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As a veteran cryptocurrency trader I’m used to huge market swings, but even this week’s crash I found rattling. Huge loses were seen across the board with LUNA down nearly 99% from its all time-high, and many other cryptocurrencies down 50% or more over a one-week period. Bitcoin (BTC) fared better that the bulk of altcoins, with the price swinging between $26,000 and $31,000 depending on the exchange that was monitored.
While there is a possibility that the market will continue to implode, there is also a high probability that the market will recover. Knowing this savvy investors took advantage of the market conditions to do some bargain hunting.
I personally wanted to take advantage of yesterday’s oversold conditions to start a new “High-Risk, Low-Cap” portfolio. I chose to purchase some undiscovered tokens, from companies that venture funds had been investing in over the past year, and were now trading at unprecedented discounts. Since these tokens are so low in price, and so low volume there is a high probability that each one of them will hit zero, due to market forces, or other unforeseen reasons.
I chose to look at these investments from a long-term venture capitalist perspective instead of quick trades for easy profit.
With this mindset it is understood that there is high risk, with the traditional belief being that 9 out of 10 projects will fail or underperform. It is the 1 out of 10 that pays the dividends and it is this approach that was undertaken with this portfolio. The goal is to identify a gem that can grow in size anywhere from 10x to 100x.
These are the six tokens that were purchased. Additional tokens will be added as they are found. This is not trading advice, and is shared only for educational and entertainment purposes.
Zebec Protocol (ZBC)
I bought 1,300,000 tokens of ZBC at or near $0.01628. This is the largest holding in the portfolio.
Zebec Protocol operates on the Solana blockchain and offers a payroll platform that allows workers to be paid by the second with USDC or other stablecoins. It solves one of the major pain points from businesses operating in cryptocurrency, and that’s seamless and efficient payroll. Investors include Republic Capital, Shima Capital, Breyer Capital, Resolute Ventures, Launchpad Capital, Backend Capital, Meltem Demirors, Gemini Frontier Fund, Infinity Ventures Crypto, Wave 7, Cadenza Ventures, Hack VC and Joe McCann.
To learn more visit our Investing in Zebec Protocol guide.
Router Protocol (ROUTE)
I bought 20,000 tokens of ROUTE at or near $1.02. This is the second largest holding in the portfolio.
This project is a bit technical and is one of the newest projects in the portfolio, Router Protocol uses a proprietary pathfinder algorithm to find the optimal route for cross-chain swaps. They have recently integrated with both the Ethereum and the Fantom Network. Investors include Coinbase Ventures, QCP Capital, DeFi Capital, Alameda Research, Wintermute, Woodstock, and Shima Capital.
To learn more visit our Investing in Router Protocol guide.
I bought 300,000 tokens of UMEE at or near $0.03783. This is the third largest holding in the portfolio.
This is of the more high risk projects in this portfolio, Umee offers DeFi experience for staking, rates, and interoperable solutions across blockchains. It’s essentially a layer one blockchain for cross chain communication and interoperability, built on the Cosmos SDK. This is another one that is backed by some big players including Coinbase Ventures, Polychain Capital, Alameda Research, Consensys, Tendermint, CMS, BKCM, GSR.
This token trades on Gate.io (Canada & USA Prohibited).
NEST Protocol (NEST)
I bought 335,000 tokens of NEST at or near $0.02931. This is the fourth largest holding in the portfolio.
Nest Protocol is a top 400 token and is therefore one of the highest value tokens that is on this list. Since it trades on larger exchanges such as Huobi Global it does offer a relative amount of liquidity. It’s a decentralized price oracle based on Ethereum, and when analyzing market sentiment it seems to be gaining some traction. Due to it’s current relatively high valuation it offers less upside potential than some of the other tokens on this list, but it was included as it is backed by some larger venture funds including Coinbase Ventures.
This token trades on Huobi Global. (Canada & USA Prohibited).
Index Cooperative (INDEX)
I bought 2,000 tokens of INDEX at or near $4.78. This is the fifth largest holding in the portfolio.
Index Cooperative is a solution for investors who do not wish to perform the hard work of researching investments, instead it offers various crypto investment themes such as an Interest Compound ETH Index, a Metaverse Index, and a DeFi Pulse index. Investors can choose the index that they prefer and allow more experienced hands to select investments. The venture funds investing in this company are arguably some of the best in the world including Sequoia Capital, Galaxy Digital, DeFiance Capital, and Wintermute.
This token trades on Hoo.
Unlock Protocol (UDT)
I bought 360 tokens of UDT at or near $22.63. This is the sixth largest holding in the portfolio.
This is a free to use protocol that will enable anyone to efficiently create memberships and sell NFTs. This protocol is community-owned and governed, and offers limitless customization. Some of the larger venture funds that have invested include General Catalyst, Consensys Ventures, Kindred Ventures, Betaworks, 122 West Ventures and Coinbase Ventures.
The market cap for this project was sitting around the $900,000 mark when the purchase was made, the lack of liquidity it what restricted me from purchasing more tokens. Due to the low liquidity, and the lack of exchanges, this is the highest risk token in this portfolio. For the same reasons as outlined above, it also offers the highest potential reward.
This token trades on Hoo.
These tokens were not purchased for quick profit, instead they were purchased with the intention of long-term holding. In other words, there is a high probability that some of these will fail and go to zero, but there is also some expectation that one or more of these tokens will increase significantly in value to perhaps penetrate the top 200 in coin market cap.
Securities.io in the next few weeks will be releasing investment guides for each of these projects.
Please note that this is not investment advice, the information is shared only for entertainment and educational purposes, and to share the mindset behind my trading strategies. Securities.io is not an investment advisor, trading in cryptocurrency is high risk and can result in the loss of 100% of your investment. Always perform your own due diligence.