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Hi everyone. Welcome to NFT Daily News. Today we have a lot of news to cover with the first one being rumors of Celsuis being bought out by Goldman sachs and what does that mean to existing customers. Then you have sixty percent of CEOs calling for a recession, but there also are folks calling this situation an artificial recession which I completely agree with. There is also talks of a Bitcoin ETF, and I will share with you my thoughts on that as well as oil prices on the rise.
The first news is the possibility that Goldman Sachs might be looking to buyout Celsius Network. My thoughts on this rumor is that it does not really matter who buys out Celsius. And my personal take on Goldman Sachs is that this firm is not really trusted in the crypto space. However in the past, they backed companies like Poloniex back in 2018 and also Circle around that time frame. And they continue to make inroad in the crypto space so you are free to judge them however you like.
What matters for a majority of people in Celsius, which is the 1.7 million customers and the 500,000 active users on the Celsius network is whether they will get back their money. And these are my thoughts and opinions on what I think is likely to happen and what is not likely to happen. With that many users on the platform, offers are going to be looked at seriously. Investors looking at this deal are not interested in stealing customers funds via liquidating positions because that would be very dumb. What they are trying to access is what type of return can they get from this large customer base and that is represented by one word. And that word is cash flow. Cash flow on the interest they can gain and make from every transaction and this is what no one is talking about in crypto space right now except.
These customers might be able to afford buying other financial products in the future from the platform such as insurance, health care, or make crypto and stock purchases. Now the trick is what percentage of the collateral can the new buyer of Celcisus put in to help these 1.7 million customers. Maybe they can match from the bottom 90 percent of people and make a cheaper deal with the remaining 10 percent because that 10% would be too expensive. But that 90% of people is still above 1.4 million customers which is still very good. The new buyer can also play this bear market and tell customers that they will allow withdrawals when the market is lower so in that case it's cheaper to reimburse them back with cryptos. And for long term hodlers, you probably don’t care as long as you can get your money out eventually and take advantage of the next bull cycle.
Regardless, I think a buyer is coming so it is just a matter of time when customers will be reimbursed but again it might take a longer time due to market conditions. And related news is that rumor Alex Mashinsky, the founder, tried to leave the US last week, but honestly guys you should not care because it appears this deal is already handled by bankruptcy lawyers. And there is nowhere the guy can hide, especially in the crypto space. As long as the customer database is there, that is the important product because it is cash flow. One other benefit of this deal from my understanding is that Celcusis customers have already gone through KYC which also makes this customer database a goldmine. Again think cash flow because this is what these sharks are looking to get from the buyout. And though we are in a bear market, they are patient and they see this as potential to sell 1.7 million people a variety of products as an opportunity. So if I was an interested party knowing that there is that amount of people who have already gone through KYC, then I would be interested to know their income brackets. If half of the user base is bringing in six figures, then that is a really sweet deal. Even if it is half of their active user count, then that might not be bad at all. That would be the next step. So to summarize, it is all about projected cash flow. The 2nd good thing is that these customers have already gone through KYC which is really difficult getting people to do especially in the crypto space because quite honestly it just looks scammy having to take a snapshot of your government ID with your phone. And the last important thing is the income bracket. Now you might ask whether yields are going to be matched like in the past and I can take you no, especially in this market. Maybe expect between 1-5%. But those crazy yields are gone, and you should expect lower yields due to lower demands in this market. And maybe no yields depending on how this new buy is planning to restructure Celcius.
And under more related news in FTX trying to buy robinhood. This to me came as no surprise as I made a video about a month ago on how Robinhood layed 10 percent of their workforce and I see more especially if both the crypto and stock market sector slows down. FTX has deep pockets, but I feel that they are so over-extended with what they have already done by helping out BlockFi and Voyager so just keep FTX in your radar if you plan to short them in time of weakness. And though they do not have a stock, you can short their token. However, I do not give financial advice and I do not short or play with leverage so that is all on you.
Now let us discuss market conditions. An article by Yahoo finance discusses how sixty percent of CEOs expect recession by 2023. And I think we have already been in one for the past month. You already see less people on the road than usual. Mortgage applications have also fallen drastically. And there is talk of California wanting to give us $1000 stimulus checks which I think will cause more inflation especially in that state. And Cathie Woods from Ark Invest, her funds have lost more than half of their value already. She calls for deflation but that is really a play on words. Obviously the price of things will fall as the federal reserve raises interest rates. The only thing that impacts the cost of borrowing are these rates. Now if you are sitting on cash you can make some great purchases without any added cost and extremely cheap deals in stocks right now and soon to be real estate in the next several months. Aside from Cathie Wood, the majority of institutions like J.P. Morgan Chase and Goldman are also calling for a recession. But when everyone is calling for recession, it could be the bottom is in. But I don’t know. I personally am not ready to call the bottom until the federal reserve stops increasing rates. When that happens, it's time reassies things.
And quite lately there is talk about a Bitcoin ETF coming from Gray Scale by next week or two but quite seriously I do not see that coming especially in this market. The last thing anyone wants to see outside of the crypto space is digital assets rising in value compared to all the other asset classes. I think the next Bitcoin ETF will come ahead of the bull market as all other major crypto products were released telling you that there is heavy insider trading and speculation going on. And right now, I do not see that happening in this flat market.
And about Oil. I think oil has one more leg up before it comes down. And mostly that will happen sometime in July or early August amidst the gas holiday and the inflation money that California is looking to bring. All these things are inflationary so I see oil reaching a new high before the big institutions start selling to small retailers.
And that is all I have for the crypto minute. If you want to find technical and fundamental data on crypto projects, you can sign up to my Token Metrics Affiliate link. And if you like technical analysis you can also visit Tim over on twitter. And as always, liking, subscribing, and sharing this content goes a long way. Have a great day.
The information on this blog is not financial advice. Before you invest in cryptocurrencies, please speak to a financial advisor.
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