Weekly Crypto Recap (May 19th - May 26th)

Here's a weekly recap from Metaverse.SG, highlighting the most notable crypto events this week:

• Market Overview
• Why are the new tokens not growing?
• Trump loves crypto
• The dark side of Facrastere
• Nodes give a huge profits
• Free Airdrop Guides

Let’s dive headfirst into the main crypto news of this week!


Market Overview

BTC:

• ETF Bitcoin Flow:
  • Monday: +3399.88 BTC (+$241,200,000)
  • Tuesday: +4397.04 BTC (+$305,510,000) 
  • Wednesday: +2215.80 BTC(+$153,910,000)
  • Thursday: +1596.22 BTC (+$107,910,000)
  • Friday: +3313.56 BTC(+$221,540,000)

ETH:

• SEC approves spot Ethereum ETFs.
   

  

• ETH's price surged by over 20%.

• 

Why are the new tokens not growing?

We have analyzed 31 tokens listed on Binance over the past six months. Only 5 showed growth from their listing prices:

Reason - Low Float, High FDV

This means projects launch with limited token circulation (10-15%), making it easy to inflate FDV valuations. A prime example is $WLD from World Coin, with only 1% of tokens currently on the market. This resulted in a March valuation of $110B.

Due to Tier-1 and Tier-2 projects launching with billion-dollar valuations, offering huge returns to seed investors, regular players lose out. 

Buying coins with a $20 billion FDV hardly yields a 10x return, even in bullish euphoria.

A major issue for retail players is that funds are capturing all the upside at the private equity level.

Consider Starknet:

• Seed's FDV: $80M.
• 2nd Round's FDV: $240M.
• 3rd Round's FDV: $1B.
• 4th Round's FDV: $8B.

The difference between the first private round and the last is 100x.

Why would early investors dump a token when they already hold massive gains?

Another issue with Low Float, High FDV is the ongoing unlocks, putting pressure on the price. This may not be noticeable in a strong market, but during corrections, these projects can plummet. 

Does this mean you shouldn't buy new coins? Not necessarily, but I advise you to carefully analyze key project metrics:

• Market Capitalization
• FDV
• Token unlocks
• The percentage of circulating coins held by the community versus those held by the team and funds.

Trump Loves Crypto:

May 11:
CEO Bitcoin Magazine:
 

May 21:
Donald Trump says his campaign will accept crypto.

May 25:
Trump: “Our country should be a leader in cryptocurrencies”
 

Arkham: Donald Trump's balance sheet shows over $10 million.

The Dark Side of Facraster
Farcaster, a small crypto/Web3 version of Twitter raise $150M at a $1B valuation

According to DUNE: daily users number around 50k.
 

But in his thread, Liron Shapira revealed only about 10% are real users.

That is, Investors have potentially valued each user at $200K.

Nodes give huge profits:

Taiko Noders earned roughly $7000.

Noder profit breakdown:

• Monthly Cost: $15
• Token Allocation: 1400-3500 $TKO
• Pre-Market Token Price: $2

This ranks among the top node rewards lately.

Free Airdrop Guide from our Friend

 

Our good friend 0x_Doomer has agreed to share his threads with us. You can access these airdrops at no cost.

1. Hamster

Hamster Kombat is a like NOTCOIN clicker where you click and pump up your hamster

2. Phantom

• ​Phantom is a non-custodial wallet and browser extension that can manage digital assets and interact with smart contracts and digital applications.
• Phantom is the most popular Solana wallet with 2.7 Million Monthly Active Users.
  • ​The team has raised $118M in investment from Paradigm, a16z and others amazing VCs.

3. Blum

Blum: Hybrid exchange for young and brave ones. Access tokens from both CEX/DEX, plus simplified derivatives trading. Will be available as mobile and Telegram mini app.

• Blum has been selected by the Binance Labs team for MVB VII – The Most Valuable Builder Accelerator Program!

4. AlienX

ALIENX is an AI-powered betting blockchain, multi-chain transaction level NFT,  NFT marketplace

• Raised $20M from OKX, CsquaredVC, Offchain Labs and others amazing VCs

Conclusion:

• Stay tuned
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