Metacoin

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The SHTF Portfolio*, Part 2

We gave you a couple basic ideas in Part 1, including gold and silver, plus some cash, and — since this is a crypto blog, natch — ETH as your gateway crypto.

Now, in Part 2, time to go really in on crypto to round out your potential portfolio for…well, you know.

This reminder: We’re not responsible for your success or failure. That’s all you. This isn’t individual advice. Past performance isn’t indicative of future results. Bet with your head, not over it. We hope, though, that you succeed.

Portfolio Idea #5: Yes, Virginia, there Is a Bitcoin

You need a little BTC to make sure you have the Grandpa of Crypto. Not a ton, but some. This is where you’re assuming the coin will act as a bit of a hedge, and will move with the broader stock market — which it has done, at least a little — but you’re not banking on a 10x overnight.

You’re doing this for ease of mass usage on places like PayPal, for when people start adopting it.

It’s not our favorite right now, but it’s not to be ignored in a crisis.

Portfolio Idea #6: Join a YFI/ETH Pool on Uniswap

We’ve talked about LPs — “Liquidity Pools” — elsewhere on the blog; this makes a ton of sense as the crypto world morphs into the DeFi — “Decentralized Finance” — world.

Our recommendation here is to have some $YFI and put an equal amount of it and $ETH into a Uniswap pool. While the liquidity here is not where it used to be, you really want to be there because the next Uniswap “airdrop” (more on those in a second) will happen and you need to be using your Metamask account in order to get some sweet, free money. Which brings us to the next item:

Portfolio Idea #7: Get Airdrop Fever

Most of these will suck.

In fact, until Uniswap’s massive airdrop — 400 coins into EACH ETH account you used on their platform — we hadn’t ever seen one that was four figures worth of fun.

The rest may eventually be worthless — I’m looking at you, POW Token — or just a couple bucks here or there. But there are some gems if you’re willing to play around a bit.

Sign up for airdrop alerts from other blogs, check this site for some that we see, and — this is a great tip, in our opinion — get over to Telegram and start poking around.

Keep a spreadsheet and check back periodically on the airdrops’ sites to see if you’ve had any luck.

Portfolio Idea #8: Take a Couple Chances

Here’s where you can get creative, but don’t go crazy. For instance, we have a couple hundred bucks — in October 24 prices — worth of Taco coins, and, should a random small need pop up, we can cash that out and not feel incredibly bad about it.

You’ll want to consider having a few of these types of investments; probably not going to set the world on fire and do a 100x tomorrow, but may hold their value okay.

Some to think about:

Portfolio Idea #9: A USD “Stablecoin”

The best and easiest of these is DAI. Whether it is technically a “stablecoin” could be debated, but the general idea is to peg it to the US Dollar and it doesn’t fluctuate too much above or below that buck.

(Whether the US Dollar will continue ad infinitum to be the global reserve currency is questionable. But…well, that’s a subject for another day. Also, while you’re here, be sure to read our discussion with Carlos Baeza Negroni, who is building a stablecoin pegged to the Chilean Peso.)

You can get some DAI through this CLEARLY MARKED AFFILIATE LINK to Coinbase.

Scouts’ Motto: Be Prepared

Hey, we all hope that things remain semi-normal, but there’s a chance they won’t.

Consider these ideas to get you started as you prepare for the turbulence ahead.

More DeFi Food: A Deep Dive into (A Plate Full of) TACOs

Really, #DeFi developers, do all of these things HAVE TO BE NAMED AFTER FOOD?

Well, they don’t HAVE to be, but it appears that some of the more interesting concepts in DeFi (Decentralized Finance) actually are named after food. Like $TACO, a platform that we learned about when we were trading $SHRIMP and $SUSHI.

More Than a Cute Logo and a Clever Name

TACOs has turned their brand of deflationary token launch into a game. They have set aside a large chunk of the token supply to be burned: 6 percent of the Uniswap pool gets torched daily.

From taconomics.io

(Nobody likes to eat burned tacos, but…)

Hey, this does appear to be sorta clever: no more TACOs can be created, and the supply gets “crunched” so that your TACOs become more valuable over time.

It works like this, and we were able to confirm through a couple of “trades” of our own yesterday:

  1. You decide if you want to “crunch” the outstanding tokens and claim 10 percent of the amount being crunched;
  2. You pay the gas — we paid $3.12 on one of our transactions yesterday — and have to calculate whether the gas makes up for the value of the tokens;
  3. You make the transaction and see the 10 percent in your wallet.

But here’s where it gets interesting: you may decide that the gas price is totally worth it, despite only getting (in the above scenario) 42 tokens added to your balance. Given the recent price of just short of 7 cents per token, you’re paying a little more than $3 to get 42 tokens. SO you’ve covered your costs.

7 cents a token, eh?

In another case, when we decided to say “what the heck?,” we paid 10 cents a token for another 60. We think there’s potential with this platform — in fact, we did the math and the burn rate — or “crunch rate,” even “crunch rate supreme” — might mean that supply gets tremendously sliced over the next month.

Day 30, 6 million burned.

This means that on Day 30, $TACO has nearly half of its coins destroyed.

Only 8.4 million left on Day 30

OR…if you check the contract, you realize it’s not moving THAT quickly…

From Etherscan

It’s still early and there are some kinks to work out — and the website itself is a little murky on details. BUT, if you’re willing to play a game, and don’t mind the potential that you could be playing a game that could be worthless, spend a little time with a plate full of TACOs.