⬇️ Is the bottom in?

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📰 Top story

Former OpenSea employee gets indicted for insider trading

Nate Chastain has been arrested and charged with wire fraud and money laundering. The charges carry with them a max penalty of 20 years in prison. This means he can get 40 years for front-running Jpegs.

What happened:

Nate was an early employee at OpenSea and the company’s head of product. His position gave him some insider knowledge regarding which NFT collections would be featured on the front page of their website.

He would buy a few NFTs from those collections and then flip them once after the price went up. This process allowed him to routinely bank a 2-5x profit per flip.

Nate secretly did this for a couple of months using random OpenSea and wallets. His efforts weren’t enough as all it took was one blockchain sleuth smart (or bored) enough to track his wallet activity…

<div data-component-name="Twitter2ToDOM" class="tweet" data-attrs="{"url":" @opensea why does it appear @natechastain has a few secret wallets that appears to buy your front page drops before they are listed, then sells them shortly after the front-page-hype spike for profits, and then tumbles them back to his main wallet with his punk on it?","username":"0xZuwu","name":"0xZuwu.eth 🧪","date":"Tue Sep 14 23:28:39 +0000 2021","photos":[],"quoted_tweet":{},"retweet_count":2751,"like_count":12267,"expanded_url":{},"video_url":null,"belowTheFold":true}”>

0xZuwu.eth 🧪 @0xZuwu

Hey @opensea why does it appear @natechastain has a few secret wallets that appears to buy your front page drops before they are listed, then sells them shortly after the front-page-hype spike for profits, and then tumbles them back to his main wallet with his punk on it?

11:28 PM ∙ Sep 14, 2021

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12,267Likes2,751Retweets

After getting busted, Nate admitted to his wrongdoing and lost his OpenSea shares.

The case seems pretty singular to Nate’s – not the kickoff of a wide regulatory crackdown on NFTs that many initially thought.

<div data-component-name="Twitter2ToDOM" class="tweet" data-attrs="{"url":"https://twitter.com/SHL0MS/status/1532065627971543041?s=20&t=bzhJodjkQlV328-sD2BZaA","full_text":"@thenftattorney maybe i’m naive but seems like 99% of people employed in crypto aren’t trading on information they’re directly responsible for determining ","username":"SHL0MS","name":"𒐪","date":"Wed Jun 01 18:24:44 +0000 2022","photos":[{"img_url":"https://pbs.substack.com/media/FUL9HuJXoAcdKfN.jpg","link_url":"https://t.co/lIGgpWXqnN","alt_text":null}],"quoted_tweet":{},"retweet_count":2,"like_count":25,"expanded_url":{},"video_url":null,"belowTheFold":true}”>

𒐪 @SHL0MS

@thenftattorney maybe i’m naive but seems like 99% of people employed in crypto aren’t trading on information they’re directly responsible for determining

6:24 PM ∙ Jun 1, 2022

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25Likes2Retweets

📉 Andrew’s Market update

This is a new section of Zima Red where we synthesize and share Andrew’s thoughts on the NFT and crypto markets. You can follow these thoughts and musings live on Twitter.

Is the bottom in?

Macro/crypto market billionaire thought leadooooor Arthur Hayes says that the crypto market prices have bottomed out. But have they?

Well, two things are true:

1. The market is 100% controlled by the Fed’s actions

2. The Fed is doing two of the most bearish things it can do which are:

   • raising rates

   • continuing with quantitative tightening

With that being said, NFTs are holding up surprisingly well. While they are obviously being devalued in USD terms, many have held steady or even increased in base crypto terms (ETH, SOL, etc.) This is a great time to be loading up on crypto that you are bullish on long-term.

🔮 PfP’s and Collectibles

Goblintown mewns

After the Terra collapse, Crypto Twitter formally announced that we have all collectively entered into “Goblin Town” (we’re not sure who exactly coined the term but we’re going to give credit to Sassal bc that’s the first place we heard it.)

The markets going to goblintown essentially means that they are going to be down 80%+ akin to past bear markets – hence going straight to goblintown.

Andrew Steinwold @AndrewSteinwold

On the bright side, I learned a new term:

“Goblintown”

10:52 PM ∙ May 9, 2022

Out of the goblintown meme, goblintown.wtf began minting. It had no road map and an anonymous team. All anyone knew was that it was CC0 and free to mint 1 + gas.

Due to the project’s timing, execution, and solid smart contracts, many speculated that it was being led by NFT veterans. Rumors began to circulate about its founders as being anyone from Beeple to Yuga Labs.

The meme stuck and Goblin Town has already done an incredible 30K+ ETH in volume.

🕹 Gaming

Method gaming guild

Method, one of the world’s most renowned World of Warcraft guilds has entered the world of NFT gaming.

<div data-component-name="Twitter2ToDOM" class="tweet" data-attrs="{"url":" Method MetaGuild!nWe aim to be the biggest blockchain gaming guild dedicated to content creation and esports 🔥nnWith @Everyrealm, we’re merging the world of esports and metaverse gamingnnFind out more about our Guild in👇nn#MMG #Gamingnmedium.com/@social_11069/…","username":"MethodMetaGuild","name":"Method MetaGuild (MMG)","date":"Wed Jun 01 16:00:45 +0000 2022","photos":[],"quoted_tweet":{},"retweet_count":35,"like_count":120,"expanded_url":{"url":" Esports Team Method Joins Forces with Metaverse Investment Team Everyrealm to Launch Method…","description":"Method, one of the longest-running and most established esports organizations, and Everyrealm, a leader in metaverse innovation and…","domain":"medium.com"},"video_url":null,"belowTheFold":true}”>

Method MetaGuild (MMG) @MethodMetaGuild