Injective Token: AI and Crypto Form an Explosive Mix! 💉

🐺 Hi pack-mates,

This is Howling Markets, the elegant jockey galloping though the financial markets!

Today we will be covering:

• What Is a Smart Contract? 📑

• Soft Landing Expectations Skyrocket after Lower-Than-Expected Inflation in the US 📈

• Injective Token: AI and Crypto Form an Explosive Mix! 💉

• Equity and Debt Markets Daily Update ⚖️

• And more!

Market Watch 👀

What is a Smart Contract?

Smart Contracts are digital contracts stored in a blockchain that are executed once some conditions are met.

If you have ever followed any basic programming classes in school, how smart contracts work will sound very familiar. They are based on a series of conditional instructions of the type “if/when … then …”.

Smart contracts were introduced to leverage the positives of the cryptocurrency and blockchain enviroment. This is because they are registered inside the blocks of the blockchain and once the contract is exercised, the block is closed and encrypted.

This means that after the contract is ended, the outcome cannot be falsified or changed and there will always be proof of its occurrence and outcome, rendering the contractual procedure much safer.

Additionally, smart contracts have also the upside of being much faster and cheaper than traditional contracts. Traditional contracts often need intermediaries and third-party aid to ensure the trustworthiness of the agreement, increasing both the time and money needed to close the contract.

Finally, with self-executing smart contracts these procedures will be much faster, and even automated, if so desired by both parties.

Stay tuned as we will see how a platform managed to achieve extraordinary returns thanks to this contract innovation!

Soft Landing Expectations Skyrocket after Lower-than-Expected Inflation in the US?

One of the greatest fears surrounding the fastest tightening cycle since the 70s was the idea of a hard landing characterized by a recession caused by the central bank to stop inflation from spiraling out of control.

When the tightening cycle started, yields shot up while stock prices fell into a bear market as investors started to price in this pessimistic scenario. However, the more time passes, the more market participants are becoming optimistic about the future.

First, they started to price in 6 rate cuts in 2024, then the markets continued to rally as the expectations shifted towards a soft landing, meaning a scenario where the central bank is able to bring down inflation without any significant economic slowdown.

This new optimistic idea was initially affirmed by the latest dovish Federal Reserve announcement and consequently by the extremely positive US inflation reading that came out in November showing that inflation continued to fall  more than expected, reaching 3.1% in November.

This positive reading continued to prop up the markets and seems to make the investors confident to be headed towards a soft landing. Do you believe that the US is out of the woods yet?

Today’s Howling Question

We have briefly talked about the level of inflation in the US, but are you as well prepared on European inflation?

What is the current level of inflation in the Eurozone as measured in the latest November 2023 reading?

a)  2.4%

b)  3.1%

c)  3.5%

d)  4.2%

e)  4.8%

Hint: we mentioned inflation in the Eurozone in yesterday’s newsletter!

Try to answer the question by yourself, and then check the correct answer after the last interesting news!

Injective Token: AI and Crypto Form an Explosive Mix!

In yesterday’s newsletter we discussed the exceptional performance of Solana, which breached 1000% YTD returns during the intraday session of the 24^th of December.

The return of Solana is nothing short of exceptional as it is the blockchain that has achieved the highest returns in 2023 while competing against Ether. But what if I told you that there was a token that has achieved more than three times Solana’s returns?

This is the case of Injective, a token that since the beginning of the year is up more than 3000%!

Differently from Solana, Injective is not a blockchain but rather a platform that uses Artificial intelligence (AI) to improve the market efficiency and decision-making processes in Web3 applications.

Injective works by operating on a Cosmos-based blockchain and promises to be the first platform to offer self-executing smart contracts in the pursuit of higher market efficiency.

Just like many other tech companies, the price surge of Injective has been caused by the restless development of AI technologies and the optimism surrounding its future applications and uses.

As we can see from the chart below, between the first of January and the 24^th of December Injective Token has returned 3084.68%, and on the 25^th the price is continuing to climb!

Equity and Debt Markets Update ⚖️

And now, our daily markets update!

Today our market recap will be extremely short and sweet. On Monday the markets were closed as Christmas is considered a national Holiday in the United States.

So, there aren’t any interesting updates, but if you have missed yesterday’s daily market recap, make sure to check it out before tomorrow’s comes out!

Answer

The correct answer is a) 2.4%.

After a lower-than-expected reading, inflation dropped from 2.9% to 2.4% between the October and November measurements.

An interesting fact about Eurozone inflation is the fact that it is measured as the average level of inflation among member states.

Additionally, in the US inflation is measured through the Consumer Price Index (CPI) while the ECB uses the Harmonized Index of Consumer Prices (HICP), which have some differences regarding the types of goods and measurement frequency.

Howl-Worthy Memes 😂

🐺 See you next time!

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