🧠 Everything you missed, in one email. We got you.

Seedphrase Daily 👋  In case you missed it, the CEO of SushiSwap ALLEGEDLY inserted his fingers inside of a horse. Official confirmation yet to come. 

Today's Agenda 📓: 

• 🤝 New Podcast with a Crypto GOAT

• 🍣 SushiSwap, horses, bulls, and whales

• 🧠 How to use Etherscan to your advantage.

• 👀 NFT NEWS: big Ls & changing culture?.

🚨 EPIC PODCAST THIS WEEK:

We did a podcast with a legend, the Steve Jobs of Crypto, Mr. Champ Crypto himself (follow him on Twitter for alpha).

The podcast is full of: 

• alpha

• NFT analysis

• crypto micro caps

This is something you won’t wanna miss. We’re dropping gems so dont say we didn't tell you about it.👊

Check it out below👇

🍣 SushiSwap, Horses, and Bulls

Just a few days ago, the market went BULLISH on Sushiswap. 

Sushiswap jumped nearly 20% after an asset management giant, GoldenTree, revealed a 5.2M stake in the company. Good news if you're a holder. But of course, nothing is that simple in crypto. The gigantic stake raised questions on how decentralized the DEX really is. 

Context: GoldenTree has $50B in assets under management. To put that in perspective, The New England Patriots are worth about 6.4B. Real Madrid is worth about 896M.

🐎 Hold your Horses

After the bullish news, crypto twitter did its thing:

Of course, this is ALLEGED. Twitter rarely shows up with receipts. 

But that doesn't matter for speculative assets. In the last 24hrs, Sushiswap plummeted 10%.

Maybe it wasn't just a horse that killed the bull, it could have been the whales.

The decentralization problem. 

We know whales can dominate certain spaces, and that includes so called "decentralized exchanges" (DEXs), as they own the majority of tokens. 

Voting power:

• GoldenTree and Cumberland (large trading firm) cast 8 million of the 13 million votes recorded.

• 11 million votes in total came from only five large wallets.

This makes it less "decentralized" since there are literally five entities who control a majority of the decisions.

Last week we talked about the next big crypto narrative for plays to look into. 

Read here. 

In short GameFi, DeFI, and DEXs are up next. 

This investment shows us how confident VCs are in the project and that $SUSHI will be around for the next bull run. 

Right now, $SUSHI is down almost 90% from its all-time high, which suggests it could be an excellent time to start dollar cost averaging into it and adding to your portfolio. 

But NFA 😉

🧠 Using Etherscan to your advantage. 

ETH is the #1 retail token that takes up a massive percentage of the crypto markets.

But who has the most? 

Today we'll break down who's holding the most ETH in their wallets and how to track them so that you can keep up with the big players. 

This image represents ETHs holders, and as we can see: 

• Investors account for 23% of the supply. 

• Whales own 17% of the supply.

• Retail is 60%

Just a year ago, whales accounted for 70% of ETH's supply, according to Blockworks. Things happen fast and flip at any time in crypto.

Who are the largest holders? 

#1 The Beacon chain deposit smart contract holds over 14.1M tokens. That equates to 11.7% of ETH's total supply.

#2 Binance 

#3 Kraken

#4 Bitfinex 

It makes sense, considering they need reserves to run a successful exchange where people constantly buy and sell.

How to track whales and what to look at:

https://etherscan.io/accounts provides everything you need to know about where smart money is going. They reliably track whale movements 

What to look for: 

1. If whales are accumulating and adding to their wallet, it is a bullish sign. 

2. If whales send their ETH to an exchange, they are trying to sell it off. 

Studying what they stock up on can give us a general image of where the market is going since they control a lot of it. 

Leading up to the merge, we saw whale wallet addresses transfer A BUTT LOAD of ETH back onto exchanges (thank you, etherscan). 

This indicated to Seedphrase that the merge would be a sell-the-news event. And it was.

⚜️ Golden Nugget: More ETH on exchanges = More ETH ready to be sold

👀 October NFT Round Up

Things are getting hot. People are losing and gaining money at the speed of light. Here's a recap from yours truly:

The hottest topics: 

• Logan Paul bought NFT for $623k in 2021- now worth $10.

• 3AC's NFT portfolio is doing worse than the "where my hug at" guys.

• DeGods announces 0% royalties and how it will affect markets. 

Logan Paul's $600,000 NFT loss. 

Logan. Logan. Logan. Known for Prime, Boxing, WWE and promoting crypto pump and dumps. 

Last year, he gained a lot of attention when he purchased Azuki's Bumblebee NFT for $623k. Fast forward, it is now worth $10. 

⚜️ Golden Nugget: Don't follow influencers for financial advice.

3AC's NFT portfolio is doing worse than the "where my hug at" guys.

Back in June, 3AC, one of the most significant crypto hedge funds, went bankrupt.

They bought a yacht, among other wasteful things, but also invested in NFTs at the bull run's peak. Now, they're selling off more than 300 NFTs to try to save what little they have. Buy high, sell low. Genius.

They spent over $35M on projects now worth an estimated $860K. 

These were their biggest purchases: 

• Some Other Asshole by XCOPY for 550Ξ ($2.3M) on December 5, 2021.

• DANKRUPT by XCOPY for 469Ξ ($2M) on October 24, 2021.

• Decay by XCOPY for 345.69Ξ ($1.4M) on December 5, 2021.

• Nude portrait by Robbie Barrat for 300Ξ ($1.1M) on October 5, 2021.

• And our personal fav, Pepe the Frog NFT Genisis by Matt Furie, for 1001Ξ ($3.5M) on October 5, 2021.

⚜️Golden Nugget: DYOR, and make sure you're not buying the hype. Don't be someone's exit liquidity. 

DeGods announces 0% royalties and how it will affect markets. 

DeGods is the most popular project on the Solana network and has just announced that it will switch to a 0% royalty system model to remain competitive. 

This sparked a massive debate within the community for many reasons: 

1. DeGods founder Frank previously called royalties "the best alignment of incentives between founders and holders (right now)." He warned those circumventing royalties not to be mad when "mints become more expensive and more projects rug." Naturally, going back on his word made some people angry. 

2. Creators/builders for royalties will have a more challenging time generating money because it is the most consistent stream of income NFTs have.

3. The people against royalties say it's the future because it will force builders to provide real utility rather than relying on secondary marketplace sales. 

Let's break it down. 

People cheering for royalties

• They are a vital source of income for creators, specifically for artists and smaller builders to keep building. 

• It is one of the critical advantages of NFTs over physical art. 

• NFTs have very little to offer creators without royalties.

People that say fuck royalties

• Royalties undermine the idea of true ownership, and those holders shouldn't have to pay out additional funds. 

• Data shows the increased popularity of 0% royalty marketplaces, meaning they think the meta is moving in that direction. 

• It forces creators to focus on real utility rather than trying to pump secondary sales.  

😳 Meme of the DayNot ours, though. Ya'll be safe out there.

Did you learn something today? Spread the knowledge!

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