In today’s briefing:
- Crypto Biweekly – After UST, Is USDT Next to Fall?
- Long Intel/Short AMD; Analysis of Technical Publications Suggests TSMC Will Play a Critical Role
- Eastside distilling part 2: review Q1 results
- Sporting Crypto – May 23rd 2022: Enter Bear Market
Crypto Biweekly – After UST, Is USDT Next to Fall?
- The collapse of UST/LUNA wiped out nearly USD50bn of market capitalization last week due to a poorly structured stable-coin design and threw the crypto markets into chaos
- A potentially bigger risk looms on the horizon as USDT’s collateral is questioned as market test its ability to meet redemption requests
- USDT is a USD70bn stablecoin, 5x as large as UST, and underpins the entire crypto infrastructure. This is the critical space to watch for the future of crypto.
Long Intel/Short AMD; Analysis of Technical Publications Suggests TSMC Will Play a Critical Role
- Relative underperformance of Intel Corp (INTC US) versus Advanced Micro Devices (AMD US) over the last decade should reverse. We discuss what it would take in the note.
- Intel leads in number and quality of innovations versus AMD in core areas of Design and Manufacturing, but AMD’s use of TSMC has been a huge part of AMD’s outperformance
- If Intel adapts to new realities and uses TSMC (2330 TT) for next-gen products, outperformance versus AMD is highly likely otherwise given TSMC’s very significant lead in manufacturing very doubtful.
Eastside distilling part 2: review Q1 results
- I believe EAST might be a 0, or basically 0, before the end of this year and equity holders (as well as preferred equity holders) are going to be wiped out.
- Here is my analysis of the latest results. Please note that this is after my 3rd (but not last) whiskey shot so there is a chance this will just be a stream of disorganized consciousness
- EAST has $2.6 million of cash as of March 31st, but that is after raising $2 million of working capital financing during the quarter offset by paying off $900K of the Live Oak debt facility.
Sporting Crypto – May 23rd 2022: Enter Bear Market
- In 2017 – 2018, the speculation we saw in crypto was pretty mad.
- If you thought this was bad, 4-5 years ago people were putting literally anything on a blockchain, launching an initial coin offering (ICO) and basically going into nothingness after they run out of money.
- And there was a lot of retail money there. There were a lot of people essentially gambling on the next big thing.
Before it’s here, it’s on Smartkarma
