I first bought into this token, at the time something I named a sh__coin investment, back in Q3, 2021. It has spent months in the doldrums at a price of around one sitoshi per coin, and I have accumulated a million of them at a net cost of about $300 (bought and sold a few times). Not sure what has happened of recent, but this “investment”, which I gave a 2% chance of doing a 100X has just done a 3X. Both in terms of its chances, and its cost relative to a lottery ticket, I am still hopeful to see a 10X inside 3 years, and possibly a 100X.
Market is very illiquid at that price - the floor. Will it become tradeable?
Oh sure there is a narrative. This was my first sh__coin, and it came out of the blue. I got this call from a snake oil salesman - I don’t know why but I seem to be on a few mailing lists of suckers to call from a boiler room. Anyway this guy said he knew the founder of XTP (TAP - a challenger bank), and that if I bought a million tokens, he would guarantee that I could buy them at 20% less than the minimum traded price of that day. He didn’t know I was familiar with Crypto, so I went along with him and asked him to send me the background on TAP, which he did. That was when the token was trading at about 25 satoshis. So I did my due diligence and waited till the coin tanked a bit further.
I bought in at 3 and 4 satoshis, and it pumped to 10 so I sold and rebought double the amount at 4 to 6 sats. This was back in May21, June 21 and then eventually I got in to the tune of a million, but at about a tenth of the cost at which the “opportunity seller” was plying his wares. The May event was just a chance coincidence. I had wanted to teach my son a nasty lesson, so sat with him to buy 500 Doge that I expected to tank. To my amazement, they nearly doubled, so I sold half of them and that is when I first bought into XTP. The start of my sh__coin strategy and an opportunity for which I saw the funny side of the Doge exercise and also of buying XTP. By December I had 250K tokens, and added 750K at 1 sat each.
I did nothing with the Doge - just left it there, because it was effectively free. Two weeks ago, I returned to Doge and increased our holding by 30 times. I couldn’t make my mind up whether Doge was going to be a sh__coin, or one that just fit into our “can it double within a year”? category. The XTP was dormant.
Now to the lifecycle strategy of the sh__coin commitment. I logged on to Bittrex earlier today, calculated our net cost and put in a limit order to sell at 3 sats - about one third of the holding. If the limit order fulfils, the net cost of XTP will be zero. And the net cost of the legacy Doge will also be zero. I have two other sh__coins, out of a total budget of ten holdings planned for 2022.
I am planning on adding 5 more, and I posted on here in another post asking if anyone had any “opportunities” identified. I don’t call these sh__coins any more. That is disrespectful to an opportunity that is real. I now call this the “three zeroes portfolio” meaning that candidates for addition need to be capable of growing 10X, 100X or 1000X. I don’t mind which.
At the time I decided to buy a million XTP I analyzed the reward/risk. From a baseline value of 1 satoshi, I determined it could return back to the $0.05 level from its $0.0005 level (100X), and it could tank away to nothing. I took the risk of losing the $500 for a 2% chance of it returning to $50,000 - and told my wife that it’s less than she spends on lottery tickets in a year, and about 10,000 times as likely to win a prize. She agreed.
On the subject of XTP, it would either die or get bought out. It looks like the latter happened. News article linked.
Great way of analyzing your particular risk appetite and personal financial situation.
It is truly amazing what can be done in crypto, and DeFi is making things even more interesting. Simply being engaged and open minded I think gives anyone interested an edge over traditional finance opportunities. It’s hard to recommend trading equities to friends. Exciting times.