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Data Dependent
Issue #73
NEWS!
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We Called It!
Geo Group-GEO (Donny English): we entered between $13.80 and $14.30 (12 - 15% spot return in <2 weeks)
TON (Daniel4) - Entry at $3.70 given, ran above $7.00!!
FAKEAI (Crypto Fox)—Last week, we filled FAKEAI bids in the TG at 0.016712 and 0.0185 (twice the lower level) to get an average entry at 0.017308. This position ran up to a local high at 0.0239, for a total of 38% unleveraged profit potential.
Macro Markets
CPI
The Consumer Price Index report for March 2024 is expected to show that overall inflation ticked up last month, reflecting the stalling of progress toward reducing upward pressure on prices seen through much of the past year.
However, once volatile food and energy costs are factored out, economists forecast that inflation likely moderated slightly in March, thanks to falling car and airfare prices.
The March CPI report is critical to the outlook around Federal Reserve interest rate cuts this year. After surprisingly strong inflation readings for January and February, investors have already pushed back their expectations for the first rate cut from March to June. In addition, traders in the bond market are looking for the Fed to cut rates between two and three times in 2024, down from the five cuts they expected when the year got underway.
March CPI Report Highlights
CPI report release date and time: Wednesday, April 10 at 8:30 a.m. EST
The CPI is forecast to rise 0.3% in March after increasing by 0.4% in February
Core CPI is forecast to rise 0.3% in March after 0.4% in February.
The CPI year over year is forecast to rise to 3.4% in March from 3.2% in February
Core CPI year over year is forecast to rise 3.7% in March after 3.8% in February
Wizard’s Weekly Musings
The central bank is closely watching the report for evidence that inflation is finally subsiding as policymakers try to determine when to cut interest rates and by how much. Policymakers have opened the door to cutting interest rates this year but have pushed back against the market's aggressive expectations. The market was pricing in 5 rate cuts this year, then it moved to 3, and now it’s looking like they might move to 2. It seems like Powell is confident in 2-3, as he hasn’t pushed back against 0 rate cuts.
It’s unclear how the market will respond to this data. Last Friday's payroll numbers were not ideal, but the market rallied. This could be because if you dug down into the data, it showed that possibly the average hourly earnings YoY dropped, and the spike in job creation was on the back of 71K government jobs. It isn’t always 1:1 that the market will die on bad data and rally on good data or vice versa. The market decides what it wants to do in the end.
The stock market performance on CPI-release days in 2024 has been mixed. Following the December CPI reading, the S&P 500 fell less than 0.1% on January 11. According to Dow Jones Market Data, the large-cap benchmark dropped 1.4% on Feb. 13 after the January CPI release and rallied 1.1% after the February data on March 12.
The dollar has tended to retrace some of its knee-jerk rally over the rest of the trading day. On CPI-release days, the dollar index has seen an average gain of 0.37%.
Crypto is similar. It's unsure how the market will react, although altcoins are all sitting around support and have been in range for the last few months. We did enact longs on Solana while writing this newsletter at the 170 level and Ethereum around the 3500 level as the market derisked into CPI. We will wait for CPI to see if we should stop out of them or ride them. We are in spot longs across the board, with $PENDLE up 300%+. We like clipping profits on that, selling 25% of our spot in the 6.5-7 range.
For any significant position changes, we will look to make calls after the CPI number, so join Telegram and wait until 8:30 a.m. EST tomorrow.
Equities
@donnyenglish
It was another interesting week in markets, with the 10-year bond, precious metals complex, and oil all rallying. This is not a combination of financial assets that have traditionally had a high correlation, which makes me nervous.
I am holding onto my CVX and see oil stocks having further to run, with OPEC+ (Iran, Kazakhstan, Russia, Mexico) all pledging to reduce production or exports. On top of this, Ukrainian drones attacked a large Russian refinery, and the Israeli attack on Damascus highlighted the fragility of the oil supply chain. On this basis, I'm looking for Brent's spot to rise to the $95 - 100 per barrel range in the next few weeks. I will take 75% of the remaining position in CVX at $95 and let the rest ride to $100.
I've been watching Silver for a while and have been hesitant to answer, given that I've witnessed multiple fake-out pumps/squeezes in the commodity that have never amounted to much. However, this time, it looks different (famous last words). Silver is reaching 3-year highs and bursting through the middle of the weekly supply zone (see below), playing catch-up to gold. My gut feeling is that if it breaks the $32 level, then it's going to $50.
Gold and silver would typically be selling off into a rapid rise in 10-year treasuries, which highlights to me that there is a confluence of events: central banks are buying (it looks to be true), some institutional investors are positioning for the reflation trade, and others are using gold/silver as a hedge.
I already own some Silver, admittedly slightly on accident via holdings in junior exploration companies listed on smaller exchanges outside the US (sorry, team); however, it doesn't feel long enough. Given the long tail of geopolitical risks and potential for macroeconomic shocks, I'll be looking to have my total portfolio allocation of 15 -20% precious metals atm, with about 5% each in AEM and KGC, with another 5% in junior exploration names + another 5% when / if Silver breaks out above $32.
Among Silver names, MAG Silver Corp (NYSE: MAG) probably provides the best leverage with a market cap of ~US$1.25 billion, with about 75% of its revenue coming from Silver. MAG's flagship project is the high-grade, low-cost (a recurring theme of mining assets we look at) Juanicipio silver mine located in Mexico, in which MAG holds a 44% interest. Juancipio is widely viewed as a world-class silver project that entered commercial production in mid-2023 and is expected to generate substantial cash flows given the high-grade nature of the orebody and by-product revenue from gold, lead, and zinc.
I continue to hold AEM (looking for a TP level of $70) and KGC (TP at $7.80) and see further upside for gold equities more broadly. The GDX also broke out of a 4-year formation in the past week.
How to trade:
I'm looking to add spot MAG equity between $12 and $13, taking profits at $16.95 and $19.95 and then free-carrying the rest to ~ $25.
I note that given the time zone differential, I won't be able to edit this call before the NL is sent out. If CPI runs hot, treasury yields spike and gold/silver/crypto is dumping, don't enter a position and wait for me to update.
TradingView, 2024
@abullish
Similar to Wiz, taking a wait-and-see approach after economic data this morning (Wednesday 8:30 a.m. EST). The only positions I’m currently holding are CPNG and QCOM. BABA showed good strength yesterday, so I may get into that position, adding an extra week of expiration ($75 calls expiring 5/3).
$ENPH If CPI data comes in lighter than expected, solar stocks are extremely super rate-sensitive and will be the first basket of stocks I look at. Enphase Energy, in particular, is consolidating very nicely on the daily here; I’ll be looking at $130 calls expiring 5/3. These are expensive contracts, but you can buy the index instead if you want to go that route: $TAN $47.5 calls expiring 5/3.
TradingView, 2024
TradingView, 2024
Technical Analysis
@cryptofox Analysis
IMX
When writing this week’s newsletter, IMX was trading at 2.65. IMX isn’t looking too hot for a lot of upside continuation in the immediate short term. Instead, we expect IMX to come down lower before going (significantly) higher, more specifically to test at least the 2.3747 level. Should IMX drop below the 2.3747 level, we are looking to take a long position after the price manages to reclaim this level by closing a 4H candlestick back above. At that point, we would put our stop loss on the low that is made below 2.3747, and we would target back to the upside for at least twice the percentage move as the percentage move from our entry to our stop loss.
For IMX, it is also important to note that as long as the price holds above 1.70, we are technically holding the current ongoing daily and weekly uptrend. This means that we are primarily interested in finding good support levels to play from. Even though the price might (and is even likely to) come down lower in the short term, we aren’t interested in shorting IMX right now because it is not simple to cover the position with a (relatively) safe stop loss. Should IMX convincingly break back below 1.7, we will be looking at ways of playing the downtrend to lower levels in due time.
The levels for IMX shared are based on the perpetual futures chart on the Mexc exchange.
STX
When writing this week’s newsletter, STX was trading at 3.2. Going forward, there are a couple of interesting levels and scenarios to watch.
Scenario 1: Up more
STX has shown powerful bullish momentum, reaching a new all-time high last week at 3.8464. However, after reaching this new all-time high, STX was sold off again and is trading slightly below the previous (2021) all-time high at 3.256. To be bullish again in the short term, we need to see STX get back above the current monthly open price at 3.6541. If STX gets back above this level, we could see a strong new bullish impulse to higher price targets.
A spot trade idea could be to take a position once STX manages to close a daily timeframe candlestick above 3.6541. The stop loss for that trade would go under the current weekly low at 2.9085 while primarily targeting up to the 6.963 level, taking and securing minor profits in between while we reach the 4.57 mark, for example.
Scenario 2: Deviation from the previous all-time high into a sell-off
As mentioned above, STX is trading back below the 2021 all-time high. If we close this week’s weekly candlestick below the 2021 all-time high (3.256), we increase the probability that STX might come in for a correction back down. Closing this weekly candle below 3.256 would also imply that we get three consecutive red candlesticks, a bearish candlestick pattern in and of itself. If we see this bearish short to mid-term confirmation of closing this week below the 2021 all-time high, we expect to fall back to the area between 2.0607 and 2.2.
If this important level doesn’t hold and flips into resistance, we can look down lower at 1.2 and 0.7989 as potential support for STX. All those levels (2.2 - 2.0607 - 1.2 and 0.7989) are excellent for looking for a long STX position. A good confirmation would be to see STX drop below either of those levels first, then take a long position only after we close a daily candlestick back above. The stop loss for these trades can be put under the low that was made below either of those levels before closing a daily candlestick back above.
As a rule of thumb, profit-taking should be the easy part and can be done after the position has run at least twice as far to the upside as the distance from our entry to our stop loss. (2:1 reward to risk) A short trade idea could be to take a very low leveraged (2x) short position once STX closes this weekly candlestick below the 2021 all-time high. The stop loss for that trade would go above the current all-time high at 3.8464 while targeting down to a primary target at 2.2, leaving some runners to run for the lower levels mentioned.
The levels for STX shared are based on the spot chart on the Binance exchange.
ENA
Thirdly, this week, we are looking at the recently listed ticker ENA. When writing this week’s newsletter, ENA was trading at 1.27.
Contrary to IMX and STX, which both have been trading already for multiple years, ENA doesn’t have a rich price history, so the best we can do is to go on a relatively low timeframe, such as the 1H, and see what we have from here. Because ENA does not yet have any trustworthy high timeframe levels to play from, we highly suggest keeping it extremely modest on the leverage (for a long position, ideally not to use leverage at all; for a short position, to use a 2x leverage multiplier).
1.305 seems to be the most important resistance for ENA to get above for us to assume a bullish continuation. A long trade setup could be to wait until ENA breaks above 1.305 with at least a 1H candle close, then to take an entry at 1.305 on a bullish retest, aiming to take it higher. Our two targets for this position are 1.461 and 1.687. The stop loss for this trade idea can be placed at 1.227.
Alternatively, the 1.195 level is important support for ENA. If ENA manages to lose the 1.195 level by closing a 1-H timeframe candlestick below this level, then we are assuming a bearish continuation. A short trade setup could be to wait until ENA breaks below 1.195 with at least a 1-H candle close, then take an entry at 1.195 on a bearish retest, aiming to take it lower. Our two targets for this position are 1.078 and 0.994. The stop loss for this trade idea can be placed at 1.264.
The levels for ENA shared are based on the perpetual futures chart on the Mexc exchange.
PAAL
Lastly, we are still looking at PAAL AI, a ticker we have previously discussed, such as one of the most recent Edges.
When writing this week’s newsletter, PAAL was trading at 58c. While we are bullish on PAAL in the mid-to-long term, that doesn’t mean randomly buying this coin is a safe way to succeed.
Instead, we suggest waiting for either of the following scenarios:
Scenario 1: PAAL breaks the most important resistance by closing a daily candlestick above 78c. At that point, we envision PAAL heading for higher prices. After getting above and closing a daily candlestick above 78c, we would like to bid a bullish retest at 78c, aiming for at least 1$ while putting our stop loss at 65c.
Scenario 2: PAAL continues lower from here, in which case we are looking at two very specific levels—38c and 22c. Both levels are excellent for acquiring and/or building a PAAL spot bag. However, it is very important not to overplay your cards at the higher level (38c) but to ensure plenty of allocation can be put into PAAL at lower levels (22c).
The levels for PAAL shared are based on the spot chart on the Gateio exchange.
@daniel4 Analysis
ETH
TLDR: We will be longing the $3,200 - $3,300 range with a stop loss of $3,175 and targets of $3,700, $3,900, and $4,100.
ETH had a significant bounce this week after trailing BTC significantly. The market seems fairly weak at these levels across the board, so we will look to long ETH on pullbacks.
The ETH daily candle closed below 0.5 Fib and rejected this level, which gives us confidence that we will head lower in the short term. ETH has shown strength at the levels we will be longing for.
ETH 12hr Chart
ETH Daily Chart
TAO
TLDR: We will be longing the $550 - $615 range with a stop loss of $540 and targets of $710, $750, and $1,000 (Moonbag Target).
TAO has shown tremendous strength during its massive run from $52, which I initially called. Obviously, we closed far too early, as we closed at around $90. Looking ahead, it seems that TAO is nowhere near its peak, as it has shown strength in its consolidation period between the levels of $460 and $750.
Looking at Fibonacci levels, we can see that TAO is looking to break over its 0.5 fib level. Should TAO breakout with strength, we can expect a liquidity sweep of recent highs at $750. We will look for a strong move above the 0.5 Fib and a bounce as confirmation on the Daily chart.
TAO 12hr Chart
TAO Daily Chart
ARB
TLDR: This is a long-term setup. We will be longing the $1.10 - 1.40 range with a stop loss of $0.95 and targets of $1.75, $2.05, and $2.40.
ARB had a nice push from the mid-$0.70s to $2.40 during the market’s recent bullish trend. Looking ahead, we will gladly long ARB in the low $1.00 range following a downtrend from its peak around $2.40. This L2 is a solid token to long into the bull cycle, and I have given potentially juicy levels to hold into new market highs.
Looking at the Fibonacci levels on ARB, we can see that the golden pocket sits right at the top of our bid range, around $1.33 - $1.40. This seems to be a favorable area to start our long-term position and add dips should the market continue to be lower.
Side note: ARB is significantly further off its highs than the other majors (BTC, ETH, etc). This tells me that ARB is potentially oversold and has room to catch up to the major players when the market continues into its bull trend.
ARB Daily Chart
ARB Weekly Chart
Web3 News
@epicrubia
NFT Buzz: Tensor Launches Token with Big Airdrop and Trading Volume
Tensor, 2024
The airdrop frenzy continues in the crypto world, with Tensor, a rising Solana NFT marketplace, making its mark today. Their TNSR token launch generated significant buzz, boasting over $200 million worth of tokens distributed through airdrops and exceeding $640 million in trading volume within its first seven hours.
Early Traction, Volatile Price: The new token experienced early volatility, reaching a high of $2.45 before settling around $1.60. This initial fluctuation is typical for recently launched tokens.
Rewarding Participation: Borrowing a page from Blur's playbook, Tensor uses a seasonal rewards program. Users who participated in past seasons received airdropped tokens and could earn additional rewards by holding and staking special Tensorian NFTs. One lucky user walked away with a hefty reward – over $1.15 million worth of TNSR tokens!
Community Focus: Unlike some NFT marketplace tokens, TNSR is designed to empower the community. Over half of the total token supply is allocated for community governance, allowing users to influence key decisions regarding the Tensor protocol.
The Competition Heats Up: While Tensor is stealing the spotlight today, established players like Magic Eden continue to demonstrate a multi-chain presence across Solana, Bitcoin (via Ordinals and Runes), and Ethereum. The true test lies in how these marketplaces retain user engagement beyond the initial token launch hype.
Claiming Your Tokens: If you participated in Tensor's rewards program, you can check your eligibility and token allocation on their website (note: US users are not eligible). Once confirmed, you have 180 days to claim your tokens through the Jupiter decentralized exchange aggregator.
Game On: Saga Token Generates Record Buzz on Binance Launchpool
Binance, 2024
Get ready for a new player in the crypto game! The upcoming launch of the Saga token on Binance is creating a stir, with user participation in the exchange's Launchpool program reaching record highs.
Staking Frenzy:
Binance users have locked up a staggering $13 billion worth of cryptocurrency to earn rewards in Saga tokens. This eclipses the previous $8.6 billion set by another token earlier this year. The surge is likely fueled by the rising price of Binance Coin (BNB), a key staking option for the Launchpool campaign.
What is Saga?
Saga is a layer-1 blockchain explicitly designed for the gaming industry but capable of powering other decentralized applications (dApps). The platform has already distributed Saga tokens through play-to-airdrop competitions and to holders of certain NFTs, building anticipation within the gaming community.
Broadening the Appeal:
The Binance Launchpool campaign offers a significant portion of the initial Saga token supply (45 million) to users who participate in staking. This strategic move aims to attract a wider audience beyond Saga's existing user base and establish the token within the broader crypto market.
Unexpected Success:
The overwhelming response to Binance surprised even the Saga team. "We were not anticipating this at all," said Saga CEO Rebecca Liao, highlighting the immense interest in the project.
PayPal Makes International Payments a Snap with Stablecoin Option
Attention all globetrotters! Thanks to PayPal's new stablecoin feature, sending money overseas became much easier (and potentially cheaper).
Here's the deal:
You can now send money internationally using PayPal's stablecoin, PYUSD. Consider it a steady digital dollar, unlike Bitcoin's wild swings.
With a few clicks, convert your PYUSD to regular dollars and send it to over 160 fee-free countries using Xoom, PayPal's international payments service.
This is a game-changer for anyone who needs to send money abroad regularly. No more hidden fees eating into your hard-earned cash!
PayPal is all about making cryptocurrencies a normal part of our everyday lives. This move shows they believe stablecoins, like PYUSD, can be used for real-world transactions, not just fancy trading.
Is PYUSD a big shot in the crypto world?
Not quite yet. Big names like Tether's USDT rule the stablecoin roost for now. However, PYUSD offers a potentially faster and cheaper way to send money internationally.
What's next for PayPal and crypto?
With this new feature, PayPal is doubling down on crypto. They already let you buy, sell, and transfer Bitcoin and Ethereum. Expect them to keep innovating and making crypto more accessible to everyone.
NFT’s
@epicrubia
Wu-Tang's Ghostface Killah Drops Free Bitcoin Collectibles
Artwork from Ghostface Killah's Bitcoin Ordinals collection. Ghostface Killah/NakaPepes/Rare Scrilla, 2024
Music legend Ghostface Killah, from the iconic Wu-Tang Clan, is venturing into the cryptocurrency world with a free NFT collection. Partnering with OrdinalsBot, Nakamotos on BTC (NakaPepes), and Rare Scrilla, the rapper will release 10,000 unique digital collectibles on the Bitcoin Ordinals platform.
The free mint kicks off on April 11th, with users only needing to cover the Bitcoin network inscription fees. This move comes after Ghostface Killah's initial announcement last month, which generated significant buzz within the NFT and Bitcoin communities.
Bitcoin Ordinals are a recent innovation that allows users to permanently inscribe data onto the blockchain. While individual inscriptions have a limited data capacity, Ghostface Killah's collection will reportedly utilize "Recursive Ordinals" – ” a technique that builds upon previous inscriptions to generate more complex content.
Specific details regarding the collection's content and the claiming process are still emerging. However, with the mint date approaching, fans and crypto enthusiasts alike will likely watch Ghostface Killah and his collaborators closely for further announcements.
Coachella Goes Digital: Festival Launches Blockchain-Powered Quests
Coachella Music Festival/Ava Labs, 2024
Get ready to level up your Coachella experience this year! The iconic music festival is embracing the world of Web3 with Coachella Quests, a first-of-its-kind game that lets attendees earn exclusive rewards using blockchain technology.
Here's how it works: Coachellagoers can participate in various challenges throughout the festival weekend. These quests might involve visiting specific locations, interacting with partner booths or artists, and engaging with the festival's Discord community.
The prize? Digital "stamps" that unlock exciting perks. Imagine sipping cocktails in the VIP lounge, getting access to unreleased music, or even scoring a rare NFT that grants free entry for two to the 2025 festival!
User-Friendly and Accessible: Signing up is a breeze – use your email or social media login. As you complete quests, your digital "Canvas Card" fills up with stamps, transforming into a dynamic NFT – a unique digital record of your Coachella journey.
Focus on Fun, Not Tech: While the system is built on blockchain technology, Coachella and Ava Labs, the developers behind the program, want you to focus on having an unforgettable festival experience. They emphasize that user privacy is protected and participation is entirely free.
Coachella Quests marks a further dive into Web3 for the festival. This innovative program promises to enhance the experience for attendees, adding a whole new layer of engagement and potential bragging rights!
Nyan Heroes Revs Up Pre-Alpha Demo with NFT Rewards
Artwork from Nyan Heroes. Nyan Heroes, 2024
Calling all cat mech enthusiasts! Nyan Heroes, the Solana-based game where you pilot feline fighting machines, is nearing the end of its pre-alpha demo on the Epic Games Store. But before it wraps on April 9th, the developers at 9 Lives Interactive are giving players a reason to push for purrfect victory.
The game has surpassed a milestone of 100,000 players since launching the demo on March 25th, showcasing strong interest in competitive mech combat. 9 Lives Interactive has implemented a leaderboard system with exclusive rewards for top performers to keep momentum.
The leaderboard will rank players based on the total number of wins they achieve during the demo. The higher you climb, the sweeter the loot! Here's a breakdown of the top prizes:
Top 3 players: Legendary, Ultra Rare, and Rare Genesis Nyan NFTs (unique digital collectibles)
Ranks 4-10: Genesis Nyan NFT
Ranks 11-20: Genesis Guardian NFT
Even if you don't crack the top 20, you still have something in store. All players will be able to see their rank and username on the leaderboard, and the top 7,500 players will receive a bonus in the form of MEOW points, the in-game currency. These points will be crucial for the upcoming airdrop of the game's NYAN token.
This leaderboard challenge adds a new layer of excitement to the Nyan Heroes pre-alpha demo. So, if you've been piloting your cat mech to victory, keep at it! You might walk away with some exclusive rewards.
@Vagabondxyz
TAIKO FARMING
OVERVIEW
Taiko is a decentralized platform similar to Ethereum, featuring a ZK-EVM and a versatile ZK-Rollup. Its primary objective is to enable developers and users to seamlessly utilize Ethereum L1 dApps on Taiko without necessitating any alterations. Consequently, dApps can effortlessly transition to L2, benefiting from Ethereum's security protocols while experiencing reduced transaction fees compared to L1.
Functioning as an Ethereum-like ZK-Rollup, Taiko effectively scales Ethereum by supporting all EVM opcodes within a decentralized, permissionless, and secure layer-2 framework. It strives to mirror Ethereum's technical and conceptual essence as closely as possible.
Taiko is dedicated to transparency and collaboration, evident through its open-source approach and reflected in GitHub. The public testnet exemplifies this ethos, inviting developers to deploy contracts, users to explore, and participants to engage in running L2 nodes and proposing blocks. Over the last few months, Taiko has become the largest Discord community in the rollups space, with over 850,000 active members.
Taiko has conducted six testnets, each focused on different protocol aspects. These testnets involved 1,100,000+ unique wallets, 30,000+ proposers, and 14,000+ provers. In each testnet, Taiko community members contributed by building dapps and operating nodes, serving as proposers and provers, and engaging with the protocol in various ways—all permissionless.
FUNDING
Taiko Labs has secured $37 million across three funding rounds from investors, including Lightspeed Faction, Hashed, Generative Ventures, and Token Bay Capital. Wintermute Ventures, Presto Labs, Flow Traders, Amber Group, OKX Ventures, GSR, and WW Ventures participated.
The fourth testnet iteration, Eldfell L3 (alpha-4), marks the inception of initial layers and introduces a new stack-based provocation design.
This test network aims to evaluate the following:
Deploying Taiko on Taiko as an L3 initial layer (rollup on rollup).
Testing a novel staking-based prover economics model.
AIRDROP
Engaging in the Taiko ZK-EVM testnet offers a valuable opportunity to explore cutting-edge technologies and contribute to refining the project before its official release. Furthermore, Vitalik Buterin's confirmation of $TKO tokens and acknowledgment of the project underlines its potential significance, providing an extra incentive for testnet participation.
Follow the following steps to farm Taiko:
Add Holesky to your Metamask.
Add Taiko Katla L2 to your Metamask.
Use this faucet to claim test tokens on the Holesky Ethereum network.
Go to the Katla website and connect your wallet.
Go to the Faucet section, select the $HORSE token, and click the "Mint" button.
Go to the "Bridge" section, select the $HORSE token, specify the quantity, and click on the "Approve" button;
Next, click on the "Bridge" button;
Transfer ETH in the same way; it is done.
Consult the official guide to installing nodes.
AI
@epicrubia
China's AI Influence in US Elections: A Growing Concern
Danielo/Shutterstock, 2024
Recent reports from Microsoft have sounded the alarm about China's sophisticated tactics, which involve deploying AI-generated content and "sockpuppet" accounts on social media platforms. These actors, allegedly affiliated with the Chinese Communist Party (CCP), are posing contentious questions on divisive US domestic issues, aiming to exploit existing divides among American voters.
The report highlights the utilization of various strategies, including AI-generated content, deepfakes, and the creation of fake social media accounts, to disseminate misleading information and sow discord. While there is limited evidence to suggest the success of these efforts thus far, Microsoft warns of the potential for China to enhance its AI-powered propaganda operations over time.
Additionally, North Korea's focus on cyberattacks, particularly the theft of cryptocurrency funds, adds another layer of complexity to the evolving landscape of AI-driven geopolitical influence.
As regulators scramble to establish rules and oversight for the use of AI in elections, debates surrounding voter privacy, electoral integrity, and the dissemination of misinformation continue to intensify. Efforts to regulate deepfakes and deceptive AI content are underway in the United States and the European Union, with policymakers grappling with the complexities of balancing technological innovation with the protection of democratic processes.
Meanwhile, concerns persist over social media platforms' influence and role in amplifying false information. While tech companies have pledged measures against AI misuse, questions remain regarding the regulation of misinformation and the allocation of responsibility in addressing this pervasive issue.
In conclusion, the growing intersection of AI and geopolitics highlights the urgent need for comprehensive regulatory frameworks and international cooperation to safeguard the integrity of democratic processes and mitigate the risks posed by malicious actors.
AI Music Generators: Stable Audio 2 vs Suno 3
Billboard, 2024
The world of AI music generation continues to heat up with the recent release of Stable Audio 2. This new tool from Stability AI boasts longer track generation, improved quality, and clear licensing for its outputs. But how does it stack against Suno 3, another leading AI music generator that recently received a significant update?
Stable Audio 2: Power and Control
Stable Audio 2 offers creators a compelling set of features. Users can generate coherent musical pieces up to three minutes long, a significant leap from the previous version's limitations. Additionally, Stable Audio 2 provides a unique function called "audio-to-audio generation." This allows users to upload a sound sample and use natural language prompts to transform it, offering a new level of creative control. Finally, Stability AI emphasizes clear licensing for all generated music, addressing a crucial concern for creators.
Suno 3: Creativity Takes Center Stage
While Stable Audio 2 focuses on control and clarity, Suno 3 is creative. Many experts consider Suno 3 the current leader in AI music generation thanks to its ability to produce complex and original music. Suno 3 generates songs with natural structure, including riffs, choruses, bridges, and variations. Suno 3 outputs feel more polished and listener-ready than Stable Audio 2, which may be better suited for background music or inspiration. Additionally, Suno 3 integrates with large language models, allowing for automatic lyric generation – a feature currently missing from Stable Audio 2.
Choosing the Right Tool
Stable Audio 2 and Suno 3 offer valuable tools for musicians and creators of all experience levels. Those seeking clear licensing, precise control over sound manipulation, and a user-friendly prompting system may find Stable Audio 2 a powerful asset. Suno 3, on the other hand, caters to creators who prioritize sonic intricacy, song structure, and the ability to generate lyrics alongside music. Ultimately, the best choice depends on the user's specific needs and creative goals.
AI Chatbot Security: Grok Vulnerable, LLAMA Leads the Pack
Chat Simple, 2024
A recent study raises concerns about the security of AI chatbots, with Elon Musk's Grok chatbot showing significant vulnerabilities. Researchers compared the resilience of various chatbots against manipulation techniques. Grok, developed by x.AI, fell short, particularly susceptible to linguistic tricks and exploitation of its programming logic.
This research highlights the critical need for robust security protocols in AI systems. Our increasing reliance on AI-powered solutions across various applications necessitates strong safeguards.
The study emphasizes collaboration between developers and security experts. This teamwork is essential to fortify AI safety measures and mitigate potential misuse. Hackers could exploit chatbot vulnerabilities for malicious purposes, including phishing scams, hate speech generation, or unauthorized access to connected applications.
In contrast to Grok, Meta's LLAMA chatbot emerged as the most secure in the study. This finding offers a potential benchmark for developers striving to enhance chatbot security.
Further research is needed to explore best practices and develop comprehensive security frameworks for AI chatbots. As AI integration continues, ensuring the safety and security of these interactive systems remains paramount.
Cognitive Corner
@DrKavner
The "Back to Normal" Bounce
Ever thrown a super wild party and then had a super quiet weekend right after? That's a bit like "Regression to the Mean" in the investing world. It means if a stock's price shoots up like a rocket or drops like a hot potato one day, it's likely to return to its usual pace soon after. It's the financial version of not staying too high or too low for too long.
So, here's a nugget of wisdom: Don't get too carried away by extreme highs or lows. If a stock suddenly becomes the star of the show, remember that it might just be taking a bow before returning to the ensemble. Similarly, a stock in the dumps might be gearing up for a comeback.
Using this insight, keep your cool. Make sure to read your Weekly Wizdom newsletter multiple times to make sure you are operating with objection information from the team of analysts. Being the only cross-asset newsletter on the market, you can easily diversify without having to become an expert in multiple asset classes. Spread your bets, and remember, the market is like a giant rubber band – it can stretch, but it loves to snap back to the middle. Knowing this can help you avoid making hasty decisions based on short-term spikes or dips. Stay steady, and let the mean work its magic! 📈📉✨
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