May Market Update 🐻🛠
Bear Market Builders
Well this has been nothing short of a gut-wrenching month for all investors, but especially for tech stocks and crypto. It seems like everything has been in free-fall since the end of April. Global equity markets and crypto have all officially entered bear market territories. Sell in May and go away is a common saying, but may have never been more poignant than this year. Although, it seems that inflation may have peaked already and the worst (in expectations) has already been priced in. Crypto and Stock Twitter sentiment is close to all-time low and everyone feels a bit sick when they think about tech stocks and crypto. This type of environment usually marks a bottom. I’m concentrating funds in projects that are continuously building, shipping code, and innovating on the frontier of Web3. Who knows where we go from here, but I’m not leaving.
As of the inception of the Club to date (10 months), equally weighted Portfolio performance would be -15%. My top performers are MAYC & CloneX, and worst performer is Terra Luna.
Currently, my top investment ideas are CloneX, Mutant Ape Yacht Club, Ethereum, ApeCoin, HAPE Social, Bitcoin, MicroStrategy, and Fantom.
CloneX continues to delight and awe as they finally revealed what was inside the MNLTH, showcase their masterpieces at the Gagosian in NYC, and announce new drops and developments. Next week they are expected to share more news about Space Drip Forging, IRL merchandise, speculative Louis Vuitton collaboration, and new NFT drops (maybe lower halves of CloneX NFTs)
Yuga Labs sold out their Otherdeeds drop for $600M and has come out with amazing demos of gameplay for their Meta-MRPG game, Otherside. Which is also my next investment idea. If you haven’t already, please upgrade your subscription now to receive it. All BAYC/MAYC NFT holders were able to claim free Otherdeeds. I’m really excited for where they take Otherside over the summer. And there will likely be more surprises around ApeFest during NFT NYC in late June.
ApeCoin had a massive run up to the Otherdeeds mint and has cooled off. It was promising to see ApeCoin deployed on Polygon as well as added to OpenSea. The next drivers for demand and adoption will be Otherside’s marketplace and potential incentives to using ApeCoin over WETH on OpenSea and other platforms.
HAPE Social came out with a new revamped Roadmap with new Tokenomics. There is so much cool stuff that is happening around HAPE.
Terra Luna imploded over 48 hours. This was shocking for me and I did not think that it would actually go to zero. There is a lot of speculation about what happened. It seems that this was a premeditated exploit whose intent was to destroy Terra Luna. There are plans to relaunch the chain in the same name and rename the old one (Terra Luna Classic). I plan to follow this closely but no longer have a position.
Vitalik Buterin and other devs have confirmed that the Ethereum merge is on target for August. This will be the biggest event in crypto this year and will be much anticipated. It could be an inflection point for a bear market rally, or the start of a new bull run.
After much deliberation, I exited my position in WonderLand Money. Although, I did not want to exit while the price was below backing, I couldn’t justify the opportunity cost of the capital any longer. I flipped it into a new NFT position that I’ll share with you in the coming months.
Go check out the May Portfolio Update video on our YouTube channel.
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.