Unchained The Chopping Block: Why the Crypto Markets Have Been Down This Week - Ep.308
Jan 13, 2022
Join Haseeb Qureshi, managing partner at Dragonfly Capital, and Tarun Chitra, co-founder of Gauntlet, as they dissect the recent downturn in crypto markets following the FOMC meeting. They debate which emerging assets might endure a bear market and analyze the implications of major investments by Paradigm and Sequoia in Citadel Securities. The conversation also takes a critical turn as they discuss the controversial 'Cryptoland' project and the uprising within the Pudgy Penguins NFT community, focusing on the shift towards community governance.
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Crypto Market Drawdown
- The crypto market drawdown correlates with a broader market decline, influenced by the FOMC meeting and anticipated rate hikes.
- Rate hikes increase the appeal of safe assets, decreasing demand for risky growth assets like crypto.
NFT and Emerging Asset Performance
- NFTs have shown relative strength during the market downturn, indicating a partially separate investor base.
- Emerging growth assets within crypto, such as those in the Cosmos ecosystem (Osmosis, Near, Atom), have outperformed.
Citadel Securities Investment
- Citadel Securities, a prominent market maker, received investment from Sequoia and Paradigm.
- This move is notable given Citadel CEO Ken Griffin's past criticism of crypto.