🚂 All aboard.
Welcome to this week’s Hype Train, your number one source of alternative finance news.
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💰 HYPE STOCK NEWS
🇦🇺Domestic:
⌚CardieX (CDX) confirms partnership to develop heart-monitoring smartwatch with Mobvoi. Despite this, the stock still ended the week in the red. Looks like some big old investors have been liquidating their shares…
💡A big dog ex-Tesla director has joined Vulcan Energy (VUL) to help form strategic partnerships in the electric vehicle and battery sector in Europe. This company is aiming to be the first producer of lithium with a zero-carbon footprint.
🚨Scout Security’s (SCT) intruder alert technology is to be integrated into Amazon’s Alexa Guard Plus (a smart home security device) under a revenue-sharing agreement.
🌏International:
🛸Ring (owned by Amazon) launched the ‘Always Home Cam’ - an autonomous flying security camera drone for your home and it’s pretty fucking cool…
🥊There’s an ongoing fight between Apple and Fortnite’s creator Epic Games that could have a material impact on how app stores make money from developers.
🚗A tiny $5000 electric car has been a hit in China, outselling Tesla in August.
🎥HOW TO MAKE MONEY ON STOCKS
Jack’s latest youtube video looks at the absolute easiest way to make mad gains from stocks in 2020 (unless…) Suss it here:
📈MARKET SIGNAL:
“Every time history repeats itself, the price goes up”
Market Signal: Cryptocurrency is back with “defi” applications completely taking off.
The Opportunity: DeFi stands for ‘Decentralised Finance’, and it has been taking off this year, as the latest cryptocurrency trend. While we don’t really understand this hype, the overall atmosphere surrounding crypto at the moment reminds us of the rise of shit coins during the ICO craze in 2017 that culminated in Bitcoin reaching a price of >$20k. This particular trend surrounds crypto projects that attempt to recreate the traditional financial system with fewer middlemen (i.e. connect borrowers and lenders, or buyers and sellers without the need for a bank). One of the most hype DeFi tokens is UniSwap - a decentralized crypto exchange / coinbase alternative.
The Tickers: Be very careful in this space. It’s more than likely that most DeFi projects are actually trash and will decline heavily (as we experienced first-hand back in 2017-18 crypto boom). However, if you’re bold you can buy into most DeFi projects using UniSwap and Coinbase. Closer to home, there are a few ASX companies dabbling in crypto that could benefit from this DeFi wave. These are Security Matters (SMX), Identitii (ID8), Kyckr (KYK), DigitalX (DCC), Fatfish Blockchain (FFG), Crowd Mobile (CM8), and Yojee (YOJ). Even the ASX (ASX:ASX!) is set to launch a blockchain replacement for its decades-old settlement and clearing system in the next couple of years.
The bottom line: I just like Bitcoin. Why? Because of reports like this and this.
💰FINDING THE NEXT MULTIBAGGER: CRYPTO ART
Today in our hunt for the next big multibagger we’re looking at a pretty wtf alternative asset that is pretty far away from our ASX homeland.
🎨CryptoArt.
What is crypto art?
Digital art (i.e. gifs, memes, images, videos, 3d assets) that have ownership backed by a unique crypto token
Early examples include CryptoKitties, CryptoPunks, Rare Pepe, CurioCards, and Dada.nyc
What problem does it solve?
The problem with digital art is you can’t verify ownership over the original copy. For example, if you create a meme, someone can just screenshot it and claim they have the original copy.
CryptoArt solves this. You can mint a unique crypto token that is tied to your meme.
Now, someone can’t just screenshot the meme and claim ownership of the original, because they need the specific, unique crypto token that you have.
What is the investment thesis?
Traditional artwork is pretty successful.. >$65b market cap, outperformed US stocks over the last 20y
The digital art market cap is <$10m in comparison… so there’s plenty of room for growth. Especially considering digital art can sometimes actually be better than normal art (i.e. dynamic, easily transferrable, etc)
Digital art is one of cryptos proven use cases and despite this, these tokens only make up a tiny fraction of the total crypto market cap (amount of money in crypto)
VR, AR etc. growing extremely rapidly so there could be an increased need to verify the authenticity of digital assets (i.e. owning rare art, houses, etc in VR/AR)
Buying some digital art today could literally be like buying the first traditional artwork ever produced.
Risks
Same risks as investing in normal artwork - what makes it so special?
Liquidity: it could be difficult to sell digital art
Saturation: anyone can make a digital art piece
All the issues with the crypto market in general, hard to tell if it’s a scam or not
Marketplaces to buy and sell CryptoArt
Bottom line:
Wouldn’t it be cool to own a popular meme? Like literally own it? Well now you can. In fact, in 2018 a CryptoArt Homer Pepe sold for $39k…
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Thank you and have a great week.
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