At the end of October 2018, the price of Crush Crypto Core (CCC) was $1.0426, representing a decline of 4.5% 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 $900,000 as of October 31, 2018.
October was the most stable month since early 2017 in terms of cryptocurrency prices. In fact, the cryptocurrency market was more stable than the stock market, something happens very rarely.
However, some altcoins, especially at the microcap level, performed well in October. We believe there are a couple reasons contributing to this:
- Bitcoin price was stable, so some thrill-seeking traders sought to make money from trading smaller coins.
- Coinbase started listing ERC-20 tokens, which is a positive sign for the altcoin market in general.
Meanwhile, there were quite a few positive developments in terms of shaping cryptocurrency as an asset class that has a place in every investor’s portfolio.
- Goldman Sachs invested in BitGo, a startup promising to help institutional investors securely store their cryptocurrency.
- Coinbase successfully raising $300 million at an $8 billion valuation. This valuation is a 5x increase compared to their last funding round in August 2017.
- Fidelity Investments, an asset manager with $2.1 trillion asset under management, is launching a cryptocurrency trading platform.
- Morgan Stanley issued a research report stating that Bitcoin is a new institutional investment class.
And these are just the developments that happened within 1 month. This is a vote of confidence from the “smart money” and quite remarkable in our opinion, considering that the cryptocurrency market has fallen over 75% from the peak.
Of course, these infrastructure investments still need time to play out. It will be at least 2019 before the institutional money actually comes in.
We are constructive in the performance of altcoins in the near term, especially if Bitcoin stays at the $6,500 range.
CCC dropped by 4.5% during October 2018. CCC stayed between $1 and $1.1 for almost the entirety of the month. In general, major coins all dropped to various degree, while tokens experienced a bigger divergence of performance.
The coins in the CCC portfolio were down across the board. The drop ranged from -2% (ICON, Qtum) to -15% (Ether).
Token performance was better, with 3 positions (Basics Attention Token, 0x, and Raiden) generating positive returns from 13% to 44% while the other 3 positions (FunFair, Binance, and OmiseGO) experienced negative returns from -5% to -13%.
Consistent with our view that altcoin is going to outperform bigger coins, we have shifted our portfolio in a more aggressive allocation. We reduced Monero’s allocation to 5% and increased the total allocation for smaller coins like Zilliqa and Wanchain by 10%.
* The information contained in this article is for education purpose only and not financial advice. Do your own research before making any investment decisions.