My strategy for small caps is very simple.

1. Build a position based on my conviction in the project

2. Mark it to zero until it graduates from small to mid cap

For NFTX my position is 1/5 of the size I chose initially for Badger, based on my lack of knowledge about the NFT market (and also a lack of good comps for pricing).

I invested because I like their approach to solve a problem I had with NFTs, particularly with CryptoPunks: I wanted price exposure but didn’t want the illiquidity. I believe CryptoPunks will appreciate in value, both for the historical context and for scarcity, but I didn’t want to deal with the illiquidity of buying/selling them.

The index fund solution for that is very clever. Read more here: https://blog.nftx.org/litepaper-and-introduction/

Graduation is when market cap surpasses 25M.