This report outlines the performance of All Coins Yield Capital’s treasury throughout March of 2022, where we saw significant gains despite inconsistent markets. Our treasury employs multiple investment strategies across several avenues of WEB 3 and Crypto to remain profitable in all market conditions.
Overall Fund Performance:
ACYC’s investment performance throughout March has allowed for an increase in our treasury funds by approximately 17% in a single month. Through a combination of investments across NFTs and crypto, the portfolio balance has grown from $2,875,338 to $3,368,580–with the largest percentage gains being from our Atlas NFT SOL fund.
Our investment philosophy for March remained reserved like the month prior, as our assessment of the state of the market is that it is inconsistent for significant allocations–especially in NFTs.
That being said, the investments we have made throughout the month were very lucrative and we were able to realize massive gains, especially from our largest NFT sales. We remain reserved in our perspectives of the market, but are allocating accordingly to remain profitable across all market conditions.
Increases in the price of $ETH also added to the growth of our treasury balance, allowing us to realize significant gains. We expect ETH to remain relatively stable in this time, informing our current treasury investment thesis.
Dione–Crypto Investment Fund:
Our cryptocurrency investment division named Dione saw its balance grow from $81,561 to $120,750–an increase of 48% total. The largest gains came from trading $APE token for a gain of over $120,000, and a single trade of $CULT that netted $58,900 profits in less than 24 hours.
The growth of our Dione fund and trades in $APE and $CULT displays once again how our treasury manager Nate Rivers is able to effectively execute trades on large amounts of capital for significant gains in little time. This ability to actively invest and realize gains over such a short period highlights our ability to remain resilient and yielding even in relatively stable market conditions.
In accordance with our estimations of the standing of the market, we have shifted much of the profits that we realized from these trades into stable-coins to be reinvested as we see fit in the coming month. The profits from investments such as these are also leveraged further in future Dione allocations, as well as NFT and Titan farming positions.
Atlas NFT Fund — ETH:
Our Atlas NFT fund for ETH realized a gain of $240,000 on a single trade of Bored Ape Yacht Club #3771 with the Diamond Grill trait. We remained conservative in our NFT investments throughout March, but still managed to net significant profit on the month from this flip. The sale of this ape to ETH and our subsequent allocation of those funds to stable coins has made the actively invested NFT balance decrease from the month prior, but only as the value has moved from NFTs to tokens with that sale.
Our ability to execute effective trades like this for significant gains is unmatched in the space. This type of investing allows our treasury to grow significantly and quickly with little active management next to the execution of the trades.
We have also taken some of the profits from this NFT trading and allocated a significant bulk of capital to the CyberKongz ecosystem–as we are shifting our focuses to include more Play-to-Earn and gaming based investments. These types of allocations will see realized profits over a longer time frame than our traditional flipping strategies.
In March, the total value of our cumulative farming funds increased 29%, from $1,498,506 to $1,935,450. Our Master Farmer Uncle Pennybags shifted significant allocations out of Ethereum and into stable coins periodically. We executed on several short and long calls of ETH that were very profitable, and also redistributed the profits from those investments into other areas of the treasury to hedge those gains.
The allocation of funds to stable coins has both protected us from the potential downside of Ethereum in this market, as well as limited the upside of this branch of our fund. Our investment philosophy with Titan is to remain conservative and stable, hedging ourselves from downside at the sacrifice of some upside, as Titan is meant to be our least volatile investment allocation.
We realized over 60% gains on $SGT in Titan, and have since moved funds to farms on the Arbitrum network that are yielding ~45% APR. We are still maintaining positions as well in $YFI, and $MAGIC, and will be looking to farm with $YFI rather than sell–depending on how the development of that ecosystem plays out.
Atlas NFT Fund–SOL
The Atlas NFT fund for the Solana network managed by Arnold Poernomo realized massive gains in this investment period. In USD terms, the fund has increased by $26,538 as it moved from $49,500 to $76,038–this amounts to a percentage gain of 53% on this month alone.
Our portfolio evaluation has grown 196 $SOL in this short period of time, and the value of that $SOL has also increased significantly, allowing us to see massive gains in very little time. Regardless of the market conditions, we are able to seize opportunities across different avenues to grow our treasury effectively.
Pan–Early Entry Token Trading Protocol:
Pan, our protocol for investing in the ground level of token launches, is removed from this month’s treasury performance report as our estimates of the market informed our decision to not consistently employ the protocol throughout the month. We are also adjusting Pan to be more effective in choppy markets, as the margins for profits depend significantly on the frequency of successful token launches at the time.
Pan will continue to be operated in this fashion, being used when we feel the market will allow for profitable employment of the protocol.
In accordance with our estimations of the state of the NFT market, we did not employ our Mimas minting protocol in any significant measure through this period. We did remain invested in $ETH in this protocol, allowing us to see a 37% gain in USD terms from this part of our fund. Understanding the climate of the market allows us to execute, or remain reserved, in our investments–sometimes the best trade is to just wait for the perfect opportunity.
March Trading Strategies:
Our trading strategies for March were relatively conservative, but also allowed us to recognize massive profit across several avenues. The cumulative effect of these strategies has allowed the total balance of our treasury to increase 17% on the month. We remain guarded in our investments during this climate of the market, moving our Ethereum allocations into stable coins periodically across almost all of our funds. This hedging allows us to be ready to deploy stable funds in an effective manner while protecting us from the downside of choppy markets.
In our view, the NFT and Crypto market is still inconsistent. We are seeing volume in NFTs across some major collections like Bored Ape Yacht Club, Clone X, and others, but are not seeing consistent action elsewhere to inspire confidence to allocate significantly in this period. As $ETH has increased in value, we have taken the opportunity to shift funds into stable coins and prepare for the next down trend to invest.
Where we have found appropriate allocations for our funds is in some smaller positions and quick flips, as well as our longer term allocation to the CyberKongz ecosystem. Recognizing the value in this ecosystem and the opportunity presented by the current price action allowed us to open a very significant position, bringing our total assets to 13 CyberKongz babies and 30+ VX CyberKongz–a total of roughly $300,000 invested into the ecosystem.
We have been hesitant in this period to open other large long term positions, as we feel there will be better opportunities in the coming months to allocate funds at more optimal entry points. This hasn’t stopped us from capitalizing on the current volume in Crypto and NFTs, flipping several tokens and assets for massive profit.
With this performance report we once again illustrate our abilities to navigate and recognize opportunity in the market, remaining conservative but profitable across our treasury in all markets. ACYC’s investment funds are versatile and allow us to capitalize on all crypto-adjacent markets without being limited to any single avenue.