Klarna's Massive Down Round, USD reaches Parity with Euro in 20 Years, Blockchain-Based Health Platform
Blockchain-based Healthcare, Buy Now Pay Later down rounds, Binance gets Approval from Spain, Bitcoin inverse correlation with Bond Yield near record highs.
By Terrence Hooi
Chief Investment Strategist
This Substack Post does not take into account nor does it provide any tax, legal or
investment advice or opinion regarding the specific investment objectives or
financial situation of any person.
1. Blockchain-based DNA Sequencing Unlocking New Innovation Model in Healthcare
Recent advances in blockchain technology and next generation DNA sequencing the drastically reduced the cost and implementation times for genomic services. These two breakthrough inventions could unlock the following according to Genome Biology :
First Fully on-chain and analysis solution for raw genomic data
Lightweight encoding scheme that allows users to rapidly access and analyze the data
As a result, users will have much more control over their individual data than assigning these privileges to others and those big companies would then sell it to large pharmaceutical companies for a profit.
Singular’s Take: Most health platforms today like Invitae (NVTA) or 23 and me offer similar selective services but does not leverage blockchain technology. As a result, most health platforms are still centralized which slows down innovation in the healthcare industry.
Singular’s Action: Next generation of blockchain-based DNA storage could unlock more useful and accurate data with public blockchains. This will accelerate the use of sequenced human genomes enabling it to grow on a large-scale. Imagine you would retain ownership and benefit from your own data and control the right to share (privacy) and how to share (security). Much like the iPhone Ad you saw recently about privacy but now with your genomic data.
2.) Klarna’s Buy Now Don’t Pay Later
This week, Buy Now Pay Later (BNPL) startup Klarna valuation was slashed by 85% to $6.5 billion. It’s closest competitor Affirm (AFRM), founded by one of PayPal’s mafia Max Levchin was also being devalued to $5.9billion based on price-to-sales ratio.
Following a step discount or called “down-rounds” by venture capitalists, Affirm and Klarna will face more fierce competitions from even larger players with a wider audience base like Shop Pay, Cash App and Apple’s recently announced Pay Later program.
Singular’s Take: We believe the Buy Now Pay Later or BNPL will most likely be integrated as a “feature” and not a product. As more businesses jumping on the BNPL trends, frauds using BNPL is also on the rise where users realize they could Buy Now and Not Pay Later with different providers. It’s not hard for BNPL startups to start realizing its a “feature” and users are the “bugs” with rising customers’ defaults.
Singular’s Action: Block (SQ) and Apple (AAPL) are better positioned to capitalize on this as tech giants are seemingly evolving into full service all-in-one Fintech in your pocket apps serving already existing users with Block 210 Million users, and Apple 2.2 billion iPhones sold worldwide.
3.) US dollar Hits Parity with Euro
Yesterday, the Euro reached parity with the USD for the first time in 20 years since 2002. With fears of recession and disrupted oil pipelines in Europe, the energy supply crisis and economic woes is a double whammy to the Euro which fell to 0.9998 this week.
Singular’s Take: Although there is an increase of capital inflows into the USD as a safe-haven currency now, coupled with an increase in interest rates to tame inflation, this will ultimately cost the average Americans paying even more for essentials like groceries or medical insurance .
Markets Update
US Inflation at 9.1% or 41 year high since 1981
Food and energy prices in the US increased 8.6% YoY.
Crude dropped from $5.00 high now at $4.655
Crypto Update
Binance gets third approval from Spain for Crypto exchange and Custody services after France and Italy.
Bank of England recognizes Crypto does not change the underlying risks in economics and finance. In other words, Crypto is here to stay. WAGMI 🚀