January Market Update
NFT bull run amid prolonged macro dip 🚀🌖
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!
Well, the dip in crypto and stocks continues and those new to the space will soon learn what it means to HODL. During euphoric runs (like in October and early November) there is no better feeling than looking at your bag and buying more with confidence its going to the moon. It is only when we bleed in the streets along with other HODLers that we build the foundation requisite to whether the rollercoaster over the long run. This dip will end and we will pump again. If you have dry powder - deploy it carefully, if you have no powder - don’t watch the price, if you are levered - might be a good time to delever as choosing when to is better than a forced liquidation.
I have been deep in NFT land for a few months now and its as fascinating as Bitcoin and Ethereum were for me in 2017 and DeFi was several months ago and continues to be. The NFT market is largely uncorrelated with crypto markets, stocks, and other asset classes. There are so many interesting elements to to it that I will discuss in a video in February. There is so much hype, but also real innovation and development in the NFT space right now. China just legalized NFTs and Coinbase is about to launch their platform. We may be in the precipice of a NFT bull run independent of when the macro crypto market turns around and pumps again. Based on the decoupling from previous cycles, I don’t think anyone knows what comes next. Historically, we would be entering crypto winter now and this year would bring immense pain and then we should drift the year after (2023) with a bull run that commences around the halving (2024). I think we can throw that playbook out, we are in uncharted waters now and need to ride these ways as they come.
Ethereum is my new top pick, followed by Bitcoin, Terra Luna, Mutant Ape Yacht Club, and WonderLand Money. Ethereum flipped Bitcoin because it has been further derisked with the timing of the London Fork and NFTs. BTC & ETH, along with Luna are ~50% off their all-time highs, but the fundamentals have not changed. The Bored Ape & Mutant Ape Yacht Club has gone parabolic with the BAYC floor at 85 ETH and MAYC floor at 16 ETH (up 10 ETH (167%) since I shared my moon thesis). And what a wild ride it has been for WonderLand Money (TIME)! There was a lot of change this month but the long-term thesis is constant - it is a DeFi Investment DAO. The key asset to track is wMEMO rather than TIME now (it will reflect all the rebases and is more useful). They stopped dilutive bonding, announced some investments and are heavily deploying the Treasury in yield farming and other income generating activities. Price is now sitting at Treasury value so all the premium has been liquidated away. It was a great month to dollar-cost-average (DCA) into a position. And for those that were already in, it was tough to HODL through the dump but much easier when you believe in the team and fundamentals. I am still expecting all asset prices to hit new all-time-highs in Q1/Q2.
The next investment idea is s a digital, Metaverse-ready, next-gen avatar NFT project that could increase by >7x in the next year. I have been so pumped about this since discovering it in early December and can’t wait to share it with you! If you haven’t already, please upgrade your subscription now to receive it.
Make sure to check out our YouTube channel for investment idea videos. I put out a video on how to buy TIME and it covered a lot of crypto basics. However, I am still planning a focused beginner video that covers all the key topics such as the best ways and exchanges to buy crypto, best ways to move it between wallets, and the best ways to store crypto.
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
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.