Our INCOME Synergy Fund is all primed up to really soar in the coming year, we have made some big moves in the portfolio over the last week, and I definitely want to tell you all about it.
But first I also have a proposal to solve a problem I am not sure you guys know exists. The fact that there is a really limited amount of INCOME token out there. This has its pros and its cons, let's talk about them here. I recently made a pitch post to get new users into the fund, and I am realizing that there is basically no tokens to spare.
Market Cap vs Circulating Supply
While there are 10,000 INCOME tokens in existence, I keep at least 66% of them for the time being, and this means there are really less than 3400 tokens floating out in the market. I have tried to get in contact with @d00k13, who owns just over 300 tokens, to see if he might want to sell some. So far I am not sure how to get a hold of him other than he uses dTube.
Whey do I keep such a tight control of my fund? I care about how my fund does, and if I sell my own stake in it, then I likely will stop caring as much. So that I still care (a lot!) how well the fund performs, and I still have enough 'skin in the game' to keep me interested and happy doing the work and dragging the rest of you along with me - that's why I keep a large percentage of the fund as part of my own portfolio.
I originally had another idea to add more tokens to the fund, a while back in fact, and this would be to mint some number of INCOME tokens to myself (@ecoinstant) while I put in some matching value assets into @ecoinstats to back up the new tokens. More on this in the next year or two when HIVE is really expensive and we can make a killing doing a move like this. That will be the next thousand.
No, for now, I was thinking the simple, old fashioned way. @ecoinstats mints 1000 more INCOME tokens and lists them on the market at slightly above ABV. Because our token is so awesome you should consider buying it at a premium.
Right now there are no INCOME available on the market. If any holders want to sell some, go ahead. But INCOME is so awesome that people rarely sell. I had listed 1000 at 8.7, but now our ABV has spiked to 8.9 and is set to go even higher with this new leveraged trade we made.
Let me talk a bit about that:
LVL lever
We have liquidated funds from positions in BRO and LABFUND to jump on a trade that we think will be quite profitable in the short and medium term - LVL. This is the token for @psyberX, and indeed we have made thousands of HIVE trading this token already in the past, it has been a major driver for HIVE growth in the fund in 2022, indeed we were down to our last 1 million LVL on the fund, and even somewhat sideways-eyed by other psyberX people as 'a dumper'.
But right now it was time to 'buy the dip' again, and we did, going from 1 million to 7.1 million LVL tokens in the span of a week. Our average acquisition price was 825 HIVE per million, for a 5032,5 spent. The position is already up a bit from this point, and so you can see that SPEED was key in this trade. It remains to be seem how much patience will be needed. We will let the market ease back if it likes and wouldn't mind buying a million or two more in the same price range.
Is it safe to invest 7% of the fund in this one project?
Maybe not, the whole thing could crater. Its definitely a risk, but one that I view with limited downside and a whole lot of real upside potential. Remember, I am in the team chat discords :) This is not financial advice, its just a receipt. Our grain of sand in what is coming up for the @psyberx and @psybersects projects!
So you want to sell INCOME to buy more LVL?
No, the LVL move is already underway, the fund will not be buying any more at these new higher prices, only if it dips back down into our buy range and even then only with the hive-engine parts of our current portfolio.
With the HIVE earned from selling this new INCOME, we will power up to keep balanced against what LVL is already doing to our Hive-Engine:HIVE ratio. That power-up will be used to strengthen the vote on the daily curator for those who hold INCOME token.
Brilliant!
I think it is the right time to think about this type of expansion, we are growing good on all fronts and this is just a 10% increase in the token supply. While @ecoinstats holds them they will not be considered part of the circulating supply, so it is unclear how fast all 1000 will enter the economy anyway.
Any thoughts from you INCOME holders?
And before you ask, yes I am looking into increasing the daily divs by 14% or so, but this might get pushed to Q1, I have a lot of plates spinning and I always want to be sure before I move, I know you guys love ABV growth as much as divs, or at least you will when we turn it into even more divs by massively boosting our HP through successful trading 🤣
Time will tell.
So far its looking pretty good. In terms of minting new tokens, I will make the decision in the near future based on the feedback on this post. Have a great productive December everyone, I am not going on vacation just yet.
I saw that all the buy orders were sold out so I set a small order up top. Who knows if it will fill because there doesn't seem to be much supply on the market.
Posted Using LeoFinance Beta
I don't want to get dilluted though.
Posted Using LeoFinance Beta
If we sell for above ABV there is no dilution, in fact the opposite: enrichment!
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💪😁😊😉🤙 wow, I didn't know INCOME was so rare. I feel even better about owning some now. Gotta add to that soon..
I like LVL, too. i want to add to that also..
Hello!
I just added 2 INCOME tokens to my portfolio.
Let's see if i can get it up to 10.
Looks like a nice project.
Kepp it going!