100x to 1000x Moonshot Dream (Part 2)
In the first part of this two-part series, I discussed the possibility of the peer-to-peer decentralised fantasy sports project, Phantasia and its FANT token, doing a 100x to a 1000x.
Please note that this is highly speculative and may not happen. It could all collapse like a house built on erm LUNA. Sorry to those who took painful losses.
If the stars align, the project team deliver, and the iOS and Android apps capture retailers’ attention, it could happen. But don’t bet your life savings, as risk management is critical.
For this article, I’ll discuss another exciting project I came across in my strolls within the crypto casino — Investin Pro.
Investin Pro is a decentralised fund management protocol, enabling anyone to invest or start a hedge fund in a trustless manner on the Solana blockchain.
Traders can start their funds without worrying about asset custody for their investors, and investors can explore funds — on-chain vaults that hold crypto assets — that best suit their investment strategies.
Only the investors can withdraw their deposits, as a smart contract holds the assets, which yields a token that acts as their original deposit’s receipt.
Essentially, investors deposit the IVN token into a smart contract vault, receiving a confirmation token, which they can send back to the vault or fund to end their investment. This action will return their investment along with the calculated profits or losses.
Only the contract address responsible for deploying the vault or fund can trade with the deposits.
The project first launched on the Binance smart chain but migrated to the Solana blockchain to leverage high transaction speeds and cheap transaction costs.
Investin Pro has a unique value proposition in offering DeFi hedge fund participation. Seasoned traders and fund managers can leverage the platform to aggregate investment capital, earning through skilful trading and astute fund management. They can build custom strategies, participating in diverse DeFi activities such as farming, staking, lending, borrowing and margin trading.
Specifically, fund managers can create a basket of tokens to trade (ETFs), provide liquidity in multiple AMMs and generally participate in profitable on-chain activities in a non-custodial and decentralised manner.
Similarly, investors can assess the fund managers and funds that align with their risk tolerance, choose who manages their assets, and earn profit by allocating capital to managers and traders they deem the best performing.
I see two opportunities with Investin Pro. The first is the value accrual mechanism. An investor and a fund manager can develop strategies to make gains in a bull or bear market via trading, staking, market-making and many more DeFi strategies. The second is more speculative. If the project sees adoption, given that there are only about 9,000,000 tokens and the market cap is small enough to be a pico-cap, it’s possible to do a 100x to a 1000x. This reasoning considers significant user adoption and token scarcity, but this line of thinking is highly speculative. These are my thoughts and do not constitute financial advice. If I decide to buy the token, I would probably allocate no more than £500.
My strategy relies on user adoption growth despite growing competition from DYDX, UniLayer, Perpetual Protocol, PsyOptions and similar protocols. Accessibility on iOS and Android with obfuscation of the underlying blockchain layer — identical to STEPN — could be a catalyst for this growth.
The team behind the project aims to expand beyond its crypto-native origins, as stated in one of the team’s blog posts and plans to offer new features, including structured products, dated options and futures trading. These plans may be the catalyst mentioned above.
The team recently raised $1.2 million in a funding round with GSR and 3KVC as leading round investors. This raise is significant for a small group of five developers with a tiny social media footprint, though with profiles on LinkedIn, lending some more credibility to the project.
Notwithstanding, proceed with caution in the crypto casino; I may make a small allocation and consider the money ‘lost’ until I recover my initial capital or the project does a significant multiple.
Though Investin Pro has the first-mover advantage, there are better-funded projects with ample VC funding, such as DYDX, Perpetual Protocol, PsyOptions and more. Additionally, with a small team, one must imagine they are stretched, given the amount of protocol optimisation and blog posts they are making. These updates are bullish, but the team must expand to maintain a lead or compete with newer protocols. The general crypto market remains an overarching risk, too; we are probably in a bear market. If it persists, we could see underfunded projects with small teams fade into obscurity.