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People hate red days in crypto. They
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make the market go down and cause a lot
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of people to panic and sell. But red
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days can also be a blessing in disguise
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because on those days, nobody pays
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attention. Nobody wants to be in crypto
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when prices are going down. And it's on
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these days that some of the biggest
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alpha can be found. Because when
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nobody's paying attention, you can make
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moves that will put you ahead of the
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crowd when the next bull cycle comes. In
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fact, we just saw one of these moments
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play out in real time this past week.
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While the entire market was focused on
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the continued price declines in the
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macro environment, virtually nobody
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noticed an announcement from the SEC
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that completely changes the future of a
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number of key protocols, including
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Ethereum, Ether, and a number of liquid
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staking platforms like Leo, Gido, and
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Sanctum. Before we get into what this
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actually means, let me take a step back
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and explain why today is the perfect
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time to be investing in these protocols.
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The simple answer is opportunity. When
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prices are falling, everybody loses
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interest. That includes journalists,
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YouTubers, Twitter influencers, and
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Take a look at our cryptobanter YouTube
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channel for example. When prices are
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rising, we see a lot of interest.
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Viewership is high. But when the market
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starts to decline, people lose interest.
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Take a look at this chart. Our views
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during the last two weeks have been
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abnormally low, which tells me that
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fewer people than usual are paying
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attention right now. And when fewer
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people are paying attention, that means
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there are fewer buyers. Fewer buyers
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means prices keep going down. But this
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also means that the best alpha can be
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found. If you know where to look, all of
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the ingredients are there. Now, I
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mentioned earlier that the SEC made a
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pivotal announcement. What exactly did
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they announce and why does it matter?
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Well, to understand this, you first have
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to understand the current landscape.
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See, until recently, liquid staking
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derivatives were treated as securities.
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This created a number of problems,
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especially around how exchanges listed
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liquid staking derivatives like Steth
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and SSOL. Because they were considered
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securities, they couldn't be listed on
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traditional financial markets. And this
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created an enormous barrier to entry for
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institutional investors. But on
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September, the SEC officially announced
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that liquid staking is no longer
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considered a security. Here's what this
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means in practice. It means that ETH and
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Salana ETFs can now offer staking
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rewards. It opens up the door for
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traditional financial markets to list
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And it allows liquid staking protocols
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to easily partner with traditional
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finance institutions.
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All of this means one thing. expect
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massive institutional interest in ETH
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and Salana going forward. This is
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important because since the beginning of
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this cycle, the two trends that have
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been driving the price of crypto have
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been mecoins like Dogecoin and Sheibba
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Enu and institutional adoption. Anything
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else has largely underperformed
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that includes layer 1's, NFTts, gaming,
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and even AI. Sure, there have been a few
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exceptions, but generally speaking, the
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market has favored either meme coins or
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projects with a strong institutional
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angle. This is changing now. The SEC is
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essentially giving a green light to a
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number of popular protocols. Those
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projects are likely to benefit from this
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decision and it's only a matter of time
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before the market realizes this. This is
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why I've been bullish on liquid staking
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protocols like Leo, GTO, and Sanctum.
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These platforms allow users to stake
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their ETH and earn yield while also
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providing an easy way to gain exposure
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to ETH without actually having to secure
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the network. As Leo's website says,
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anyone can use LO to stake ETH and earn
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yield, no matter how much ETH they have.
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Before Leo, users needed at least 32 ETH
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to become a validator. Today, users can
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stake any amount of ETH through Leo.
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This makes ETH staking much more
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accessible and appealing to individual
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investors, but it also makes it easier
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for institutions to gain exposure to
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ETH. Since the SEC has now confirmed
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that liquid staking is not a security,
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these platforms are free to operate and
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grow with very little regulatory risk.
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And that presents a huge opportunity for
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retail investors. Right now, the market
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is focused on negative price action and
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overall market sentiment, but this
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creates an opportunity for you to get
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ahead of the crowd. Make sure you don't
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miss this. Before you go, check out some
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of our other videos that we think you'll
4:32
like and make sure you subscribe to stay
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uptodate with everything happening in
4:36
crypto. Thanks for watching.
