While most of our interviews are with price action traders who frankly don't care what asset they are trading, this week's interview is with H_Bitcoiner, who is best known for his fundamental analysis and investment theses.
In his piece, @jimtalbot looks at how range-bound environments influence liquidity leading to explosive external moves, while @coldbloodshill gives us the rundown of ArtGobblers, the new NFT project from Justin Roiland and Paradigm.
Enjoy!
alpha
Partner: MEXC Global
MEXC Global trading platform is Alpha Mail’s preferred trading exchange, providing fast and secure digital asset trading.
Sign up here for up to $9,100 in trading bonuses and 30% off fees on over 1,500 pairs.
Interview: H_Bitcoiner
Symph shares his thoughts on fundamental investing in the crypto space, the importance of a risk-balanced portfolio and managing get-rich-quick expectations.
Jim Talbot: The Instigators Have Left The Building
I constantly read people's theories regarding current market conditions.
“Whales are supporting price to offload spot.”
“FTX is playing games and taking everyone's money.” etc etc
The reality though is more likely as follows:
It boils down to a huge withdrawal of participants, no one is throwing size around. We are at an inflection point in my opinion where everyone who wanted in, is in. Anyone who wanted out is out, and now what's left is a few stragglers betting on price.
There is no incentive to sell at these prices for people still holding strong.
People are waiting for the next catalyst but often the best catalyst is simply time. When anyone positions within a tight range like this, it will inevitably resolve itself through time irrespective of any sort of catalyst.
If demand keeps dwindling to the point that buyers can't really establish an uptrend, then the more longs that enter within the range, the more liquidity builds up under the lows and vice versa.
If this slow bleeds into those lows and everyone's still got their stop loss below, once all the buyers are exhausted from positioning, those stops will instigate an expansive move, this is true for a break to the upside too. This is why I always say “the longer the compression, the bigger the expansion.”
What's more, as the range contracts and volatility dissipates, people are more inclined to take poor positions due to impatience. When that happens, stops get tighter and tighter and you eventually reach a breaking point where you get a volatile move.
Jim
CBS: ArtGobblers: The Hype Injection
A project by Justin Roiland and Paradigm is enough to get the blood pumping at the best of times, but what’s special about Art Gobblers?
We know there are so many great artists in this space, but largely they go unnoticed, Art Gobblers aims to bring art to the masses through "a self-sustaining ecosystem centered around creating and collecting the coolest art in the universe.”
The best way to think about the project is that it’s a decentralized art factory.
“Gobbling”
The initially free mint of 2,000 animated Gobblers will, exactly as they sound, gobble up art into their belly galleries (stay with me here.) Over the next 10 years, 8,000 more Gobblers will be minted until the full 10,000 collection is complete.
Gobblers produce Goo. Goo is used to purchase blank pages. Blank pages must be purchased to create art for the ecosystem.
This is all great prelude text, but where does the hype come in? Well, it’s a combination of the team working on the project, the audience reaction and the flywheel effect they hope to have sprung to life.
The more publicity and focus Art Gobblers gets, the more they increase the cultural relevance of the project. If the cultural relevance increases then demand for “gobbled” art increases. If demand for art is increasing, more artists and artists with larger profiles will look to contribute work to the ecosystem.
What we’ll see is a powerhouse team looking to drive the cultural significance of Art Gobblers meaning more artists want to create work within the ecosystem, having to buy blank pages in the process to create art.
How can you get involved?
I suspect the initial 2,000 Art Gobblers are going to sell for a high ETH price. 8,000 released over the next 10 years is a real supply lock for a project and should mean that initial pricing is sustained throughout the process. So you’ll need to be prepared for that if you want to take part.
Is it going to be worth the fight and cost? In my opinion, yes.
The art that is gobbled is free to be used, merchandise, brands, the sky is the limit. If Art Gobblers is a success it should create huge demand for blank pages, you have a space for emerging artists to push for an audience and experienced artists to expand their reach further.
I have long been a supporter of 1/1 art and believe that the great artists of our generation and the next generation will come from this medium. For me, Art Gobblers is not only going to inject fresh energy into the 1/1 art market, but it’s going to drive an enormous amount of attention and visibility.
An ambitious but incredibly clever approach to capturing the attention and creativity of the art world could result in one of the largest NFT ecosystem shifts we’ve seen to date.
