'No Chain, No Gain' - Investing in blockchain companies and the burgeoning Web 3.0 infrastructure

Hello Pynk Community :wave:

Following on from our recent posts Thesis Portfolio Thesis Focus: Ready Player One about individual assets within the Thesis Portfolio, today we’d like to talk about one of the more recent additions. ‘No Chain, No Gain’ is a Thesis close to our heart. Here at Pynk, we have long been advocates of Blockchain technology and recent developments have only fuelled the fire. Until recently, the challenge has been to bring exposure to these assets to the retail audience, providing the excitement and growth potential of Blockchain technology, yet minimising the potential downsides.

What Thesis Portfolio have created with the ‘No Chain, No Gain’ thesis seeks to do just that. But first, let’s talk a little bit about blockchain technology and its ongoing impact on traditional financial infrastructure.

Cryptocurrencies, which sit at the heart of blockchain technology, have taken the world by storm. We believe the potential of cryptocurrencies goes beyond the hype by fundamentally changing the way people perceive trust and exchange value. At first, it was Bitcoin that made it possible to transfer value without an intermediary overseeing transactions. Today, the back-bone of the burgeoning Web 3.0 infrastructure is taking shape, guided by nimble teams with a vision to disrupt antiquated financial infrastructure and re-shape traditional business models.

Complexity and a lack of understanding led regulators, institutions and everyday people to dismiss cryptocurrencies as scams, pure speculation and a medium of exchange for illegal activities. However, the reality is there is huge potential and utility in cryptocurrencies. Distributed decision-making, near-instant and frictionless transactions, full auditability, and negligible costs have the potential to reshape the way we exchange value, the same way that the internet changed the way we interact with each other. Răzvan Păun, Trainee Investment Manager, Thesis Portfolio.

The multitude of tokens, the variety of use cases and the versatility of the underlying economic models of tokens bring about real benefits to token holders. Taking the classic example of Bitcoin, the rewards that Bitcoin miners earn by securing the network halves every 4 years, continuously limiting the creation of new Bitcoins, leading to supply shocks that drive price appreciation. More recently, the emergence of Decentralised Finance (DeFi) applications made it possible for token holders to earn yield on their tokens by locking them to secure emerging blockchain infrastructures, lend and provide liquidity for traders, as well as use them as collateral to mint other assets.

Members of the Thesis Portfolio Investment Committee are long-term advocates of blockchain technology, bringing their expertise to identify attractive investment opportunities in this nascent industry. Adoption is happening at pace amongst individuals and institutions. According to a Crypto.com February 2021 report, there are more than 100 million people owning cryptocurrencies and using blockchain applications, and the Thesis Portfolio Investment Committee believes the pace of adoption will continue.

As with any nascent industry, extreme volatility is the status quo. Our exposure to the cryptocurrencies market is risk-adjusted and focused mainly on leading public companies with strong competitive positioning.

Counterintuitively, we believe the much feared regulatory review on the sector represents an overall positive catalyst for the development and growth of this industry, removing uncertainty and attracting further institutional investments. Pouneh Bligaard, Director, Head of Research, Thesis Portfolio.

All investments have the potential for profit and loss and your capital may be at risk. Past performance is not indicative of future results.

This material is not investment research in accordance with the legal requirements designed to promote investment research independence and is also not subject to any prohibition on dealing ahead of the dissemination of investment research; and as such is considered to be a marketing communication.

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This Thesis is going to be my fav I already know :grin::sunglasses::heart::partying_face:

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Glad you like it @Tradelta. Any assets you’d like to see included in the Thesis in the future?

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Mmmmm…dear @Al_Wallace Al this is a superintriguing question.

There’d be many projects to put in it but actually, imho it’d be wise to focus NOT on the projects themself but on the way we are going to offer this kind of assets.
What I mean to say…would we like to offer the tokens themself?
Are we going to offer derivates of those tokens based on the average price on different platforms?

Problem is that each way we go, nowadays there are a lot of platforms offering any sort of blockchain/token in many different ways and it is some time that I don’t see anything being original in the offer in this field.

What I feel to suggest in this case is to focus on an ORIGINAL APPROACH that no other platform is already offering.

What come in my mind as I am writing, are ETF like products the like of FANG for the stock market for instance but in this case based on blockchain projects.

Here follow some ideas that are coming in mind:
Top ten ETF: giving the average of the top ten for market cap
Rising stars: the average of the most recent and promising project in the space regardless what’s the field they are into and the things they solve (gaming, defi etc …)
Best in the game: average of the best tokens in the gaming industry (here there will be alot to search into…mega)
Cefi and exchange: average of the tokens of the top platforms in the space.

In the end my hope is that Pynk comes out with something unseen and original in this area in Pynk’s style! :love_you_gesture:

By the way…if you need someone to help in reasearch in these areas please consider me available :heart::money_with_wings::money_with_wings::money_with_wings::money_with_wings::money_with_wings::sunglasses:

Moonbaby :full_moon:

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@Al_Wallace - thank you for sharing this post. Waiting for thesis portfolio to start in my region so i can look into it deeply and with conviction…head on :slight_smile:

@Tradelta - awesome awesome awesome ideas. keep it up boss.

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Interesting ideas @Tradelta, I’m not sure if it is possible to directly invest in individual crytpo assets yet via the stock market, is it? I thought that there was some talk about a possible move into ETFs but I’m not sure if these ever got off the ground. Do you know anything about this? or does anyone else? I’d love to know :slight_smile:

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Hi Chris! Actually i think we are going the opposite way ahahahah.
With this I mean that the future of the stock market itself is that is going to be fully tokenized.

What does it mean in practice for the “traders”?
They will be able to trade stocks h24 24/7
They will be able to spend immediatly their token avoiding withdrawal processes.
Faster transactions and lower fees and commisions.
These are just 2 or 3 of the most promising changes given by tokenization of assets.

So, in my opinion even ETFs are going to be tokenized one day or another.

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stock trading 24/7 ---- my GOD that will be crazy change of lifestyle… :yawning_face: :yawning_face: :yawning_face:

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