RCIF II - Five bullet Friday - Issue # 6

    Crypto asset market seemed to have taken a hit this week due to CFTC starting an investigation on Binance. It is in the nature of governments to go after centralized entities like Binance. 2 years from now, there will be a small note where you would hear that binance paid $2 million to settle the lawsuit.

1. During last week, KBTC price went below bitcoin's price for the first time since it launched. As a result, we did not get any income in our Boardroom staking. When the price goes below bitcoin's price, it enables us to convert KBTC tokens to KBOND at a discount. I have converted our KBTC to kbonds, when they were trading at a 30% discount. Now we need to wait till KBTC price crosses bitcoin price to redeem at full value.

2. Last week we did not receive any income in the klon Boardroom staking as KBTC price went below bitcoin. I have changed our strategy to stake our KLON tokens in Uniswap to generate income. This does not produce as much income as boardroom, but it is decent. This only happened in the last 4 days, but generated 1223 KLON tokens as our reward. See our Retained Earnings spreadsheet for more details. These staking details can be seen from Zapper site for our portfolio.

3. After a long wait, YFI finally launched their version 2 vault for YFI. I was expecting it almost 3 months ago, but it arrived. It is generating a superb 165% annualized yield in the form of new YFI tokens. As more people join this vault, it reduces the yield for existing investors.  We have staked our YFI in the Yearn finance vault.

4. Some of you must have noticed that KLON price came down rapidly from $500 to $150. You will not have a token price go up from $10 to $500 within one month, without a good retrace. This is expected due to profit taking from speculators. This protocol is delivering on its promise very well and generating substantial income for us every week. This drop gives us an opportunity to add. Being greedy when others are fearful is my approach. Lot of traders are worried that the KBTC price has fallen below bitcoin's price. I believe this is temporary.

5. I see a number of tokens in the top 20 in Coingecko with tens of billions of dollars in market cap. For example, Ripple, Cardano and Litecoin, which have no use case whatsoever. This makes me feel very bullish as it shows how early we are. When we first purchased SNX in our Fund 1, the market cap was barely even $25 million. Today it is closer to the top-20, with a real use case. It slowly climbed the ranks. All of the stimulus money that our government is printing is going to help boost the market cap of bitcoin and subsequently smaller cap coins.

Have a wonderful weekend!

Warm regards,

Sam Ikkurty

Managing Partner