We are happy to announce that as of today, a new Crypto Strategy Risky Biscuits, has been made public on the ICONOMI Platform. We talked to its manager Troels, about the story behind the strategy, how he sees the development of the industry as a whole, and more.
Would you say that crypto is now at a turning point? Why?
There's still a lot of untapped potential for blockchain tech to be integrated in mainstream products like finance, entertainment, data security, etc. In that sense, I don't think we are at a turning point just yet, but we are definitely moving in the right direction.
We do seem to be at a turning point regarding how projects are valued. During the bull run in 2017 almost all coins saw their value increase manyfold. In comparison, more fundamentally sound, low market cap coins have been pulling ahead of the pack in these last 5-6 months.
That is mainly the reason my strategy has a performance of above 500% profits in 6 months, while bitcoin is almost exactly the same price it was half a year ago.
A few years ago we had many crypto meetups – what is the situation now in your local area? How is crypto perceived in Denmark?
There has never really been a lot of crypto meetups going on in Denmark. I think it's mostly due to Danes being fairly private about their financials and investments.
Among the general public, most people now know what bitcoin is, since the media covered the last bull run extensively, but only a small percentage has ever used crypto or invested in it. Since around two years ago, the media hasn't reported much on crypto at all.
When talking about crypto it's hard to say that there's a general perception in Denmark. I'd say there is a general ignorance regarding the subject. Other than bitcoin, people mostly have no clue what it is or how it can be utilized.
How would you describe an opportunity to a friend who has not yet dove into crypto?
I would obviously start out by mentioning that even if they don't know or don't have the time to keep up with what's happening in crypto, they can invest through a strategy on iconomi.com. Since they see the time and effort I put into researching crypto and monitoring the markets, many of my friends and family have invested in my strategy rather than investing in individual cryptocurrencies on their own.
If they are interested beyond that, I would most likely tell them about a project where it's easy to understand the use case(s) and see the potential for growth.
It could be something like a V-ID token, that makes use of the immutability of blockchains in a clever way. It is used to validate any digital file using blockchains. The files can at any point be checked after they're validated through their system to make sure they haven't been tampered with. I'm sure you can imagine plenty of use cases for this. University degrees, food standards reports, video evidence used in courtrooms, etc.
If I was talking to someone more technically inclined I'd probably tell them about Kava, since this is where I see the biggest upside in crypto at this point in time. Kava is the first cross-chain collateralised debt position system. Explaining and understanding how it works and the implications of such a system is beyond the scope of this interview, but I will say that I'm very excited about what Kava brings in the future, and I was thrilled when I first found out that it was available to strategy managers on ICONOMI.
Looking at your strategy – what would you outline?
My strategy is focused on fundamental analysis. I mostly look at the tokenomics of a coin and how use of that system correlates with the price of their coin. Compared to many of the other strategies that mostly focus on bigger coins, I will take larger positions in small market cap coins if their fundamentals are good. When my analysis tells me that a specific coin is far more undervalued than the rest, I'm willing to allocate 80-90% in that one coin. This sometimes means that when the general crypto market is moving upwards in price, I lag a little behind most other strategies. When looking at the results though, it seems that over a time period of months, this investment strategy works.
I'd like to point out that even though my strategy has outperformed most, if not all public strategies on Iconomi in the last six months, my fees of 2% following and 0% performance are among the lowest of all strategies. I do not intend to change this fee structure.
Risky Biscuits is for people who want to invest in predominantly smaller coins with great fundamentals and potential for growth. This comes with greater short term volatility and some would say greater risks, but also the potential for much bigger returns.
Many people don't have enough patience when investing in crypto. Risky Biscuits will not take profits on specific coins if the fundamental analysis shows that coin is still among the most undervalued, even after a large increase in price.
The fee structure of this strategy will remain at a 2% following fee and a 0% performance fee.
Troels has been following crypto and blockchain development closely since 2016. His work is not related to blockchain technology, but he enjoys spending his free time learning and understanding how different projects function and what they can offer.
Since his blockchain journey began, he has been researching as many blockchain projects as he can, trying to gain knowledge of the hidden gems while they are still small cap coins.
Allocating a large percentage of the strategy into small undervalued projects is his main investment strategy.
You can see and follow the strategy here: https://my.iconomi.com/asset/RISKYBISCUITS