Plus: Robinhood desires to ship you money IRL
GM. Right now’s market appears like a fruit cocktail: a bizarre combine, however we’re right here to verify 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 as we speak
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 vehicles and automotive elements coming into the US.
That’s an enormous deal for the reason that US imported round 8 million vehicles final yr, price about $240B – mainly half of all vehicles bought within the US.
Trump says this will probably be nice for the American automotive trade – extra jobs, extra funding…
Nevertheless, consultants are like, “uhh… yeah it will prolly backfire.” They assume some US automotive factories may briefly shut down, vehicles may get costlier, 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.
The truth is, 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 imagine 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 bought too chill now: for the previous week, there weren’t any huge tariff updates, so buyers began considering the worst was over. That every one went out the window as we speak with the automotive 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 – and so they’re anticipated to reply with their very own taxes. So, we have got a possible commerce battle looming;
Trump’s not making an attempt to keep away from ache. His concept appears to be: endure now, win later. And with inflation nonetheless operating sizzling, the Fed would possibly simply roll with it too.
An entire lotta mess, mainly.
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 really recovered over the previous few days.
And if tomorrow’s inflation report seems good, we may go even larger.
Plus, folks on-line are feeling bullish too – Santiment says for each 1 damaging crypto publish, 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 power proper now, however let’s not get too comfortable. It may all change once more tomorrow on this financial system.
🥝 Memecoin harvest
Think about explaining to your accountant that your greatest win this yr got here from these:
Knowledge as of 09:00 AM EST.
Try these memecoins and lots extra right here.
As soon as upon a time (which is like, now), there was Hyperliquid – a decentralized change the place you may wager on crypto costs going up or down (these are known as perpetual contracts or “perps” should you’re one of many cool youngsters 😎).
It was having a great 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 brief on a memecoin known as JELLY – mainly, 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 may cowl your losses – which mainly dumped the commerce into Hyperliquid’s vault (aka HLP);
Now, HLP had no alternative however to carry the brief – maintain it open, pay curiosity, and danger 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 an extended place (betting the worth would go up), and made $8.2M.
Now, if JELLY had hit a market cap of $150M, the complete HLP vault may’ve been worn out.
So the Hyperliquid crew had to choose:
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 means down, and force-closed all open positions.
Everybody besides the suspicious wallets bought mechanically refunded, and what may’ve been a $12M catastrophe became a $700K revenue.
As for the dealer? He put in $7M, pulled out $6M, and nonetheless has round $1M that he’s at present unable to withdraw.
(And would possibly 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 incorrect means?..
Now you are within the know. However take into consideration your pals – they most likely do not know. I ponder who may repair that… 😃🫵
Unfold the phrase and be the hero you’re!
🍋 Information drops
📦 Robinhood’s cooking up some new options, and one among them is money supply straight to the doorstep. Yup, like ordering a pizza.
🤨 A brand new ballot reveals that Argentinians don’t belief President Javier Milei anymore after the LIBRA memecoin scandal. Nonetheless, his political get together – La Libertad Avanza – is holding sturdy heading into the following 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 means 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 mainly held him hostage and used pretend costs to try to get one thing from Binance.
📝 Trump would possibly quickly kill off a rule that may’ve made DeFi protocols report back to the IRS. The Senate already voted to do away with it.
🍌 Juicy memes
