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BLUE Monthly recap: August 2022

Dear BLUE holders,

BLUE had a negative August, losing 13.35% against the US dollar. BLUE opened August at $235.97 (USDT) and closed at $204.47 (USDT), closely following the current stock market turmoil.

BLUE is a digital token that represents a basket of cryptocurrencies. It is a very easy and simple way to invest in several cryptocurrencies at once.

BLUE had a very successful July (+29.38%), with a strong recovery that lasted until mid-August. Unfortunately, as August was coming to a close, economic measures to combat inflation in the United States affected financial markets, and cryptocurrencies in our BLUE basket suffered losses.

You may also listen to this report on our podcast, BlueTeko

BLUE components performance in August (USD Adjusted)

* Included for operating purposes.

BLUE is currently behind GOLD, NASDAQ, S&P 500, FTSE 100, IBOVESPA, and other major well known indexes since the start of the year. Most traditional investments are showing negative returns.

BLUE vs Traditional Investments, Bitcoin, and Hash11 (USD Adjusted) – Year-to-date

Cryptocurrencies were thriving at the beginning of the month. Nevertheless, a key announcement by the Federal Reserve, the Central Bank of the United States, of their decision to continue raising interest rates to battle inflation punished the markets by mid-August. Stocks tumbled and cryptocurrencies followed, with Bitcoin dropping to $20,000, a support level that has been key throughout the bear market. As we constantly report, the current correlation between stocks and crypto is at an all-time high, so macroeconomics are affecting both markets similarly.
BTC – S&P 500 Correlation (USD Adjusted)

Although the current market environment is not the best, cryptocurrencies enjoyed their share of good news. BlackRock entered the crypto space, with a partnership with Coinbase, allowing their institutional investors access to Bitcoin.1 Blackrock is the world’s largest asset manager, with over $10 trillion dollars under management. Avalanche (AVAX) enjoyed a surge on NFT trading, placing it as a serious competitor to more established NFT networks such as Ethereum and Solana.2 The long awaited Ethereum 2.0 merge was scheduled from September 6th to the 20th, which could be a catalyst for its further growth.3

Ethereum’s merge timeline. Source: Ethereum Foundation

Other major d​evelopments on BLUE assets included:

– Solana-Based automation network Clockwork raised $4M in seed funding.4
– Fireblocks added support for Solana blockchain’s DeFi, NFT, and Gaming Apps.5
– Polkadot parachain Moonbeam integrated cross-chain messaging protocol LayerZero to facilitate Web3 interoperability.6
– BNB Chain introduced liquid staking to provide crypto users access to more income stream.7

Even though the crypto market is struggling, it is worth noticing that the current bear market is on track with the 2018 bear market, and prices might be reaching their bottom. According to arcane research, the “current bitcoin drawdown has lasted for 286 days, and we are currently down 70% from the all-time high. The 2018 and 2014 bear markets lasted for 12-13 months, with maximum drawdowns of 85%.” Markets are cyclical, which is why we remain positive in the medium to long term.

Bitcoin Historical Drowdowns. Source: Arcane Research

BLUE starts September at $204.47 (USDT), a +416.75% gain since its inception.

You may purchase BLUE at bluetoken.io. You may also download the BLUE app on iPhone and Android.

REFERENCES

1- Brush, Silla. “BlackRock Offers Bitcoin Investing to Big Institutional Clients.” Bloomberg, 11/8/2022,

https://www.bloomberg.com/news/articles/2022-08-11/blackrock-offers-bitcoin-investing-to-big-institutional-clients

2- Somraaj, Sujith. “Avalanche Jumps Nearly 15% Amid Surging NFT Volumes.” Decrypt, 8/8/2022,

https://decrypt.co/106941/avalanche-jumps-nearly-15-amid-surging-nft-volumes

3- Nijkerk, Margaux. “The Ethereum Merge Has an Official Kick-Off Date.” Coindesk, 24/8/2022,

https://www.coindesk.com/tech/2022/08/24/ethereum-merge-has-an-official-kick-off-date/

4- Thompson, Cameron. “Solana-Based Automation Network Clockwork Raises $4M in Seed Funding.” Coindesk, 30/8/2022,

https://www.coindesk.com/business/2022/08/30/solana-based-automation-network-clockwork-raises-4m-in-seed-funding/

5- Allison, Ian. “Crypto Custody Technology Firm Fireblocks Adds Support for Solana Blockchain’s DeFi, NFT, Gaming Apps.” Coindesk, 30/8/2022,

https://www.coindesk.com/business/2022/08/30/crypto-custody-firm-fireblocks-adds-support-for-solana-blockchains-defi-nft-gaming-apps/

6- Thompson, Cameron. “Polkadot Parachain Moonbeam Integrates Cross-Chain Messaging Protocol LayerZero.” Coindesk, 29/8/2022,

https://www.coindesk.com/business/2022/08/29/polkadot-parachain-moonbeam-integrates-cross-chain-messaging-protocol-layerzero/

7- Singh, Amitoj. “BNB Chain Introduces Liquid Staking to Provide Crypto Users Access to More Income Streams.” Coindesk, 30/8/2022,

https://www.coindesk.com/business/2022/08/30/bnb-chain-introduces-liquid-staking-to-provide-crypto-users-access-to-additional-income-streams/

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