Is the Outflow Tsunami Over?

You can view investor behavior on the CryptoQuant site, which tracks on-chain analytics…one of which is Netflows. Are coins moving ON to centralized exchanges, or are they moving OFF of centralized exchanges? Ironically, coins moving ON to exchanges is a bearish signal, because investors are usually doing so to sell them. Conversely, coins moving OFF exchanges can be viewed as somewhat bullish as this traditionally has meant that the coin is headed for self-custody.

Check out the recent Netflow graph:

Netflows showing extreme distribution started on 7NOV and peaked on 10NOV, precisely when CZ backed away from the FTX deal. The last value was only -10.6k, so the outflows have decreased to the point where they are about the standard.

If investors are executing self-custody, they are storing their keys on private wallets such as Hardware wallets (ledger/trezor/etc) or software wallets. One potential software wallet has been shilled by CZ, since it’s his.

TrustWallet Goes Skyward

CZ has made a recent push for self-custody, pushing his TrustWallet platform which he acquired in 2018.. TrustWallet is a software wallet which can be installed as an app on your mobile device. The wallet was originally designed to hold the ERC20 and ERC223 tokens only but has now been developed to hold other leading cryptocurrencies like Bitcoin.

Naturally the TWT token has gone skyward:

Software wallets somewhat cure this problem of untrustworthy exchanges since none of your crypto keys live on a server; because of this, there is no reason to use KYC and it can be used by pretty much any country. While not as secure as a hardware wallet, it’s a big step beyond the liability of a centralized exchange.

It might take years for centralized exchanges to recover from the FTX debacle.

The ReadySetCrypto "Three Token Pillars" Community Portfolio (V3)

Add your vote to the V3 Portfolio (Phase 3) by clicking here.

View V3 Portfolio (Phase 2) by clicking here.

View V3 Portfolio (Phase 1) by clicking here.

Read the V3 Portfolio guide by clicking here.

What is the goal of this portfolio?

The “Three Token Pillars” portfolio is democratically proportioned between the Three Pillars of the Token Economy & Interchain:

CryptoCurreny – Security Tokens (STO) – Decentralized Finance (DeFi)

With this portfolio, we will identify and take advantage of the opportunities within the Three
Pillars of ReadySetCrypto. We aim to Capitalise on the collective knowledge and experience of the RSC
community & build model portfolios containing the premier companies and projects
in the industry and manage risk allocation suitable for as many people as
possible.

The Second Phase of the RSC Community Portfolio V3 was to give us a general idea of the weightings people desire in each of the three pillars and also member’s risk tolerance. The Third Phase of the RSC Community Portfolio V3 has us closing in on a finalized portfolio allocation before we consolidated onto the highest quality projects.

Our Current Allocation As Of Phase Three:

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The ReadySetCrypto "Top Ten Crypto" Community Portfolio (V4)

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Read about building Crypto Portfolio Diversity by clicking here.

What is the goal of this portfolio?

The “Top Ten Crypto” portfolio is a democratically proportioned portfolio balanced based on votes from members of the RSC community as to what they believe are the top 10 projects by potential.

This portfolio should be much more useful given the ever-changing market dynamics. In short, you rank the projects you believe deserve a spot in the top 10. It should represent a portfolio and rank that you believe will stand the test of time. Once we have a good cross-section, we can study and make an assessment as to where we see value and perhaps where some diamonds in the rough opportunities exist. In a perfect world, we will end up with a Pareto-style distribution that describes the largest value capture in the market.

To give an update on the position, each one listed in low to high relative risk:

SoV/money == BTC, DCR

Platforms == ETH, XTZ

Private Money == XMR / ZEC / ZEN

DeFi == MKR / SNX and stablecoins

It is the most realistic way for us to distill the entirety of what we have learned (and that includes the RSC community opinion). We have an array of articles that have gradually picked off one by one different projects, some of which end up being many thousands of words to come to this conclusion. It is not capitulation because we all remain in the market. It is simply a consolidation of quality. We seek the cream of the crop as the milk turns sour on aggregate.

Current Top 10 Rankings:

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