Insights

Why is Crypto in the Red?

N+1 Analytics

06 Aug 2024 • 3 min read

In this edition, we explore Coinbase’s Q2 financials, a tool to detect AI, crypto in the red and more.

💥 Cutting Edge with Shoal Research

In collaboration with Shoal Research, this week’s edition will focus on Polymarket.

What is it? Polymarket is a decentralized prediction market platform that enables users to speculate on the outcomes of various real-world events.

What does it do? Polymarket leverages blockchain technology to create markets for users to trade shares based on the outcomes of events. The price of these shares fluctuates according to the general expectations of the market participants. The platform utilizes smart contracts to ensure transparency and security in the transactions.

What does it represent to larger crypto sectors? Polymarket exemplifies the potential of decentralized finance (DeFi) applications to innovate beyond traditional financial systems. It highlights how blockchain technology can be applied to diverse areas such as market forecasting and data aggregation.

Why is it interesting? Polymarket is particularly interesting because it provides a practical use case for blockchain technology that extends beyond cryptocurrencies. High-profile events like political elections and the Olympics serve as significant catalysts, driving substantial user engagement and trading volume on the platform.

Check out Shoal Research’s Substack and Telegram channel.

💡 Coin Spotlight: The N+1 HODL

In this segment, we dive into the N+1 Hodl basket and discuss our altcoins.

Coin: Render ($RENDER)

Sector: AI, Infrastructure

Narrative: Render aims to democratize GPU cloud rendering through graphics with “higher resolution and more interactivity”.

Fundamentals: The Render Network provides “near unlimited” GPU computing power for 3D content creation. Render focuses on network scalability, efficient infrastructure, better GPU power, and digital rights management. Render’s community voted in 2023 to move the Render project from Ethereum to Solana. As a result, Render created a new token called $RENDER to represent the project. Users can swap their old tokens ($RNDR) for the new one, 1:1. While $RNDR will still be traded on exchanges, it is no longer connected to the project itself.

Why do we hold: Render is a unique network that focuses on decentralized GPU rendering, offering content creators, ranging from social media to Hollywood productions, a different product.

Performance: $RENDER is down 5% YTD, according to Binance.

⏰ Crypto News Recap

Keep up to date with the latest in crypto.

Coinbase Q2 Financials

Coinbase released its Q2 financials on Thursday. In the report, it outlined lower spot trading volumes and a decrease in revenue by 11% compared to Q1. However, Coinbase still reported revenue of $1.4 billion, marking their third straight profitable quarter. Coinbase’s overall net profit for Q2 was $36 million. According to a shareholder letter, Coinbase indicated an expectation that Q3 subscriptions and services revenue would be between $530-$600 million as a result of ‘modest headwinds’.

Tool to Detect AI

On August 4th, the Wall Street Journal released a story outlining a highly reliable method to detect ChatGPT. Reportedly developed by OpenAI, the release is held back despite having been ready for about a year. OpenAI recently updated its blog posts, outlining that there is no anticipated date for release. The company mentions that they did not want non-English speakers to be ‘stigmatized’ against using the technology due to their text watermarking method.

Crypto in the Red

Selloffs have led to a tumble in bitcoin prices last weekend. With Bitcoin down 21% in 24 hours and the CoinDesk 20 index is down 12% in the same timeframe. While the reason for the decreased prices is unclear, there are speculations that it may be due to the Mt. Gox distribution, Bitcoin ETF outflows, Jump liquidating assets and the Bank of Japan’s increased interest rates.

📚 N+1 Recommendations

The N+1 reading and media recommendations are sourced from our team of experts and offer weekly suggestions for learning more about blockchain, crypto, finance and technology.

This weeks recommendation: Unchained - Jump Crypto Unwinding Positions