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Five Bullet Friday
January 22, 2021
Five bullet Friday - Issue #74
SI
Sam IkkurtyPermanent Link
Dear Partners,
This week the crypto asset market has taken a hit and dropped by 10% in a day. This was due to the comment from Janet Yellen about curtailing bitcoin's usage. Bitcoin stands in the way of currency debasement from central banks. So, it is natural that they hate it but there is nothing they can do about it. Microstrategy CEO, Michael Saylor announced on CNBC that he will be doing a bitcoin conference to the 1000s of participants who are the CEOs of major corporations in S&P 500 to help them acquire bitcoin as a treasury asset.
1. We continued to add to our position in $BUILD token. Since it has such a small market cap, we already own 20% of the outstanding tokens. All the transactions of RCIF are public, auditable and immutable. This has allowed other people to analyze our trades on Ethereum blockchain and someone wrote this article analyzing some of our trades.
2. I have been following $XVIX when its price was close to $8, but did not pull the trigger. They have completed the audit of the code which gave me more confidence to enter a position. XVIX is a competitor to Synthetix and Synlev. It allows users to buy leveraged ETH tokens upto 10x leverage and allows the token stakers to receive the trading fees. In a bull market people tend to trade heavily with leverage. I like to position our portfolio for the bull market that will continue at least till the end of 2022. Our position is XVIX is only reflected on Debank site at the moment, but not on Zapper.
3. Most bitcoiners have not entered into Decentralized Finance (DeFI) markets to produce yield. We currently hold 113,589 tokens of $BADGER. These tokens are providing us a staking yield of 43%. This week we received 1.8598 tokens of DIGG as staking income, which is the same as 1.8598 tokens of bitcoin. DIGG tokens algorithmically track the price of bitcoin. This staking operation gives us income in the form of bitcoins.
4. YFI launched its version 2 smart contracts last week. This has not increased the price yet, but it is a big catalyst that will help for months to come. Synthetix has launched its level 2 platform and changed the interface. Now our staking rewards from last week are around $53,458. Our synthetic debt we have continues to grow with the value of SNX tokens. If we never plan to sell our SNX tokens, then we never have to pay back our debt. What we call 'debt' on our balance sheet is the same as an asset for traders. This synthetic debt is used by traders and the smart contract collects transaction costs.
5. Ethereum is growing at an astounding pace when compared to bitcoin. The fees generated is a good proxy for the usage of the network. DeFi markets grew from $780 million last year to $23 billion today. In the next two years, I expect this to grow to $500 billion. As the saying goes, actions speak louder than words. I have invested an additional $300,000 personally into the fund starting from January 1st. Let this be a signal amongst the chaotic nonsense put forward by the media.
I have been following up with Tower Funds for the December statements. They promised to send them on Monday (1/25) of next week.
Wishing you all a wonderful weekend!
warm regards,
Sam Ikkurty
Managing Partner
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