Crypto
Forays into blockchain, NFTs and POAPs live here. I write about minting POAP tokens at family events, celebrating Ethereum’s 10‑year anniversary by creating an NFT and even using monitoring services to keep my POAP feeds up and running.
- Polygon: I got into Polygon with OpenSea’s announcement that they were adding it as an alternative blockchain to Ethereum for NFT sales. Polygon is a Level 2 chain with substantially lower costs, and has the very powerful benefit that you can transfer NFTs from Polygon’s Layer 2 chain to the Layer 1 Ethereum chain. I’m intrigued by the model of Ethereum as a core blockchain and specialized Layer 2 chains connected to it, and allowing fluid movement of tokens between them all.
- Solana: Solana is an incredibly performant blockchain built on Rust. It support smart contracts and you can even write them in Rust. Solana does not meet my market cap requirement however I bought my minimum to get early exposure to it and to get my wallet setup and play with it.
- Uniswap: Powerful solution to swap any token for any other token. Seems like a core component of the DeFi solution space. Meets the $10B market cap threshold.
- Polkadot: Newly listed on Coinbase and meets the $10B market cap threshold. Facilitates cross blockchain movement of tokens and data.
- ICP: Newly listed on Coinbase and met $10B threshold so added to basket. Promises to offer an amazingly performant blockchain with very good features. Worse performing token I’ve had now dropping 90%.
- Zcash: Zcash is super interesting to me because it supports multiple types of addresses including a shielded address that is more private. Zcash is one of the few that overs private transfers on its blockchain. Zcash does not meet the $10B market cap requirement.
- Tezos: I purchased Tezos just so I could buy some NFT at the REM5 for Good event.
- Bitclout: I’ve setup a profile on Bitclout, and all profiles on Bitclout hold CLOUT tokens. I also have one for the Weekly Thing. The whole ecosystem of creator coins and “diamonding” posts is pretty interesting. Bitclout can be purchased with Bitcoin, and you can sell Bitclout back to Bitcoin. The Bitclout blockchain is merge mined with Bitcoin. This does not meet the $10B market cap requirement, and it is also not traded on Coinbase.
- Basic Attention Token: BAT is the token that the Brave browser uses, and I’m intrigued by Brave and what they are doing to I added it to my basket. This does not meet the $10B market cap requirement.
- Mastering Bitcoin 2nd Edition - Programming the Open Blockchain
- Mastering Ethereum
- Resources from a16z for Understanding Crypto
- Crypto Startup School
- Crypto Reading
- Learn to Code Blockchain DApps By Building Simple Games
POAP 499157 at Olson Family Lake Day 2021.
Bought a little more Bitclout $CLOUT to play with creator coins and Bitclout NFTs shortly. Buy the dip? I’m jthingelstad there. It reminds me of what Twitter was like when it first launched.
Crypto Allocation (June 2021)
Time for another Crypto Allocation update. The last two months have seen a huge draw down in all crypto markets. Here is NYDIG Market Update on June 23, 2021 to put it into context.
The current market drawdown, the peak to trough decline, currently ranks as one of bitcoin’s toughest periods. The current decline of 55.6% is the fifth most severe, following big rallies and subsequent drawdowns in 2011, 2013 (which had two), and 2017.
So needless to say all crypto assets are down substantially in that period. Here is how my allocation looks as of today, with notes below. I’ve added some footnotes. Tokens that have no notes are ones that I have made an active decision to hold some invested amount in. Others are either included in my basket, or are tokens I hold for some utility.
* Indicates tokens that Coinbase makes a market in with a $10B market cap.
** Indicates a token that does not meet one of my criteria, meaning it is either less than $10B in market cap or is not traded on Coinbase, however I have purchased it for some other purpose.
Notes:
Also see April 2021 and March 2021 allocations, and my approach to crypto.
REM5 for Good: Simulacra Two
REM5 for Good ran a digital art event, Simulacra Two, and in addition to other options they offered NFTs of a number of items.
I missed the real event but found out about it before it was all done and picked up four NFTs.
They used Tezos for this and minted and sold the NFTs on H=N. I wasn’t setup for that at all so I bought some XTZ on Coinbase, setup a walled on Kukai, and was then able to grab these.
Crypto Links
Balaji Srinivasan shared these links in a tweet. I’m putting them here for reference, with a couple of my own added.
Main List
Extended
My adds
Crypto Markets and Kids Soccer
On Wednesday May 12 at 5:06pm CT Elon Musk tweeted that Tesla would no longer accept Bitcoin to buy cars. The company also has $1.5B of Bitcoin on their balance sheet, reported $300M of which they’ve sold. Musks message is about the carbon footprint of Bitcoin. Odd since this isn’t new information.
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP
— Elon Musk (@elonmusk) May 12, 2021
Anyway, my commentary is not about Musk’s position but the market reaction. Immediately, as one would expect, Bitcoin dropped 10%.
BTC
Now lets talk about kids soccer. Any parent that has watched their kids play soccer knows what it looks like. There is a big group of kids chasing the ball around with no tactics or strategy. Ball is over there, run and get it.
The crypto market was all kids soccer with this. Filecoin, which has nothing in common with the Bitcoin news dropped nearly the same, with a slight time lag.
FIL
Then Cardano drops the same too. Cardano however is a massively more efficient blockchain. The fundamental argument doesn’t apply. They even told that story.
ADA
The point here is that these markets and investors are still treating all of these assets as a single thing. Only Ethereum in recent months has broken out and moves materially on its own. I put this in my approach, but I think it is really important. You need some mental model of the utility for each of these assets. That utility should drive how you value them, and how you differently value them.
I love the #TeamSPS Cyberweek 2020 Shirt, and for the first time a paired challenge coin! 🪙 The challenge coin was also minted as an NFT. We also included the themed deck of playing cards. ♠️ Thank you to Kat Alberts for the great design.
Ethereum is up 32% in the last week, over 11% in just the last 24 hours! Hard to say what is driving it up, but it has definitely diverged significantly from Bitcoin.
On 4/30 at 11:29am I got an email from OpenSea officially announcing that they are adding support for Polygon (MATIC). Polygon is a network built on top of Ethereum. Interoperability to move NFTs in and out of Polygon into the main blockchain is a key feature for OpenSea.
Support for other blockchains (Polygon (formerly Matic) trading coming soon!)
Look at the trading activity for Polygon (MATIC). it is pretty obvious when the news leaked to the market. 😏
