Sup, nerds!

Here’s what you’re getting in today’s edition:

• 💅 This is cool: This web3 game is in hyper growth

• 🔎 This seems important: The next crypto ETF will be...

• 🤝 Partner: You’ve heard it before… “Don’t beat around the bush”​

• 🔪 Let's dissect this: MSTR raises more money for BTC - but how?

• 💡 Bellwethers in Web3: Israel Wilson, Beauty Walker

Terms used in this edition (click for an explanation, or ask Web(GPT)3!):
Decentralized. blockchains, staking, airdrop, web3.

💅 This is cool:

This Web3 Game Launched in March, and Now Has More Users Than the US Has Crypto Holders

In one sentence: The Telegram-based game ‘Hamster Kombat’ has pulled in over 100M users since March, helping to prove a foundational growth blueprint in web3.

Most people don’t lend vast chunks of their money out on a daily basis — and they typically don’t use it to secure decentralized blockchains.

Which is why we’ve never seen lending and staking as features that may one day lead to crypto mass adoption.

When trying to guess at which applications will get us there, we tend to place our bets on:

• Gaming

• Payments

• And/or social media

With gaming being the most obvious in our minds, because it’s the easiest category to break in to (payments and social media each have heavily established network effects that people are reluctant to leave).

Ok — now, don’t laugh — but this new Telegram-based game ‘Hamster Kombat’ helps prove that point (we said don’t laugh).

The game has already pulled in over 100M users (that’s 2x the total amount of US crypto holders) — and it only launched in March.

And yeah, it’s piggy-backing off Telegram’s 900M strong user base — and yeah, it only really started picking up users when the game makers announced they were going to run an airdrop…

But that’s a good thing!

Because it helps confirm a much used blueprint, for others to follow:

Find a crypto aligned network with a ton of users → create a product for that network → announce an airdrop to attract new users fast.

If the product is solid, a large percentage of those new users will stick around and continue to use the product.

The foundations of this approach aren’t exclusive to web3 either!

Look at Farmville:

They found a network with a ton of users (Facebook) → created a product for that network (Farmville) → marketed that product (via Facebook Ads).

Will ‘Hamster Kombat’ survive in the long run?

No idea. But the growth blueprint it uses probably will.

🥇 Want the news before anyone else?

🔎 This seems important:

“Solana and Cardano next in line for ETFs” — Tether Co-Founder

In one sentence: Over the past 6 months Cardano has underperformed, while Solana has been labelled an unregistered security by the SEC — so while we’d love to see it, we’re not holding our breath.

You read that headline right.

Tether co-founder, William Quigley (helluva name), is predicting that Solana and Cardano are next in line for ETFs.

Why? Because “Wall Street is greedy.”

Which isn’t the worst analysis we’ve heard before…but it feels a little…off.

Over the past 6 months, Cardano has underperformed compared to other major altcoins, while Solana has been labelled an unregistered security by the SEC.

(As much as we’d like to see it — Wall Street tends to avoid underperformance and regulatory red tape).

Regardless of the token in question, we’re not pinning any hopes on seeing new crypto ETFs for any of the leading crypto projects in the near future.

Because to have a ‘spot’ ETF (where buyers purchase shares in a fund, then the fund uses it to buy crypto), the cryptocurrency needs to first have a futures ETF (where speculators can bet on the future price of the cryptocurrency, without the fund actually buying/holding the coins/tokens).

That alone takes a good amount of time.

Then the SEC will want to see a year or more of trading take place on the futures ETF, to make sure its free of manipulation.

And even then they can sit on their hands and reject spot ETF applications on small technicalities if they so choose.

So our guess is:

Yes, many of the major cryptocurrencies will have US-based spot ETFs, which will attract new investment and (hopefully) push prices up.

…but it’s going to take a minute.

Wall Street’s greed will need to battle with the SEC’s slow and begrudging acceptance of crypto.

And if the bear market hits in the next 12-18 months (as expected), Wall Street’s obsession with crypto will likely wane until things pick up again.

Patience is a virtue 🧘

🤝 Partner:

You’ve Heard it Before… “Don’t Beat Around the Bush”

If you want to become a better options trader, the Vantage Point team can’t wait to show you how to approach your trades directly and without hesitation.

Imagine your portfolio performance if you started buying weekly expirations dependent on future trends.

Now you can.

🔪 Let's dissect this:

MicroStrategy Raises More Money To Buy More BTC - But How?

In one sentence: MicroStrategy (MSTR) just announced its latest plans to buy up another $700M in Bitcoin; this time through convertible notes.

They’re back at it.

MicroStrategy (MSTR) just announced its latest plans to buy up another $700M in Bitcoin.

(Adding to the $14.3B worth of BTC they already hold).

How the heck does MSTR keep raising money?

Initially, it was through using cash that they had available on the balance sheet.

Then, as their balance sheet appreciated (with the rise of BTC’s value), they borrowed against the value of their holdings until they couldn’t borrow any more.

Now, they’re issuing convertible notes.

Meaning they will pay investors 2.25% annual interest, payable semi-annually on June 15 and December 15, beginning this December.

The notes will mature in June 2032, unless previously repurchased, redeemed, or converted.

To put it another way: the MSTR board is so confident that the value of BTC will rise by more than 2.25% per year, every year, that they will pay investors that fixed amount for the next 8 years - guaranteed.

Are they crazy for doing this? Sort of.

Is this going to work? Based on historical data, it’s looking good.

What happens if the value of BTC tanks and MSTR is forced to sell its BTC?

Now that MSTR owns ~1% of all BTC ever, fair to say, that would be bad.

So here’s hoping that doesn’t happen and the historical trend of ‘up and to the right’ continues for the next 8 or so years…

You’ve gotta love the gumption!

💡 Bellwethers in Web3

"Bellwether's in Web3," is a daily profile series recorded live with Nolcha Shows and Movement Labs in collaboration with Bellwether Culture. Check out the latest video below.

Interview: Israel Wilson,
Beauty Walker

Israel Wilson is a consultant, advisor, and mentor who helps guide early-stage tech startups. He uses his knowledge and experience to refine their strategies, expand into new business models, and forge strategic partnerships. His expertise spans business, web3, AI, and culture; and he’s committed to supporting diverse individuals who have overcome adversity.

His mission is to help others achieve substantial financial success while fostering meaningful, positive change in the community.

Follow: @israelswilson (Twitter), @israelswilson (IG), Israel Wilson (LinkedIn), Beauty Walker