The Hoot #18

Scatt's Seeds for Thought:

🌱 A Crypto Phone? 📞

🌱 FTX is Back From the Grave 🪦

🌱 Twitter & eToro Team up 🤝🏼

🌱 Bali Dream House gets Tokenized 🌴💸

Meme of The Week

Year-to-date Market Performance:

• S&P 500: 7.66%

• Dow: 2.00%

• Nasdaq Comp.: 15.34%

• Bitcoin: 64.89%

• Ethereum: 53.45%

• Scatt Capital’s Fortune Strategy: 30.93% (Since Inception: 26.59%)

• 7-Day Change in Crypto Market Cap: -$114bn

• Housing Starts came in at -0.8% m/m vs. an estimated -3.5% (7.3% prior).

• Building Permits came in at -8.8% m/m vs. -6.5% estimated (+13.8% prior)

• Existing Home Sales for March came in slightly lower (4.44m) than expected (4.48m)

• A tumultuous earnings week with over 60 S&P 500 companies having reported Q1 results

• Data for the Week Ahead: ANOTHER BIG EARNINGS WEEK (SEE HERE); New Home Sales (March); Durable-Goods orders (March); GDP (Q1); Pending Home Sales (March); PCE Index (March - inflation)

A Crypto Phone? 📞

Everyone knows of Bitcoin and Ethereum, and now you're about to know about another one ✍🏼.

Solana is a blockchain with an incredibly popular token, SOL, which has grown massively over the last few years, and currently has about an $8bn market cap. Solana is what is considered a 'tier 1' alt (alternative coin).

To give you better context, the founders of Ethereum saw Bitcoin and its flaws, and decided to build a blockchain that had better functionality and utility, and built it to operate at higher speeds. Now Solana is just like that, but with Ethereum. It's essentially its younger, faster, better-looking brother. And guess what... they just launched a phone! 📞

Check it out, here are some of the cool 🧊 features:

• You're able to store your seed phrase (a string of words that helps you recover your crypto when you lose/break your wallet) on the phone, SEPARATE to the operating system & protected by a fingerprint scan ☝🏼

• The seed phrase can automatically connect to the dApps (decentralized applications) that you download, giving you the ability to approve transactions instantly 💨

• It'll have its own dApp store for all Web3 applications. Think of the App Store, but for Web3 (also without the 30% cut from Apple).

So, Is it gonna work? Maybe. In my opinion, there are 2 things to consider with this kind of thing: it targets a really niche market; and there's A LOT of competition in the space with Apple, Samsung, Google etc. The execution of it all will be key, so keep an eye out for it here 📲

FTX is Back From the Grave 🪦

One of the biggest financial fraud cases in history (biggest in crypto by far) is coming back from the dead 💀 Yes, you read that correctly... Bernie Madoff's long-lost son aka Sam Bankman Fried is back. Well, at least the exchange he started might be. We all know how things spectacularly blew up in late 2022... well there are some new details about the bankrupt exchange 😧

• Management (not SBF, obviously) is looking to restart in mid-2024, however to do so they would need to raise a lot of capital from third parties (which'll be hard considering its reputation); and through selling FTX assets.

• They've been able to 'recover' $7.3b of the $8b in assets that they owe to customers. Truth is they didn't 'recover' anything, the value of their previously recovered assets have just increased in value (the pool's worth went from $6.2bn to $7.3bn).

So are people gonna get their money back? Not sure just yet. We'll have to wait and see. The argument is now being made on whether they should they use the funds to restart the exchange or repay customers 🤔

Twitter & eToro Team up 🤝🏼

Here we are yet again talking about Elon Musk... what else is new. Twitter... sorry, I mean 'X'... has rolled out Bitcoin price quotes on its social media platform through its search tool. It was initially rolled out on April 18th, and speaks to Musk's ambitions in the crypto space.

For those that aren't aware, this comes soon after Musk amalgamated his companies into one shell corp. called 'X' (a super thought-provoking name, right). His plan is to create a 'Super App' through which you're able to do almost anything from ordering food, messaging your friend, receive your paycheck, manage your portfolio etc.

We talk about mainstream adoption a lot here at Scatt Capital, and this plays a huge role in that. Twitter's partnership in conjunction with the Israeli-based exchange gives users easy access to onboard money into crypto. Easy Access = Adoption 🤝🏼

They've also announced that Twitter would introduce both crypto and stock trading options directly in the app through eToro's system. It's been crazy to watch Elon acquire the company, almost rip it into a few different pieces and is slowly putting it back together in an entirely different way. I personally think Twitter ('X Corp.') will easily be a $100 billion dollar company in 5-10 years 📈

Bali Dream House gets Tokenized 🌴💸

Tokeny is a tokenization infrastructure provider. If that sounds like gibberish... they're essentially able to take a real world asset (RWA) and 'split' it into little pieces and facilitate in the sale of those little pieces to the general public. They recently partnered with CoFund (a real estate token marketplace on the ETH network) and were able to tokenize this beautiful $10m boutique hotel in Bali 🏝️

The cool part? You can now buy a piece of this hotel for as little as $1,000 🫢

Another cool part? The entire thing is done on the blockchain 🫡 So the next time your friend says "Crypto has no use in the real world", just send them a pic of your hotel in Bali 😏

Oh and just by the way... Boston Consulting Group (the 2nd largest consulting firm in the world) says that the tokenization of assets is a $16 trillion opportunity by 2030, AND Larry Fink (CEO of Blackrock - largest money manager in the world) called it "the future of markets" in an interview. Just putting that out there...

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See you next week 🦉

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.