Insane how time flies. In the blink of an eye, it is already October and 2021 is ending in 2 months time.
The past few weeks had been busy with Mid Terms and exams, and projects are starting to pile up. On the work side, I am happy to announce that I will be working Full Time as an Analyst for Delphi Digital, one of the most renowned research and consulting firm which focuses on crypto and digital assets. It feels exciting and daunting at the same time as now I have to juggle my time management even more wisely now that I have a full-time job while trying to complete my degree.
On Axie Scholarship Business
The scholarship has now expanded to a total of 25 scholars under management. This is a combination of re-investing the passive income from the scholarship in the form of SLP and also injecting profits made from investments and converted to ETH to build more teams and onboard more scholars.
As the scholarship continues to scale, our income in SLP terms has been growing exponentially, but due to the value decline in USD, our passive income has pretty much been the same in USD, which nets around $8000-$9000 USD per month on average.
The goal for the scholarship right now is to ramp up the SLP generated by weaker scholars by up-skilling and coaching the weaker scholars, and promoting potential scholars into a Manager role to oversee a portion of the scholarship as it scales bigger over time.
October marks the 3rd month of running an Axie Scholarship and so far the initial capital invested has already broke even. With the launch of AXS staking, my idle AXS profits are now staking happily in the staking contract, yielding a comfortable ~200% APR that can be re-compounded daily through re-staking the earned AXS.
The next step for Axie Infinity will be the Ronin Decentralised Exchange (DEX), which will bring in the concept of AMM (Automated Market Maker), and even Liquidity pools for SLP, AXS and WETH. This also makes the Axie ecosystem even more frictionless and I believe this will be another major catalyst that will bring AXS closer to its fair value.
AXS currently still look undervalued in my personal opinion (This is not financial advice).
With approximately 13% of the circulating supply staked in the staking contract and treasury accumulating more AXS from breeding, a positive supply shock is imminent for the AXS token when demand eventually outstrips supply (issuance) by a big margin.
At the point of writing, AXS only has a P/E ratio of 7.69x, so most are still going to miss out on this token yet again, despite me calling out AXS being undervalued since it was $10.
In the end, you need to do your due diligence and build the conviction yourself.
With Battles V2 on the way, that means Axie Infinity is going to launch on the Apple App Store and Google Play Store, making it even easier for the mainstream world to onboard the game. V2 also will feature Free-To-Play Axie teams for players that don’t wish to invest financially into the game, but enjoy the game itself. Free-to-play will not feature the Play-to-earn features that current Axie players enjoy, as you need to have skin in the game to reap the monetary rewards.
I expect Axie Infinity to blow up once V2 is live. The graphics, gameplay, engagement will all get elevated to a whole new level. It will shock everyone especially the bears who has been calling it a Ponzi scheme. They will continue to be proven wrong, again and again.
Performance wise, it has been a wild ride. As you can see above, crypto-based returns profile are extremely volatile. But with the increased volatility, you are able to capture insane gains from the markets due to market inefficiency, as well as the tons of undervalued crypto projects that can 10x or 20x upon price discovery.
My returns profile also made the traditional stock market returns look like bond returns when compared side by side, as you can see the volatility difference above.
Originally, I estimated my portfolio to attain a 100k portfolio on my graduation year in 2024. But I guess that is going to speed up thanks to the alpha and profits I made from switching fully into a 100% crypto portfolio. Hopefully attaining that psychological achievement of a 6 figure portfolio by year end but pretty much nothing will change to my way of life. I will continue to re-invest my profits and grow my portfolio.
Some of my best performers (ROI) thus far are:
- Fantom (FTM) – 7x
- Axie Infinity Shard (AXS) – 5x
- ETH-based NFTs – 2x
- Yield Guild Games Token (YGG) – 45%
I went with a concentrated portfolio approach to make concentrated bets on my highest conviction plays. My ETH and FTM allocation is pretty much set, and I might rotate my capital from ETH into other assets based on the market sentiments and whether I can find a project which I am extremely bullish on and make a concentrated bet.
Crypto markets move super fast. A week in crypto is like 1 year in the stock market. Heck, sometimes a few days in crypto is like a few years in the stock market. The crypto market cap is only 2+ Trillion USD right now, so there are still tons of room for growth and we are only in the early innings of what’s to come.
Exponential growth cannot be gauged, because we as humans already have trouble trying to do mental sum for 13*27 without using a calculator, so it will be impossible for us to comprehend an exponential asset class like crypto.
If you are involved in this space, I congratulate you because you are still super early. Crypto is here to stay, simply ignore the fear and doubts, stick to your convictions and eventually the fruits of your labour will present it themselves.
Risk Management is Key
I will have to re-adjust my portfolio goals again as my estimated return is already outdated thanks to the outsized crypto returns. Of course crypto won’t always be rainbows and butterflies too, but if you know how to manage your risk and downside, the asymmetric risk-reward potential is something the investing industry has not seen before and I feel bad for anyone still refusing to learn about crypto in general.
In terms of what I am looking out for the in the following few months, I am planning to bet big on an upcoming Play-To-Earn MMORPG game called EmberSword.
I have talked about EmberSword in my Telegram Group about my successful Land allocation. Essentially, the game model will be different from Axie Infinity but will be Free-To-Play at its core, meaning anyone can play the game.
The Play-To-Earn features will be for Land Owners. Land owners will be able to get a share of the revenue generated from the game with $EMBER token at its core. Players will be able to purchase exclusive Skins and items upgrades using EMBER tokens which are essentially ERC-20 tokens and can be traded for other crypto tokens or converted to fiat currencies like SGD or USD. The amazing thing is that each individual skin or forged items are individual NFTs which are unique and immutable, so no one person will have the exact same skin or equipment.
The land sale has already ended this time round, and I was lucky enough to have my application reviewed and approved by the EmberSword team with an allocation to 1x Regular Plot, which is essentially a piece of NFT and I can build different things on my piece of land, and I get to receive passive revenue streams from the game economy as well as loot drops that can be traded on the market.
Land owners are also entitled to buy a EmberSword badge, which essentially is a unique NFT with finite supply. Badge holders will have early access to the game, flex the badge in-game, and be granted equivalent EMBER tokens when the token officially launches.
For me personally, I have already done deep research into the game, the developers behind and investors backing this project, and thus will be eyeing for a Platinium Badge which will cost me $25,000 USDC to purchase. There will only be a total of 100 Platinium Badges, so I am crossing my fingers that I acquire 1 before it sells out on Sale Day.
With the platinum badge, I will also be allocated with a total of 250,000 EMBER tokens which means I will be able to acquire EMBER for $0.1 USD per piece, essentially making me a Seed Investor for the game.
If Ember were to see a similar trajectory as Axie Infinity, and potentially even bigger given how many players are already involved in MMORPG games, the Ember token might take off in an “AXS-like” fashion and allow me to secure a good bag of profits.
There will be future land sales for the other 3 continents that is set to release in 2022 onwards, so stay tuned for the announcement if you want to get a piece of land yourself. Please also do your own research and due diligence, as none of the above is financial advice!
Another aspect of the crypto space that is gaining traction and seeing billions of asset inflow is Terra’s ecosystem.
With Colombus-5 upgrade, the ecosystem will be burning Luna perpetually as UST gains widespread adoption, and the influx of top-tier protocols and money market projects like Mars Protocol, Orion Money, Nexus Protocol, Nebula Protocol and many more would mean the Terra Ecosystem will be a money market (stablecoins) main stay in the crypto space. Combine that with Cosmos Inter-Blockchain capabilities and the integration with a multitude of bridges, there is no doubt Terra is going to be one of the most used Layer-1 after Ethereum.
As such, I am trying to understand the multitude of new projects that will be launching on Terra in the following weeks and months, so it is going to be an exciting future ahead for Terra.
The Evergrande and China’s domestic economic instability are causing the global economy to shrink further into fear territory. However, whether the contagion takes place or not, I will always remain invested because I focus on the long term and not the short term.
If market really collapse in 1 to 2 months from now, no problem, I will just deploy fresh capital to buy the dip and if market don’t recover for the next few months, I will do just fine.
Always remember not to put in money you can’t afford to lose and understand your own risk tolerance.
The key here is to stay invested at all times so you refrain from actively trading which often leads to sub-par results and losses. It is simply impossible to time the market tops and bottoms, so you might as well ride the wave up.
In the long run, markets will always trend upwards because of productivity and growth, but this might not be the case with the money printing by central banks, which is artificially inflating the market and high inflation will be on the rise in the next few years.
Inflation will eat away at your wealth while you sleep
Those who don’t own any assets will have a tough decade ahead, because inflation will tax everyone regardless of their status or net worth. But again, invest at your own risk. Knowing how to manage risk and balancing risk-rewards ratio is ultimately the key and thinking long term is the most important.
If you think crypto is interesting but you find it hard to learn about them, you can consider joining my telegram group where I share articles, investment opportunities and more research based content on an almost daily basis. You can also ask questions, and take part in polls to see how others think as well!
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For those who are already into Crypto
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What is Bitcoin? Answers here
Or do your due diligence on Bitcoin in my post here where I debunk some of the myths regarding Bitcoin.
What is Ethereum? Simple Guide Here
I did a bite-sized article on Ethereum for you to get a crash-course on what the buzz word is all about here.
Gemini Exchange (My Favourite Crypto Exchange)
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What is Decentralised Finance (DeFi)?
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How to Value Crypto Assets?
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The content here is for informational purposes only and should NOT be taken as legal, business, tax, or investment advice. It does NOT constitute an offer or solicitation to purchase any investment or a recommendation to buy or sell a security. In fact, the content is not directed to any investor or potential investor and may not be used to evaluate or make any investment.