"Easy money will disappear" from Web3
GM, we take the latest Web3 news and translate it into plain old English - so you can stay up to date, without your eyes glazing over.
In today’s edition:
"Easy money will disappear" from Web3 (here's why that's kind of a good thing)
This messaging app wants to solve one of Web3's biggest security flaws
RESOURCE: Advice from Bitcoin Billionaires (In 8:30)
U.S. retail is betting big on the future of crypto
Terms used (click for translation):
Web3, Wallets, dApps, NFTs.
"Easy money will disappear" from Web3 (here's why that's kind of a good thing)
Now that global financial markets are drying up, Web3 is about to put on its noise cancelling headphones.
(Metaphorically speaking).
We mentioned it earlier in the week, but it bears repeating:
All of the noise created by hype projects with weak fundamentals are about to be silenced and shaken out of the market.
Sounds a bit grim, but shake outs have their upsides. This downtrend will be a proving ground for crypto projects across the board.
The weak will disappear and the strong will be tested.
And if you're thinking:
"Woah there, bud. That all sounds well and good...but let's back up a second. What are these 'fundamentals' you speak of?"
Good fundamentals to look for in a crypto project are:
High 'Total Value Locked' (TVL)
TVL represents how much money has been put into the project, that can't be immediately taken out. The more value locked, the better the long term prospects.
Active Wallets
The more wallets that are actively using/trading a coin, the stronger its user base -> the better chance it has of growing.
Number of Developers and Applications
Developers don't work for free. If a lot of people are actively creating apps (aka dApps) on a crypto network, it's an indicator that they think it's going to be profitable in the long term.
Total Number and Size Of Transactions
This one's easy: if a lot of people are trusting a network with their money - transacting frequently and in high amounts - this is an indicator of value.
And if you're getting all giddy and ready to do your own research, good news is - all of these stats can be found with a quick Google search.
Eg. [Project Name] total transactions per day.
Happy hunting!
This messaging app wants to solve one of Web3's biggest security flaws
Great products often solve annoying problems.
Email = no more trips to the post office.
The iPod = no more carrying CD's around.
Cher's 'Believe' = no more thinking there isn't life after love.
The more problems there are to solve in a market, the greater the opportunity.
Currently, one of the larger issues in Web3 is the security of community messaging apps, like Discord.
The blockchain analytics platform, Nansen, are coming in hot with a solution that could corner the Web3 messaging market.
Their 'Nansen Connect' app aims to keep bad actors out of communities, by requiring each member to connect their wallet and show they actually own an NFT from the project the community has been built around.
Users will be able to see the real-time holdings of other members' wallets - the idea being that full transparency will foster accountability within the community.
Will users be cool with disclosing their financial holdings within the groups they’re a part of?
Jury's out.
Our guess is: it'll all depend on how bad Discord's hacking problem gets.
Resource of the day
Advice from Bitcoin Billionaires.
(In 8:30)
U.S. retail is betting big on the future of crypto (nice!)
Ok, this is cool!
The business consulting giant, Deloitte, just asked 2,000 U.S. retail executives about their plans for integrating crypto payments, in store.
And get this: 75% of them said they're planning to accept crypto within the next two years.
Plus, 85% of respondents expressed their belief that digital currency will have exponential growth in their industry over the next five years.
Here's why this is exciting:
Once the infrastructure is built out, it's unlikely to go away.
This option to pay in crypto, in store, will act as a tangible and trustworthy on-ramp for the un-initiated.
Retailers aren't going to onboard into crypto if they don't see a future in it.
Future planning and long term investment from established businesses, amidst a massive market downturn?
We love to see it.
Happy Friday everyone!
🧪 Your Daily Dose of Web3
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Alright, that’s it for today!
Love to the family,