindzon chops it up with pals JC Parets and Phil Pearlman every Thursday on "Trends With Friends."
NFTs
No Charges: Dapper Labs' SEC Investigation Ends Quietly 🤔
Dapper Labs, known for its popular NFT platforms like NBA Top Shot, was recently under SEC scrutiny but has seen its case closed as of September 📜.
The investigation, details of which remain sparse, was concluded without any action, which is a relief to the NFT community and Dapper Labs. Despite the SEC's historical challenges against other NFT projects, Dapper Labs continues its operations, untouched by federal intervention.
This closure marks a significant moment for the NFT industry, reflecting its complex interaction with regulatory frameworks and the evolution of digital asset classifications in the legal landscape. 🏀
NEWS
Cardano Partners with Huawei Cloud
The Cardano ($ADA) community finally has some ‘good’ news: a partnership with Huawei Cloud. 🌍
This collaboration will integrate Huawei's cloud technology into Cardano, supporting its validator nodes and boosting its development ecosystem. Aimed at fostering growth and innovation, this partnership reflects Cardano's strategic efforts to expand its technological reach and influence in global markets.
And that’s not the only thing that looks bullish for Cardano.
ADAUSD Daily Chart - Click to enlarge.
Cardano's daily chart has a falling wedge pattern - a powerful bullish reversal signal - and strong support against two Fibonacci retracement levels near the $0.55 value area.
And the Stocktwits Sentiment Scores have been slowly rising out of the ugly bearish levels into neutral.
One of the most important pieces of technical data to watch is the Detrended Price Oscillator, which recently tested the zero-line, got rejected, and is testing it again. For some analysts, if it crosses and closes above the zero-line, that’s a strong bullish trigger to anticipate a turnaround in the bearish price action. 🚀
Links That Don’t Suck 🔗
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