- In his newest blog post, BitMex co-founder, Arthur Hayes, shares the top four that can provide long-term profits for investors in this bear market.
- Hayes reveals that he chose those cryptos based on their price, a return profile of ETH and BTC, and actual use cases.
Recently, BitMex co-founder, Arthur Hayes, published a new blog post sharing his insights regarding the current conditions in the crypto market. Furthermore, Hayes shared his top four digital assets investors can hold during this crypto winter which can provide maximum profits for them when the bull season resumes. The former BitMex CEO shared his insights on the FTX saga and BTC’s price action.
Arthur’s top crypto recommendations
Hayes shared two yardsticks he used in making these recommendations. First, he explained that serious investors need to consider tokens that can generate yields for them. The second yardstick is that such digital assets must have the potential to surge in value when the bullish season returns.
Hayes further categorized his four chosen assets into reserve and super-powered assets. First, the BitMex co-founder selected the two leading digital assets (BTC and ETH) as his reserve assets. Then, he chose LOOKS and GMX as his super-powered assets.
But Why?
Arthur reiterated that BTC and ETH would offer investors capital appreciation once the bull market returns. However, GMX and LOOKS will offer investors yield returns that neither BTC nor ETH can provide. “Cheaply priced crypto assets with BTC and ETH return profiles and yield returns from genuine use cases are my best picks.”
He also said that most DeFi projects declined significantly in value during the ongoing crypto winter. Hence, such projects are massively undervalued and underpriced at the moment. Therefore, they present enormous opportunities for discerning investors.
Hayes explained the logic behind his decision saying, “I invest in projects at less than 5x profit/loss ratio once they offer annual yields of up to 20 percent.” He added that others might make their choices differently, but that’s how he decides. Hayes also said he would have invested in BTC, ETH, or both, but none of the two will give him the yield he desires.
In that blog post, the BitMex co-founder said that the $15,900 price might be BTC’s bottom price (the price at which it would embark on a new bullish run). However, he added that these periods make investing seem risky even though the rewards usually outweigh the risks.
Alameda and 3AC’s crashes are similar – Hayes
Hayes likened the crash of Alameda (FTX’s sister firm) and 3AC together. But, according to him, both firms weren’t engaged in arbitraged trading as they falsely claimed to their investors. Instead, they were only playing on the lack of knowledge of their customers regarding crypto trading.
Hence, when both firms had liquidity issues, there were large transfers of BTC and ETH (the most liquid cryptos) across exchanges. The former BitMex CEO said he is delighted that neither of the bankrupt firms had any BTC or ETH left to sell. According to him, it means these firms’ remaining crypto assets (mainly illiquid shitcoins) would have little or no effect on the current market direction should they decide to sell those crypto tokens.
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