The WAGMI Fund Quarter 2 Letter

July 6th, 2022

Global markets continue to sell-off. The crypto marketplace is no exception. Since our last update on May 23rd, ETH (Ethereum) has continued to decline from $2,100 to $1,100, which is now approaching an 80% selloff from its November high of $4,868. To add some perspective, the price of ETH is 21% lower today than during its bull run in 2017 ($1,396). 

Fortunately, The WAGMI Fund’s discipline enabled us to stay cash-heavy throughout this downturn. Our strategy has significantly reduced losses to less than 10% from inception, which far exceeds performance in this sector. The WAGMI Fund currently has approximately 80% of its assets in cash/cash equivalents. We have allocated $354,000 in a high yield stablecoin ($GUSD) earning 6.9% APY, and an additional $70,000 in cash.

We strongly believe the current perception of the crypto market does not reflect the long-term viability of the technology, and is, in fact, an overreaction. Some indicators which support the adoption of crypto since 2017/18 are as follows: 

· The number of active crypto wallets has increased by 4.5x (from 18 million to 82 million). 

· Since July 2020, the value of locked up money in decentralized finance (DeFi) has risen nearly 9x from $9 billion to $80 billion. 

· NFT purchasing volume hit $7 billion in January 2022 alone ($35 million in 2018 in whole).

Based on the above factors, as well as our charting indicators, we feel it is reasonable to determine that the crypto space has been extremely oversold due to fear sparked by global economic conditions. With high inflation and a struggling economy, investors typically look to sell their most volatile assets first (i.e., selling crypto before Apple). This fear-based sell-off creates a unique buying opportunity. Given the 2021 bull run being the most significant in terms of adoption and development in blockchain tech, we are confident a recovery will occur yet again once fears subside. 

While we closely monitor NFT and Metaverse opportunities, our emphasis will focus on purchasing Ethereum, the building block of crypto technology. 

We plan on raising additional capital in the coming months in an effort to capitalize on these bear market opportunities to optimize returns. Our goal is for the fund to reach $1 million in assets under management by Q4, which will allow us to comfortably accumulate upwards of 500-750ETH and increase our metaverse positions.

Those that make it to the other side of this market will reap the benefits of significant returns. The WAGMI Fund is positioned to successfully maneuver through these challenging times. Remember…We Are All Gonna Make It!

Kind regards,

The WAGMI Team