Doc's Daily Commentary

Mind Of Mav

The Rise Of The Solo Capitalist

For the rest of this week, I want to talk about a trend I think has major significance:

— the rise of the “Solo Capitalist”.

Now, it’s evident from increasingly volatile markets and vitriolic news events that the world is shifting. We are living through a time of great transition. These trends will lead to the creation of a new type of investor — the solo-capitalist. These trends include:

1- A transition away from institutions

2- Increased need for individual identity

3- Decreased friction for audience building

4- Greater focus on a decentralized investor base

5- Increasing desire for removal of communication middlemen

6- A rise in solo-capitalist tools & platforms

Simply, as the world becomes increasingly digital & decentralized, it is ushering us into a new era of solo-capitalists.

What does that mean?

In a sense, we are witnessing a rapid expansion of agency for the individual investor and trader. Day by day we see the arbitrary barriers that locked investors and funds away from realizing the potential of new and exciting advancements. As Central Banks race to the bottom, their monetary policy will push more yield-hungry behaviors, which inherently will increase an appetite for risk.

We’ve seen the complaints that Wall St., and especially technology stocks, are decoupled from reality — absurdly “overvalued” stocks like Tesla and Nikola make those who follow old conventions of valuation shake their heads. But, as I see it, they’re just some of the first to come.

Where I see this trend going is a continued expansion of interest in increasingly risky and speculative ventures. At the same time, the need for individuals to define their financial destiny will become more relevant by the day.

One such recent expansion that is catching fire is a “Rolling Fund”.

A Rolling Fund is a new type of investment vehicle that allows its managers to invest at their discretion in opportunities on behalf of investors (often referred to as “limited partners”).

Investors typically contribute to the fund on a quarterly subscription basis.

Rolling Funds are publicly marketable and remain continuously open to new investors. (Hence the term, “rolling.”)

AngelList’s introduction of a Rolling Funds product in February 2020 brought this concept to the Venture Investing mainstream.

The major caveat here is that, just like STOs, it is limited in who can invest — usually, only accredited investors. That does severely limit the potential of what Rolling Funds could be, but just as I’ve often talked about STOs, it’s important to see their limitations as finite and subject to subversion or outright removal in the near future.

ICOs, STOs, SPACs, and now Rolling Funds all represent the winds of change in this direction — they empower individuals to invest directly in a project, passion, or person without the unnecessary and bloated oversight of corporate middlemen.

After all, who has any right to tell you what you can and cannot do with your own money?

Now, Solo Capitalist was coined a month ago as a companion to that capital appreciation vehicle I just mentioned — the Rolling Fund. While I think it’s a bit myopic to tie a term as broad as “Solo Capitalist” to something as narrow as a single fund structure, the Rolling Fund, the emphasis of both is the ability to run a fund of one person.

In a sense, the future of individual investing agency is looking very bright.

Tomorrow, we’ll talk about this topic some more.

 

 
 

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)

 

Add your vote to the V4 Portfolio by clicking here.

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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