~Estimated Read Time: 4 Minutes and 5 Seconds
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Hey Tea Sippers 👋,
We are glad to see that you are back and ready to start the weekend. Recent news has come out that a major crypto hedge fund, 3 Arrows Capital, is coming to its demise as companies begin to liquidate their positions from the hedge fund.
In other news, two major crypto companies Terra and Celsius have faced some major problems from volatility to liquidations and to their price ultimately crashing. Their plan of reconciliation thus far has been, ghosting… Let’s see how long this will last before people begin to retaliate.
Lastly, President Biden is working to suspend gas taxes as inflation has been rising by an extreme amount and the government is looking for ways to bring down the surging prices to prevent a recession from occurring.
We hope that you enjoy the stories we have for you. Grab your tea and start sipping!
Cheers! ☕️
1. The Fed’s fight against inflation.
Do you remember those days when you go to the convenience store and would spend a few dollars on a boat load of snacks? Yeah, those days are essentially over.
The price of goods sold has rapidly increased
Inflation has started to rise immensely.
Supply of goods has decreased
When inflation rates rise, the government must raise interest rates, so there is less money flowing through the economy. Think of it like this, if there are a large number of people with a high demand for goods, but the supply is low. There is then a lot of money circulating in the economy with essentially no worth because the supply does not meet the demand. Instead, the government is looking for ways to decrease and revert the current prices, so that there is more of an equilibrium to reduce the inflated prices and high interest rates.
What are the risks of high inflation?
Higher unemployment
Stagnant wages that can’t compete with rising prices
Potential for a recession
Raise in interest rates
The Big Gulp ☕️: The Fed is in a frenzy to get this problem sorted out. Some are saying that a recession is inevitable, while Biden seems to think that it can surely be avoided. The ultimate goal for the Fed is to figure out how to restore economic balance in the least destructive way to our economy. Stay tuned to see how the Fed will save or hurt our economy in the next few months.
2. Sam Bankman-Fried is the man of the year as he bails out struggling crypto companies.
Sam Bankman-Fried otherwise known as SBF is one of the wealthiest and most generous in the crypto world. He is the founder and creator of FTX a cryptocurrency exchange on the market.
They are the fastest-growing exchange on the market
Now ranked #3 on the exchange market with over $9B in transaction volume
What’s his plan now?
Sam is surprisingly given away a majority of his money at an early stage in his life. Sam signed the giving pledge, which is a vow to distribute one’s wealth for philanthropic purposes.
What else?
On the other side of things. SBF is also helping out struggling crypto firms with staying afloat. Since many crypto companies are banking on the fact that they are independent of the government. They get no support from them. Therefore, as a result many crypto companies having liquidation and default problems, get no assistance.
This is what SBF is doing for Blockfi and Voyager, two crypto companies:
He gave Blockfi $250m in revolving credit.
He’s investing $500m into Voyager Digital
The Big Gulp ☕️: SBF is the crypto world’s Prince charming who has come to save the innovators from dying out. He has grossed over $20B in net worth and now he is vowing to give back and help those around him. As FTX continues to scale massively, his recent stake in Robinhood, and his philanthropy, I’m excited to see what else he has in store!
Extra Tea ☕️
Let’s learn- Jay Z and Jack Dorsey started a bitcoin academy in a public housing complex.
Web 5- Jack Dorsey plans to work on a digital identity layer built on bitcoin’s technology infrastructure.
Ronaldo- Famous soccer player Cristiano Ronaldo signs an NFT partnership with Binance.
New Coin- Circle launches a new fiat-backed stablecoin called Euro Coin.
Blog Pod ☕️
Hey Tea Sippers,
I have a quick blog post for those of you interested in knowing the difference between this Bear vs. Bull Market everyone keeps talking about.
Cheers! ☕️
Tea Pods ☕️
Are you interested in learning more about the crypto winter? Take a listen to this podcast by TechCheck CNBC, which talks about where bitcoin will go next, and the state of crypto in general. I hope you enjoy!
Sencha Tea Fact of the Week ☕️
“At least 46 million Americans have invested in Bitcoin.”
More Tea ☕️
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Since you made it this far!
If you or a friend know anyone interested in the space, feel free to recommend them.
And, if you have any questions, feel free to contact me: Kristian Lamarre.
Cheers!☕️