Five bullet Friday - Issue #85

    NFT protocol tokens are getting a lot of traction in the crypto asset market. It is enabling artists, musicians and gamers to sell their NFTs at huge premiums on fully decentralized platforms. NFTs are currently tokenizing digital art, but eventually it will cover both real-world and digital items.

1. I continued to add to our basket of NFT tokens as in Index. Right now, it is too early to say which protocols will gain market value, hence it made sense to buy the largest basket. A new index token called, Metaverse Index ( Token: MVI) was introduced just last week. This new token is much more diversified than NFTP token. I am adding to the MVI this week.

2. Klondike finance is making us a lot more money than any other token in our portfolio at the moment. This week we are receiving staking rewards of a Synthetic token, KXUSD. This KXUSD is not listed on Coingecko yet. Klondike is starting the supply with 50,100 tokens of KXUSD which is a stable coin pegged to the US Dollar. Since we are the largest holders of KLONX, we received the largest stake than anyone else in the world. We have received 17.24% of the supply.

3. Just because KXUSD is pegged to the dollar does not mean, it will start trading at $1. There are only 50,100 tokens to start. Very few people will be selling it as it can be used to farm KLONX tokens.  This creates demand for tokens. Even though we already own 17.24% of the supply, I will be a buyer of the tokens. If others also think like me, then it would get even scarcer and the price could go higher. If the price stays above $1, then the protocol will keep increasing the supply and gives us daily staking rewards. The largest exchange to buy is Uniswap, which only has 2500 tokens available for sale.

4. An interesting development from last week was that the total market value of Crypto Assets has exceeded the market value of all the banks in S&P 1200 index. This has happened for the first time in history. Anytime I visit a bank branch to send a wire transfer, I wonder why I need to visit this brick building when all the money is in digital format. I can see that the entire banking system needs to adapt quickly and cut costs to survive the competition from the DeFi markets.

4. We collected our Synthetix rewards of 2457 SUSD and 4286.80 tokens of Synthetix. The value of these tokens is $93, 852 as seen in our retained earnings spreadsheet. As long as we hold Synthetix, we will have Synthetic debt on our balance sheet. It need not be repaid, if we never sell Synthetix. What we call as 'debt' on our balance sheet is the assets for the traders on the Synthetix exchange. It is expected to grow with time. We currently hold 766,998 tokens of Synthetix.

5. I continued to be impressed by the Olympus DAO. We are currently amongst the top 5 holders of this token in the world. We hold around 1182 tokens. Since the price of $OHM is selling close to $700, it is generating a lot of positive rebases. Algorithmic stable coins are measured by Protocol-controlled value (PCV), which is currently very high in OHM. Based on the market dynamics, I don't think its price will ever go below $1. But if it happens, the protocol has a lot of reserves to support the price.

I continued to be bullish on OHM.

Have a wonderful weekend!

warm regards,

Sam Ikkurty

Managing Partner