The cryptocurrency market has yet to fully recover after falling from its all-time high in November last year. bitcoin and Ethereum 45 percent, wither and polkadot 65% below their record. With this falling market, investors have to be creative with their investments to keep growing revenues. As some institutional investors have revealed, investors’ unique strategies are based on local investors that are somewhat immune to the downturn. exchange tokenwas to invest in their
Bitcoin’s safe-haven status has been debunked of late, with the Russia-Ukraine war revealing how BTC’s relevance to the overall market. BTC’s 60-day correlation with the S&P 500 is also at a record 0.6.
Chief investment officer of Arca, a Los Angeles-based digital asset fund manager Jeff Dorman said the following on the subject:
“For some reason, people still think that Bitcoin is a safe-haven asset, even though it certainly does not feature a safe-haven asset. What should be safe haven is stock tokens because there are real revenues, cash flows and depreciation.”
The strategy for Arca was to invest in exchange tokens and one of Arca’s biggest bets is Bitfinex’s native token Unus Sed Leowas. Arca first invested $3 million in the token in 2019, at $1 per token, just after Bitfinex launched it to address its cash crunch. Jeff describes this investment as “one of the best risk and return investments” the firm has ever made. The company then sold its holdings at $5.50 per token. Dormans says that at a time of extreme volatility, the biggest gains are in exchange tokens:
“Basically, who benefits from volatility? Exchanges. Exchanges as their volumes and revenues increase [token’ları] It should perform better.”
Another highly flexible exchange token is the native token of the Sam Bankman-Fried-led FTX exchange. FTTis . The derivatives trading platform has become the center of attention in recent years, with a number of sports partnerships. Clara Medalie, director of research at Kaiko, a crypto data company, said:
“FTX’s token is strongly correlated with any positive news coverage. FTX had a better year than most other exchanges with their own exchange tokens, so it’s not surprising that FTT is positive.”
“Smart investors invest in exchange tokens,” Arca’s Dorman summarized. “Certainly anyone who does any real fundamental analysis and cares about real business growth.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.