Markets

No doubt the present situation is still dire. Inflation is high, war is raging, companies going bankrupt left and right, currency markets are instable, bond markets are imploding, interest-rates are rising, commodity and energy prices are still elevated, China is not coming back as expected and a rising USD is putting economic pressure on the rest of the world.
But let me ask you, what could make it worse? No seriously, what could? Maybe China invading Taiwan or Russia using nuclear weapons? Then it would not matter anyway. A lot of negativity is already priced in, a lot. US government bonds had their worst performance ytd. since 1788 (!!!).
Central banks around the world are starting to grow their financial mullets out to absorb the shock. QT in the front and QE in the back.
Central banks have to ensure public credibility by raising rates and fighting inflation, but they are starting to support domestic markets in one form or another. The BoE was buying bonds to save pension funds, the BOJ is supporting the Yen, the ECB is favouring bond buying from italy over germany and the PBOC is supporting stock and currency market. It is only a matter of time until the FED will shift policy aswell and all other central banks will lean even more into QE.
Could there by a trend shift in the USD?

Alright, enough macro larping….

The crypto markets are also hard hit by this environment. But technology is trying to solve big problems that will make life better in the future and hence is forward looking. Climate change, economic deglobalization and supply-chain fracture, economic productivity through robotics, human health through biotech, AI to enhance all fields, value + creation exchange through the internet and globalization of society (this is crypto) and sustainable food production. To name a few.

Usually these technology-sectors are noticing first when things are getting better, because they are so forward looking. And especially crypto is holding up remarkably well (even though still on depressed levels) and starting to look like we might be in a bottom formation.

DeFining Capital performance as of 01.11.22:

With DeFining Capital we used the depressed prices to rotate from low conviction positions to high conviction positions. Being fully invested and often further out the risk curve led to significant underperformance compared to the whole crypto-market. But we are confident that through diligent project picking and patience, we will achieve superior outperformance when the market returns.

DeFining Capital II performance as of 01.11.22:

In DeFining Capital II we reduced cash reserves to take advantage of cheap prices in high quality projects. Approx. 60% of initial capital is now invested.

Overall we expanded our markets exposure with focus on projects that are continuing to develop their product and execute on their vision, despite market conditions. These will be the big winners of the next cycle.
Furthermore we are highly focusing on new projects in the gaming, open world and eSport sector as we anticipate high traction in these fields when crypto mechanics are elegantly implemented. A general trend towards synthetic realities and immersive worlds will support this development.

Markets are still under pressure. But with conviction in a well thougth out thesis about the future, joy in participating in the craziness of a evolving crypto sector, patience and a bit of courage, we keep marching towards a successful future.

Markets

No doubt the present situation is still dire. Inflation is high, war is raging, companies going bankrupt left and right, currency markets are instable, bond markets are imploding, interest-rates are rising, commodity and energy prices are still elevated, China is not coming back as expected and a rising USD is putting economic pressure on the rest of the world.
But let me ask you, what could make it worse? No seriously, what could? Maybe China invading Taiwan or Russia using nuclear weapons? Then it would not matter anyway. A lot of negativity is already priced in, a lot. US government bonds had their worst performance ytd. since 1788 (!!!).
Central banks around the world are starting to grow their financial mullets out to absorb the shock. QT in the front and QE in the back.
Central banks have to ensure public credibility by raising rates and fighting inflation, but they are starting to support domestic markets in one form or another. The BoE was buying bonds to save pension funds, the BOJ is supporting the Yen, the ECB is favouring bond buying from italy over germany and the PBOC is supporting stock and currency market. It is only a matter of time until the FED will shift policy aswell and all other central banks will lean even more into QE.
Could there by a trend shift in the USD?

Alright, enough macro larping….

The crypto markets are also hard hit by this environment. But technology is trying to solve big problems that will make life better in the future and hence is forward looking. Climate change, economic deglobalization and supply-chain fracture, economic productivity through robotics, human health through biotech, AI to enhance all fields, value + creation exchange through the internet and globalization of society (this is crypto) and sustainable food production. To name a few.

Usually these technology-sectors are noticing first when things are getting better, because they are so forward looking. And especially crypto is holding up remarkably well (even though still on depressed levels) and starting to look like we might be in a bottom formation.

DeFining Capital performance as of 01.11.22:

With DeFining Capital we used the depressed prices to rotate from low conviction positions to high conviction positions. Being fully invested and often further out the risk curve led to significant underperformance compared to the whole crypto-market. But we are confident that through diligent project picking and patience, we will achieve superior outperformance when the market returns.

DeFining Capital II performance as of 01.11.22:

In DeFining Capital II we reduced cash reserves to take advantage of cheap prices in high quality projects. Approx. 60% of initial capital is now invested.

Overall we expanded our markets exposure with focus on projects that are continuing to develop their product and execute on their vision, despite market conditions. These will be the big winners of the next cycle.
Furthermore we are highly focusing on new projects in the gaming, open world and eSport sector as we anticipate high traction in these fields when crypto mechanics are elegantly implemented. A general trend towards synthetic realities and immersive worlds will support this development.

Markets are still under pressure. But with conviction in a well thougth out thesis about the future, joy in participating in the craziness of a evolving crypto sector, patience and a bit of courage, we keep marching towards a successful future.