August 2021 Update — Degen Crypto Journey
Visa buys CryptoPunks, Pudgy Penguins and Bored Apes are taking over Crypto Twitter, BTC finally breaks $50k (for like …half a day)WTF is going on?!?!? Let’s talk about it 😉. Again, I’m no financial advisor, and I’m just some degen-ass bum who may or may not have gotten lucky the past few months. glhf!
You know…it’s pretty ironic and on-brand that August 2021 has been monumental for cryptos, and the focus for this month has been about the meteoric rise of fucking jpegs…😡💢 I mean…are you fucking kidding me?BTC finally breaks $50k and we’re looking quite good for the near future…altcoin’s resurgence of dominance has been incredibly exciting…and we’re looking at jpegs??!?! I’ve been sitting in front of my computer screen for months, looking at charts and researching coins. And you’re telling me that I should’ve been flipping jpegs? FUCK OFF! I’m beyond triggered…Turning 1ETH into 60ETH?!?! I…I…if you can't beat em…join em. LMAO
Here are just some of my proud holdings from this month. If you’re not familiar with the NFT market, the notable ones have always been CryptoPunk, Hashmasks, and mooncats. The newer ones that got a lot of traction this past couple of months are Bored Ape Yacht Club, ON1 Force, Pudgy Penguins, Koala Intelligence Agency, and more. I was lucky enough to mint 10 Koalas and this project started to absolutely melt faces. I really can’t express the feeling of spending $200 on a jpeg, and the next day someone offers to buy it from you for $7k (I didn’t sell…#HODL). The feeling is quite surreal, and honestly people talk about community in the NFT scene. I thought it was all bullshit before, but there’s something powerful about thousands of people holding onto cute Koala pictures and making profits together. It’s addicting and honestly produces an out-of-body high that I can’t describe.
The real question is will the NFTs craze subside? stay stagnant? or continue? That’s hard to say…I mean I’m a crypto trader…I don’t really flip jpegs. I’m passionate about cryptocurrency companies and its technology. Personally, I think the hype is getting a little bit out of control, and the NFT craze will slow down. However, I think legitimate projects such as Cryptopunk or Bored Apes will have staying power. I’m not sure if we will get that third and last wave of price run-ups in NFTs at the end of the bull run when BTC breaks $100k or $150k or even more, but I know that legitimate projects will always be relevant 4–10 years down the road. I guess what I’m saying is…nobody knows lmao. And as stupid as normies think spending hundreds of thousands of dollars on jpegs is completely hysterical, there’s a reason why this shit is happening. Some of this stuff will eventually become normal :)
NFT Euphoric Reflection
Here’s the thing…everything I just said above were drafted 5 days ago. I want to have a discussion here to reflect how fast the industry changes. Within 5 days I saw Koala’s floor price went from 0.08 → 0.2 → 0.5 → 1.0 → 1.2 → and now we’re sitting at 0.8 $ETH. Bored Ape Yacht Club dropped some dank ass Mutant Apes on us. I’m still skeptical of how far this NFT craze can go, and I was going to flip half of my collection for quick profit and hold the rest to see if the space will continue to do well i.e. 2–3 months from now. Well…everything changed for me when I aped into a Mutant Ape. I have a whole twitter thread documenting why I did it, and how I drunkly and in the spirit of degeneracy dropped $19k on a jpeg.
My point is this…within 3 days my thought process went from “I think this is a good time to profit off of this NFT euphoria” to “I think we’re still early…even if the market tops off and drops from here…I think we’ll be at a better place in 3 months”. Ultimately, no one really knows what the top is. The trader in me is sending me red flags, but the NFT community has really roped me in.
I guess we’ll see how my prediction goes in 2–3 months. Speaking of predictions…
Let’s Talk About Performance
As always, here’s my performance for the month. Total transparency :)
Starting off, I’ll talk about how I’m calculating my NFT’s value. I’ve always held some NFTs, but they were never a sizable portion of my portfolio for me to explain how I’ve been tracking them. So…I’ve been tracking them at “acquired cost”. This way, I don’t overcalculate my portfolio’s value when they swing up, since I still have to sell them in order for me to truly recognize them as “value”. I’ve also never spend a considerable amount of money on NFTs where if their value do drop, I’d have to recalculate my total gains as well. Obviously, this all changed this month…so I have a updated tracker to display these potential NFT gains/losses…
You might have questions as to why I’m only counting these NFTs at floor prices. I know that I own some “rare” NFTs that should easily sell above floor prices, but again…I don’t want to overcount my gains and give myself fake euphoria. HAHA. It’s better to undercount my gains psychologically for me to be a good trader 😅
Anyways, I would normally post these updates in the beginning of the month. Due to how volatile the NFT space is right now, I’m not too sure how I should be calculating my gains. In addition, I have some topics I’d like to share to the blog readers (mostly my real life friends)…so I decided to get this out of the way today. I’m honestly just scared that within a day or 2, the NFT space will change so much that I’ll have to re-write some parts of my blog LMAO.
Also here’s my allocation as of right now, so here you go. (NFTs 14%?? WTF…I’m a fucking degen LMAO). I got a couple notable things to point out here.
- The last time I posted my allocations, I had 34% of my portfolio in the Pancake Swap Pools. That has dramatically come down to 4%. As the entire BSC system becomes sketchier every day, I finally decided to reallocate that money to…drum roll…Solana! I’m hoping I can touch on this in a different blog if I have time :)
- Even though my “other” category allocation hasn’t moved much, there’s some intricacies here. I’ve defintely increased the number of small cap coins particularly in this month. This is because as we head towards the final wave of the bull-cycle, I believe small cap alt-coins will do quite well. The question is WHICH small cap alts will. Most of the notable coins here that has its own category are things that I really believe in. Coins that I poured a lot of energy in when I was researching these projects. As we get closer to that final parabolic phase of the bull-cycle, I am reducing the effort and toning down the harsh criteria of my due diligence process to pick coins that I think are just “ok”. I’m hoping that if I have time, I can go through some of these picks as well.
Final Recap
Anyways…that pretty much wraps it up. I did say in my last blog that “August could be the real bullsih breakthrough for the broader crypto market”, and I guess I was right about that 🤞. I’ve been telling the boys that I think BTC will be at $52 — $55k levels in September. Unfortunately, I didn’t put that in my last blog. Also, we’re not even there yet…BTC is having trouble breaking through that $50k resistance level. We’ve been rejected so many times…I’m getting flashbacks of my middle school days. I guess we’ll see…we got about 36 hours for BTC to be at my prediction levels.
Lastly, I want to drop this here from my last blog. I sort of predicted NFT’s boom? I mean…I thought it would take a couple months for NFT to come back…but THIS amount of volume? THIS amount of hype? THIS fast?? Nah…I didn’t see that coming. So…maybe a smol pat on my back??🙊
Alright GLHF degens.
