40% of our Treasury and development fund will be allocated in the DCA fund
Our team has been through 2 full crypto cycles and knows how to play it. We are currently looking at these sectors to make investments with our DCA fund:
- BTC & ETH As potential returns are obviously not so big on BTC & ETH as with altcoins, you still want to play the cycles as they've played out in the past. Bull runs always start with BTC grinding up while alts stay somewhat flat, then Ethereum makes a grind up and after that we get a more impulsive alt run. So what we're planning is allocating at least some funds into BTC & ETH to catch the first ride up and then eventually scale this position into altcoins taking the BTC.D(ominance) chart into account which gives us a clear view on when alt season could start.
- New emerging L1 blockchains This past cycles we saw coins like: ADA, SOL, DOT, AVAX,.. literally exploding as they were new upcoming L1 blockchains with better scaling solutions/cheaper fees than ETH. We will be searching for the next SOL to find likewise % gains.
- Existing L1 blockchains with adoption We will obviously be scaling into ADA as we believe in the chain we build on but will also look at other existing L1's where a lot of projects are building on. We believe in a multichain world, we're not betting on 1 winner.
- Decentralized perpetual exchange coins with revenue/trading fees sharing and decent tokenomics We know for a fact that the decentralized perpetual market will continue to grow, as this is clearly becoming the preferred source of leverage trading across the crypto market. Investing in the native token of such a perpetual DEX is a great way to make good profit, if you do your due diligence on the tokenomics and revenue sharing part.
- Multichain bridges Moving swiftly from one chain to another will play a crucial part in the future of crypto, this is a simple fact. There is big a opportunity if you bet on the right players in this section of the crypto market.
- DeFi 3.0 projects focused on passive income/rewarding holders At the end of the past cycle DeFi 3.0 projects made their entrance to the crypto market, and we believe they are here to stay. They focused on bringing passive income to their holders in the forms of 'reflections' which means the amount of coins will grow in your wallet if you hold them. 95% of these projects are gone now but some are still building, growing and making insane results.. those are the ones we are looking at to buy at a very cheap price.
- New emerging and existing metaverse/NFT coins with utility Metaverse and NFT's are obviously here to stay, the only problem is that their coins often have poor tokenomics or no use case whatsoever. A lot of these coins just pumped purely on hype and speculation but won't rise again. This is why our strategy is simple in this sector: - Buy existing metaverse/NFT coins WITH A GOOD USECASE - Buy new emerging metaverse/NFT coins with a big chance on hype
- New hype/narrative cycle coins Every cycle a new hype/narrative pops up and it always pumps harder than people can ever imagine. In 2017 it was ICO's, in 2020 we had 'DeFi summer', and in the past cycle metaverse/NFT coins had their first insane bull run. Our goal is to identify the next hype narrative and profit big on it.
We are currently in a bear market which is hard for most people, however in crypto most millionaires are created in the bear market. At the moment of writing BTC is -75% from ATH and most alts are more than -80% from ATH which means you can profit big when the bull returns or markets even slightly get more positive. One thing is sure: It's impossible to time and buy the exact bottom which is why our DCA strategy will be a big winner in the long term. By dividing and timing our buy-in's we will average down our average buying price and build a spot portfolio with high fundamentals and big potential for high returns. Example: We're buying ADA with our DCA strategy. Buy 1: We deploy $5000 at $0.6 per ADA = 8333 ADA Buy 2: We deploy $5000 at $0.45 per ADA = 11111 ADA Buy 3: We deploy $5000 at $0.30 per ADA = 16666 ADA Buy4: We deploy $5000 at $0.22 per ADA = 22727 ADA We now own 58837 ADA and our average buy-in price is $0.34 per ADA! Although we started buying relatively high from the lows, once the market turns positive again we will be in profit pretty quick and big.
When the markets turn positive again and we've build up an amazing spot portfolio, we will be looking to scale out of our positions as the bull run continues. Just like it is impossible to time the bottom in a bear market, it is also impossible to time the absolute top in the bull market so we're not going to try that.
When euphoria rises we're going to do the opposite of what we did in the bear market and we'll start selling our positions in bits on the way up. This way we outplay almost every 'hodler' and get the meat of the run up without stressing about timing the top and when to sell. Profit is profit and what goes up always comes back down. We'll scale into stable coins ready to deploy in big crashes/dips and rinse repeat the process.
The spot portfolio will be reviewed every 3 months to scale possible profits out and put these into the airdrop/prize pool for our holders. The reviewing period is 3 months because bear markets can last pretty long and sometimes nothing notable will happen in just 1 month. Of course the reviewing timespan can and will be changed if market conditions better and we need to act quicker and more actively.