RCIF II - Five bullet Friday - Issue # 39

    Crypto market sentiment has improved significantly due to the bitcoin price run-up. Our portfolio value moved up a lot during the month of October.

1. Facebook is becoming Meta, a metaverse-first company. Myself and many others see Ethereum, NFTs, Web3, etc as the credibly neutral socio-economic infrastructure that over time will actually connect the virtual worlds into an open metaverse for all. So basically, Ethereum vs Facebook is in a race to create a compelling metaverse.

2. You can see from our portfolio that we are betting heavily on metaverse via our investment in Yield Guild and Adventure Gold. I would bet that open metaverse is the answer to the tyranny of the centralized entities. Some of you know that I am a big fan of Chris Dixon and Naval Ravikant. I heard a good podcast by Tim Ferris, where he interviewed Chris Dixon, who is a managing partner at  A16Z. A16z also invested in Yield Guild and Axie Infinity, AFTER we bought them.

3. KLIMA price dropped heavily today. This allowed us to add more tokens to our position. Most people do not realize that 96% of the tokens are staked. Only 4% is available for others to trade. This causes the pool to be very tiny. So, a small sell will push the price down while a small buy could push the price up a lot. high volatility is par for the course. It is an opportunity for long-term investors. We continue to generate good income from OHM and KLIMA.

4. Another frequent question I get from partners is that how do I know for sure that we are purchasing base carbon tons (BCT) backed by projects in the real world, not some fake offsets. Here is the contract on Polygon for Base Carbon tons (BCT). In figure 2, you will notice that a project tokenized 75k carbon tons. TCO2-VCS-766-2009( the name of the token) represents data about it (Verra certified, ID 766, created in 2009).

5. You can use this site in order to search all the carbon credits issued by Verra. Here is the URL: https://registry.verra.org/app/search/VCS For example, I searched ID 766, with issuance status as 'Retired'. This project is a hydroelectric dam in the state of Sikkim in India. More information is available on the Verra registry. You can also filter with the retirement beneficiary ( which is Toucan's contract address), confirming that carbon offset is retired and cannot be sold again in the offline world. You can also verify the serial number for each carbon offset via the NFT that is minted, as seen in figure 3.

This process guarantees that we don't get any fake carbon offsets. We rely on Verra to authenticate and mint NFTs to capture the serial number issued for each carbon offset.

Hope this helps in assuring that this project will have a massive real-world impact.

Have a wonderful weekend!

Sam Ikkurty