Axion: We Should Have Invested More
Dragon’s Vault, a Singapore holding company and investment fund, made its first side investment into Axion on July 6, 2020. This turned out to be one of the highest returns of the fund, in terms of growth, leaving us with a sentiment of “we should have invested more”.
The growth in price alone simply falls short of the whole story when it comes to Axion. So in this article, we will go into details about what differentiates Axion from the rest of crypto-assets.
What is Axion
In simple terms, Axion is a crypto-based certificate of deposits highly focused on strong dividend earnings through the staking mechanism (i.e. when you lock your tokens into a smart contract and obtain additional return).
Investment Window
Axion went into multiple phases since it’s launch with some ups and down. We will analyse our first investment alongside specific phases of the Axion lifecycle.
Temporary Token Phase — July 6, 2020 to November 13, 2021
Axion was launched as a temporary token in July of 2020, and we made our first investment on July 6th 2020. At this stage there was no dividend functionality.
We first bought 116,663,537 Axion for $2,384. The current value based on the current price of Axion is now worth $64,165, which does not include the dividends received since we started staking. This represents a growth of 2591% in the last 270 days.
For the past few months the growth has been oscillating between $0.0004 and $0.0007 from a $0.0003 value on November 13, 2020. Therefore, it remains to be seen if significant price appreciation will occur in the next few months to years.
Despite the oscillation pattern of late, since November 13, 2020, the price has grown by 83% which is very much acceptable to say the least.
Given the solid growth of dividends even in the absence of price appreciation, we believe it is a matter of time before we see higher adoption of Axion. As such, growth of the price, and given that Axion has a vastly lower market cap than that of similar products on the market, i.e. we believe there is plenty of room to grow, even by a factor of 50X.
Staking Phase — November 13, 2020 to April 2nd, 2021 (140 days)
Next, we will discuss our stake that was for 15 years (5555 days), given that longer staking pays better. We committed 2,500,000 Axion to this stake length. At present, 1,599,279 Axion in interest has accumulated and an additional 1,387,624 Axion for the Big Pay Day, resulting in 119% growth in the last 140 days, or 311% annualized. Not too bad!
Venture Capital Auction (VCA) Phase — March 12, 2021 to April 2nd, 2021
Additionally, we committed 297,401,857 Axion (~$163,571) to a 15 years stake on March 12, 2021, which resulted in $6,663 of wBTC dividends in the last 3 weeks. This represents 70% a year return without considering a potential growth on the value of Axion, as well as the normal dividends.
These VCA dividends are liquid and are received twice a week in the form of wBTC, enabling stakers to receive passive income to pay various monthly expenses they may have.
In Summary
There are 3 main value creation mechanisms for Axion, which are : 1) price appreciation, 2) dividends from staking which includes a Big Pay Day once a year; and, 3) Venture Capital Auction dividends in the form of wBTC, which are liquid and can be sold at any time.
We obtained solid growth from the price appreciation of Axion, but has recently significantly slowed. However, everything factored in, we are still looking at around a 400% annual return at the present time.
Looking forward, returns are likely to significantly exceed anything offered from traditional banks or conventional non-crypto assets. Making Axion a potentially solid investment, for any diversified portfolio; and for us, wishing we had invested more.
Remember that the results described in this article represents past performance, and the future could be entirely different. So, do your own research before committing any investments, and only risk money you can afford to lose.
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General Partner @ Dragon’s Vault, a globally distributed investment fund, on track to generate 230% return in its first year
CEO @ AuDeFi, maker of Cryptium, a high-yield, low volatility crypto-annuity to power SMBs cash flow.
