RCIF II - Five bullet Friday - Issue # 9

     Crypto markets have taken a breather in March. I see that a huge number of NFT (non-fungible tokens) are sold by a number of artists for huge sums of money. This trend is a niche use of Decentralized Finance tokens, which I believe will accelerate.

1. NFT market is growing rapidly as it is being adopted by artists, musicians, sculptors and even people who are good at tweeting. They can sell their intellectual creations to others in exchange for Ethereum tokens. Andreessen Horowitz is a big investor in the NFT projects. I came across this site, which explains NFTs in a lot of detail: https://a16z.com/2021/04/02/nfts-readings-resources/

2. We don't have a market leader in the NFT segment of Crypto assets. This prompted me to buy an index of NFT tokens (NFTP) . This index was offered by indexed.finance. NFTP Index weights components according to the square root of their circulating market cap. This data is provided by off-chain oracles. The index is composed as follows:

$ENJ: 23%
$MANA: 17%
$SAND: 10%
$SUPER: 8%
$AUDIO: 8%
$AXS: 7%
$ERN: 6%
$GALA: 6%
$RARI: 4%
$NFTX: 4%

We currently hold 2403 tokens of NFTP. It is also possible for us to get each of the individual tokens if we try to redeem, out of the index. Currently the entire market cap of this index is only a million dollars. You can see this position in Zapper portfolio currently.

3. This week, KLON tokens migrated to KLONX. The total number of tokens shrank from 1 million to 500,000. This is very good news for us, as our stack becomes more valuable. We are the 2nd largest holder of KLONX tokens in the world with close to 19,272.8 tokens in the boardroom. Klondike finance has started their V2 migration and launched a new stable coin that is priced to US Dollar. This will also give us income in the coming weeks.

4. Recently Visa has announced that they will allow free exchange of USDC tokens to US Dollars. They will be settling these transactions directly on Ethereum's blockchain. So anyone who holds ERC-20 token USDC in their wallet, can pay them with USDC tokens instead of US Dollars. This will open the floodgates for a lot of fiat money to enter crypto markets.

5. I continued to add to our Olympus DAO (OHM) tokens last week. We currently hold 1007 OHM tokens. Each OHM token is backed by 1 DAI token. You may wonder, why are we paying $400 to buy a token that is backed by $1? It is because every day when OHM price is above $1 the system mints new OHM tokens and gives 90% of them to stakers. At some point in time in future, I would expect OHM price to go below $1.  By that time, the DAO (Distributed Autonomous organization) would have acquired enough DAI tokens in the treasury that it can buy up big quantities of OHM from the market. Because of these positive rebases, close to 94% of the outstanding tokens are locked up in the smart contract. This is naturally pushing its price above $1 and causing a lot of scarcity.

Have a wonderful weekend!

Warm regards,

Sam Ikkurty

Managing Partner