DeFi DeBrief #24: All eyes on The Fed 👀

TL;DR:

• Rates rise by 0.25%
• Car titles coming to Tezos
• NFTs swept up by Amazon

Onwards 👇

Interest rates slow down once more 😅

This newsletter cycles back to the same subject every four weeks.

That’s because The Fed’s actions are seen as a key indicator for investor sentiment, and slowing interest rate rises could mean more positive signs ahead.

Last month, there were suggestions that the January rate hike would be just 0.25%. And it seems investor wishes have come true as Jerome Powell stuck to his guns and decided now’s the time to apply the brakes.

But we’re not out of the woods just yet.

Why should you care?

High interest rates make risky assets less attractive.

But with rate hikes easing, we could soon see interest rates start to drop back down to friendlier levels.

That said — there’s ongoing concern about a looming recession, which could hurt investor confidence just as much as interest rate hikes. So while The Fed’s change in stance is a first step towards renewed investor confidence.

There are many other factors at play, and it’s going to take a few months yet to understand the state of the economy.

California DMV gives Tezos the green light 🚦

The California DMV is testing the digitization of car titles in partnership with Tezos blockchain and Oxhead Alpha. The team announced a successful proof-of-concept on January 25th. 

The DMV aims to complete its blockchain ledger within three months before introducing a digital wallet that lets users hold and transfer car titles as NFTs, all with the DMV as the mediator.

IN THE HEADLINES

Amazon springs into NFTs 😎

Amazon just announced the launch of its first NFT initiative this spring. However, details on what the project will involve are scant. All we know is that the ‘everything store’ has been partnering with industry power players.

Speculation is rife that the internet behemoth will focus on blockchain gaming and NFT-based applications.

Five short reads catching our eye this week:

1. How Kevin Rose was hacked for 1,000 ETH
2. Binance launching prepaid crypto card in Brazil
3. NFTs arrive on Bitcoin (and not everyone’s happy)
4. Airlines, charities, tech: a list of all FTX’s victims
5. Crypto payments could be coming to Twitter

TEMPERATURE CHECK 🔥

• BTC: $23,007.55 (1.34%, 7 days)
• ETH: $1,572.23 (1.19%, 7 days)
• TVL in DeFi: $47.52bn (1.78%, 7 days)
• Fear & Greed: 56 (greed)

*Data last updated at 08:00 on 1st February.

TWEET CHECK 🐦

Thesis: a company should serve its shareholders
Antithesis: a company should serve its community
Synthesis: the community should be the shareholders

— Balaji (@balajis) January 31, 2023

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