Ming Zhuang Huidu Investment in the currency circle shows its cards, adding "currency" value analysis

Yesterday, a piece of news about Grayscale quickly spread in the circle:

Some media said that Grayscale will soon launch new trust products including six digital currencies including BAT, LINK, MANA, FIL, LPT and XTZ.

Both inside and outside the circle now basically agree that the current round of Bitcoin bull market was triggered by institutional investors, and Grayscale is a fighter among institutional investors, bearing the brunt of its influence. Therefore, every word and deed of Grayscale has received high attention.

If this news is true, it will undoubtedly set off a climax in other currencies besides mainstream currencies. In this regard, the well-known media "Block Rhythm" also specially checked and verified the authenticity of this information, and wrote a long article listing a series of evidence, and concluded that the new trust of these 6 currencies is indeed Grayscale added.

So what effect will Grayscale's move have on the entire circle and the development of this round of bull market?

1. What is the direct income of the six currencies?

These six currencies will directly benefit, and prices are likely to continue to rise in the future. But what we should pay attention to is that how much room for growth depends on Grayscale’s promotion and publicity of these 6 currencies. The currency with strong publicity and good promotion effect will get more attention and attract more investors, and the increase will naturally be high, otherwise it may be mediocre.

We can see this from the performance of Grayscale’s existing trust funds.

Grayscale’s existing trust funds include not only Bitcoin and Ethereum, but also Litecoin, ETC, etc., and Ripple earlier. However, not all of these coins are so amazing. Among them, Bitcoin is the most shining, and it is also the focus of Grayscale’s holdings. Grayscale’s holdings of other currencies, including Ethereum, are not as strong as Bitcoin. . For Ripple, Grayscale has even completely cleared its positions.

This shows that even if Grayscale officially starts to increase its holdings of these 6 coins in the future, there will be differences between closeness and estrangement, and it will not take care of each of them fairly. It may even be that as the market changes, Grayscale will liquidate some unfavorable coins.

So for us investors, when we see this news, we should be calm, and don’t buy these 6 coins immediately after seeing the news. Even if you want to buy, you have to analyze it yourself, which ones are more optimistic and which ones are more general.

As far as I am concerned, even if I want to buy these 6 coins, before buying, I will compare my existing investment coins with them to see whether my existing coins have greater potential or these 6 coins Greater potential? If some of the coins I already have have greater potential, I will only continue to increase my existing coins.

Among these 6 coins, I am only optimistic about LINK and FIL. The current price of LINK is relatively high, and I will not buy it for the time being. Only FIL can be considered for layout at present.

2. Judging from the distribution of the six coins, Grayscale is deploying in different fields.

Among these six coins, BAT is an old-fashioned currency, LINK is DeFi in a broad sense, MANA is an old-fashioned NFT currency, FIL is a distributed storage, LPT is a decentralized video application, and XTZ is an old-fashioned public chain. They are basically in different fields, either old-fashioned currencies in their respective fields, or currencies with relatively strong positions in their respective fields. The biggest feature of this type of currency is that the risk is controllable and the degree of consensus is relatively high. This is also an element that is particularly valued when investing in large funds.

Judging from the step-by-step layout of Grayscale, it will definitely not stop here, and more trust funds will definitely be added in the future. Regardless of whether it is from the perspective of market potential or risk controllability, it is impossible for Grayscale to let go of the big DeFi market.

According to the investment style of the fund, I estimate that if Grayscale adds another trust fund in the DeFi field in the future, it will definitely choose the top project with a high degree of consensus and controllable risks. The high probability of these top projects may be among these coins: YFI, UNI, CRV, BAL, MKR, AAVE, COMP, SNX. (This is just an example. The current prices of these coins have reached new highs, and investment needs to be cautious)

Grayscale is likely to play a leading role among institutional investors in the past, present and future. Its every move will not only affect investors in the currency circle, but also affect traditional financial institutions. Recently, some new institutions have applied to the US Securities Regulatory Commission for trust funds, hoping to enter this market for a share. This trend will only intensify in the future.

It is only January 2021, what kind of drama will be staged in the future? We will wait and see.

(Blockchain world, welcome to exchange and discuss! Author V: 730730)