RCIF II - Five bullet Friday - Issue # 52

    Traditional markets and Crypto markets are going through an enormous draw-down this week. Before this drop, the markets were expecting 10 rate hikes this year. Now it is really doubtful whether the Federal Reserve can really raise rates that high.

1. Western Governments and the EU have imposed painful sanctions on the Russian economy. The day when Russia is cut-off from SWIFT, all the commercial banks are unable to make payments to foreign borrowers. Major banks in Russia have dropped their market cap by 96% in just 2 weeks. When the value of a currency of a sovereign nation drops by 50%, it will affect not only the Russian bond market, but also the stock market as well. SBERBANK is the largest bank in Russia.

2. It is interesting to note that the United Nations pledged to provide $20 million dollars to Ukraine as humanitarian help. The Ukraine Government went into the Web3 model and created a bitcoin wallet address and Ethereum Wallet address to receive funds from the general public. In a matter of 3 days they received a funding of $50 million. This shows the ease of use of Web3 in raising funds for humanitarian causes and the ability to do so in a way, no one can seize these funds.

3. I find it very unsettling to see that 150 million Russian citizens lost their life-savings due to no fault of theirs. This shows you how fragile the fiat money system is. Bitcoin protects against this kind of blackswan events. This resilience is only possible because of a free market which is not within the bounds of manipulation by corrupt bureaucrats.

4. OHM is a big part of our Portfolio. OHM continues to sell bonds and collect close to $1.5 million per day in new assets. These bond sales generate staking income for us. OlympusDAO currently holds a treasury of $445 million. They are about to launch inverse bonds, which is a massive game changer to back-stop the OHM price. This will help boost the price as it implements the backing for the OHM token.

5. KLIMA token is steadily going through cascading liquidations. I realize that price action is very painful to watch. But the fundamentals of KLIMA are improving every day. At the peak of the bull market, we had close to 2500 tokens  of KLIMA. Today, we have 42,524 KLIMA today as a result of our staking income. KLIMA is going to launch Klima Infinity, which allows major corporations to offset their emissions on-chain. This is a major game-changer for KLIMA. Klima treasury now owns 16.3 million tons of carbon.

Have a wonderful weekend!

Sam Ikkurty