Sam Ikkurty - Constitutional Rights & Legal Advocacy

Dear Partners,

Crypto markets seemed to have regained their momentum in the last week. Market sentiment is mostly driven by bitcoin as new institutional capital enters via bitcoin. We are working on getting the 2021 K-1s issued by the first week of April.

1. Recent macro events are making me more bullish on bitcoin. On 26 February 2022, the West decided to confiscate the reserves of a sovereign nation held in a variety of G10 currencies.

The Russian central bank had almost $600 billion of assets seized by the western countries. The reserves maintained by the Russian central bank are the Net Savings of the country which are acquired by selling raw commodities and finished products and services. Since all the oil sales are denominated in dollars, their reserves are in dollars. If the currency becomes worthless, all assets denominated in that currency also lose value.

2. The same exact fate was imposed on Afghanistan's central bank. They had their currency backed by dollars, where their central bank was holding reserves in dollars with the NY Federal Reserve Bank. The USA seized Afghanistan's $7 billion worth of reserves. This is a wake up call to many other nations to diversify their holdings out of dollars. Ray Dalio recently wrote extensively about the time for the world to switch to a new reserve currency.

3. The above two points talk about the need for the world to have a decentralized global reserve currency, which is not controlled by any country and it should be credibly neutral. Bitcoin is an asset and a good store of value. But bitcoin is bad as a medium of exchange or as a unit of account. We need a currency that is backed by money, which is a store of value. OHM is a decentralized global currency that is backed by bitcoins, ethereum and a host of other assets. As the reserves of OHM increase it increases its network effects and cements its position in DeFi markets. I see OHM as the true competitor to bitcoin. Remember that it has taken bitcoin 4 years to reach a market cap of $1.5 billion.

4. KLIMA has announced a partnership with C3 to build a new bridge to bring more carbon on-chain. Klima is partnering with a company in the Off-chain world known as Aither, which is a number one trading partner in the real-world with $1.1 billion in revenue. Despite being in the market only for 5 months, Klima is able to enter into partnerships with huge companies in traditional finance.

5. I am watching with a lot of interest a new coin called APE. Yuga Labs announced that 62% of the 1 billion APE token supply would be allocated to the ApeCoin community over time and 15% of the supply given to the NFT holders of the Bored Ape ecosystem. The initial excitement for this project is very high due to its game changing tokenomics. If it succeeds in its vision this could become the currency for the metaverse itself.

Have a wonderful weekend!

Sam Ikkurty

RCIF II - Five bullet Friday - Issue # 54