⚡️ Crypto and the stock market's future signal green

Gn. 🌙 Vitalik's plans crypto camouflage so you can't easily track peeps' moves 🐸 TradFi Journal 🗞 How the SEC's making crypto more viable 💪🏼 How last year's bad market ending may make this year the one worth investing in 👀📈

Vitalik Buterin's crypto camouflage 😶‍🌫️

Vitalik Buterin just dropped a 💣 on the crypto game with his latest proposal for a "stealth address system." Basically, Buterin recognizes that privacy is a big issue on the Ethereum blockchain and he's come up with a solution to fix it.

The stealth address system allows Ethereum wallets to generate these special addresses called "stealth addresses" that keep your transactions on lock. When you receive funds, you access them using a secret code called a "spending key." It's like having a secret hideout for your money, and nobody can spy on you. 

Buterin's proposal is all about keeping your transactions anonymous. Each time you make a transaction, you can generate a new stealth address, so it's next to impossible to track your movements. Your transactional history stays on the down-low and you can stay lowkey. Buterin also suggests using ZK-SNARKs to take the privacy to the next level, making it even harder for anyone to link the stealth addresses.

💡What does this mean for your investing: Buterin's stealth address system is a game-changer for those who value their privacy, without having to worry about the regulatory issues that come with mixers like Tornado Cash. It makes it difficult for you to track your friends' wallets or see what investors like Mark Cuban or Gary Vaynerchuck are holding in their public wallets - so when it comes to strategy, we'll have to wait and see as to how it all plays out. 

Read more here 🧵

An SEC obstacle course with drama to boot

Crypto companies are having a tough time trying to go public in the U.S. thanks to peeps over at the Securities and Exchange Commission (SEC). Companies like Bullish, Circle, and eToro thought they could get a head start by going public via special purpose acquisition companies (SPACs), but the SEC had other plans. Coinbase is the only crypto firm to have gone public so far in April 2021 direct listing. 

• Bullish had to endure 10 letters during a review process that lasted over a year

• Galaxy had to answer 90+ questions in one letter alone

• Circle was questioned over 100+ times...

The SEC may be a tough cookie to crack but it's actually a great thing for the industry's viability. 

💡What does this mean for your investing: The SEC doing its due diligence may be painful in the short-term for these companies to make their public debut but it's not all bad. As more regulation occurs, the greater the protection will be for us retail investors - especially after all the lost funds in the FTX scandal, and hundreds of hacks/money heists. This can finally be the move that allows us little guys to regain our trust. 

Read more here 🧵

Note: None of what Cheres shares is financial advice, nor opinions. We simply share the news. 🗞

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How a market rough year⚡ makes for a shiny future 🌤️

The market has been through a rough patch but there's a silver lining!

💥The stock market had a rough year in 2022, with the S&P 500 declining by 19.4% (excluding dividends). However, history has shown that big down years in the market are often followed by healthy gains the next year. In fact, since 1950, there have only been two instances of consecutive down years following a year with a decline of any size. The average return in the year following a down year for the S&P 500 is 15.3%.

2023 has started strong, with stocks up roughly 6% so far this year. A strong January return has often been a signal of above-average gains for the year ahead, with 14 out of the last 75 years with a monthly gain of 5% or more going on to finish positive with an average annual increase of 23%. 💪 Bonds have also shown resilience lately, after logging their worst year on record in 2022. 

Read more here 🧵

💡What does this mean for your investing: Despite the challenges, investors can find encouragement in the fact that bad years in the market have often been followed by good ones. A strong start to 2023, along with a positive outlook for bonds, are reasons for optimism, but it's also important to anticipate market swings and stay invested despite potential negative headlines. 🌊

Hindenburg v Adani: The corporate Con Battle Royale 🌪️

Hindenburg Research, the hedge fund taking down frauds left and right, is now going after Gautam Adani, the world's third-richest man and his $230 billion empire. And it's not just any ordinary report - oh no, it's a SCATHING one 🙄, alleging Adani is pulling the biggest con in corporate history by exploiting tax havens and using high leverage. Obvs Adani Group calls all of it misinformation. Ouu how it screams Elizabeth Holmes. It's sweater weather up in here. 

😮‍💨 Adani's companies, most held too closely, are overvalued and ignored by big Wall Street and Indian mutual funds. Adani Green Energy, Adani Transmission, and Adani Enterprises are in the top 7 most highly valued companies in the world with market caps over $30 billion and P/E ratios over 136, but Adani's diversifying his shareholder base with big names like TotalEnergies and Abu Dhabi's IHC. But will the Securities and Exchange Board of India let Adani proceed with a $2.4 billion equity issue? 🤷‍♀️ Well, the Adani family owns up to 75% of individual companies, so it may be difficult for Hindenburg to trigger a significant share slide. But hey, the big guy may be vulnerable in offshore loans, where 50% of debt is in capital-market instruments and repayments extend from 2026 to 2046. And if Hindenburg's attack gains traction, it could rock the financial markets and have consequences for the entire corporate world.

Read more here 🧵