Our experimental wallet has done better than 2x recently (over the past ~45 days). Just before the recent period, it held ~$5800 and I went heavy on memes + the $VIRTUAL protocol (for a deeper explanation: here’s the link to my Oct 24 piece).
You can follow the wallet for free here (on chain address included): https://debank.com/profile/0xe80b1375ff7a498d5c28454fb60d79ad3434cfd2
It is our team wallet, so you’ll see occasional experiments that would be obviously stupid trades. DO NOT simply copy-trade it. Also, to use DeBank you only need to verify your wallet. You don’t have to pay anything.
I mention this because our team is finalizing our new offerings. Although I’m a hedge fund manager, this shows that I still know how to 2x (or more) small sums in short periods. I also know how to keep it, which is what makes you wealthy. We had about 20% exposure to the VIRTUAL protocol and an equal amount to yield farming.
Go here for video explanations of the new tiers.
Existing subscribers are (as always) grandfathered into the new subscription levels at the lower rates. You’ll just get more stuff. You’re welcome and thank you for the support!
The success of the $VIRTUAL protocol represents the ongoing strength of two trends: AI and memes. But you don’t want to miss the other key trend: a return to functional projects in DeFi, DePIN, RWAs … maybe even gaming.
Why is this happening?
Because traditional finance is looking for areas to grow their wealth as liquidity continues to rise from its October 2023 low (as measured by the US M2).
Institutional investors have mandates. Though some will have the latitude to invest in meme coins, most will be more narrowly constrained to emerging technology. With the SEC no longer strangling the sector, the “functional” projects in the crypto space become viable investments.
The end of quantitative tightening (QT), expected in December, is likely to accelerate the liquidity supply even further.
This should help all markets, but I would watch the contango ratio on the S&P 500 before blindly buying an index fund. It’s complicated to explain, but easy to “read.” A healthy market has a positive (rising) structure―as is presently the case (see image below).
This is a “betting market,” of sorts, on the future of the S&P 500. In my experience, betting markets are the best predictors. Just recall how the polls before the US election had the race at a dead even heat, while the betting market predicted a red wave?
Well, the betting markets were right and polling was wrong. That’s how it typically is.
And that brings me to a final announcement: we’re dividing this newsletter into two. Going forward, this newsletter, to be retitled The Art of the Bubble, will focus on bubbly lessons written by yours truly.
A second, called The Cypher, will give you the macro data that focuses exclusively on betting market data like the VIX term structure above. It will be a short 3-minute read.
I’ll serve as the "editor-in-chief" for a team that includes Eric Mechler, CFO®, CHFC®, AIF®, Todd Mei, PhD, Julian von Loesch, PhD, Elyse Purcell, PhD, and David LaRocca, PhD.
Among us, we have degrees from the University of Connecticut, Boston College, University of California at Berkeley, and Harvard University. Collectively, we’ve published 11 books and hundreds of peer-reviewed, academic articles.
You don’t have to do anything. Just look for 2 weekly deliveries.
Happy Trading!
― Sebastian Purcell, PhD
