March Market Update
Web3 markets heating up after crypto winter
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Last month, I mentioned that we could be near an inflection point for market sentiment towards crypto and growth stocks and it could be a good buying opportunity. Based on the markets reaction since the Fed meeting last week, it seems like that transpired. The NASDAQ100 has pumped ~14% since the trough last week and Bitcoin and Ethereum are up ~15% for the month. With spring in the air, it feels like we are emerging from a cold, dark, 5-month growth stock & crypto winter that has decimated portfolios. If this is a structural change in investor sentiment, we could see market hit new all-time-highs in the next couple of months.
Currently, my top investment ideas are CloneX, Mutant Ape Yacht Club, HAPE Social, Terra Luna, Ethereum, MicroStrategy, and Bitcoin.
CloneX has continued to build hype towards the reveal of the MNLTH airdrop that may happen next week. Remember this is Nike’s first NFT and the community has been working on challenges to crack it open - expectations are high and RTFKT has a track record of overdelivering. Also, all Murakami Drip Clones will receive an airdrop from Takashi Murakami’s new NFT collection, Murakami Flowers.
HAPE continues to build and rolled out a more detailed roadmap with a lot of deliverables for the rest of the year and airdropped HAPE badges to the entire community as well as allowing those without HAPEs to get non-holder badges to grow the community and create inclusivity. These badges will provide exclusive access to HAPE events, merchandise, and future drops. Despite the struggling floor price, I am still bullish on the project.
Yuga Labs, the company behind Bored Ape Yacht Club (BAYC+MAYC+BAKC) finally launched ApeCoin. The coin will be used for culture, gaming, and commerce in the Metaverse. Check out my video for more details on ApeCoin and my take on it as an investment. Yuga also released a teaser for their own Metaverse called “Otherside” that will launch in April. With their acquisition of Larva Labs (Crypto Punks), the success of BAYC, and now ApeCoin and the coming release of Otherside, Yuga is well positioned as the #1 Bluechip Web3 investment play for the long term.
Terra Luna has continued to show strength throughout crypto winter and is very close to its ATH. Deflationary economics continue to burn Luna along with increasing demand for UST (US$ Stablecoin). UST has been backed by Luna since inception, however, it will also be backed by Bitcoin going forward. Luna has plans to purchase >$10B of Bitcoin to add to its reserve and position UST as THE decentralized stablecoin of Web3. This is very bullish as it lowers risk, strengthens credibility, and creates new bonds between Bitcoin and DeFi and their communities. Bitcoin is the ultimate decentralized digital store of value and UST is the ultimate decentralized digital cash.
Ethereum’s much anticipated merge to Proof of Stake (PoS) is coming. This is one of the top catalysts for ETH’s anticipated price appreciation as it will increase decentralization, security, scalability, sustainability, and make the monetary policy deflationary. This means just as the entire network becomes much stronger, there will be less ETH in circulation.
MicroStrategy has been beaten up pretty good and has vastly underperformed Bitcoin. This is typical with equities, they usually exacerbate the moves of the underlying commodity / asset due to different trading dynamics and expectations. When Bitcoin pumps again, MicroStrategy will pump harder.
Bitcoin continues to formidably flow into all crevices of the old-world financial complex. This last month we have seen how Bitcoin is being used by Ukrainian refugees to salvage their wealth as they traverse boarders, Russian citizens that are also trying to protect their Ruble denominated assets from complete and utter annihilation in the face of bank runs and unarecendeted economic warfare, Russia for the sale of their oil & gas and other commodities, countries looking to join the new financial world order, and global asset managers, and…., and…, and…the list is endless. You know the old boomer saying, “Cash is King”…well the merciless and corrupt fiat King has been dethroned - Bitcoin is King.
WonderLand Money has been very disappointing. I knew it was a frontier play and very risky as I mentioned in my initial write-up. WonderLand just completed its process for those that wanted to exit the project. They plan to find a new Treasury Manager and continue with the original roadmap to become the ultimate DeFi investment vehicle. The current Treasury backing is about ~$33k and the price of wMEMO is ~21k. I plan to HODL and see if they can turn the ship around, and if not they will allocate the Treasury assets among wMEMO holders. In either case, I believe there is more upside than downside right now.
As with rocketry, on my quest to pick moonshot investment ideas, there will inevitably be some launch failures and catastrophic malfunctions. But that must not preclude the pursuit, for without calculated risk we will never experience reward. Fortune favours the bold, the risk takers, those of us in the arena that stumble and get back up, not the critics and timid who will neither know victory nor defeat.
For 99% of people in the world, the only way to get exposure to Web3 is to do it themselves. The old guard thinks Web3 assets are “too speculative” (meaning disruptive to the status quo and them) and they need to shield naive and ignorant retail investors from themselves. Yet, they encourage casinos, sports gambling, investing in their baseless IOUs in the form of Treasury debt, and buying worthless lotto tickets with inconceivably horrible risk / reward propositions. So for now, you must do it yourself. And that’s what I hope I am helping you accomplish. In the early 1990s the old guard said tech stocks were “too speculative” and they warned against retail portfolio allocation, in the 2000s they said to allocate 3% of your portfolio, in the 2010s they said 5%, today they say 10%. If you are not a tech company today, you are irrelevant and are facing evanescence. That’s why tech companies dominate the league tables of the NASDAQ, S&P500, and Dow. All those that didn’t evolve into tech companies faded into the abyss. Your portfolio should reflect the future, not the past. Always think for yourself and do your own research. The old guard is not your friend.
The next investment idea is the ultimate DeFi layer 1 blockchain and could increase by >10x in the next year. If you haven’t already, please upgrade your subscription now to receive it.
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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.