Sam Ikkurty - Constitutional Rights & Legal Advocacy

Dear Partners,

I was expecting the release of September statements from Tower Fund Services today. They are still working on it as they are backed up due to Covid staffing issues. We have added 36 new investors in September and 31 new investors in October, which increased their workload significantly. Today, they have promised to release on Monday of next week. I apologize for the delay.

1. Number of partners have asked me to switch to large-cap crypto tokens like Ripple or Bitcoin cash. I can explain my positions with a thought experiment. Let us say, you are dreaming. In your dream, you found yourself riding a horse in a big race. In this horse race, there are 100,000 horses all racing to get to the finish line. You looked around and realized that the horse you are riding on is the fastest horse and the leader of the pack. If someone comes up to you, and gives you 2 options. A. Switch to horse #2474 which is trailing behind you B. Stay put on horse #1. What would a rational person choose? Naturally the answer is B. If I ask the same question to 100 people, I am sure I would get the same answer.

2. My point is that it has taken bitcoin 10 years to get to a price level of $10,000 earlier this year. YFI reached the same price point in 3 months. I don't know of any equity, bond or any other asset that moved from $1 to $10,000 in a matter of 3 months. If you know of any other token or equity that outperformed YFI, please let me know. This is the fastest horse that the world has ever seen. If we are already riding the fastest horse in the race, what rational reason is there to switch to a slower horse like Ripple? Besides Ripple treasury owns 100 billion tokens, that will be dumped on the market steadily. In the long term, in order for any asset to be a good store of value, it needs to be scarce. YFI is extremely scarce when compared to even bitcoin.

3. All of you must have received an email asking you to register your email id at our website, www.rosecityfund.com. The user name for your login is your email address. If you have multiple accounts in the fund, like IRA and non-IRA accounts, please sign in with different user ids for different accounts. Our goal is allow all partners to be able to see their portfolio value in real-time via the login. If you have any difficulty in registering, please send an email to [email protected]. Currently, Zapper site link shows our portfolio holdings. However it does not reflect the $3 million we hold in our bank account. It also does not reflect the 700,000 tokens of REN we currently hold in the darknodes.

4. Last week we were unable to collect SNX tokens as we did not maintain the necessary collateralization ratio required by the smart contract. However, this week we have received 5696 SNX tokens and 485.91 in SUSD tokens. We are still able to generate a yield of 38% from our staking operations in Synthetix. In the equity markets it is completely unheard of to generate this kind of rate of return from any company.

5. We are generating good income from our dark nodes running for REN protocol on the cloud platform of Digital Ocean. This week we collected $1260 ( per node $180.12) in new tokens as our toll-booth fees. The full report can be seen here:https://docs.google.com/spreadsheets/d/1QU47tR4eK0fD2ySaP88LM9U46vD7p6mt80KSfqu00DI/edit#gid=982608609. REN protocol had close to zero transaction volume on June 1st. Today it crossed $1.3 billion. So far there are exactly 1197 such dark nodes collecting transaction fees.

Have a wonderful weekend!

Sam Ikkurty

Managing Partner

Five bullet Friday - Issue #62