Plus: Robinhood desires to ship you money IRL
GM. As we speak’s market looks 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 right now
Worry walked again into the chat, and main cryptos are slipping.
Why? Tariffs.
(What a shock… as if it hasn’t been the rationale for like a month now).
Donald Trump introduced a 25% tax on all automobiles and automotive components coming into the US.
That’s a giant deal because the US imported round 8 million automobiles final 12 months, value about $240B – principally half of all automobiles offered within the US.
Trump says this will probably be nice for the American automotive business – extra jobs, extra funding…
Nonetheless, specialists are like, “uhh… yeah it will prolly backfire.” They assume some US automotive factories might briefly shut down, automobiles might get costlier, and US buying and selling companions might get fairly mad.
And it is only the start – Trump plans to announce much more tariffs on April 2.
In reality, he is already throwing arms: 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 obtained too chill now: for the previous week, there weren’t any massive tariff updates, so traders began pondering the worst was over. That every one went out the window right now with the automotive tariff announcement tho’;
The tariff uncertainty will not finish with the announcement: Barclays is warning that these tariffs might hit as much as 25 nations – and so they’re anticipated to reply with their very own taxes. So, we have a possible commerce struggle looming;
Trump’s not making an attempt to keep away from ache. His concept appears to be: undergo now, win later. And with inflation nonetheless operating scorching, the Fed would possibly simply roll with it too.
A complete lotta mess, principally.
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 might go even greater.
Plus, folks on-line are feeling bullish too – Santiment says for each 1 detrimental crypto publish, there are 18 constructive 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 exhibiting power proper now, however let’s not get too cozy. It might all change once more tomorrow on this economic system.
🥝 Memecoin harvest
Think about explaining to your accountant that your greatest win this 12 months got here from these:
Information as of 09:00 AM EST.
Take a look at these memecoins and many extra right here.
As soon as upon a time (which is like, now), there was Hyperliquid – a decentralized trade the place you may wager on crypto costs going up or down (these are known as perpetual contracts or “perps” in the event you’re one of many cool children 😎).
It was having a great time on Earth – till someday (yesterday) its peace was disrupted by… an evil dealer.
Right here’s what went down:
First, the dealer opened an $8M quick on a memecoin known as JELLY – principally, he was betting its worth 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 principally dumped the commerce into Hyperliquid’s vault (aka HLP);
Now, HLP had no selection however to carry the quick – hold it open, pay curiosity, and danger getting wrecked if JELLY’s went up.
And guess what this tough 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 a protracted place (betting the worth would go up), and made $8.2M.
Now, if JELLY had hit a market cap of $150M, your complete HLP vault might’ve been worn out.
So the Hyperliquid staff had to select:
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 worth manner down, and force-closed all open positions.
Everybody besides the suspicious wallets obtained routinely refunded, and what might’ve been a $12M catastrophe become a $700K revenue.
As for the dealer? He put in $7M, pulled out $6M, and nonetheless has round $1M that he’s at the moment 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 improper manner?..
Now you are within the know. However take into consideration your folks – they most likely don’t know. I’m wondering who might repair that… 😃🫵
Unfold the phrase and be the hero you recognize you’re!
🍋 Information drops
📦 Robinhood’s cooking up some new options, and one in all 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 occasion – 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 manner excessive – and will put any blockchain dev liable 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 principally held him hostage and used faux prices 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 eliminate it.
