Curious Cryptos’ Commentary 21st September 2023 — Central Banks, AI, & meme coins
tl;dr
Central bankers admit their failings hoping to abrogate their responsibility for setting short-term interest rates. AI meme coins, but not in the way one might imagine.
Market Snap
Market Wrap
With no change in US interest rates (see below) risk assets largely unchanged for the day.
Curious Cryptos’ Commentary — The US Federal Reserve
No change from the Fed in one respect, but a massive change, nonetheless.
Rates were kept on hold. The interesting bit is that the commentary included this statement:
“Tighter credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation. The extent of these effects remains uncertain.”
No-one can doubt the truth of this comment. At last the world’s most important central bank has conceded that it has no competence in determining short-term interest rates.
This is not new news for anyone of a reasonable and sensible disposition. But it does herald the start of the process of stripping the responsibility of setting interest rates away from central banks and handing it back to where it belongs.
The markets will decide, and we will all be much better off as a result.
Curious Cryptos’ Commentary — Now, this is really getting silly
An Ethereum developer has used ChatGPT and Dall-E to create a new memecoin, APX (AstroPepeX):
The full blow by blow account of the process, which is quite interesting but there is no point me simply repeating it, can be found here:
https://twitter.com/CroissantEth/status/1704261552730214581
Once the coin had been created and the contract deployed, ownership was automatically revoked, an important step that is often overlooked.
100% of the coins along with 2 ETH were added to a liquidity pool on Uniswap (https://app.uniswap.org/swap) and off you go. Or, at least, off go the most extreme degens.
Market cap currently sits around $4mm with tens of millions of dollars of trades, with associated fees presumably going to the writer of the AI script, but my coding skills are far too poor to confirm this assumption of mine.
X is full of tales of individuals making tens of ETH by being early adopters, and that is probably true. Anyone getting involved now is simply providing exit liquidity, and that is not a healthy position to be in.
…
The code has been published on github and in no time at all, someone has created UPM (UltraPepeMoon):
As you can see, exit liquidity has already been provided, and gratefully received:
…
Next on the self-imposed list of tasks for the developer is an intuitive UI. Thousands of AI generated coins are coming our way.
Oh dear.
Compliance Stuff
Trigger alert warning.
If any reader feels that they are “literally shaking” (a claim made by a student at Durham University who cannot cope emotionally, and certainly not intellectually, with a different point of view that was expressed by Rod Liddle) after reading my commentary, then I can only suggest you don’t read, or don’t shake. It’s up to you.
Cryptos — none of my commentary should be seen as a recommendation to get involved in cryptos. I might be talking complete nonsense without knowing it. Any crypto investments must be viewed as extremely high risk and treated as if they are worth zero until sold.
Stocks — just to make it clear this is not a stock advisory service. The CCC team does not provide financial advice in any way at all. Any reference to asset prices in this commentary is there to simply give context to the commentary and to give colour to the performance of certain stocks related to cryptos.
For the avoidance of doubt, this newsletter is not an incitement to buy cryptos, buy stocks, or even to sell family members in the hope of buying cryptos or stocks.
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