Cenacle Capital Management

02/21/2023

My morning routine has stepped up a few notches. I'm recommitting to prayer, updating my new vision board, 30-45 minutes of an audiobook. Review stock market ratios and asset class relationships.

What changes are you making in 2023?

10/25/2021

This has been a crazy month for Bitcoin and cryptocurrencies!

We've seen a great rally taking Bitcoin over $66,000 per token! CryptoTwitter is lit, reminding speculators that a $1,000 purchase of Shiba Inu (symbol: $SHIB) on January 1st, 2021, would now be worth a whopping $480 million!

As a registered investment advisor I've always discouraged buying lottery tickets and describe them as a tax on the poor. But I admit to have purchased my fair share of losing tickets which I subsequently tore in half and threw away.

Today, if I'm going to take a bet on a long shot, the question I ask myself is, ”Am I’m better off purchasing a lottery ticket with 1 in 190 million chance of winning a single draw; or should I buy the same dollar amount of 'meme' tokens with a 1 in 6,000 chance of winning over a lifetime?”

Blockchain tokens can go to zero and never trade again, but technically they don't disappear or expire.

If your investment advisor doesn’t discuss digital assets; it may be time to switch advisors. www.cenaclecapital.com

Text BLOCKCHAIN to 22828 to receive our The Blockchain Advisor™ newsletter.

Spotify
https://open.spotify.com/show/6pi692NWtRl6GA36I6Jqmv
YouTube
https://www.youtube.com/channel/UC0sIs81kQg7aazvRwJOJbvg

Bridging the Gap Between Traditional Investing and Digital Assets

07/28/2021

Having been in “centralized” financial services for 40 years, I can’t describe with 100% accuracy all the moving parts of how back-office operations worked.

30+ years at Cboe Global Markets as a Lead Market Maker, Book Clerk, index & equity pit trader, off-floor market maker & risk manager; we “trusted” how trade, clearing, settlement, stock loan, margin, exercise & assignments all worked. And it worked very well!

Many of the losses caused by technology were from algorithmic trading engines never anticipating a new data character in the string our price feed.

One unexpected period, Shift or in the price feed and the trading engines went haywire. ( Hey, quote $1.00 bid @ $100 until we figure this out!!!!)

However, the future of Decentralized Finance (DeFi) is here; and it’s here to stay. You cannot put the genie back into the bottle.

UMA ( Universal Market Access) offers “priceless” financial contracts. Priceless financial contracts are smart contracts that only require an on-chain price feed in the event of a dispute.

Decentralized oracle (trusted price feeds or other sources of truth) solutions today consist of API's that repeatedly submit price data on-chain to manage DeFi contracts. These solutions also have no way to dispute an incorrect price reported from an API. This makes contracts vulnerable to corruption, manipulation, flash loan attacks and ad-hoc market events.

Priceless financial contracts are contracts that only require writing a price on-chain in the event of a dispute (which is designed to be rare). Priceless contracts minimize reliance on oracles, making contracts on UMA less vulnerable to attacks.

UMA was founded in 2018 by Allison Lu and Hart Lambur, two ex Goldman Sachs traders, with the goal to enable users to transfer risk across the internet without the need of central authorities. The team drew inspiration from traditional finance derivatives to define an open-source protocol to allow anyone, anywhere, to design and build trustless financial contracts.

Trading at $8.34, UMA is -79% from its February (FOMO) 2021 high of $40.77, but +8.75% YTD. Available for trading on Coinbase

Website: https://umaproject.org/
Twitter: https://lnkd.in/gmGdaXU

If your investment advisor doesn’t discuss digital assets; it may be time to switch advisors. www.cenaclecapital.com

Text BLOCKCHAIN to 22828 to receive The Blockchain Advisor newsletter

07/12/2021

SushiSwap is a decentralized exchange built on Ethereum that utilizes an automated market making system rather than a traditional order-book. Instead of matching individual buy and sell orders, users can pool together two assets that are then traded against, with the price determined based on the ratio between the two.

SushiSwap offers lending and leverage too. They’ve partnered with Yearn Finance, Aave and others.

The community is building a comprehensive, decentralized trading platform for the future of finance. Personally it is unnerving reviewing company developer bios presented in the form of anime avatars; but Sushi does have credibility among those in the digital asset space.

Trading at $8.20, SushiSwap (crypto symbol: SUSHI) is + 191% YTD; but -63% from its 2021 high of $22.07. It’s bullish trend line provides some technical support at $6.70.

If your investment advisor doesn’t discuss digital assets; it may be time to switch advisors. www.cenaclecapital.com

07/08/2021

SKALE Network is an open source Web3 platform intended to bring speed and configurability to blockchain.

Developers can “rent” SKALE chains that each act as a private Ethereum-compatible smart contract platform with faster block times and the ability to process more transactions per second.

KALE chains are configurable, application-specific blockchains (often called "dynamic shards") that exist one layer above the Ethereum blockchain.

"Sharding" is the process of splitting a database horizontally to spread the load. This should reduce the gas fees or cost associated with submitting work to the Ethereum blockchain. SKALE was founded in 2017 and raised $17.1 million of capital in 2019.

Trading at $0.23, SKALE NETWORKS (crypto symbol: SKL) is -64% YTD; and -70% from its 2021 high of $0.7762. The 2021 high/low range is $0.7762 / $0.2019.

Available for trade at www.coinbase.com

07/07/2021

"The Grayscale Digital Large Cap Fund is an investment vehicle that enables investors to gain access and exposure to the upper 70% of the digital currency market in the form of a security without the challenges of buying, storing, and safekeeping digital currencies directly.

The Fund’s shares are among the first securities solely invested in, and deriving value from, a basket of digital currencies.”

Shares are quoted on OTCQX under the symbol: GDLC making it possible to buy or sell shares continuously through the trading day at prices established by the market.

According to Grayscale.com, the fund composition is; Bitcoin-BTC 67.3%; Ethereum- ETH 29.1%; Bitcoin Cash-BCH 1.3%; Litecoin-LTC 1.2%; Chainlink-LINK 1.1%

Trading at $22.15, the Grayscale Digital Large Cap Fund (symbol: GDLC) is +18.23% YTD; and -59% from its 2021 high of $54.00. The 2021 high/low range is $53.00 / $18.00.

The GDLC trust holds ~ $400 million of digital assets.

If your investment advisor doesn’t discuss digital assets; it may be time to switch to www.cenaclecapital.com

07/05/2021

If your investment advisor doesn’t discuss digital assets; it may be time to switch to www.cenaclecapital.com

Text 'BLOCKCHAIN' to 22828 to learn more about digital assets and how our firm can help you make more intelligent and elegant decisions in digital asset investing.

07/01/2021

Filecoin is looking to provide an alternative to traditional online storage providers. Its technology acts as an incentive layer for the peer-to-peer
(person-to-person) file transfer system IPFS (InterPlanetary File System), which stores data person-to-person instead of centralized [ex: Amazon] servers. This is intended to reduce redundancy, increase permanence, and improve efficiency.

Their website states; “We are a fully distributed company. Our team of more than 100 members works remotely and in the open to improve the internet — humanity’s most important technology”.

And again; “Data is the new oil. Data silos and monopolies hold our data hostage. Content addressing is a way to break the hyper-centralization of the web, to set our data free and make the internet and its apps much more resilient.”

Website: https://protocol.ai/
Twitter: https://twitter.com/protocollabs

Trading at $57.14 Filecoin Protocol Labs (symbol: FIL) is +145% YTD; and -74% from its 2021 high of $224.91.

Filecoin’s market capitalization $4.85 billion.

06/28/2021

Chainlink (symbol: LINK) greatly expands the capabilities of smart contracts by enabling access to real-world data and off-chain computation while maintaining the security and reliability guarantees inherent to blockchain technology.

In other words, smart contracts need reliable data “truth” to execute the code with the contract. Smart contracts need data to execute but need to look outside its own blockchain to find it. Smart contracts look to “oracles” that bridge the gap between real-world events and the instructions (if-then) executed within the chain. The data must be accurate and resistant to manipulation.

For example, “Data provider Chainlink will provide decentralized weather data for insurance startup Arbol, according to a blog shared with CoinDesk. Arbol provides crop insurance for small to medium-sized farmers or enterprises. Smart contracts pay claims to subscribers when a preset value – such as the average monthly temperature or rainfall – turns out different than the contract specifies, the firm said.

Called parametric insurance, the financial derivative is often used in agriculture to hedge against future events, such as a bad harvest. Other firms, notably CME Group, also offer weather derivatives that require middlemen. Arbol insurance, on the other hand, self-executes using a mix of smart contracts and Chainlink data – no holdups on payments.”
(https://www.coindesk.com/chainlink-to-provide-data-for-farming-insurance-startup-arbol)
Trading at $16.88, Chainlink (symbol: LINK) is +46.95% YTD; and -67% from its 2021 high of $$51.55. Chainlink market capitalization is $16.8 billion, slightly higher than Cardinal Health (CAH: $16.2 billion) and a little less than Raymond James Financial (RJF: $17.05 billion).
Website: https://chain.link/
Twitter: https://twitter.com/chainlink

If your investment advisor doesn’t discuss digital assets with you; it may be time to switch advisors. www.cenaclecapital.com

05/21/2021

Several of our clients have asked us to publish a newsletter to help them navigate the cryptocurrency space, especially their Coinbase holdings. Optimal areas to buy and sell, etc.

Your thoughts?

04/05/2021

Our latest video as we enter the historically "top" part of the year.
Please don't hesitate to contact us if you have any questions or would like your account professionally managed!
https://youtu.be/1KiqKKS7Sio

11/24/2020

https://conta.cc/39dkr7J