DAMO is the governance token for the HAI ecosystem. This will essentially provide the HODler with a “Ticket” into the ecosystem and allow for participation in the management of the portfolios along with the ability to create and redeem tokenized ETFs. With more progress still to be made before the launch of our governance token and the generation of the tokenized ETFs, we encourage you to follow us along the way for updates on the project.
Now let’s get into the nitty gritty.
First, I’d like to send my condolences out to those who took a loss DEFI 100 rug pull. While they claim to be back online and their message was displayed by hackers (below):
And the project is still online. Trading at about 0.15C. It’s important to do your due diligence before investing into any crypto asset. This is one of the main reasons for regulation coming at the highly anticipated asset class with more reasons mentioned below. At HAI we prioritize a protocol that allows for tokenized ETF holders to gain exposure to several projects without fear of a “rug pull”. An example of a project that was susceptible to an attack was the PAID network which got hacked earlier this year. Mr. Chasse, Founder of PAID, has established himself in the crypto community not only through PAID but also through Master Ventures and being a well respected project advisor in the space. His name is attached to all these projects therefore when something like PAID gets hacked it’s extremely unlikely it is the founders or developers participating in a “rug pull”. If so, Mr. Chasse’s reputation would take quite a hit along with his other ventures. We are currently in the process of creating our team page and look forward to updating you with HAI’s project partners, advisors, and investors.
Hedge funds are getting into crypto. If you are surprised, you shouldn’t be. If you are worried, you shouldn’t be. If you have paper hands, best of luck. These people are the GREEDIEST in the world without a doubt. They see the volatility crypto has and all of the abilities DeFi has to generate alpha and they could not resist. Who can blame them? May 2021 was a crucial month in BTC history. Coincidentally the same month that hedge funds started announcing BTC, ETH, and Defi Strategies. Goldman Sachs even put out a report on crypto themselves. But, we have influencers on Crypto Twitter (CT) calling for a bear market based on one month drop. Not saying the bull run is continuing BUT, you have Point 72, Millennium, Carl Icahn, and more setting up ways they can pour their billions into the crypto asset class. The volatility is right on cue. These hedge funds are going to attempt many times to shake out weak hands and then come in and buy your coins up for a cheaper price. Do you not notice the almost what seems like coordinated liquidations? Even before that large drop in early May, we had days where some larger cap alts would wick down 10–20% then come right back up. That is simply a liquidation wick. Also, these funds are usually only for people who have certain minimum investments required (usually about 50–100k USD). They are going to be charging their clients the good ole 2 & 20. Meaning a 2% management fee on their funds and sometimes up to a 20% performance fee if they outperform their benchmark. This is one of the many downsides to a centralized asset manager.
Not only will you have no say in what goes on in the fund, they’re going to take 22% just for managing your dollars and outperforming whatever underperforming benchmark they come up with. Through decentralized asset management there must be consensus amongst all parties who are part of the voting system. Not just one single manager. The wealthy invest into hedge funds because it sounds enticing and usually they do not even understand these strategies deployed. For example, you have Point 72 who claims to have the best risk management in the game, who got dismantled the first month of the year for over shorting a stock (GME) along with a bunch of other funds who were able to short 120% of the float. Collectively a decentralized asset management organization can certainly withstand the test of time compared to a centralized Hedge Fund manager.
Congratulations, you made it to the end! We would like to thank you once again for taking your time to read our Medium, we hope you can take something away from our post weekly. Join us on our next post for further updates about the progress of Hedge Against Inflation!