Cardano Dan's Newsletter - Issue #89

Involve Me

Quote of the Day

“Tell me and I forget. Teach me and I remember. Involve me and I learn.”

― Benjamin Franklin

Everyone learns in different ways. But there are some things that are true no matter what. If you are involved in doing something, the likelihood that you will learn is far greater than if you’re just told something.

One of the savviest things the Cardano creators have done is engage the community. They do it in a lot of ways. One of the most recent examples is the Plutus Pioneers program that has involved a lot of people to help them learn how to create smart contracts on Cardano.

This is a brilliant move and it’s a win-win where the Cardano ecosystem benefits and so do the individuals. I’m thrilled to be a part of an ecosystem that takes cues from Benjamin Franklin.

In The News

1. The Federal Reserve kept interest rates unchanged in its most recent meeting. Some of the key takeaways from the press conference afterwards are available here.

   Recently I shared Raoul Pal’s description of the rock and hard place that the central bankers find themselves in. The article above concludes quoting Mohamed El-Erian as saying, “I suspect that many may agree that this was one of the most confusing #Fed press conferences.”

   Logic often starts to fall apart for people when they find themselves in challenging positions.

2. Here’s some news on the crypto tax front. This Zerohedge article did such a good job with the story, I’ll quote the important parts in bulk

   As part of the Senate’s bipartisan infrastructure deal, lawmakers quietly snuck in a provision imposing stricter rules on cryptocurrency investors to collect more taxes to fund a portion of the $550 billion investment into transportation and electricity infrastructure.

   …

   [However] nothing has actually changed when it comes to the tax treatment of bitcoin but what has changed is that by requiring the taxation of bitcoin as a core anchor of the bipartisan spending bill, we can now forget a worse case scenario that see regulators stomping away the nascent space. If anything, one can argue that in hopes of generating even more taxes in the future, Congress will not only facilitate transactions in cryptos, but will also make it easier for the broader public to generate profits, i.e. taxes.

   My bottom line here - tax requirements haven’t changed (in any meaningful way), but politicians are beginning to justify spending on crypto tax projections. That is really good for crypto.

Cardano Updates

1. The July Cardano 360 update was published today. The most important news item is that “Alonzo rollout on track!” Based on recent updates from Charles, I think it means a phased roll-out in steps from August to September.

2. Cardano360 also contained an update on Project Catalyst which is growing by leaps and bounds. There are just a few days left to vote on Fund 5 proposals. Please vote for NFT Key in the Developer Challenge!

3. The cFund made a strategic investment in Cardano launchpad company OccamFi. Launchpad platforms and ecosystems are really important to the growth of the Cardano ecosystem and I’m thrilled to see this news.

   IOHK Media @IOHKMedia

   We're announcing that the cFund has made a strategic investment in the @OccamFi ecosystem to help enrich the Cardano ecosystem! You can read more about the investment here. To receive the press release, DM us or email us at media@iohk.io @emurgo_io

   

   medium.comOccam.fi Receives Strategic Investment from Cardano ecosystem VC fundZUG, 29 JULY 2021 — The cFund and The Occam Association are pleased to announce that cFund, the official early-stage innovation fund for the Cardano blockchain, has made a strategic investment into…

Technical Analysis / Price Discussion

I shared in last newsletter that

ADA is leveling up in a healthy way. Since July 20th, it breaks through resistance, consolidates, then repeats.

ADA has consolidated after the big “Amazon” spike and looks to me like it’s about ready for its next “level up.”

However, as it gets squeezed between the 50D EMA and recent uptrend support, the support could give and we could see another test of the 200D EMA. After all, it has been 7 green days out of the last 9.

A small pullback wouldn’t be a surprise at all after such a nice week and a half. The being said, I wouldn’t be surprised to see a break of the 50D EMA in the next couple of days.

Either way, I’m still expecting ADA to reclaim $1.50 by the end of August.

Comments are open. Let me know if there’s any specific topic you’d like me to cover or questions that you have.

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.