Sam Ikkurty - Constitutional Rights & Legal Advocacy

Dear Partners,

Crypto markets quickly recovered from the down draft experienced last week. Many people quickly started talking about the death of bitcoin without realizing what kind of cycles bitcoiners have gone through already. I have been buying bitcoin since 2013 and 30% drops in 2 weeks are just like a walk in the park 😀

1. I apologize for the delay in getting the statements in time this month. Ever since we bought tokens that rebase on a daily basis the supply quantities in our wallets increase and decrease every day. In traditional finance, if you have 100 shares of Microsoft, till you sell it you have exactly 100 shares. In Decentralized finance, to generate income we perform staking, lending, re-staking, supply rebasing, claiming rewards, re-staking claimed rewards to borrow. These are very complex to perform the accounting and keep track of capital gains/losses and also keep track of the income. All of this gets more complicated as we have to deal with numbers with 18 decimals.

2. Many of you may have noticed that the $OHM price was showing as high as $1600. In reality, it never went above $1100 in price. Due to a glitch in the Coingecko API, it got the wrong price info. It did not affect the market but misreported the data. We were buying $OHM token all the way between $250 to $1100.

3. Bitcoin is not a currency, but an asset. It is too volatile to be a currency.

OHM token seeks to be a currency. OHM backs its currency by various assets and provides a steady reserves to back the OHM token. Currently its treasury only holds DAI, but in future they may add bitcoin and ethereum to it. You can think that ohm stakers are collectively acting like Federal Reserve, which manage OHM token similar to US Dollars. OHM has a floor price as there are reserves to back stop the declining price of OHM. Just in one month, 1 ohm has turned into 1.9799 OHMs as you can see below.

4. OHM is currently producing the maximum income out of all the tokens we have. Its supply is increasing at a level of 0.6715% every 8 hours. Let us say, I bought 1 OHM token at a price of $1000 and a month later price dropped to $700. Does that mean we lost 30% of our capital in one month? No, because of the magic of compound interest. Since there 3 epochs in every day of 24 hours, we get 90 epochs in one month. 1 OHM will grow to (1.006715)^90 = 1.82637. We will have 1.82637 OHM in a month. If the price is $700, it is worth 1.82637 * $700=$1278. That means our $1000 grew into $1278 in one month, 27.8% growth in a month or 334% growth in a year!

5. Last week I claimed our Synthetix rewards for 2 weeks in one week. These transactions can be seen in our Retained Earnings spreadsheet. We earned roughly $60,000 for last week and $76757 for this week. These valuations are based on the current price of Synthetix. I had to burn lot of debt as we printed debt when its price went to $28. So, we have to reduce our debt maintain the collateralization ratio of 500%. By the end of this year, I would expect Synthetix to at least reach $60.

Actions speak louder than words. I want all of you know that I personally invested an additional $1 million into the fund myself this month. This is a great time to dollar-cost average into your positions because of the recent drop.

Have a wonderful weekend!

warm regards,

Sam Ikkurty

Five bullet Friday - Issue #88