Greetings to Everyone!
The action in the crypto markets is more of the same – Bitcoin and altcoins in general continue to consolidate before the next move up. However, many of our Portfolio positions have made new all-time highs recently.
Every day we get news of another major institution or multibillionaire investing in crypto. Expect this to continue and accelerate as the crypto bull cycle heats up in the coming months.
There were a couple of newsworthy stories I’d like to share with you.
First off, Coinbase, the second-largest crypto exchange in the world and the largest in the U.S., will soon have a direct listing on Nasdaq, with an estimated valuation of $100 billion.
This is an important milestone because it validates the crypto space as legitimate, valuable and in demand.
It will also give investors a proxy for the crypto market until an ETF is approved.
Next, I’d like to talk about a hack that occurred last week affecting one of our Portfolio picks, PAID Network.
In short, a hacker used a developer’s private key to access a smart contract and mint millions of new tokens, which were then dumped on the market for sale. This caused a sudden, precipitous drop in the token price. The PAID team discovered the issue and immediately took action to limit the damage. In essence, they created a new token contract and made the old one obsolete. Because everything is recorded on the blockchain, they were able to take a snapshot of the moment before the hack occurred, and could therefore verify how many tokens were owned by everyone. They then proceeded to airdrop the new tokens in order to make everyone whole.
It should be noted that the actual project’s code was not hacked, just a loophole using a developer’s private key.
This episode highlights both the risks of crypto projects as well as the integrity of quality teams. Kudos to the great team at PAID! The vast majority of affected token holders were very understanding and supportive of the team as they quickly worked to restore order.
To make a further point, this illustrates why you should allocate your crypto investments across a spectrum and never go all-in on any project, no matter how promising. You never want one failed project to significantly affect your overall investment.
Now as for the Portfolio, I’m adding another promising project:
Kylin Network (KYL)
For the appropriate info, click here.
That’s it for now. Everything’s looking up!
Dr. Henry Haley