Plus: Robinhood needs to ship you money IRL
GM. In the present day’s market appears like a fruit cocktail: a bizarre combine, however we’re right here to verify it’s definitely 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 at present
Worry walked again into the chat, and main cryptos are slipping.
Why? Tariffs.
(What a shock… as if it hasn’t been the explanation for like a month now).
Donald Trump introduced a 25% tax on all vehicles and automotive components coming into the US.
That’s a giant deal for the reason that US imported round 8 million vehicles final yr, price about $240B – principally half of all vehicles offered within the US.
Trump says this will probably be nice for the American automotive trade – extra jobs, extra funding…
Nonetheless, specialists are like, “uhh… yeah this can prolly backfire.” They assume some US automotive factories might quickly shut down, vehicles might get dearer, and US buying and selling companions might get fairly mad.
And it is just the start – Trump plans to announce much more tariffs on April 2.
In truth, he is already throwing fingers: Trump warned that if the EU works with Canada to do financial hurt to the US, he’ll hit each of them with even greater 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 acquired too chill now: for the previous week, there weren’t any huge tariff updates, so buyers began pondering the worst was over. That each one went out the window at present 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 – they usually’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 working scorching, the Fed would possibly simply roll with it too.
An entire 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 appears to be like good, we might go even increased.
Plus, folks on-line are feeling bullish too – Santiment says for each 1 damaging 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 energy proper now, however let’s not get too comfortable. It might all change once more tomorrow on this economic system.
🥝 Memecoin harvest
Think about explaining to your accountant that your largest win this yr got here from these:
Information as of 09:00 AM EST.
Take a look at these memecoins and lots extra right here.
As soon as upon a time (which is like, now), there was Hyperliquid – a decentralized trade the place you’ll be able to wager on crypto costs going up or down (these are known as perpetual contracts or “perps” should 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 go away within the commerce to show you’ll be able to cowl your losses – which principally dumped the commerce into Hyperliquid’s vault (aka HLP);
Now, HLP had no alternative however to carry the quick – preserve it open, pay curiosity, and threat getting wrecked if JELLY’s went up.
And guess what this difficult 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, all the HLP vault might’ve been worn out.
So the Hyperliquid staff had to choose:
Let the protocol burn within the title of decentralization…
or
Step in and hit the emergency button.
They picked the button.
Validators delisted JELLY, modified its worth method down, and force-closed all open positions.
Everybody besides the suspicious wallets acquired robotically 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 present 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 fallacious method?..
Now you are within the know. However take into consideration your pals – they in all probability don’t know. I’m wondering who might repair that… 😃🫵
Unfold the phrase and be the hero you understand you might be!
🍋 Information drops
📦 Robinhood’s cooking up some new options, and one in every of them is money supply straight to the doorstep. Yup, like ordering a pizza.
🤨 A brand new ballot exhibits 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 firms 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 method 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 expenses to attempt to get one thing from Binance.
📝 Trump would possibly quickly kill off a rule that will’ve made DeFi protocols report back to the IRS. The Senate already voted to do away with it.
