In this week’s edition of the Blockchain Insider Report, the traders discuss strategies to navigate the recent fall in BTC prices, and possible strategies to position for an upside swing before the end of 2018.
Managing Partner John Sarson was the winner this week up 5.76% from a position of his portfolio being held in Crowd Machine which is up over 100% this week. Chaster, Eric and Conor were down 3.50%, 5.89% and 7.48%, respectively while the MVIS 100 Small-Cap Index is up 4.48% overall. It is worth noting that these numbers are slightly deceptive considering the last 2 weeks of price action in the market after bitcoin broke down from 6K. Since the drop, Fifth Khagan has lost 24% while the broader market is down close to 50%.
Everyone on the call was optimistic about the market for 2019, but still bearish for the rest of 2018. Chaster noted that NVT (Network Value to Transaction ratio) has fallen below the threshold that is considered overvalued for Bitcoin making it the perfect time to dollar-cost average into the market. John is bearish until the start of the new year with the hypothesis that new money is not eager to buy in a month before the end of the year for tax purposes, especially with the current state of the market. Conor is leaning bearish citing the weekly and monthly timeframe candles as evidence that the bottom is not in. While a short-term bounce on the higher timeframes is likely, Bitcoin will only form a lower high before further downside action.
Jason Penner gave us some insight into the tZERO STO from last year. The projects coins will be distributed on January 10th but will not be available on exchanges until August. The funding tZERO received was sanctioned by the SEC and was one of the first blockchain based projects to work within the framework of US regulations. Jason also mentioned that he will be meeting close contacts to the Decentraland project to discuss the idea of virtual real estate on their platform. Ravencoin was the primary topic of discussion this week which had a massive run of over 330% on Binance in the last 2 months. The price point to watch is the 380 Satoshi support level where buyers are likely to step in if the price continues to fall lower.
News Around the Blockchain
Floyd Mayweather and DJ Khaled are facing fines from the SEC after their promotion of ICOs in 2017. The Centra Tech ICO, which was promoted by both parties in 2017, was later classified as a security and was revealed to be fraudulent in the eyes of the SEC. Mayweather and DJ Khaled were both fined for promoting an unregistered security without disclosing payments from Centra Tech.
Dan Larimer, the CTO of Block.One, will be starting a new blockchain based currency project only months after the mainnet launch of his project EOS. Dan started off in the blockchain space as the creator of the cryptocurrency Bitshares and would later go on to create a blockchain based social media site called Steemit. He came up with the idea of EOS and held one of the largest ICO’s in 2017 that would later be nicknamed the “Ethereum Killer”. Larimer has been criticized in the past for moving on to other ventures before the completion of projects he had started.
Disclosures: Not investment advice. It should be assumed that Sarson Funds or its affiliated managers hold positions in all projects that are discussed. It is not possible to invest in any project directly through Sarson Funds, Inc. or its affiliated managers. Any investment product offered by managers affiliated with Sarson Funds should be assumed to be only available to Accredited Investors and subject to the individual terms and conditions of that offering including but not limited to those eligibility requirements associated with U.S. Securities Regulation D, section 506c. Talk with your financial advisor before making any investment decisions or have them contact Sarson Funds directly at email@example.com