TLDR;
This video outlines a Q4 crypto investment strategy with a hypothetical $10,000 portfolio. It focuses on five key narratives: L1 tokens, cash-generating tokens, privacy tokens, trading platforms, and creator monetisation. The strategy involves investing in 10 specific coins poised to benefit from the current market conditions and upcoming catalysts, such as the expanding M2 money supply and potential ETF approvals.
- Focus on altcoins rather than Bitcoin, as Bitcoin has already established institutional confidence.
- Capitalise on the post-halving Q4 period, historically a strong time for altcoins.
- Invest in narratives and tokens with strong potential for growth and real-world applications.
Introduction: Q4 Crypto Strategy with $10,000 [0:00]
The speaker introduces a Q4 crypto investment strategy for someone starting with $10,000. The strategy focuses on altcoins rather than Bitcoin, as Bitcoin has already established institutional confidence. The speaker is avoiding BNB, perp dexes and memecoins as their run has already happened. The plan involves five narratives, ten coins, and a three-month investment period to capture potential upside. The speaker highlights their team's experience and past successes in identifying profitable crypto investments.
Crypto Q4 Historical Strength [2:03]
The speaker discusses the historical strength of Q4 for crypto markets, particularly in post-halving years. Following a recent market correction and liquidation, the market has reset, and September has closed green. Historically, green Septembers have been followed by significant gains in Q4, citing examples from 2015, 2016, 2023 and 2024.
Macro Catalysts: M2 Supply, Catch-Up Trades & More [2:55]
The speaker identifies several macro catalysts that could drive market growth in Q4. The M2 money supply is increasing, and global liquidity is flowing into risk assets. This could be due to countries needing growth, stimulus from the Japanese Prime Minister, or potential Trump stimulus checks. Bitcoin tends to follow the M2 money supply chart with an 80-day lag. Additionally, Bitcoin is expected to catch up to gold's performance, as gold has had a strong year, and Bitcoin typically lags gold by 100 days. The speaker also notes the potential impact of rate cuts, especially with a new Federal Reserve chair expected to be appointed by Trump, who is anticipated to be more dovish. ETF and DAT inflows are accelerating, indicating strong institutional interest.
Five Q4 Investment Narratives [5:20]
The speaker outlines five key investment narratives for Q4: L1 tokens, cash-generating tokens, privacy tokens, trading platforms, and creator economy plays. The speaker emphasises a buy-and-hold strategy for the quarter, focusing on these narratives to maximise portfolio growth. The speaker is avoiding jumping between coins or chasing "shiny objects", instead focusing on narratives with massive conviction.
L1 Token Picks [7:58]
The speaker's L1 token picks are Solana (SOL) and Sui (SUI). Solana is chosen for its large user base, numerous apps, high revenue, and potential for a spot ETF. Several digital asset treasury companies are running Solana DATs. Sui is selected as a potential breakout chain with unique object-based technology suitable for AI and fast transactions. Sui has a strong team and is developing a robust tooling stack. Sui has also flipped deflationary, with its storage fund permanently removing SUI from circulation. The upcoming Sui USD stablecoin will further contribute to token burning, creating a reflexive token mechanism.
Cash Generating Tokens [11:03]
The speaker identifies several cash-generating tokens: Pump Fun, Aerodrome, Athena, and GTO. Pump Fun is highlighted as a successful app with substantial cash reserves, aiming to disrupt major media players and reward creators. Aerodrome is chosen for its DEX on Base, which generates significant cash used to buy back tokens. The upcoming Base app launch and a potential merger with Velodrome on Optimism are also bullish catalysts. Athena is a volatility machine stablecoin that generates high yields from bullish funding rates and uses profits to buy back tokens. GTO, Solana's largest staking platform, captures a significant share of Solana's MEV and redistributes it to holders, benefiting from institutional staking growth and a potential Solana staking ETF.
Crypto Privacy Breakout Thesis [14:25]
The speaker discusses the potential for a privacy token breakout, driven by a more crypto-friendly administration that recognises privacy as a right. The focus is on optional or compliant privacy, allowing users to choose what they want to reveal. The speaker's privacy token picks are Zcash, Stocknet, and Cody. Zcash is chosen for its built-in optional privacy and similar structure to Bitcoin. Stocknet is seen as a programmable private smart contract chain, complementing Zcash. Cody is a riskier, smaller play with unique garbled circuits technology that allows for computation of private data while keeping it private.
Top Trading Platforms [17:45]
The speaker's top trading platform picks are Hyperliquid and Drift. Hyperliquid is the leading perp DEX with the most users, volume, and revenue, using its cash to buy back tokens. Drift is a derivatives play on Solana, poised to capture value from new token launches on the chain. An upcoming upgrade will improve Drift's execution speed, matching Hyperliquid. Drift is also relatively cheap, offering a good risk-reward opportunity.
Secret Bonus Pick: Creator Monetization [19:35]
The speaker's bonus pick is Zora, which offers exposure to both the Base chain and the creator space. The Base app is launching in November, and Zora is expected to be a key application on the platform. Zora allows creators to launch their own tokens and monetise their content, combining elements of Instagram and Pump Fun.
Conclusion: Fully Stacked Q4 Portfolio [20:54]
The speaker concludes by summarising the portfolio strategy, which covers L1s, trading, privacy, cash cows, and culture. The portfolio is balanced and diversified, with exposure to Base just before the app launch. The speaker believes this is the right time to deploy capital, positioning the portfolio for the next wave of liquidity. The strategy focuses on forward-looking narratives rather than chasing past trends, aligning with the typical flow of money in crypto markets.