Five bullet Friday - issue #127

Dear Partners,

   Crypto markets are gathering some positive momentum in the last week. This is mostly driven by the positive sentiment around bitcoin. Most institutional investors enter crypto markets first via exposure to bitcoin as it has the longest and most reliable chain. Our portfolio is steadily generating income, as can be seen in our staking income spreadsheet.

1. Most major institutions from Wall Street seem to think that we are going to have 7 to 10 rate hikes this year. This is coming from the big traditional finance players like Goldman Sachs and Bank of America. I seriously doubt if this can happen this year. The Federal Reserve is constantly buying bonds ( i.e printing money) even today. What happens to the market when this engine not only stops buying but selling? They already control 40% of the market in most junk bonds.

2. With each passing day, I get more bullish on Ethereum. Ethereum protocol's implementation of EIP-1559 has made ETH a very scarce asset. Currently the inflation rate of Ethereum is lower than bitcoin today and it will continue to be lower for the foreseeable future. The fees collected by Ethereum miners is almost 100 times more than bitcoin. These are two fundamental drivers of value to the ETH token.

3. This week we purchased a hectare of land in Amazon forest as an NFT. This project was called the Blue River project which was selling 50 hectares of the actual pristine Amazon forest in order to prevent some big companies  from acquiring it and burning it to plant palm oil trees. This is not an artwork like other NFTs. This is a real piece of real estate that stands like a greenwall around the Amazon forest so that no one can encroach inside the vibrant ecosystem.Here is the link with latitude and longitude of the piece of land.

4. I continue to be bullish on OHM protocol as a number of developers are building a vibrant ecosystem of DeFi protocols with OHM as the reserve currency. Electric capital does a yearly analysis of the number of developers working on a project by analyzing Github repositories. I was amazed to see 60 developers working on building new apps on the top of OHM as reserve currency.

5. We continue to add to our KLIMA position. We have added an additional 5000 KLIMA tokens to our current stack. The total market cap of KLIMA is now at $100 million while it is sitting on $120 million worth of treasury assets. It is just like buying a dollar for 80 cents. I came across an interesting video made by someone on KLIMA.

Have a wonderful weekend!

Sam Ikkurty