FED ANNOUNCED THEIR DECISION
Meta’s Q2 showed lost millions, but Mark Zuckerberg stayed positive. Not clear for how long since Meta is sued.
Coo! It’s me, Crypto Owl! Wednesday is National Milk Chocolate Day, so I bring you the sweetest crypto news today!
On Today’s Menu:
🫔 SPICY MEXICAN TAMALE: FED Has Raised Interest Rates as Expected
🥬 SALAD ALONGSIDE: Meta’s Q2 Data: Losses Of $2.8 Billion
🍫 BAR OF MILK CHOCOLATE (MANDATORY): Does Meta Want To Control The Whole Metaverse?
🍌 FRUIT OF YOUR CHOICE: Solana Has a Shop IRL
FED RAISED INTEREST RATES AS EXPECTED
This is it! We overcome this stressful moment and got the answer from the FED.
FED raises interest rates by 75 basis points. But… is this good for us and the crypto market?
I guess so. Well, currently, we’re witnessing bullish moves in the crypto market, and I think this is because markets had expected an even worse FED decision - to vote for 100 bps.
So luckily, in the past 24 hours, the crypto market rose around 9.2%, and we’re back again at more than $1 trillion value.
Let’s look closer:
Bitcoin spiked up around 9.6%, which is nice.
Altcoins also trying not to leave behind and stretch upwards:
ETH jumped in price even more, compared to Bitcoin, it’s 15%!
SOL is another champion rising by 10.8%;
ADA is also showing a pretty good result by going up by 9.6%;
Even meme-coins DogeCoin and Shiba Inu hold up well, and in the past 24 hours, both rose by 6.8%.
So, as you can see, the current situation is more on the positive side, and lots of people are now thrilled about this bullish green color. However, we couldn’t be fully relaxed. This sudden spike in the crypto market could lead to dropping prices. Some people from the crypto community are suspicious and quite pessimistic as they don’t believe that market will continue going up further.
Well, as I’ve said before, this week will be swinging here and thereafter, every earnings announcement. So, it’s normal. I think we should wait for US Q2 GDP rates data (⚠️UPDATED WHILE WRITTING⚠️: GDP dropped to 0.9%, so it’s lower than the Q1 GDP rates; it’s a possible sign of recession, but let’s wait how crypto market is going to react), as well as Apple and Amazon’s earnings data which will be released today. Maybe tomorrow will bring us a very different situation in the crypto market as we see it now.
META’S Q2 DATA ON THE TABLE
Another important announcement for all of us.
Meta’s quarterly earnings suffered from huge losses of $2.81 billion.
It doesn’t look like it had some negative impact on the crypto market, yet it is important to see the bigger picture.
Worthy to note that not all whole Meta as a company lost that much money. It’s Facebook Reality Labs (FRL), Meta’s division separate from Facebook, Instagram, Whatsapp, and Messenger. FRL is specifically responsible for full Meta’s integration into the metaverse.
And as we talk about metaverse, it gets important since it's a part of crypto, right?
Such a massive loss is not happy news. But you know who sees the good thing in this?
Mark Zuckerberg, of course. Meta’s founder and CEO believe that almost a $3 billion loss is insignificant in this “savvy long-term strategy”. Zuckerberg said, “I feel even more strongly now that developing these platforms will unlock hundreds of billions of dollars, if not trillions, over time.”
Well, good luck with that, Mark.
DOES META WANT TO CONTROL THE WHOLE METAVERSE?
Mark will definitely need some luck. Not only because of his company’s losses.
It is because his company has been sued.
What happened?
As you know, Meta is the main company that aims to create and build Metaverse. Zuckerberg is a passionate believer in a metaverse, and the fact that he decided to change his company’s name from Facebook to Meta only proves it. The previous part of the newsletter is also a great example.
If you want to “travel” to a metaverse (and in it), you need to put on virtual reality (VR) glasses. Self-explanatory. So, Meta has a plan to purchase a VR app maker called Within. You probably think: “what’s wrong with that?”. It seems like nothing is wrong, however, US Federal Trade Commission (FTC) things differently.
FTC has decided to file a suit against Meta exactly for planning to buy Within.
Since Meta is the number-one pusher towards the metaverse’s creation and fully launch, FTC strongly believes, that Meta aims to control the metaverse. And the newest Zuckerberg’s plan to purchase a VR app seems like another step closer to reaching supremacy over the virtual future world.
Meta VP Nikhil Shanbhag replied to the accusations: “The FTC’s case is based on ideology and speculation, not evidence.”
Well, you can’t disagree with that. But the idea of Meta wanting to control the whole metaverse doesn’t seem so shocking to be honest.
Metaverse’s idea is to join all people in one place, and let them do the usual stuff (work, travel, invest, etc.) in an innovative virtual way. It should be a new version of the Internet, as we know it now. On top of that, it should be fully decentralized, meaning, with no supreme authority. Maybe FTC won’t let Meta become one.
SWEET THURSDAY’S FACT
Solana is going to open a store! No, no - not a virtual, but A REAL physical store.
You could find it in New York, Hudson Yards.
According to developers, customers will be able to:
Learn how Solana works and what is web3;
Set up their crypto wallet and get the first NFTs;
Get guidance on a first on-chain transaction;
See an interactive art installation;
Shop Solana merch;
They also said that the store will be like a “cultural center” and “embassy” for Solana.
MORE CRYPTO NEWS AROUND THE WEB
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Disclaimer: This newsletter is strictly educational. None of this information is intended to be financial advice. Always do your own research and act responsibly with your profits.