Under The Hood - November 2021 - Crypto Autopilot
Up until mid-month, it looked like we were in for a repeat of previous bull cycles, but we weren’t
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Welcome to the recap of the Moonvember that wasn't.
On your side, it's the start of the month, so it's paycheck time 💸, the best time to invest and pay yourself first, regardless of what the market is doing. #DCA 🐜? You can start from about 100€/month in the Autopilot and 30€/month in DeFi Earn. Did you know you can easily make monthly deposits into Crypto Autopilot and DeFi Earn directly from your bank account?
#BTFD? You do you, but Michael Saylor sure saw it as an opportunity to buy 7000 more Bitcoins. But you do you.
And it's the gifting season. Did you ever wish you could give a gift that keeps on giving? Do you want to introduce those you love to Crypto? You can easily gift Bitcoin or a Crypto Autopilot balance to your loved ones 🎁 💝 🧧. For the record, an Autopilot balance gift of 0.0025 BTC / 50€ on December 25 2020 would on Nov 30 2021 be worth 0.006467 BTC / 320.4€ 💥 - That's a 5X gift!
Let's get into the thick of it. For a quick glance at the month's topics, here is an overview:
The Autopilot € performance for the month was -5.76%, and the ₿ performance was -0.18%. That's in a market where things generally moved sideways, so we are on-trend.
This month we look back at our Benzinga win, what the Buidlers are doing on Terra, Polkadot, Aave and Bitcoin, at what happens off-chain, at DAOs, and at discord around Discord and on Twitter.
And for the long-form, read below ⬇️
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🔬Markets: Barely Moving 🧊
1/ The Global Market Capitalisation of Crypto barely moved. It increased by € 56 Billion, but that's only a 2.5% increase and a lot can be attributed to stablecoins (with TerraUST contributing about 4€ Billion, USDT € 5 Billion and USDC another € 5 Billion). The top 200 Crypto excluding stablecoins (INDEXNASDAQ: CMC200) even lost 5.19% over the month.
With a 4.79% loss over the month, it's not a very good month for Bitcoin. By far, not the worst, and it's not the first time the price tanks on Thanksgiving, but let's just say Uptober was more fun to watch. The famous "PlanB" is now suggesting you look at his other 2 models.
2/ MarketCap excluding BTC actually did a bit better and was up 6.91%. That's no surprise seeing the inflows into stablecoins. If we only take the top 200 coins minus BTC and remove the stablecoins, the performance was not as good at -0.45% (INDEXNASDAQ: CMC200EX).
3/ The OSOM Crypto Autopilot is doing an OK job in that market in the short term. The € performance was -5.76%. The ₿ performance for the Autopilot was -0.18%.
Source: Since we started, on 26 September 2019, that’s a 1398.73% performance in Euros, and 125.01% in BTC. That’s 246.03% and 45.04% annualized, respectively. It means it's doing an amazing job in that market long term.
🤿 Autopilot Deep-Dive
💰 What are the Holdings in the Autopilot Exactly?
As December rolls in and the end of the year draws near, the OSOM Crypto Autopilot held on to the following 14 assets, in a universe of 72, while the team now tracks 235 assets.
✍️ Interesting Crypto Autopilot Moves in November
Things are changing a little again after a quieter middle of the year. If you're paying attention, you'll have noticed that AVAX, SAND, and LRC are new in the Autopilot basket. And SAND and LRC were amongst the ones driving the positive performance this month, so, well done 🦾, robot!
EGLD hadn't been seen since June but is making a comeback. It has a pretty good performance track record, so we'll keep a close eye on it.
It's interesting to see Celo now has the second spot and Solana is barely 10% of the portfolio. It was not like that all month as Solana was still almost 20% of the portfolio mid-month.
You might also notice the sizable BTC position. That's because we still allow positions to be up to 40% as the market was expecting a Bitcoin rally. Last month the Autopilot had not taken advantage of that freedom but it seems to now be enjoying the stability offered by Bitcoin. The fact that it's holding 14 assets, though, probably means that it needs to go deep in the list of available assets to diversify in terms of price movements. That indicates that the assets in this market are probably moving all very much in the same direction except for some outliers.
📅 Crypto News & Happenings in November - Month in Review
Everyone was gearing up for a Moonvember that never came. Slowvember or Horizovember would be more adequate. But crypto being crypto, interesting things were happening!
Last time around we said we would keep an eye on the COP26 (underwhelming 😔 ), the Polkadot parachains auctions (which finally happened! See below 🚀), the Benzinga awards (we are a 2021 Listmaker! 🏵️), and PLanB's predictions (wrong ❌). You're all caught up, let's look at what actually happened.
1/ This is the "at a glance" summary of all the 1066 articles written by two leading crypto publications and turned into a word cloud. I'm sure you can catch the themes.
2/ Buidl! Terra started taking massive strides towards becoming the chain for crypto money early in the month. One such move was to put Risk Harbor in charge of the risk management through the Ozone initiative. You can now protect against UST being worth less than 1 dollar or against Anchor Protocol being hacked. It's such a good deal that Arrington Capital is launching a USD 100M fund to allow people to deposit into Anchor Protocol via a regulated fund! Another was burning a boatload of Luna to turn it into UST, massively increasing the UST available on the market.
You know there are some in the team that have a bit of a soft-spot for Terra, and they were happy to see they are not the only ones: The Generalist recently put out an issue of their newsletter all about Terra. It reads like a love letter.
And Terra and the other stablecoin issuers are definitely getting noticed, as some are saying there is "too much innovation". I guess innovation is cool until it comes for your lunch.
3/ Buidl more! A big step for Bitcoin and possibly a big step for mankind too, on Nov 14 Bitcoin was upgraded. The upgrade is called Taproot, and if you didn't hear anything about it it is because, unless developers seize the new opportunity and develop new apps on top of Bitcoin, nothing changes. But if they do, that could potentially be really interesting. But developing on top of Bitcoin takes time and it takes a while for everyone to adapt. But just like "Lightning" is currently changing transfers little by little, Taproot could have an interesting long-term impact thanks to its privacy and smart contract features.
Another big step, which we had been anxiously waiting for, was the launch of the Polkadot Parachains Auction. Acala (the DeFi Hub for Polkadot) won the first one and Moonbeam (an Ethereum-compatible Chain) won the second. Next up is December 17, it will be the 3rd one. It's estimated that 100 slots will be put up for auction, so we haven't yet seen the end of it! (the 11th will be issued in March 2022 at a rate of about 2 a month, so that's about 2 years from now).
All those new chains might get you thinking that it's going to create fragmented worlds or little blockchain islands, but fear not: we already talked about bridges, but protocols are also taking steps in the right directions. Case in point, Aave with V3, which wants to bring together the liquidity (=money supply and demand) from all the chains where it's deployed into one place. They call it Portal (we suppose that if Facebook is going to appropriate the word "Meta" it's only fair that Aave steals the "Portal" Brand). Problems don't stay problems for long in DeFi.
4/ Looking at what's happening off-chain, we see that the on-chain world is getting more and more accepted. For one, Grayscale now has US$ 60 Billion AuM, which is more than the Top Gold ETF. Also, ING is looking at SocGen and thinking that bringing assets on-chain to be able to borrow against them is a good idea. We're also curious to see what Amazon UK's next move will be after ditching Visa. Will it go for Crypto? Maybe not right now, but it would make sense.
Also, Aave again has an offering for institutions.
And Jack Dorsey left Twitter. He didn't say what for but we're thinking it's got something to do with that Square and the TBD Dex whitepaper we've seen circulating.
5/ And we keep talking about DAOs. We are now seeing some used to "weaponize" the power of the crowd, much the same way we saw with WallStreetBet on Reddit last year. It can be to buy the constitution so some rich asshole (sic) can't have it and make sure people can see it or to get together to buy enough CO2 offsets so the rich industrialists are forced to change to save the planet. Would you like to buidl your own and take on the world with the friends from your Discord server? Head over to DAOMasters.XYZ for a list of tools and reading materials to turn you into a DAO, well, euh, ...master! (and check this out: opolis.co. It's for US-people but it goes to show how fast we're moving).
6/ Talking about Discord, we spotted one interesting and seemingly counter-trend happening this month: the CEO of Discord hinted at the fact that they might be allowing you to sign in to Discord with an Ethereum address, and the Discord community erupted in anger, arguing that Ethereum is bad for the environment and that NFTs are just a scam. Some bots that enable that already and it really wouldn't have done most of what the people are complaining about, but it was interesting to watch as we kind of liked the idea :) And interesting to see that Discord backtracked.
If you want to read more twitter fights, this retelling of a weekend drama is a real joy to read, and you will understand a bit more about blockchain and toxic maximalists if you read it.
🎄 What Does December Have in Store for us?
1/ Talking about Discord, in a move that would certainly anger some in that community, Finimize has set up the first verified Crypto Finance Community on Discord to go with the Crypto Summit in December (2nd and 3rd). Since we are always looking for ways to get more people into crypto, our CDO Mathieu has joined the community as one of the Decentralized Finance Channel Leads. He's apparently having a lot of fun and invites you to join. It's all free and you'll certainly learn something. Sign up for the event and you'll be invited to the server.
2/ January is a great time for new resolutions. Financial resolutions too. If you have the chance to have some time off, use it to make your financial plan for next year. Your future self will thank you.
3/ December is usually a bit of a slower month for everyone and a pretty good month for Bitcoin, even when it's bad (6 out of the past 10 years had a positive December and the monthly returns were never less than -24%).
We'll be here if you need us, and we'll also be taking some time to be with those close to us. So take care of yourself and, if you can, someone else too.
🤝 A couple things before we part
As we said, we're going to be taking it a little easier after an intense year and will be spending some time with the ones dearest to us. That means that the January edition of this update will be a little later than usual. Expect it around the 7th of January.
Do you think someone might enjoy this ecosystem update? Forward it to them so they can join the tens of thousands of people that read it monthly! And if you do, include your referral link so you can all get rewarded.
🦠 Omicron will turn out to be pretty much nothing or a complete nightmare. Regardless, keep a cool head and try to stick to your plans. Remember that #DCA 🐜 is the best strategy for most. Time in the market > Timing the market.
🎁Have you ever offered a gift that multiplies itself over time? Read the intro to this post to see how you can.
If you have a business or know someone who does ⚖️ and would you like to invest in Crypto and/or make or receive Crypto Payments, we now accept companies as customers, so just go to app.osom.finance, click "create account" and make sure to tick the box ☑️ Business account under the "password" field. For questions, just email firstname.lastname@example.org.
We had a nice review from Newsbit just as the month rolled around: https://newsbit.nl/osom-finance-beleggen-als-een-crypto-expert/
That's all, folks! 👋 As always, thank you for your trust. Feel free to let us know if you have any questions, ideas for how we can improve - or anything else - by getting in touch with email@example.com
(a) This is not investment advice, nor a solicitation. Crypto markets possess a high level of risk, including volatility and regulatory uncertainty. Past performance does not constitute a guarantee of future results in any way. You are solely responsible for doing your own financial, legal, tax, or investment research before taking any actions. (b) Past performance is no guarantee of future results. (c) Be sure to check the list of countries we accept before signing up and sending us your assets.
All quoted performance of OSOM solutions is before performance fees. And past performance is no guarantee of future returns.
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It is safe to say that in true crypto fashion, November turned out to be a rollercoaster of a month: Bitcoin's price skyrocketed by 38.8% over the month, blowing past its all-time high.