Triaconta Weekly #214
The following topics will be addressed in this weekly.
- Luna crash
- Bundle performance
- Market overview
A black day for crypto and especially for DeFi. The number 5 crypto Terra (LUNA) is no more. The Luna Foundation Guard’s decision to convert part of its treasury to Bitcoin and other crypto currencies went all wrong when the prices started to drop significantly. The collateral for stablecoin UST was no longer worth enough and the peg could not be maintained through purchases with the treasury. Everything including their over 1.5 billion Bitcoin was sold and this caused the market to fall even more. Trading was halted globally this morning as the price reached 0 euros and the future of Luna is extremely uncertain. Triaconta has decided to discontinue the sale of Luna and do an additional interim revision of the Top 30 and DeFi bundle.
We are very sorry that a so far very successful project has come to such an abrupt end and has caused a significant loss for many of our customers. Unfortunately, this is a risk in the crypto market and one of the reasons why Triaconta started a Top 30 Bundle in 2017. A coin that suddenly loses all value only causes a drop of 3.33% in a well balanced Top 30 Bundle. The price of Terra (LUNA) for example has risen over 1700% since it was added to the Top 30 Bundle and regular balancing then ensures that automatically profits are taken and the risk of a crash is reduced each balancing towards 1/30 of the bundle.
The market is showing a big recovery today after a dramatic week. At least the huge crypto sales of the Luna treasury are now over. Bitcoin is again priced above the psychological barrier of $30,000 and our €30,000 has almost been reached.
1 Month: -26.14% | 7D: -19.82% | 24H: +13.82%
1 Month: -43.97% | 7D: -32.32% | 24H: +22.48%
1 Month: -49.28% | 7D: -38.68% | 24H: +35.65%
1 Month: -56.20% | 7D: -43.00% | 24H: +19.58%
In the emergency revision, Terra (LUNA) and Fantom disappear from the Top 30 Bundle. Our new additions are Apecoin (APE) and Elrond (EGLD).
Apecoin belongs to the APE ecosystem and is simultaneously a utility, governance and game token. It is one of the best performing crypto currencies of recent times and closely associated with the successful NFT series Bored Ape Yacht Club.
Elrond or E-gold started back in 2017 and has its own mainnet since July 2020. Elrond is similar to Ethereum and Ziliqa in its support of smart contracts and decentralized apps. Unique to Elrond is its setup with sharding and proof-of-stake, which Ethereum is also looking to grow towards. Elrond is already running at full speed with about 12,500 transactions per second. This makes Elrond very suitable for Web3 applications such as gaming and the metaverse.
The DeFi bundle also needed an immediate overhaul with Terra (LUNA) and Fantom disappearing. Maker (MKR) proved to be the strongest coin in the DeFi storm and returns.
Our new addition to this bundle is Convex Finance (CVX). This innovative DeFi protocol is built on top of Curve Finance, currently the world’s largest decentralized exchange for trading stablecoins (!).
There is also some good news to report especially for our German customers. The BMF (the country’s Federal Ministry of Finance) decided on Wednesday morning to introduce a drastic tax break for crypto investors. While Europe’s largest economy previously gave tax-free status to all crypto assets held for more than 10 years, the new update scales back that rule to just one year. The best European country for crypto still remains Portugal where there are no crypto taxes at all.
Adoption by banks is unstoppable. This week Brazil’s Nubank is adding Bitcoin as an investment product for customers (surprising detail, this bank is partly owned by Warren Buffet).