digital slowmad

Digital Slowmad newsletter

24 June 2022

📊 Crypto portfolio update

Exposure: 1.7%

Net return: 572.1%

Comments: We remain deep in the trenches of a severe bear market, and the weak economic conditions suggest that the worst is yet to come.

In cryptoland, BTC has stalled at its prior ATH from 2017. 

Will the $20k level hold?

Personally, I'm not optimistic.

After all, ETH's 2017 ATH was broken without even so much as a small pullback.

We'll eventually see small rallies, but I don't think a full price reversal is on the cards, especially after the recent failure of 3 Arrows Capital, Celsius, and with Voyager Digital looking to be next on the list.

Thankfully, we'd been expecting a situation like this, as mentioned in the 13 May newsletter:

The past 2 weeks has been tough for everyone, but our private group has managed to avoid the bulk of the selloffs over this period.

Alert sent to private group when BTC was ~$26k

I'm proud to say that this call

  1. Saved each of us thousands of dollars in capital...
  2. That will be deployed at lower prices...
  3. Which gains us more profit in the future

Instead of blindly HODL'ing through heavy drawdowns and waiting helplessly to get back to breakeven, we sold early, avoided further drawdowns, and are now looking to buy back again at lower prices.

By the time other investors get back to breakeven, we'd be in a 25% profit, at the very least.

So our members paid $9 and saved thousands of dollars. I'll leave you to calculate the ROI on that.

If you'd like to join us, you can get in today while the entry fee is still low.

My portfolio allocation:

Details available in the private group

🏰 DeFi Kingdoms

I wrote a full section about DFK... but just as I was about to send out this newsletter, news broke that Harmony's horizon bridge had been hacked for $100M.

So everything I wrote prior to this is now irrelevant, because there's only one thing that matters now: Whether DFK can survive this crisis.

Given that DFK's TVL is ~$40M at this time of writing, there's a good chance the non-native tokens on DFK are now effectively worthless.

This is a big deal not only because of the scale of the hack, but also because new funds (and new players) have not been coming into DFK.

From what I can tell, most of the DFK playerbase stayed in the ecosystem because they already had funds in the game.

After seeing the value of their assets fall 90%, they think "there's no point withdrawing", and so have decided to stick around and keep playing.

But what happens when the value of the remaining assets goes down another 90%+?

In all seriousness, this could spell the end of the project.

Not to be dramatic, but this is a tremendous blow for DFK while it was already hanging by a thread.

To preserve whatever assets you might have, I suggest getting out of the Harmony ecosystem entirely (NFA of course). You can always get back in again later if you choose.

If DFK pulls through this crisis, I hope they consider moving Serendale over to a different chain altogether. This is a topic for another time.

For now, I pray that things work out in the best possible way both for the DFK team and all players.

📝 Admin

💪 Don't give up

If you're in pain, rest. But don't give up.

💬 Quote of the week

Confusion is the normal state of affairs when you're trying something really hard.

- Steven Strogatz

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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