DecentraWorld Investors Bullish in Sea of Red Candles
Written By @coach_mcguirk — Finance and Development Consultant
If you have been living under a rock for the last week, you missed a hell of a week in the world of defi and traditional finance. Before I recap some of the hellish news that unfolded this week, I congratulate all the DecentraWorld investors. DecentraWorld’s privacy based ecosystem raised an astounding $572,307 in roughly 10 days of fundraising. A small privacy minded project that can raise this much attention, in a full on bear market is something to watch ladies and gentlemen. The IDO happens live on Pancake Swap, May 17, 2022 at 3PM EST/7PM UTC.
To recap why this is actually so amazing from a market perspective, let us review this last week in hell. Worry not, this will not be a financial markets dissertation, but it does contain a bit of substance. Here is the TLDR for my fellow Adderall brained comrades.
TLDR: The current market is horrible. The stock market, especially the NASDAQ and tech stocks, are tanking around a 60%+ weighted discount, UST/LUNA $hit the bed, but DecentraWorld has managed to receive over $572,000 in fair-launch funding. This speaks volume to how stakeholders view this project, its utility and future. These investors are future stakeholders of an entire ecosystem, and they feel the DecentraWorld’s privacy based ecosystem holds real value. Even in today’s Sea of Red Candles. For those of you who would like to reminisce about last weeks massacre, keep reading. If the dynamics of last weeks indicators are not you cup of tea, then I bid you farewell here, but make sure to visit us via our official Telegram Channel, and website.
Diving right in. First we have two major economic indicators that were released from the Bureau of Labor Statistics. On May 11, 2022 the BLS released the monthly CPI, (Consumer Price Index,) data. The CPI tracks hundreds of goods and services across a given timeframe, and gives a weighted average based on the base period. It is a good indicator for the costs to consumers, and a prime source when calculating the rate of inflation. Tuesday’s update showed a seasonally adjusted increase from March to April of +0.3%. This was 0.1% higher than expected, but much lower than March’s 1.2% increase, the highest jump since 2005. The core CPI numbers increased to 0.6% which was higher than estimated by +0.2%. Core, (not seasonally adjusted/NSA,) numbers strip out food and energy. Now the big kahuna, the year over year CPI sits at 8.3%. This was a slight reprieve from last months year over year CPI, which sat at 8.5%. The 8.5% we saw in May is the highest rate of inflation the U.S. has seen in 4 decades. Scary stuff.
Moving on to May 12, 2022 the PPI, or Producers Price Index was released. The PPI measures the cost of shipped goods from the producers of said goods across a given timeframe. The monthly numbers came as expected, or very close. The year over year is the number most watched, and this came in at 11%. This was higher than the expected 10.7%, yet still down from last months Y/Y which was a cycle high 11.5%. Again, we see inflation at the highest peaks in the cycle. Jobless claims also were announced. I will spare you the details, as claims remain relatively low, but we did see and increase including the adjustments made to the previous cycles.
Moving on, we have the Luna fiasco. There is high skepticism that this was the work of random market influences. In a statement released by Do Kwon titled “The Terra System Revival Plan,” Do Kwon specifically refers to the incident as an “attack:”
“Terra needs a community to continue to grow and make its blockspace valuable again — the only way to do this is to make sure that token holders before the attack commenced, the most loyal community members and builders, stick around to keep providing value.”
On Chain Wizard and others are tracking wallets to see how the aggregated purchases of UST prior to the dump are related. I am sure time will reveal the truth. The fact remains that the decoupling of UST from the dollar caused a market crash that will be remembered by the defi world. It will also be remembered by those who pay no heed to the daily inner workings of defi and cryptocurrency, as it made headlines worldwide.
If you made it this far, I congratulate you. Personally I would have made it two sentences past the TLDR, and called it a day.
To recap, the market is full of uncertainty and risk. The world economy is taking a beating, and the U.S. is doing a full send with its quantitative contractionary policy to combat inflation. Investors are looking elsewhere to hedge their bets. Assets are not being pivoted laterally into other asset classes, as seen by the decrease in gold and other markets that usually increase at times when large amounts of traditional asset classes are decreasing.
DecentraWorld has enough immediate functionality and future utility that people are willing to invest in the project. There are so many upsides to investing in a down market. It is a testament to the vision of DecentraWorld’s core beliefs; privacy on the blockchain, no logging dark data, and ease of use to our customer base that propel this project forward.
U.S. Bureau of Labor Statistics
U.S. import prices record no change in April; export prices advance 0.6% Prices for U.S. imports recorded no change in…