Cardano Dan's Newsletter - Issue #13
Africa is the new China
Welcome to the quick-hitting newsletter about Cardano, Crypto Trading, Blockchain, Monetary Policy, & Data Privacy.
I hope you enjoy this newsletter and that it provides you with some important insights into why Africa is important to Cardano and Cardano is important to Africa.
Quote of the Day
“I skate to where the puck is going to be, not where it has been.”
― Wayne Gretzky
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Cardano Nugget
Did you know that ada is meant to be capitalized in different ways depending on how you’re using it?
In the News
In my last newsletter a few days ago, I talked about the Coinbase Effect. Since the announcement, we had two very bullish days, followed by a VERY bullish opening on Coinbase Pro that saw Cardano ADA’s price run up to $1.88. We then saw a pretty significant pullback. All of these was true to form of the research I’ve seen related to Coinbase listings.
It was a very exciting opening as the price decoupled from all other ADA markets, as much as a ~45 cent spread or so between Binance and Coinbase Pro at its peak.
I live tweeted the event and you can see what some of it was like in real time by clicking on the tweet thread below.
Around the Block
Charles Hoskinson gave the Keynote address at the Blockchain Africa Conference 2021 yesterday. He actually used Gretzky’s quote above in the address.
Here are some of my major takeaways and notable quotes from the talk:
One of blockchain’s great values is that it opens up opportunities to disadvantaged people groups of the world unlike legacy financial systems.
Economic identity is a critical part of this opportunity and the Cardano team has spent a ton of time preparing to role this out to the people of Africa.
Ethiopia, Rwanda, and Uganda are all nations that Cardano has invested in with in-person with boots on the ground. Ghana is likely to come sometime soon.
Unrest and regime change is common in many of these places and setbacks are normal and to be expected. This kind of change isn’t easy.
“We are at the cusp of deals and initiatives this year which will bring millions of users through public/private partnerships into the Cardano ecosystem.” (emphasis mine)
This means economic identity including wallets, payment systems, property, rich metadata and more enabling a new economic system and unleashing $5T of wealth because Africa is a very wealthy continent whose wealth is currently quite inaccessible.
The hockey quote is all about this. In the 1980’s, major specialized actors of the world looked to China in a very similar way. We all know the very successful economic story of China in the decades since then.
Africa presents a very similar opportunity now that China presented then.
“The first countries to hold national elections online that are credible, free, fair, and auditable will likely be African nations.”
Over the next 5 years, Cardano staff on the ground in Africa will likely scale from dozens, to hundreds, if not thousands of full time workers.
Many people look at Africa as a charity problem. Charles thinks that’s the wrong way to look at it because it’s dehumanizing. (Writer’s comment. Charities are great, but they’re not a stand-alone solution and I totally agree with the general point.)
Rather, Charles looks at it as an opportunity to partner together to create new wealth TOGETHER. That’s the point, it’s a great UNIFIER.
Over the next 10 years, the vitality of our ecosystem could be 10, 15, even 20 trillion dollars and the majority of that could be owned by those in developing nations like Africa.
Very soon, there will be a Cardano Africa Special that lays out the programs, pilots, partners, projects and vision of what Cardano is going to invest in Africa over the next 3-5 years.
You can watch the whole address below.
Technical Analysis
Last letter I shared
At time of this writing, Cardano ADA is sitting on top of the .382 fib retracement level (yellow line). I expect a move up to the 2018 high (white line), a retracement back towards (but not all the way to) the .382 fib, and then a strong move towards the new ATH around $1.49.
At that point, I could see a consolidation between ATH and .236 fib or a straight move through the ATH depending on the news related to the Africa Blockchain conference or some other bird landing.
We saw this play out almost exactly as I described. The one deviation being the drop below .236 fib to the .382 fib.
But I tweeted why I think this dip (which isn’t surprising at all) is a great buying opportunity. We’re in the middle of a bull run and you don’t mess with a bull.
That being said, the one risk that I’m tracking is that interest rates are creeping up and if the Fed loses control of the situation and needs to take drastic steps, there could be unexpected ripple effects into crypto. I think it’s unlikely, but I’m tracking it nonetheless.
The technical pattern in this scenario would be a double top. This would be confirmed with a significant break below $.98 and then a retest of that level as new resistance.
Tell Me What You Think
What do you think? I’d love to hear your thoughts, questions, and feedback below!
This newsletter is for entertainment and educational purposes. I’m not a financial advisor and you should do your own research and consult a financial advisor before investing in cryptocurrencies.