This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out.It's time to start paying attention to what is happening in China with Evergrande. In short, Evergrande is a Fortune 500 real-estate developer headquartered in China that is on the verge of collapse. After years of aggressive scaling and leveraging seemingly endless debt, Evergrande is on the brink of collapse. If the Chinese government fails to offer a bail out, then Evergrande will likely be forced into bankruptcy and be chopped up for spare parts . Global markets are reacting harshly because there's a chance at contagion - the spiral could effect everyone, everywhere. The broader market is effectively preparing for the worst case scenario.Here are two exemplary threads on the situation, if you would like to do a bit more reading.https://twitter.com/SahilBloom/status/1439920043404546050https://twitter.com/INArteCarloDoss/status/1438944431734919175The Chinese government is left with two unattractive options - bail out Evergrande and condone the behavior (much like "too big to fail in the US"), or allow nature to take its course, in which case homebuyers, financial institutions, and the economy suffer for Evergrande's bad behavior. The magnitude of the situation is rocking financial markets, and in these brief moments, crypto is not immune. Although crypto has been temporarily dragged down, these situations are the very reason that we have all bought crypto and partially opted out of a failing financial system. Experts have begun to weigh in, some claiming that the problem is isolated, while others are calling it an early sign of a weak foundation in the lending markets and a possible contagion. It is too early to tell who's right, but the market does seem to be pricing in immediate heightened risk. Many analysts have already been pointing to overheated markets, so this could be the straw to break the camel's back and force a wider correction.I frankly doubt that will be the case, at least in the immediate sense. Markets likely overreacted and will now bounce a bit and look for more clarity.The story is a case study on human greed, and the fact that humans and governments never seem to learn hard lessons. We danced to this song just over a decade ago, watching banks and economies collapse in rapid succession because of a similar situation. How many more companies are engaging in the same behavior as I write this, assuming that a bailout is around the corner if things go wrong?All we can do is wait and see. And buy more Bitcoin.IF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.COIn This Issue:Danger Looms In ChinaBitcoin Thoughts And AnalysisAltcoin ChartsLegacy MarketsGary Gensler And "The Path Forward"Coinbase CapitulatesAnother Unicorn - Sorare Raises 680M Series BRobinhood Tests Crypto WalletThe Wolf Of All Streets Podcast Ft. Beniamin MincuMy Recommended Platforms And Tools
The Wolf Den #333 - Danger Looms In China
The Wolf Den #333 - Danger Looms In China
The Wolf Den #333 - Danger Looms In China
This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out.It's time to start paying attention to what is happening in China with Evergrande. In short, Evergrande is a Fortune 500 real-estate developer headquartered in China that is on the verge of collapse. After years of aggressive scaling and leveraging seemingly endless debt, Evergrande is on the brink of collapse. If the Chinese government fails to offer a bail out, then Evergrande will likely be forced into bankruptcy and be chopped up for spare parts . Global markets are reacting harshly because there's a chance at contagion - the spiral could effect everyone, everywhere. The broader market is effectively preparing for the worst case scenario.Here are two exemplary threads on the situation, if you would like to do a bit more reading.https://twitter.com/SahilBloom/status/1439920043404546050https://twitter.com/INArteCarloDoss/status/1438944431734919175The Chinese government is left with two unattractive options - bail out Evergrande and condone the behavior (much like "too big to fail in the US"), or allow nature to take its course, in which case homebuyers, financial institutions, and the economy suffer for Evergrande's bad behavior. The magnitude of the situation is rocking financial markets, and in these brief moments, crypto is not immune. Although crypto has been temporarily dragged down, these situations are the very reason that we have all bought crypto and partially opted out of a failing financial system. Experts have begun to weigh in, some claiming that the problem is isolated, while others are calling it an early sign of a weak foundation in the lending markets and a possible contagion. It is too early to tell who's right, but the market does seem to be pricing in immediate heightened risk. Many analysts have already been pointing to overheated markets, so this could be the straw to break the camel's back and force a wider correction.I frankly doubt that will be the case, at least in the immediate sense. Markets likely overreacted and will now bounce a bit and look for more clarity.The story is a case study on human greed, and the fact that humans and governments never seem to learn hard lessons. We danced to this song just over a decade ago, watching banks and economies collapse in rapid succession because of a similar situation. How many more companies are engaging in the same behavior as I write this, assuming that a bailout is around the corner if things go wrong?All we can do is wait and see. And buy more Bitcoin.IF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.COIn This Issue:Danger Looms In ChinaBitcoin Thoughts And AnalysisAltcoin ChartsLegacy MarketsGary Gensler And "The Path Forward"Coinbase CapitulatesAnother Unicorn - Sorare Raises 680M Series BRobinhood Tests Crypto WalletThe Wolf Of All Streets Podcast Ft. Beniamin MincuMy Recommended Platforms And Tools