June 2022 - Stocks, Crypto & Interest Rates

[shri]

He made the mistake of locking it away until September so has had to helplessly watch as it has bled out. I am not too worried about him, as without knowing all the details, he has clearly had a pretty good few years.

He lent it out or put it in a fixed deposit of sorts?

[Gollygordon]

Ok I checked my messages from him. Can confirm he describes the loss as 'gut wrenching'.

[Gollygordon]

He lent it out or put it in a fixed deposit of sorts?

Something similar to a fixed deposit, yes. Don't want to be too specific as is fairly niche and would rather not say anything identifiable.

[Gollygordon]

I was also involved in this investment and it also did not go great for me.

Sold it for a 5x due to a lack of belief in it as sustainable, which obviously sounds really great until you imagine being in a discord group with friends celebrating as the thing goes literally 300x. I tried my hardest to magnanimous, I really did. Still feel a bit sick tbh.

[Gollygordon]

Ooooh, bull market memories

[hhku]

He made the mistake of locking it away until September so has had to helplessly watch as it has bled out. I am not too worried about him, as without knowing all the details, he has clearly had a pretty good few years.

If my maths is correct, his position is currently worth about 200k. Down from a high of 6.3m but remarkably still up 10x from where he bought. Wonder if he will break even when he can access his funds in September.

so his investment went from 20k to 6.3M? what coin was this and was this a case of extreme prescience or just a matter of knowing the creators (presale etc.)?

[GentleGeorge]

so his investment went from 20k to 6.3M? what coin was this and was this a case of extreme prescience or just a matter of knowing the creators (presale etc.)?

I'm betting it was SOL

[Gollygordon]

As above, I don't want to name the project for security reasons (probs paranoia but still...). Not SOL! Far smaller project even at its peak.

It was a fair launch with no VCs and no presale (a clue!). He didn't know the guys who launched the project, but met a well respected person in the industry at a conference who was effusive about its prospects when it was trading at a 2m or 3m market cap (trivially small). So his 20k was actually a somewhat material proportion of the total.

Certainly a fairly extreme example but there were many other 100x's and a quite a few 200-500x. I remember hanging out in the Thorchain discord were some of the node operators had dropped 100k into RUNE at 0.01 to 0.03 and then seen it go to a high of 20. Ridiculous.

[TheBrit]

Tulip bulbs ftw

[Gollygordon]

Another friend of mine was one of the first LPs in Curve in January 2020. He was a little unsure about smart contract security so was only comfy risking 10k in there, almost as an experiment.

Fast forward to the CRV airdrop in August 2020, where Curve is now established with 100s of millions in LP (soon to be 10+ billion). Airdrop rewards LPs retrospectively. My friend's peak value of his airdrop? Over 15m. Ridiculous.

I guess he only realised perhaps 3m as it vested over 12 months and price came quickly down from that peak, but he realised that 3m in the early to middle part of a bullrun for the ages and was very active there, so God knows what he ended up with now. I don't think there will ever be another 2020/2021 for these extremes of crypto prices fluctuations and early access for retail ppl.