How to make the most money in the crypto markets. Experienced since 2013.

It seems only yesterday that bitcoin was $1000, and now is testing the $20,000 level. X20 in a year is not bad at all. Young people looking into mutual funds with their 5% a year average returns hearing about crypto doing 5X in 2 minutes, are definitely not going to their banks and sitting down with their advisors. People are cashing out their RRSP and TSFA to invest. Is it responsible? Not sure, I'm biased, not the right person to ask.

History in the making

Crypto Kitties clogging up the Ethereum network, Andreas being knight a crypto millionaire by the community and Bitcoin forking 6 times in the coming months. No one said it better than Mike Tyson: "everyone's got a plan 'till they get punched in the mouth." This is really good advice for the newcomers, the gamblers, speculators, FOMO people and maybe some of us who became aware of the option B (Bitcoin) to our current financial system.

Who made/will make more money?

Looking at 2017, it looks like 2013 amplified 100X and counting. It has got me thinking, who made the most money since 2013? Coinbase was valued at 1.6 billion after years of hard work back in August this year. Winklevoss brothers are billionaires from an $11m investment for just hodling. Coinbase's early investors would have done better by just buying bitcoins with their investment money. Then again, what is the fun in that?

There are also the founders of protocol level innovations such as Ethereum. Anyone not building a proper protocol level blockchain that is widely used is betting that their company will grow faster than the industry as a whole. That's like picking a single stock in the market and betting that it will outperform everything. Obviously building a company has many other benefits, although, from a pure investment on time and money perspective, it will probably be easier to just buy some of that crypto money and wait for the smart people to build, fail and repeat until perfection.

One of the projects that I have my money and time on is CubeMonk. It is a protocol level innovation from a logistics perspective. Talked to Todd a few weeks ago. (Which now seems to be months, because crypto is 24/7, so one work day is actually a 3 work day in the normal world). The first thing that I ask potential investable project is if it's a utility token. CubeMonk isn't but there are lots of them out there.

Utility token trap

ICOs are all the rage and most of them are branded as utility tokens and this is how I feel about them: say I like the airline business, so I go to the airport and buy 2000 airplane tickets. They are going to look at me like I'm crazy. I tell them, listen, there are a bunch of Chinamen who are going to come into this country next year and use the airplane, so I'm going to be able to sell these tickets to them more than I'm buying them for right now. They are still going to think that I'm crazy. This is exactly what is happening with these ICOs that is doing utility tokens.

There are definitely projects that will do well, and projects that give investors some crazy returns. That is just the state of the market rather than a fair valuation of the underlying token or the business itself. What I'm looking for are security tokens that share on profit, have voting rights and all of the features of a stock.

Angel investment is the new get rich relatively quick scheme.

In the last few months, I have vetted a few hundred deals personally and with associates. I have invested in less than 10 of them. Recently I started to look for angel investment deals. For angel investing, the success rate is usually around 1 in 50. This means for every 100 projects that I look at, I should only invest in one or two of them. Tokenization makes these kinds of investment projects a lot more attractive. This is because money is raised to build a system which can be tokenized and the tokens sold to the public. The public raised amount can then be used to pay back some of the initial investors. Effectively reducing the holding time from 5 years of a traditional angel deal down to 12 months or so. I believe this window of opportunity will stay for the time being and this is the new way of angel investing in tech companies.

Talking about deals, there was an event put together by my good friend David S. over at Rai Stone Agency. It was a pitch competition that happened on (date) with $10k in prizes.

I had another good friend Todd who runs CubeMonk and is at a stage to look for early-stage investments. He has invested a bunch of his own money with his partner to get the company to where it is right now. It's one of the best projects that I've seen so far. The judges at the competition also agree, because Todd won the whole thing and went home with a big a$$ check for $5k payable in crypto! (Tall guy on the left, he was also an all-start Football player in college, check out his profile here).

All of the stuff that I said above about security tokens, share on profit, and being able to participate within the ecosystem as more than just a token holder is present in CubeMonk's model. I urge you to take a look and find ways to be involved because I believe it will be one of the biggest deal in 2018.

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