Trend Reversal or Another Sucker's Rally
Understanding the Direction of the Market: Recovery Phase - Wallet/Portfolio Review (Week 17/52)
📟 Disclaimer
I am not a financial advisor, and nothing I say in this substack is financial advice.
This is all educational content you can use as a starting off point for your own research initiatives. I’m just another random individual who started a substack ‘cause I think I have something to share with you all’. 🤷
That said, if you’d like to know a bit about me and are wondering why you should listen to me, read this intro post I wrote 🙌
👛 Wallet Review
This wallet review is a recurring post. The aim is to post an official update every Monday and see how far I can grow this little stash by week 52.
As of January 16th, 09:00 UTC this tiny stash of mine sits at a modest value of $950 USD, dubbed week 16 closing balance & week 17 opening balance.
Week Zero(0) Opening Balance Was: $450
I won't be going through all of my investments in detail in order to keep this review succinct, engaging, and free of repetition. I will only be covering my activity over the last week!
I advise you to review the posts from the previous week and evaluate how this "experiment" is going.
The Market Went Up, as we Predicted/Speculated - Did I Secure Profits or Make any Adjustments?
As illustrated in the transaction log above, January 14th marked the day I resumed adjustments to my portfolio. I had chosen to maintain a passive approach and simply hold my investments for an entire month, which ultimately resulted in significant profits.
This serves as a reminder that patience is a crucial aspect of successful investing and that timing plays a vital role in maximizing returns.
In previous portfolio reviews, I had emphasized my intentions to close certain positions and take profits if Ethereum (ETH) reached the $1600 level. This strategy, combined with a patient approach, ultimately proved to be a profitable one.
It is a prime example of the importance of having a clear investment plan and remaining disciplined in executing it.
As evidenced by the transaction log above, one of my initial actions on January 14th was to withdraw my sUSD from the polynomial vaults.
To be candid, I am uncertain as to whether this decision was a wise one. It is possible that the strategy did not have sufficient time to yield returns or that my capital was too insignificant to generate a substantial return.
In summary, while I believe that polynomial has potential, it did not provide any notable benefits to my portfolio. I may conduct further research to determine if my approach was flawed.
However, it should be noted that I invested approximately 113.9 sUSD and ultimately incurred a net loss of $1 over the past few months while my capital was locked in the vault.
Additionally, the opportunity cost of not having invested in other projects during this market rally resulted in a minimum loss of $50. My initial plans were to invest this capital into SNX and Radiant Capital, both of which have seen double-digit percentage gains.
As previously discussed in my weekly review, I had plans to sell a portion of my ETH and OP tokens when Ethereum reached the $1600 level. I executed this strategy by selling approximately 80% of my ETH position and 50% of my OP position, resulting in a profit of $121.439 USD.
This aligns with my investment strategy of taking profits at predetermined milestones to secure gains and reallocate capital.
After selling a portion of my ETH and OP tokens, I utilized Stargate.finance to bridge those tokens over to Arbitrum and reinvested the profits into Radiant Capital. As illustrated below.
I have been closely monitoring this project since late October 2022, but the prices were slightly higher at that time, around 0.08 cents per token. This move aligns with my strategy of reinvesting profits into promising projects that I have been tracking and waiting for a more favorable entry point.
Why Did I reinvest profits into Radiant Capital?
With Radiant, users will be able to deposit any major asset on any major chain and borrow a range of supported assets across many chains. Radiant intends to be the first omnichain money market.
The main objective of the Radiant DAO is to gather the roughly $22 billion in fragmented liquidity that is now spread among the top ten alternative layers.
The diagram above illustrates how the Fee Accrual Model works within Radiant Capital. This model is an essential aspect of the project and provides an understanding of how it generates revenue.
If you are interested in learning more about Radiant Capital, I recommend visiting their documentation for further information.
Back to the Transaction Log
Once I acquired Radiant tokens, my objective was to stake/lock the majority of them to earn RDNT, WBTC, WETH, USDC, USDT & DAI rewards.
The remainder was added to an ETH/RDNT liquidity pool on Sushiswap and staked in their Pool-II to earn farming rewards. By utilizing these strategies, I aimed to maximize the potential returns on my investment in Radiant Capital.
I must admit that this investment has already begun to yield positive results. I purchased the token on January 14th, and the following two days saw back to back 30% rallies in the RDNT token.
This is a promising start and I will continue to closely monitor the performance of this investment and make any necessary adjustments to my strategy moving forward.
If you are considering investing in Radiant Capital, I would advise waiting for a pullback in the price and averaging in over a week. This approach can help mitigate risk and provide a more favorable cost basis for your investment.
I personally do not see the need for FOMO (fear of missing out) when it comes to this project, I invested because it aligns with my portfolio strategy of balancing my investments across the layerZero ecosystem alongside Stargate.finance.
As always, it is important to conduct your own research, have a clear investment strategy, and remain disciplined in executing it. None of the above is Financial Advice.
📣 Weekly Highlights/Drama:
Crypto exchange FTX has recovered over $5 billion in assets, according to a bankruptcy attorney, who also stated that the amount still missing and owed to customers is still unclear.
The attorney further mentioned that the assets recovered do not include another $425 million in crypto held by the Securities Commission of the Bahamas and the total amount FTX owes its creditors is still unclear. He also added that the former CEO created a line of credit worth $65 billion from the exchange to the trading arm.
According to Landis Rath & Cobb attorney Adam Landis, FTX used the funds for buying planes, houses, throwing parties, making political donations and personal loans to its founders. The company also sponsored the FTX Arena in Miami, a Formula One team, the League of Legends, Coachella, and other businesses, events, and personalities.
It is worth noting that FTX has recovered more than $5 billion in assets, including cash, liquid cryptocurrency and liquid investment securities.
However, it is unclear how much is still owed to customers and the total amount the company owes to its creditors. Additionally, the assets recovered do not include another $425 million in crypto held by the Securities Commission of the Bahamas.
🪤 Outro
Of course, it goes without saying but bears repeating that nothing I say or share here is financial advice. I’m just another random individual starting a substack ‘cause I think I have something to share with you all’. 🤷
Also, like many individuals who are doing this for a living I also am a humble penniless fool. So, if you are a kind, bountiful, and gifted individual who has benefited from this S#!t Postery and wish to buy this S#!t Poster of yours a coffee, Some drip money would definitely be appreciated and will help to keep my fingers going on this mechanical keyboard of mine.