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5. We are currently working on showing real-time information on the portfolio by pulling Zapper data via API. We have provided login info to all of you from the fund website. It is currently work in progress. My default method of sending dividends is via wire transfers. If any of you are getting charged for receiving dividends into your bank account and want to switch over to ACH or Check method of payment, please let me know.
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Five Bullet Friday
November 13, 2020
Five bullet Friday - Issue #64
SI
Sam IkkurtyPermanent Link
Dear Partners,
In the last one week, crypto markets turned around and continued on their bullish trend. This helped us recover from all of our losses from October and gained ground. For example, in the last one week our portfolio positions like YFI moved up by 110%, Aave by 66% and SNX by 20%. While this flurry of activity happens between the traders in the marketplace, we are quietly collecting our toll-booth fees. High volatility causes more trading and more fees to stakers.
1. In the past 2 months, many proof-of-stake tokens have dropped by 70%. I have been following Warren Buffett for 20 years and read all of his shareholder letters multiple times. In November 1974, Buffett gave an interview with Forbes Magazine, which is one of the first interviews he gave as the CEO of Berkshire. The advice he gave in the interview is just as informative today as it was five decades ago. Record number of investors pulled their funds out of the mutual funds in 1974, when that was the best time to invest. My view on Crypto assets now is similar to Buffett, as he said in that article, "Now is the time to invest and get rich".
2. Some partners have asked me why not sell off 50% of our holdings in YFI as we first started buying at $1000. The reason is simple. We barely even scratched the surface of this bull market. At the end of this cycle as we head towards the next bitcoin halving, I expect Crypto markets to reach a high of $5 trillion in market cap. A rational profit-maximizing strategy of betting on the fastest horse relies on the empirical evidence produced by the market. When we bet on any equities like Berkshire Hathaway, Apple, or bonds or gold, it conjures up a lot of intellectual baggage, our cognitive biases and host of narratives pushed by the media. Remember that there is a supply of only 30,000 YFI tokens guaranteed by sheer rigidity of mathematics, whereas our politicians can print infinite amounts of paper money out of thin air on the name of "Stimulus".
3. I continued to add to our position in Hegic tokens. Currently we own 746,089 tokens. We require a minimum of 888,000 tokens in order to stake and receive fees. We have also initiated a small position in AXS token. For some reason, Zapper site does not show this purchase. I hope it gets fixed soon, as Etherscan reflects this purchase correctly.
4. We are actively engaged in proof-of-stake mining on Synthetix helping others trade. We collect 0.3% in toll-booth fees. This week we have generated a staking income ( 620.48 SUSD + 2990 SNX * $4.39 ) totaling $13747. The value of the staked SNX (601283) is $2,639,632 at a price of $4.39. This gives us a yield of 13747 / 2639632, which is 0.5208% per week. If we annualize the yield by (1.005208)^52, it results in a yield of 31.01% APY. This can be seen directly from this website here: https://snx.tools/address/0xE787DEEc0BE77Db98A1294193E2c1600C8a8687d/staking/rewards-claims on the reward claims tab. We currently hold 695,968 tokens of SNX.
5. We are currently working on showing real-time information on the portfolio by pulling Zapper data via API. We have provided login info to all of you from the fund website. It is currently work in progress. My default method of sending dividends is via wire transfers. If any of you are getting charged for receiving dividends into your bank account and want to switch over to ACH or Check method of payment, please let me know.
Have a wonderful weekend!
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