Singularity Fund — Weekly report #3

Weekly report from June 13 to June 20

Net Asset Value and Performance of the fund

NAV on June 20= $9.83

Performance from June 13 to June 20= 6.79%

Performance from May 31 to June 20= 60.01%

NAV evolution between May 31 and June 20

Fund Composition on June 20

Fund crypto-assets allocation on June 20

As you can see, we changed radically the structure of our portfolio: we decided to not hold any BTC (Bitcoin) until the UASF outcome is 100% certain. If you want to understand better the risks associated to the UASF, we recommend this easy-to-read article from Seeking Alpha or this one from Giacomo Zucco which digs deeper into the subject. To summarize, on August 1st there will be a tentative to do a “User Activated Soft Fork” (UASF) aimed at increasing the technical capacity of the Bitcoin blockchain. It seems simple, however as a decentralized organization, it is extremely difficult to improve the technical architecture without creating dissensions within the community. For almost two years, Bitcoin has been the subject of a kind of civil war with two highly polarized parties having different views on how to upgrade Bitcoin. It is extremely difficult to get unbiased information on this matter, and there is a risk, although low, that the “soft fork” is not accepted and that on August 2 we actually have two Bitcoins instead of one (“hard fork”). The outcomes of such a situation would be disastrous for BTC value and we therefore took the low-risk approach of selling our whole Bitcoin position until the situation is cleared (probably a few days after August 1st). We are still confident that in the long term BTC will stay a reference in the crypto market in terms of storage of value, but the uncertainty on the short term is too high.

LTC (Litecoin) and ANS (Antshares): China’s use of cryptocurrency is booming, and we are increasing our exposure to this market. The pair LTC / ANS is the Chinese equivalent of BTC / ETH and we believe that these two crypto currencies have a very high potential for growth. Independantly of the Chinese market, we consider LTC as an excellent alternative to BTC as a mass-market mean of payment.

ETH 46.71%
LTC 25.64%
XRP 8.16%
DASH 2.27%
WAVES 4.40%
IOTA 2.02%
ANS 2.98%
SNM 2.18%
BNT 2.86%
TKN 1.57%
BCAP 1.21%

Crowdsales — ICO (Initial Coin Offering)

This week we participated to the SNM (SONM) crowdsale. SONM is a “fog” supercomputer whose computations are distributed by an automated market built on the Ethereum Blockchain. From their whitepaper definition:

SONM is a decentralized worldwide fog supercomputer for general purpose computing from site hosting to scientific calculations. SONM company is an effective way to solve a worldwide problem — creating a multi-purpose decentralized computational power market. Unlike widespread centralized cloud services, SONM project implements a fog computing[1] structure — a decentralized pool of devices, all of which are connected to the internet (IoT / Internet of Everything). IoT/IoE, as an important part of the available computational power in the world, is one of the key directions of work for the SONM project. (See further, chapter 2.1) We use cost-efficient fog computing instead of a costly cloud structure, so there is no more need to pay in advance for private and monopolized cloud computing such as with Amazon, Microsoft, Google Cloud, etc. Moreover, since SONM is fully decentralized, there is no single authority that regulates computing resource distribution. SONM has a hybrid architecture, and therefore supports any kind of computational task without facing Ethereum’s “out of gas” problem

Coming weeks

Segment 1 (core): We will maintain our targets until Bitcoin UASF is cleared.

Segment 2 (dynamic): We continue exploring this asset class and analyzing several tokens to determine the potential candidates.

Segment 3 (ICO): The main ICOs to watch are CIVIC (identity verification and KYC on Blockchain), Tenx (Blockchain payment platform), Rialto.AI (cryptocurrency arbitrage and tools) and NVO (decentralized exchange).

Tools: some of you are already using our simple NAV calculator and we will enrich it soon with the portfolio composition. Follow us and we will keep you posted!