Amid Crash, This Crypto Soars

Today is Wednesday, July 6, 2022.

New to this newsletter? Sign up here

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

Photo by Zbynek Burival / Unsplash

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

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)

Thank you for reading!

Forward to a friend and tell them to sign up here.

Want more investing tips? Listen to the podcast.

Questions or comments? Hit reply to reach out.