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26Evening my friends.
As everyone has noticed, the $BTC (+0.11%) out of control. I would like to know which of you are still invested in altcoins and if so, why? And are you still of the opinion that they will continue to rise or rather fall? What is your general opinion of altcoins such as $DOT (+1.7%)
$FTM (+2.01%) or $AVAX (+3.37%)
Hello everyone 🙋🏻♂️
Since I have been more of a silent reader and admittedly have not been investing in equities for very long (since April 24), I would like to take this opportunity to briefly introduce myself and my portfolio.
About me:
I am 25 years old, live and work in Germany and share a household with my girlfriend. I've been looking into investing for a while, but didn't dare to take the plunge for a long time until the aforementioned deadline due to negative reports from friends and horror stories on various websites.
Now I'm here and I'm extremely happy to have taken the plunge after all.
My decision was confirmed by the fact that I recently broke through my all-time performance loss limit. I stuck with it and was not impressed by the correction. On the contrary, I saw it more as an opportunity to buy more.
My intention:
Initially, I would rather focus on growth. My investment horizon extends into my retirement age. I may add more dividend stocks to my portfolio at a later date to generate a little income.
About my portfolio:
After some initial mistakes, I quickly settled on the following ETFs:
$VWCE (+0.51%) (70%)
$EIMI (-0.2%) (20%)
$WSML (+0.57%) (to 10%)
My aim was to cover the majority of the market with large, mid and small caps in order to achieve greater diversification.
These ETFs should also become the main component of my portfolio in the medium term.
I also wanted to include a few strong individual stocks. Here $AMZN (+2.65%)
$AMD (-2.48%)
$AVGO (-0.88%) were chosen as blue chips. These are to be increased through individual purchases at a suitable price.
With $VOW3 (-2.82%) the original idea was to increase dividends and diversify my portfolio.
I think the share price will recover in the long term. Unfortunately, my entry point was a little too early. I would like to reduce my buy-in somewhat in the near future by buying individual shares.
$SHOP (+7.76%) I see the share as a growth stock and should continue to hold it.
The two copper shares are my youthful sins, so to speak. I actually wanted to sell them, but the value of the shares is so low that I would even pay the order fee if I sold them.
That's why I'm keeping them in my portfolio as a souvenir for the time being.
$NKE (+0.62%) is still a strong company for me and will rise again in my opinion.
The company was chosen to expand a tech-heavy portfolio into other sectors. Keyword: diversification.
$AVAX (+3.37%) was basically an initial gimmick. I would actually like to either remove crypto completely from my portfolio or switch to $BTC (+0.11%) and then add to it with a savings plan.
In the near future, I would like to diversify further with strong stocks from Europe and Asia so as not to overweight North America.
If you have any suggestions for improvement, criticism or further questions, please feel free to post them in the comments!
Until then!
Scaramouch
Token unlocks are playing an increasingly important role in the valuation of tokens.
But what is behind them and what influence do they have on the price of a token?
Token Unlocks 101
Token unlocks describe an event in which a certain portion of a token that was previously locked (locked) becomes accessible to the respective shareholders - investors, team or the community.
- They are part of the so-called "vesting schedule", a schedule that determines how many tokens are put into circulation at what time.
An example: The vesting schedule of $AVAX (+3.37%)
The gradual release of the tokens is primarily intended to align the interests of the individual stakeholders and incentivize the team and investors in the long term.
Effects on the price
The influence of unlocks on the price of the respective token depends on several factors.
1️⃣ The size of the unlock
The more tokens become tradable at once, the greater the (anticipated by the market) selling pressure (anticipated by the market), which is why some tokens experience a price drop weeks before a major unlock.
2️⃣ The general market sentiment
In a bullish market phase, when demand is higher, even major unlocks can be more easily digested by the market.
💡 In addition, a study that analyzed over 500 unlocks found that only unlocks with less than 1% of the total volume have no measurable impact on the price of a token. If you want to delve deeper, you can find a link to the study in the sources section below.
Why is this important?
In May, we can expect numerous large token unlocks, with tokens worth around USD 4.75 billion coming onto the market.
This makes May the biggest token unlocks of the year so far.
- For comparison: In April, tokens worth just under USD 1.8 billion became available.
It will be all the more exciting to see how the upcoming unlocks will affect the respective tokens.
- For example, $AEVO and $PYTH will be made available at 752% and 141% of their current circulation volume respectively.
Zoom out
In the first four months of this year alone, altcoins worth around USD 70 billion were launched, of which just USD 8 billion are already liquid.
To avoid ending up as the "exit liquidity" of insiders, investors should always take a look at the vesting schedule of tokens before making investment decisions.
P.S. - Want more insights?
Twice a week we provide 15,000+ readers...
- a market commentary,
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- and insights into the most relevant events in crypto
Straight to your inbox. 📬
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------
Sources
Today's edition: https://blockstories.beehiiv.com/p/eigenlayer-stellt-eigen-vor-alle-hintergrnde
An overview of all token unlocks: https://token.unlocks.app/
The study on Token Unlocks: https://6thman.ventures/writing/we-analyzed-5000-token-unlocks-this-is-what-we-found/
Time for daily $XRP (+0.86%) bullying.
You can think what you like about it, but 9 out of 10 respondents find bullying quite funny.
The profits from the $AVAX (+3.37%) sales are immediately invested in $SPYI (+0.43%) immediately.
After all, I want to be the richest man in the cemetery one day. 😅
A few (further) thoughts on the current crypto market:
𝗕𝗶𝘁𝗰𝗼𝗶𝗻 𝗘𝗧𝗙𝘀: Yesterday, for the first time, we saw net inflows of over 1 billion US dollars into $BTC (+0.11%) ETFs for the first time. The inflows are not only continuing, they are 𝘣𝘦𝘴𝘤𝘩𝘭𝘦𝘶𝘯𝘪𝘨𝘦𝘯 increasing. Rising demand meets limited supply...it doesn't take a genius.
$ETH (+1.53%): Happy Dencun Day! Ethereum will undergo its next major upgrade later today. TLDR: Transactions on rollups become cheaper. Compared to the merge, there is almost no hype around this upgrade - and wrongly so. The fact that almost all memecoins are currently traded on Solana shows that the Ethereum ecosystem still has a cost problem and needs to remain competitive.
𝗘𝗧𝗛 𝗘𝗧𝗙: The market is increasingly pessimistic about the prospect of approval in May. The reasons given are entirely procedural (silence between SEC and applicants). To me, this seems like a healthy expectation, which would dampen the sell-off in the event of a rejection (because it would be priced in), but would bring corresponding upside potential in the event of approval.
𝗔𝗹𝘁𝗰𝗼𝗶𝗻𝘀: While BTC marked a new ATH a few days ago, most altcoins are still lagging behind.
Definitely still a lot of potential, but also a very high risk of burning your fingers with leverage.
Big picture: super bullish.
The 9 point increase in sentiment was short lived and lead to a 7 point drop overnight after a 9% crash in $BTC (+0.11%) . This left bitcoin struggling at the 20.3k mark but hasn't fallen below the 20k barrier. This of course is mirroring the S&P 500 which also took a dive yesterday too after the higher-than-expected CPI inflation data.
The Terra chains seem to ignore current data and work in the exact opposite way to the rest of the market. $LUNC (+3.91%) is up 5.5%, USTC is up 4.5% and LUNA is up 1.3%. Very few alts in the top 100 remain unscathed in the dip.$AVAX (+3.37%) and $EOS (+0.83%) both dropped by over 10% and $SOL (+3.92%) by 12%. There will be to be a bit of regrouping before the 21st rate increase but it won't be easy and plain sailing.
Staying strong now is going to pay off one day in my opinion.
Cheers Crypto Boyz and Girlz!
Market sentiment is like a yo-yo right now as we top up another 10 points. Firstly we went up 12, then down 11 and now back up 10 points. This puts bitcoin trading at ≈24.5k all in the back of slightly better inflation data. But we're certainly not out of the woods, but this is some welcome relief.
Many Top100 projects are posting up to double digit gains like:
$BTC (+0.11%)
$ETH (+1.53%)
$AVAX (+3.37%)
$FTM (+2.01%)
$MATIC (+0.94%)
$ATOM (+2.44%)
$SOL (+3.92%)
$NEAR (+1.54%)
Its maybe worth looking at $XRP (+0.86%) as the recovery there is still kind of marginal compared to the other mentioned top tiers.
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