The Asymmetry DAA (AAAX) targets practical business offerings geared toward the basic needs of users operating in the blockchain environment, or in other words, where sufficient scalability has been achieved.
Higher weightings are given to more developed opportunities: either by number of accepted users, stronger scalability, and/or cashflow generators for owners of the selected assets. We seek to gain exposure to those assets that have proven first mover status in terms of a developed live product, raised significant capital, have a well-connected investor base, and have a strong "moat" built around their market position.
The AAAX covers the following elements of the blockchain:
The blockchain is in the development stages of an entirely new infrastructure offering on the planet. Therefore, diversification (find our blog post on diversification here) in these early stages of the AAAX will contribute to gaining the benefit of the overall market upliftment.
As the assets' business models develop, we will upweight the AAAX toward asymmetric opportunities. Asymmetry is gained through an investment with a high margin of safety and significant upside potential. The same in-depth research and analytics that we apply to the hedge fund positions will be applied to those in the AAAX.
Fact is, many of these ICOs are promising big things, and the upside potential is massive for most. However, not all are likely to succeed, and therefore holdings will be actively monitored for liquidity and systemic risks. We expect the simplest and most practical value-add products and services to win in the initial stages. As the winners of tomorrow become obvious based on our key operational and financial metrics, so the AAAX's exposure to these opportunities will increase.
Bottom line: like the internet in the late 90’s, the blockchain is here to stay. The applications that will succeed however remain a mystery. We want exposure to these applications but with so much uncertainty what is the best strategy?
We decided to run a simple model: We took the top 50 “dotcom” (or Internet stocks) ranked purely by market capitalisation at the peak of the “dotcom” boom (these included: Amazon, Yahoo, Google, Ebay, Priceline and Shutterfly), and allocated 2% to each of these 50 stocks (or IPO’s) to make up our 100% exposure to tech stocks. We then assumed that we went to sleep and woke up in 2017 (i.e. no portfolio rebalancing). We also assumed that 88% of the portfolio went to zero (i.e. none of the rest made it) and you were left with eBay, Yahoo, Amazon, Google, Priceline and Shutterfly. What would have been your annual returns since the peak in 2000?
The performance: a minimum of 14% p.a. in USD. Not bad considering even the most irrational of investors would (a) not have let the losers get to zero, (b) reweighted toward the survivors and (c) certainly many more of those selected in the top 50 went on to become successful companies.
To conclude, you want exposure to the Blockchain applications in your portfolio. It will be the single industry providing real economic growth in double digits for many years to come. Could your investment go to zero? Yes, but it could also make 50% return p.a. or more for the next 10 years. This is highly possible, and I like that asymmetric stack. Should you diversify? Hell yes! How can you diversify? Buy the Asymmetry Asset Array Index (AAAX) on the ICONOMI Platform.
Here are the steps:
No truer quote applies to this technology other than that of the Carpenters: “We’ve only just begun”.
The ICONOMI Digital Assets Management Platform is a new and unique technical service that allows anyone from beginners to blockchain experts to invest in and manage digital assets.
Asymmetry Asset Management performed an in depth due diligence on ICONOMI. We are satisfied with the