3 min read

$13 billion oat milk, Wonderful silver lining to the crypto crash (TN09)

Though cryptocurrencies took a big hit this week, decentralized financial protocols proved their resiliency
$13 billion oat milk, Wonderful silver lining to the crypto crash (TN09)

Happy World Turtle Day! May your portfolios be as resilient as these wonderful animals.

The newsletter grew 8% this week. If you're new, welcome! Glad you're here.
If you have friends, don't keep them hanging. Forward them this email or send them a link. Let's dive in.


Oatly IPO

If you still haven't tried oat milk, you should. If you've tried oat milk but not the Oatly brand, then you need to try it again. Oatly tastes really good. But does that justify a $13 billion valuation? Just last July, Oatly sold a 10% stake at a $2 billion valuation. Oprah Winfrey, Natalie Portman, and even Jay-Z are some of their high-profile investors. Dive In.

Crypto Reckoning

CoinGecko

Cryptocurrencies are currently undergoing one of those fun and exciting crashes that happen every few years. It seemed to have started when Elon Musk tweeted that Tesla will stop accepting BTC for vehicle purchases on May 12. Crypto crashed, and then held steady for a bit till, on May 21, China decided to crackdown.

Tesla Wants Your Bitcoin Without The Downside (TN05)
Tesla is going one step further with crypto. Previously they converted $1.5billion of their balance sheet to Bitcoin. This time, they are allowing anyoneto purchase a vehicle using Bitcoin. If you’re a fan of bitcoin as an asset,rejoice! If you want bitcoin as a currency instead, this is terrible…
Tesla Accepting Bitcoin Was a Terrible Deal For Consumers

There was a lot of hurt, especially as centralized (and regulated) exchanges like Coinbase and Binance failed to keep up with consumers. Decentralized exchanges were the opposite.

"All these sites ran without incident even as some crypto prices crashed by 50%. The website bybt.com reported that 845,000 traders who bought cryptos on margin or leverage, using decentralized sites like Compound, AAVE or Maker, saw more than $9.11 billion of positions liquidated automatically using smart contracts. No decentralized protocol failed or needed a bailout. No regulators had to decide to close anything."

Beautiful. No need for government intervention. No Fed. The system just handled it. When Archegos blew up, prime brokers liquidated and traded the remaining assets within themselves. When a decentralized crypto account blows up, anyone, even you and I, can bid for what's left of the account. It is a good test for how things should work. Dive In.

The trustless lending that DeFi enables is probably my favorite feature of the system. So, for it to work without blowing up? ABSOLUTE WIN!

Weekly Chart

Ford announced the electric F-150 Lightning.

What to Read

Understanding What ARK Invest Is Up To
Cathie Wood’s ARK Invest hit escape velocity in 2020. Could the same happen in 2021 and beyond?

In case you missed it, I released a new post addressing some of the pros and cons of Cathie Wood's ARK Funds.

What To Read
I’m curating some of the most insightful or thought-provoking articles I read on a weekly basis.

Thanks For Reading-