What’s Hot, What’s Not, And What’s Weird

By | November 7, 2021

Oh thank goodness, finally the New Currency Frontier portfolio is getting some love from the market.

It’s been tough buying and holding on to public crypto stocks when bitcoin and Ethereum have been outperforming them month after month.

But not anymore. In a bull market, the public stocks have more torque. When mania hits, they have WAY more torque.

Since the third week of September (traditionally the lowest point of the year for crypto), bitcoin is up 50% and Ethereum is up 55% (as of September 20th-21st)).

But the large-cap crypto-stocks have done better:

  1. HIVE Blockchain Technologies Ltd. (HIVE.V) is up 70%
  2. Bitfarms Ltd. (BITF.V) is up 67%
  3. Hut 8 Mining Corp. (HUT.TO) is up 83%

Note all those companies mine bitcoin, and are thus the “blue” chips stocks of crypto.

But the mid-tier crypto stocks are starting to take off as well (again from September 20th-21st)

  1. Voyager Digital Ltd. (VOYG.TO) is up 58%
  2. DeFi Technologies Inc. (DEFI.NE) up 223%
  3. Tokens.com Corp. (COIN.NE) is up 395% yes from 34 cents to $1.50 today.

If history repeats itself, as long as bitcoin goes up week after week, so will these companies, but only…moreso.

But guess what is not hot.

Micro-cap crypto stocks.

Let’s take two long-shots micro-cap stocks Mobilum Technologies Inc. (MBLM.CN) and Link Global Technologies Inc. (LINK-CSE) in the New Currency Frontier portfolio. Trading on the CSE, they are still down from September.

Mobilum is down to 26 cents from 32 cents. LInk Global down to 16 cents from 30 cents.

With minuscule market caps of $34 million CAD and $9 million CAD respectively, it won’t take a lot of capital inflow to move those stocks if they ever feel some love.

But will that happen in this market cycle?. That’s NOT a certainty.

The payoff can be great but so can the pain if the bull market is cut short. Yes, you can lose money even buying at the bottom if there is no liquidity.

Also, payoffs are relative. In my opinion, the mid-caps have a chance for 200%-300% gains in three months.

I think even the blue chips have lots more room to run. So a penny stock that holds out the chance for a quick triple becomes way less attractive, relatively speaking.

And that’s why I sold Link Global at a loss even in this raging bull market. I hope for the remaining shareholders it rebounds nicely, but I don’t have a dog in this fight anymore.

Still holding onto Mobilum, but we’ll see.

And Now It Gets Weird

A few weeks ago I wrote an article about the multiverse and the world of Ready Player One.

A story set in the future, but it’s getting closer to becoming a reality every day.

Where did I “invest” my money this week? In a multiverse called Upland.me.

You see, in Upland, every once in a while they open up a city where lots can be purchased.

This week they opened up Nashville.

I wasn’t able to buy the Grand Ole Opry, but I got a nice deal on a shopping centre and a Baptist church, as well as some lots by a golf course.

So far I have “invested” about $5000 in the Upland multiverse.

Look, it’s a lot more fun than reading financial quarterlies.

Do you think I’m crazy? Well, a venture fund dropped $18 million into the company this week.

Come back in two or three years and let’s see how much Nashville property is going for.


Editor’s Note: Of the stocks mentioned in this article, I own Bitfarms, Voyageur, DeFi Technologies, Tokens.com, and Mobilum