digital slowmad

Digital Slowmad newsletter

10 February 2023

📊 Crypto portfolio update

Exposure: 62.4%

Net return: 610.7%

Comments: Bitcoin made a big pullback yesterday, breaking below the consolidation support at $22,500 and dragging the whole crypto market down with it:

Those who bought late into the "echo bubble thesis" are now left holding the bag as the earlier participants use them as exit liquidity and take profits.

Private group members were warned about this 8 days ago and we've since sold a portion of our bags to the latecomers:

So the people who bought late into this "echo bubble thesis" are now left holding the bag as they become the exit liquidity of the earlier buyers.

2023 will be a challenging year and most people should simply hold BTC/ETH and wait it out. Inexperienced market participants who try to actively jump in/out of trades will get chopped up by vicious price swings.

If you'd like a front seat view of how I actively grow my portfolio under live market conditions, you can now join the private group for just $35.

Portfolio allocation:

Details available in the private group

🏰 DeFi Kingdoms musings

DFK OGs will remember back in 2021/2022 when the DFK devs often talked about how they had no interest in influencing the price of Jewel. Their stance was they wanted the "free market" to determine its price.

I found that odd because half the point of GameFi is, after all, finance... which in large part involves a speculative element.

Could a GameFi project succeed if the devs ignore the speculation aspect?

I didn't think so at the time, and continue to stand by this opinion today: Ignoring investor sentiment is naïve.

I've said this before in a Twitter thread but I'll repeat the point here: New GameFi projects are too immature to allow for "free market" activities. That's a luxury that only mature projects can afford.

New projects should be deliberately guarded against negative events much like how a newborn child should be guarded against accidents and illnesses. Once the "child" grows up, it can then be in a position to fend for itself against harsh real-world realities.

It was thus to my delight to hear about the recent Jewel tokenomics changes; The devs are finally taking measures to "help" move the price of Jewel upwards.

Some of these measures include:

  • Slashing Jewel supply by 75%
  • Introducing Jewel locking benefits in-game
  • Introducing locked Jewel burn benefits in-game
  • Prioritizing CEX listings

These changes point to a clear mandate: Raise the price of Jewel!

Of course, the devs will not openly admit to this, but their actions yell loud and clear.

As a fan of DFK I'm happy to see this policy shift... but is it too little, too late?

Case in point: While the rest of the crypto market has rallied in this "echo bubble" (including GameFi tokens like MANA, SAND, IMX, GALA), Jewel price action remains lacklustre and caught between $0.23 - $0.30.

If you held Jewel during the past few weeks you'd have vastly underperformed the market; Jewel holders continue to pay the price in opportunity cost.

As I've said many times before: I'm a DFK fan, but I'm not a DFK maxi.

I'm a portfolio maxi and I go to where my portfolio is best treated.

This apparently makes me a bad person in the maxis' eyes but I'm perfectly fine with that; I'd rather be making money while they continue consoling themselves and heaving large amounts of copium.

As of 8 days ago, I exited my Jewel position (as shared with the private group)... which in hindsight was a pretty good decision.

Will the time come when Jewel finally outperforms the market?

I hope so, and will continue to look for clues as to when that might happen.

As usual, private group members will be the first to hear about my views on this.

📝 Admin update

🏜️ Namib Desert live stream

Check out this live stream of a watering hole in the Namib desert. You can often see wild animals congregating around it.

💬 Quote of the week

Don't trip over what is behind you.

- On a signboard

Thanks for reading, and have a great weekend. 🥃


P.S. If you have any questions or feedback, let me know at: chris[at]digitalslowmad[dot]com

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