Aurora Sky Is No More, Stablecoins Melt Down and SAFE Banking Receives Another Boost

In this week’s Trade To Black Podcast, TDR Founder Shadd Dales, lead financial writer Benjamin A. Smith and millennial entrepreneur Anthony Varrell talk macro market, crypto, the dangers of algorithmic stablecoins, Aurora Sky shuttering its doors, U.S. cannabis and psychedelics. With the broad equity markets declining for a sixth consecutive week and volatility ruling the day, there was plenty of ground to cover.

Trade To Black Podcast Cliffsnotes:

Macro/Crypto

@1:38 Needless to say, the equity markets have been absolutely pummeled in recent times, with NASDAQ plummeting over 20% over the past 30 days. A drop of that magnitude has only happened 11 times previously, and 9 of those times were associated with a recession. Is recession on the horizon?

@5:20 Why is crypto getting crushed alongside traditional risk assets?

@6:30 This week saw several stablecoins such as TerraUSD UST/USD and Reserve Rights RSV/USD crash after dislocating from the US$1 peg. Particularly associated with TerraUSD, is the market getting a crash course in the dangers of algorithmic stablecoins that are not backed by traditional assets?

@8:32 Much of the crypto selloff is likely retail-driven as investors get cold feet.

Cannabis

@9:23 Trulieve Cannabis TCNNF announced Q1 2022 financial results last week. The panel gives their takes on the numbers.

@11:31 How much more growth can MSOS see in the current environment and especially if SAFE Banking comes to pass in the coming quarters? Anthony explains which cannabis companies sell the best product in Florida.

@14:42 Did Trulieve margins hold up better because of the lack of supply from quality outdoor grows in Florida? Is Florida a good state to grow cannabis outdoors?

@16:15 California Governor Gavin Newsom proposed a temporary tax cut to give the state’s struggling legal marijuana industry a boost. We discuss if it will yield the desired effect for operators in the state.

@19:12 The trend of creating jobs in different markets and labor moving around to where these jobs reside.

@20:27 Bye bye Aurora Sky. Aurora Cannabis ACB is closing its facility in Edmonton after reporting more than a $1 billion net loss in its most recent quarter. The panel discusses the unofficial death knell of the Canadian cannabis bubble, where Aurora Sky was perhaps its greatest symbol of excess.

@22:42 The Canadian cannabis market was a bubble and the lessons learned from it. However, some licensed producers will ultimately emerge as winners in the long term.

@26:38 Unfortunately, many cannabis investors did not sell their stock on the way up and assumed equity prices could keep rising.

@28:13 24 senators signed a letter to leadership of both chambers, asking them to keep the SAFE Banking Act in the COMPETES bill. Momentum for passage keeps rising.

@31:55 Benjamin A. Smith and Anthony Varrell believe it is an excellent time to purchases MSOs and U.S. cannabis component stocks because the worst of the headwinds are behind the industry. The wild card is the potential for macro market melt down.

Psychedelics

@33:52 Atai Life Sciences ATAI comes out with financial results this week. Is there anything to look for beyond the quarterly highlights? And why it might be a good time to dip your toe into select psychedelic names.

@37:13 Retail investors and psychedelic stocks.

@38:45 Cybin Inc. CYBN is getting close to file its first IND application for anxiety disorder clinical trial.

This article was originally published on The Dales Report and appears here with permission.