Cryptonary Portfolio Update Pt. 2

It has been a volatile few months in the crypto market. However, one of the constants in crypto is the rate at which projects move forward in their development – there’s always something going on. There have been a few changes and developments, both good and bad, to the projects that we have invested in over this period. Below is the second and final instalment of the portfolio updates. Part 1 can be found here.

 

Disclaimer: THIS IS NOT FINANCIAL OR INVESTMENT ADVICE. Only you are responsible for any capital-related decisions you make and only you are accountable for the results.

 

Polkadot (DOT)

Polkadot has been developing parachains for a while now, and it appears that they will be coming to fruition in the next few months. Parachains are custom blockchains built on top of the Polkadot core chain, called the relay chain.

  • Validators secure the relay chain by staking DOT and voting on consensus, as well as validating proofs from collators.
  • Collators are nodes that maintain the parachains by producing state proofs, which are then validated on the relay chain.

Each parachain is completely customisable – parameters such as transaction fees, block time, governance, and mining rewards can be set by the project using the parachain slot depending on their needs.

Kusama is a sort of testnet for Polkadot with a function similar to THORChain’s chaosnet. It allows for developers and projects to test blockchains/parachains or applications in an active environment that mirrors the functionality of Polkadot. The first parachain was launched on Kusama at the end of June 2021 and has largely been a success, paving the way for Polkadot’s first parachain launch. The timeline for this is not set in stone yet.

XRP

The XRP v SEC case has been running for what feels like a lifetime (in crypto time). We substantially reduced our allocation to XRP around December 2020 as we believed that the involvement of the SEC would bring about a lot of negative press and fear, and our capital would be better used elsewhere. XRP was subsequently delisted from most of the major exchanges. This was around about the time Bitcoin broke the previous all-time high of ~$20k, initiating the bull run-up to the $64k high. Considering the market conditions at the time, the move turned out to be profitable; as the entire market followed BTC to new heights, XRP was left behind.

There has been an interesting development recently in the ongoing case.

  • In June 2018, the then SEC director William Hinman stated that BTC and ETH would not be treated as securities.
  • Subsequently, Ripple’s defence has acquired approval to depose Hinman and scrutinise his statements surrounding the SEC’s stance on crypto at the time.
  • The purpose of the deposition is to shed light on whether his statements were representative of SEC official policy.
  • Ripple’s defence centers around the belief that Ripple was not provided with fair notice that the SEC intended to treat XRP differently from BTC and ETH.

Mina Protocol (MINA)

Mina is still in the early stages of development and the stagnant price action that we have seen over the last few weeks reflects that. As stated in the first iteration of our portfolio updates, development adds value which is reflected in the price. Mina protocol is in an accumulation phase, and so it is unlikely we see any significant developments in price action or project fundamentals over the next few weeks.

The audit of Clor.io, although minor, is a positive sign that things are heading in the right direction. With the recent hacks that we have seen across various protocols, auditing is becoming an essential aspect of any crypto project. Installing confidence in projects is key to adoption, and audits provide credentials that investor and user funds will be secure.

FTX Token (FTT)

Fundamentally there has been no changes to FTT; however, there was one interaction on Twitter we noticed that interested us.

Sam Trabucco is a quantitative trader at Alameda Research, and he couldn’t have been more upfront – Alameda has been accumulating FTT at these prices. The tweet had a visible effect on the price:

There are no other notable changes for FTT.

Serum (SRM)

Serum is the core automated market maker (AMM) of many protocols built on Solana, and as such, it rarely changes – if it isn’t broke, don’t fix it. Nearly every protocol built on the Solana blockchain leverages Serum on-chain orderbooks in some form or manner. Thus, Serum has indirectly experienced steady growth at the same rate as the growth of the Solana ecosystem. Below are the most recent tokenomics for SRM along with the volume on the Serum on-chain orderbooks. There have not been any notable fundamental changes to Serum, as it continues to operate quietly in the background. In this case, no news is good news.

serum volume bonfida crypto

 

 

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