Mario Nawfal - How to Profit from DEXs w/ ZKX Protocol - Revelo Intel

Mario Nawfal – How to Profit from DEXs w/ ZKX Protocol

In Mario Nawfal’s Twitter Spaces which took place on June 19, 2024, David 10X and AJ hosted Eduard from ZKX, DizzyWhale, K2, D3f4ult Trades, Irina Karaagyaur to discuss decentralized exchanges, perpetual contracts, market strategies, and more! Read our notes below to learn more.

Background

David 10X (Host) – CIO at Mixie AI

Aj (Host) – Crypto YouTuber 

Eduard (Guest) – Founder at ZKX Protocol

K2 (Guest) – Blockchain Evangelist and Contributor at Mixie AI

D3f4ult Trades (Guest) – Trader

DizzyWhale (Guest) – Social Media Influencer

Irina Karagyaur (Guest) – Co-Founder & CEO at BQ9

ZKX Protocol – a perpetual futures DEX with self-custody on Starknet

Navigating Market Volatility: Insights on Bitcoin, Derivatives, and Institutional Entry

  • AJ mentions that despite altcoins’ significant losses, Bitcoin has maintained its value around $64,300. He highlights the upcoming potential ‘death cross’ in the Bitcoin chart and discusses support and resistance levels, pointing out the relatively high Bitcoin dominance in the market.
  • Eduard explains that ZKX caters to those interested in high-engagement derivative trading, including gamified perpetual trading competitions, appealing to users who enjoy dynamic trading environments.
  • K2 expresses the current sentiment of uncertainty and emotional distress within the crypto community due to market conditions, highlighting the massive need for support and the hope that platforms like ZKX bring to the community.
  • DizzyWhale mentions that the community had seen the current market events coming and that they were overly optimistic, acknowledging the role of celebrity influence.
  • David says that institutions like BlackRock are manipulating the market for lower entries, sharing his own experience with poor investment choices in meme coins and highlighting the learning aspect of their discussion.
  • Aj says that the market is following a predictable Bitcoin halving cycle, predicting a peak in late 2025, and advises against panic selling, highlighting long-term patience and strategic trading to mitigate losses.

Crypto Trading: Strategies, Tools, and the Excitement of DEXs vs. CEXs

  • Aj says that exchanges are like the main event in trading, akin to a Friday night football game, highlighting that championships are won through preparation and experience. He mentions that most people use TradingView for chart analysis and other metrics sites like Token Metrics for additional data like heat maps and liquidity.
  • Aj tells his trading group that successfully scalping a small percentage from a significant market move is commendable, highlighting his focus on scalping as a strategy, though he acknowledges other strategies like swing trading.
  • Aj advises traders to enter trades with a clear strategy and to use stop losses to manage risks, highlighting the importance of moving stop losses up with profitable trades to secure gains and possibly capture larger uptrends.
  • Eduard recommends the use of limit orders and stop losses while cautioning against excessive leverage. He explains that perpetual contracts (perps) are effectively used to short assets, providing a hedge against spot holdings during market downturns.
  • David simplifies the concept of trading with perps as betting up or down on asset prices, showing interest but expressing a preference for more significant gains, indicative of his interest in meme coins.
  • Eduard says that if one truly believes in a particular meme coin, one could potentially achieve large returns by taking high-leverage positions.
  • K2 says that using a DEX enhances the accessibility of trading, comparing it to a meme coin casino on steroids due to the excitement it offers. 
  • He highlights the lower barriers to entry and the potential for arbitrage between DEXs and CEXs, noting that DEXs do not require the same level of KYC as CEXs, making them more accessible.

Trading Strategies and Sector Insights: From Decentralized Exchanges to Gaming Tokens

  • D3f4ult says that he prefers decentralized exchanges due to bad experiences with centralized ones, citing the advantages of custody and increasing fiat on and off ramps that improve liquidity, although acknowledging some current technological and liquidity issues.
  • D3f4ult explains his contrarian trading strategy, highlighting buying during fear and selling during euphoria, and notes the potential in the real-world assets (RWA) sector, particularly with plays involving BlackRock.
  • DizzyWhale mentions his focus on AI, predicting significant long-term impacts and expressing a preference for investments that do not require frequent selling.
  • K2 identifies gaming as the sector with significant potential, pointing out its natural progression from traditional platforms to Web3 technologies, and predicts major developments in gaming integrated with AI.
  • David asks Irina about potential sectors that might experience growth, speculating on BlackRock’s next moves.
  • Irina predicts significant growth in the gaming sector due to its digital nature and existing gamer base and expects sports, particularly soccer brands, to also gain prominence in blockchain adoption.
  • David asks about the possibility of meme coins being launched by soccer teams.
  • Irina says that meme coins have already been launched by teams like PSG in the past, and discusses the broader phenomenon of meme coins in crypto, highlighting community-driven initiatives and the challenge of creating successful blue-chip meme coins like Dogecoin.
  • AJ says his focus is on trading volume across decentralized exchanges to identify viable trading opportunities, regardless of the specific narrative or sector associated with the assets.

Liquidity Challenges and Gamified Trading Platforms 

  • David remarks that understanding simple, fun, and user-friendly platforms like ZKX, which can be used with friends, is easier. He mentions transitioning to an AMA segment with Edward about ZKX.
  • K2 notes that AJ discussed the critical issue of liquidity needed for successful trading. He expresses curiosity about how the fragmentation of liquidity across multiple blockchains, unlike previous cycles of centralized liquidity, will affect the trading landscape. K2 speculates that a contraction in trading venues might be necessary to ensure sufficient liquidity, drawing a parallel with traditional stock markets.
  • Eduard talks about ZKX as a gamified perpetuals trading platform that is quintessentially a DEX, listing on multiple exchanges the next day. He elaborates on ZKX’s technical capabilities, including their custom blockchain that supports fast price refreshes and an extensive API for trading.
  • Eduard shares excitement about the upcoming listing of the $ZKX token on multiple platforms and the airdrop for the community, highlighting community engagement and the anticipation of rewarding loyal users.

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Show Information

  • Medium: Twitter (Audio)
  • Show: Mario Nawfal Twitter Space 
  • Show Title: How to profit from DEXes w/ @zkxprotocol @CryptoDaily
  • Show Date: June 19, 2024