VOLATILE WEEKEND UPDATE

Ukraine-Russia Conflict

Author: @Pathfinder0x18D

Welcome to all our new Pathfinder subscribers! With the current geopolitical tensions, it looks to be a choppy week for all markets.

Pathfinder Capital believes it will most likely be a week of chopping lower (due to UKR-RUS and possible FED headlines).

🚨 HEADLINES OVER THE WEEKEND

BITCOIN/ETH » Over the weekend, BTC and ETH have slid 6% further on the prospect of war between Russia and Ukraine.

• Given the correlation we've seen in traditional markets, every single company on the EUSTX50, an index of the 50 largest Eurozone companies, finished in the red as well.

• Market participants have also experienced $500m in long and $200 in short liquidations over the volatile weekend. Funding is still flat amidst equally even open interest, signaling potentially choppy price action ahead.  

FTX.US, the American affiliate of popular digital assets exchange FTX, is launching a new gaming tools business. The business line will help existing gaming studios integrate blockchain technology and NFTs into their games, effectively becoming a platform for already successful games to monetize via crypto.

• While the initial value proposition is tested, gamers have been skeptical about how blockchain and NFTs will improve the existing established markets for in-game items. By onboarding legacy hit games nevertheless, FTX's infrastructure thesis here will dispel criticisms that crypto gaming is purely motivated by financial gain and will be the next leap of advancement of the sub-vertical.

TECHNICAL ANALYSIS - LUNA/USD

• Terra (LUNA) has held up far better than many Altcoins in recent weeks, and remains higher by more than 20% above its 31JAN22 intra-day lows.

• As daily LUNA charts show, prices have successfully held early February lows on its pullback attempt last week, and Tuesday's gains are pushing up to multi-day highs.

• While more is needed to suggest the start of a meaningful lift for LUNA, the recent relative strength is encouraging.

• KEY LEVELS PATHFINDER IS WATCHING

  • $58.31 » key levels lie at 2/16 intra-day peaks of $58.31 which also line up with the two-month downtrend.

  • Upside from $58 » exceeding this on a daily close would add to conviction that a larger bounce is in store, with upside targets at $62, then $70.

  • Downside levels of importance lie at $47.

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LUNA FOUNDATION GUARD RAISES $1 billion for BTC reserve for $UST

The Luna Foundation Guard (LFG) has raised $1 billion through an over-the-counter sale of LUNA, the native token of the Terra blockchain. Proceeds from the $1 billion sale will go towards establishing a bitcoin-denominated forex reserve for UST, Terra’s biggest stablecoin.

UST is a so-called algorithmic stablecoin that has become popular within DeFi ecosystems. Pegged to the price of the US dollar, UST currently boasts a market capitalization of more than $12 billion, a number that has more than tripled since November last year, according to The Block Research.

The raise, one of the largest in the history of the crypto sector:

1. LEAD: Jump Crypto and Three Arrows Capital (3AC)

2. OTHER VCs that participated:

   • Republic Capital

   • GSR

   • Tribe Capital

   • DeFiance Capital

   • other unnamed investor(s)

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