A Week In Crypto (11 - 17 Dec 2023)

Welcome back! What a week in the world of Crypto - from wild altcoin price action, to Ledger’s hack, and insane Bitcoin predictions. Here we go!

Two Altcoins Trading at Massive Discount

Avalanche & Chainlink priced at “end-of-year’ discount?

Source: The Motley Fool

TLDR: Despite 2023 seeing remarkable gains in top cryptocurrencies like Bitcoin (107% increase) and Solana (650% surge), some remain down by over 70% from their peak in 2021. Avalanche (AVAX) and Chainlink (LINK) stand out as undervalued options. Avalanche, positioned as an "Ethereum killer," trades over 70% below its peak, offering faster and more cost-effective transactions. Recent developments, including a new crypto collectible, contribute to its momentum. Chainlink, currently at a 70% discount from its 2021 high, operates as a decentralized data oracle, crucial for smart contracts. Exploring AI integration, Chainlink presents potential opportunities in the evolving blockchain space.

In 2023, top cryptocurrencies are experiencing significant gains, with Bitcoin up over 107% and Solana surging by more than 650%. Despite these positive trends, several leading cryptocurrencies remain down by 70% or more from their all-time highs two years ago. Two noteworthy undervalued cryptos in this scenario are Avalanche (AVAX) and Chainlink (LINK).

Avalanche, often dubbed an "Ethereum killer," is currently trading over 70% below its peak, presenting a compelling opportunity. Positioned as a direct competitor to Ethereum, Avalanche boasts faster and more cost-effective transactions. The platform covers various blockchain functionalities, including NFTs, DeFi, blockchain gaming, and Web3 applications. Recent buzz surrounds the launch of a novel type of crypto collectible, contributing to Avalanche's upward momentum. The platform's popularity is evident, with 95% of all transactions on the Avalanche blockchain related to these crypto collectibles. The recent surge, up over 90% in the past 30 days, indicates potential momentum heading into 2024.

Chainlink, having reached a high of $53 during the previous crypto bull market, is currently trading at a discount of over 70%. Functioning as a decentralized blockchain data oracle, Chainlink plays a crucial role in supplying data to smart contracts. In the world of DeFi, where real-time data access is essential, Chainlink's significance is pronounced. Beyond its previous success in the DeFi boom, Chainlink is exploring new avenues, including the integration of artificial intelligence (AI) with blockchain. While the specifics may not be as glamorous, the potential for a groundbreaking idea in the blockchain and AI space could propel Chainlink in the coming years.

Ledger Hack

Ledger User’s Wallets Drained in Hack

Source: Fortune

After a period of relative calm, the cryptocurrency world faced a significant scandal, as hackers targeted the software connecting Ledger hardware devices to decentralized applications. The incident, akin to compromising log-in credentials for Web2 services like Facebook or Google, raised concerns about the security of Ledger-style hardware devices, long touted as the epitome of crypto security. Following a swift update from Ledger, which mitigated the situation within hours, cybersecurity experts advise caution when interacting with Web3 decentralized applications (DApps). The hackers managed to siphon over $500,000 from various wallets, prompting stablecoin issuer Tether to freeze a portion of the stolen funds, showcasing a more responsible industry response. However, the reputational damage to Ledger and the broader crypto community is notable, as the incident contradicts the perceived robust security of hardware wallets. The hackers reportedly exploited a phishing email sent to a former Ledger employee, highlighting lapses in cybersecurity practices. The incident, rooted in Ledger's ambitions to expand beyond hardware wallets, has drawn criticism, challenging the industry's claims of decentralization and enhanced security in the Web3 era. While the crypto community swiftly condemned Ledger's lapse and emphasized the need for improvement, the incident raises questions about the industry's ability to navigate future challenges.

Always follow best practices for securing your crypto assets, such as keeping your hardware wallet firmware up to date, using strong and unique passwords, enabling additional security features provided by the wallet, and staying vigilant against phishing attempts.

Most Bullish Bitcoin Prediction

Cathie Wood of Ark Invest Doubles Down on BTC Prediction

Source: The Motley Fool

TLDR: Cathie Wood, CEO of Ark Invest, known for her bold predictions, has set a striking price target for Bitcoin at $1.48 million per token by 2030, suggesting a potential gain of 33,557%. Wood cites factors such as institutional adoption, the role of Bitcoin as an inflation hedge, and its utility in remittances as key drivers for this surge. However, skeptics argue that historical trends, low global Bitcoin adoption, and regulatory challenges pose significant obstacles to such exponential growth. Despite the debate, Wood's forecast prompts a critical evaluation of Bitcoin's future prospects and the hurdles it faces.

Cathie Wood, CEO of Ark Invest, renowned for her bold predictions, has set a striking price target for Bitcoin, envisioning it reaching $1.48 million per token by 2030—a remarkable gain of 33,557%. Wood supports her optimistic forecast by highlighting factors such as anticipated institutional adoption, Bitcoin as a hedge against inflation, and its potential utility in remittances. However, critics argue that historical performance, limited global adoption, and regulatory challenges could impede such substantial growth. Despite the ongoing debate, Wood's prediction prompts a comprehensive examination of Bitcoin's future trajectory and the significant obstacles it may encounter.

Wood, recognized for her previous accurate predictions, has a history of bullish sentiments on crypto. Coinbase constitutes the largest holding in Ark Invest's flagship Ark Innovation ETF, and the Ark Next Generation Internet ETF also provides exposure to Bitcoin through its ownership of Grayscale Bitcoin Investment Trust.

Wood's thesis for Bitcoin's upward trajectory revolves around factors like institutional adoption, positioning Bitcoin as a new asset class gaining adoption similar to emerging markets and real estate. She also sees Bitcoin as a practical hedge against inflation, emphasizing that corporations holding Bitcoin on their balance sheets is more sensible than holding depreciating cash over time.

Wood anticipates remittances to be a significant market for Bitcoin, providing protection from currency fluctuations and hyperinflation when sending money across borders.

While Wood's arguments seem logical, investors are cautioned to consider certain aspects before embracing her projections. Bitcoin, existing for nearly 15 years, has faced challenges in achieving global adoption beyond being a speculative asset. El Salvador, often cited as a Bitcoin adopter, has experienced slow adoption due to limited internet access and a lack of enthusiasm among its population. Remittances via Bitcoin in the country account for only about 1% of the total, according to the central bank.

In addition, Wood's argument about institutional adoption faces skepticism, with prominent figures like Warren Buffett expressing disdain for Bitcoin. The notion that Bitcoin serves as a hedge against inflation is also challenged by historical data, as Bitcoin crashed in 2022 despite inflation peaking.

Wood's ambitious price target for Bitcoin raises questions about the feasibility of setting such targets for cryptocurrencies, given their volatile nature and the unpredictable factors influencing their value. As Bitcoin already enjoys widespread awareness, questions arise about its utility for the general population, with potential new opportunities questioned by skeptics. Increased regulation, including the Digital Asset Anti-Money Laundering Act in Congress, may further impact Bitcoin's future prospects.

Crypto Fear and Greed Index

Token Watch: Weekly Top Movers In the Top 100

Internet Computer (ICP), Coin #20, 85.8%, $10.42

Bonk (BONK), Coin #54, 75.8 %,$0.00002306

Osmosis (OSMO), Coin# 76, 63.8%, $1.36

Tera Luna Classic (LUNC), Coin #69, -19% $0.00016302

Mina Protocol (MINA), Coin #85, -18.6% $0.742661

Kaspa (KAS), Coin #36, -16.9%, $.107193

Crypto Meme Corner

Source: Google Images

Thanks for tuning in! Until next week,

-The Token Mindset

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