Five bullet Friday - Issue #78

   Today is a remarkable day in the history of bitcoin. It crossed a market cap of $1 trillion. I remember my first purchase of bitcoin at $100 back in 2013, but would not have imagined that it will grow into a market cap of $1 trillion in a matter of 8 years. I think the next big target is when it crosses the market cap of Gold which is at $8 trillion. I expect this to happen in the next 4 years both as a result of gold's price dropping and bitcoin's price rising against gold.

1. I apologize for the delay in getting the January statements. Tower Fund Services is severely understaffed and not getting responses quickly. I have processed all the distributions for January. However, I do know that 7 of my ACH transfers bounced but I do not know the names. Banking industry in the US is so far backwards in time and every tiny action requires me to visit the banks and show my id, just to send a few wires or ACH transactions. Some of you have not received the distributions, and it will be rectified as soon as the beginning of next week. I appreciate your patience.

2. I received a number of questions about not tracking the income of KLON tokens. Please note that this protocol is only live for 2 weeks and it is NOT integrated with zapper Portfolio tracker or Debank portfolio tracker. I am sure this integration will happen soon. Please vote here, and ask the Zapper development team to integrate this protocol. I have added a new tab in our Retained Earning spreadsheet to keep track of the income derived from KLON token. Going forward, you can directly check this link for our weekly income.

3. This new tab in the spreadsheet requires some explanation. As of now, we hold 15206 tokens of KLON (Klondike Finance). Most of them were purchased between $10 to $30. I have even added at $100 recently. We received our income in the form of KBTC tokens. These tokens are cumulative in our wallet till I claim them. When I claim these tokens, it will be moved out of the smart contract and into our Wallet. Once it is in our wallet it can be sold immediately to US dollars. The yield we are generating today is simply extraordinary. We already hold close to 20% of all the outstanding tokens in this protocol.

4. Every day, when the price of KBTC is higher than Bitcoin, we get more staking income. Column B shows the cumulative value of KBTC we received. Column C shows the market price of KBTC. Column D, subtracts the previous week's amount to calculate the income for the current week. Check the formula in Excel. I calculate weekly income by multiplying our KBTC tokens we received with market price on Friday in Column E. Column F shows the market price of KLON. Column G shows the number of tokens we staked. Column H calculates the value of staked tokens in dollars by multiplying the F and G. Column I calculates weekly yield by dividing the weekly income by the value of staked tokens. Column J simply takes the Weekly yield and convert it to annual yield. Column K helps you verify the numbers based on a screenshot. Once this protocol is integrated with Zapper you will be able to track our income directly on Zapper or on Ethereum's blockchain.

5. KLON at this point is a competitor to Synthetix but much smaller. When we first started acquiring KLON market cap was less than  $1 million. Today it is close to $10 million ( 80000 tokens * $130 market price).  I am impressed by the algorithm's clever design. Whenever, KBTC price goes above bitcoin the protocol automatically converts KBTC to BTC and stores it in the stabilization fund. This stabilization fund is already worth $1.8 million. It reached this number in just 2 weeks! This will keep growing steadily and protects the price of KBTC from going below bitcoin. Over time, people can introduce their own synthetic tokens that can track any real world asset or crypto asset without requiring collateral in the way Synthetix operates. As of now, measured by income potential, KLON is the fastest horse in our stable!

Have a wonderful weekend!

Sam Ikkurty

Managing Partner