Discover more from Token Dispatch
America's wallet hole🕳️
US is $33 trillion in debt and lost $100 billion: crypto the new heaven? Google's AI love story: AI's the new Shakespeare. ETH whale watch. Wallet market: $700 million growth by 2026?
Hello, y'all. What song are you FEELING right now? Find out 👉 ImFeeling
This is what we were feeling today👇🏻
Hello, y'all. This is The Token Dispatch 🙌 you can hit us on telegram 🤟
America's staggering national debt is now standing tall at $33 trillion. And with interest rates soaring, the situation seems even more dire.
The Ground Reality: The national debt of the United States has hit an all-time high. For context, the Kobeissi Letter disclosed that the US. federal debt has just exceeded $33 trillion for the first time in history. Given the rate at which the debt is increasing, the prediction is that the debt could very well pass $50 trillion before 2030.
The Past Half-Decade
A shocking revelation is that the US. has piled on a total of $11.5 trillion in debt over the past five years. If that's not mind-boggling enough, consider this: the US government has been adding almost $1 trillion in debt per month since the debt ceiling crisis.
A Ceaseless Climb
President Biden had given the nod to a bill that essentially removed the multi-trillion dollar debt ceiling, making way for an increase in the debt accumulation. With the debt ceiling now in the rearview mirror until January 2025, the financial brakes seem to be off.
On September 14, the US Federal Reserve revealed an accumulated loss of $100 billion for the year. This setback is primarily due to the interest payments on the Fed's debt surpassing its earnings from holdings and financial services. Analysts predict this downturn, which started a year ago, could potentially double by 2024. Yet, the central bank categorizes these results as "deferred assets", suggesting there's no immediate urgency to address them.
Debt vs. GDP
Putting things into perspective, the US federal debt to GDP ratio stands at 122.4%. But while many economists furrow their brows at this statistic, Treasury Secretary Janet Yellen has a different perspective. She's more concerned with net interest as a share of GDP, which refers to the net payments the federal government makes on its debt relative to the country's GDP.
A Close Look at Interest Payments
The end of Q2 brought with it another alarming statistic from the St. Louis Fed: government expenditures in interest payments have surged to nearly $1 trillion. Over the last three years, these payments have almost doubled, primarily driven by the rising interest rates that currently hover around 5.5%.
A Potential Safe Haven in Crypto
While Bitcoin and other cryptocurrencies might not currently be seen as feasible hedges against inflation, this could change. With the US government's seemingly unlimited debt ceiling, the prudent move might be to gradually invest in these assets, irrespective of their short-term price trends.
Okay, okay, Bitcoin's price hasn't been the talk of the town lately. At $26,700, it's been running in circles like a hamster on a wheel for the past month. BUT! the Bitcoin market dominance meter went all bling bling and shone at 50.2%. It's strutting its stuff, near 26-month high.
After hanging around between 39% to 49% for over two years, it did a little cha-cha and shot up to 52% in June. Word on the street is that it's all thanks to BlackRock, which hinted at a Bitcoin ETF.
The Crypto Cop Coalition Grows
Senator Warren's Digital Asset Anti-Money Laundering Act is turning some heads in Washington. Not one, not two, but NINE US senators have said, "We're with ya, Liz!" according to a new statement from her office.
The Digital Asset Anti-Money Laundering Act focuses on noncustodial digital wallets, bulking up the Bank Secrecy Act, and putting a magnifying glass on money laundering.
Here are the star players joining Team Warren:
A bunch of Democratic party favorites: Gary Peters (who also chairs the Senate Homeland Security and Governmental Affairs Committee, no biggie!), Dick Durbin (oh look, the chair of the Senate Judiciary Committee!), Tina Smith, Jeanne Shaheen, Bob Casey, Richard Blumenthal, Michael Bennet, and Catherine Cortez Masto.
Plus, Independent Senator Angus King decided to crash the Dem party and back the bill too.
Not just the politicians, that's for sure. Groups like Transparency International US, Global Financial Integrity, and even the National Consumers League have given the bill a big ol' stamp of approval.
US judge, Judge Zia Faruqui
"I just want to keep things moving."
It looks like things between the SEC and Binance.US are... let's just say, a tad complicated. And when the big guns met in Washington D.C., we were expecting some fireworks.
Judge Zia Faruqui had the perfect chance to lay down the law in the SEC vs. Binance document face-off. But, instead of making any rulings, he went for the "can't we all just get along" approach.
The judge said, "I'm not going to order from the bench right now that they produce or not produce things. Let's continue to try to work this out."
Judge Faruqui thinks the crypto exchange needs to spill the beans about its dealings with Ceffu, its service provider.
SEC's Big Worry: They're a little anxious that Ceffu is too buddy-buddy with Binance's global parent company. This could be a no-no based on an agreement that says Binance.US should have US customer funds locked down by US staff.
Matthew Martens, Binance.US's lawyer, wasn't having any of it. He reckoned the SEC's document demands are like trying to find a needle in a haystack. The judge, however, thinks Binance needs to open up its books a bit more.
Way back in June, the SEC pointed fingers at Binance and its founder, Changpeng "CZ" Zhao, claiming they were running a securities operation without the right paperwork. Since then, the SEC has been keeping a hawk's eye on Binance, ensuring US customers' assets stay State-side.
The judge set a date! Both parties need to present a joint report by October 10th, followed by a "Let's catch up and chat" session on October 12th.
According to a Swiss CEO, Europe is outpacing the US in terms of embracing cryptocurrencies, particularly with the approval of Bitcoin ETFs👇🏻
TTD Numbers 🔢
According to market gurus Technavio, the wallet world is set to explode by a whopping $700 million by 2026. But as with all things crypto, there are some twists and turns on the road ahead.
The Numbers Game 📈
Technavio's forecasters see a silver lining in the crypto cloud. They're betting on crypto wallet use skyrocketing by $686 million in the next few years, backed by the rise of online transactions, wireless networks, and evolving regulations.
The global pandemic. COVID-19 financial chaos meant more peeps turned to digital wallets. Big names in the scene? Binance, Exodus, Gemini Trust, Trezor, and Ledger.
Regional Rundown 🌍
Top Spot: North America's rocking the charts with a 41% share of the crypto pie.
In Pursuit: China, UK, Germany, and Switzerland are in the race too.
The global e-wallet market, which includes our non-crypto digital buddies, is eyeing a massive jump – $163.43 billion by 2027.
Pandemic and Play-to-Earn Boom 🎮
The pandemic wasn't all doom and gloom. US giants Coinbase and Robinhood Markets were on a mission, offering crypto wallets that were a cinch to use.
The rise of play-to-earn games like Axie Infinity, especially in regions like the Philippines, meant more folks were diving into crypto.
Now, here's the bump in the road. Regulations are coming in hot and heavy, which could put the brakes on our crypto journey. Places like Hong Kong and the new MiCA bill in Europe are upping the rules game, especially around money-laundering.
And on the global front? G20 leaders have been huddling up, talking about a global crypto framework. India's also in the mix, asking bigwigs like the Financial Stability Board and the International Monetary Fund for some policy guidance.
Gone are the days when Google only sang praises of "content written by people, for people". Now, it seems AI's taken centre stage in content creation. The latest tweak in Google's "Helpful Content Update" subtly moves away from the "written by people" mantra to a broader "created for people".
What does this mean? Google's basically giving AI the nod in the content world. But it's not about man vs. machine. It's about quality content that's of value, irrespective of the creator – human or bot.
AI in Google's Universe
Google's not just talking the talk. The tech behemoth is walking the walk with investments in AI-driven services, including an AI-based news generator and the AI chatbot Bard. So, it's no wonder they're redefining their content creation rulebook.
Still, Google hasn't lost its love for human content. "By definition, if you're using AI to write your content, it's going to be rehashed from other sites,", says Google's John Mueller.
For all the SEO gurus out there, here's the rub: just because Google's cool with AI content, doesn't mean any ol' AI-generated stuff will cut it. Spammy, repetitive content? Big no-no. After all, AI isn't perfect. It can make blunders that range from hilarious to harmful.
In the SEO world, the game's always been about keeping up with Google's algorithm. And now, there's an added twist. Google's deploying AI to suss out AI-created content. But it's not a flawless system. Even OpenAI, a leader in the field, recently ditched its AI classifier due to its inaccuracy.
It seems the crypto seas are never quiet. With ETH (Ethereum) waves becoming more lively, a crypto whale is making waves with some hefty call option trades.
According to the trusty data tracker Greeks.Live, a whale has surfaced on the crypto exchange Deribit and traded a jaw-dropping 92,600 ETH call option contracts, ringing in at $150 million. On Deribit, a single options contract equates to 1 ETH. This big fish isn't just splashing around; these buys are "naked" and seem to be long-term bullish bets.
Calls and Whales and Bears, Oh My!
For those not fluent in crypto lingo, call options are essentially a bet that the price of an asset (like ETH in this case) will rise. The buyer gets the right (but not the requirement) to snag the underlying asset at a set price later on. When you hear about "naked" positions, it's all about making speculative moves without any safety net against any unfavorable price shifts.
This particular whale seems to have a penchant for so-called out-of-the-money (OTM) calls. These calls have strike prices that are a good deal higher than ETH's current price tag of $1,633. In fact, over 40,000 contracts of ETH with a December expiry are called at $2,200, while almost 50,000 contracts with an October expiry are aiming for $2,000. These block trades, which are essentially large-scale transactions made off the exchange's usual order books, are seen as a sign of institutional action.
Why All the Action? 💹
ETH has been on a rollercoaster. Last week, it hit a six-month slump at $1,532, which sent traders into a tizzy, especially with the rumors of the digital assets exchange FTX potentially unloading its massive crypto stash. But like a phoenix, ETH has since risen from its lows and is currently at $1,634—a solid 36% gain for the year.
TTD Surfer 🏄
South Korean regulators are focusing on regulating over-the-counter (OTC) crypto trades due to concerns about their use for criminal activities.
Mila Kunis' NFT project, Stoner Cats, has been banned from NFT marketplaces OpenSea and Rarible following charges from SEC.
Citigroup has introduced token services for its institutional clients, using smart contracts to replace traditional bank guarantees and letters of credit.
If you like us, if you don't like us .. either ways do tell us✌️
So long. OKAY? ✋
The Token Dispatch is a daily newsletter that takes you on a 4-5 minute drive through the wild west of the Crypto World. Daily in your email inbox @13:00 GMT. Almost always.