The Web3 Basket contains assets centered around the metaverse and the next iteration of the internet’s evolution. Gaming, entertainment, privacy, and sovereignty are some of the focus of Web3 assets. This sector represents many of the newest assets and is the most speculative basket that Shrimpy Advisory currently offers.
November 1, 2022
Assets focused around the metaverse and gaming.
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.
MANA
30%
AXS
25%
SAND
25%
ENJ
20%
Decentraland is a digital world shared, co-created, and hosted by a decentralized network of peers on the Ethereum blockchain. Players buy scarce digital land (called LAND) in the Decentraland metaverse, which they can develop for almost any purpose, including virtual shopping malls, museums, and event spaces.
There were 2.81 billion Decentraland (MANA) tokens minted when Decentraland launched. There will be additional MANA tokens released continuously, with the first year supply increasing by 8% and then decreasing year over year to 6.06% by the fifth year and 4.65% in the tenth year.
Axie Infinity is an online video game where players participate in turn-based battles using Pokemon-like characters known as Axies. Unlike other online games, Axie Infinity players own the characters they play with, along with the world’s land, resources, and items. Axie Infinity proves ownership of unique digital in-game items by using blockchain network-based non-fungible tokens (NFTs).
Axie Infinity (AXS) is capped with a total supply of 270 million AXS tokens and the supply is expected to be fully vested in April 2026. The AXS governance board plans to release the tokens over a period of 5.5 years. Axie Infinity plans to move to a decentralized ecosystem in the future.
The Sandbox is a play-to-earn metaverse on the Ethereum blockchain built for those seeking to break free from the centralized constraints of traditional video games. Built for users, by users, The Sandbox provides a unique virtual world for the next generation of gamers where anything is possible.
The Sandbox (SAND) had an initial token supply of 560 million tokens. SAND is used for several purposes: staking, a medium of exchange, and a governance token. The max supply of this token is capped at 3 billion and it is expected to be fully vested by Feb 2025.
Enjin is video game community and development platform on a blockchain network. ENJ allows users to build websites, chat forums, and gamer dApps. Enjin was built for the video game enthusiasts specifically, and offers them the opportunity to create communities around video games and tokenize virtual gaming assets.
Enjin Coin (ENJ) has an initial supply of 1 billion ENJ tokens. All Enjin coin created assets (with Ethereum tokens) can be “melted” or exchanged for Enjin coin at any point in time. The initial distribution of Enjin coin was 40% pre-sale by Enjin, 40% to Crowdsale purchasers, and 20% to be distributed by Enjin to advisors, testers, partners, and the community.
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
Before investing, consider your investment objectives and Shrimpy Advisory's fees and expenses. Shrimpy Advisory's internet-based advisory services are designed to assist clients in achieving discrete financial goals. They are not intended to provide comprehensive tax advice or financial planning with respect to every aspect of a client's financial situation and do not incorporate specific investments that clients hold elsewhere. For more details, see Shrimpy Advisory’s Form CRS, Form ADV Part 2A and other disclosures.
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