GMG and thank you for joining us here this morning. We're going to start the show in just a few minutes. We'll give it a few for folks to filter in. Get our speakers up on stage while we wait. Here are some tunes.
Good morning and welcome to the lucky lead. Today is Monday, March 13th. It's
Monday, what a weekend it was. This was one of those weekends, which felt like a lifetime, especially Friday, on top of all the craziness in the macro markets in a banking crisis. We had St. Patty's Day celebrations in Chicago, plus it's daylight savings time. We're all tired.
It was a tiring weekend. The good news for you is we followed the markets. So you didn't have to. I'm excited to get into all the action with you here today. I see a lot of our regulars out there shout out to the Jay Liz, Yannis, Russia, Amtis, Shark and others. As a reminder for any new listeners,
out there. We run the show every weekday Monday to Friday at 10 a.m. Eastern. It's a 30 minute show covering all the major news in crypto, web 3 and NFTs. This show is meant for those interested in discovering the space, those actively buying and selling in the crypto and NFT markets and those here just doing research.
I'm your host, Tyler D. I'm drawing by my amazing co-host, Ghost. Content star over at Lucky Trader, deep in the So Rare Streets, quietly a whale NFT trader. We've got Emily loves crypto, a Web 3 security expert and co-founder of the foolproof app. And today we've also got Logan Hitchcock, editor and chief over at Lucky Trader.
and rep in the LT account. Logan, good morning. How you doing? Hey, good morning. Doing well Monday morning excited to get going. Yes, there's a lot to break down on the docket for today. We're going to start with all the macro action. We're going to hit the silicone ballet bank shutdown, the USD DPEG.
that followed the Fed bailout news from yesterday, what impact all this has had on the NFT market. Plus, if we've got time, a first glimpse at the 12 fold outputs along with all the headlines, before we get into it, go see if you can take us through today's listener question. Yeah, let's do it, Tyler. So the question of the day today is what
If any, did you make this weekend in reaction or during the SVB USDC chaos that we saw? So we've got that pins on top there. We'd love to hear the reactions from the audience. And also a reminder, Tyler doesn't break break down every morning in his morning-minute newsletter. I've got that pins on the top as well, so give that a subscribe if you haven't already.
goes. Thank you for that. I am curious if any of our listeners made some moves myself. I didn't really make too many moves on Friday or Saturday, especially when it comes to crypto. Didn't make a few NFT moves on Sunday. Once I saw that match, you got out of get coin and actually made a get coin trade, but that was a bit of a dud.
I'm sure we'll get to that later in the show. All right, well, let's get into our top story of the day. It's Silicon Valley bank closing and then the USDC DPEG and all the weekend fallout. Friday is one of those days that felt like a year. The day started with rumblings of a run on SB
the US. There was panic. Later in the day, circle, the issuer of USDC shared that it had significant funds with SBB to the tune of about $3.3 billion USDC started to depag on that news and ended up falling all the way to about 87 cents.
and some panicked overnight trading before rebounding to about 92 cents on Saturday morning. As a reminder, stable coins are not supposed to do that. They are supposed to remain stable. So this caused quite a bit of panic, especially for those who thought they had done, you know, the smart thing by moving some
of their NFT proceeds, maybe some of their crypto proceeds over to USDC and they're seeing it fall every minute, every hour there on Friday night. So I'm going to pause there and maybe get a question out to some of our speakers. How worried were you during the USDC DPEG? Did you make any
moves, goes maybe I'll start with you. Yeah, so I mean, I find it really interesting to after being an NFTs and crypto for I've been in crypto for a while, but NFTs more recently, but I find it interesting how much more information I just feel like we know compared to like the general normie public and how quickly we know it compared to them. So like I saw the
the news about uh... usdc or people being worried about it uh... pretty early and swapped out of uh... the smaller bag of usdc that i had uh... when it was still pang at the time uh... so i i was definitely worried about it i don't think i was worried about a long term and i i i glad to see it back at one dollar and i think that it'll it
it seems like the bleeding has stopped, but it was good to have that my timeline kind of be full of people that were cautioning about that and feel like I was pretty early to the game. So good information there. Can I ask you, what did you swap to, do you swap to tether or? I actually just, I know that we love to keep it on on a off-ex
I went to Coinbase, swapped it into just US dollars and held it there. I was a little bit worried about ETH. I was thinking about going into Bitcoin because I feel like Bitcoin's got that great narrative now. Everyone wants to go there. ETH is, people are worried about it being a security, so I was tempted to do that. But I got a little bit of cold feet there and ended up swapping it straight to dollars.
Well, interestingly, you certainly weren't the only one. There were a few R opportunities Friday night. One was on Coinbase where they were continuing to redeem USDC on a $1 basis, even though it had already dropped to like 95 cents. They eventually did shut down that trade. And then I guess Robinhood kept the trade open even longer.
Apparently, some folks and some NFT discord were just printing, doing just an ongoing ARP exchange and repeating the process, just moving to USDC and back out. So there were some opportunities to make money on this. And I'm curious for your reactions because you were in a unique situation. You were in
Austin, perhaps with other NFT or crypto folks founders, I'm curious what the discussions were like Friday evening as this was all playing out. And so I didn't get to Austin until Saturday. Oh, okay.
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Yeah, but the USDC deep-hegging, you know, it got about as deep-hegged, a little bit, there was like a little bit of an overreaction, right? But it got about as deep-hegged as people were predicting was no longer stabilized. So even this
sentiment around it, I think kept it stable where they're like, oh, we know this many reserves exist. And it kind of maintained that price point. And I found that interesting. You know, there was an over exaggeration at one point. And that was the our opportunity that I think a lot of people jumped
Jumped on board to I the part that I find the most interesting about it is that people I think I think goes as a loan here most people were running to crypto instead of other stables And I'm not sure if that's because of like the continued
I think the reminder that bank runs can still happen even with FDIC insurance and FDIC insurance is kind of misunderstood. But I think that that
is an interesting point here where people, you know, this is really the first time that crypto has been put to the test in the reality of a bank run. I've found it super interesting to watch above all else. You know, as it turns out, they're going to make sure depositors are
whole, but not build a bank out, which I think is probably the right thing to do in every single one of these situations, if they ever happen, right? If a bank does something irresponsible, make the depositors whole, don't help the bank themselves. But I think it was really interesting to kind of put that pressure test in place.
It was and it was commenting on on some of the price reactions so we did see this Friday evening while USDC was depaging Ethan Bitcoin were both going up quite a bit So clearly there was some rotation happening there there was rotation to USDT as well, which I think
I think surged well over $1.00. I think I saw like $1.00 or $3.00 maybe even $1.00 or $5.00 or something absurd at peak before it settled. People had done the math. They said USDC should be around 92 cents based on the 3.3 billion number. That's debatable if that logic is fully complete.
it did pay. It was around 92 cents on Saturday morning. Saturday felt a little bit more calm Sunday, you know, folks were calling on the Fed to make a move. Then fast forward to Sunday evening, we did finally get the news that many expected that as Emily alluded to, Posters would be made whole by the
the Fed. There were three primary components to this announcement that came yesterday evening. One, the Fed would cover 100% of SBB deposits and deposit would have access to their funds starting today. Part two, signature bank was closed. Another bank closed in the middle of this announcement, although reassuring that those depositors would
also be made whole. And then part three, the Fed is standing up a new facility to provide additional funding and liquidity to banks under stress during this wider run called the bank funding term program. So this was the blockbuster news from yesterday evening. Crypto full sense on this news.
immediately ripped 10% to 1600 Bitcoin did the same running from 20,400 to 22,500 in just a few hours. Crypto, when I saw the prices this morning, they're still up there down a little bit from those local highs. I think one other storyline here is while some were celebrating this price action,
other started to realize the full implications of that Fed announcement and essentially in one week all the primary crypto friendly banks had been shut down. 6.529 had a tweet about this, basically said in one week, Silvergate signature and Silicon Valley bank all closed. These were the three most plausible
banks from which crypto businesses could get fiat banking in the USA will be interesting to see what happens next. So there's a lot to unpack here, certainly. Some good to see the depositors being made whole, certainly some some negative news here with significant
your bank getting shut down. Emily, I mean, although it's right back to you, as a founder in the crypto and NFT space, how do you feel about Operation Choke Point? And this is what crypto companies are supposed to do now at the primary crypto friendly banks have all been shut down.
Yeah, so I think this is kind of an interesting one, right? Like it's there's almost a component of like forcing projects that deal directly in crypto to put their money where their mouth is right where it's like, all right. You want to play the crypto game play the crypto game and at the same time that's
That's basically furthering adoption of cryptocurrency, which seems like that's not the goal of the government in this case, right? And I'm not sure exactly what type of regulatory loopholes banks need to jump through in
order to do crypto banking or sort of like an advanced relationship with a broker that many banks don't find equitable but you know the couple out there did like I just like don't have the details I can only really speculate on it but it it seems as if that is a very short
excited move. And I think that there's interestingly enough, like a lot of companies have have have surfaced that are offering traditional type benefits to people that get paid in crypto in a way for the projects that are, you know,
operating entirely in crypto to make those benefits available to their quote unquote employees. But yeah, it's kind of, I don't know, it's kind of like, you know, if you're if you're going to force the hand of the people that are operating this space to become more and more unbanked,
or underbanked, then you're not having the financial control that you expect to have. And I think that there's a sentiment that's going to go along with that, that's going to cascade, and it's not going to be in a direction favorable to fiat currency. People are going to look at this, and they're going to say, well, crypto
maintains value in this scenario and anytime like a government displays instability it makes crypto more desirable if you're talking about fiat right like government backed currencies so I'm not sure that they're really making these moves
with the amount of force that it required, but also I'm not entirely sure what triggered the collapse of silver gate bank. Sure. Yeah. No, I think it's a mystery that we can sit here and like, let's load all the cards and like, I don't really know what they're going to play next. Yeah. Yeah. I don't know the finer
details of it either. I think you make a really interesting point that perhaps Operation Choke Point has won a battle here, but lost the war, we very well might be at a pivotal point where maybe some crypto companies who were kind of doing both and operating with crypto and normal banking
Fiat or just kind of cut the cord and just go full bankless. And for those who are crypto maxi's, that's probably the best outcome here. And there's going to be some bumps in the road. So it will be interesting to see if that is the ball is in motion there for that movement.
I think we touched on this as well. The other takeaway I had from this situation is this whole concept of social media risk and how quickly news breaks and can move into action. So I go saw this, go salute this, he saw the news breaking on Friday. He thought USDC
might be in trouble. So he moved his funds. It's similar to what happened with banks across the country, right? People saw what was happening with SVB. They are pulling their money at lightning speed. We've never seen this happen at this rate before. And that was what triggered concerns into this weekend about a wider spread bank round. And now it seems like some of these banks might have to have
social media risk in their risk management office and be conscious about getting out in front of it to stop this type of thing. Also in some breaking news this morning several bank stocks were halted in trading this morning based on some volatility in the markets. And on that news, crypto has sent even more
Both Bitcoin and Ethereum up as we speak Bitcoin touched 23,000 816 40 as we speak so we are in for some more volatility today I want it to move on and talk about the NFT market impact of all this action before we do that
writes charter as a sort of constitution for the digital realm and era along with a free-demand NFT to celebrate the launch. Pixel Vault released at the Battle Paper, its white paper, for its upcoming inhabitants PVP game called Battle Plan. On-chain Monkey announced Dimensions, a new animated 3D collection coming on Bitcoin, and available only
only two O.C.M. holders. Strands of solitude was the big winner in the art sector, maybe of all of entities on the weekend as William Mappas new products soared over 200% from a two-week meant to a 60th floor I'm hearing it might be 70th as we speak. In other news, the proof team sure that they had significant bonds with SVB
as other NFT teams also began sharing the status of their treasuries. In crypto, we touched on the crypto price as they are up blurs at 51 cents. It's up 8% and 8 with a huge rebound at $44.30. It was down in the mid threes there at
one point over the weekend and other crypto headlines, Binance will convert $1 billion worth of BUSD stablecoin to Bitcoin, Ether, B&B and other tokens. And then Gary V and V friends release new details for their upcoming Vcon conference. All right, those are the headlines. Let's get into the NFT market impact.
Saturday morning was bad. So the crypto panic came Friday night. It clearly bled over into NFTs by Saturday morning. Some notable price action from Saturday that I captured a zookey's were at 13 down 6% moombas at 4.9 down 24%. The Pudgy Ping-Lens were at 5 doodles at 4.15. They're down.
14% clone X was sub four at 3.98. It was down 7% get coin was at 0.13. That was down 57% on the day. The momo girl haul self at 0.2 down 26% Mochaverse held a little bit stronger at 1.33. So it was
That's certainly a blood bath there. It does seem that most have started to recover. Taking a look at the blur board this morning. We're seeing a lot more green. It seems like most P.F.P.'s products are still down about 5% to 10% on the week, but overall not in terrible shape.
Reddow punks are standing out right now as kind of that the primary rock and all this their floors at 67 ETH up on the week one of the loan projects perhaps the big winner. There's a lot to unpack with the anti action with what happened to to Moonbirds with what happened to get coin and matchy
But maybe let's start with the SVB related news and with proof. So proof was one of the first NFT teams to share that they had funds at SVB. It turned out they had almost 50% of their capital with SVB. I'm curious for our
All of my time on this weekend besides the SVB news was like people posting screenshots of how Moonbirds was down bad and how proof was doing. And so it's just really rough. I appreciate the transparency. I think I would rather have them share it from a personal standpoint. As if I was a holder, I don't know how I'd feel about that, but it's always good to be more transparent, I think, at the end of the day.
But yeah, it feels like they've reached one of those kind of precipice moments where we've talked about it before where like no matter what they release there's just too much negative sentiment out there right now for that price really to go up. And we also saw like you mentioned like there was one big whale kind of dumping off their moonbirds this weekend, which was kind of really playing with the
price action there. So just a rough week for them overall. Yeah, bad timing for that whale. It seems like the entire price action actually may have been driven by that one single person as opposed to this news. But of course, there might have been more by pressure without the news. Logan, you know, I know we were running a live blog covering all
the NFT projects and their situation with SBB, do you have thoughts or takeaways from the situation? Yeah, I think the interesting thing that I wanted to point out here is we've been talking a little bit about projects and what level of transparency is required on the back of really that proof announcement from a few weeks ago. So this is
interesting they kind of got put right into a fire drill on it. I do think it's good that they shared and it led to a lot of project sharing way more actually in this instance than did when the FTX thing happened. I think we have like, I don't know, close to 30 projects or maybe more that indicated whether or not they had exposure to SVB. So I'm glad they
they did so in some way. I don't have a super strong take, you know, beyond that. I'm glad the transparency flag is being passed around. But yeah, I mean, so many, so many projects were willing to come out and speak on it, really led by proof who was very, very proactive.
near like right at the drop of the announcement. I think my biggest surprise was that there's 30 teams in NFT space who might have $250,000 or more that they feel like they need to make a statement. I didn't know that many teams still had funds at this point of the bear market. Go straight to your hand up thoughts on this.
I add the transparency point is wouldn't it be nice if we had a block chain of stores where we could actually prove and see whether or not they had material exposure to SVB because like we're just trusting that when these people tweet saying oh we had barely any exposure we don't know what that really means so it kind of gives me more more hope in the future of the blockchain there.
I mean, I think it's that existed. We did have a we have that disclaimer in in the post as well as because this is not on chain. We at Lucky Trader were not independently able to verify the statements. So, you know, depending on what is said there, we're just taking the the team's word for it for most parts. The best thing
we can really do. No, I think it's a great example from proof, right? Like they made the announcement they got in front of it. That was great. I don't think that first announcement gave the impression that it was 50% of their funds and had that been a part of the first one, right? It could have been bigger fallout than it was.
that they reserved that for when the situation fell a little bit more safe. But maybe switching to the larger market here, how are folks feeling about just the macro situation, about how blur farming is impacting the market with the coin dropping?
We've got Spencer, the lead of Spencer Ventures. He tweeted a few times on Saturday that blurbed farming is starting to look attractive again. Also that he loves the smell of capitulation in the morning, referring to some of the dips there. I'm curious for your reactions
as an active trader, are you more interested in farming or any of these NFT prices starting to look attractive to you? Are you more worried about some volatility to come? You know, I tried farming for a couple days after we talked about it for like a season two, trying to get into it and that you got to just stick to what you know and that is just not how I typically trade NFTs.
like I am more of a long-term holder, I like getting into projects that I have like strong conviction in and it's just very unnatural for me to be constantly flipping in and out of things just for some blur points. So I'm kind of staying away from it even though I not necessarily because I don't think it'll be profitable, but just because it feels very unnatural to me and I didn't enjoy it.
That's fair. I do think the contrarian take is to start farming now. The popular move was to rush to blur farming day one of season two. That's when everyone did it. Now volume is at its lowest levels since this began and no one wants a part
of farming. So now is the time to do it. And you're going to have a lot less competition, perhaps a bigger stake of the rewards. People are pointing to the price of blur and how much it's fallen as you know, maybe the incentives aren't as good as they once were.
Certainly, we will see how this continues to play out this week. Logan, you got your hand up thoughts? Yeah, I was actually just going to share that exact thing. I saw that Machi is no longer trading the get coin. Is that right? And just a lack of overall competition is really
the key benefit to potentially farming. One other note from my perspective, I'm not also one of those traders, so that's just not the way that I'm going to play. But the prices did start to get pretty attractive on some of the fall down over the weekend. At one point in time, I think you could have had a moonbird
a doodle and a clone X, a basket at the floor for around $15,000. Which I know is a lot of money, but if you're making a macro web 3, getting a group of those three for $15,000 at one point, they all were trading for far, far,
know, beyond that price. It was just kind of crazy shock to see that price attached to such a collection of former, maybe former blue chips. Yeah, the price tag is shocking, though, that would not be the basket. I would be building. That's my bet right now. Emily thoughts.
My client was actually in regards to Machi. I thought re-entering get coin. I'm like looking for where I read that, but I thought that he re-entered the get coin trading again. So he sold off at one point. So at max, he had like 2800, he had 30% of the collection.
He got down, I want to say like all the way to zero, but then he started bidding it again. I'm gonna see if we can pull up the stats. While I'm trying to pull that up, it have teased statistics. Sam, he had a good tweet yesterday. If you were then six days, Gidcoin has done more total trades than the Bored A/Biat Club has done over its entire lifetime of 621,
620 days, 33,461 versus 33,246, which is a pretty absurd statistic there. I'm pulling up the owner's list now. Machi is not in the top 10 or the top 20 of Github. So it's looking safer, but the market does not seem to interest
It feels like the damage has been done. I wanted to talk about Ape versus Punks and kind of what's playing out along with the Ape coin release that's happening soon before we do that. Go as well and you quickly take us through the NFT market headlines. Let's do it. Here's some of the top market headlines from the weekend powered by Lucky Trader.
Brain drops, air drop to all AI are looks the same this weekend to top collectors with the collection featuring works from the first 14 Brain Drops artist. The floor opened up at 4.269 ETH so a great air drop there. Brain drops also had a new material mania which minted for 0.2 ETH and instantly jumped 350% to 0.75 ETH floor.
Gunnercat Gang teamed up with Spotify to launch the official gutter shop as a storefront to sell gutter merch and the prices were pretty wild there. We saw hoodies for $175, sweatpants for $145, Gunnercat Plus toy for $95, so some bull market prices there. Tyler mentioned strands of solitude
as a big winner earlier this weekend but the artist himself joined in on the fun purchasing output number 110 for 16.9 ETH. William Mapan also tweeted that he's coming for anti-cycloan his other project in our blocks and that collection has been on a run of its own up 35% to a 9 ETH floor over the last week and if you're wondering how the NFT market was reacting
Back to this weekend's bank scare, NFT stats, who we mentioned earlier had a great statistic this morning that on Saturday there were only 11,348 distinct wallets buying NFTs, which was the lowest number since November of 2021. And finally, Clayno Sour, shout out to Logan who loves his clay projects. An ancient one of one gold sold this week.
for $17.50, which is $35,000. So a nice big sale there in the Salona ecosystem. Just an absurd sale over on Salona. That Amtis statistics stat is also crazy to lowest number of distinct wall since November 21. Wow. That shows you the impact of
the crypto volatility on the NFT market there in just one statistic. Earlier, we got just a few minutes left. I want to touch on Punk's versus Apes right now. And it is that the UGA ecosystem in a state of turmoil, so to speak. We've got a couple major events happening. We've got
the summoning happening this week on the 15th. I believe there's an ape coin unlock happening sometime as well. I know Emily has maybe some thoughts on that. What also stuck out to me is OSF, right? OSF and Mando famously dumped their 71 board apes just a few weeks ago.
OSF is back at by he's buying a punk, not an ape. So his first major PFB by Since the Sale is a 3D glasses, punk it is a nice looking punk. Is that a slap in the face to the to the board ape ecosystem overall?
And that holder base, I have to say I'm a little bit surprised with that move and how it might be received. I know you want to talk briefly on the the April rewards coming or the reduction in those. Do you have thoughts on that situation or maybe the whole kind of Yuga eco right now?
Yeah, I mean, we saw the 12-fold art reveal, right? And the the UGA, the ape speaking rewards reduction, which was expected, but as usual, immaculate timing on behalf of UGA. So I'm not sure if
I'm not sure how close attention people really are paying to that. There was obviously the initial upsetiveness with a staking that you could have your 8 coin or your 8 coin is definitely tied to your U.K. assets and that would, you know, you could potentially
cell, your asset with the coin that you've accrued through staking. And now that there's the reduction in staking, it seemed like it just was never really a highly discussed topic in general. Like I only have two direct contacts that talked at length.
about a coin staking. And you know maybe it's because the price itself hasn't been as exciting lately as it was around the other two lunch and even with the dookie games dookie gash but I think it's I think it's significant because the
narrative for a minute there was like, oh, I'm just going to double my assets into 8.8 because I make tons of money on it for X amount of time. I don't want that news to fall under the radar.
And they watch the whole ecosystem move together and take opportunity when the government makes it for us. And I guess if any of them are in the government, but when a bank's drama, which deeply affects the cryptos here, makes that happen as well, it's interesting.
important one to watch this week. We'll like to try to get it breakdown together over at LT goes you got your hand up and then we'll close things. Yeah I just wanted to talk a little bit about the discourse around the the 12fold reveal and I saw you commenting on a NFT stats post saying that you glossed over the fact that
the art was going to be a collection of 25 different series of 12, which I think a lot of us did because I didn't realize that. And we saw some of those, I guess, lesser desired, you would say series they're getting posted repeatedly being like, oh, all of this art looks the same. So I don't know if that was a fault of you guys
or if we all just didn't read close enough to see that, but I felt like there was a lot of food on the timeline that the art wasn't great. And so I think we're going to get a really interesting stress test here, kind of what we talked about, are people buying this almost as an artifact of yoga moving to Bitcoin, or are they buying it for the art?
Yeah, that is an interesting storyline. I'm sad we didn't have enough time in today's show to unpack it. I think we'll revisit it tomorrow. Hopefully we get more glimpses of the art and maybe some some more insight into potential price action on secondary. I don't even know if there's a secondary market set up for these just yet. Hopefully we can dive into that today.
But folks, we are over time here. Before we leave, what's dropping today? We've got the memes by 6529 at 11 a.m. Our block presents Coalition by Jerniv Artworks at 1 p.m. Eastern Elements coming at 12 p.m. Eastern, Pettiverse coming at TVT time. Here's today. Most likely it's going to be now.
The other volatile day in the NFT market is giving everything going on in the macro. The R-Plot's drop is interesting. It has just a 36 supply, but with that low supply, you can throw out most of the normal rules. Once it starts minting, it's going to go fast. With these low supply collections, in return, the liquid would very fast. Peniverse very well might be the mint of the
day at that 0.15 evening price. So that would be one to watch. That is it. That's our show for today. We'll be back tomorrow at 10 a.m. Eastern. Thanks to our listeners for tuning in. Thanks to my co-hosts. Everyone enjoy your Monday. Let's make it a great day.