This writing is about which projects we have mentioned this year that we just aren’t as excited about today. You can’t win them all in any market and it is important to recognize if your thesis has changed. I also mention projects I recently bought and why.
Summary of our Recent Wins
For those of you who have been reading along since our soft launch this summer, you know we love Polkadot. You may also have read how we “sold the news” between 45-50$ expecting a sell off. I focused heavily on dot this last market flash crash grabbing the amazing discount price around 32-35$. I chose to stake DOT on the Kraken exchange (12% APR) to diversify where my crypto funds are located. I find the immediate unstaking to be attractive, also I can move my DOT quickly if needed. I also would like to mention that staking DOT directly on chain is rather involved and quite annoying.
Terra LUNA was big buy for me the first week of October when I sold a decent portion of my Cardano. These last few weeks I have been adding more Luna between the 39-42$ range, it seems to be moving upward as we had hoped. LUNA has use during times of uncertainty users can burn their LUNA for UST, a stable coin (equal to 1 USD each) and earn 20% APR in a safe manner. LUNA also recently added a burning mechanism like Ethereum. Tokens that are “burned” reduce the total supply, creating value.They added the interoperability that the Cosmos blockchain provides with the IBC. LUNA did state they had about 160 projects slated for launch on the blockchain next year [1].
Avalanche clearly was a big win these past few months. We did add the project to a research portfolio around 18$ in our main chain article, we then covered Avalanche again when it was around 50$. MoC also wrote a recent article about why he was adding more AVAX on November 3rd. AVAX was in our top 5 safe picks list in November also. We expect AVAX to build up for a few weeks with the next price target around 225$. Besides price action, Avalanche has been a joy to use relative to Ethereum. Avalanche has Ethereum interoperability from the ground up while also having unique features.
Ultra (UOS) has been a major win for us these past few weeks. We started buying this project on Kucoin and have been dollar-cost-averaging and adding the tokens to the Ultra Wallet for safe keeping. Here is an in depth writing on [Ultra]. Ultra is a safer gaming exposure because is aims to be an entire platform for developers to launch blockchain focused games. Rather than investing in a single game, we are investing in a usable product for years to come. Ultra aims to eat away at the market cap of Steam and other competitors. We recently checked out the future games releasing on Twitter, and they look stunning.
What Have I Sold?
A major speculative bet that I bought a few months ago was EOS. I have convinced myself that EOS is filled with empty promises and even if the Bullish exchange drops, I am not willing to wait for the party when so many other exciting projects are booming. EOS raised record breaking funds and just has nothing to speak for all that money they were provided, month after month. The more I look into it the more I get this feeling that the entire project was one big scam, they are missing the entire bull market. With this said I have sold all of my EOS, now there is still some logic to holding some in hopes for the Bullish exchange to drop, but I am not willing to wait.
My thesis on Dexs has changed also. Dexs are generally used to swap tokens along with farm rewards by providing liquidity. The issue with this is that large investors come to the tokens just to farm them and dump them on the market, this is incredibly lucrative if you have enough money involved. That said I will buy Dexs if they are new in an emerging blockchain system such as JOE on AVAX, but I am not very excited about larger cap Dexs or AMMs such as Uniswap. With this stated I am out on Sushi, the project is amazing, but it is just being farmed too heavily, it is worth farming but maybe not buying to hold alone. I have no shame in announcing my thesis has changed, this is how we learn and grow.
I did sell all of my Convex Finance; my last sell was at 30$. I did this right before the crash in September because I wanted stable coins available. Now Convex I am still VERY bullish on, but the Ethereum fees make it very painful to dollar-cost-average. Convex is a great long-term hold but I am swing trading narratives more and more these past few months. If you look back at most of our recent plays, they are not simply on Ethereum Uniswap etc. We want newer users to be able to participate without spending thousands of dollars in fees. We also do not enjoy these massive fees ourselves.
Now this one is painful. I sold the rest of my Cardano(ADA) this weekend. Cardano has failed to deliver during this bull market and has overall remained stagnant when so much opportunity arises all around it. The market cap is too big to provide the gains I am looking for in the next few months from each pick. Cardano also concerns me lately because it seems that developers were surprised by the model they were presented. Yet “1000” developers are building on Cardano. If I have learned anything this year, investing in projects that do not have a product is not something I am really into. Cardano has a massive following, but I am just not convinced they will deliver for a long time. I will reapproach this topic when they start launching dapps. I am hopeful they will, but holding Ethereum makes more sense over ADA these days.
Please remember none of this is financial advice but I want to be as transparent as possible about my decision making and portfolio moves. Please do your own research, stay safe, and thank you for reading.
