Building up cash positions

Hey sprinters. Welcome back Simon Severino here. And this channel is about your revenue systems, your saving systems, your investment systems. Today we talk investment systems. I really enjoyed our live Q and a this week. And I take your questions very seriously. Many were about, Hey Simon, where is the 10 X? Where is the 10 X? Because I just shared with you some two X, three X, two and a half X. So yes, this week the markets were not giving us any clear signals everybody's waiting and watching. We still have to wait before Saturday, but of course we use this time to do two things. First build up cash positions so that we have dry powder when we need it. And second, we do our fundamental analysis and I do the research work with my 10 steps due diligence. And so I did a couple of fundamental analysis.


And today I share with you 1 35 X coin. So I'm excited. It's a high risk high reward coin for the speculative part of any portfolios that want to have a speculative high risk, high reward part. And so if you put in 1000, it might be 35,000. So if you put in 10,000, it might be 350,000. So and so it's worth watching, but first congrats to all of you who went in with me in Phantom over the last week, because just in the last 20 hour, Phantom has made 22% up, which is incredible. That's 1% per hour. This is what the SMP does on average over a whole year is what this guy has done in the last 20 hours. And it's just the beginning of Phantom. The whole ecosystem of Phantom, which I will describe in an, in an own video has three more, very interesting place and four more place to watch moving forward as a potential future play. So the whole Phantom ecosystem is Phantom is, is a strong L one. It's here to stay. It's just entering the top 10. And so it came on our top 10 list with Luna, Phantom, and Luna came onto our top 10 list recently. And look what Phantom is doing today. It's amazing. This is what Phantom did. And also congrats to everybody who went in with us on Luna. This is what Luna did this week. Incredible. We on this channel, we voted together life at 60, where we're 60.


We nailed, we nailed here the bottom. And that was how many days ago. That was January nine. When we went in at 63. And look were, we are right now. We are now at 83. So it went up 20 points in a couple days. It's incredible. We are now at 83 and this is four days later. That's what Luna is doing. So congrats on everybody who went in on Luna and on Phantom. And let's go to today's winner. So this 35 X possibility is something that is not a by today, because look we are talking met is, do, and met is do we go into the fundamental analysis? But first the technical it's not to buy because it was just railing. So it has to come down. We don't, we don't chase. We don't buy after such a 34% rally in a couple days. So we wait for it to cool down set, limit orders and and just let it come to you. But first, why would you want to consider it in your portfolio in the first place? Let's look at Al first. So let's do the fundamental analysis.

Future of financial systems

You know, our 10 steps elements of your system, right? You have portfolio construction, asset allocation entry system, exit system research system, rebalancing system. If you're following this channel long enough, you have this 1, 2, 3, 4, 5, 6 systems in place and you are getting better and creating wealth every month. Now, 10 steps that we check, we are talking Mattis, ticker symbol Mattis, and in a met is down decentralized autonomous organization. Does it solve a real problem? Yes. So it got a green here. It solves a real problem. The problem is smart contracts, which is a real need of the world right now. And it's the future of the financial systems. And there are some frictions in there. The main solution is Ethereum. Ethereum is boas, both expensive and slow. Expensive is a problem for retail, not so much for institution. They're used to pay this kind of fees, but without to retail, it's hard to scale.


So there has been a fork of optimism to build on the Ethereum EVM. So it's an L two from the asset class. It's a layer two solution on top of Ethereum, which is meant to make smart contraction smart contract transaction, faster and cheaper. So there is real utility in this thing, since smart contracts are solving real problems, and this is improving one problem that smart contracts have right now too low, two expensive. And if you have, have ever used Ethereum, you know what it means, if you try to buy stuff right now, you have gas up to $270 just to buy a, a $300 asset. So is it decentral enough? Yes. it is more decentralized than it's main competitors. The main competitors are Arro and optimism and it is more decentralized than them. What does it create in a decentralized way you can do on it, decentralized payroll, decentralized marketing, decent neutralized sales.


And it's also slightly more secure than it's two competitors, because it has a different mechanism in there called IPFS, which you can Google. And if you want to get very technical for now and high level, it's more secure. That's more decentralized, which is really important because we look for the grade of decentralization versus centralization and we don't touch centralized stuff. So network effects, does it have network effects? Yes. It's the more scalable version of the EBM. So it's highly scalable. It's more decentralized. And especially compared to our Petro and optimism, the main competitors other competition, other risks. What about competition? Is it easy to, to do well? Yes, because it's a fork of something and if something is so easily forcable, everybody else can come and fork it again. If you see most automated market makers are just a fork of UNOP.


So for example, sushi WP even looks like UNOP and every other market maker is the same thing. It's just a forked unit swap. So if it's so easy to fork, somebody else can for you and duplicate it easily. So yes, there is risk. That's why I gave it a yellow. You might give it a green or a red it's your, your decision. But based on this data, I gave it a yellow and I'm very conservative when I do the 10 steps due diligence, because I wanna be very sure I wanna sleep well with my predictions. Right. And so then let's see, what's the uniqueness compared to its two competitors. The unique compared to Arro and optimism is it's the only decentralized storage for the NFTs that are on there. So you can keep them there because the mechanism IPFS makes that possible.


And the same mechanism makes it also much more secure. So I see this as a competitive advantage, that will be green, but on the other side, it is just a fork of a proof of stake system, which for me is very, very risky, very easy to duplicate on a just technical level. You have to duplicate also the adoption and the network effect. That's not so easy. But on a technical level, easy to replicate on the other side is more secure. So I gave it the yellow then, is it inflationary or deflationary where it's kind of in the middle? It is inflationary as there is an emission schedule. We have a circulating. So supply of 1.8 millions and a max supply of 10 millions. So the expect price to go down many times before it goes up highly volatile, highly risky inflationary, not our favorite kind of thing. But if in this, in this hard year, if you are looking for 35 X things, you will not find any perfect possibility. You have to accept some inflationary, momentum and some broken to omics. If you want to go that route. And as you can see, there are many reasons not to go down that route.

This is not science

My main reason to be skeptical is the regulatory risk, because we don't know how the S sec will regulate all these layer twos will it be a slap on the wrist? And it's just a, a money fine and they pay it and it's fine. Or will it be something more substantial? Really? Nobody knows. The only thing that we know are Bitcoin is not regulated by the S sec because it's a property and not an equity, but everything equity, especially layer twos will be regulated. And then they have to show that they can still be in the game. So highly regulatory risk, but that applies to every L two and every L one accepted theory. So then we have velocity. Velocity is fine. It it's, it's moving in the right direction at the right pace. The team founder, Natalia am is a strong, smart woman.


And in Canada with the great network and she's doing amazing stuff. One of the co-founders ele in El Cova is also LIC butter's mother which tells you really how, how young and emergent this, this, this movement is right. And the community is not there yet. It's hard to buy. It's expensive by because exactly of the problem that is tries to solve, right? You have, and the community, yes, there is positive sentiment, but it's not, not very well known yet. And the technical analysis, it's not a buy at this point in time. I would wait for it to come to you. If you want to set and limit order, I would set the limit order for $150. And if it comes to that point, then it might be a buy. The TBL is really interesting and has been exploding. And the TBL is, is what we're looking for.


What are developers doing? And what is the total value locked? So high potential here, I see a 35 X potentials, and now I will show you why. So it's a layer two solution, right? Let's compare it to another layer, two solution. We know now about the total value locked and now let's compare it, which one is the best layer, two solution out there. If you ask me, it's clearly polygon. And so if we compare the market cap of polygon and of meth is do and say, what is the price? If meth is down, does everything like it's doing now, now? And if you just keep doing well and reaches the market cap of the best L two, what will happen? Then we have a market cap from 438 millions to 16 billions. And this is where we have 37.5 X. That's why this is not science, of course.


And this is just one number one, not even indicator. This is just one calculation, right? So don't bet your far arm on one calculation, but there is potential. There is potential. This is something to watch. And if you want to have a highly speculative part of your portfolio, that might be 35 X that's my sand back version. If you want to have something like that, then this might be one but not know that this is highly, highly speculative and highly risky. So having said that this is the coin of the week. Congrats again to everybody who's been buying fantom and Luna. You have done 20% on both over the last hour worse. So keep rolling everybody, let me know what fundamental analysis you need next and keep rolling.