Cryptic ball: let them have panCAKE.
The crypto market is healthy and that's what we want it to be. Ether keeps breaking new all-time highs every day - with just average volume - and, even though total market cap just climbed 1% over the past day, many top tokens had solid 5% increases and CAKE, which powers PancakeSwap, currently the world's largest decentralised exchange (DEX), is up 20% today and 60x year-to-date!
As not much is happening in bitcoin land (which is good, because historically this means it's a good buying opportunity) and ETH is in price-discovery territory (meaning no one can predict anything about where it will eventually retrace), let's understand why CAKE is so popular right now. In brief, this token was created to incentivise liquidity in PancakeSwap, otherwise few would want to trade there. But, as it's typical, it became a proxy for the success of the protocol. So, as finding shitcoins on DEXs is 2021's equivalent of ICOs (which stands for Initial Coin Offerings, the phenomena behind the 2017 alt season), everyone is on a sugar high!
Chart art: smooth seas don't make good sailors.
Market musings: this is not a bull trap.
All-in-all, what you need to know about CAKE? On the one hand, PancakeSwap is great because it has low fees, as it runs on Binance Smart Chain, a blockchain created by the world's largest cryptoasset exchange, which is not as congested as Ethereum. This has allowed many users - who wouldn't otherwise trade in Ethereum-based DEXs, like Uniswap or Sushiswap - to get rich or be scammed trying. On the other hand, as it's much cheaper to use, it attracts more reckless users. And many have been getting duped into buying useless and fraudulent tokens promoted on TikTok! After all, in a couple of hours anyone can clone another token's smart contract, host a nice website, create a Telegram channel, and prepare to pull the rug! So, always do your own, solid research or be prepared to face fraud. And remember that +90% of all new projects will likely fail soon.
Visual block: the dogefather promise.
Three things: a friend should always underestimate your virtues.
- Elon Musk has hinted he will meme about dogecoin when he hosts Saturday Night Live next May 8th. #thedogefather
- B21's latest The Crypto Desi Show episode is on! It's focused on decentralised APIs for Web3 but is also covers Bitcoin and DeFi!
- Fabian Klauder published a great article on whether Ethereum will switch to Proof-of-Stake still in 2021, as targeted. Must-read here!