TheBRRR’s Thoughts

Crypto has taken a beating this week - bitcoin and ether are down 15-20% while Solana is down 33%.

We think it could all go lower - but we also think it will all be much higher in 6-9 months.

The fastest horse of the last year in crypto has been Solana and its accompanying ecosystem, and we think it will continue to be a top performer and will lead the rally higher.

Solana’s proving to be the chain for retail traders due to its low fees, fast transactions, and dramatic exorcism of SBF and FTX out of the picture as key investors.

Solana commands a disproportionate level of developer interest, as several of crypto’s most innovative and impressive teams and applications are choosing the Solana blockchain as their home.

Look into Helium, Hivemapper, Render, Filecoin and Jupiter if interested.

However we don’t feel strongly that the price performance of any of the tokens accompanying these projects will outperform Solana should Solana go on another big run.

We’re deploying 90% of our cash (proceeds from selling AAPL last month) to buying SOL at $131.

There is a Solana token we do have high confidence in to outperform SOL in a major rally - and that’s the #1 memecoin on the Solana blockchain called dogwifhat, ticker WIF.

We’re deploying the remaining cash (1% of the newsletter’s portfolio) to WIF at $2.39. Important note: this is a zero or hero play and we expect dramatic volatility, so we are sizing it appropriately and are prepared to lose it all.

WIF launched in December to relative obscurity and has grown to be the #3 memecoin in the crypto market only behind Doge and Shib. It would take a 5x from WIF to equal Shib from here.

Why memecoins? Here’s a quick thesis:

-retail is tired of buying tokens with high VC ownership as they have dramatically underperformed bitcoin, eth, and sol

-Doge was one of the best performing coins of the last cycle, making a new all-time-high when priced in bitcoin despite being around for nearly a decade. Most coins never return to their all-time high when priced in bitcoin after their first cycle.

-projects are becoming increasingly complicated and difficult to understand. retail understands memes, which trade simply on the attention economy

-memecoins like wif are often launched with fair distribution with low insider ownership, so there are fewer motivated sellers as price goes up

why WIF?

-the dog has a hat

also:

-the developer that deployed the token provably sold all of his coins very early on

-it is the darling of crypto twitter with a strong community that crowdfunded $690k to place an animation of the dog on the Las Vegas Sphere for a week (will be live in the coming weeks)

-it is often amongst the strongest performers when crypto markets rally, a trait technical crypto traders love to see

Updated portfolio is listed below:

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The BRRR is distributed for informational purposes only. It is not investment advice. Please consult with your investment, tax, or legal advisor before making any investment decisions.