tl;dr

Kimmie and perpetual futures contracts.

Market Snap

Market Wrap

As the press continues to report that we are being engulfed by market turmoil, personally I see positive moves across most asset classes, including a stunning rally in the long end of treasuries. I note that GBPUSD is now higher than before the pre mini budget.

What am I missing?

Curious Cryptos’ Commentary — Kim Kardashian

Unlikely strapline I know but bear with me.

Kimmie, as I am wont to call her when we speak in person, has been fined $1.26mm for promoting EMAX (EthereumMax), an ERC-20 token whose only relationship with ETH is that it is an ERC-20 token.

I must confess that I am a little uninformed about social media and the role of influencers, though I do know that the job exists. I can proudly tell you that I did watch the very first episode of Big Brother back in the day on C4.

I vowed never to watch a reality TV show again, a promise that I have not failed to adhere to. I wish I could apply that commitment to moderation in all other areas of my life.

Kimmie was paid $250k for promoting EMAX, a fact she did not disclose to her Tox-Tickers and Instas and the like. And she has been given a slap by the SEC but between you and me, I don’t think she cares much about a million dollars. This is all good publicity for her.

Now that I have a grand total of SIX followers on Medium, and my website blog gets read sometimes by as many as TEN people a day, I look forward to being offered $2.50 to promote some ****coin.

Kimmie aint got nothing on me.

Curious Cryptos’ Commentary — Gratuitous use of a Kimmie photo as clickbait

Curious Cryptos’ Commentary — How cryptos affect TradFi

The concept of perpetual futures contracts remained just that, a concept — apart from a brief trial using gold many moons ago as I recall — until the advent of cryptos.

Though there are traditional futures contracts traded across many traditional exchanges the new breed of cryptocurrency markets developed perpetual futures on cryptos into an important asset class of its own right.

Leverage can be both a force for good, and a force for destitution. In the crypto world, the latter is most likely to prevail.

Now the idea of perpetual futures is being used for a USD spot index.

Crypto exchange FTX — which does not appear on the CCC exchange approved list which might be because I have never found the need to use it — has launched perpetual futures contracts on a basket designed to “track the performance of a basket of 4 leading global currencies versus the U.S. Dollar: the euro, Japanese yen, Canadian dollar, and British pound.”

The only time one should personally use leverage is to buy a house, as that is the only option for anyone not being paid $250k for one simple social media endorsement. But TradFi is based on leverage and could not exist otherwise. It will be a coup for cryptos if perpetual futures start to replace the traditional monthly or quarterly rolls for current futures contracts.

Compliance Stuff

Trigger alert warning — if any reader feels that they are “literally shaking” (as claimed by a Durham student who cannot emotionally cope with a different point of view as posited by Rod Liddle) after reading my commentary, then I can only suggest you don’t read, or don’t shake. It is entirely up to you.

Cryptos — none of my commentary should be seen as a recommendation to get involved in cryptos. I might be talking complete nonsense without knowing it. Any crypto investments must be viewed as extremely high risk and treated as if they are worth zero until sold.

Stocks — just to make it clear this is not a stock advisory service. The CCC team does not provide financial advice in any way at all. Any reference to asset prices in this commentary are there to simply give context to the commentary and to give colour to the performance of certain stocks related to cryptos.

For the avoidance of doubt, this newsletter is not an incitement to buy cryptos, buy stocks, or even to sell family members in the hope of buying cryptos or stocks.

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