Today’s episode is a joint podcast with the team at Reflexivity Research and the team at Elementus. From Reflexivity, we have Will Clemente (Founder). From Elementus we have, Max Galka (Founder & CEO), and Alex Mologoko (Head of Research). This conversation covers a brand new massive report covering year-in-review of 2023 of everything that happened on-chain. Topics include bitcoin rally, open interest, wallet activity, inscriptions, stablecoins, and more.
TIMESTAMPS:
00:00 – What drove bitcoin rally?
06:37 – Collecting data
08:59 – Wallet activity data
15:13 – Bitcoin that hasn’t moved in a long time
18:14 – Inscriptions
21:42 – Hashrate
22:48 – Trends to monitor
25:31 – Stablecoins
32:37 – On-chain technology
37:55 – Elementus
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All right guys bang bang I’ve got an awesome group here with us uh I thought maybe the first place we could start will reflexivity and elementus came together they did this year review of onchain activity uh and the first question you guys hammer on is what exactly is making bitcoin’s price go up
As we went into the beginning of the year help us understand what you guys found yeah absolutely this was a really exciting report that we put together uh there’s a ton of kind of year in review reports but I don’t think anyone’s done one from from an onchain perspective so
We’re excited to to put this out as you mentioned the the first thing we kind of dived into was kind of breaking down what’s Driven uh bitcoin’s price performance throughout 2023 so you know if you don’t live under a rock you’ve probably seen that Bitcoin has been one
Of the best performing assets of of the entire year and you kind of look at it aggregated measured against equities as opposed to individual equities uh it is the best performing asset class or was the best performing asset class of of 2023 and there’s a couple kind of
Factors that have been driving that you know one is just mean revers after Bitcoin and crypto got beat down so bad you’ve got kind of an inflection point uh in the liquidity cycle and then also the biggest one is kind of front running of of the recent Bitcoin ETF approval
And launches uh that that we saw over the last couple weeks and people been continue to to keep a close eye on and we break that down into kind of data to to try to kind of build a picture of the type of Market participant that’s been
Driving Bitcoin over the last call it you know 12 to 12 to 15 months there’s a couple interesting kind of subsets that we can break it down into um and in the report we broke it down into three one is onchain capital flows primarily looking at flows around coinbase the
Second is activity by Geographic trading session uh and the third is activity within the derivatives landscape so maybe PP we we dive into first of all looking at uh some of this onchain kind of capital flows um particularly uh around coinbase so in this first chart
We have basically um a month over month a chart of coinbase prime uh and and the amount of Bitcoin held within coinbase Prime um and so what we can see is that uh throughout the year we’ve seen a continued increase in the amount of Bitcoin held within coinbase Prime what
Does this indicate um alongside the the transaction volumes Pi picking up um it signals that there’s more activity uh taking place within uh coin bases Prime in custodial arms and that shows an increased amount of activity from this kind of USB institutional cohort that particularly you know uses uses coinbase
Uh when we look at coinbase relative some of the other Crypton native venues uh coinbase is well known for being kind of the most regulated publicly traded uh you know top five accounting firm audited exchange relative to maybe some of the the other venues offshore that
Are a bit more kind of in the realm of of kind of wild west uh and so you know a lot of these uh us-based hedge funds High net worths uh family offices Etc like to use coinbase as opposed to some of the other venues so maybe that’s some
Some good context on why we’re looking at coinbase in particular here uh so we’ve got the picture kind of being painted of you know increased amount of Bitcoin held in uh coinbase custody as well as um their their Prime arm as well and then when we look at flows within
The two as well we see very similar Dynamic of we saw continued outflows from coinbase Prime uh particularly leading up uh right after the the Black Rock filing um into the actual ETF launch so um you know that that looks like a lot of kind of front running of
The ETF um and then when we shift over to uh the kind of geographic trading uh premiums this another really interesting point to kind of uh hammer on in terms of looking at the type of type of Market participant that we saw throughout 2023 uh in the chart that we have in the
Report uh we have the US trading hour uh basically cumulative return uh and then we also have APAC and then EU and so what we can see is that particularly after uh the initial Black Rock filing in July of of 23 we saw that the US trading hour premium really started to
Show relative to AAC in in the EU and so that’s just another data point to kind of illustrate that uh you know bitcoin’s rally throughout the back half of 23 uh was primarily driven uh by these us-based firms and then the last one um that I thought was also really
Interesting was shifting over to the derivatives landscape U looking at activity around the CME so the CME um you know very similar to how coinbase is used as the the spot exchange of choice relative to some of the other offshore venues the CME is um is is used by
Primarily kind of you know regulated us-based hedge funds institutions Etc as opposed to you know trading Perpetual swaps on some of these offshore venues uh you know in particular you know traditional Financial players are probably going to use CME as opposed to you know maybe going to use a buy bid or
A binance uh and so this is an interesting signal for the activity uh taking place you know by those by those uh that cohort of of Market participants and so what we saw throughout 2023 uh once again particularly after um the filing for Black Rock in July of 23 is a
Massive uptick in both Futures uh open interest and volume on the CME uh we saw this shoot up uh from right around two billion to reaching all-time highs of over six billion um in the chart you you’ll be able to see basically this this massive run up uh following the the
Filing in July and so this is kind of another piece of information to kind of construct this picture of who really kind of drove drove Bitcoin up uh throughout the year and so you know our our kind of thesis through through putting all these data points together
About the the type of Market participant uh throughout 23 is is basically painting this image of um at the beginning of of bitcoin’s kind of lifespan it was particularly you know um uh kind of cryptographers and and very much um you know people that were Deep
In The Weeds about um you know building out something similar to bitcoin and then latched onto Bitcoin once it was clear that that was kind of the best form of of uh Sovereign you know scarce money that was ever created that was that was digitally native um as we kind
Of progressed throughout bitcoin’s lifespan then it kind of shifted towards retail High net worths um you know over the last couple years we started to see some hedge funds and um some of these trafi players start to dip their toes in the water but I think it’s pretty clear
Throughout 2023 that the dominating type of Market participant that really Bitcoin up was this kind of us-based uh perhaps you know more ntional Finance oriented type of player so it’s fascinating to look at this data um but how you get the data I think it’s a pretty important question I
Think maybe Max uh element is obviously the technology you guys have built allows you to uh provide incredible attribution to these wallets understanding Capital flows and there’s a lot of the things that will is talking about here is kind of the analysis or conclusions are driven by this
Technology of mapping wallets describe a little bit as to how elementus does this sure well i’ say at the very highest level there are two components to it there is the clustering and the attribution piece so the clustering I would Define as just um data science methods for figuring out which addresses
Roll up into the same owner and there’s a lot of different ways of approaching that um different kinds of urtic uh that you there’s lots of academic papers out there that you can look online about some of the base methods for doing that um that’s where the majority of our
Technology sits and so the methods that we use uh go quite deep to be able to connect wallets together so for something like a say coinbase coinbase the exchange they have called 100 million addresses on the Bitcoin blockchain um our mission with them is to be able to um identify the Wallets on
Chain and understand the connections and to be able to group them all into kind of one entity uh now from that point we need to be able to go out then and say okay we have this network work of 100 addresses that are all the same actor um
Like who is this and for that we need to go out and be able to put a label on it so that’s the attribution piece and how do you find out who it is like what are some of the ways or methods that you would use to do that well easiest way
Would be for for a coinbase you just sign up for a coinbase you deposit small amount of Bitcoin now you have one coinbase address and then you can extrapolate that and say okay the other 99.999 million addresses are also a coinbase uh when you get to some of the other
Entities that are not quite so easy to sign up for if you’re talking about something some of like the legal stuff darket markets ransomware or even if you’re talking about like institutional um buyers hedge funds um some of these kind of actors you know those ones not as easy to identify by by
Just signing up and interacting with so for those um you know we have to get clever in our in our approaches but um and so as you’ve done this uh as part of this report there’s this entire breakdown of wallet activity walk us through a little bit as to what some of
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A beautiful screen trust me I use mine every day you’ll love the espresso screen and I think it’ll make you more productive go check them out today by clicking on the link in the description yeah okay so yeah this is a really interesting one so you know my
Background I I come from um a background in in trafi so I worked for for nine years at Deutsche Bank and credit spe as a Trader I traded tons of fixed income markets so you know I was on the front lines and looking at every piece of information that was out there for
Understanding markets seven screens in front of me I was on top of everything uh what this represents is something something that’s not even possible in trafi which is that you can look across the entire market and you can see what the cost basis is with the average cost
Basis is for everyone who holds Bitcoin right and that’s because you can see when the positions were put on you know the price of Bitcoin at that time so you know what that person has in that trade so what this is looking at is the average cost basis at which Bitcoin is
Held on the market so it’s actually quite intuitive if you look down to the chart on page 13 the market value to realized value so what this is looking at is um well it’s comparing what did the average person pay for Bitcoin versus what is the current price of
Bitcoin so how much how much profit do people have in the market and what you’ll see is that is that occasionally the market price for bit Bitcoin will drop slightly below um that cost basis number but it it tends to stay there for only a very short period of time right
Because you know presumably people are not willing to sell at a price below which they um the price of which they purchased it so uh this is is a remarkably reliable indicator um which um you know this is we’re looking over here here over a 10-e Time Horizon and um even though those
Kind of opportunities don’t appear all that often um Trend seems to be uh near 100% uh accurate that when you see Bitcoin Delow dip below the cost basis that is a very strong Buy Signal and when you guys look at this um obviously there’s uh a lot of onchain
Data providers right that are kind of uh selling that data but uh the attribution and um the the collection that you all are doing can be used for a multitude of different purposes and so what are some of the other ways that you can actually use uh this wallet attribution um for
Either commercial purposes or for individual investors well I would say this this is a very big right so like in in traditional Finance it is um uh almost impossible to find Reliable market indicators right indicators that are predictive of where the Market’s going to go the one we’re looking at
Here is is an example that very clearly um does accomplish that um so some of the things we’re working on with our customers is that uh there’s a lot of other ones like that that exist Within These markets um you know for someone coming from the trafi world like that’s
Kind of Unthinkable that there could be like um these kind of hidden uh diamonds just sitting around but there there truly are within Bitcoin and crypto and so uh a lot of what we do with our data is tried to identify some of those those indicators and those can be a lot of
Different things um so that’s one of the ways and some of the primary customers we’re working with right now is helping people to identify trading opportunities um if we’re looking kind of more generally and kind of more broadly as to really where this whole ecosystem is going well like the
Coinbase Commerce um addresses that we’ve identified um excuse me coin not coinbase Commerce coinbase custody addresses we’ve identified those ones are particularly significant if uh if you start under the assumption that um uptake of these ETFs is going to be a big driver of Bitcoin in the future um
People aren’t necessarily going to know like in real time like you know uh how much buying of these is happening and where they’re going and how much Bitcoin is is needing to be purchased in order to back the ETFs that are being created um but that’s all stuff that we can
Track on Chan so over the course of the year and even right now that’s something that we’re looking at very closely is uh movements and growth of the size of the Bitcoin sitting in coinbase Commerce as a as a proxy for um the uptake of the
ETF got it and then when you look at uh these wallets it seems like uh there’s a lot of Bitcoin that hasn’t moved in a very very long time is there any way to determine is that Bitcoin lost or is that Bitcoin just in the hands of you
Know people with very strong kind of diamond hands yeah yeah uh well yeah this is another big one that we’re looking at as well because you know if when you look at at the the size of these of the companies that have launched these ETFs guys like Black Rock
Fidelity vanck um uh you know lots of really big companies that that are thinking really big with this right Black Rock didn’t launch this to make a few million bucks right Black Rock black rock launches new product to make huge amounts of money they have trillions
Under management so I think a big open question here is and when you’re trying to answer the question of well will like the buying of these ETFs which I expect be substantial um that for every Bitcoin bought in ETF there needs to be some actual Bitcoin that someone is willing
To part with and um so a big question is like how easily is that Bitcoin gonna come out and you’re you’re entirely right you have um of 21 million Bitcoin that is the final number that will be mined of all time uh just right off the
Top you have a million of it that’s owned by Satoshi and that’s not going anywhere um you also have other big chunks of it that are lost for various other reasons I think there was a big chunk that’s sitting in a landmine somewhere or landfill somewhere
Um right and you have you have lots of other chunks that for various other reasons are likely never to come out and I’ve seen some quantifications of that number and I I’ve heard two million is thrown out as as a um a rough estimate but I think you start looking beyond
That and then you have say you know the Bitcoin that I have sitting on my treasure wallet which is in my closet somewhere and you know which I may not even be focused on crypto right now so I may not be likely to you know no matter
How high the price goes to go in and sell it and I think um you know as if the start the price starts ticking higher and feel like we’re in a build like a bull run I think you also kind of get this uh reverse scenario where higher price doesn’t necessarily make
People more likely to sell it could actually make you more likely to want to hold it um so what’s amazing about Bitcoin is that we can actually survey the entire ecosystem the entire economy of all of these positions and um start to put together some metrics on like how these
Different positions respond to diff different uh price movements so that’s a a long way of saying I don’t have an answer right now on how easily that Bitcoin will come out but um I think it’s a very relevant question for like what happens with this ecosystem going
Forward yeah that makes uh ton of sense well may maybe you can uh walk us through the inscriptions which obviously was a huge part of Q4 there was tons of uh explosion in fees and I think a lot of people didn’t understand or see this coming but being able to see onchain
Happening there is pretty enlightening yeah absolutely inscriptions were one of the most exciting developments at least from an onchain perspective uh throughout 2023 um so take a step back what our inscriptions our inscriptions are uh kind of a newly discovered feature if you will of the Bitcoin blockchain was
Created uh through a loophole uh in the end of 2021 soft Fork which was called tap r uh it enables users to basically store text media Etc in the metadata that’s attached to the smallest numbered units of a Bitcoin called a Satoshi there’s 100 million Satoshi in every
Bitcoin um and so U you might have seen Eric wall or or uh udy kind of pushing ordinals widely on on Twitter they’ve caused kind of a ton of controversy uh within the the Bitcoin Community if you will uh some people feel that uh they’re a detriment to the network because they
Increase fees and increase the amount of uh data that you need to download to run a node other people say that they’re great for the network because they raise fees uh and then also you know kind of take away the the long-term security budget issue that a lot of people have
Voiced about Bitcoin reality is the answer is probably somewhere in the middle but nonetheless uh as activity for inscriptions has picked up it’s become a a bigger and bigger conversation kind of within the within the community um when we look at the amount of fees that have been generated
Uh upwards of $200 million of fees uh for the Bitcoin Network U just from the transactional activity around ordinals which uh of course benefits minors directly although it maybe makes the uh kind of you know small transaction uh for you know if you’re trying to buy a
Cup of coffee or something like that with the Bitcoin base chain which I’m of the belief that that’s not necessarily what the base chain is supposed to be used for uh it does make you know obviously uh you know transactional cost slightly higher for for those types of
Uh those types of transactions but um overall the The increased amount of fees benefits Miners and then in theory that should you know create a higher uh incentive for for miners to want continue to bring on more machines to to capture those fees and then as a byproduct of that secure the Bitcoin
Network and so one fun fact was this is no longer the case as uh fees have drawn down over the last month by about 80% since when we pulled some of this data initially uh but at one point uh in December Bitcoin reached the number one blockchain by transaction fees over the
Last seven days uh and 30 days and I don’t think this has happened at least in in in a very long time I’m not sure if I’ve ever seen that happen uh usually eth dominates uh the the kind of number one spot for for blockchains uh by
Transaction fees and so just kind of a tesate uh to the amount of activity that’s taken place in kind of the frenzy around inscriptions that we’ve seen uh at one point also inscriptions made up over 25% of of daily fees on the Bitcoin Network so um this is something that I
Think is exciting to to continue to watch for a couple reasons um but you know I would expect that if we have kind of a raging speculative bull market you’ll probably see uh inscriptions continue to to persist in full force uh you know we saw kind of the uh
Speculative bubble if you will around nfts in 2021 and I think there’s uh there’s a decent probability that we may see something similar around uh inscriptions and then I guess to kind of segue um inscriptions into the next chart that we have is looking at hash
Rate so you know as I as I just mentioned um as fees are increased on the Bitcoin Network it creates a stronger incentive for people to or for miners to uh continue to add more machines onto the network and try to compete uh to increase the amount of uh
Hash Hash rate that they’re generating to compete um for uh the amount of fees so so that they can increase their revenues um as we can see in this chart U hash rate has just continue to absolutely RI throughout 2023 uh it makes the China mining band of of Summer
Of 2021 just look like a blip on the chart uh and so you know I definitely don’t think this is fully driven by inscriptions um but you know if you do have kind of an elevated uh regime of fees for for the network that should continue to kind of um you know further
Further advance that that rise and hash rate that we saw throughout the year now when we see so much of um the minor activity we also know that they outperformed Bitcoin during 2023 uh in terms of the financial return should we expect continuations of these Trends hat
Rate going up fees going up uh minor outperforming the underlying or could this have maybe been an Aly and actually the outperformance by the minor of the underlying is something that people shouldn’t expect moving forward well I think typically if you go back and look over the last couple years miners
Usually trade with beta to the underlying Bitcoin and so what does that mean it basically just means that when Bitcoin goes up the miners tend to go up more when Bitcoin goes down miners tend to go down more um and so you know with that there’s a ton of volatility around
These Miners and I think one kind of mental model at least that that I’ve used for thinking about allocating to miners is uh they’re similar to a call option on on BTC so you know if you think BTC trades at call it 100K plus over the next you know 12 to 16 months
Um you know miners are probably going to outperform that just given the way that that they trade relative to BTC um you know in the short term we’re recording this on you know January 22nd you’ve seen some reversion miners went on a pretty aggressive run uh it seems like
Um it seems like maybe they were kind of being used as proxies for front running some of the ETF launches and filings and launches um and then also uh as I mentioned a minute ago um we’ve seen the the fees that were elevated over the
Last call it month and a half kind of come down they’re down about 80% month over month so we’ve seen you know some of that that inscriptions activity that was fueling fees higher cool off in the short term um but you know when I think about maybe allocating to miners the
Kind of general generalistic that I use in my mind is they’re very similar to um call options on BTC and then you kind of have that added X Factor of you know if we do see kind of this prolonged regime of ordinal activity or they go on some
Type of you know speculative runs similar to how nfts on ethereum did in 2021 um you know that would significantly increase fees uh for miners across the board I mean just to kind of put it into into perspective uh in the middle of uh I guess I guess on
Average uh across Q3 2023 fees hung out around you know 750k to a million dollars a day um during kind of the peak of of this recent kind of wave of of ordinals in December fees reached upwards of $23 million which was the highest single day of of fees ever
Generated for the network and so you know you think okay if this persists for two or three months especially you know again during a bull market um where you also have you know just people um you know using the the Bitcoin Network U more in general uh that could that could
Be uh pretty effective for for some of these uh public mining equities so it’s just one thing I think uh to continue to keep an eye on for sure Alex let’s talk about stable coins which is the last part of the report but to me is maybe
The most interesting part just given uh a couple years ago no one thought that stable coins would be that big of a deal now it’s a major part of uh the crypto ecosystem and maybe even Global Finance what are some of the takeaways based on this
Analysis uh well yes uh stable coins are certainly the backbone of gii uh the uh fastest grown uh part of the crypto system today um and uh uh we have two charts in the report uh covering stable coins uh one is showing uh change in total stable uh coin market
Capitalization and the other one is uh velocity aggregate velocity of money for uh the stable coins so uh what we see through through about 2023 um the market cap of stable coins mostly contracted with that Trend reversing only in the fourth quarter uh of uh the last year so what what
Happened uh uh can be attributed to um uh several Trends first of all uh we had um the uh silicon value Bank Run on the bank scare in the beginning of 2023 uh which also affected uh the other two uh big so-called crypto Banks silvergate and signature that was also
Seized by the feds before uh running the bank really started we know that for example Circle uh and coin base uh deposited uh funds back in usdc uh stable coin with silicon valy bank and silvergate bank which at some point resulted in the Panic surrounding uh that particular stable coin uh trading
With a discount um as wide as 10% that’s care resulted um in usdc um market cap reduction through the year where uh uh that stable coin was mostly redeemed uh which was uh partially upset by the increase in tether market capitalization the the other Trend uh that contributed to the uh
Reduction market cap uh uh was the um shutdown of uh binance USD as uh binance uh Native stable coin admin mined by paxus and paxus was affected by the same silicon valy Banks here because paxus main uh depositary institution was Signature Bank which was uh seized by Federal Reserve as I already mentioned
So right now bu USD is in Redemption only mode and no new units are being issued uh the uh units of BD are only uh being redeemed but uh yeah in the end it all work worked out uh in the fourth quarter we’ve seen expansion of uh
Stable uh stable coin market cap which basically means the expansion of Fiat uh Capital base in the crypto ecosystem which uh is a sign of things to come we’re looking forward towards um Bitcoin housing to really kick off the bull market and because uh stable coin uh market cap expansion is
Normally Associated through with the speculative phases uh the bull market as you can see on the chart so when I look at these stable coins one of the things that jumps out to me is um internationally there’s been lots of adoption but also where they’ve been adopted has been pretty interesting you
Know usdt on Tron is not exactly where many people thought there would be uh adoption of stable coins or or any of these products but that seems to be a very popular use case how do you kind of decipher maybe the narratives versus this is just the onchain data tells a
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Uh yes you certainly stable coins uh have different use cases and uh because Tron is a relatively lowcost chain it became super popular uh in Asia for uh electronic transactions by passing uh the global banking system but not just in Asia for example you know one of our
Co-workers just mentioned that you you could uh you can pay with usdt on Tron for taxi ride in Venezuela for example so T so tther is actually uh seen the most adoption as uh payment rails whereas usdc is the most popular uh uh defi instrument representing Fiat dollar just to add on
And my my thoughts on this the uh you know I think the use the volume that’s traded on Tron is roughly similar to the volume that’s traded on ethereum which was a stat that really blew my mind when I first heard that because Tron is not something that’s used for a whole lot
Else so I think what it represents in um the defi or uh stable coin Space is really I think what Alex alluded to which is like a shadow banking system and that could be money laundering it could be Capital flight from out of one country into another uh in Venezuela for instance
Um but um I think that’s what that segment of the stable coin ecosystem is got it and and then maybe another you know kind of question is like as we enter this world where uh there’s multiple assets you know you see Larry Fink on National Television talking about uh tokenizing different you know
Kind of traditional assets Etc will we be able to use some of these same Technologies to track on chain the same movements Etc and so you know know a technology like elementus has uh now kind of can evaluate the entire Financial Market if everything goes on chain yeah and it’s it’s a really
Interesting concept and and I might even take it a step bigger that um you know some some of the conversations we’re having right now are with um generative Ventures whose thesis is really on this new digital economy that’s forming and that’s kind of some combination of of blockchain technology and artificial
Intelligence um and yeah what like what we’re working on together right now is um quantifying some of these base economic metrics such as a GDP right that you know you can look at how much Bitcoin on a very raw level is transacted on a daily basis but um quite different if you’re talking
About people exchanging One financial asset for another for speculative purposes versus somebody paying for some kind of good or service and like the uh the number of use cases that fit into that second category of um like actual economic transfers so real value being created through the blockchain is really starting to
Proliferate um so uh you know these are the conversations we’re having I think it’s a really exciting prospect the idea of um of an entire economy where um well everything can be calculated very very precisely from bottoms up as opposed to the traditional economy where economists are looking at sort of big picture
Indicators and making estimates of things um that I think yeah as as the use of blockchain proliferates into real economic use cases um yeah the level of transparency is really going to be a you know a big shift and it’s going to be something very different yeah I completely agree with
Max you know the thing that kind of captivated my mind a few years ago kind of initially diving into onchain Data was this idea of if Bitcoin is to become kind of the global uh settle layer for everything um you know it becomes very much akin to looking at maybe you know
The St Louis uh fed data right as opposed to just looking at you know what are onchain flows so that I know how to speculatively trade it over like a couple month time Horizon so I think you know the onchain data will definitely evolve from as Max eloquently just said
Uh from maybe being used for kind of uh uh Market analyzing uh or you know kind of speculative purposes around coming to conclusions about you know the state of the market or different Dynamics around the market to more kind of viewing holistically where this kind of new uh
World is with with Bitcoin as kind of the the settlement layer and then I guess one other piece to to tag on is you know as uh as you know you have things such as you know securitization of of different um I’m sorry as you have the the tokenization of of different
Securities or things brought on chain um all of a sudden you’re able to kind of view these things in a in a level of of granularity that you were never able to do before you I think one example uh we touched on towards the beginning is inscriptions right like um you know you
Could see in real time that minor fees were going up for you know these publicly traded uh equities but you know that wouldn’t have shown uh until the end of the quarter whenever whenever the company released their earnings so um you know I think holistically we’ll be
You know kind of evolve into um you know a way to view kind of granularity of of uh the economy itself that you’ve never had before as well as uh you know different different companies or or assets that are brought on chain in in a level of granularity that you’ve never
Had before yeah and you know one other just aspect I I would add on to this is um you know something that I way some way that I see that a lot of these different trends that ties them all together is um well you have like ETF
Stuff happening right now which is a way of taking digital assets and packaging them for buyers who really are not set up to hold digital assets um but you have some of this the tokenization of real assets is actually just the reverse of that it’s it’s tokenize it’s tokenizing
Traditional assets for buyers that can’t hold uh traditional assets but can hold digital assets so in both cases kind of a bridging of the gap between traditional markets and uh or traditional financial markets and crypto financial markets and you might throw stable in there as um you know another
Element to that and um well a lot of the new trends that we’re seeing um dpin would be another one where it really does feel like some of the um yeah the new developments that we’re seeing are less sort of crypto self-contained and much more um connective between uh
Traditional and um and digital so my last question I guess is uh Max maybe you can just if you had to describe someone what does elementus do what is the technology obviously I’m very bullish uh I’m an investor and think highly of both the team the technology and what you guys are
Building but like how do you describe it to someone we help people make better smarter more informed decisions on the blockchain and how do you do that uh well we we do that through data so uh we can help inform people of information that happens in the blockchain coming
Coming from traditional Finance right as a as a Trader but even all the people around me that I was working with everything in finance is um well information is the fuel of Finance uh for understanding risk for understanding opportunities um those are very sophisticated markets as this Market starts to approach traditional Finance
Involves and I think um there’s you know a lot of open-ended questions but I think some things you can guess pretty well how it’s going to evolve and some things are going to look quite like traditional Finance um the data piece is going to become increasingly important
And so um with our data we can help people to understand risks better so that some of these internal teams within investment Banks can go to their managers confidently and be able to articulate the the um the opportunity they want the risks that it poses and be
Able to quantify that with numbers um or for those teams that are looking around for opportunities and really want something to focus on we can help them do the explor work toine those um yeah and just generally speaking um we can help people to have a much closer pulse
On on the market so being able to understand what’s happening offchain you know a lot of news makes its way to crypto Twitter which is tends to be I think most people’s source of information and it’s a it’s a great one um and there’s a lot of stuff you can
Learn on there you can’t learn on the blockchain but there’s also a lot of information and a lot of things that happen on the blockchain that don’t make its way out such as FTX you know that’s one that could have been identified you know a year or more
Before it blew up as with uh some of the other big companies that that blew out so um we help people make better smarter uh better educ educated Decisions by using our data and maybe we can just go around real quick uh will where can people find you on the
Internet uh sure first of all you could uh check out our research firm reflexivity research uh at reflexivity research.com you check me out on Twitter at wcl II awesome Alex if somebody wants to get in in uh touch with you element website is over with elementus doio and uh my
Twitter handle is a m amazing there’s Max you take us home where can they find you H well if you want to find me on Twitter uh I am Galore Max amazing I appreciate all of you the report is incredible if anyone wants to go check it out I highly suggest you do
It uh reading through it is uh quite informative so we’ll definitely do this again in the future when you guys should do another one excellent yeah thank you very much Anthony
8 Comments
First
Hi
Shilling BTC again
Thank you for the content Anthony,, comment left for the kudos and algo. 🙂
things are so bullish the price is going backwards 😂😂😂
BITCOIN DATA VERY VERY BEARISH
#hahahahahahahahahahahahahahahahahahahahahahahahahahahahahaha
#HALVING IS THE POWER PRICE
The smartER people know that DATA matters NOT!
Neeext!
Day 1 of asking Pomp to loan me 10k