At the end of March 2018, the price of Crush Crypto Core (CCC) was $1.6512, representing a decline of 44.1% 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 $1.7 million as of March 31, 2018.
The market continued its downtrend since the beginning of the year. By the end of March 2018, the overall cryptocurrency market capitalization was $259 billion, representing a decline of 69% from the peak in early January.
The prolonged downtrend has caused what’s called “reflexivity” – price movement impacts perception, which causes a shift in reality. The movement in asset value changed the outlook for some investors.
Basically, a downward trend drives out people who look for short-term gains and their money is unlikely to come back for a while, further prolonging the length of a downward trend. Right now, there is just not enough buyers to restart the bull trend.
Institutional money still wants to come in, but the custodian solutions are still being built out, so not a lot of money has actually been deployed yet.
We are seeing more and more people forecasting bitcoin price to bottom at $2-4,000. This is a healthy sign as it shows that the market is more rational now and not one-sided bullish on the short-term price.
In the picture below, we used an overlay between a popular chart on the market cycle and the overall cryptocurrency market cap trend from November 2017 (in blue line, the beginning of the market enthusiasm in our view).
Are we at the bottom? Can we drop further? Perhaps. Even if this is not the bottom, we believe it is a good time to enter into the market. Short term prices will probably still be volatile but we are confident that it would be rewarding if you are investing for the long-term.
CCC declined by 44.1% during March 2018. While the decline is steep, we have outperformed all but 1 of the first batch of DAAs on the ICONOMI platform. A few DAAs are actually down since inception while we are sitting at a 65% gain (CCC started at $1 at inception in October 2017).
In general, bigger coins outperformed smaller coins/tokens with the exception of ether which dropped the most among the portfolio holdings.
All the coins were down across the board, with some (Ether and Steem -54%) down more than others (Bitcoin -33%, Monero -37%, Icon -38%).
All tokens in the portfolio declined by varying degrees (Funfair -40%, Kyber -42%, Basic Attention Token -43%, Raiden -48%, and Everex -54%).
We have switched out 0x Protocol for Basic Attention Token. While we still like the fundamentals of ZRX, we feel that BAT is a better token in terms of actual utility usage as well as valuation.
We are currently tactically overweight Monero, Kyber Network, and ICON. Here’s our thoughts on each of these coins/tokens:
Monero: Best privacy coin with the most usage in our opinion. We believe it is a safe bet to outperform the overall cryptocurrency market as the public becomes more concerned about privacy.
Kyber Network: There are just so many tokens out there and users do not currently have an easy way to exchange different tokens. Kyber can solve this problem in a decentralized manner. The project is partnering with different wallets and blockchain projects (imToken and EthLend recently) to improve the user friendliness of cryptocurrencies in general.
ICON: The biggest news for ICON in March was its listing on Upbit and Bithumb, two of the biggest Korean exchanges. ICX is now listed on basically all the major exchanges. However, it also missed some deadlines, for example, the token swap and mobile wallet. With promising ICOs happening on the ICON blockchain soon, we believe it is substantially undervalued.
* The information contained in this article is for education purpose only and not financial advice. Do your own research before making any investment decisions.