The Token Fund Digest 24th November
Here is a “rally” on the market this week. The main reason for that is Bitcoin futures. Even JPMorgan, well known for its Bitcoin criticism, announced its plans to offer this tool to its customers. Bitcoin futures are absolutely essential for the market players. First, it will allow banks and investment companies to offer their customers a product that does not require the necessity to open a crypto wallet or an account on a crypto-exchange. Secondly, the Bitcoin futures contract has long been of interest to investors as a tool that is practically unrelated to a traditional currency, securities and industry. It could be used both for portfolio diversification to increase its profitability, and to hedge risks. Even the Tether USD hacker attack couldn’t stop the “wave” of positive movement and high liquidity, although on Nov. 21 Bitcoin temporarily decreased by five percent.
The Fund decided to exit the USDT against the backdrop of problems around Tether USD, while Wings and Storj returned to the portfolio, as they can now be acquired at an attractive price, especially in relation to BTC. Wings expects a new web interface for voting for projects and the beginning of long-awaited payments to forecasters in the near future, which will increase the attractiveness of their token. Meanwhile, Storj is in an upward trend towards USD, it got listed on new exchanges this month and concludes partner agreements with eminent companies almost every week.
One of the Ethereum developers published the first version of Casper software which will change the Ethereum blockchain consensus mechanism from proof-of-work to proof-of-stake. Due to this, ETH started to appreciate and renewed its high on Friday, locking in a price of $444.4 at the Poloniex exchange. Early this week, the share of Ethereum in the portfolio was increased from 2.4% to almost 8%. Additional short-term speculative deals were made, since the current state of the market can be called favorable for trading.
We also began to reduce Aeternity share in the Fund’s portfolio. The project’s tokens were purchased at the ICO, and we estimate the yield obtained from them as sufficient to lock in the profit so far.
As for the participation in ICOs of new projects, analytical team considers NAGA project to be the most interesting. The project description can be found in this week’s review:https://medium.com/the-token-fund/invest-or-not-invest-this-weeks-ico-analysis-2dc262045002. The decision was taken not to participate in this ICO, because NAGA project has very ambitious plans on the funds raised. It can be said with a high degree of confidence that demand for tokens will be high (over $8 million was raised at the Pre-Sale stage), but the volume of their offer is too large. There is a risk that the token price will fall immediately after the listing on exchanges.