Rapture #246: Trading Update and GoldenTree Invests in SushiSwap
Markets overall have been pretty slow, so no real change there. Many of my favorite crypto traders think we have either bottomed macro wise and are about to initiate a new bull trend or at the very least are in the early stags of another bear market rally.
I am not so convinced, but I am not extremely confident the next leg is down. I do not think we have hit the lows for this crypto bear market, or for most asset classes generally, as I think we are at the beginning of a global hyperdollerization (i.e. dollar milkshake theory) trend since I do not believe the Federal Reserve will lower rates anytime soon. This trend will adversely affect all markets initially.
I do think the market will give us an answer regarding short term trend around October 13th, which is the next CPI reading. Most of the recent directional market moves have formed during the latest CPI readings.
Until then, I wanted to give a quick update on a trade I made and comment on an investment made by an institutional asset management firm.
Sweatcoin trade
I recently decided I wanted to try and better develop a bear market trading strategy. My first try was in SWEAT a couple weeks ago. You can find the reasoning behind the trade here.
So far, the trade has not gone well. SWEAT is down approximately 50% since I invested, and Nansen displays that many of the top SWEAT offering recipients opted to send their SWEAT to exchanges or sold them on DEXs. There definitely has been no bullish narrative that has caught on for the coin yet.
While I only risked around 1% of my AUM on the trade, after having reduced my ETH holdings to reach around 98% cash before the trade, the punt is definitely a loser so far.
Now, BTC did proceed to drop from its local high in that period, which means that high beta coins had a much higher likelihood of underperforming. I am opting to hold on to SWEAT for now as, if there is a crypto market wide bear market rally, I am interested in learning if SWEAT will perform better than BTC in that environment.
While still too early to call for my taste, 0/1 for bear market trading so far.
GoldenTree invests in SushiSwap
Earlier today, Avi Felman announced that GoldenTree took a position in SushiSwap. Note that GoldenTree is one of the institutions that helped elect SushiSwap's new Head Chef.
GoldenTree outlines their reasoning for taking a position in SushiSwap here. In summary, GoldenTree believes they can add value to the SUSHI token via tokenomics suggestions and furthermore believes in SushiSwap's product offerings.
The investment firm holds approximately $5.2 million worth of xSUSHI.
I am interested to see how the SushiSwap community reacts to a traditional institutional asset management firm participating so actively in their governance. I do think activist investing will become a trend in cyrpto, and I commend GoldenTree for being the tip of the spear in terms of trying to execute such a strategy.
Disclaimer:
The Content on this email is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on this site constitutes a solicitation, recommendation, endorsement, or offer by Rapture Associates or Mattison Asher or any third party service provider to buy or sell any securities or other financial instruments in this or in in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.
All Content on this site is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing in the Site constitutes professional and/or financial advice, nor does any information on the Site constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other Content on the Site before making any decisions based on such information or other Content. In exchange for using the Site, you agree not to hold Rapture Associates, Mattison Asher, and its affiliates or any third party service provider liable for any possible claim for damages arising from any decision you make based on information or other Content made available to you through the Site.