Posted 2 weeks ago | by Catoshi Nakamoto
Stagflation could be on the horizon, Crypto.com scales back their rewards and infuriates their user base, while Algorand kick’s it up almost 20% after becoming the official blockchain sponsor the 2022 FIFA world cup. My name is Ben. This is your crypto nightly news wrap up! Let’s get it.
Tomorrow the FED meets again, and it’s rumored they’re going to hike up the interest rates by 50 or even 75 basis points. This is one of the only ways they can combat inflation and restore the value of the dollar. Since the dollar has been inflated more in the past few years than it has in decades, the FED is racing against the clock, and it really seems like the problem wouldn’t be as bad as it is if they didn’t wait so long to act against the problems they created. Many analysts fear that we’re on the brink of an economic recession, but the looming question to me is: will we go into Stagflation? Investopedia describes Stagflation as “a witch’s brew of economic adversity, combining poor economic growth, high unemployment and severe inflation all in one. If you break the word in half, you’ll see it is the literal combination of stagnation and inflation. The Misery Index is a good measure of stagflation because it is the sum of the inflation and unemployment rate. The Misery Index is currently at 12.14. That’s up 4% in the past month and almost 41% from last year. Not looking too good. We haven’t seen Stagflation in America since the 1970’s oil crisis and if it was to come back in today’s day and age, it would wreak economic havoc. What it really comes down to is how the FED walks the line this year. If they’re too hawkish and drive us into a recession, stagflation could easily become a reality. If they’re too dovish, the inflation won’t get under control. They have to find that goldilocks level; that happy middle ground, but if their plan backfires, we could witness the very series of unfortunate events that they’re aiming to avoid. You think the bear market looks bad now? It could always be worse. Hopefully we’re already near the bottom and this isn’t just the beginning. Let’s pass the mic over to Frankie Candles and see his take on the today’s market.
Despite the long term bullish notion from locking down the staples center deal for 20 years, Crypto.com just dropped the ball, and their investors are infuriated. In a recent update, effective June 1st, they’re cutting back on the rewards they’re giving out for using their famous Crypto.com Visa card. Every tier of their cards has been cut significantly from its original rewards rate. (Show Card Tier rewards chart from update) The Ruby Steel card has been capped at $25 dollars a month in rewards and the Royal Indigo and Jade Green Cards have been capped to $50 dollars a month. If you’re currently in an active 6-month stake, you will continue to earn the agreed upon rewards, but once it’s over, the revised rates will apply. In response to this bit of bad news, CRO has fallen about 18% since the announcement and is currently down around 70% from its November all-time high. Crypto.com CEO Kris Marszalek responded by saying they have to offer a more balanced approach and given the large scale of the company, they had to cut back to ensure long-term sustainability. The card benefits like that Spotify and Netflix reimbursements haven’t changed, but nevertheless, they lost some points with their following and hopefully they can make up for it in the long run.
Keep in mind, when we run negative stories, it’s not because I’ve gone full bear. I’m not intentionally trying to scare everyone…but we have to keep it real and report the news. We do this to keep the BitSquad informed so they can make the best decisions possible, and that means covering everything; the good and the bad. Yes, the market is shaky right now…and that’s because there’s a great deal of global economic uncertainty; you’ve been feeling that in the charts since November. This is why it’s important to get a handle on a long-term mindset, because in the next 5-10 years, you’ll be blown away by what this space is capable of. I’ve seen it myself. But to get there, we gotta get through the bad stuff, and the best part is: we’ll get through it together. To end on a more positive note, Algorand recently signed a deal making them the official blockchain sponsor of the 2021 FIFA World Cup! ALGO has pumped over 20% since the story broke. The terms of the deal haven’t been disclosed, but the exposure alone will be worth every penny. This is really bullish news for them and for crypto as a whole. This is just another reason why having a long-term mindset is so important. Keep your eye on ALGO, it’s no stranger to the two-dollar territory and it’s currently trading around .66 cents. The World Cup kicks off on November 21st! Let’s check back at the end of the year to see how much that global exposure effects the price of ALGO.
That’s all I got. Be blessed. BitBoy out!