Here's some basic terminology and concepts to get you started...
+ some pro tips for navigating Crypto Twitter at the end.
π π§΅
1/ Basic Terminology:
β’ Wallet: A wallet is your gateway to crypto. Wallets can store and send crypto, and can connect with and interact with decentralized apps.
β’ Dapps or Decentralized apps - these are apps built on a decentralized blockchain.
2/ Web2 vs Web3
β’ web2: Centralized web (most of the internet): Facebook, Twitter, etc
β’ web3: Decentralized web, apps are built on decentralized blockchains.
Typically, web3 apps will not require an email login, but will just ask you to connect with your wallet.
3/ β’ Fiat: Regular government-issued currency that is not backed by a commodity like Gold. USD, CAD, GBP, EUR, INR, etc are all examples of fiat currency.
Here's the problem with fiat currency right now according to BTC bulls:
4/ β’ Stablecoins: Coins that are pegged to a fiat currency like USD, (or to an asset like Gold).
Some popular stablecoins include $USDC, $USDT, $UST, $DAI, $FRAX
Here's a video I made about stablecoins:
5/ β’ Fungible Tokens: My BTC coins are the same as anyone else's BTC coins. i.e - Cryptos like BTC, ETH, etc are fungible. So are fiat currencies like USD.
β’ Non-Fungible: The Mona Lisa is perfectly unique. It is a one-of-a-kind asset. The Mona Lisa is non-fungible.
6/ β’ NFTs or Non-Fungible Tokens:
They are most commonly used for digital art and collectibles right now, but they can also be used to represent other one-of-a-kind assets like property, ownership rights, identity, memberships, etc.
Typically they use an Automated Market Maker (AMM) to facilitate exchanges
9/ β’ Airdrops:
New crypto projects may send tokens to wallets that have used their dapp when they launch a token.
This is meant to encourage adoption + help with marketing.
Famously, @Uniswap airdrop holders received 400 $UNI tokens which would have been worth ~$18k at ATH.
10/ β’ ATH: All-Time High
β’ CT: Crypto Twitter
β’ Pump: Coin price go up
β’ Dump: Coin price go down
β’ Rekt: Get wrecked (destroyed)
11/ β’ Ape: Invest into a project ASAP (typically without doing DD)
β’ DD: Due Diligence
β’ FUD: Fear, uncertainty & Doubt (bearish)
β’ FOMO: Fear of missing out (bullish)
β’ Bridging: Transferring assets from one chain to another.
12/ β’ Pump & Dump: A scam where a group (on telegram usually) will make coordinated buys on a coin to pump up the price, and then sell it very soon after.
The chart for a pump and dump might look something like this over a very short time frame (a few mins or hours)
13/ β’ Ponzi: A common scam where current investors are paid dividends from new investors only (with no plan or path for long term sustainability) en.wikipedia.org/wiki/Ponzi_schβ¦
14/ β’ Shill: Shillers will try to promote a coin by spamming about it all over crypto twitter. Typically, this is either because they were paid to do so, or because they are trying to pump their own bags.
15/ β’ Phishing: Hackers may try to "phish" sensitive information from you by sending you fake links that look like real links.
16/ β’ Maxi: A Bitcoin Maximalist or Maxi believes that Bitcoin is the only cryptocurrency worth holding, and that everything else is a scam or shitcoin.
You'll find maxis for other altcoins as well.
17/ β’ TA (Technical Analysis): Analysis based on looking at chart patterns, technical indicators, support and resistance levels, moving averages, etc.
18/ β’ FA (Fundamental Analysis): Analysis based on the fundamentals of a project such as use cases, adoption & growth, protocol revenue, tokenomics, supply & demand drivers, etc.
19/ β’ Miners / Validators: They sign the transaction and verify that it is correct.
β’ Consensus Mechanism: The mechanism by which all miners or validators come to an agreement about the state of the network.
Different blockchains may use different consensus mechanisms.
20/ β’ Proof-of-Work (PoW): The consensus mechanism used by the Bitcoin blockchain (and some others) to come to an agreement.
In this, miners compete to solve a complicated math problem to verify the block, and win the block reward.
21/ β’ Proof-of-Stake (PoS): A consensus mechanism used by many other blockchains, where a validator must "stake" some of their own crypto in order to incentivize them to validate transactions correctly.
Good validator = interest on crypto π°
Bad validator = crypto slashed π‘οΈ
27/ Here are some DeFi concepts we want to write an overview of and expand on in future threads:
β’ L0 / L1 / L2
β’ Interoperability
β’ Bridges (π§΅)
β’ Yield Farming (π§΅)
β’ Nodes
β’ Launchpads
β’ Different types of stablecoins (π§΅)
β’ DeFi 2.0
β’ FaaS
β’ Boosting
...
28/ Pro Tips for CT: Now that you're a pro user, try this
β’ Search "from:@momentum_6 min_retweets:50" in the twitter search bar.
You can do this to find popular posts by a creator.
A 𧡠about @parallelfi, one of @polkadot's fastest-growing #parachain. Parallel Finance is a decentralized money market protocol that offers lending, borrowing, and liquid staking for any asset in the Polkadot ecosystem.
1/ "Parachains connect to Polkadot by leasing a slot on the Relay Chain for up to 96 weeks at a time, with the option to renew. Parachain slots are assigned by an on-chain auction, with auction winners locking up a bond in DOT for the duration of the lease."
- Polkadot's Website
2/ Crowdloan participants can be subject to opportunity costs when participating in crowdloans - their staked tokens are locked for the duration of the parachain lease period. Parallel solves this by offering liquid versions of tokens staked to crowdloans and network validators.
We continue to build momentum for our portfolio companies through our mΒ² program. Check out all the connections made last week below!
1/ Are you looking to grow your project? Be sure to join M6βs 1 Line Intros Telegram channel so that you too can make valuable business connections! Join here: t.me/m6connect!
1/ The following are some of the problems with Web 3:
β’ Traders must manually check trade or liquidation status
β’ Token holders aren't alerted of upcoming governance proposals
β’ Lottery winners and ENS expiration are usually found out with a Tweet
Enter EPNS...
2/ The Ethereum Push Notification Service (EPNS), built on Ethereum, has been dubbed the communication layer for Web 3.0. EPNS solves both notification and communication problems.
A 𧡠about @Momentum_6 portfolio company @MetisDAO, a #Layer2 Ethereum Rollup scaling solution building a highly scalable protocol for next-generation decentralized apps.
1/ The Metis team wants to make the creation of Decentralized Autonomous Companies (DACs) and decentralized apps (dApps) on its platform straightforward and easy for blockchain novices. MetisDAO adopts the Optimistic Rollup framework to address these challenges.
2/ How Metis addresses the Organizational Gap: There are a lot of meaningful infrastructure features that differentiate Metis from other L2s. However, the two primary value propositions are centered around the DAC framework and Polis products.