gm friends —

With the first presidential debate on Tuesday and the Fed’s first rate cut (probably) quickly approaching, markets are gearing up for a wild week. Let’s dive in!

Today’s topics:

• 🚫 Why I Never Recommend Investing in Crypto

• 🪙 Stablecoins: Crypto’s “Killer Use Case”

• 🌾 Pendle: Crypto Yield Trading

Check out this week’s YouTube show for a deeper dive!

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Why I Never Recommend Investing in Crypto

Prices are down significantly from their 2024 highs, and investors are losing confidence in an imminent crypto bull run.

While the negativity is everywhere, I haven’t been feeling much fear or doubt, which I found interesting. “Why am I not depressed that I ‘lost’ so much money?”, I wondered.

“Maybe crypto has calloused my sensitivity to money so much that I no longer feel the psychological pain of losing it”, I proposed. 

But, this didn’t feel right - I definitely still experience the pain and euphoria from the wild swings in my net worth. So, what is the root of my stoic attitude? Conviction.

Crypto investing is hard. Markets are extremely volatile, scams are everywhere, and the technology is confusing.

This is why I almost never recommend investing in crypto when people ask.

If you aren’t used to the volatility, you’ll get scared on the first big dip, sell, and end up losing money

If you don’t understand why what you’re buying is a good investment or your timeframe for that investment, you’ll never make it through the inevitable tough times.

You must cultivate conviction - it’s an independent act. I can’t transmit you mine.

So if you’re reading this and thinking about investing in crypto, don’t do it unless you’ve truly developed your own conviction in the space.

Stablecoins: Crypto’s “Killer Use Case”

Skeptics love to argue that crypto lacks “real-world use cases” or a solid "product-market fit." Here’s why they’re wrong.

Firstly, Bitcoin’s inception marked the creation of the world’s first digital, non-sovereign, censorship-resistant, permissionless store of value.

I’m not here to convince you why that’s important (not today at least) - but if you’re curious, research the history of currency debasement and capital controls.

But on a more relatable level, the tokenization of assets offers the promise of a global settlement and interoperability layer for all financial assets— the only thing preventing this is innovation-stifling, luddite regulation…

The only tokenization market that has been allowed to develop so far is stablecoins.

Stablecoins, pegged to fiat currencies like the U.S. dollar, have experienced explosive growth and are providing real utility by enabling global access to stable currencies, fast settlement, and integration with decentralized financial tools.

The rise of stablecoins is hard to ignore. The stablecoin market has grown to ~$170 billion, with daily transaction volumes surpassing those of many sovereign currencies.

And this growth isn’t speculative—it’s driven by real-world demand for fast, low-cost, and borderless transactions. Stablecoins allow users to bypass the inefficiencies of traditional banking systems.

In developing countries, stablecoins have become a lifeline for individuals seeking access to stable currencies in the face of hyperinflation, economic instability, and capital controls.

By offering an easy way to store value in U.S. dollars and other stable assets, stablecoins provide financial security for millions who otherwise lack access to reliable banking services.

As the stablecoin market continues to grow, it’s becoming increasingly clear that tokenization is crypto’s most successful and promising use case .

Whether providing financial stability in developing nations or enabling seamless, borderless transactions for businesses and institutions, stablecoins are proving their value every day.

And with ongoing regulatory discussions aimed at fostering responsible innovation, the role of tokenization in the global financial system is only set to expand.

Trade Section

Unfortunately, the update is not complete just yet…

But the good news - the revamped trade section will help you keep tabs on crypto’s hottest narratives/trades/sectors. Stay tuned 👀!

Pendle: Crypto Yield Trading

Other News

• A Crypto Project's Weird Marketing 'Hack' Riffed on Infamous 1987 Chicago TV Hijacking [CoinDesk]

• Elon Musk Agrees to Head Donald Trump's D.O.G.E. Government Efficiency Commission [Bitcoin.com]

• Mastercard enables non-custodial crypto spending in new partnership [CoinTelegraph]

Check out this week’s Mid-Week Crypto Update for more news stories!

Thanks for reading!

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