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JUL 20, 2023

Are there Blue Chips in Web3?

by Meta Investor

How to spot them and start investing.
GM Investors!
Last week we reduced the complexity of Web3 into 4 core areas.
This week, we cover:
Highlights —> What’s moving the market?
Investment Strategy —> Blue Chips Investing in Web3
       With a list of 30 Blue Chip tokens
Deep dive —> Seedify
Let’s jump in
Ripple and Solana exploded (article)
  • Remember the SEC case filled in 2020 against Ripple? And the wild ride of new regulations and lawsuits in the last months?
  • Well, Ripple had a partial victory last week, acknowledging XRP is not a security in regard to programmatic sales on digital asset exchanges.
  • This news sent XRP +54% and SOL +35% in a single day to 2023 ATHs.
  • Still, SOL users are slowly decreasing, currently at 250k Unique daily active wallets. Ethereum has 440k, Polygon 1.2m, and BSC 4.3m according to DappRadar.
  • My action: I’ve been buying SOL since October last year, and I’m closing my position. I will continue buying a small amount of SOL weekly in case their mobile exposure sparks a new interest in SOL.
Despite the general restrictions, Beijing plans to train 10,000 engineers each year in Blockchain, AI, and Big Data. and started creating Beijing Metaverse Innovation Center (article, gov source).
  • Additionally, on Wednesday 12th of July, China’s state planner praised Tencent and Alibaba, companies that were under heavy regulatory fire since 2020 suggesting recent fines can put an end to it.
  • On a similar note, China become one of the first countries to regulate generative AI (ChatGPT and similar), which is less strict than originally proposed, but still, all providers/creators must register their algorithms with the Chinese government.
  • My action: I will monitor the rise of Chinese blockchains —> Tencent is already in (article) Alibaba as well (article). It can result in a big swing in user migration between major chains. Also, I’m adjusting my monthly DCA stocks portfolio, reducing US equities from 40% to 27% and adding EMs from 0% to 13% since the US keeps regulating while EMs supporting Web3.
The Flash as a Web3 dynamic movie experience (article)
  • This time as living movie experience with AR and dynamic menu options. Plus NFTs.
  • As you watch the movie at home in 4k UHD, you can collect key art (NFTs), discover hidden easter eggs, or various AR collectibles.
  • Two editions are available: Mystery ($35) and Premium ($100), with different rewards and combinations.
EthCC: Uniswap is launching a new trading protocol - UniswapX (whitepaper)
  • The biggest change - it lets users and 3rd party tools facilitate trades, bringing extra liquidity and no slippage.
  • And you can swap without paying gas fees in the network’s native token. Gas fees are instead built into each transaction.
EthCC: Chainlink launches Cross-Chain Interoperability Protocol (CCIP) on Avalanche, Ethereum, Optimism, and Polygon (early access)
  • CCIP should be the TCP/IP protocol of Web3, helping connect “islands of blockchain networks”.
  • There is already one solution used by Cosmos - Inter-Blockchain Communication (IBC) protocol.
EthCC: Lens introducing V2 (post)
  • Bringing on-chain actions to Lens —> Are you minting on OpenSea? You can now link it to your Lens post and let people mint your NFTs directly from Lens.
  • The same applies to other Web3 actions, like staking, voting, lending, borrowing, …
  • There’s much more to it, explore all the changes here.
More use cases for Metaverse?
Governments are exploring options to leverage Metaverse. Anything from getting your Driver’s license renewed to simulating city planning (article).
Bank of America is using Metaverse and AI to train their employees. From customer service excellence (telling a virtual customer 100th time how to unlock his card) to simulating bank robberies (article).
Ready for Metaverse shopping? Australia is (article).
Token unlocks (tool)
In the next 7 days, there is one significant token unlock: AXS.
Source: https://token.unlocks.app/
Source: https://token.unlocks.app/

Reading for the weekend

“Blue Chips” Investing in Web3

Blue chips in the world of Web3 are the tokens of projects with solid fundamentals, liquidity, and popularity. Often the market leaders in a specific area.
We don't know when the next bull run will happen.
But when it does, both BTC and ETH will hit new ATH.
If that happens in 4 years, that's still 65% p.a. on ETH.
This strategy is ideal for long-term investments and dollar cost averaging.
Source: https://coinmarketcap.com/
Source: https://coinmarketcap.com/
It is not only the market capitalization of the token that matters. If we open ranking on https://coinmarketcap.com/ today, we can see that Dogecoin (DOGE) is actually the 8th biggest token.
But this token has no real utility, it is a speculative asset mainly for traders, and shouldn’t be considered a blue chip token for this strategy.
Among the big caps, it’s enough to answer just a few questions, like:
  1. Is the project mature enough? Usually, this means it survived a crypto winter (bear market) and still manage to build and keep regular updates.
  2. Do I believe the project is solving a real problem? Problem big enough to be here in the next few years?
  3. Is it a valid use of Web3?
If you have trouble finding these tokens, I’ve created a list of 30 Blue Chips to start with. I will expand the list in the next weeks.
Source: https://coinmarketcap.com/watchlist/64a66c39e8548e6716420c10
Source: https://coinmarketcap.com/watchlist/64a66c39e8548e6716420c10

How to start?

If you want to just start exploring, open an account on any of the centralized exchanges supported in your country (Binance, Kraken, Coinbase), and follow their guides.
You will need to pass the KYC (Know Your Customer), but the process is simple and there is a customer service to guide you.
Once you have the account, you can buy the biggest L1 and L2 tokens right away, plus you can also stake it right on the exchange to start earning yield on the tokens.
Tip to explore: You can also set up a DCA strategy to automatically invests on a daily/weekly/monthly basis into different Blue Chips.
Next week we’ll explore “Mid Cap” Investing and how I research these tokens.
Also, I’m working on a big overview of Launchpads (we already had an intro: Launchpads).
A taste of what’s coming: Seedify analysis.
Let me know what you think of it, you can ping me on Twitter, or send me an email: matt@metainvestor.gg
Until next time,
Matt.
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