Value Token

The main purpose of the Value Token is to capture value. The strategy to execute on this is to profit from market volatility and increase the amount of (theoretical) bitcoin within the strategy.

In other words, the risk you take when putting money in this strategy should be rewarded with the price increase of $BTC plus an extra!

You can check the success of this strategy by comparing the value increase of the Value Token to the one of $BTC (see chart).

Since June 2019, BTC grew from ~11k USD to ~66k USD, an impressive growth of ~500%. The Value Token increased it's value in the same time frame even more by ~840%. This means if you had invested 1 $BTC into the Value Token back in June 2019, you would have the equivalent of 1.68 $BTC today. And this is all the Value Token is about. For minimal possible fees. Have a great day!

@ICONOMI added a very nice performance metric: "the annualised return." This is a common metric used to compare the performance of investments.

To ensure a like-for-like comparison, make sure to look at similar periods of time. It tells you how the value of your asset (e.g., in USD) increased or decreased per year on average.

The Value Token started in July 2019, more than 4.5 years ago. The value in EUR stands at +691%. The annualised return is approximately 55% per year over ~4.5 years. We can now compare this to, for example, the US Stock Market. The 5-year annualized return (including dividends) is 14.68% . In the last 5 years, the Value Token has outperformed the US Stock Market by more than 3x in terms of annualised return.

The "cost" is the volatility and the risk you are willing to accept on the journey. The maximum drawdown of the Value Token was 85.5% in these 4.5 years compared to 20% of the S&P.

Crypto is still a much smaller and younger market than traditional finance. But if you believe in $BTC, the Value Token might be "worth a look," as the main focus of this strategy is to increase the amount of $BTC within the strategy. And this works quite well: last year $BTC increased its value versus the USD by 108%, whereas the Value Token grew by 159%.

Disclaimer: All the information above is not financial advice. Do your own research before investing. I am not a professional, just an enthusiast; hence, the absolute minimum fees for following this strategy.

Value Token performed really well in the last year. It grew by +57% in value which outperforms $BTC by almost 10%. This is also recognized by Iconomi and rewarded with two tags: good risk/reward ratio and worth a look (performed better than $BTC in the last 6 month). The mentioned growth also compares quite well versus the other strategies as VT holds a top10 place in the 1year timeframe. All this for the lowest fees possible: 1% base fee plus 0% performance fee. The basic idea to accumulate more $BTC via rebalancing versus altcoins pays off in the long run...

A brief comment on why Value Token is 100% in $BTC at the moment. After the Terra/Luna Crash in May the strategy was mostly in (centralized) stable coins. With the default of Silicon Valley Bank, Signature Bank and now Credit Suisse and the shut down of Silverbank I believe that it does not make sense to take the counter party risk of centralized stable coins. Hence, the best option at the moment is the one actually decentralized cryptocurrency there is: $BTC . If we see a decoupling from traditional markets, the strategy will add other tokens of course, for now we stay in $BTC and wait and see.

Value Token exists for exactly 2 yrs and 9 months now. The kick off was end of June - on the 30th in 2019 to be precise. Since then it's valuation grew by a factor of 15. This has been a great rally for itself but also compares well to BTC (factor 4.1) and ETH (factor 11.6). At the moment our biggest bet is BTC and Luna, but I plan to diversify more in case the Luna bull run continues.