April Market Update
Web3 assets set for spring melt-up 🚀🌖
Thank you for your ongoing interest in the August Cove Investment Club!
I sincerely appreciate your support and am overwhelmed with the positive feedback and interest in the Club. Like a swarm of cyber hornets, we become more formidable with size. So please share with your friends and invite them to join - let’s grow our Club!
The stock and crypto markets have been bumpy over the last month while blue-chip NFTs pumped. With the markets pricing in parabolic rate hikes over the next few months, if we see anything less transpire we could be set up for the next big pump across all markets, specifically Web3. Bitcoin’s illiquid supply ratio is close to an all-time high and each time it has reached this level in the past we have gone on to rally. And the NFT market seeing record daily user growth that will only increase with Coinbase NFT’s official launch (just entered limited Beta stage a few days ago) just around the corner. This feels like the Spring of 2017, when Initial Coin Offerings (ICOs) dominated the crypto space and blue chips and alts started their parabolic moves that lasted through year-end. The amount and pace of innovation and adoption in Web3 is astounding. Each day Web3 disrupts a little more of the old world order just like the internet did in the 90s. Yet, we are still so early and very few actually see what is happening. The end of the song in the post captures my thoughts on Web3
“Life, and it's like, you know, you can look a gift horse in the face and not know what you lookin' at
And I feel like, you know, I'm lookin' at the gift horse
I'm just one of the ones that notice what I'm lookin' at
You know what I mean? It's actually an incredible time
It's like a gold rush, it's never been a time like this in our generation
It's our equivalent of the Gold Rush with everybody movin' to California
This technology has empowered everybody
And it's giving people, you know, it's as big as you wanna make it and, you know, it's as far as you take it
And we can quote a gang of things going on in the world right now
Or just, you know, accept it as being true
But, you know, it's like, man, giants gon' crumble
Big-big companies gon' crumble
New companies gon' pop up outta nowhere and it's-it's gon' be dramatic
And I believe that”
As of the inception of the Club to date (9 months), equally weighted Portfolio performance would be ~70%. My top performers are MAYC, CloneX, and Terra Luna and worst performer is WonderlandMoney.
Currently, my top investment ideas are CloneX, Mutant Ape Yacht Club, HAPE Social, Terra Luna, Ethereum, MicroStrategy, Bitcoin, and Fantom.
CloneX has continued to build hype towards the reveal of the MNLTH airdrop that has been expected over the past month. It seems it could happen in the next few days. Murakami Drip Clones were able to mint Takashi Murakami’s new NFT collection (Murakami Flowers) for 0.07ETH at the end of March. The price on OpenSea has traded between 5-10ETH over the past month. RTFKT keeps spewing value to their community, and I think this is just the beginning. In May/June Takashi will have an exhibition at the Gagosian in NYC, where he will display never-before seen physical and digital works that will include the CloneX collection.
Yuga Labs, the company behind Bored Ape Yacht Club (BAYC+MAYC+BAKC) is expected to do an airdrop and public sale for land in their Metaverse called “Otherside”. The sale will be in ApeCoin and is expected any day now. However, a likely date is April 23, as that will mark their one year anniversary.
HAPE launched their new site, and it’s so cool. Also, they announced a partnership with Highsnobiety - a major brand at the intersection of youth, culture, and street fashion. They will use their extensive network to foster collaborations. This is a huge accomplishment and I’m surprised there isn’t more hype and price action around it. HAPE all announced a collaboration with KaijuKingz - an emerging Metaverse and Play-to-Earn (P2E) project. Floor price has taken a beating over the last month, however, I still believe in the team and what they are building.
Demand for Terra Luna’s UST coin continues to rocket and UST is now the third largest stable-coin by market cap (behind Tether and USDC, which are not decentralized) and is projected to become the largest within a year! This means huge upside for LUNA.
Ethereum’s much anticipated merge to Proof of Stake (PoS) has been delayed to late summer. The dev team is prioritizing precision and faultless execution ahead of time, as they should be.
Bitcoin’s current investment proposition may have never looked better. The setup is very rare and may lead to another parabolic move in the next few months.
WonderLand Money is very close to securing a new Treasury Manager - TheSkyHopper/Bastion Trading. Also, Dani has been more active and I hope to see more of that. Wonderland has also announced a Revenue Sharing opportunity for staked wMEMO holders - this will allow holders to reap benefits like airdrops and other rewards in addition to Treasury growth and price appreciation. Over the last month, wMEMO rebounded to $31k (highest since the collapse from ~$100k in January), but is still ~$10k off from the Treasury backing price. I am looking for wMEMO to break-out above $31k and close the gap, and maybe even trade at a premium. I continuously evaluate this investment based on risk/reward and opportunity cost. Right now, I think the risk is low and the short-term reward is closing the gap and long-term is their master plan taking shape with a new Treasury Manager in place. However, what really keeps me up is the opportunity cost of waiting. For now I will HODL, but it may be more prudent to redeploy the capital to one of my top investment ideas.
The next investment idea is the FIRST currency of the Metaverse and could increase by >10x in the next year. If you haven’t already, please upgrade your subscription now to receive it.
Go view the April Portfolio Update video now and check out our YouTube channel.
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Investment Video Archive
Investment Ideas Are Everywhere - Learn How to Spot the Signs
December Portfolio Update - Parabolic Phase Delayed to Q1 2022
Beginners Guide to Buying & Staking WonderlandMoney (TIME, MEMO, wMEMO)
January Portfolio Update - NFT Bull Run Amid Prolonged Macro Dip
CloneX by RTFKT Studios - The Most Ambitious NFT Project and the First Metaverse Megabrand
Crypto for Beginners: How to Buy | Transfer | Store | Earn Rewards
February Portfolio Update - Maximum Pain May Finally Create an Inflection Point
March Portfolio Update - Web3 Markets Heating Up After Crypto Winter
To the moon and beyond,
Andrew
Disclaimer
The content of this letter is for informational and entertainment purposes, and should not be construed as personal investment advice.