2 Executives Announced Altcoin Projects They Call “Hidden Gem”!

In just over three years, Carlos Betancourt and former Wall Street trader Kevin Kang transformed crypto hedge funds into an 11-person operational unit that controls $130 million in assets. However, the journey has not always been easy for the founders of BKCoin Capital. In an interview, executives tell their foundation stories and altcoin projects involved in crypto strategies. we too cryptocoin.com We have prepared the important headlines of the interview for you.

“We are looking at 10% to 50% returns per transaction in crypto, while high single-digit returns are pretty good in the traditional world.”

It took more than a year for Carlos Betancourt and Kevin Kang to prepare for the fund launch. Managers say they had a difficult time with the lack of crypto custodians ready to serve active hedge fund managers at the time. “They had cold stores and it would take 24 hours to get your asset before you could trade,” recalls Carlos Betancourt. “This is useless for an active manager who sees an arbitrage opportunity and needs to act quickly.”

Like many crypto traders, Kevin Kang and Carlos Betancourt are attracted to crypto after encountering enormous arbitrage opportunities, which typically involves buying crypto on one exchange and selling it at a higher price on another. Kevin Kang comments:

In the traditional world, this is a pretty good year if you have high single digit returns. In crypto, on the other hand, we’re looking at 10% to 50% returns per trade, so coupled over the year, we see a very good opportunity to pass.

Kevin Kang does not miss the other side of the coin. The executive says that when he first started trading in crypto in 2016 and 2017, it seemed like he could do nothing wrong with even a simple buy-and-hold approach. However, he notes that when the crypto bear market formed in 2018, many investors were wiped out due to the spikes and liquidations of leveraged trades. .

Tricks of crypto trading strategies

As a result, they decided to enter the market with a market-independent strategy. As the cryptocurrency market evolves, arbitrage opportunities are rare, but Kevin Kang says they still exist in the derivatives market and offshore exchanges. The trick, according to Kevin Kang, is to always follow new launches and look for a market there, whether it’s new tokens or altcoin projects, new investment vehicles or products. Kevin Kang continues:

Obviously, it’s not going to be a strategy where we’re the only ones who know about it. There are smarter people out there who can figure this out. But in terms of alpha decay, we have to make sure we’re one of the first to recognize the opportunity and apply it before that arbitrage disappears.

While its flagship strategy is on the rise, the company has also launched smart beta strategies for Bitcoin (BTC) and leading altcoin Ethereum (ETH). These two strategies deal with arbitrage, return to mean, momentum and trend trading. But it expresses earnings in Bitcoin or Ethereum. Thus, investors can accumulate more crypto assets instead of dollars. According to Kevin Kang, these two strategies have become very popular among Bitcoin-owning family businesses and miners as they can accumulate more.

Over the past two and a half years, the fund has also begun to develop its market capabilities. Today, it provides liquidity on major exchanges by giving two-way prices in 60 currency pairs and collects the buy-sell spread as a return. Kevin Kang says that BKCoin plans to continue to grow its market maker desk as there are more opportunities to enable expansion in smaller token or altcoin projects.

Recently, the firm has launched a decentralized finance strategy that will invest 25% of the ledger in 10 to 15 low-value DeFi tokens and distribute the remaining 75% to DeFi yield farming. Carlos Betancourt adds that the team will conduct fundamental and risk analysis of both tokens and vulnerabilities in some DeFi protocols:

As we move forward, we pay a lot of attention to what exactly is behind the protocol, what the code looks like, and the extent to which they make it public.

An upside and undervalued altcoin with huge demand

Kevin Kang and Carlos Betancourt are always brainstorming arbitrage opportunities and undervalued assets. The duo is finding hidden gems in swap Non Fungible Tokens (NFTs), DeFi tokens, and specifically tokens for Blockchain-based play-to-win games. When choosing tokens to invest in, the duo is trying to focus on those with “enormous demand”.

One of the tokens that they haven’t been able to take their eyes off lately is the token of Terra (LUNA), a layered Blockchain developed by South Korean firm Terraform Labs. The decentralized financial payment network itself powers a basket of stablecoins pegged to a fiat for cross-border transactions. According to CoinGecko, the LUNA token used for governance and staking has increased by 11,576% over the past year. Kevin Kang states that Terra’s latest upgrade, Columbus-5, allowed him to burn $2 billion in tokens in just one week:

There is a limited supply as so many have been burned. But there is still a huge demand for tokens. So their tokens are accumulating tremendously this year.

In general, Kevin Kang believes that investors looking for asymmetric bullishness in crypto will now have to look to smaller tokens:

You will no longer see Bitcoin yielding 6,000% per year. Because the more mature an asset class is, the less volatile it will be and the less returns there will be. So, if you’re looking for these types of returns, you’ll have to get down to the smaller caps. I think a lot of smart people place their bets here.

However, the executive says that early investing in small altcoin projects can be extremely risky, so investors can start by allocating 1% of their portfolio to a DeFi token basket to mitigate risk.

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