If May was bad for crypto markets, then June was completely horrible. We’ve seen USD drawdowns of around 35% in both our long term holdings and mining accounts, but have managed to hold some water, in BTC terms, with our active trading account. The real silver lining has been that we’ve been able to focus more on tech, continuing progress on our trade planning and management package, as well as starting a new project that involves our own ERC20 and 721 tokens. While the past few months have been painful, we’ve been working hard and aren’t rekt yet!
It’s been almost two months since our last activity report and we’ve been very productive. Our current mining portfolio is current split among the following projects:
43% Raven (RVN)
40% Haven (XHV)
5% ZCash (ZEC)
5% ZCoin (XZC)
4% Monero (XMR)
We are holding to our original plan to hold all mining proceeds for the first 6 months of activity. We continue to monitor our holdings in USD and BTC amounts and are working on tracking various metrics associated with returns on capital investment.
We started mining Haven Protocol (XHV) shortly after our last update. This decision was based on a few tips from prominent crypto-mining personality @notsofast. The project is a Monero fork that has an interesting plan to create a crypto that is resistant to price fluctuations. Instead of trying to create a stable coin, the goal is to use a special smart contract that will allow token holders to preserve their holdings, based on the USD price of the token at the time it is offshored. When token users decide to pull their funds out of this offshore account, they’ll be compensated with whatever amount of XHV is needed to match their original USD amount. Obviously there a lot of details to work out, but we saw this as a good project to throw our hashpower at, seeing as how our general portfolio was heavily weighted in Ravencoin (RVN) and we needed to diversify. XHV’s price range has fluctuated between the $2-6 range since we started accumulating.
We switched our hashing over to RVN for a few weeks while XHV was pumping. We are still holding our entire mining haul and have not sold any of our proceeds. RVN’s price has fluctuated between $0.02 and 0.048 over the past two months.
As I write this, we are seeing a broad pump throughout the crypto markets. The timing seems to indicate a relationship with the US income tax deadline on April 17th, as the markets seemed to bottom out during the first week of April and began climbing the following week, including an insane $1000 pump that happened in under an hour. BTC itself has climbed 34% in the last 12 days.
We’ve also broken through the downtrend line that began in mid-December. The green line is the uptrend that started March 2017. We see this as a very good sign that the bear market may be over, but I’m waiting for several days of price levels above the uptrend before I call the bull run back on. I had noticed that these two trends were coming together on tax day, and had been anticipating what was going to happen for several weeks. This last dip down to the $6500 level was quite trying.
Alts are also having a nice run as well, with most of my personal bags up 40-160% over the past 30 days. I’ve refrained from any trading other than dollar-cost-averaging into BTC over the past 2-3 months, but today opened a few small positions of ZRX and XMR. I did not do any specific technical analysis beforehand, but did make a trade plan and will be keeping tight stops and scaling up as the price rises. We have only allocated a very small percentage of our capital to trading at this time, and our trade plan is limiting losses to under 2% of this subset. Our exit prices targets are at least 30%.
Our spec mining operation has had a good week as well. Haven (XHV), which we’ve been mining almost exclusively for the past month, has had over 200% gains the past two days. We continue to hold all of our mining proceeds as planned, although we have consolidated some smaller amounts of alts acquired through MiningPoolHub profit switching into XMR and ZEC.
In summary, we’re optimistic about the next few days and are watching things very closely in the meantime.