Down days after long parabolic rises are great for you to check your assumptions and allocation. I'm recycling Badger into NFTX
The last few weeks have been amazing for Badger price. I actually increased my unsold 50% position — remember I sold the other “tradable” half too early — and this was a great decision.
Today was the first down day after a parabolic rise. A BTC re-rate seems to be incoming, but this could very well be a false alarm.
Given this portfolio is not supposed to have any BTC, I don’t care (ok I kind of care because I don’t hate money, but whatever…).
I’m doing something different this time. Instead of taking profits in stables/ETH/BTC or doing nothing, I decided to recycle this additional position into the other project I’m really into: NFTX
This way, I’m putting myself in a place where I actually have a similar position in NFTX to the one I originally had in Badger, in USD terms.
NFTX is more expensive than Badger was back then, and Badger had a clear comparable for me to see how cheap it was: YFI
NFTX doesn’t have anything like it, and this could actually be a good thing. In a space with a lack of “painkiller” projects, NFTX is the only option. If NFTs capture the mindshare of more people, as it seems to be happening, NFTX is one of the few games in town.
The founding team, while small, has been delivering at a fast pace — see the Hashmask fund.
Also, they have not started liquidity mining and I’m going to be all over that too. The potential for positive flows is what gives me the confidence to allocate more, not a top-down approach looking at TAM and having some assumption for a market share.
NFT narrative: Hashmask mania, Big name artists and personalities going into NFT, many fund managers looking to NFT as the next big thing
Lack of competition: NFT space is really underdeveloped in terms of financial solutions. NFTX started by offering a solution to a big pain (liquidity) and can build more primitives out of that: DEX, Lending etc
Yield Farming: the program has not started yet, and should be another push for more liquidity for products and TVL
I still have to develop a framework for how big NFTX can become. 100M? 1B? 10B?
This is an open question I’ll need to revisit.