The bear market trend continued in Q3 2018. This represented a very challenging environment for our DAA managers. Though the market conditions were far from optimal, despite these challenges, our top three best performing DAA managers again executed strategies that provided results for their DAA holders.
We also released a new trading engine in Q3, which led to swifter and smoother execution of rebalancings. This proved to be a great addition to the ICONOMI platform, enabling DAA managers to swiftly react to market signals and take a more active role in managing their DAAs.
The top three DAAs of Q3 were COINBEST 1, Blockchain Smart, KryptoStar CORE. The managers of each DAA shared their thoughts with us below.
1. COINBEST 1 (CBST)
At Coinbest, we have tried to maintain our digital value investment strategy, which has benefited us in this bear market and resulted in having the best-performing DAA in Q3.
Even through a bear market, we believe the strategy of Coinbest 1 should not involve having positions in cryptofiat or stablecoins, since we understand the DAA as a gateway for exposing a moderate percentage of your portfolio to the crypto market, not requiring this kind of hedging with fiat.
Our main investment remains Bitcoin (BTC), as it has been from the very beginning. We still believe Bitcoin is the digital asset with the best risk/profit ratio. We believe the development of Lightning Network and the entry of institutional investors could drive up the price of Bitcoin in the coming months.
A few weeks ago, we underweighted Ethereum due to uncertainties about its scalability, coinciding with the appearance of new smart contract platforms and Bitcoin sidechains as alternatives to this blockchain.
Our main contributions, aside from “crypto blue chips,” are still Decentraland, Aragon, Bancor, and Wings, but we may change this allocation in the medium term to take positions on platforms of security tokens like Polymath if it is listed as a supported asset on the ICONOMI platform.
2. Blockchain Smart (BLS)
It’s hard to be one of the best DAA managers among almost 40 professionals when every manager tries to achieve the best results for their DAA holders on the ICONOMI platform. Of course, with business experience, the right strategy, and the exploitation of market imbalances, above average returns can be achieved.
The last rebalancing of Blockchain Smart was carried out on October 26, 2018, when most of the digital assets in the structure were replaced with ICN tokens. At the beginning of November, ICONOMI will offer ICN holders 0.0019 ETH for every ICN, which was 18% above the current ICN/ETH price at the time of rebalancing.
The news that ICN will be delisted from Kraken has scared some investors, who have been panic selling ICN, thereby creating an imbalance in the market. The task of the smart manager is to recognize such disparities and react, with the aim of achieving better above average returns for investors in the Blockchain Smart DAA.
Due to the last rebalancing, investors in Blockchain Smart will receive a more than 15% return in ETH terms. If you react right now and invest in the BLS DAA before ICN/ETH swap, you can gain an above average return enabled by the panic selling of individual ICN holders.
An interesting fact is that at the time of writing, the value of ICONOMI’s digital assets is 102% higher than its market capitalization. It’s not enough to buy a good investment. It’s even more important to know when to buy a good investment. The time at which you buy or sell a digital asset is very important in management of DAA.
It is difficult to get trust from DAA holders, but it is even harder to keep their trust long-term. A good DAA manager doesn’t need marketing — the best marketing is DAA returns. To become the best in terms of returns at 1 week, 1 month, 3 months, and 6 months is the goal of every DAA manager, and BLS DAA holders can congratulate themselves on holding a DAA with such a return.
The ICONOMI platform offers an excellent tool for managing assets.
3. KryptoStar CORE (KCOR)
KCOR’s strong focus on established tokens, particularly Bitcoin, has been instrumental in its positive relative performance compared to other DAAs, especially over the past three months. We will maintain this focus on key tokens as the main weights in the portfolio.
KCOR seeks exposure to what we believe are key infrastructure components of the new token economy, with assets like BTC, ETH, LTC, and Monero making up >80% of the portfolio. Decentralized exchanges (0x) as well as new business models like ICN, TenX, and Steem are still in early stages but have good potential in our view. These tokens have been able to hold their relative position against the more established tokens and in our assessment still carry valuable optionality for future KCOR performance, especially when the current market sentiment reverses again.
The KCOR strategy has also shown good results over periods longer than the past 3 months, with KCOR being among the top performers over 6 months as well as longer timeframes, which we are very proud of given the strong fellow DAAs on the ICONOMI platform.
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