good morning. Here’s what’s happening:
price: Markets are quiet in the US after a long weekend and many economic data releases this week.
insight: Animoca’s Yat Siu undermines the GameFi cause by ignoring the Ponzi issue.
Bitcoin surpasses $30,000 in a quiet long weekend
Asian markets were weak as the trading day opened on Wednesday as the US got off to a long weekend.
Bitcoin fell 1.1% to $30,807 and Ethereum fell 0.8% to $1,939.of CoinDesk Market Index (CMI)It fell 0.9% to 1,262, a measure of cryptocurrency market performance.
CoinGlass data shows that while open interest continues to hold in the $14.38 billion market, trading volumes have declined overall, with major exchanges reporting a 15-20% decline. Liquidation volumes reflect this, with just $148,000 of positions liquidated in the last four hours and $7.2 million in the last 12 hours.
CoinGlass long/short ratio shows long traders still have a slight edge over short traders, but a survey of trader sentiment shows a large group of neutral traders are bullish It was revealed that it was divided into bears and mixed.
As CoinDesk previously reported, liquidity remains a continuing concern, with fiat liquidity trending downwards and potentially weighing heavily on risky assets such as tech stocks and cryptocurrencies. With more economic data coming out this week, let’s see how traders react.
Animoca co-founder Siu shouldn’t ignore GameFi’s Ponzi problem
The GameFi industry is working hard to dispel the perception that it is a cesspool of Ponzi schemes.
Yat Siu, co-founder and executive chairman of Animoca Brands, lashed out at the initiative during an interview at the Collision web conference in Toronto.
“The story about GameFi as Ponzi is an American story. If you go to Asia or the Middle East, you won’t hear anything like that,” said Siu when asked by YouTuber A.Cole. “It’s due to a misunderstanding of what GameFi really is.”
A Ponzi scheme is not a legitimate sustainable business activity, but an investment scam that promises high rates of return for old investors to be rewarded by new investors. To critics, GameFi’s Play to Earn model is Ponzi’s scheme because it relies on the transfer of wealth from new players to old players rather than legitimately engaging gameplay.
Siu went on to argue that GameFi is not about creating monetary value, but rather about opening game finances to transparency.
Mr. Siu is not wrong about this part. Games have had economies of scale for quite some time. US political hater Steve Bannon made millions in the early 2000s in Hong Kong where he ran a World of Warcraft virtual gold trading desk.
But when it comes to the real issues GameFi has with Ponzis, he’s incredibly dismissive. Others see the issue as a drag on the industry.
In a 2022 essay outlining investment themes, Vader Research, a Web3 games market research firm, found that the current wave of Web3 games is not designed for traditional gamers looking for fun, but rather a “Ponzi game. It’s designed for cryptocurrency moneymakers and gold farmers who want returns.” scholars. “
“We believe Ponzis will slow down the adoption of Web3 games,” they wrote. “[Many projects] Using complex tokenonomics to camouflage the nature of Ponzinomics would take Web3 games a few years back in terms of real gamer adoption. “
Vader pointed out that the GameFi project offers “unrealistic gains” that not only jeopardize long-term cryptocurrency adoption, but also impede the growth of real Web3 games, they said. is thinking
And after a year, seeing what happens when the inflow of resources no longer exceeds the outflow, there is some justification for this idea.
Data from CryptoRank.io shows that Animoca Brands’ token basket has dropped 18% over the past six months, and over the longer term has dropped 17% over three years. By comparison, many other investors will be able to profit well on either of these timeframes given the mini bull market in 2023 and the broader cryptocurrency growth over the long term.
For example, A16z has risen 20% in the last 6 months and 375% in the last 3 years.
Perhaps the industry would be better off listening to a Sith Lord-branded research firm rather than a research institute defending Ponzinomics as all a misunderstanding.
“The Hush” discussed today’s top news, including Elon Musk’s announcement that Twitter will put a new “temporary limit” on the number of tweets users can see per day. Additionally, Atrium founder and CEO Supriyo Roy joined the show to discuss the release of an animated film funded by the DAO that will bring NFTs to life. And Azuki’s update a week after Elementals NFT’s Mint.
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