At the end of August 2018, the price of Crush Crypto Core (CCC) was $1.2096, representing a decline of 20.8% from the previous month.
CCC is a digital asset array on the ICONOMI platform. Starting with a $100,000 seed capital in October 2017, CCC had assets under management of $1.2 million as of August 31, 2018.
August was a continuation of July, where the market took a risk-off stance. Most investors either took money off the table or converted their holdings into Bitcoin, resulting in Bitcoin dominance rising from 48% to 53%, continuing the trend since May.
If you look at the chart of any altcoin for August, pretty much every single one traded down versus Bitcoin for the first half of the month before a reversal in the second half. This means that investors were trading based on emotions and not fundamentals. During these times, it provides good opportunities to pick up coins that have solid fundamentals on the cheap.
Towards the end of the month, investors started to have a bigger appetite for risks. We can see it when positive news such as listing on Bittrex starting to cause a price reaction.
Meanwhile, the ICO market is still very soft because more and more projects (new and old) are not performing. In response to the soft market, we are starting to see projects reducing their fundraising goal, which is encouraging to see. A reduction in starting market valuation allows for better reward to risk ratio.
CCC dropped by 20.8% during August 2018. In general, major coins (Bitcoin and Monero) are more resilient while altcoins showed a steeper decline.
As mentioned above, the market was fearful and investors were converting their holdings back to Bitcoin or fiat. This is reflected in the CCC portfolio, where every holding was down across the board in August.
Bigger coins generally outperformed smaller ones, with the exception of ether (-35%). The softness in ICOs definitely played a role in ether’s underperformance.
With the exception of Bitcoin and Monero (-5% and -10%, respectively), the coins in CCC were generally down 20-35%.
The tokens in the CCC portfolio were also down across the board. The holdings declined between 20-32%. During the month, there were little opportunities for outperformance in token selection.
We removed NEO and Wanchain and increased the portfolio weighing in the core holdings. We have increased the weight in CCC for Bitcoin, Ether, and Monero from 12.5% each to 15%.
After the rebalancing, we believe there is a better balance between the major coins, which are more stable while still provide good upside potential, and smaller altcoins, which are more volatile in nature but have a higher chance for exponential returns.
* The information contained in this article is for education purpose only and not financial advice. Do your own research before making any investment decisions.