Saturday, May 26, 2018

Havven, my newest favourite project

Aites guys, here it is, my declaration of love.

Havven is currently the project that I am most excited about in the crypto space right now.

There are A LOT A LOT A LOTTTTT of critics of stablecoins, but meh. I've read their opinions and views. I don't agree with most of them. So here I am, swimming against the tide again. As usual.

So what is Havven? Crypto Lark, one of my favourite, no bullshit YouTuber, talks to Havven's founder, Kain in this interview below.

If you remember one of my previous articles about the crypto path to trillions, I linked Multicoin Capital Kyle Sumani's article which mentioned that one of the possible paths is through stablecoins (the other two being Store of Value and Utility).

Again, like I said, stablecoins have LOTS of very vocal critics. But I am no fool, so I've done my own readings.

Reading 1 - Multicoin Capital's "An Overview of Stablecoins"
Reading 2 - Haseeb Qureshi's "Stablecoins: Designing a price-stable cryptocurrency"
Reading 3 - Anthony Xie's "The Instability of Stablecoins"

Unless you're a team member in a stablecoin project, I can probably school you on stablecoins.

But alas, I am not here to preach or shill you muh bags. Tbh, idgaf if you believe in this thesis or not. I'm just publicly putting it out here so that I can be smug about it later if I'm right. If I'm wrong, you can laugh at me for losing money. Good thing though is that almost nobody is looking into the stablecoin space, thanks to all those vocal critics, which means that if a stablecoin does succeed, it will be massive. The alpha is massive. Remember the skewed risk and rewards I was talking about? This is one of them. A stablecoin WILL reach the market cap of billions. The question is which one, and when? I'm betting on Havven.

Why not Maker DAO? I have used Maker DAO before. It's a real pain in the arse. What Kain says in the interview echoes my opinion very closely - DAI will never, ever, possibly scale up to a big enough circulating supply to be useful. It's basically a decentralized, weak self-leveraging system that creates Dai stablecoin as a by-product - and that is what is important. The only incentive to create Dai is to created a leveraged position, and that's it. They aren't gonna scale up. Trust me. Great guys, good team, but their model really doesn't match with Havven's design. The main thing that they've got going for them is that Dai is market tested while the full nUSD implementation of Havven isn't.

Last month, I did update my portfolio. One of the new entrants has been Havven. Since then and now, I have been accummulating a pretty sizeable position. Unless Havven flops due to a legitimate competition eating its lunch, I'm actually very comfortable with the whole thesis and I'm planning to hold onto my HAV tokens and stake them to earn network fees.

Yes, this is a staking token and you get rewarded for providing collateral and stabilizing the network.

So, I kind of have a shit ton of HAV right now. And you know what? If the nUSD launch which happens on the 11th of June goes well and adoption takes off very nicely, I'd actually happily continue to increase my position size and climb up the ranks.

Anyway, I just wanted to let everyone know that I have a pretty big bet on HAV which is a pretty small market cap coin.

Let's see how things go. All the best to me.

Thursday, May 24, 2018

Omg, Hyflux? I am SHOCKED by this SURPRISING and UNEXPECTED news

So Hyflux has applied to the High Court to stop creditors from seizing their assets, in other words, bankruptcy protection.

Who would've known, right? How terribly surprising and shocking news that just appeared out of nowhere. I am sure no one saw this coming, at all, from years away. /s

I've been perpetually shitting on Hyflux since 2016 until recently.

Why are people so in love with Hyflux? Because of the high yield they pay out? From your own capital that you supplied to them? Kek.

Hyflux share price when I talked about it in 2016: $0.528
Hyflux share price when last traded: $0.210
Dividends since then: $0.0045
Total Return: -59.4%

Hyflux preference share price when I talked about it in 2016: $99.80
Hyflux preference share price when last traded: $65.37
Payouts since then: $12
Total Return: -22.5%

Hyflux perpetual bond price when I talked about it in 2016: $1.00
Hyflux perpetual bond price when last traded: $0.500
Payouts since then: $0.09
Total Return: -41.0%

It looks like out of all the securities listed on the SGX, I just so happen to go out of my way and spend my time and effort to publicly shit all over 2 companies (Noble and Hyflux), way in advance before they go bust.

But, that's just a lucky coincidence, I guess?

At 60% debt to assets, a very ugly and underperforming stock, 5 year stagnant revenues and declining profit, it doesn't seem to me like it would be a good bet that Hyflux is going to have the ability to pay me back my own money which I lent them without going bust. It's not like they are using their debt / assets well to generate more profits.

Now they are borrowing money to pay back borrowings. Not even going to think much about it.

If you are vested, its a good thing if they can raise money to pay back their debt, since it gets more expensive if it doesn't get repaid. If you're not vested, I would implore you to find some good reasons to get yourself involved in this mess. I can't find any, other than a 6% yield, which is meaningless if you only get paid for a few years and lose the principal.

To me, it's a no no. I'm staying away and I'm just going to watch this show. -GMGH, May 2016

Honestly, the signs for Hyflux was written all over the walls, same as with Noble.

I'm not saying a genius. I'm saying, it was pretty damn obvious to me what was going to happen.

Good luck and stay safe. If you don't protect your own money, no one else will.

Monday, May 21, 2018

China's Ministry of Bagholding Publishes Offical Shill List

China's Ministry of Industry and Information Technology.

It sounds fake, ikr, lol.

But whatever, that's the news I came across. I'm just sharing it. My Chinese sucks, so you guys can go check the original sources for yourselves. (Source 1, 2, 3)

I mean, it's published out on the SCMP, so it seems legit, haha.

This is probably the best 3rd party summary of the news though.

Long story short? Buy Ethereum, lol.

Anyway, I just found it interesting how so many governments and corporations are looking positively into cryptos. It seems that the places with intelligent people are no longer refusing to acknowledge it or calling them outright scams.

Good for the long run I suppose.

Sunday, May 20, 2018

Laura Shin x Mike Novogratz Podcast

Great podcast for anyone interested in crypto.

Mike Novo gives a pretty toned down and less extreme view on the future of crypto and how things can play out with relation to the status quo now.

IMO, the best stablecoin has already been conceptualized and will be going live in about 3 weeks. I might be wrong, but I don't think any fiat-collateralized stablecoin could ever work, without a government guarantee over that coin.

Anyway, I'm just glad to be in before the full institutional and main street money FOMO pumps everything crazily.

You think Dec 17 / Jan 18 was retail FOMO?

You ain't seen nothing yet.

Friday, May 18, 2018

Embracing Blockchain or Crypto? Confused?

Yesterday's post didn't give you a hard-on? (You ought to read that first). Maybe today's will.

WTF am I looking at again GMGH?

You're looking at the French Finance Minister admit that he was skeptical about crypto a year about, but after understanding it, he's hot for it and wants to make France crypto friendly. Ain't that interesting?

Over in Russia, Sberbank just did their first blockchain based commercial bond transaction - something that Singapore's Project Ubin is trying to do in their Phase 3.

The infamous JP Morgan whose Jamie Dimon has shat on crypto publicly, now has a platform that uses blockchain technology for securities transactions.

Our dear friends in Europe who have recently gone crypto crazy, Malta is implementing blockchain technology to improve its public transport system.

So that's the good news so far.

What's the bad news?

Blockchain is NOT cryptocurrency.

What's the difference? I made a post about the terminologies here. You should read it.

Governments and companies and banks embracing BLOCKCHAIN technology are understanding the importance of data integrity and making them tamperproof.

However, these improved DATABASES are still vulnerable because they are not distributed.

Hence, the other "corporate-fied" term, which is distributed ledger technology (DLT) - having multiple databases so you don't get screwed by any single database mulfunctioning.

To be honest, it's not a bad thing for blockchain technology to be embraced. A lot of documentation and digital trails can and should be secured using blockchain technology. But by no means does this mean that the price of Bitcoin or other cryptos will go up.

Eventually though, some people, corporations and perhaps even governments will see and understand the importantance of not only blockchain technology (immutable, tamper-proof data), distributed ledger technology (which has redundancy and resistance to single point of failure), but that it is also public (free from top down manipulation and accessible to all).

Until that happens, don't get too excited when you hear governments and companies embracing blockchain technology.

I purposely did this post back to back with yesterday's post so that you can compare and contrast the different news.

On the surface, both seems bullish for crypto, doesn't it?

After my post today, maybe you'd understand why only yesterday's news is bullish, and today's news is just sort of interesting.