Plus: Robinhood desires to ship you money IRL
GM. At this time’s market seems like a fruit cocktail: a bizarre combine, however we’re right here to ensure it’s well worth the sip.
🥊 Dealer vs Hyperliquid.
🍋 Information drops: Robinhood will launch DoorDash for money, Binance exec spills the tea on his time in Nigeria + extra
🍍 Market taste in the present day
Concern walked again into the chat, and main cryptos are slipping.
Why? Tariffs.
(What a shock… as if it hasn’t been the explanation for like a month now).
Donald Trump introduced a 25% tax on all automobiles and automobile elements coming into the US.
That’s an enormous deal for the reason that US imported round 8 million automobiles final 12 months, price about $240B – principally half of all automobiles bought within the US.
Trump says this will likely be nice for the American automobile trade – extra jobs, extra funding…
Nevertheless, consultants are like, “uhh… yeah this can prolly backfire.” They assume some US automobile factories may quickly shut down, automobiles may get dearer, and US buying and selling companions may get fairly mad.
And it is just the start – Trump plans to announce much more tariffs on April 2.
In actual fact, he is already throwing palms: Trump warned that if the EU works with Canada to do financial hurt to the US, he’ll hit each of them with even larger tariffs than he’s already deliberate.
Humorous timing right here btw, since this rant got here simply days after some analysts had began to consider the entire tariff factor wasn’t gonna be as dangerous as feared + uncertainty will finish.
The Kobeissi Letter by no means purchased into the calm tho’ – they have been warning that issues will prolly get even messier.
Right here’s what they imply:
Markets obtained too chill now: for the previous week, there weren’t any huge tariff updates, so traders began pondering the worst was over. That every one went out the window in the present day with the automobile tariff announcement tho’;
The tariff uncertainty will not finish with the announcement: Barclays is warning that these tariffs may hit as much as 25 international locations – they usually’re anticipated to reply with their very own taxes. So, we have a possible commerce warfare looming;
Trump’s not attempting to keep away from ache. His thought appears to be: undergo now, win later. And with inflation nonetheless operating scorching, the Fed may simply roll with it too.
An entire lotta mess, principally.
BUT right here’s the enjoyable half (kinda): whereas inventory markets are tanking ($400+ billion misplaced in tech alone this week), Bitcoin and different cryptos have truly recovered over the previous few days.
And if tomorrow’s inflation report appears good, we may go even greater.
Plus, folks on-line are feeling bullish too – Santiment says for each 1 unfavorable crypto put up, there are 18 optimistic ones.
A part of this good temper comes from establishments getting concerned in Bitcoin:
GameStop is investing in Bitcoin (as we talked about yesterday);
Bitcoin ETFs are nonetheless getting inflows;
And a European Bitcoin treasury firm known as The Blockchain Group purchased 580 extra BTC.
So yeah, crypto’s kinda displaying energy proper now, however let’s not get too cozy. It may all change once more tomorrow on this financial system.
🥝 Memecoin harvest
Think about explaining to your accountant that your greatest win this 12 months got here from these:
Knowledge as of 09:00 AM EST.
Take a look at these memecoins and lots extra right here.
As soon as upon a time (which is like, now), there was Hyperliquid – a decentralized alternate the place you’ll be able to guess on crypto costs going up or down (these are known as perpetual contracts or “perps” in the event you’re one of many cool youngsters 😎).
It was having an excellent time on Earth – till sooner or later (yesterday) its peace was disrupted by… an evil dealer.
Right here’s what went down:
First, the dealer opened an $8M quick on a memecoin known as JELLY – principally, he was betting its value would go down.
Then, he eliminated his margin – the cash you are supposed to depart within the commerce to show you’ll be able to cowl your losses – which principally dumped the commerce into Hyperliquid’s vault (aka HLP);
Now, HLP had no alternative however to carry the quick – preserve it open, pay curiosity, and threat getting wrecked if JELLY’s went up.
And guess what this difficult Ricky dealer did subsequent?
YUP, he began pumping JELLY – despatched its market cap from $10M to over $50M in lower than an hour.
Kachow – HLP was now down $12M on paper.
Then, a second pockets got here into the equation, opened a protracted place (betting the worth would go up), and made $8.2M.
Now, if JELLY had hit a market cap of $150M, all the HLP vault may’ve been worn out.
So the Hyperliquid crew had to select:
Let the protocol burn within the identify of decentralization…
or
Step in and hit the emergency button.
They picked the button.
Validators delisted JELLY, modified its value manner down, and force-closed all open positions.
Everybody besides the suspicious wallets obtained routinely refunded, and what may’ve been a $12M catastrophe was a $700K revenue.
As for the dealer? He put in $7M, pulled out $6M, and nonetheless has round $1M that he’s at the moment unable to withdraw.
(And may by no means get again, relying on how Hyperliquid performs it.)
The ethical of the story:
Decentralized perps can get actually loopy – one dealer can push the entire system to its limits.
Hyperliquid reacted quick and saved the vault – but it surely additionally left folks questioning:
How decentralized is “decentralized” when issues go the improper manner?..
Now you are within the know. However take into consideration your pals – they most likely do not know. I’m wondering who may repair that… 😃🫵
Unfold the phrase and be the hero you recognize you might be!
🍋 Information drops
📦 Robinhood’s cooking up some new options, and one in every of them is money supply straight to the doorstep. Yup, like ordering a pizza.
🤨 A brand new ballot exhibits that Argentinians don’t belief President Javier Milei anymore after the LIBRA memecoin scandal. Nonetheless, his political social gathering – La Libertad Avanza – is holding robust heading into the subsequent election.
📢 Crypto corporations are asking Congress to inform the DOJ to again off. They are saying the way in which the DOJ is dealing with the Twister Money case is manner excessive – and will put any blockchain dev vulnerable to getting charged only for constructing stuff.
⛓ Binance exec Tigran Gambaryan spilled the tea on his 8-month “keep” in Nigeria. He says the federal government principally held him hostage and used faux costs to try to get one thing from Binance.
📝 Trump may quickly kill off a rule that may’ve made DeFi protocols report back to the IRS. The Senate already voted to eliminate it.
