Greetings from sunny Palolem Beach in Goa, India! This week marks the 71st update for the TerraM Crypto Hedge Fund, a journey that started in August 2023. Although the fund faced a 5% decline in value, dropping to $5,671, the fundamentals remain intact, and we are committed to our long-term investment strategies. Let’s dive into the highlights of the week.
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This week’s fund value dropped by $327.33, a notable dip due to broader market corrections following a significant crypto rally throughout November and early December. Such fluctuations are expected and viewed as part of a healthy market cycle.
Despite this, our diversified portfolio remains robust, including holdings in Bitcoin (BTC), Ethereum (ETH), Jupiter (JUP), Pax Gold (PAXG), Stellar Lumens (XLM), and more. Additionally, our staking activities continue with tokens like Radium (RAY), Solana (SOL), and Jupiter (JUP), ensuring steady yields.
Investment Strategies
Our focus remains on disciplined trading and risk management:
- Options Trading: We primarily trade short-term put options and covered calls on assets like Bitcoin and Ethereum.
- Dollar-Cost Averaging (DCA): We consistently reinvest premium earnings into crypto, irrespective of market prices. This week’s allocation included $10 to BTC, $2.50 to JUP, and $2.50 to PAXG.
- Risk Management: By utilizing hedging strategies such as rolling options and futures contracts, we mitigate losses and maintain portfolio stability.
The Pengu Airdrop
A surprise airdrop of 1,837 Pengu tokens landed in our Phantom wallet this week. While Pengu is new to us, we are exploring its utility, including potential collateralization for options trades. However, liquidity issues on some platforms have presented challenges. We’re optimistic about integrating Pengu into our trading strategies soon.
Market Trends and Insights
The recent correction in Ethereum’s price is a focal point. Trading at $3,400 as of December 26, it’s currently hovering between its 50- and 200-day moving averages. While further pullbacks to $3,000 are possible, we remain bullish on a rebound to $3,800 or higher in the coming weeks.
Our Native TerraM Token
The TerraM token, representing ownership in the fund, is available on decentralized platforms like Radium. With only 10,000 tokens issued, its current price is $2.14, and we’re committed to supporting liquidity through a structured buyback program. Interested investors can also purchase tokens OTC at a fixed rate.
Swap on Raydium, ByBit or OKX.com (Solana supported wallet required)
Looking Ahead
Despite a challenging week, we remain steadfast in our goals. Our strategy of daily investments ensures consistent growth, while market corrections offer opportunities to acquire quality assets at lower prices.
Thank you for following our journey! If you have questions or wish to learn more about TerraM, don’t hesitate to reach out. Stay tuned for next week’s update, where we’ll share more insights and strategies.
Merry Christmas and Happy New Year! 🎄✨