It has been a busy day in terms of news, so let us catch you up on the latest and greatest.
Today’s Agenda:
- Market Watch
- Highlights of the Day
- Developer Misappropriates $300K from Cypher Treasury
- The Meme Stock Frenzy
- Reddit Shares Surge Amid Meme Stock Frenzy
- Project of the Day
- Crypto Corner
- Market Sentiment
- Business & Political Insights
Market Watch
Top Gainers
- Pepe ($PEPE): +7.3%
- FLOKI ($FLOKI): +2.7%
- Internet Computer ($ICP): +0.4%
Top Losers
- Worldcoin ($WLD): -13.9%
- Render ($RNDR): -11.0%
- Immutable ($IMX): -9.1%
Trending Crypto Sectors/Categories
- PArody Meme Coins
- Solana Meme Coins
- Gambling
Total Crypto Market Cap – 2.364 Trillion
Fear and Greed Index – 64
Top NFT Sale
- CryptoPunks #608 Sold for 59.5 ETH
Highlights of the Day
Developer Misappropriates $300K from Cypher Treasury
Cypher, a privacy-focused project on the Solana blockchain, faced a significant breach of trust this week. Hoak, a frontend engineer from the core development studio mtnDAO, admitted to misappropriating $300,000 worth of tokens from Cypher’s treasury.
Official Response
In response to the incident, mtnDAO has accepted Hoak’s resignation and involved their legal counsel to address the situation. The team emphasized that it does not condone such actions and will implement measures to prevent future occurrences. While Cypher’s founders have decided not to pursue legal action against Hoak, they urged the community to remain vigilant in safeguarding the project’s assets.
The Meme Stock Frenzy
GameStop and AMC Entertainment have seen remarkable surges this week, each soaring over 160% in just two days. This rapid climb resulted in over 30 trading halts, underscoring the intense market volatility and frenetic activity surrounding these stocks.
Market Sentiment and Predictions
Analysts are divided on the implications of these trends for Bitcoin. One suggests that the GameStop rally could signal a potential rise in Bitcoin, though higher-than-expected US producer price data may hinder a significant Bitcoin increase due to inflationary pressures. Another analyst argues that the meme stock surge is an early phase rather than a significant market shift, noting that macroeconomic factors still play a crucial role in Bitcoin’s performance, which has become a more stable store of value.
Reddit Shares Surge Amid Meme Stock Frenzy
Reddit shares surged on Tuesday, marking their second consecutive day of gains as retail traders ignited a buying frenzy of “meme stocks.” This rally began on Monday when Keith Gill, known online as Roaring Kitty, reemerged, boosting the shares of GameStop and AMC.
Reddit’s Influence
Founded 19 years ago, Reddit was pivotal during the meme stock surge three years back, mainly through the r/WallStreetBets forum. Traders on this subreddit exchange tips and sometimes coordinate to influence stock prices. Following Gill’s post, mentions of GameStop soared on WallStreetBets, propelling the stock’s resurgence.
Project of the Day
Akash Network
Akash Network ($AKT) is a decentralized cloud computing platform built with the Cosmos SDK and running on the Cosmos blockchain. It enables server owners to connect with users needing computing power via the Akash Marketplace, facilitating the buying and selling of cloud resources.
Currently, $AKT boasts a market cap exceeding $1.2 billion, with its price around $5.1. Despite recent market downturns, $AKT has gained over 30% in the last 30 days. Over the past year, its price has surged nearly 1900%, reflecting strong interest in the AI sector. All in all, even though short-term volatility is expected, the long-term outlook for $AKT remains optimistic.
Crazy Day in Crypto
- An unofficial Solana memecoin named GME, created in February 2022 and unrelated to GameStop Corp., has surpassed $100 million in market capitalization due to the recent excitement around GameStop’s stock price.
- Roaring Kitty, aka Keith Gill, made a surprise return to social media on May 13, 2022, sparking a frenzy in meme coins and GameStop stock with cryptic posts hinting at renewed market activity.
- GameStop’s stock saw remarkable gains, outpacing Bitcoin’s yearly returns in a single day, and as profits move from meme stocks, there’s a possibility of some capital flowing into altcoins, potentially sparking a new bull run.
Market Sentiment
- Former SEC Chair Jay Clayton expressed concern for retail investors amid the resurgence of meme stock rallies, stating that this trend is “certainly not investing.”
- The State of Wisconsin Investment Board (SWIB) has invested $99 million in BlackRock’s Spot Bitcoin ETF, underscoring the increasing institutional demand for regulated bitcoin investment products.
Business Talks & Political Insights
- Vanguard Group plans to appoint a former BlackRock executive, key to launching BlackRock’s bitcoin ETF, as its next CEO, despite Vanguard’s public skepticism of cryptocurrencies.
- Federal Reserve Chair Jerome Powell acknowledged higher-than-expected inflation, suggesting patience with restrictive policies and indicating that rates are likely to remain at their current level based on current data.
- In a span of just two days, short sellers of GameStop ($GME) and AMC ($AMC) have experienced substantial losses amounting to over $5 billion.
AMC Entertainment raised approximately $250 million in new equity capital through a stock sale on Monday, capitalizing on the renewed meme stock craze spurred by the return of Roaring Kitty.
