Let’s take a closer look at Polygon!

Disclaimer: All investment strategies and investments involve risk of loss. Nothing contained in this post should be construed as investment advice. Any reference to an investment’s past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit. The data collected for this publication was gathered during the month of April 2021.

Ticker: MATIC

Market Cap: $9B

Price: $1.60

YTD Return: 8700%

Key Takeaways

It was a successful year for digital currency markets as excess fiscal and monetary expansion in response to the COVID-19 pandemic coupled with continued innovation within crypto asset technology has caused the total market capitalization for the cryptocurrency market to swell to over $700 billion as the digital asset market increased its market capitalization 273% year to date (YTD). Yet, despite favorable macro and microeconomic conditions uplifting the digital currency market as a whole, the never-ending fight for not just global economic dominance, but digital currency market dominance continues to persist between the “West”, North American and Europe, and the…

The price of bitcoin rallied nearly 30% in the month of October as the floodgates opened to push digital assets mainstream (Chart 1.0).

Chart 1.0: The price of bitcoin rallies 27.93% in the month of October

PayPal’s entrance into the digital currency space, allowing users to buy, sell and hold several cryptocurrencies in their PayPal wallets, caused traders to bid up the price of bitcoin as it caused them to reprice the possibility of digital assets being available to over 300 million users on the PayPal platform. …

After releasing the first liquidity mining token model back in June, Compound Finance has paved the way for parabolic growth in the DeFi space. Since the total value locked (TVL) in DeFi has ballooned from around $1B to over $9.5B or a +850% increase in three months. Liquidity mining, or incentivizing platform users with token airdrops for participating in the network, has caused several DeFi projects to garner mass adoption. Aave Lend, a non-custodial money market platform, has seen its total value locked (TVL) increase +4700% YTD, Curve Finance, a decentralized liquidity pool, has seen its TVL increase +1200% YTD…

As we continue to make our way through the second half of 2020, COVID-19 continues to propagate fear, uncertainty and doubt (“FUD”) throughout the world. The United States’ unemployment (see Figure 1) along with several other labour statistics have rebounded off of their March lows as the continuous lockdown of global economies, stemming from no other than the Leviathan’s response to the virus, is forcing structural deflationary pressures on the global economy.

Figure 1: United States Unemployment Rate. Source: Tradingeconomics.com

In response, Central Banks across the world are continuing to expand their balance sheets in an attempt to support the economy. As it currently stands, the Federal Reserve…

This month DeFi markets experienced unprecedented growth as the total value locked in DeFi surged from just under $979 million to $1.57 billion. In other words, the total value locked in DeFi has grown an astonishing +60% in June.

Total Value Locked (USD) in DeFi — DefiPulse

Make no mistake, this parabolic growth in DeFi markets was no coincidence. What spurred this rapid inflow in the DeFi markets was Compound’s launch of its token on June 15th. What makes Compound’s token so special is that not only does it allow holders of the token to participate in Compound’s decentralized governance, but lenders and borrowers on the Compound platform…

Bitcoin’s halving, which is expected to occur on May 11, 2020, is potentially going to disappoint many traders as it is most likely to be not just a “non-event” for the price bitcoin, but a bearish event. On one hand, market dynamics reveal short term bearishness for the price of bitcoin meanwhile, the price of bitcoin continues to trade in a range on both a daily and weekly time horizon. To take advantage of bitcoin’s current market environment, one could either sell volatility or “fade” the price of bitcoin going into the halving and post-halving.

Market Dynamics

The rally we…

Initial Stages of the Outbreak — December 31, 2019 — February 11, 2020

On December 31, 2019, Chinese Health officials inform the World Health organization that 41 people had contracted mysterious pneumonia in Wuhan, China. Thinking that the outbreak originated from a popular Huanan Seafood Wholesale Market, a day afterward, Chinese officials issue an order to close the Huanan Seafood market. In the following two weeks, officials identify the virus as a new strain of the Coronavirus. On January 11th, China records its first death linked to the virus outbreak. Both society and financial markets remain unreactive during the initial…

Coronavirus fears, which initially seemed to be nothing more than an afterthought, have finally materialized as COVID-19 has turned into a global pandemic. This black swan event has caused global markets to sell off sharply causing investors to abandon risky assets for safe-haven securities. In less than two weeks, the S&P 500 has fallen from its all-time high an unprecedented 27%. Digital asset markets are no exception, as bitcoin has dropped 20% more than the S&P 500. Meanwhile, in energy markets, a sudden Russia-Saudi crude oil price war added to the pandemic fears and produced a sell-off causing the commodity…

Alpha is defined as the excess return on an investment given the expected risks taken to generate those returns. Alpha is often referred to as “skill” or “edge”. On the other hand, beta is defined as risk premiums given by the market. In other words, “beta” is what you get for passively holding the “market” (Referring to S&P500 in traditional finance).

There is no denying that passively holding bitcoin, capturing “beta” in digital asset markets, has been extremely profitable as a digital asset investor. Since its inception to the end of 2019, bitcoin has had a compound annual growth rate…

BKCoin Capital LP

BKCoin Capital LP is a New York-based digital asset quant hedge fund dedicated to delivering consistent uncorrelated absolute returns.

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