Amid Crash, This Crypto Soars
Plus, oil drops below $100.
Today is Wednesday, July 6, 2022.
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Amid Crash, This Crypto Soars
The price of the cryptocurrency exchange Uniswap went up 5% on Tuesday, completing a week of positive growth for the digital currency.
Background: Founded in 2018, Uniswap is a decentralized network protocol. Trading on the exchange is automated and completely open-source.
Recent Development: In late June, Uniswap acquired NFT (non-fungible token) marketplace Genie, which helps the protocol stand out in a crowded market.
Numbers: The price of Uniswap peaked in 2021, similar to most cryptocurrencies. The difference is that the price of Uniswap has stabilized and is up a little bit in the past week. Compare that to Bitcoin, which is down by 33% in the past month. Uniswap has jumped, whereas other cryptos continue to fall.
Final Thoughts: Last month, Uniswap overtook Ethereum in terms of generating more user fees, according to Bloomberg. The digital asset still has its concerns.
Notable Earnings Today: Saratoga Investment (NYSE: SAR), Simulations Plus (Nasdaq: SLP), Aeon (OTCMKTS: AONNY).
Notable IPOs Today: N/A.
Notable Equity Crowdfunding Campaigns Ending Today: Deep Sea Vegan (MainVest), Eastcoasterdam Gardens (MainVest), HiveSkill (Netcapital), Arowana Media Holdings (Netcapital).
Notable Economic Events Today: S&P Global Composite PMI (9:45 a.m. ET), Services PMI (9:45 a.m. ET), ISM Non-Manufacturing PMI (10:00 a.m. ET), JOLTs Job Openings (10:00 a.m. ET), ISM Non-Manufacturing Employment (10:00 a.m. ET), FOMC Meeting Minutes (2:00 p.m. ET), API Weekly Crude Oil Stock (4:30 p.m. ET).
Oil Drops Below $100, Hurting Energy Stocks
The price of oil dropped below $100 per barrel on Tuesday, the first time it hit that level since May.
Details: West Texas Intermediate crude dropped 10% on Tuesday, which started at around $110 per barrel. It’s one of the largest one-day drops in 2022.
The Problem: Fears of a potential recession have spooked the energy sector. In addition to the current price of oil dropping, oil futures also declined on Tuesday.
Stocks: The sudden drop in oil crushed several energy stocks on Tuesday. Marathon Oil (NYSE: MRO) dropped 6.30%, ConocoPhillips (NYSE: COP) fell 6.93%, and Halliburton (NYSE: HAL) declined by 8.08%.
Final Thoughts: Energy stocks will suffer if there is a recession, especially if you think that oil prices have already peaked. Energy has been the best-performing stocks sector so far in 2022.
Equity Crowdfunding Spotlight: ModVans
Briefly describe your business. ModVans designs and manufactures high-tech, multipurpose vehicles with camping features and sells direct to consumers via our website. We currently offer 6 vehicle models and have exciting plans for a fully electric RV.
What are the terms of the investment for your campaign? ModVans is selling stock: $31/share at $74.2M valuation. For the first $300K "Early Bird" investors, $29/share at $69.4M valuation. More info can be found at StartEngine.
What makes your startup special? Why will it succeed? Over the last 4 years, ModVans has successfully delivered over 100 vehicles to happy customers all over the US. We have grown production and revenue every year, have over $10m in lifetime revenue, and are on track to hit $10m in revenue for 2022.
Trends to Watch
Still Behind Squid Game: Stranger Things 4 just became the second Netflix show to hit 1 billion hours viewed (The Verge)
Not Checking Out: In a worrisome sign for e-commerce, Kornit Digital slashes forecast and stock plunges 20% (MarketWatch)
Haven’t Seen This in 20 Years: Strong U.S. Dollar Sends Euro, Yen to More Than Decade Lows (The Wall Street Journal)
They Got Lucky: How Wall Street Escaped the Crypto Meltdown (The New York Times)
Not a Time to Celebrate: Andy Jassy just wrapped up a rocky first year after succeeding Bezos as Amazon CEO (CNBC)
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