Trading is now a video game with Legend

Lucas Chayan (0:09)

GMGM, welcome back to Galaxy Grid. I'm Lucas Chayan, joined today by Zach Bacconi, Will Owens, and Jay from Legend Trade. Before we begin, I need to remind you to please refer to the link to the disclaimer in the show notes, and note that none of the information in the show constitutes investment advice, or an offer, recommendation, or solicitation by Galaxy, or any of its affiliates to buy or sell any securities.

All right, Jay, welcome to Showman. Thanks for joining us today. Maybe just real quick, can you give us a quick overview of your background, what you're doing at Legend Trade?

Jay (0:37)

Thank you guys for having me. I appreciate it. My name is Jay. I'm one of the co-founders of Legend Trade, a social trading platform built on Hyperliquid.

I'm our COO, so I guess TLDR, what that entails is everything non-product or non-technical. So all of our operational stuff, all of our growth, all of our content, a lot of our customer success and user relationships go through me.

Lucas Chayan (1:06)

Yeah, dude, thank you for joining. Obviously, Legend Trade has been taken off, so we're looking forward to discussing that with you. But before we dive deeper into Legend Trade, why don't we just kind of recap where we are at the market? Another red week for Bitcoin, it was down 2% and closed the week down around, I think, 821K, even briefly dropped below 80K on Thursday for the first time since it broke that level about a month ago. It was mid-September when it broke through 80K.

You know, a lot of it's, you know, I think especially last week was driven by kind of hot inflation prints. But there is anxiety about the AI trade. You know, there's geopolitical factors in terms of kind of flare ups in the war in the Middle East and in Ukraine. So I'd say the market overall feels very apprehensive. Equities themselves have, you know, kind of been struggling. If you looked at your timeline, you probably thought that today the market was going to dump like 50 percent. Everyone was like talking about Black Monday. And then everyone was saying that because everyone was talking about Black Monday, it was not going to be Black Monday. It's just like comical what the timeline does. But overall, it seems like there's no Black Monday.

In terms of broader market dynamics, ETFs continue to be net sellers. Bitcoin ETFs sold out less than the prior week, but still about 228 million in BTC outflows last week. There was 320 million in ETH outflows. So ETH is now on a three-week ETF outflow streak. It's almost shed about a billion dollars in flows total over the past three weeks. And I think just looking at the flows, the question here is, is this the beginning of sustained profit-taking from people who entered in at the lows, or is it just some de-risking ahead of further macrovolatility with FOMC midterms, the geopolitical uncertainty, AI trade, stuff like that?

This environment has not been very good for alts. Alts are just getting absolutely punished. A lot of them starting to retrace pretty big moves that they'd started to make since July. Looking at an index of alts, only three of the top 50 finished green last week. Monero was the big outlier. I think there is some FinCEN policy announcements that might be bullish for Monero. Then there's also just like this Monero does this thing. Will has been a keen observer of this. Monero likes to do this thing of whenever there's a hack, like the ledger exploits, it seems to move quite a bit because people like to use it for that type of activity.

But the big strong names, Pump, Starknet, Zero, Zcash, all down substantially, 15 plus percent over the past week. And just the final thing I'll say here is, I think that the downturn is pretty obvious if you look at BTC dominance chart. I myself have not been watching it closely the past few weeks just because ALTS had been doing so well. But it's been basically in this range since I think like end of July when altcoins started to move. And it does look like it's now coming back up to that top of that range. So in the context of both BTC and alt selling off and ETL outflows, I tend to interpret that as kind of bearish as it means like there's just broad selling across the board and BTC is holding up better than everything else. But at the same time, BTC dominance going up generally means that it's a healthy reset in the market and it can proceed much larger moves the upside across BTC and alt. So that was a lot, sorry, but I think there was a lot that happened last week. Jay, maybe I'll hand it over to you first. You're on the ground, your users are trading leverage every single day, trying to survive this volatile market. Anything interesting you're seeing?