Briefing 3/4/23 – The Forecast

Briefing 3/4/23

Briefing 3/4/23

Bitcoin has found new significant resistance at $25,000 and is retesting major support at $21,000 to $22,000. Investors are de-risking from digital assets due to Tether and Bitfinex possibly engaging in illicit banking practices. Stablecoins and larger-cap altcoins are proving to be systemic risks for the global financial system. Should a large project like Tether see a Terra Luna-style collapse, it will likely have a cascade effect on the broader financial system. With tensions rising between the east and west, this could be a new way of conducting economic warfare.

One of the major headlines coming from crypto news publications is tokenization, and we are seeing firms such as Goldman Sachs and JP Morgan explore this nascent technology.  As more regulation and institutional support backs this segment of the blockchain, we expect Web 3.0 projects dealing in this to see a speculative rally.  Tokenization is one of the most efficient upgrades to current technological systems and has the capacity to gain steam once proper regulation arrives.

Two projects that are focused on tokenizing securities include Sologenic and Polymath. Both of these projects are attempting to comply with EU and U.S  regulations, and are among some of the most promising projects when it comes to tokenizing assets. While widespread tokenization is still in ideation due to the crypto industry not being properly regulated, this is an opportunity that could become more prominent in the future.

Sologenic has the potential of enjoying a powerful rally should the Ripple SEC lawsuit go in a positive direction. SOLO is an asset that resides on the XRP ledger and will benefit from any future XRP mania. Additionally, the Sologenic ecosystem is known for rewarding its holders with free airdrops. The game theory of this project suggests that more people will be incentivized to purchase SOLO.