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OPINIONS
Crypto Watchlists + World Cup Speculation Narrative, portfolio allocation and thoughts on macro below
Lin Yun Heng
Edited 03 Nov 2022
Senior Analyst at Delphi
Uptober. Probably one of the rare months we see a rally but will that continue as we head into November?
The 75bps rate hike was largely expected, and JPOW’s statement still remains the same: 100% focus on bringing inflation down, if economy tanks, they have the tools to bring it back up. Period. Most macro commentaries out there right now are noise in my opinion. The Fed’s stance is pretty much the same as before, and until we get more inflation data and signs of decline, we should see financial conditions continue to remain tight.
Let’s dive straight into this month’s portfolio update.
As of 3 Nov 2022
One change made this month was my divestment from FOLD and I laid out some of the reasons why in my telegram group, but the TLDR is I love the project and what it sets to achieve, but I am doubtful of the founder’s behaviour.
I may still find my way back into FOLD once key integrations like Sushiguard gets implemented and we finally see some real world numbers on just how much revenue FOLD stakers can make from a single router from SushiSwap.
As such, rotating FOLD back into stables means going back risk-off, now with approximately 25% in Stablecoins, 65% in ETH (long-term hold), and the remaining 10% allocating towards short-term trading positions, which ends up being Chilliz’s $CHZ token.
The reasoning is simple. World Cup is coming and Crypto Twitter will be dying to ape into a new, hot narrative. Crypto short term price actions are 99% narrative driven, you can just see this effect in full force when Elon Musk took over Twitter and the Doge/Shib narrative literally rallied nearly 2x in the span of days.
Some may say the World Cup narrative is a sham or an overcrowded trade, but CHZ, and many other fan tokens like ARG/POR/SNFT and many others like ALGO are all displaying relative strength compared to other alt coins.
Do take note this is purely a speculative bet, and I will be looking to sell my CHZ nearing World Cup or during the World Cup itself. Please DYOR and take note this is not financial advice. I am willing to lose this 10% portion of my portfolio.
To get straight to the point, here are projects I am keeping a close eye on and might potentially allocate if valuations get more attractive.
L1/L2
L1: Ethereum (Network effect + ultrasound)
L2: IMX (Best games on-boarding + Best scaling tech dedicated towards gaming)
Cross-Chain
ATOM, OSMO (IBC/Interchain security/mesh security/inter-fluid staking, ATOM 2.0)
GameFi, P2E
ILV, SAND?, Embersword, Tatsumeeko, Blocklords (MMORPG gaming thesis. Most avail on Immutable, awaiting for bull and gamers to flow back in)
Derivatives:
GMX, DPX (Battletested protocols on Arbitrum + GMX with the best tokenomics in crypto rn. Dpx becomes attractive only after token incentives for vaults end, will see how it performs without incentives)
Web3 Infra
FOLD (RPC aggregator, block builder, MEV Democratisation opportunity – gotta wait for sushiguard integrations etc and actual staking yields)
As of 3 Nov 2022
Second month adding the DCA of $1000 into this passive portfolio, and now sitting at -8.37% TW return.
Passive investing is pretty much super boring and I only take a look at this every time I needed to DCA. Made no changes to the portfolio weighting and probably won’t do so for the foreseeable future. If however, there were to be a black swan event and we see technology stocks go down another 10%-20%, I might increase my weight towards QQQ as valuations get more attractive.
The beauty of ETFs is you no longer face the risk of a single company going bankrupt or getting delisted, but instead expose yourself to the entire index of tech stocks (in the case of QQQ). And the key to passive investing is just let time play itself out. Not disrupting the process is key here, so the less I look the better.
What is the macro outlook? Still bearish in my view. Wen pivot? I don’t really care. Wen bottom? No idea.
I am just going to keep DCA-ing into ETH as long as it stays below $2000, and to fight against the boredom by actively trading 10% of my portfolio allocation. Who knows, if the World Cup narrative plays out, I can double my bag, take back the capital back into ETH/USDC, and then continue playing the 10% active trading allocation while waiting for the bull market to come back.
Also for those asking, majority of my ETH are in Option Vaults selling options to earn premium + reward incentives. It’s a pretty active strategy and requires weekly monitoring. I am also more risk-averse and are selling mostly far OTM calls that still yields decently (~10% APY on ETH).
GLP on GMX is also a good option if you are okay with giving up ETH price exposure for slightly higher yields (~15%-30% APY on esGMX + ETH).
Good luck out there anon.
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Do your due diligence on Bitcoin in my post here where I debunk some of the myths regarding Bitcoin.
I did a bite-sized article on Ethereum for you to get a crash-course on what the buzz word is all about here.
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Disclaimer:
The content here is for informational purposes only and should NOT be taken as legal, business, tax, or investment advice. It does NOT constitute an offer or solicitation to purchase any investment or a recommendation to buy or sell a security. In fact, the content is not directed to any investor or potential investor and may not be used to evaluate or make any investment.
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ABOUT ME
Lin Yun Heng
Edited 03 Nov 2022
Senior Analyst at Delphi
Crypto Educator
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