May 3, 2021 Sign Up

By Overheard on Wall Street

"You shouldn't do things differently just because they're different. They need to be... better." –Elon Musk

Good morning! Last week we kicked off our first Wall Street NFT drop (check out the "Casino" NFT below). (For y'all living under a rock, an NFT is a digital asset, which can be authenticated by blockchain technology). The NFT auction ends today at market close (4pm ET) with three pieces up for grabs, so make sure to get your bids in before then!

1. Story of the Day: ETH She Told You Not to Worry About

It's been a great week to be Ethereum ($ETH) as the #2 cryptocurrency in the world crossed the $3,000 mark on Sunday, with its market cap hitting $350 billion and surpassing Nestle, P&G and Roche. ETH is up ~400% for the year and ~200% since February, as it has overshadowed its older sibling, Bitcoin (200% gain for the year).

The latest bull run is driven by 1) European Investment Bank's announcement that it will do a digital bond sale on the ETH blockchain network and 2) Visa's announcement that it will settle transactions using ETH, as the world realizes that crypto is a little more than a scam.

Short Squeez Takeaway: We believe ETH is here to stay and is our #1 crypto investment pick. While Bitcoin is primarily used as a store of value, ETH has expanded on Bitcoin's vision of a decentralized payments world by building a global computer network. Through this network ETH has allowed creators to build many more decentralized applications e.g. ETH is the cryptocurrency of choice for NFTs, and is also being used in a variety of applications in finance, advertising and gaming. An upcoming upgrade to ETH 2.0 will also make the network faster and more efficient. $10k by year end any one? (A former ARK Analyst thinks it can reach $40k)

2. Markets Rundown

• U.S. stocks fell on Friday but the S&P 500 notched its biggest monthly rise (5%) since November
• Crypto markets bounced back after a dip last week, with BTC gaining 15% over the last seven days

Movers & Shakers

• (+) Noodles & Co ($NDLS) +5% on better than expected Q1 Revenue.
• (+) Tesla ($TSLA) +5% on reports that TSLA might have a better 2021 than expected.
• (-) Twitter ($TWTR) -14% on lower than expected user growth in Q1.

3. Top Reads

• They want you back at the office (NYT)
• Alternative proteins would be a good substitute for commodity meats (Crunchbase)
• Why it's hard for older generations to understand changes in the investment landscape (Reformed Broker)
• The hype has died down, but r/WSB is still moving stocks (BoB)
• Apple’s record second quarter in charts (SixColors)
• Skyrocketing lumber prices add $36K to new homes (HousingWire)
• Amazon to raise pay for 500,000 workers (NYT)
• The Golden Age of Fraud is Upon Us (AWCS)
• Americans are dumping money into video games (TechCrunch)
• A new CEO for TikTok (TechCrunch)

4. Book of the Day: The Bitcoin Standard

The Bitcoin Standard by Saifedean Ammous is a book all crypto enthusiasts and anyone who wants to learn more about the crypto world should read. Although the book is a slightly lengthy read, Ammous takes on a beautiful historic journey of monetary policy and "money," from trading seashells to coins to gold to modern government debt. 

He then goes on to explain the value proposition of Bitcoin, the first successfully implemented form of digital cash. Bitcoin shifts power away from governments in favor of individuals allowing us to imagine a world where money is fully separate from politics and unrestrained by borders. The final chapter is a list of FAQs where Ammous answers questions such as "Who controls Bitcoin, and can they change it if they please?"

5. The Daily Visual: What Motivates Crypto Owners

Source: Insider Intelligence

6. OverheardonWallStreet "Casino" NFT

The "Casino" NFT commemorates the good fight being fought by everyone that is not a hedge fund. In January 2021, we managed to short squeeze the short sellers of the premium gaming retailer, GameStop. GME ignited the fire, AMC joined in, meme stocks piled in and the suits suffered heavy losses. The revolution is just getting started. We won’t be speaking for the people, but we will be fighting for the people.

7. Memes of the Day

@bankingpledge Instagram

@overheardonwallstreet Instagram