 Hello, friends, and welcome to another episode of the Marker Report. I am your host, Benton, and we are joined by a resident expert today, Jordan Finneseth, Marcel Peckman, Samborgi. Well, Jordan uses his background in psychology and human behavior to spot the emerging trends in crypto. Samborgi is a business editor at Cointelegraph, where he brings a decade of experience in economic analysis and financial market writing. Marcel Peckman applies his 17 years of experience trading derivatives, options, and futures to the crypto derivatives markets. Guys, this has been a hell of a week for crypto. I don't know how else to put it. It's blood in the streets. It's crazy. And as USD losing its peg from a dollar, it's the sky falling. What is going on? How are we feeling right now, guys? Well, Benton, if that's the worst that can happen with crypto throughout the year, considering the global crisis and Fed increasing the rates and et cetera, it will be perfect. It will be the best year of our lives. But I don't think that the worst has already happened. I think if a general crisis on traditional happens effectively, take place, an S&P falls another 20%, things are going to get much worse than that. But let's pray for that doesn't need to happen. Maybe Fed is going to save us. But considering the scenario, the macroeconomic scenario we're living right now, we should be fine. And I see rapid price falls, scammy type projects, things falling apart. I'm like, this is crypto. Crypto's being really crypto right now, right? Like, wow, that's what we're all here to go. This is kind of par for the course, folks. If you need crypto, welcome. You're like a nice introduction. This is how it goes most of the time. Well, amid USD losing its peg, Bitcoin crashing below 30K, we're down 1.4 trillion from the peak for crypto market cap as a whole, stock sell off at tightening. I'm here to talk about steam today. So, you know, that's really, really good timing. I just, I mean, I like I've been saying before, like it sound like a broken record. I don't see any scenario in the short term where crypto rallies or recovers. You take a look at what's happening with the Fed. The writing's been on the wall. We can talk a little bit more about what they could do, you know, as something eventually breaks, as you're seeing with the stock market, they're hiking rates into a recession or into a recessionary environment. It's not looking good for the prospects of continued great hikes. But that's why tomorrow's CPI report is going to be really important. So we can touch upon that as we go along. Exactly. We're going to be diving into a lot of these topics today. Marcel's going to be lending us his intel of what he's seeing in the markets and hopefully being that steady rock for you during these trying times. I want to welcome everyone that's tuning in. I see CalToro is back, Luciana Jackson, Dumont. Welcome back to the show. Vikram, glad to have you here as always, Adrian. Thank you for tuning in. Don't forget to like and subscribe. Cointelegraph we're here on Tuesdays at 12 p.m. Eastern. So a lot of stuff to dive into. And one thing I want to add though, is it seems like if you've been around for the last year, you have kind of witnessed the full psychological cycle of the markets, whether that's the euphoria of being at 60K. Now we're kind of in this depression slash disbelief. And so does the bleeding stop? Does the pain end? Are we at the bottom? This is all going to be stuff I think we're going to get into today. And we're also going to be talking about some social tokens that during this time, maybe you're reevaluating your portfolio. And when this kind of headwind comes for a more bullish market, maybe you take a look at some social tokens. So we're going to be talking to you about potential projects that we believe have longevity even through bear markets. But first things first, we're going to get into our weekly roundup to get you caught up on some of the latest headlines in the Twitterverse this week. So go ahead, Danilo, let's go ahead and jump into our weekly roundup. As Luciano was digging the electro swing soundtrack on this week's weekly roundup. So well done to our video team for that, that recap. What's going on this week? So a lot of UST headlines in there. But before we get into a lot of that stuff, I want to hand this over to Marcel because he's going to give you the information to sleep, make you sleep well at night. I think he's going to be very eye-opening with some of the stuff he's going to tell you today. So I will go ahead and let Marcel give you some good news. We need the good news, Marcel. So Danilo, let's roll it back. Let's let Marcel do his thing. First of all, zoom out. Sure, some traders excel at short-term swings, but the vast majority of investors will get completely wiped out using 15 minutes and one hour candle charts. And there are two reasons for that. The first one is that we are emotional human beings. And crypto has a high daily volatility, meaning it's quite normal for 5%, 7% fluctuations on a single day. So basically, every time the price goes against you, there's a gigantic pressure to close the position at a loss. Humans were not made to endure losses, especially financial ones. Second reason, algo traders, those firms with deep pockets using bots, the algorithms, are very good at manipulating the short-term prices, and they can withstand the pain for days and weeks, but not across several months. So it's definitely painful to watch Bitcoin go down 25% in five days, but in a grand scam of things, that's really nothing. And to prove my point, I'm going to show you the top, bottom, and weekly performances over the past three years. So Danilo, you can share my screen, please. So here on investing.com, we can check the weekly performance of Bitcoin. For instance, in March 2020, on a single week, it went down 41%. On May 2021, we had two consecutive weeks of 20% losses. On the other hand, we also had multiple weeks of 20% and higher gains. So a 25% move, it's not that bad, it's not the end of the world. So what's the big picture here? So this chart I'm going to show you is the total cryptocurrencies market capitalization. Right now, near 1.8 trillion dollars. So if you see the moves during 2018, 2019, we got desperate at the time. Yes, the market capitalization went from 500 billion dollars to 120 billion dollars. Yes, it was the worst thing in the world. It went down by 75%. And it was agonizing. But those who managed to survive, not to get liquidated using futures, were rewarded with 20x gains. So the chart we're seeing is the 90-day moving average to remove distractions from weekly performance. We're watching a three-month average price. So we got 20x gains for those who stood alive. Thank you, Danilo. So you probably have two questions. The first one. Suppose the 2.5 trillion, the recent peak of market capitalization, is going to be the biggest number for the next two or three years. There's the cycle theory, Bitcoin, etc. So isn't it easier just to wait outside for two years and then re-enter at a lower price? Yes, you could do that. But crypto rallies are not evenly distributed throughout the months. For instance, if you are an Ethereum investor and you missed the best three months out of the past two years, your gains were 40%. If you stood for the whole two years, your gains were 950%. So if you stay out of the market, you're not going to get those months of exciting pumps and gains. And the second question is, should we be buying aggressively here now that Bitcoin and cryptos drop 25% in five days? And the answer is not really. For instance, in September 2021, the crypto market capitalization dropped from $2.5 trillion to $1.9 trillion. In December, just three months later, it dropped from $2.6 trillion to $2 trillion. So you're basically setting up yourself to buy after the rally when the corrections happen, and that's not the best strategy. Maybe you should be buying regularly every month. So in a nutshell, do not try to time the market. Do not do short-term trades. Do not use leverage. Why? Because humans have a natural tendency to close the position at a loss. And crypto is too volatile. So the only way out is to average by every month, which you call dollar, cost, average, or DCA. Love it. The golden rule of all things crypto. So I guess you had some great insights there, Marcel. And I just want to emphasize this to the audience. For those that live through the 2017-2018 cycle, they benefited greatly and immensely just by waiting an extra year or two for this last run. Who knows what's going to happen if this could go lower, or we are an extended bear market for the next two years, but have the light at the end of the tunnel. If it is this four-year cycle, 2024 is around the block. And if you are getting in now, Marcel made an awesome point about dollar, cost, average now, so that when the next big wave comes, who knows? But you're ready for that. And you're not even worrying about your position. You're picking your cryptos that you love and that you believe in long-term. And then when the next wave comes in, you're ready to ride that wave and you're all set up. So excellent insights this week, Marcel. Any questions, Jordan, or Sam on that? I was going to just point out, yeah, that's a really good focus on the psychology part of it. And really, it's establishing a plan and putting it in place beforehand. Because once market starts moving and we catch that FOMO, it can be really hard to not jump in. So yeah, finding products you like early on, dollar cost averaging into them, that way, for me, when I start to feel that FOMO, that's actually my signal to that now take profits, because it's going up. And I'm like, okay, it's running, but it's so backwards that you've got to really be on top of your psychological game to come out on top. Yeah, those of us who live through the 2017-2018 bear market, this is all comes naturally to us now. You can hear the pain in my voice slightly. I'm still human. I haven't acted on anything. I can still feel bad. If I want to feel bad, I can feel bad. It's a free world. I can do whatever I want. But that's not going to affect my decisions in my portfolio, right? So I guess Marcel, I can ask you, what's your perception of where the market is headed the next three to six months, given the Federal Reserve, given inflation? I don't really see much upside anytime soon, but I'd like to hear your thoughts. Well, Sam, I think the risks right now are bigger than the potation gains. For example, we have regulation in the United States. We have Europe. They're trying to set up their CVDC. They're trying to mitigate the impacts of Russia and Ukraine. So there's a lot of uncertainty on the macroeconomic scenario, which is bad for crypto. A lot of people say, well, when a crisis comes to happen, a global crisis, whatever it calls, it's going to be good for cryptos. It doesn't work like that, because people, when they get scared, when they think, well, maybe there's going to be a crisis longer or worse than expected, they want safe investments. And crypto is not yet considered for the vast majority of investors as a safe investment. So they want to want cash, US dollars, or treasuries, or global bonds, but they're going to diversify away from risk investments. And that's exactly what we're seeing right now in play, tech stocks and mortgage-backed securities. People fear that the housing market is going to collapse. They just exit them at a loss. So even if Bitcoin is trading at a very cheap price like $20,000, for instance, during a crisis, people are going to keep selling it because they're going to be scared. They're going to go to the options. They're more comfortable with it. And right now, Bitcoin is only a reserve status asset for the minority of people, 5%, 10% maximum of people understand Bitcoin and cryptos as something safe and sound. So I think the risks right now are for the downside. I just want to chime in here. Shelter Corey says regulations that prevent users from shorting our criminal limiting population to being backholders for the rest of the world. I thought that was a pretty interesting insight. The other question I have for you, Marcel, is so you kind of answered the short term, what's kind of causing the macro level of where we're at right now? But like, are we in the midst of what could be potentially a black swan event with this whole Terra Luna, deep pegging, considering that Bitcoin is such a large part of their treasury? It seems like Bitcoin and Terra Luna are very intertwined. Is this maybe the black swan event that nobody kind of saw coming? What are your thoughts? And if you wouldn't mind, just kind of tell us what is going on with Terra Luna right now from what you know. Okay, so Terra Luna has an algorithm stablecoin, which is the USD backed partially by Luna, backed partially by Bitcoin and Ethereum. And if the Ethereum and Bitcoin price go down and Luna price go down, there's not enough reserves to back those stablecoins. So they're forced to sell those assets to raise cash. And they have been tested recently as the crypto markets went down. And right now, we're not sure exactly how much money they're missing over there. So if Bitcoin and Ethereum and Luna don't recover, it's going to be a big risk. But $1.5 billion, it's not enough, a sale of $1.5 billion, it's not enough to drive the price from $32,000 to $25,000. That's simply not going to happen. There's enough liquidity for that. Maybe a 27, maybe a 28, maybe a 30, we don't know, but there's enough liquidity to buy this sale. So not a black storm. Jordan Nersen. Okay, I would call it a white swan event, because a lot of us saw it coming, right? Maybe not to this extent, obviously, I don't have a crystal ball, but you know, there was a lot of issues with the backing, in my opinion. And you're backing your asset with another asset of a different risk profile. And we saw a drawdown in Bitcoin and look what happened. So I think it was a white swan event, because a lot of people had talked about the potential shortfalls. Of course, no one can predict when it's going to happen or how it's going to materialize. But these issues have been at the forefront for a long time. So the BTC reserves made a lot of really good headlines. We wrote about it, I wrote about it, but there's a lot of structural underlying issues there. And we're starting to see it now. And I think the thing that people don't take into account is the fact that we're trying to eat the lunch of a bigger player, which is the US dollar, they're not just going to sit idly by and let a whole new financial system arise out of nothing and rise rates at great heights. It's not without the outside of the realm of possibility that even central banks could have had some influence in this whole thing, because we hear all this talk about 90% of the countries around the world launching CBDCs. They want crypto to look bad so that that can look good, because they're like banks are the trusted entities. So there's a whole lot going on here. And we just kind of buckle up folks and hang on for the ride. And this does kind of bring up an interesting question. I see Vikram in chat here says how are stable are algorithmic stablecoins? And from my experience, I have never seen algorithmic stablecoin work. Like they just literally have all failed at some point, whether it's been a six month run, a month, 10 days, they have all failed. There's not been a successful sustainable algorithmic stablecoin. So we will see what happens with UST. Marcel just noted before we jumped on the show today, Delquan tweeted, a plan is coming. So stay tuned. So we will see. Hopefully it doesn't drag the entire market down. But so I guess, Marcel, from what you're seeing, I know you like to show like the chart of like the percentage rates, but like what are professional traders doing right now? Are they kind of sitting tight? Are they hanging on the sidelines? What are they kind of doing in assessing when we're kind of in this downfall? You made it, Marcel. Oh, sorry. So the futures premium, which measures how much more money they are willing to pay for contracts three months and six months advanced is at 2% per year, which is yeah, low, but it's not negative. So they're not excessively bearish. They don't think the price will continue falling. There's no real demand for short selling. So doing leverage bets that the price is going to keep going down. It's simply not happening here. Maybe people will expect the market to recover to $40,000 and then I say, well, I can make a sale here $40,000. I bet it's going to go back to $30,000. But at $30,000, there are simply no sellers around. Jackson Dumont is Delquan the new Justin Son. You guys have questions for Marcel. This is a big topic this week. It's like a lot of people are scared. A lot of people don't know what to do. Maybe this is your first time going into a 50% dip. Curious to hear Jordan and Sam, how are you all approaching this type of scenario? Are you kind of reallocating funds? Are you looking to get in at these levels? Do you think this is the bottom? Jordan, I'll ask you first, what are you kind of doing in this position? Well, this is actually the first time in a while that I'm considering putting money that I earn from working into the market. But this one is that fear part. Like, is it going to keep going down? He's kind of got to bite the bullet and stick with the DCA just this much every week, this much every month or whatever and put it in. But yeah, I'm looking to accumulate some projects that I've been, I like for a long time now. But I'm not going to say that the market is not going to go down anymore either. So yeah, I've been fully allocated toward my crypto for a long time now. So I mean, I envision myself adding at some point in the future, but I don't think we bought them just yet, given just how quickly things have kind of gone sour. I think the next few months, we will probably see a bottom materialize. And at that point, we kind of reassess where we are in terms of the bear market. Really, I'm looking for, I'm just taking it day by day right now, looking at the Federal Reserve tomorrow, there's going to be a CPI report that is going to be really important because if the CPI shows that inflation peaked the previous month, we could start to see some changes in market perception in the sense that if inflation already peaked and we're going back down or the rate of growth is slowing, the Fed might not be as aggressive moving forward. And I put all that because the market is still intricately tied to the Fed, it's still intricately tied to risk perceptions. So we haven't seen that decoupling yet. All I know is that I'm not really going to sell at capitulation levels. I don't really see any point in that. And obviously, if you're overexposed, you might not have a choice, but that's why it's important allocation size relative to your net worth is really important. Danilo, if you can pull up my screen real quick, I just want to show something. These are the top 2018 tokens from 2018. So I do want to kind of like zoom out and give perspective like Marcel was doing. You saw XRP was the second biggest crypto at the time, Bitcoin, Cash, NEM, Tron, Stellar, Iota, Dash. Some of these coins are not even in the top 20 anymore. And so kind of zooming in now today, it's like, look what we have and what's changed and evolve over two years. What's kind of the cream of the crop that stayed around during the previous bear markets? You see Bitcoin and Ethereum, they're always in the top three. So when you're kind of looking at these times, it's like, it's also important to keep that in mind is that two years from now, the landscape is going to look completely different considering kind of where for hat. So thank you, Danilo, for sharing my screen there. Do you all have any other questions for Marcel though? I see we have the chat going on today. A lot of people want to know the skinny with what happened with Luna. So if you're just tuning in, essentially there has been a run on their stablecoin, their algorithmic stablecoin, and they are starting to sell off a little bit of their Bitcoin and their treasury to help back up that stablecoin. But yes, any other questions for Marcel Jordan or Sam today? I'm done for now. I don't want to talk about this anymore. This is too depressing. It's too depressing. God. All right. Well, we do have some good news for you. So if we are getting out of a bear market eventually, you may want to consider looking at some social tokens. And I want to also emphasize that these are the personal opinions of each panelist. This is not the expressed opinion of Cointelegraph. So these are the personal opinions of each folks that are talking about these projects today. And I know Sam has a real great project, Steam. If you haven't heard of Steam, now you have. Sam, I'm going to let you take this away to talk about what's going to be the best social token for this year. I never called it great, but I called it the OG social blockchain. It's the moment everyone's been waiting for. We're going to talk about some social tokens. And I'm going to be talking about Steam. A lot of you who are new to crypto, you probably haven't heard of Steam, but you have heard of social tokens, you know, social blockchain, all that stuff. Well, Steam was the OG social token. It came into being really during the last major bull market phase. Had a lot of momentum back in 2017. Huge numbers in terms of involvement on the actual platform. Obviously, that's not the case anymore. But I think that as attention shifts back to social, which I think actually will happen maybe in 2023-2024. I think a project like Steam can have some potential for upside. So the goal of Steam as a social blockchain is to support social media by giving value to content creators and creators to contribute to the platform. It's a scalable blockchain with a fee less token that allows people to earn tokens using what they consider to be the proof of brain concept. And the proof of brain is based on a pool of tokens that incentivizes content creation. And that also leverages the wisdom of the crowd to access value of content and how the token should be distributed. In terms of what I look for for investing in a project like this, again, it's not the flashiest name. And there are a lot of issues with respect to maybe lower adoption, the fact that its price never really recovered anywhere near 2017 levels. But some factors I look for are things like low market cap, it has a tight trading supply, and a relatively reasonable inflation rate. It's never been hacked. It's really important. It has a good block time without much disruption. It's a proven chain. It's an older chain, but it's a proven chain. So that's why we shouldn't always just scoff at older technology. It's older, but if it's still being used, then it has a good use case. Because we're seeing recently a lot of new technologies with bells and whistles haven't really panned out. They've had a lot of significant issues with hacks, with downtime, etc. Having a reliable blockchain that has been around for a long time is potentially very valuable. People have also forked the system in the past, creating airdrop opportunities. The TRON team is actually behind Steam, which also leads to more resources potentially being put into the ecosystem moving forward. I think as more attention shifts to social tokens, any interest in that space is going to be beneficial for Steam. On the flip side though, any kind of sell-off is going to be negative for it as well. So I look at it as a fairly low risk, moderate reward social token that could have potential in the next leg of the bull market, especially as more attention is being paid to social tokens. I think it might be a viable option for those of you looking to diversify your holdings in the social blockchain sphere. Sam, you had me at Justin's son. My question is this. It seems like they took a page out of the Binance Smart Chain playbook with the proof of authority consensus mechanism. Do you see that as a pro or a con when it comes to the Steam blockchain? I think the governance has always had issues with respect to the delegated proof of stake. It sounds really good. A lot of the issues early on in blockchain is how do you create consensus and what are the best ways in which you can do that. Depos has its own issues. I've always flagged those for Steam, but I just try to look at other factors that could potentially be a good, that could offer a good investment profile. So governance right now in my opinion probably isn't the strongest, but that can change as the ecosystem continues to evolve. If it does evolve, that is. Sam, I have a broader question here. So how can a social network compete with Meta Facebook, a company with 120 billion dollars of annual revenue? I mean, what's the 10x advantage for the users to move out from Instagram, Twitter or TikTok to a decentralized application such as Steam? Yeah, I think the competition right now is there's not very much competition, you know, because Meta obviously has a huge advantage and I don't think anyone denies that. I think where the social chains can really become beneficial aside from the aspects related to censorship and that's a different subject. I think what these platforms do is they incentivize monetarily content creation. So they're allowing you to earn tokens that have monetary value by contributing to the platform. So that for me is a potential value driver for the ecosystem as a whole, not just for Steam. The ability to monetize your behavior, to monetize content creation, to monetize content curation, I think is going to be one of the biggest driving forces moving forward. Even before people understand things about decentralization and censorship resistance, I think the monetization aspect is going to be huge. What do you think blockchain platforms can do to attract people from like a Twitter or a Facebook that are already so prevalent and not so crypto focused? Well, I think Facebook is already losing a lot of its luster, what do they say? They call it Boomer Book now. So I think a lot of people are trying to get away from Facebook. I think honestly if they can really incentivize or they can show the monetary incentives, we're always looking for ways to monetize our behaviors. If you can give people an easy way to understand how they can monetize their blogs, how they can monetize their contributions, their upvotes, their posts, I think it's going to be really attractive value proposition, but marketing is going to be an aspect of it. Creating an actual interface that's usable, which Steam, it's not there, man. It's the same it. This ain't it. If you're looking for usability, the Steam blockchain is not it in my opinion. All these things have to come together to give people a really good user experience, also demonstrating the monetary potential of holding that asset. So I do have a couple of questions, Sam. There's competitors to this platform, like Hive or Blurt or whatever the heck the other one is, where people are incentivized to post and then get paid and create the content, but what is really going to give Steam that network effect? We've seen from Web 2 with the examples of the impact of having the network effect. Oh, all my friends are using this, so I need to use this. I'm on Instagram, Facebook, Twitter, et cetera. With the incorporation of NFTs now happening on Facebook, Meta, and Instagram, that I think gives opportunities for creators to monetize what they're doing. How does Steam compare to that and how do you get that network effect on a platform that maybe has other competitors or just isn't providing maybe as much value as the Web 2 right now? Yeah. The Hives and the Blurts are actually forks of Steam, so that's really interesting how that turned out. I think the issue is, I mean, Steam had a really strong network effect back in 2017. If you took a look at the monthly users of Steam, it was absolutely incredible. Back in the day, I was writing for Hacked and I gave them an ICO score that was really high. I was really excited about Steam. I really thought that they can disrupt centralized social media. It didn't turn out to be the case. I think right now, the network effect is you have to create a functioning, a very, very good functioning interface. That's the number one. And again, being able to market your offerings around monetizing your behavior. I think that's huge. I don't think anyone's really doing that properly. The idea that I can contribute to social media and earn actual financial rewards, not just through donations, but actually through my work, I think is a huge value proposition. Jordan, did you want to get another question in or arm ourselves? We do have one audience member, Jackson, who has a question. So if you guys don't. All right, cool. So Jackson Dumont, loyal audience member, he wants to know, do you think this has the potential to replace ad revenue on platforms like YouTube, Sam? So this is about Steam. I think that's a really interesting, really interesting question. I think ad revenue for a lot of platforms has really declined over the years. I mean, I was in the business of Google ad revenue for various websites. We saw that plummet because we were beholden to the Google algorithm. With Steam and a social platform like that, it changes the monetary value proposition of social networks. So I think it absolutely can. It might not be Steam that does it, but the idea that users can actually monetize their behavior. Think about that. Monetizing my behavior, monetizing my social contributions. I'm not just getting money. I'm getting money for providing real value. That's where I think the real value proposition is and where I think this whole crypto social blockchain phenomenon can really take off. No one's done it the right way yet, though, in my opinion. I think that's one of the interesting things with Web 3 is how this advertising model is going to be flipped on its head, where the users or content creators are going to be put at the forefront. So it seems like Steam is trying to tackle a lot of that stuff. But great insights today, Sam. I think you're on a five-week win streak. So hopefully he wins the hearts and minds of all of our viewers today. But great presentation on Steam. We've got to say, very enticing. I've been familiar with the platform before, but now because of all this info, I may go take a second look. All right. Thanks, Sam. Now, don't forget, folks, we are giving away that one month free of subscription of Markets Pro. So go ahead and drop your Twitter handle in the chat. We're going to be selecting at the end of the show or also open up the poll at the end of the show to see what project you're most bullish about. So go ahead. If you want to just go ahead and get Markets Pro, we got the description discount in the description. Sorry. That's 20% off. So huge discounts all around Markets Pro. Given that away, we're going to be diving into that a little bit later. But I want to get into my segment today because I have a social token that I think you might want to consider looking at once we get back into a bull market. So let's go ahead and jump into whale this week. All right. Well, what is whale token? Well, there's a 10 million supply of whale token ever created. And the launch value of each whale is being underpinned by a basket of some of the rarest and most sought after non-fungible tokens in the industry. So these NFTs include gods unchained, rare digital art from crypto art, crypto voxels, sandbox, avastars, and crypto motors. Well, whale is in return a true tangible asset backed by currency, which is NFTs. That is instead using gold like previously done with the US dollar and using digital art and collectibles to back that whale token. So it's seeking to strike a balance between wealth preservation and growth speculation through a well-balanced basket of some of the rarest NFTs in the game. So to me, this is where I want to kind of see the evolution of NFTs. And I think whale is pioneering that in the space right now. So one of the mechanisms that they use is called a whale vault. This is where they lock all the NFTs into the protocol and then issue out the whale tokens from there. So whale claims to be the first social token backed by NFTs and it was launched in May 2020. So perks for some of the whale holders include NFT rentals. You can purchase exclusive NFTs with whale token, participate in whale liquidity mining, purchase digital and physical swag. You can vote in the whale down and purchase selected NFTs from the vault. So I want to touch on this vault system again because I think this is an important point. And so when you're involved or staking or earning from the vault, some of the key features means that you can acquire and retain capital appreciating NFT assets. The sale of the NFT assets only happen at the right prices. They generate rental income from the rental of NFT assets in this vault and creation of sales generating related projects and you can reinvest all the revenues to purchase more NFTs for the whale vault. And so this vault is audited once a month by nonfungible.com. So I think there is a nice system of checks and balances. And so for me, I think whale is innovating and I love to see the innovation. To me, that's the most exciting part. If you look at the token on the chart, it's in the garbage just like every other one. But you know, this could be a good opportunity to just get in and get ready for the next bull market. But I'm going to finish a little bit early with a little bit of extra time. So that is whale token and whale project. Any questions? So the main thing is that they have NFTs backing the value of the token. But like as we've seen with Luna, like, if the value of your assets falls, the value of your token will fall too kind of a thing. What like what's guaranteeing that the whale token price will stay up? And like the NFT market ain't exactly liquid in my opinion. Like there's not like how are they valuing all these different NFTs and whatnot. So when it comes to the value, that's going to be, you know, dependent upon the market. I guess what they did was kind of curated this select NFT collection. So they also have like top shots, some of like the highest price top shots in this vault as well from MBA. And so what they did was kind of create this basket. So I do think there is some flaws to this because, you know, it's not as rare as gold. Yet some of these NFTs do have value. I think they're on to something. Is it, you know, completely 100% figured out? No, because I think there are some flaws like you're pointing out, like what happens if all of a sudden, you know, crypto punks or gods unchained floor price drops to like, you know, 0.1 ETH. That could destabilize the whale token. So yes, there's definitely some flaws. But to me, I think if you can find some of the most rare NFTs that do hold their value and have a proven track record, that could be a sustainable model. For example, large whale token holders to manipulate the votes and buy NFT from themselves paying an unreasonable price. So we all know that government systems work in theory, but in practice, not much people vote. So if a whale gets, I don't know, 5 or 10% of the outstanding coins, he's going to dominate all the voting procedures and can use that to benefit himself. So what's stopping that to happen? Yeah. So when it comes to like the wash trading of the actual NFTs in the vault, is that what you're saying? Yeah. I don't know how that works. I have not been like heavily involved with that ecosystem to see like the ongoing mechanics between the buying and selling of the assets and the vaults. But to me, from what I read through the white paper and some of the docs is like those assets are kind of like there for a long, long period of time. Unless the Dow decides to vote to either sell or I guess buy other NFTs to add into that vault. So it's a valid question. I just don't have a 100% answer for that one. Yeah. Luciana throwing shade today, looking at the pretty website. Yeah, did you see the website? Always throwing shade about the website. Can't catch a break. Any other questions about whale? Go ahead, Zoom. Yeah. Just about the community. I don't know much about this project. Can you say a few words about the size of the community, the participation? How does that look like? Yeah. So when it comes to the Twitter account, I'm going to pull that up real quick. They have 20,000 followers on Twitter. So this is kind of a burgeoning community. I think considering the token supply as well of that 10 million, they're kind of trying to go I think with this niche area. If you look at the overall participants in the NFT space, it is extremely small compared to the overall crypto markets. So this is like a niche within a niche. And so I think it is kind of a very small community right now with kind of like a lot of potential in my opinion. How is this a social token versus like a Dow? It seems like it's an NFT Dow more than like a social platform. Well, according to CoinMarketCap, this was listed under the social tokens. So you have to take up your beef with CoinMarketCap, Jordan. I think the social component of this is like when it comes to how the platform is interacting with the community, the NFTs, the governance model, it kind of creates a little bit of this like social layer. It's not going to be like your Web2 platform like a Facebook or Instagram where you're creating content. I think the content is like the NFTs, which is kind of technically more under the social realm. So that could be potentially why CoinMarketCap decided to list this under a social token. All right. Well, if there is no further questions, I am going to go. I would suggest we deduct two votes from Benton on the voting process because I don't really think that's a social token. He is trying to do some gimmick around here. So I suggest we deduct two votes, Adrian. Just being penalized today. You know what? I got Luciana in chat just barking up my tree. I got Marcel calling me out for not having social tokens. It's a rough day, folks. The markets are red. I don't know what to do. I don't know what to do. But what we are going to do is I'm going to let Jordan talk about his social token for this week. Jordan's got a little pick called Rally. So he's going to give you some of the insights of why Rally could potentially be the best social token for the rest of this year. Don't forget like and subscribe, point telegraph, YouTube, drop your Twitter handle and chat. We're going to be giving away one month subscription to MarketsPro. That's $100 value. All right. So now, Jordan, it is your time to shine some light on the Rally token. What's going on there? All right. So the coin I picked this week for the top social token waiting to take off is Rally. I don't know if anything's waiting to take off right now, but that's for another conversation. Rally, the RLY token is a governance token for the Rally ecosystem. It's a social token protocol that allows creators to interact with the communities at a greater level. This is kind of different from even a Steam or a Facebook kind of type platform where it's just like an open social media type experience. And it's more focused on the individual creators and their communities around them. It allows creators to build their own independent digital economies. Creators can launch their own branded cryptocurrency to use to interact with their ecosystems. This is really good for streamers, artists, musicians, gamers, athletes, or general content creators. It cuts out the middleman and that does a little more than extract fees and allows, again, people to interact directly with their communities. It also allows for the creation of NFTs with utility. I know we're just talking about NFTs and so on. They're taking NFTs from other places. Rally allows creators to create NFTs. You can say you're a musician. You can create a song. You can sell it as an NFT to your community. They can have perks such as other NFT drops in the future, access to a future album or stuff like that. So again, it introduces NFTs with utility. One of the great things about the whole ecosystem is even though Rally is on top of Ethereum, they've built their own side chain to allow for all the tokens within the ecosystem or NFTs that get traded to trade on the side chain for free. So there's not, it kind of cuts out all the fees that are generally associated with Ethereum. So I said fee-less to mint and exchange NFTs allows influencers to interact with like-minded individuals without the fear of censorship or removal. We know you've seen that recently with Facebook, Twitter, or YouTube. People get indeed platformed after they spend all this time building out the communities. That's not really possible here. And you kind of attract your own general community that is actually focused on what you're presenting. So there's less chance for that to happen. And with the money aspect of it, if people don't want to be there, they don't pay to be there or interact with this person kind of a thing. Rally, as I mentioned, Rally operates on the Ethereum side chain and utilizes a proof of authority consensus mechanism. All creator tokens, which are referred to as coins on the network, are launched on the side chain, helping significantly reduce fees. Fans can purchase crypto tokens using crypto or credit cards. So you don't have to be crypto native or really crypto savvy to get involved with Rally or one of the influencers. You can actually use your credit card to buy the token on there. So it's kind of helping usher in a new crowd, not just focused on the crypto crowd. I mentioned that before. I think with Sam, how do we attract people outside of the crypto crowd? This could be one way again, especially if you have musicians or sports people and stuff like that launching their tokens. And members of engaged communities can earn weekly community rewards paid in Rally. So there's a community fund. If your community is really active, there's a fund set aside where ROI tokens can get distributed to the members of that community. So it offers a way to earn income on the side for activity. I think that it's just a different take on the whole social engagement platform and creative focus. So I think it has a lot to offer and should do well in the future in my opinion. Yeah. Go ahead, Marcel. Okay, cowboy. So just let me understand how the process works. I understand that an artist can launch a token and capitalize by selling NFTs or exclusive products and services to his audience. It all makes sense. But is the project integrated with other social networks? For example, the holders of my token have exclusive access to my Telegram group or to my YouTube channel? Is the project integrated with social networks? I don't know if they have that integration fully built out yet. It is still in early phases by invitation only. But those are the things that you can actually build into the NFTs. So that's why I say NFTs with utility, you will be able to have like even now with the board age yacht club or something where there will be a Telegram group that's only accessible to people that hold the NFT. I see that within the realm of possibilities for sure. I think that's the whole point of having the NFT or the creator created tokens to allow for the creation of specific or more exclusive groups and stuff. So I have a question, Jordan. So with these platforms and even this folds into steam as well, how do people moderate the content? What happens if all you get this flood of false information or you get some alt left or alt right extremist casting these content or creatives? How is that being moderated or governed when it comes to a lot of these platforms like Rally? How much does it need to be governed in that sense? Are we so sure there'd be like a content police going out there and saying like this is not allowed? Like if it's a community, if there's people doing something in a community that's not liked, it likely won't get much support. That community won't grow. There won't be a lot of people in there unless you just got like trolls going back and forth at each other. Let them do that in their own little isolated community because then the rest of us can get out here and do what we want to do without their opinions. So I think because there's a financial aspect to it and people can kind of invest in the community, it will help separate that out and weed that out and the people that want to get involved with that can and the rest of us can go somewhere else. But this is like why do we need to censor everything and why can't those people find their own little corner of the internet to do their nastiness and allow us to be over here doing what we want to do kind of a thing. I see Vikram has a question. Can crypto social channels take down videos the way that YouTube took down Bankless HQ channel? Is this something that could happen on rally? I guess this folds into the governance or moderating. I'd have to look into more like what's capable. Can they host videos on top of the network? Because if that's the case, probably not. I think when you get into any of these more public domains with the YouTube and stuff, they're going to get a lot more censorship here. But then this is more going to be a private community. Whenever there's a fee or any kind of membership dues, you can do a whole lot more because you're a private community now. We'll see what happens. We're entering a new realm as far as the whole digital space, what can be censored, what can't be. I think the point of trying to integrate blockchain with a lot of these things is to make it so they're censorship resistant. I know a lot of people don't want to hear that racist people or people that want to say negative things should be allowed to have a space. I don't know. But if we don't all have to be exposed to it, let them do their thing over there. Hopefully, I would hope that you can't be so censorable and they can't just remove things on here. But if they are connected to a YouTube or Telegram, they might always fall into the purview of those. If YouTube doesn't approve of something, that could be censored possibly, I guess. I have a question that applies both to your project rally and to the NFT market in general. What stops a scammer from impersonating a famous artist? Is rally going to implement some manual checking? How can we be sure that this artist posting this content is the real person behind it? Right now, it's a by invitation only, or you have to apply to become a creator on there. I'm assuming that they do a more in-depth vetting process. What happens in the future when that opens up? I don't know. It might be similar to how it right now, even on Twitter, you have to institute a blue check mark kind of a thing where they find some way to verify that the creator isn't stealing somebody else's image. I don't know. If it grows to a large enough size, maybe that's something they can deal with in the future. But we'll see. I don't know. That's a good question. How do they come back inside? I know, like I said, they are invitation only currently, but how does that change in the future? I'm not too sure. Yeah, I've been to. I've got a hot question from Jackson Dumont. If Elon Musk puts Twitter on the blockchain, would you buy that social token? This is completely unrelated, but are you buying an Elon Musk Twitter token if it's on the blockchain? Maybe when it first comes out, and if there's a big pump, I'd sell it because I'm learning many times in the new coin, and it pumps like sell that bitch. Sam Marcel, you guys get in on the blockchain Twitter token? Uh, probably no initially, but stranger things have happened. Okay, dude. Fair enough. I love Twitter. I think it's a very useful social network. But I rather pay like five or $10 per month so I don't have ads and stuff like that. And I can block users that have less than 10 followers, for example. But buying a token for Twitter, I don't think I'll care for that. Yeah, Jackson seems pretty bullish on this Twitter token, especially if he claims if he puts it on Tron. So, I mean, hopefully maybe Elon Musk, Justin Sun, collab, who knows. It's crazy. I think it's more likely to be on a Dogecoin than on a Tron. Right? We can only hope for the sanctity of the entire universe. All right, folks. Well, we're going to open up a poll here shortly. But in the meantime, we're going to get you some of the tokens that you should have been watching on the Markets Pro platform. And we want to remind you that these are the personal opinions of each panelist. This is not the opinion of Cointelegraph. But go ahead and drop your Twitter handle in the chat. You're going to win. The first person that does it today is going to win a one-month subscription to Markets Pro. And we're about to get into why you want to start using Markets Pro, because bear markets, bull markets, Markets Pro doesn't matter or doesn't care. You're going to get the information you need to trade. So, let's go ahead and dive into some of the tokens that we want to highlight this week. First one being Lido Dow token trading under the ticker LDO. What happened? Well, our newsquake, which are automated alerts, these notify users instantly with market-moving events. What happened this week? Well, 26% gains is what happened. That's huge. A Binance listing has once again produced one of the largest news-driven price spikes of this week when Markets Pro subscribers receive the alert of LDO's listing on the platform. The token was trading at $2.73. And in just one hour, that price soared up to $3.46. That's a 27% gain. That's huge, especially during these times. I think anybody would take that. Now, the next token that we're going to be talking about this week is Coinos trading on the ticker K-O-I-N. The Vortex Score, which is a comparison of the current market and social conditions of the past, this one got set off because it struck green. And so what happens? Well, the score is 80 or above. It's competently bullish, 30 or below. Historically bearish. And this week, Coin's Vortex Score went green on May 8th against the price of $0.33, signaling that trading conditions around the asset became pretty favorable. Just three hours later, that huge upside kicked in when Coin went all the way up to $0.39. That's huge. The power of Markets Pro is the Vortex Score and the newsquakes. That's your bread and butter, bull market, bear market. Markets Pro doesn't care. It's going to give you that intel you need to make the moves fast and make sure that you are trading like the professionals. So go ahead, drop your Twitter handle in the chat. It's coming. We're giving away that one month subscription. Don't miss it. So first things first here. Let's go ahead. The poll is open. I want to close today's show out kind of wrapping things up here. Are we bullish? Are we bearish? Give me the next month's outlook. What are your thoughts? I want to start with Jordan. Man, I don't know. I think I saw the fear and greed chart when I was like, extreme fear, extreme greed. They drew in those circles on the bottom. I was like, I don't care anymore. I got in there. This is a crypto market. We had a nice run last year. Are we in for another three-year bear market? I guess I can accept that if that's the truth. I don't want that to be the case, but I accept the worst so that if it changes and it's positive, it's beneficial. So that's where I'm at. Okay. So like a good Canadian, so it's dedicated to Sam here, you've got to be able to withstand the long winter. Maybe it's going to last two months. Maybe it's going to last nine months, but one day people will understand the value of cryptocurrency, of being a censorship resistance and being a scarce digital assets. And this is going to be, it won't matter if you paid $25,000 or $50,000. You just got to hold on for the winter and it may last longer than we expect. So for the next month, I'm kind of bearish. I think $28,000 can be tested for Bitcoin. Yeah. I'm definitely bearish in the short term. Again, that doesn't say anything about my long term horizons for Bitcoin and crypto, but in the short term, I don't really see any catalysts. We could see a bounce tomorrow if CPI moderates and that could change perceptions about central bank policy. But in the next month or so, I think we're going to really start finding our footing on the leg on the next leg lower to see what the bottom is going to be. I don't think we're going to be out of it that quickly given the macro factors. So bearish in the short term for sure. I would agree with that. I am also short term bearish. I think we're going lower, folks. Believe it or not, I think we could see things ranging for Bitcoin, especially in the mid to potentially low 20s all the way back up to 30s. I think that's where we're at. Like Sam said, the Fed rising interest rates, inflation, the war in Ukraine and Russia, so many events happening right now that kind of I think is creating this perfect storm for where we're at. It's a buckle up tight. Hopefully you have packed your bags correctly, consolidated your bags and feel like whatever you're holding is going to be a long term play over the next five years. Where is the bottom? Adrian asked, can you all give your bottom number? Is there a number floating out there? Vikram wants to know, do you guys feel comfortable sharing a bottom number for Bitcoin? Sam's shaking his head. Anything toward 20 is a possibility. Anything below 20 would be a shocker for me. But again, I know that's not much of a number, but anything below 20 would be a huge surprise for me at this point. I would say $24,000 for Bitcoin. And I think that's about, if you take Tesla's and MicroStrategy average price, which is roughly $30,000, it's still a 20% loss for them. So it's going to show the public that even with Bitcoin going 20% below the Tesla's and MicroStrategy average price, they're not selling their long term holders. So it's going to be a good advertising for strategy for Bitcoin if that happens. But I think $24,000 is the lowest price you're going to see for the next 12 months. I was looking at the chart just now. I think it's very, very possible we go below 29, but I do see pretty strong support here at 29 with previous bounces ranging anywhere from May 2021, all the way through June, really last summer when we just went sideways for two straight months, it just kept bouncing off that 29,000 mark. So we'll see if it holds. I think if it goes below that, I think it'll be very kind of short term, maybe a few days, but that to me is screaming just buy, buy, buy. I love the Bitcoin at these prices right now. So even though a lot of people are suffering and pain, I think in the long term, we're all going to be happy. Well, folks, the poll is wrapping up. Sam, I don't know what you're doing, man. You're just paying off the audience and social tokens. Sam has won today's poll with 72% of the votes. Any kind of closing thoughts for today, then we got to pick our winner for Markets Per All. Let's Sam jump in here first, since he gave such a wonderful presentation about Steve. I think crypto social is a really interesting use case, and you're probably going to start hearing more of it in the next couple of years. I really think game five is the next big thing, but crypto social probably 2023, 2024, and that's where you'll probably see a lot more projects coming into the space for sure. And Marcel or Jordan, any closing thoughts, and we'll pick our winner for the Markets Pro? Well, our message should be if that's your first cycle, if that's your beer market, you got to question yourself, why did you buy cryptocurrencies in the first place? If you think that's something different from traditional investments such as stocks, bonds, and gold, and there's advantages, you got to really think, are there enough incentives for all other people to see what cryptocurrency should be valid right now? So once you understand that it's just a matter of time until more people realize the effectiveness and strongness of the blockchain and why cryptos are scarce digital assets, it's a matter of time for we go back to $50,000 and $100,000 price for Bitcoin. So don't worry, we've all been through this in 2017 to 2019. It went down by 75% and here we are. Exactly right, Jordan. I just like to say to anybody that is new, welcome to crypto, this is what it's like. This is why like all last year I was like, take your profits folks, take your profits because having profits makes times like these a lot more bearable. So yeah, every time a coin takes off, take some profits, dollar cost average when the markets look like this, long term outlook on crypto still positive, so don't lose the faith. Yeah, just hanging there. I know it's going to be rough, but we'll get through this. Very good. And Jackson wanted us to show the chart. So Danilo, if you wouldn't mind just pulling up my chart real quick, I'll give you my closing thoughts and I'm going to tell you why we could potentially hold this 29,000 mark. You see back here, May, June, what we're kind of talking about here, this level right around 29, 28K had a lot of bounces ranging and now we're kind of reaching that area. If we get a lower low does tell me I think we can go a lot lower, but things seem to be kind of stabilizing right around 31K. We're at 31K right now. Real quick, I don't want to show this chart. This is just an absolute just, wow. This is Luna. Look at this chart. This is nuts. 24 hours just off a cliff, just elevator straight to hell. That's brutal. All right. Thank you Danilo for pulling up the chart there. For all the folks tuning in from around the globe, we appreciate you here on Markets Pro. Looks like literally all you have to do is drop your Twitter handle in the chat. You're going to win. It's guaranteed win today for the Markets Pro giveaway. So I'm going to wait just a couple seconds while we have our final thoughts for today. Go to store.coin.tellerf.com. We got sweet swag in there shirts, hats, hoodies, shoes, flip-flop, socks, you name it. You need a new mouse pad. We got Bitcoin mouse pads. Check it out store.coin.tellerf.com. We got a lot of cool stuff in there. Make sure you go shopping. You got Fowler's Day coming up in a couple months here in the States. You got birthdays, whatever you need. We got it in the store for Cointelegraph. But that's going to do it for today. I think it looks like nobody wants that Markets Pro. Wait is up. That's somebody giving a price prediction. Thanks for tuning in. We appreciate everyone here on Market Report. We will see you next week. Until then, thank you.