Do the Cool Cats still have Blue Chip status? The collection fell on hard times lately, but so has any other NFT project out there. We’re in a bear market, after all. A Hollywood agency manages the Cool Cats project, they had the coolest exhibit in NFT NYC, and collaborated with TIME magazine in a weird NFT drop. Still, the collection’s floor price is down to levels not seen since the project’s conception.

The Cool Cats started spreading good vibes in July 2021. It’s a PFP collection consisting of 9.999 unique cats assembled from various traits that could form 300K possibilities in total. The ecosystem expanded in two major ways a while ago. They launched their secondary collection, the Cool Pets, and their own token, $MILK. The new coin is the blood that powers the gamified experience that the collection’s creators have been releasing.

pic.twitter.com/GcpXtb5Vt8

— Mike Tyson (@MikeTyson) July 9, 2021

Speaking about those, the core team are: the smart contract programmer Tom Williamson, web developer Rob Mehew, creative director Evan Luza, and illustrator Colin Egan AKA The Cartoonist. The unofficial fifth member of the band is Mike Tyson. A few days after launch, the eternal heavyweight champion changed his Twitter profile picture to a Cool Cats and that propelled the collection when it needed it the most. 

The Relationship Between Cool Cats And CAA

The Cool Cats went Hollywood on March 2021. In a move unprecedented at the time, the creators signed with leading talent agency CAA. In a press release from the time, the partners explained the deal in detail:

“Leading entertainment and sports agency Creative Artists Agency (CAA) has signed Cool Cats, producers of the widely known Cool Cats and Cool Pets NFT collections. In collaboration with the gamified NFT company, the agency will identify and create opportunities for Cool Cats characters across an array of areas, including licensing and merchandising, animated content, brand partnerships, live events, publishing, and more.”

So, there’s serious money and interests behind the cats. Why are they fading away into the background, then? Is it just an effect of the bear market? 

ETH price chart for 09/24/2022 on OkCoin | Source: ETH/USD on TradingView.com

Cool Cats ’ got utility

First of all, Cool Cats holders get their NFT’s property rights. That means, they can produce commercial projects with their NFT’s images. Cool Cat owners also get access to the project’s Discord server, and priority for all of the exclusive Cool Cats events and mints. Holders can stack their  NFTs and get yield in $MILK.

Another benefit is access to Cooltopia, a project they define as “a gamified ecosystem built on interactivity and utility, community rewards and growth, collaboration with brands, and much more.” Another self-definition has Cooltopia as a “place where having a Cool Cats NFT grants you evolving access to games, tokens, community events, collaborations, and more.” 

Plus, there’s the Cool Pets side project. A reward to NFT holders and a way for newcomers to enter the ecosystem at a lower price point. The Cool Pets collection has 19,999 units. Every holder got a pet for free and the general public bought the other half. The Cool Pets first come as an egg image that hatches and reveals the final NFT. The pets are divided into four elements: Fire, Water, Air, and Grass.

The $MILK token

The $MILK is an ERC20 token on the Ethereum and Polygon blockchains. It’s the oil that greases Cooltopia’s gamified economy. According to the documentation:

• “$MILK is the key to all sorts of functionality and fun in the Cool Cats ecosystem, from buying Battle or Housing chests to going on quests.” 
• “$MILK is also how you’ll enhance and evolve your Cool Pets.”
• This one describes the NFTs staking-like mechanism: “Your Cool Cat is earning $MILK just by being cool (the $MILK claiming clock begins as soon as the contract is deployed), and that $MILK will accumulate over time.”

Controversy And Suspicion

There might be something strange going on with this project. In April, the newly-appointed CEO stepped down after just three months. There was never a credible explanation given. The collection just tweeted, “Chris Hassett has stepped down as CEO. We thank him and wish him the best moving forward.” Is there problem brewing in the Cool Cats headquarters? 

And then there’s the price. At its height, in October 2021, the Cool Cats floor price was around 26 ETH. Almost a year later, the floor Cool Cats are trading for 2.9 ETH. That’s not all, the Cool Pets’ floor price is currently at  0.18 ETH. Are those Blue Chip numbers? Even though we’re basically in the middle of a crypto winter, the collection seems to be falling off a cliff… 

Will the Cool Cats land on their feet?

Featured Image: screen shot from the collection's site | Charts by TradingView

Bitcoin ETPs have been experiencing some immense outflows. These have not come as a surprise though given that the price of the digital asset had crumbled last week. It has followed the price of bitcoin falling below $40,000 once again, leading to bearish sentiment among investors. This in turn has put immense selling pressures on other investors who have gained exposure to the market using trading investment vehicles such as ETPs.

Outflows Rock Bitcoin ETPs

Before this month, Bitcoin ETPs had enjoyed a prosperous month of inflows as faith was renewed in the digital asset following its campaign above $40,000. It was the strongest month in the history of these ETPs since October last year with more than 10,000 BTC in inflow recorded. 

However, the month of April would prove to be the complete opposite as outflows so far for the month have been almost as high as inflows for the month of March and the month is not even over yet. This constitutes one of the largest outflows recorded for any month since the inception of Bitcoin ETPs. The last being in July 2021 when outflows had touched 13,849 BTC,

Related Reading | How Bitcoin Futures Premiums Exhibit Signs Of Market Exhaustion

April has been following this trend hard with more than 9,871 BTC and counting so far. Although a reversal of this trend could very well take place in the remaining days of the month. This is the second-largest outflow ever recorded and the direct effect of this has been the increased sell pressure on investors.

ETPs outlfows second-largest in history | Source: Arcane Research

Nevertheless, this is not as bad of a bearish signal as some might be led to believe. A look at the July 2021 outflows shows that it coincided with the peak of the summer sell-offs, which was promptly followed by a recovery in the price of the digital asset. 

If this is the case, then this might mark the sell-offs that have been rocking the market in recent times. A bounce back from a point like this would likely put bitcoin on a path towards $55,000.

BTC On The Charts

For the better part of last week, the price of bitcoin had nested in the $40,000 support. It had eventually lost hold of this point and slid down to the $39,000 level. This would prove to be short-lived, however, as the midweek trading activities had brought the digital asset back up to $42,000.

BTC starts another recovery trend | Source: BTCUSD on TradingView.com

Even though the asset is doing well at this point, it is a long way from $45,000 where bears are mounting some of the strongest resistance ever seen in the market. This key resistance level had been the undoing of bitcoin in the past week.

Related Reading | Halfway To The Halving: What This Means For Bitcoin

The cryptocurrency has now moved to trade above the 50-day moving average, marking a bullish trend for the short term. A translation to a bullish trend for the long-term would see the digital asset bear the key resistance area of $45,000 and traveling all the way to $48,000. Below this point, BTC continues to stand on shaky ground.

Featured image from Medium, charts from Arcane Research and TradingView.com

Dogecoin is out of the dog house: Spikes to 9% with Elon Musk acquiring a 9.2% stake in Twitter

Elon Musk, Chief of Tesla, has taken a 9.2% stake in social media company Twitter (TWTR), according to a regulatory filing yesterday.  According to the filing, Musk purchased 73,486,938 of common stock in the social media company. Based on Twitter’s last closing price of US$39.31, the stake would be worth US$2.89 billion. The filing lifted Twitter and Dogecoin higher in the stock market

Musk also suggested launching a new social media website that would be fueled by his favorite cryptocurrency– Dogecoin.

 

Musk’s Stirred Up Controversy in the Past via Twitter

In January Elon Musk mentioned that his company will accept dogecoin as payment for merchandise on a test basis, sending the meme-based cryptocurrency up over 20 percent.

“Tesla will make some merch buyable with Doge & see how it goes,” Musk said in a tweet. According to a report in Reuters, Dogecoin, popular among retail investors, raced up to US$0.20 after the tweet.

Elon Musk, chief executive officer of Tesla Inc. and a supporter of cryptocurrency, said on Thursday that he has not and will not sell any of his dogecoin holdings.

Earlier in March, during his guest-host spot on the ‘Saturday Night Live’ comedy sketch TV show, he called the cryptocurrency a “hustle”, leading prices to tumble. “Yeah, I haven’t & won’t sell any Doge,” Musk said on Twitter in response to a tweet on Thursday claiming he would never sell any of his doge holdings and that he was the “ultimate holder”.

At the end of March, Musk again tweeted that he is giving “serious thought” to building a new social media platform, a day after he put out a poll on Twitter asking users if they believe the social media giant adhered to the principle of free speech. When a follower suggested that Musk buy the company (Twitter) and change the logo from a bird to a Dogecoin, Musk indicated that he likes the idea.

 

Manipulating the Price of Dogecoin 

Musk has posted numerous comments about cryptocurrencies on Twitter, causing prices to gyrate and all these instances show how the price of Dogecoin is manipulated by Musk’s single move. This is nothing but dancing to Musk’s tune. Musk is no stranger to sending both traditional and crypto markets into a tizzy with his tweets. His previous comments have sent prices of several meme coins and bitcoin (BTC) skywards.

While it’s completely speculative whether Musk tries to flex his newly acquired shareholder muscle on Twitter developers to adopt DOGE as the official crypto of Twitter, it’s not beyond the realm of possibility. The billionaire has been a long-time, ardent supporter of DOGE as a legitimate, and preferred form of cryptocurrency payment. 

 

Wrapping Up 

Dogecoin is already accepted by many companies as a form of payment. Besides Tesla, Petco, Nordstrom, and GameStop are all accepting Dogecoin. Also, it is currently insufficient to trigger substantial gains in cryptocurrency.

Dubbed as the ‘internet’s tipping currency’, if Elon Musk can influence through Twitter by adding Dogecoin as one of the tipping options it may create another bullish wave for the meme coin.

What’s the bottom line? Does Musk want to take over Twitter? What is his plan with Dogecoin? Despite the re-hype over Dogecoin the path for the cryptocurrency is still unclear. When firm, bullish spikes take place in the market they tend to follow by some retracement.

 

Disclaimer: The information posted in the article is for educational purposes only. By using this, you agree that the information does not constitute any investment or financial advice. Do conduct your own research and reach out to financial advisors before making any investment decisions.

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