OVERVIEW
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Hey 👋 

Its time to recap WTF happened in May and what we can expect from June.

Here’s what we have for you today:

• PayPal Dips its fingers in Solana

• Crypto Becoming a Political Tool

• May Market Mayhem

• June Expectations

MARKET NEWS

Why PayPal’s $PYUSD on Solana Is Important

Step aside, Ethereum, Solana has hit the center stage!

The crypto narrative continues to grow and it seems like more institutions are expanding into the crypto space spreading their influence across various blockchains

PayPal’s stablecoin $PYUSD, which launched on Ethereum nearly a year ago, has now landed on Solana.

That’s a big deal for Solana users but also the rest of the crypto space.

Paypal’s large userbase, will now be able to access to the crypto space through Solana.

Why’d they choose Solana? Well, this is why, straight from the horse’s mouth 👇️ 

And its not just PayPal!

• Stripe: Their new checkout option allows $USDC payments on Solana across 1.3+ million websites, making everyday purchases easier.

• Visa: Expanded stablecoin settlement capabilities on Solana, now handling over 5,000 transactions per second.

POLITICAL NEWS

Crypto in Politics — A Match Made in Hell?

Picture this, Donald Trump at the Libertarian National Convention in D.C., pledging his support for cryptocurrency like it's the next season of "The Apprentice."

And he didn’t stop there. He declared:

Now, what’s the big fuss about CBDCs (Central Bank Digital Currencies)? Think of them as the digital lovechild of your country’s currency, only controlled by the central bank.

Sounds innocent, right? Wrong.

Privacy Concerns: Imagine Big Brother watching your every purchase. CBDCs could let the government track every penny you spend, turning your financial life into a "Black Mirror" episode.

Single Points of Failure: Unlike the many-headed hydra that is Bitcoin, CBDCs are centralized. Hack a few servers, and boom! You control the nation’s money.

Data Breaches: Combining CBDCs with Google Pay and Apple Pay is like putting all your digital eggs in one basket. One crack, and hackers have access to your identity and wallet.

Unstable Monetary Policies: Central banks could inflate CBDCs supply overnight. Remember Venezuela’s hyperinflation? CBDCs could lead us down that rabbit hole.

Financial Discrimination: Governments could freeze assets and enforce policies without banks as buffers. Criticize the ruling party? They could shut you out of the financial system faster than you can say "cancel culture."

Destabilization of Financial Institutions: CBDCs might replace private banks, triggering bank runs and economic mayhem.

In short, while cryptocurrencies promise freedom and security, CBDCs could turn your financial life into an Orwellian nightmare.

So, why should we worry about politicians courting the crypto crowd?

Granted, nobody wants to be shackled by an authoritarian regime. But Trump’s crypto cheerleading might invite more politicians to pander to the crypto world. Cue the lobbyists.

Remember Sam Bankman-Fried (SBF)? He spent over a billion dollars lobbying both Democrats and Republicans to push regulations that sidelined competitors like Binance and KuCoin.

We all know how well that turned out.

Inviting politics into crypto can:

• Increase Market Volatility – Imagine the chaos when politicians weigh in on crypto.

• Introduce Unnecessary Regulations – More red tape than a Marvel movie marathon.

• Restrict Monetary Sovereignty – Say goodbye to financial freedom.

• Slow Down Innovation – Bureaucracy is the enemy of progress.

• Restrict Global Trade – Turning borderless transactions into a nightmare.

The age-old saying goes: How do you know a politician is lying?

Their lips are moving.

So, let’s be cautious of politicians bearing gifts. We might end up with more than we bargained for.

MONTH IN REVIEW

Sell In May And Walk Away!

May lived up to its reputation as a bearish month. No shocker there, right? The markets trended lower as expected.

The FED kept interest rates steady at 5.5%, tightening monetary policy and making life tough for risk-on assets. Investors shifted their money into safer havens like gold, bonds, and treasuries to dodge future tightening.

But it wasn’t all doom and gloom. Some macro events sparked rallies in risk-on assets. The big one? The Ethereum ETF approval. This news sent many crypto assets soaring, especially Layer 2 scaling solutions like Arbitrum, which we covered in the last newsletter (link below).

LOOKING AHEAD

What to Expect In June

June is about to serve us a financial feast! Here’s the scoop:

• Monetary Policy Updates: The Fed is keeping rates at 5.5%, like a TV show stuck in reruns until inflation behaves. Jerome Powell is playing it cool, saying rate hikes are still possible if the numbers don’t start looking better​
  

• Interest Rate Hikes: Imagine the Fed as the DJ at a summer party, deciding whether to turn up the volume. No hikes now, but they're ready to crank it up if inflation keeps dancing out of line.
  

• Seasonal Trends: Summer is here, and just like everyone’s buzzing about the new "Spider-Man" movie, markets usually get a boost as people splurge on vacations and BBQs. Historically, it’s a hot time for risk-on assets.

Get ready for a June packed with strategic moves and financial fireworks 🎆 

FEEDBACK

We hope you enjoyed today’s newsletter! As we navigate through the evolving landscape of cryptocurrency, your insights and preferences are invaluable to us.

Excited about PayPal’s move to Solana? Curious about the impact of politics on crypto? We’d love to hear your thoughts!

Let us know what topics you'd like us to cover, or if you’d like us to dive deeper into your favorite altcoins.

Your feedback helps us tailor our content to better serve your needs. Don’t hesitate to leave a comment or drop us a message. Happy investing!