GM Builders. 🚧 

Welcome back to the BW3 newsletter! You made it—another day, another block validated in the chain of life. ⛓️ 

Here’s the line up today:

• Jerome Powell Cuts Rates 🪓 

• Pengu Airdrop 🐧 

• Meme City 🏙️ 

BUT FIRST, let’s take a moment of silence for the stock market today, biggest drop since 2020!

FED RATE CUT FALLOUT 💥

What in the covid drop just happened…? Well,

The Fed slashed rates by 25 bps, marking a total 100 bps cut for 2024. But the mood turned hawkish when they forecast just two cuts in 2025 (down from three) and nudged inflation expectations higher.

Wall Street threw a tantrum: the Dow nosedived 1,100 points, S&P 500 dropped nearly 3%, and the Nasdaq slid 3.6%. Even small caps in the Russell 2000 took a 4.4% beating.

Crypto’s Reaction 🚨
Bitcoin felt the sting too, dropping 5% to dip below $100K (yes, we’re still pretending that’s “cheap”). The broader crypto market followed suit, with ETH and friends losing 3-10%. Liquidation alerts were ringing louder than holiday bells, as $310M in positions got wiped off the board.

Why the Drama?
Lower-than-expected rate cuts and a bump in inflation projections spell a riskier environment for risk-on assets. And crypto, being the king of risk-on, bore the brunt. Investors are skittish as tighter monetary policy signals less liquidity to fuel the pumps we all know and love.

Zoom Out:
The market is clearly reeling, but for crypto OGs, this feels like another day at the office. With inflation still a lingering beast and fewer cuts on the horizon, brace yourself for more turbulence ahead. HODL strong, or as Powell might put it: “tighten your belts, it’s gonna be a hawkish ride.”

$PENGU HYPE: WADDLE TO THE MOON? 🐧

The $PENGU token’s launch on December 17th was a whirlwind. With 88.88 billion tokens on Solana, this ambitious play aimed to bridge NFTs, gaming, and retail under the adorable Pudgy Penguins umbrella. But like any crypto party, the reactions have been... interesting. Let’s break it down.

The Good: Flippers’ Delight

The 25.9% airdrop allocation brought the feels, with millions of wallets included. At launch, $PENGU shot to $0.05 per token, ballooning its market cap to $3 billion in the first hour. Community members praised the inclusive distribution, seeing it as a bold move to onboard a diverse audience and strengthen brand loyalty. Pudgy Penguins’ team also teased cross-chain expansions to Ethereum and Abstract, hinting that this isn’t just a Solana gig.

The Bad: Penguins Can Slide Too

Almost as quickly as it rose, $PENGU slid by over 50%. Blame it on airdrop recipients dumping their bags or profit-takers cashing in after the Binance listing. Some pointed to its fully diluted valuation of $4 billion as a red flag, dubbing it overhyped from the jump. Add in claim site glitches and the broader market’s bearish vibe, and you’ve got some not-so-happy hodlers.

The Ugly: Airdrop Entitlement?

X (formerly Twitter) is a battlefield of mixed emotions. Posts range from “Free $PENGU = Lambo time 🚗💨” to “This is why we can’t have nice things.” Some short sellers are circling like hawks, citing poor market conditions and funding rates as prime shorting opportunities. Others are clinging to their tokens, hoping for a long term growth tied to Pudgy Penguins’ NFT-driven ecosystem growth.

Zoom Out: Is $PENGU All That?

Love it or hate it, the $PENGU token has sparked serious engagement and, let’s face it, FOMO. The Pudgy Penguins team is betting on NFTs, gaming, and tokenomics to push their brand beyond the crypto-native crowd. Whether $PENGU waddles to greatness or remains a cautionary tale, one thing’s for sure: the Penguins are here to ruffle feathers.

MEME CITY 🏙️ 

Until Next Time Builders! 🏗️ 

May your bags be heavy, your airdrops plentiful, and your rug pulls non-existent.

And remember, every pump is just one tweet away from a dump—so stay sharp, stay strapped, and maybe keep a plushie penguin nearby for comfort. 🐧

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