Sponsor Us 📣 | Follow Us 👍 | Premium Roast ☕ | Past Editions 📰
From a bald guy trying to sell used books out of his garage to the boogeyman of George Orwell’s nightmares, Amazon has come far.
But is Bitcoin destined for a similar trajectory?
Naturally, bitcoin miners aren’t the most likely candidates for tomorrow’s league of corporate overlords. But could crypto pop a dot-com bubble of its own?
A Word Foam Our Sponsor
Hey, we advertise a couple of different newsletters here, including everything from Trad-Fi experts to AI reports. But today we’re throwing in our most exciting sponsor ever… ourselves!
That’s right. If you’ve enjoyed reading Coffee & Crypto, we thought you might be interested in the good stuff we keep in the back.
It’s a newsletter we’re calling “Premium Roast,” and it cuts through the nonsense floating around from Twitter and CNBC.
With Premium Roast, we’ll deliver hard-hitting analysis and guides to the markets directly to your inbox, three times a week, at a price point cheaper than an oat milk latte.
Espresso Shots
☕️ Buterin Sells Remaining MKR 💳 📉
Vitalik Buterin, the creator of Ethereum, liquidated his remaining stake in MakerDAO, worth roughly $580,000.
Buterin’s move came after Rune Christen, CEO of MakerDAO, made an announcement on Friday regarding MakerDAO’s NewChain, a new blockchain that could be forked from Solana.
Though Buterin has praised Solana in the past, his decision to liquidate represents either a bearish outlook or a pivot to a yet-unannounced project.
Though Buterin has sold off all of his MakerDAO tokens, his “Simpsons”-themed crypto, MakerDOH, remains untouched.
☕️ Crypto Casino Loses $40 Million 🎰 🔻
Stake, a crypto gambling platform backed by the rapper Drake, just lost over $40 million in unclear transfers.
There were several shady transactions on Monday morning, with $16 million in ETH, Tether, and USD being pulled off the Stake platform before another $25 million left via the Binance Smart Chain and Polygon.
Stake has yet to outright declare a hack, but crypto sleuths outside the company seem pretty certain something suspicious occurred.
🚨ALERT🚨Our AI-powered system has detected multiple suspicious transactions with @Stake.
address received about $16M in $ETH $USDC $USDT and $DAI
All the stable coins are converted to $ETH and distributed to different EOAs.
FYI: @tayvano_@zachxbt
— 🚨 Cyvers Alerts 🚨 (@CyversAlerts)
Sep 4, 2023
Drake couldn’t be reached for comment, but we can be reasonably sure this was not “God’s Plan”.
☕️ Dating AI 💋 🤖
As artificial intelligence has evolved, we knew it was only a matter of time before people started dating these things… and here we are.
Several services, including Forever Companion or Forever Voices AI, have popped up allowing users to date AI versions of their favorite online celebrities.
Noteworthy inclusions are Twitch and Snapchat influencers like Kaitlyn “Amouranth” Siragusa and Caryn Marjorie, in addition to Adult Film Stars Brandi Love and Adriana Chechik.
The AI conversations cost between $1 to $10 per minute, but include actual, personalized voice messages based on the user's responses.
What these companies are selling is an idealized fantasy. If AI were actually your girlfriend, it would realistically shout at you for showing up drunk to its mom’s birthday dinner.
Spilling the Beans
Will Bitcoin Become Amazon 2.0? 🔥 😳
Look around you. How many of your appliances, groceries, or even books came from Amazon?
With Amazon’s massive, ubiquitous presence among American consumers, it’s hard to remember that Amazon, just like any other company, had its obstacles and hiccups.
Amazon, once just a humble bookseller based out of Jeff Bezos’s garage, rode the dot-com boom of the 1990s into prominence.
In the early days of the internet, Amazon established a key foothold that would make it the streaming giant it is today.
By December 1999, Amazon was worth 50 times the value of its IPO.
But the dot-com boom wasn’t all roses.
Yes, Y2K turned out to be an urban legend, but soon after early internet users breathed a sigh of relief, the dot-com bubble burst in March 2000.
Amazon was hit — hard — and lost 90 percent of its value in just two years.
And we’re worried that Bitcoin is about to undergo a similar trajectory.
There’s a clear parallel. The excessive enthusiasm of the dot-com era resembles the hype train we see in crypto.
And of course, the internet had its early adopters and rabid supporters, but there was governmental pushback as policymakers were unsure how to regulate this new and unfamiliar industry.
But people like Bloomberg Analyst Mike McGlone believe Bitcoin may mirror Amazon’s trajectory more closely than any of us could have imagined.
And it’s not going to be pretty. McGlone believes that Bitcoin’s price could drop to lows of $10,000.
Bitcoin’s been on the decline since August. Nobody was expecting a bear market as Bitcoin blasted into the mainstream.
But unfortunately, that same mainstream presence has made Bitcoin more vulnerable to the waves — good or bad — of the broader market.
'It Went Up, So Will Keep Going Up' Risks in Bitcoin -
The lessons of high-performing, widely hyped assets show price reversion may be the greater risk once the masses jump on board. #Bitcoin at about $26,000 on Aug. 28 is slightly below the end of 2020, similar to… twitter.com/i/web/status/1…— Mike McGlone (@mikemcglone11)
Aug 28, 2023
According to McGlone’s take, it’s a classic case of too big, too fast. Bitcoin is worth 26,000 times its $1 trading value from when BTC entered the scene in 2011. That’s twelve years of explosive growth.
And it seems even more startling when you consider that Amazon, which still felt like a skyrocket, only increased 130 times in value… in twenty-five years.
We don’t want to buy into McGlone’s take, but it’s pretty compelling. On one level, what goes up, must come down. And it’s always solid analysis to look at previous, similar market cycles to anticipate future patterns.
Bitcoin could drop to $10,000, yes, but why does that make us feel good instead of bad?
Because even though it’s a cataclysmic price drop, we can’t help but feel that things are going to turn out alright.
Imagine how you would feel if you had sold all of your Amazon stock when the dot-com bubble burst. Today, you wouldn’t just be kicking yourself, you’d be inconsolable.
Amazon turned out alright. More than alright. And we’re feeling pretty certain that Bitcoin will be just fine, too.
Who knows, this time twenty years from now, you might be saving 30% on a mattress-sized air fryer on Bitcoin Prime Day.
Premium Market Report
DeFi
Protocols
Sources: DeFiLlama - Total Value Locked (TVL) - Lido (LDO) represents one of the largest DeFi protocol
Public Chains
☕️ Our Take:
Overview:
Meme of the Day
“Started from the bottom, now we’re financially ruined…” 🙏 😅
When you want to let her in but her crypto transfers are suspicious. 😞 #stake#drake
— Coffee & Crypto Daily (@GetCoffeeCrypto)
Sep 5, 2023
Crypto 101
MakerDAO: A decentralized organization built on Ethereum, working to stabilize the crypto economy by establishing bridges between blockchains.
The Last Sip
The Last Sip: If Drake were to release hit singles reflecting on his emotional state following the potential Stake hack, they would be:
3. “Headed to the Bottom” (now we’re there)
2. “Our Loss” Feat. 21 Savage
1. A feature in Travis Scott’s “Sicko Mode” discussing Xanax use. Not for air travel, but for coping with feelings of crypto-related anxiety.
Stay Caffeinated,
Coffee & Crypto Team
That's all for today! If this email got you hooked on our unhinged crypto takes, be sure to get a full dose on Twitter @GetCoffeeCrypto.
Want cutting-edge market analysis delivered to your inbox three times a week? Sign up for Premium Roast! We'll cut through the BS floating around on Twitter and CNBC and help you finally understand the markets, all for the price of a single cup of coffee.
If you find yourself smiling at any of our dumb jokes, or even *learning* something - make sure to share this newsletter with your friends!
If you get 5 friends to sign up - or even enemies, we don't care - we'll send you our Bitcoin Bootcamp Ebook! This thing is packed with info and is the ultimate guide to the world’s ultimate currency.
Just hit the Click to Share button in the section below to get started!
What did you think of today's newsletter?It's ok, you won't hurt our feelings. |
DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.