A review on my crypto holdings - officially in winterland

It's been a while since I last posted. Semi-fire life has been fairly stable with nothing exciting nor motivating enough for me to pen something.

I have been watching the bearish market unfold on the sideline, one that whacked almost every single asset class except for oil. Gold was not spared either as its price is sensitive to the Fed's rate hike. (Since it is mostly used as an inflation hedge in an investment portfolio, the non-yielding asset will have continued selling pressure if Fed continues its interest rate hike.)

The worst of the bear-beaten lot must be cryptocurrency. Summer seems officially over and I don't know how long will this winter lasts. The massacre just got worse these few days. I was too confident and complacent last year to not harvest a fair share of profits while the sun shines. At the beginning of this year, I still DCA-ed into a few of them and thought maybe the sky was just... cloudy..

Until the hail storm comes, I have finally awoken to the fact that it is really winter now and how one catastrophe can trigger huge ripple effects.

Some of my holdings with biggest price percentage decline:

List is not in order of % in portfolio

ETH price is USD 2430 as time of writing.

Are these alt coins now reverting back to their "true values"? How much of their ATH worth were bestowed upon by speculators rather than users? Am I a speculator too?

High chance yes, cos I am not even using most of these coins directly for their actual functions. Eg. buying SAND for the metaverse bandwagon. These utility tokens' "true values" are determined by their supply and demand (think commodities), which in turn are determined by the functions they serve, ecosystem they reside in and their users count etc (Chain Debrief has a short article here on Tokenomics). YET these still can't let me put a figure to it, unlike a business's NAV or PE.

There's a reason why the saying is that crypto holdings should not exceed 5% in one's portfolio. Should always rebalance and keep it to 5%, and rein in the greed worm. Especially if you find yourself going too far out on the risk curve.

Besides buying too many altcoins towards the end of the party, another mistake I made was to close out my fantom-stable LP and swapped those stable to fantom tokens before the storm struck. (After the fud, now the storm whacked it further.)

Luckily, I have closed my Curve atricrypto positions earlier and withdrew the tokens as stablecoins. So my Defi's value is still better than if I was holding ETH spot. However, the stablecoins interest rates were all badly plummeted now, it hardly make sense to keep them on the dApps.

I will be retiring all my Defi adventures posts, also gradually moving out of Defi space now cos of the drastic APY drop (protocols like Aave / Curve are no longer offering native chain tokens as part of their farming rewards).

Whatever actions that we have chosen to do or not do will come back be consequences. What I can say is - always DYOR.

This was a mini bull trap that happened just one and a half month back. I was too late once again in realizing it.



I was not involved in Luna but I will be blogging some thoughts in my next post.

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