The Layer1 Basket is comprised of cryptocurrencies that operate their own blockchain network. These specific networks sometimes allow developers to build custom applications on top of the blockchains using smart contracts. This basket provides investors with exposure to alternative blockchains outside of Ethereum and Bitcoin.
November 1, 2022
Cryptocurrencies operating on their own blockchain networks
Adjusted the first day of each calendar quarter
Portfolio rebalancing will be performed at the end of the calendar quarter to bring allocations back to specified percentages. In the interim portfolio allocations will be subject to market volatility due to price movements.
Higher Risk*
*This risk level is only factoring in the risk of the digital assets.
SOL
20%
LTC
25%
XTZ
15%
FTM
15%
DOT
25%
Solana is a high-speed blockchain created to process thousands of transactions per second while remaining secure and decentralized. Solana offers significantly lower transaction fees compared to other blockchains, and their developers use proof of stake vs. proof of work.
Solana (SOL) is a utility token for the network, where gas fees are paid in SOL for users of the network. The coin supply at launch was 500 million and it’s expected to reach 700 million tokens by Jan 2030. Solana’s initial inflation is at 8%. This inflation rate will reduce 15% each year until it reaches 1.5%, which Solana considers its ‘Long-term Inflation Rate.’
Litecoin is one of the oldest cryptocurrencies and one of the first altcoins after Bitcoin. LTC was developed to deliver fast, secure, and low-cost payments. Created by Charlie Lee, a former Google Engineer in 2011, Litecoin is an open-source project that uses proof of work to verify transactions.
Litecoin (LTC) has a capped supply of 84 million tokens. Initially, a new block was generated every 2.5 minutes providing miners with 12.5 LTC in block rewards. Similar to Bitcoin, Litecoin block rewards are halved every 840,000 blocks (approximately 4 years). To date, there have been two halvings: August 2015, August 2019. The next halving is scheduled for August 2023.
Tezos is a fully upgradeable, developer-friendly proof of stake blockchain platform. XTZ offers ironclad security and energy efficiency with each transaction. Tezos is environmentally-friendly and has created a safe, secure network without emitting a large carbon footprint.
Tezos (XTZ) had an initial supply of ~763 million tokens, with 80% going to investors and the remaining 20% to Founders & the Project. The annual inflation rate can be a maximum of 5.51% per year, but can be lower depending on activity. Bakers (validators) and Endorsers earn a block reward for validating and verifying each block. XTZ can also be burned if a Baker is caught acting maliciously or if a smart contract for delegation is created.
Fantom is a blockchain project with smart functionality that is designed to compete with Ethereum and other smart contract platforms by delivering more scalability and security thanks to its Directed Acyclic Graph (DAG) blockchain. The project seeks to deliver unprecedented speed, security, and reliability through its a BFT consensus protocol - offering instant transactions at low fees.
Fantom’s (FTM) initial supply is capped at 3.175 billion FTM tokens. Rewards for validators and delegators for keeping the network secure and governance will end in 2024. The yield for staking is variable and currently ranges between 4-14%.
Polkadot is a decentralized protocol that also acts as a governance token. Additionally it is used for staking, which is how Polkadot secures transactions and issues more of the cryptocurrency. Through the use of parallel blockchains (parachains), Polkadot is able to remove the heavy demands of processing from the primary blockchain, making it both agile and scalable.
Polkadot (DOT) is a blockchain network designed to support various interconnected sub-chains (parachains). The token serves three main functions: staking for operations and security, facilitating network governance, and bonding tokens to connect parachains. The initial supply was 1 billion DOT tokens and will grow at a 10% inflation rate with 75% of the supply staked.
This Basket contains the two most recognized cryptocurrencies, Bitcoin and Ethereum.
The Layer1 Basket focuses on cryptocurrencies that operate their own blockchain network.
The above material and content should not be considered to be a recommendation to invest in a basket or an individual digital asset. Investing in digital assets or cryptocurrency (collectively “digital assets”) is highly speculative and volatile, and digital assets are only suitable for investors who are willing to bear the risk of loss and experience sharp drawdowns.
Shrimpy Advisory is an investment adviser registered with the US Securities and Exchange Commission. Registration as an investment adviser does not imply a particular level of skill or training. Shrimpy Advisory exclusively provides investment advisory services related to investing in digital assets.
Shrimpy Advisory is not a broker-dealer, exchange, custodian, or wallet provider, and is not intended for frequent trading activity. The articles and client support materials available are educational only and not investment or tax advice.
Who Provides What Service?
Investment Advice: Advisory services for digital assets are provided by Shrimpy Advisory, an SEC-registered investment adviser.
Digital Asset Trading Services & Custody: Digital asset trading services and custody are provided by Gemini Trust Company, LLC. For further details regarding the custody of assets, including cash, held at Gemini Trust Company, please see your Gemini user agreement.
Risk: Investing involves risk and there is the potential of losing money when you invest in securities and digital assets. Past performance does not guarantee future results and the likelihood of investment outcomes are hypothetical in nature. Any past performance in the above material of digital assets do not represent the performance of a Shrimpy Advisory account and does not reflect the deduction of the Shrimpy Advisory fee. Regarding any instance of extracted performance, Shrimpy Advisory offers to provide promptly the performance of the total portfolio.
Investments in digital assets are: Not FDIC or SIPC Insured • Not Bank Guaranteed • May Lose Value
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