How To Pick The Right Choice For Long-Term Hold??What is the Fundamental Index (FCAS)?
FCAS stands for Fundamental Crypto Asset Score. This score comes from examining the basics of a project's business cycle and shows the fundamentals of a digital currency. The principles that are considered for scoring are: User Activity , Developer Behavior and Market Maturity .
FCAS ratings are numbers between 0 and 1000. The number 0 is the worst and the number 1000 represents the highest performance of a digital currency.
Now let's talk about each parameters of scoring in details:
User Activity:
User Activity is a comprehensive measure of the behavior of all consumers in a particular project that includes two main factors:
Using the project
Network activity
The advantage of this principle comes from examining all the activities of a particular blockchain, analyzing solutions if necessary (such as ERC-20 smart contracts), and tagging wallet addresses to identify exchanges, projects, contracts, users, and other types of participants. Various statistical and exploratory models are used to tag all active addresses.
Network Activity is a comparable estimate based on the above classifications that focuses on the activities of wallets, stakers, miners, users, and investors.
The Project Utilization parameter is calculated based on the activity of the wallets run by users (most of which are smart contract transfers and calls). This activity is used in the predefined application of the project.
User activity has a great impact on the FCAS score of the project.
Developer Behavior:
Developer Behavior Behavior is an indicator that shows the level of activity and efficiency of the developers of a project and comes from three factors:
Code changes
Code improvements
Project participation
The score of this section is obtained by recording and evaluating source code events in services such as GitHub. There is a slight difference between the obvious criteria of the developer and the activity of the community, so in addition to the commits and pushes sections, other things are examined to get a deeper evaluation of the project. Accordingly, 30 different variables are examined, then generalized to the three factors mentioned above, from which the overall score of developer behavior is obtained.
Developer behavior has a major impact on a project's FCAS rating.
Market Maturity:
Market maturity, which is obtained from the two factors of risk and money supply, indicates the degree of accuracy of a digital currency in the market. The more rational the market reactions to different scenarios and risk factors (factors such as liquidity, price plans, constant algorithmic forecasting and etc...), the higher the probability. Also in this principle, an analysis of the fixed money supply is performed in each of the projects. The more volatile the money supply and the more it is controlled by a small number of addresses, the lower the money supply points.
Market maturity has little effect on a project's FCAS rating.
Assetmanagement
The Joe Biden Tax PlanJoe Biden Tax Plan Topics:
☐ increase capital gains tax
☐ elimination of step-up basis
☐ elimination of the 1031 exchange
As the 2020 presidential election comes to an end, many are wondering what Joe Bidens' Tax Plan could do to the asset markets; By looking into his tax plan, we may have a couple of hints.
As many know, democratic nominee, Joe Biden plans to raise taxes on corporations along with taxes on individuals who make more than 400k per year. This will be done by raising income, payroll, and most importantly, capital gains taxes .
Any time someone sells an asset like stocks, bitcoin, or real estate for more than what they purchased it for, it creates a taxable event. Taxable events like these are what make up the capital gains tax.
As an example, let's say you purchased 1 Bitcoin for 4k earlier this year. With the rapid increase in Bitcoin's price, you decided to take profit at 14k, leaving $10,000 of taxable income. The percentage of that which is owed to the government is dependent on the capital gains tax rate. Biden plans to raise this capital gains from 20% to 40% for those making more than $1 million per year. Though most of us do not make more than $1 million per year, a 20% tax increase will lessen the incentive for big players to be in the market. Thus having a negative effect on asset prices all around.
Another factor to consider is that Biden plans to eliminate step-up basis. Currently, when an asset is left to an heir, the basis of that property is increased to its current fair market value. If that heir then chooses to liquidate the asset, it is only taxed on the difference in price since they gained possession. By eliminating the step-up basis, when the heir goes to sell, they will be taxed from their grantees' purchase price. This could potentially reduce the number of people holding assets long-term.
Lastly, Biden wishes to eliminate the 1031 ' like kind ' exchange. For those of you familiar with real estate, many people have used the 1031 exchange to move liquidated funds from one investment property to another tax-free within a timed threshold. By eliminating this, there will be much incentive for property investors to keep re-investing their money. Likely having a negative effect on housing prices.
By reducing incentives to keep investors money in the market, it seems that the Joe Biden Tax plan could have a negative effect on markets all around.
Looking at Bitcoin technicals, it seems it is ready for some bearish fundamentals. The BTC price is grinding against the top of the year-long channel which I do not expect to break without a fight. Looking forward to seeing what effect the presidential election has on immediate pricing.
Long YFI - Yield farming protocol yEarn.finance - YFI - Yield farming aggregator
Overview
yEarn.finance is a decentralized asset management platform that has multiple uses ranging from liquidity provision, lending, to insurance. The most prominent product in its ecosystem is Vaults which maximize users' yields by through various yield farming strategies proposed by the community.
History
Previously known as iEarn, yEarn.finance, was created by a single developer, Andre Cronje. After suffering an exploit in February, 2020 Andre announced he was stepping away from the project after facing backlash from the community. He later returned and the project re-branded to yEarn.finance introducing a suite of new tools such as Earn, Vaults, yInsure, and StableCredit.
The project rose to prominence after introducing its native YFI token. Prior to its launch, the protocol had around $8 million in assets under management which quickly rose to over $400m within the first week. Anyone who deposited liquidity on Curve yPool and YFI Balancer pool within the first week of launch, was qualified to claim YFI. This generated a lot of attention to yEarn.finance and its launch mechanism has helped develop the dApps into an active community, particularly since there were no allocations to the team or investors, meaning it is governed entirely by users.
Multisig Governance
Initially, Andre had the exclusive ability to mint tokens but that privilege was later extended to 9 multi-sig owners requiring 6 signatures. These members are active members in the DeFi community and Andre did not include himself as a signatory.
Vaults Launch
In Yearn.Finance V2, the team launched a new product called Vaults. It is essentially a smart savings account that maximizes the value accrual of deposited assets. yUSD is the first vault that launched and it reached ~$600M within days. The success of yUSD sparked the community to innovate more on this product, and in the end, yETH was born. yETH vault created so much hype, on the first day alone, users deposited ~$140M worth of ethers. This event triggered Maker(the protocol who made DAI, a key component in yETH accumulation strategy) to increase the debt ceiling in DAI. At the time of writing, The vault still closed temporarily, citing that the current asset under management is sufficient for risk and rewards returns.
Today is a Great Day to Hold + Buy DipsRight now people are unnecessarily panic selling stuff they likely don't need to panic sale. As Buffet says, the stock market is a tool for transferring money from the impatient to the patient. Today is a great day to buy dips, diversify and strategically invest so when the market rallies you can thank yourself later rather than unnecessarily panic selling stuff in ways where you can lose thousands upon thousands of dollars. That being said, everything I say is on the basis of opinion. Invest at your own risk and do your own due diligence.
$ASA can rise in the next daysContextual immersion trading strategy idea.
ASA Gold and Precious Metals Limited is a publicly owned investment manager. The firm invests in the public equity markets across the globe.
The demand for shares of the company still looks higher than the supply.
This and other conditions can cause a rise in the share price in the next days.
So I opened a long position from $16,04;
stop-loss — $15,45.
Information about take-profits will be later.
Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision.
Always do your own analysis before making deals. When you use any materials, do not rely on blind trust.
You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy.
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