The snippet below represents the top 90% of value of our crypto portfolio. The crypto currency Jewel is one of two I invested in last November. The other is Harmony (ONE token). They work as a pair in a game called DeFi Kingdoms which I spend about an hour a day “playing”. Characters, purchased for Jewel tokens, go on quests and earn income. They are NFTs. Also within the game is a “garden” in which you sow seeds. The seeds are a liquidity pairing of Jewel and ONE.
These currencies peaked in Jan22, less than two months after I committed funds, and our holding almost tripled. Since then, Jewel has tanked until recently by 80%. I couldn’t figure out why our holding was only down by 20%, until it dawned on me how much income we were making from the game. The interest on the currency in the garden on 19Nov21 when I first invested was 1,250% APY equivalent. It is still 326%, having fallen to 250% but that has increased recently, as is the TVL locked. More importantly, my heroes have been creating income to the tune of around 5% a week of their value. It is quite a complicated equation, but this week after a huge rise in Jewel value in USD, we are up from the start by 21%, and if the Jewel ever did return to its peak, we would be up 328%. If its value stands still we may continue to earn about 5% a week from the NFTs whose quantity I have been able to double without adding any further capital to this game.
It will continue to go up and down like a yoyo but I expect it to become an increasing proportion of our portfolio which is already far too high. I will be looking for opportunities to divest soon, but only by as much as it has increased by. Ideal target is when it gets back to double the original investment, then sell half of it, so that the entire holding cost nothing.