This week, both my mum and various pals on FB have been buying a lot of Toto tickets. I just took a short visit to the website and noted that the next draw is worth $8,000,000. When this happens, heartlands normally go berzerk and you see long queues in every betting outlet in Singapore.
The crypto space has its Toto equivalent and a few days ago, I authored a paper on the Terra Classic Blockchain on the Dr Wealth Blog ( link ). The central idea is that we can treat some long-shot cryptocurrency bets like a visit to the amusement park. Everything is harmless so long as you do not entertain the idea that real money can be made.
It seems that the world has changed over the next 5 days. A hacker group known as Anonymous has decided to throw their hat into the ring and pledged to bring Do Kwon, architect of Terra, to justice. As a result of that both the LUNA Classic and USTC mooned.
- In my article, I got into USTC at around 0.63 cts. It is now 7.35 cts. A 10x increase.
- LUNC was 0.000054. Now it is about 0.00013. More than an x2 increase.
I'm sitting on decent profits now, but I've yet to cover all my crypto losses if I count my losses that are stuck in Finblox right now.
So as I've suspected, the Terra Classic blockchain has become the new Toto, if USTC restores the peg, then folks like me will be sitting on 200x gains. I can't even imagine what will happen to me if LUNC gets to $1. While these are all highly improbable events, so is winning Toto. As a consequence, there is a lot more capital locked into the legacy Terra Classic blockchain than the new Terra 2 Block Chain.
From a mathematical perspective, high-risk high-return asset classes do have a role to play in your asset mix provided you have will power to keep it within 1% of your total net worth. If you lose the 1% to a de-pegging event like LUNA, it will not affect your overall portfolio, but in the event, it goes up 10x, it would significantly boost your annual performance.
USTC and LUNC has gone up too quickly over the past few days, it will retrace, but traders will be waiting for the next catalyst to make their move.
The next catalyst can be anything, a new platform that accepts USTC and LUNC can lead to another rally. But my bet is that any incriminating evidence found on Do Kwon and Terraform Labs will lead to minor rallies. I see a major upside coming if, somehow, Do Kwon's influence on Terra Classic can be totally excised from the chain by regulators.
The central ideas are explained in Robert Ross' High Risk, High Reward Investing and I will be talking about this tonight.
If you're free, why not log in for this short session where I address my Alumni who might be thinking of pivoting into high-risk growth instruments.
https://us02web.zoom.us/webinar/register/3816560529405/WN_zj1qD-w4TGaP36I51sM2jg
No comments:
Post a Comment