Pockets of Opportunity
You might know that I joined the crypto space in 2017, just before the 2018-2019 bear market. Occasionally, I drive parallels between this bear and the previous one to look for lessons or gotchas. And, since we’re already one year into this bear market, I think it’s a perfect time to share what I think is my most valuable finding.
Although asset correlation during the bear periods has been strong, it doesn’t mean everything is perpetually bleeding. Projects compete more fiercely for attention and money, and investors dump on each other as soon as they get even small profits, but the game goes on.
The Crypto market is an ever-expanding blob of startups. The stream of technological advancements and the increasing number of participants continuously make it more diverse and competitive.
New niches like DeFi, NFTs, gamefi, and sub-niches like generative art and derivatives emerge. So, you can’t keep up with everything alone because it’s like drinking from a firehose.
The valuable finding I want to share is that if you remain involved and are in a quality community, everything else will take care of itself. SIMETRI matured with the market, and we diversified our efforts to keep up.
Nivesh regularly offers ways to spend as little as possible to potentially get something valuable from new projects. Anthony is constantly looking for ways to profit from NFTs, even if they look or sound weird. Sergey still finds high DeFi yields when U.S. bonds lure investors away from the stock market.
Opportunities are still abundant, even during the bear. Most of them are ultra-high risk and pure degenerative plays to recommend, but they exist.
Occasionally we would get a lucky strike, like a $1,000+ Aptos airdrop for using the project’s testnet (SIMETRI Edge readers could catch it). Although such events are not as frequent as during the bull markets, their mere existence is important.
These pockets of opportunity keep people investing their time and money to find the next profitable ideas. In this regard, I think it’s symbolic that the Russell 2000 small-cap index performed better than S&P 500 during turbulent times.
The more I think about the market, the more it feels like, in a decade or so, it will be almost indistinguishable from the stock market. We will have loosely correlated niches with well-defined communities of traders and investors that might have radically different views and investing approaches. Maybe we’ll be back to wearing ties.
But, more importantly, the pockets of opportunity will continue to exist. That’s why I think it’s important to remain active and stick with other productive people: you want to find these opportunities, but it will be increasingly harder to do it on your own.
SIMETRI Portfolio – Awaiting the Pivot
Disclosure: The author of this newsletter holds ETH. Crypto Briefing and members of the research team hold some of the Pick of the Month coins mentioned in the table above. Read our trading policy to see how SIMETRI protects its members against insider trading.
