The Wolf Of All Streets - Ethereum To Drop To $1,284 Before The Merge? VC Money In Crypto With David Nage, Arca

Episode Date: August 24, 2022

This episode covers two main topics: the Ethereum merge and the flood of VC money into crypto. Technical analysis suggests Ethereum may drop to $1,284 before the upcoming merge in September. I am breaking down why this may happen and discuss the possible scenarios for Ether. Also, I am joined by David Nage, portfolio manager at Arca who provided deep insights as to what's going on with VC money in crypto, where the funds are deploying cash and how venture investing has changed since last year's bull market. JOIN THE FREE WOLF DEN NEWSLETTER https://www.getrevue.co/profile/TheWolfDen  GET UP TO A $8,000 BONUS IN USDT ►► https://thewolfofallstreets.info/bitget    TRADE ON THE WORLD’S BEST DEX, BULLISH: ►► https://thewolfofallstreets.info/bullish/youtube  Follow Scott Melker: Twitter: https://twitter.com/scottmelker  Facebook: https://www.facebook.com/wolfofallstreets   Web: https://www.thewolfofallstreets.io  Spotify: https://spoti.fi/30N5FDe  Apple podcast: https://apple.co/3FASB2c  Timestamps: 0:00 Intro 1:30 Crypto market update 3:09 David Nage 4:05 $290 billion in dry powder 5:15 $10 billion deployed in crypto in Q2 2022 6:30 VC money is still coming into crypto 7:10 42% of all investments are in Web3 10:00 DeFi and the code 11:30 Main point of failure are bridges 12:15 Arca’s fund performance 14:15 The merge 17:55 a16z invested $1 billion in seed in 500 companies 19:47 VC behavior: what is behind the urge to deploy money 22:53 Ethereum can go down to $1,284  31:02 Argentine Presidential Candidate Sued Over Alleged Crypto Ponzi Scheme 32:35 a16z believes in crypto 33:42 Telegram CEO Proposes Auctioning Usernames, Links As NFTs 34:35 Metaverse avatar platform Ready Player Me raises $56 million 36:40 NFT exchange SudoRare suffers $800,000 ‘rug pull’ six hours after launch 38:00 Hackers Lose 5 Ether While Trying to Attack Near Protocol’s Rainbow Bridge 39:17 Wrap up The views and opinions expressed here are solely my own and should in no way be interpreted as financial advice. This video was created for entertainment. Every investment and trading move involves risk. You should conduct your own research when making a decision. I am not a financial advisor. Nothing contained in this video constitutes or shall be construed as an offering of financial instruments or as investment advice or recommendations of an investment strategy or whether or not to "Buy," "Sell," or "Hold" an investment.

It seems like the only place that money is pouring into the crypto space at the moment is in early venture capital. Today, I have a guest who runs a fund for ARCA called the Endeavor Fund, which focuses on exactly that. So we're going to be able to talk about what he's seeing in private and public markets surrounding venture capital in the crypto space, as we, of course, see companies like Andreessen Horowitz pour just millions and seemingly billions into the space as everybody bitches and moans about the bear market that they clearly are not particularly concerned about. Also, the Ethereum merge, of course, we talk about it every day because there's not that much to talk about in the crypto space at the moment. We are seeing a bit of a arguably sell the news event at the moment with

price continuing to drop and then solidify. The question is, will it go down or up from here? The question everyone always wants to know. I think there's a pretty good chance based on the chart that we'll see a bit more downside before inevitable bullishness from the merge. You guys don't want to miss this. Let's go. you guys, because it's Tuesday morning and it felt necessary. Now, hope you guys are all having a wonderful Tuesday morning. The crypto market seems to be kind of effectively trading sideways. I think there's no surprises. As we know at the moment, crypto is highly correlated and tied to macro. And people, I think, are just holding their breath and waiting to see what happens with global markets before they get particularly excited about crypto once again. And that's fine.

And that's fine because we know that the decoupling, which has been slowly starting, but we know that decoupling is inevitable next time that we sort of see stability in global markets and that crypto will once again massively outperform other markets. Of course, this week we have the Jackson Hole Symposium on Friday. That's when the Fed gets around and plans how to fuck us. That's what they do. They get together in a group and they brainstorm ideas on how to make our lives as miserable as humanly possible. Just a bunch of old white guys choosing what words to use to define the destiny of all markets globally. No big deal at all, right? So it doesn't actually matter what happens. It just matters how they decide to talk about what happens. But as I mentioned at the

beginning, I'm going to do kind of a deep dive into Ethereum today. I've got a bunch of charts. We're going to chart. We're going to chart. But first, I want to bring on today's guest, David Nays. You guys have seen him before. Former New York City DJ, much like myself. We're one of some of the few unicorns that went from DJing in the same spots right into crypto, who runs the Endeavor Venture Capital Fund at ARCA and can probably give us a hell of a lot of insight into what's happening there. How are you, Dave? I'm doing fantastic. But Scott, comparable to your tan, I'm not doing as well as you.

Well, you know, it's been a good summer. The good news about market sucking is that you can spend more time laying outside, ignoring everything that's happening. So as I touched on before, it seems that there's been no slowdown at all on the venture capital side, right? We're certainly not hearing about companies buying Bitcoin anymore. We're not hearing about really much fundamentally with any of the layer ones, anything like that. It seems that the whole story right now is companies like Andreessen, your own, pouring money into Web3. Is that accurate? Yeah. So I'll give you some stats here, some data points. So it's not just conjecture. So let's talk about that. So we looked at the last quarter, Q2 of 2022. So some things came out to us.

So in terms of dry powder, and for those that are not familiar with that phrase, it's the amount of capital that VCs have that they're sitting on waiting to deploy. So the amount of dry powder stood at about two hundred ninety billion dollars in all of the U.S. VC. And so that represented about a three year, about a three year deployment kind of capacity for those VCs. So there's three years that they are solidified for for putting money to this market. And then if you look at the last six months, and this is for VC, and then of course you can extrapolate from crypto VC.

For the last six months in 2022, VCs have closed at about additional 120 billion. That's a B, capital B. 120 billion in new funds. And so this is already the second highest yearly total of all time. So the amount of capital that's going to be put to work in venture is really quite robust. Now, let's get into the digital asset side of things. Global digital asset venture funding adjusted basically in Q2 from Q1. It was down about 20% from about $12.5 billion in Q1 to about $9.8, we'll call

it $10 billion, really, honestly, $10 billion, basically, in the second quarter. That's still, you know, comparably to people that have been- That would have been like a year worth of VC in 2020, right? So, or more, or more, probably less than $10 billion in 2020. Yeah, if you would have put together like 2017, 18, and 19, basically. So if you kind of expand out, a piddly $10 billion deployed in Q2 of 2022. And so what are we seeing? We're seeing basically that if you look at Q2 of 2022 and then look back to 2021, what you saw in 2021 in Q2 of last year was about 374 deals that were completed at that time.

And the aggregate amount of that was about six and a half billion dollars. In Q2 this year, as I said, again, you had about 600 plus deals that were done. Again, that's about $10 billion deployed. So as you alluded to, while everyone is obviously talking about crypto winter, recession, nuclear war, whatever you want to call it, the money is still coming in. And so what did we see? We started to see kind of where that money was coming into sector by sector. And I think this is interesting, obviously, for those that are following the public side of things. Sector by sector, we saw some stark differences between last year and this year.

So last year, DeFi was about 35% of the overall pie in Q2 of last year. DeFi was roughly about 16% this time. So effectively, more than 50% kind of halving off of that. Where you started to see a big pickup, as you alluded to, is in the idea of Web3. Web3 last year represented about 15% of the overall pie. This time it represented 42% of the pie. So you're starting to see kind of a sector shift, if you will, from last you know, last time this year to now. I have to say, though, NFTs represented kind of there was a strong correlation between last year and this year. NFTs last year was about 16 percent of the overall pie. This year was about 13 percent. So you didn't see. Right. I think that makes sense, though. Obviously, we know that sort of

these sectors are a bit cyclical in uh crypto and this right around last summer was when nfts went absolutely nuts saturday night live all of that so i think there's also a when you're comparing apples to apples of quarters you get the timing right if defy had been defy summer we would sort of see different uh comparable numbers but that's really interesting and anecdotally i think that's kind of obvious right i think there's been a massive uh sort of i don't know i think people are questioning defy you know they're worried we have hacks we have another one today that i'll talk about obviously or rug pull hack who knows i don't even know what to call them anymore i think people are just very skeptical even especially probably attributing the failure of these C5 platforms and wrongfully, perhaps, you know, attributing to that to DeFi.

Yeah, I do think there's something interesting there. And I'm about it's a great day that we're doing this because I'm actually about to talk to all of our investors about the performance of the fund for Q2. One of the things that we're looking for in Q3 and Q4 and then indefinitely is security, enhanced security, real-time threat intelligence for DeFi. We started to see a few of those startups the last few weeks here is this idea of, again, real-time threat intelligence.

So for people that follow DeFi, that have been investing in DeFi protocols, the way that the usual cycle goes is that you create some code, you obviously have, you know, a DEX or an AMM or some sort of a yield farming kind of protocol. And then you go to Certic, you go to Trail of Bits, OpenZeppelin, a few of these more popular audit firms, they look at the code to make sure that it's, you know, not necessarily embedded with disasters in it. And they kind of give you a stamp. They say, okay, your code has been audited.

That is very passive. That usually ends there. Every single one of these hacked and exploited codes has been audited by three or four of the main firms. Everyone. So what we believe is going to be incredibly important going forward for DeFi's adoption and further expansion is this idea of real-time threat intelligence. And the way that I look at it is if you extrapolate

from the late 90s, in the mid 90s, we'll start back there, no one relatively used credit cards to put their personal information to buy things on Amazon or any other kind of websites that existed. It was very frightening for the majority of consumers because, again, you started to hear about this idea of your identity be stolen, et cetera, et cetera. Then in the late 90s, SSL and then its next layer, TLS, was introduced into mainstream e-commerce, and that was further enhanced in layers of encryption. People started to say, OK, it's now more protected. I feel more comfortable doing this. I'm not having my identity stolen on a daily basis. And so they started to get more comfortable

with it. We think that that is going to be somewhat similar to what happens for DeFi. And we're obviously looking for that. We think that that real-time threat intelligence with DeFi is going to help DeFi excel. And just one last point about DeFi versus CeFi if you look over the course of Q2 you alluded to CeFi having massive explosions with you know Celsius Voyager BlockFi other ones out there DeFi even though obviously it had a few significant you know stories out there and some very significant issues Uniswap and some of the other kind of DEXs out there actually held up. Their code worked. And certainly anywhere that there were loans, it was sort of orderly liquidations, margin calls.

Nothing broke because it was code and not people. And they had the collateral. That's the difference. In DeFi, you actually have to had the collateral. That's the difference is in DeFi, you actually have to post the collateral. That's right. So we think that that shows that there is a furtherance of DeFi, that it can work.

It's just to your point that, you know, we cannot continue to have these news headlines about another hack, another exploit, especially with the bridges. The bridges are a main point of failure for a lot of this. And so we really think that what we're starting to see, and this is going to take a few months, you know, to kind of implement. It's probably this time next year, hopefully we're talking

about some significantly huge, you know, security firms that are monitoring, that are able to provide that layer of protection. But it's going to take some time, but we think that that's going to be really important going forward. Yeah, I think that that makes a lot of sense. We need renewed faith and just a slowdown and all the exploits and hacks, I think, for people to really believe and want to throw their money back in there. Now, we talk about the fact that there's so much money pouring in through venture capital, obviously, but I mean, your fund Endeavor, Andreessen, are they actually performing well right now? Or is this a really uncomfortable call that you have to have with your investors in a few minutes after this? Obviously, can't talk about performance on this, but I would say that relative to the public markets, we're doing well. I would say that

the companies that we are looking at really try to perform a service that is universal, that's agnostic. I would say with us, we haven't tried to get into one ecosystem and one ecosystem only and kind of pigeonholing ourselves there. We haven't only focused on one sector and one sector only. I think that diversification is important, but we're also, as I said, again, we're trying to really start to narrow in on some sectors that we think are going to be incredibly important. And the two themes that are driving that sector rotation for us is the user experience and security. No longer can we accept that it takes 10 steps for a outsider to get into this world and that's comfortable. And then they get exploited. Exactly. Or they lose their keys or whatever it is. Like you become your single point

of failure once you get there and it's even worse. Right. You know, for anyone out there who obviously downloads an app on their iPhone or their Android, they download it. And within that first 30 seconds to 60 seconds, you have to have some sort of an experience with it. You have to say, oh, this is actually really cool. This is going to help me. You know, if it's a gym app, it's got to be like, okay, I don't want to be instantaneously put into this place where I have to buy things or I have to further do things. I want to be able to use it a little bit. I want to see if it actually helps me in my life. And that we think is going to be really important, that user experience that we have to abstract away these complexities that are built into Web3 and make it really frictionless. And that sounds simple, but for the last two years,

as we've seen this massive Web3 build out, it's kind of been ignored. And so we think that that's going to be important going forward. And that's where we're going to be focusing on. So I think it'll be a very good call. Thank you. How important do you think that the merge is at this point? I think we've obviously seen sort of this bullish narrative from the lows of 800 all the way up to 2000 sort of retraced a bit. But do you think that a lot of this market is hinging on the success of that event? I definitely think that it's and that's why it's taken, you know, the years that it's taken. It didn't just happen overnight. This took years, you know, last few years of testing, of porting over. You had the beacon chain. You had all the work that they've been doing to ensure that this was going to work. Yeah, it's big. You know, Ethereum is obviously the second biggest out there versus Bitcoin. You know, there's a lot of things that are built on it. There's a lot

of dependencies on it. You know, DeFi, NFTs, gaming, a lot of the sectors are depending on it. So yes, I would say that final kind of push in the middle of September is going to be incredibly important. And obviously, you know, what we've seen, you know, over the course of the last few weeks is that the testing has shown to be positive. But it is massive. And I think if and when it does go well and hopefully, you know, obviously, fingers crossed that it does. If and when it does, I think one of the things that's always been a criticism from the institutional investor as well, too, about digital assets and crypto in general, is this kind of narrative of dirty chains, of it consuming too much energy. Like, you know, obviously, that's what they always claim on Bitcoin right away, is that it consumes too much energy. They don't look at, obviously, the kind of the data behind it, what the energy is

actually being used for. When it moves over to POS, to proof of stake, I think you're going to start to see, and this is a narrative that we're also tracking for the next few months, is this idea of sustainability. Can chains be able to produce the kind of outcomes that we need and also have a low carbon footprint? And so I think this is going to be a big rebuff in addition to, being very important for the overall ecosystem. But I think this is going to be a big rebuff that, you know, digital assets and blockchains in general can't function in a sustainable way. And I think that's going to be something we're going to be tracking to. I love that measured and intelligent response, because when I asked you right before the stream, what do you think the merge you said?

I really hope they don't fuck it up. And I quote, I believe, right? I can say. That's unquoted, yes. It would be, as I alluded to in more of the political correct tone that I have to use on air, obviously, it is something that, it is a very big step. Right. I mean, you could argue that there's more downside, like everyone expects the upside already, that's sort of priced in or expected. So if something goes truly wrong, maybe the downside of this is what we should be talking about potential, not that it will happen. Obviously, you always have to be measured with that you always have to have downside protection

when you're looking at things like this. And as obviously, as we always tell investors out there, you know, we can all talk and we can all provide the data and the information and the research. But it's also really important for them to do it on their own and to also look at the information, too. You know, they've looked to us, obviously, as people that have been in the industry now for a number of years that have expertise around it. But at the same time, you know, there are biases out there. People can get really hyped and there can be biases, you know, out there, people can get really hyped, and there can be a lot of hopium out there. And you know, about the hopium, especially on crypto Twitter out there between the maxis and everyone else. And so it's always really important to not only,

you know, you know, read and trust and people, you know, that are, you know, putting out great content like yourself and others out there, but to really kind of look at the information themselves and try to make a judgment call. And so, you know, doing that, I think, is incredibly important in addition to obviously the expertise and experience that's in the market these days. Is there an aspect of venture capital? I mean, you see like Andreessen Horowitz, they raise obviously these massive funds, 4.5 billion, whatever, but they usually have a five or sometimes 10 year time horizon. Isn't there actually pressure and difficulty sometimes deploying, which sort of forces them to make investments actively on a month to month, week to week basis? And maybe that skews a bit of what we're seeing.

If you look at what Andreessen did, I believe they raised about four and a half billion dollars you alluded to. And I think they earmarked about a billion dollars of that to seed rounds. For those who aren't familiar with the dynamics of seed and venture and digital assets, seed rounds are typically anywhere between two to four million dollars raised anywhere now in this market, usually around 15 to 20 million post money valuation. And so if you think about it, if a company is raising four million dollars and you have a billion dollars. Four 500 companies. Yeah.

That's, you know, and it's only one LP in that cap table. And so for founders, while Andreessen obviously has a fantastic brand and they've done amazing things over their existence, founders want diversity because different LPs provide different inputs and outputs. They have networks. They have people within their circles that can be very useful. They have networks, they have people within their circles that can be very useful. They have other portfolio companies that can be very useful. And so founders are very cognizant out there today that having diversity of a cap table is very important. So

yeah, it is trying. We do see a lot of that out there. We see big funds trying to push and get larger allocations. And the founders out there that want the big flashy name on their website will go that route. And others that want to have investors that are really going to be dependable and working with you weekly and monthly and really providing you that input that you need to grow your company or your project. Those are the founders that are, in my opinion, are going to succeed versus the ones that are looking for the big flashy names. Yeah. I mean, Andreessen, obviously, it's not on the crypto side, but they just kind of controversially gave $350 million to Adam Newman of WeWork fame for his new project, Flow. And it seems like this sort of eye-opening thing,

but when you think about it in context of the billions they need to deploy, it seems like actually it kind of reduces a headache to write bigger checks to single parties than to do what you just talked about, which is find four or 500, which becomes just spray and pray, right? And make bigger bets because you have to deploy the capital. So it seems like I'm just, I wonder if a lot of the raise still is from like sort of the former hype of the last bull market and we're seeing a lot of it deployed because it's there and has to be right you can't just sit on it you can't sit on four and a half billion dollars for five years and wait for the market to turn no you can't but at the same time you know i categorized it and we experienced this as well as other vcs in the space too that we talked to on our weekly basis is that when things started to happen in April, May and June, we as a fund took

a soft pause for a few weeks and just tried to see and chart out what the kind of contagion was, if you will, and what we thought this world was going to look like in a few months. I thought it was important and sort of, you know, as a firm, we thought it was important just to kind of slow it out a little bit and see how things were going to progress. You know, and so I think many other VCs, and that's obviously, you know, described in the data that I led to in the beginning of our chat this morning, you know, the amount of velocity in terms of fundraising definitely slowed down in Q2 because a lot of other VCs out there said, okay, let's just see how things play out and not necessarily try to, you know, drive a Hemi truck into a Cat5 hurricane. Yeah, that makes perfect sense. Well, thank you, Dave, for taking the time

to speak with me once again. Good luck on call today everyone you can follow david d-a-v-i-d-n-a-g-e on the twitter machine thanks again man i look forward to your next dj set thanks for 2047 i'm sure have a good one you too cool really good insight there onto what's happening. I try to obviously understand the mechanics of why it's happening and not just look at the headline that says, tons of money is pouring in. Because I do have a feeling that a bit of it is leftover hype from the last bull cycle. And like I said, if you're sitting on billions and it's literally your mandate to deploy it, you have to find a way to do that no matter what. And when he just said, you know, usually one to two million on a seed round, which, by the way, you know, they're not one VC is not getting that full chunk of one to two million.

Fact that they need to deploy a billion dollars. Well, that should show you why they are throwing money around in the same manner that they are at the moment. So listen, as I talked about, I gave something I very rarely do in the intro. I gave a very specific price target for Ethereum. Doesn't mean I necessarily think it's going to go there because it's based on a chart, but there are some things that are lining up. So let's talk right now about Ethereum. First, Ethereum merge drama continues as traders pile out, then back in. Ethereum regained investor support on Monday after slumping in recent days. Apparently, investor support means it stopped dropping. Stopped dropping. But what you might not have known is when we got up around $2,000,

open interest was extremely high, almost at record highs for Ethereum, meaning that leverage traders were heavily long, hopium, bull-tarded, getting excited about prices only going up. And what happens every time we see longs massively offside with high open interest, we see a flush, which means that somebody with a lot of money comes in and shorts it, causing a liquidation cascade. This is a trader's move, what we said. We can talk about it being risk on, risk off, Ethereum merge, all these narratives. But when you look at the data here based on this article, it's very clear that the recent move down was just a very easy moneymaker for a whale who wanted to liquidate people who were over leveraged.

Tale as old as time. I don't know why I keep bringing up Beauty and the Beast on these streams, but it's just stuck in my head. Well, now, once again, with price dropping down to 1600, they are piling back in and we're seeing a massive rise in open interest. Does that mean price is going to go down again? I don't know. But if we see longs piling up in the same situation at $1,600 is $2,000, there will be, shouldn't really be that relevant to you if you're dollar cost averaging in a long-term bull. And I saw a lot of you up above. I can't find the comments now. Ask me. Here you go. Scott, are you still dollar cost averaging into ETH or too deflated having your ETH bag locked up in Voyager to want to buy at these prices? Well, my ETH bag is certainly deflated if that's what you were getting at. But yes, I am still dollar cost averaging into ETH at a lower level because

my bag is in question. It's very hard for me to determine how much I want to be holding relative to my portfolio if I don't know how much I own. But I see no reason, regardless of anything we talk about here, to alter your dollar cost averaging strategy into the assets that you love, period. I dollar cost average into Ethereum and I dollar cost average into Bitcoin. And frankly, I salivate generally at these prices. I salivate generally at these prices. But let's go take a look at this chart right now. Kristen says she would love to buy 1,200 ETH. So would I. And this is my thinking right here. And listen, this could become invalidated very quickly. But if you guys have been following my Ethereum charts, guys, we're just making our best guess here. But it's

been pretty accurate as to the general movements, right? We talked about this ascending triangle that I had posted when price was down well below that 1200 level, right? And what does that mean? We had higher lows consolidating towards a flat resistance. That's called an ascending triangle. And when you see that breakout, you measure the depth of the triangle right there and extrapolate that, pull it to the breakout, and you've got a target of 1875. This absolutely overshot that to over 2000. But you would consider that a successful trade

and a successful pattern showing you what was likely to happen. And then we came on here and said, this looks like an inverse head and shoulders. Regardless, this looks toppy. We saw the 50 MA rollover on the four hour, which I said would be a drop to the mid 1600s. We got that, broke down below the 200. Of course, this is a short term chart. This is the four hour chart. We will look at longer timeframes, but I like the four hour chart for trading. Now listen, this is already pushing up against

resistance, but that's one, two, three, and now four touches as a very strong resistance. If it breaks, we can start talking about higher, but of course this could very easily just become a bull flat, a bear flag, which is often what happens when a pennant breaks upside or downside, right? What I'm looking for, if this is truly a pennant after a drop, which you do not know until the support breaks. These are ideas. Please do not spaz. Please do not do anything stupid. I'm sharing a charting idea and a pattern is just an idea until it is confirmed.

It would be confirmed with this break, right? But if we do see a break below this, you have sort of, we can call this the flagpole, right? A bear pennant. I pull that down to where the break is. That gives us a target right in the 1200s, right? Length of the flagpole, wherever it breaks down, target down below. It's breaking up, by the way, right now. So I've been looking for this to kind of form potentially a, form maybe a flag. If it doesn't happen, maybe this will just go completely haywire right now. We won't have to talk about this. But either way, obviously, you see this death cross about to happen,

the 50MA about to cross down the 200. So maybe we push up to the 1690s right here, hit that cross and drop. But the real reason that I think that this is possible, because this was never retested, we had this massive breakout right here above this 1284 level and never came back to test as support. You expect that to happen. It doesn't always happen, but you expect it to happen. So the bottom line is I'm very bullish on ETH. You see the line goes up no matter what. If it goes up from here, great. That would be amazing. But if we get a drop to 1284, this area, I would be very excited to not just dollar cost average, but buy that debt. Notably, listen, that's still 50% up from the lows down here in the 800s,

right? That's still a monster move. Yes, we went up like two and a half times all the way up to here. And to drop to where we are now is still double, right? How far to Bitcoin? When Bitcoin hit 25,000, that was effectively a 50,000 from 17,000 lows. Now it's much lower than that. So even if this drops to 1284, it would still match at that price, an equivalent rise to what we saw in Bitcoin from the very, very bottom of this.

So it depends on your perspective. I don't see this as a bearish thing. I don't see this as a bearish thing. I don't see this as a bearish thing necessarily, but I think that maybe we see more down before we see more up. Let's take a look here at the daily chart really quickly. Now, if you want the argument that we're finding support, we have the 50 MA right here, right? And we haven't broken below it this slight wick since breaking back above over a month ago on July 17th. So you really want to see the 50 MA hold if you're a bull, which makes this area a likely place for a bounce. If we drop,

you're looking at 1440. And then of course, the same area I was just looking at right now, where do those come from? Well, 1440 was the high of the 2018 bull market, right? So that's a very logical place to find support. So it could bounce above what I'm talking about. And of course, the line we just talked about, which by the way, it was the highest here at 1284, but that coincides with this swing low right over here. Listen, I would love to see this just honestly go up, right? And, uh, be completely wrong. I just think you need to be prepared for any situation. Like I said, I'm still buying ETH. I just really want to buy it down in the 1200s. That's the, that's the gist here. Of course, looking

at the line chart here, we had a massive bullish divergence at the bottom if you were watching on the four-hour chart, right? Yep. My favorite signal. We had RSI down at 18 on Ethereum at the bottom of this with two bull divs and of course a pop. We have a potential, some little hidden bearish divergence, but actually it's making a higher high now. So that was with a question mark. I wouldn't worry about that too much, but yeah, we had a good signal that things were bottoming. Maybe we push all the way up to here. Listen, I would not be surprised, as I said, to see price come up, especially even if it's going to still go down, would not be surprised in any way, shape, or form to see this kind of come up into

this region right here, especially if we get this death cross of the 50 and 200 MA. So that's what I'm looking at at Ethereum. So listen, I would just say, don't expect it to happen, but maybe put some bids down there in case we get a washout. Right? Right? Right. Moving on with the news, Argentine presidential candidate sued over alleged crypto Ponzi scheme. Here's the irony. Javier Amule once called the central bank a scam. Now he's being sued for allegedly promoting a scam of his own. Politicians going to politic. You know what I'm saying? Do you know what I'm saying? I'm going to cough now. I'm going to mute it. You guys may remember that I once coughed into the microphone and chewed

on ice. I had a very angry follower who told me he would never watch me again because I was so disrespectful to my listeners, right? But yeah, this guy right here, this handsome Austin Powers lookalike. He is top contender to be the next president of Argentina. He's a Bitcoin fan. He's a libertarian. And he promoted some shit called CoinX on his Instagram,

which said he was never paid for. Turned out, he said, they are revolutionizing the way to invest to help Argentinians with inflation. You can now simulate your investment in pesos, dollars, or cryptocurrencies and earn a profit.

But CoinX closed up shop after the Regulatory National Securities Commission warned that the platform had no legal right to operate in the country and ordered it to stop operations and that they never made the returns that they promised. So basically it was a massive scam and like an influencer,

a presidential candidate was promoting it. And like an influencer, a presidential candidate was promoting it. And you wonder why people don't like us. Anyways, could be a harmless mistake. Could be a harmless mistake. Andreessen Horowitz, here they are again. Can't get rid of these guys. Says, crypto can shift power away from big internet companies. Months after it established a 4.5 billion crypto fund, the venture capital firm also said it sees the crypto market slump as an investment opportunity. Well, if you had $4.5 billion and were trying to convince people that it was a really good idea,

you would probably tell them that you see the slump as an opportunity too. Listen, they're talking their book and there's absolutely nothing wrong with that. But the underlying point of what was said in this report is actually very important because they're saying there's major monopoly of tech companies in the United States, in the world, the Googles and Facebooks and Amazons of the world that dominate Web2 and there's very little variety. There's certainly no decentralization. Everything is centralized and controlled by a few single points of failure. Their argument here, regardless of whether this is a good time to invest in Web3 or not,

was that the future of Web3 is to decentralize these systems, give people more options, and make it a much more fair market. I think we can actually all get on board with that idea. Next story, Telegram CEO proposes auctioning usernames, links as NFTs. I don't know. Maybe just don't. Maybe just don't. I mean, this is fine. He said this would create a new platform where username holders could transfer them to it to, I don't know, scam the shit out of people? Right?

I don't know. This seems like opening a Pandora's box of potential disaster just to make a little money on the side. Because like, frankly, like you really are going to sell the link to your Telegram group that you've built to someone else and let them run your group this one i just don't really understand i i know that we want uh everything to be an nft but maybe don't but metaverse avatar platform ready player me raises 56 million from From A16Z, also known as Andreessen Horowitz, and others. Right? Ready Player Me has raised $56 million. The Metaverse avatar platform plans to double its current team of 50 people.

You have 100 people. That's a lot of people. A lot of people. So what does this platform do? It allows people to create visual avatars that can be used across the Metaverses. Create a digital version of yourself. Go run around in nerd space and do nerd shit. Right?

Allows you to do that. Everyone wants that. I'd probably, I don't know what I would be. I don't know. What would you be? What will your avatar be if you create one to run around in the metaverse? Let's talk about this. What would you guys be?

Pandora's jar actually the box was a mistranslation i had no idea what would you guys what would your identity be in the metaverse when you create your avatar is it going to be like here is it going to be dead mouse are you going to be a crypto punk with a weird robotic body and shitty clothes from the 80s? You're going to be this dude with pink hair. MB would be a giraffe. Giraffe. Okay. Funny, because your avatar right now

actually looks like it could be something from the metaverse. What would you guys be? You guys aren't... Oh, you would be Mott Skelker. Janet Yellen. A pixelated Janet Yellen is hot, especially with the happy donkey. donkey Scott I think it's time

for McGlone to come McGloin you said McGlone yeah I talked to him last week we got to get that back on Mike we got to get McGlone back on I was talking to Mike Lafley's uh Robocop I like that you guys have some good ideas but I was expecting a little better from you expecting a little bit that's cool but either way guys yet another 56 56 56 million pouring into another metaverse platform so that we can all avatar ourselves and avoid real life now getting into shit that sucks nft exchange shoot over air suffers eight thousand dollar rug pull six hours after launch i wouldn't say they suffered it I would say that they launched a platform, got people to put $800,000 in and then took the money and ran. This is why nobody likes us. At this point, I'm sorry, man. I love all this stuff. I'll continue

to go get rug pulled and take my risks. But your average person who reads about this shit is not eager to go down the rabbit hole of crypto. I'm not talking about Bitcoin. And start throwing their money into these exotic platforms because all you do is have it disappear. So many ways to lose your money in crypto. So many ways to lose your money in crypto. We need to clean this shit up. Every single day, it feels like we have another one. Chris would be a rainbow kitty, which is cool. These streams need more 90s rap references, Scotty. Sorry, I've been off my game.

Yeah, yeah. Yeah, I don't even like rugs in the real world either. They give me allergies. I hate rugs. Yeah. Like, important to regularly check your bag. Yeah, apparently you need to be awake 24-7, 65, just to see if someone's stealing your money. So yeah, yet another, uh, example of an exploit hack rug pull, call it whatever the fuck you want, or just a scam.

They just stole the money. But along those lines, here's a heartlifting uplifting story to end it. Hackers lose five ether, whopping like eight grand, while trying to attack near protocols rainbow bridge. Cool. For once, hackers were caught trying to exploit a bridge

and the five eth that he put into a contract to try to fool the validators ended up being removed. So this dumb shit lost $8,000 or five ether attempting to hack the bridge. But I think the more notable story is people are trying to attack and exploit every bridge all the time. My God. Yeah, good riddance. They had it coming, obviously, you know, but you're

not that was you were taught you were referencing her being a rainbow kitty. That's fine, man. So, yeah, we finally have a story where the hackers lost. Yeah. Bridges are bad. Use tunnels like, yeah, but tunnels are kind of rough to man. Like, I don't know if there's things worse in the nightmares than like a flooded tunnel being stuck in a tunnel for like getting in traffic. Like I've been in the Holland Tunnel

for like three hours before it is. It's not a good time. Not a good time. So for once, the hackers are the li-hoo-sa-kers. That's all I got for you guys today. That's all I got for you guys today. 40, 45 minutes. It's pretty good.

40 minutes, maybe. I thought Dave had some valuable insights smart guy smart guy over there and uh i got to talk about an actual target for a chart so that you guys can come back and reference what a dumb shit i am uh in the future when it inevitably is well where's your jesus today? I have a Jesus friend. I didn't know that. It's my Jesus friend. Oh, the guy in the comments that was just doing racial slurs.

Yeah. I don't know. Maybe we blocked all of his identities. I'm not sure. Simon. Thank you, buddy. I see you all the time on Twitter.

You are very kind. And I always appreciate your positivity, Des. You too. As well, of course. You guys, there's a lot of people here in this community, in this little wolf pack, whatever we call it. A lot of you guys really very, just honestly warm and wonderful people. And even in the hard times, you guys make it very easy to continue doing what I'm doing

because, uh, of the positive feedback and the good vibes. You too, man, you drew in Christopher, all you guys, you guys are always here, always here. And we appreciate that. And, uh, Des is going to enjoy some sun. Have a great day. Have a great day. All of you guys have a great day. Yeah. What he said, do that. Any who's that's you guys have a great day. Yeah, what he said. Do that. Anywho, that's all I have got for you. I will see you tomorrow. Maybe we'll do some charts tomorrow. Wednesdays used to be charting day.

Maybe we'll do that. I don't know what's coming. It'll be good. Peace. Let's go.