Freeway Friday Update — 12 August 2022

Sadie Hutton

Published in

Freeway

10 min readAug 12, 2022

Click to hear from Sadie and get all the latest from Freeway world.

In this week’s edition of the Freeway Weekly Update, you get news of changes in the sentiment of the crypto market, Freeway’s growth stats, the Charity Supercharger, and much more.

Hey #FreewayFam,

A new hope: Has crypto “found a floor”?

It’s been a complicated few months for crypto.

The crypto winter has been long and cold.

Despite that, through it all, Freeway has continued to thrive.

But it seems like the markets are predicting good news for everyone, as there is a new hope spreading that crypto may have finally bottomed out.

Voices are whispering that crypto may be close to bouncing back.

Even an analyst at JP Morgan said this week that crypto markets appear to have “found a floor”.

Only time will tell!

Freeway’s Latest Growth Stats

Yet again, Freeway’s numbers keep growing steadily. We now have users in 159 Countries worldwide, and the total of Supercharger simulations is over $164 million.

Total Freeway users worldwide = 25,001
Total of Supercharger simulations = $164,264,114.41
Supercharger buy orders = $2,021,098
Supercharger sell orders = $1,162,651
Freeway Tokens staked = 6,132,665,090
% of FWT circulating supply on Freeway = 87.82%

Charity Supercharger

Back in December, we asked the Freeway Fam to tell us what charities were closest to their hearts.

We earmarked $140,000 in the USD Supercharger Simulation for a Charity Supercharger.

Allowing for rewards earned, that Supercharger balance is now just shy of

$172,000.

As a result, we will now start to make the first round of donations to the charities and causes nominated by the Freeway Fam at the beginning of the year.

The FreewayFam will be able to participate in the Charity Supercharger on an ongoing basis in 2 ways:

Freeway Token stakers will be able to vote for the charities and social good initiatives they want to see supported using a simple voting mechanism on the platform.
And secondly, we’re working on the legal and regulatory structures required to allow users to support the Charity Supercharger directly.

We’ll be updating you in the coming weeks on how that will become possible.

The nominations for the second round of donations will kick off next week with the Freeway Fam being able to nominate new charities and causes on our Twitter using the hashtag #FreewayCharitySupercharger.

We will then move to voting for Freeway Token stakers — some t’s and c’s will apply and Freeway will have the final say on the recipients for legal reasons — but we’ll start to make donations as soon as possible after the votes are in.

Freeway’s Pitch-side LED Banners

Our pitch-side LED banners were back in action this week.

Freeway lit up some new rugby league fixtures live on Sky Sports, including:

The WARRINGTON WOLVES v TOULOUSE
HULL KINGSTON ROVERS v LEEDS RHINOS

Nothing can tackle Freeway on the way to the finish line: Access For All.

Don’t forget there is a new competition upcoming for a chance to win VIP tickets to the Rugby League World Cup Final on November 19th at Old Trafford.

Guerrilla of the Week: Frantastic

TG: @Frantastic_j

Coming up to the 6 month anniversary of joining the FreewayFam on socials, it is more than fitting that Frantastic receives the recognition that’s well deserved for being such a valued member of the community!

Always the inquisitive mind, she is often engaging in clever discussions within the community both new and old. Thank you for being so engaged and keeping the Freeway chatter going! We appreciate you and value both your constructive and supportive conversations within the community.

Congratulations Ms Frantastic, you are this week’s GOTW!

Agent Alpha on: Can Financial Conditions Keep On Loosening?

Agent Alpha’s statements are solely his own opinions and market commentary, are for entertainment, and are neither endorsed by, nor represent the views of Freeway. You should always do your own research and seek independent expert financial advice.

Can financial conditions keep on loosening? You ‘betcha’ they can, and at an accelerating pace, too.

To close out the week I am going to sum up the current state of play out there as ‘consolidation time’ — that I doubt lasts too long before the next melt-up move materialises for global risk assets.

There is a caveat question, though, we have to ask ourselves to state the obvious and that is ‘are there any bears left out there?’ Considering how aggressive the July rally in markets — following through into early August — has been, Nasdaq, for example, technically, is now in a BULL market > 20% from lows printed only 2 months ago.

Well? It seems we’re sort of in a neutral(ish) area on that point now re: bearish sentiment readings — check out the BEAR index below — so a short answer to that caveat, then, is, yes, there is still lots to play for re: BULLISH crowd, just psychologically speaking.

What about technically? Well on that point we’re now smack bang in the middle of the consolidation zone and investors need to keep an eye on two big index levels in the S&P index for reference as to which way risk, in general, is going to break. 4100 (white arrow) as massive support line & 4300 (red arrow) as pretty significant resistance.

I have included in this chart (for regular ‘Alpha’ readers reference) the longer-term head & shoulders bearish setup line in place since Sept 21’ — which is the slopping white diagonal line, as risk is now > than that neckline aka POSITIVE — and, should the risk tone really break out higher (as I expect), watch for the right shoulder takeout area of c. > 4600 (green arrow). Technically speaking, the overall market bearish setup hasn’t been broken until and unless that goes.

Now, at this point, there are a couple of charts I want to highlight.

First:

The reason risk has been so briskly embraced over the last few weeks is because ‘Financial Conditions’ have loosened considerably throughout July, as the market is jumping ahead of the FED re: pivot logic (regular Alpha readers will be well versed in my view on this) and the market is now increasingly paying less and less attention to FED speakers these days who keep on trying to push their hawkish messaging as the inflation picture is now already rolling lower (CPI and PPI this week) with consensus gravitating rapidly towards a terminal rate that the FED will reach in this hiking cycle FAR LOWER than practically EVERYONE in the investment community (all those experts?!?!) has been screaming blue murder the FED would reach.

Another way of putting it, aside from the experts on the Street knowing VERY little (but what’s new there, folks, hey!) is that the hawkish messaging by the FED can be put in the same ‘box’ as the transitory messaging was pre-Nov 21’. The market walked away from listening to that transitory messaging from Powell et al., MONTHS before they actually completely changed their tune to pivot hawkishly back then.

So to point: Below is the obvious relation between financial conditions and the ‘market’ (S&P) & the next question therefore is: will financial conditions continue to loosen? Because, if they do? That’s the $$$$$$$$$ question!

And so… to my second chart:

Well, one thing I find very interesting and — loosely indicative of that financial conditions continuing to loosen question — is the Global M Supply picture, because this being ‘Global’, it encapsulates the entire picture — myopic markets (US) often forget this backdrop — and this GLOBAL M SUPPLY has popped back over the $100 Trillion handle.

I have compared the S&P index (Global risk proxy) [orange line] vs. Global M Supply (which is aka velocity of activity, to think of it in another way, liquidity sloshing throughout the system looking for a ‘home’ to park in) [white line].

And whilst the correlation is self-explanatory, THE POINT HERE IS THAT we must ask ourselves a blindingly obvious question, and that is: when we consider how far down the tightening monetary cycle(s) markets already are currently — and I would say reasonably far now….hence the pivot consensus and ignoring FED messaging already point I keep on making — Global M supply has merely ONLY come off from all-time historical highs by what? C. < $4Trillion from its all-time peak back at the start of this year? And, therefore, the fact it is ALREADY PICKING BACK UP before the pivot from the FED has been confirmed. Join those dots…

What are those dots? Well, how much higher is this M supply line going to rise? And the answer is VASTLY higher and what does that mean for risk correlation? VASTLY higher too.

I suppose what I am trying to say here is keep it simple (always best). Liquidity is ‘it’ re: financial assets pricing and the GLOBAL picture is basically turning the taps back on already.

I am going to very simplistically sum up the World outlook on this liquidity point breaking it down regionally, and say this…

Europe: The ECB is desperately trying to keep sovereign spreads in check which means liquidity pumping.
In the UK BOE, we have already had members this week talking about rate cuts (Ramsden) and MORE QE as plausible in the future & I would add that the forthcoming most likely new PM Liz Truss will look to change the BOE mandate to nominal GDP targeting rather than inflation and that the UK will NOT be the only one doing that — growth at ALL costs, in other words.
Japan: Well, enough said… I think we all know QE infinity is exactly what it says on the tin, it is never-ending.
China: It is not plausible that the Chinese will not continue to desperately stabilise their economy with ongoing liquidity.
US: Well I have droned on about the PIVOT and the market is moving to that in real-time.

Does that make sense? I hope so.

We have blasted higher in risk as financial conditions have loosened. They have loosened because the market is way ahead of the FED once again, paying scant attention anymore to the hawkish messaging that the FED will continue to parrot for a few more months. Markets are paying scant attention because the inflation beast has already been ‘slain’ (it will become very clear that it has in months ahead — and remember markets always price c. 6–9 months into the future). And if the FED continues — as it says it will — policy error on a monumental scale will incur, which just ain’t gonna happen, folks!

Financial conditions loosening is NOT just US-based, it is GLOBAL — break that down regionally from the main players — and we can reasonably extrapolate said conditions will continue to ease and most likely at an accelerating pace.

Funds need to park somewhere, and risk assets are ‘it’!

Until next week,

Alpha

Tuesday’s AMA on Telegram

Once a week, usually on a Tuesday at 6pm UTC, Freeway holds an internal AMA in the Freeway Telegram channel that gives the community a chance to ask direct questions with core team members.

You can find the transcript or recording from last Wednesday’s AMA session here.

Click below to join the official Freeway Telegram group.

If you’d like to participate in the next AMA on Tuesday at 6pm UTC, where you can ask Graham anything, join the Freeway Official Telegram group here.

As always, we love hearing from you, so please join us on Telegram, follow us on socials, and if you want to hear from us and you want to hear it first, sign up for the newsletter.

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Until next week,

Sadie Hutton

Co-Founder and CEO

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