Trading Update: Bought EOS and 0x, sold ETH

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I made two more investments this week from my fiat holdings, into EOS and 0x and liquidated half my Ethereum position to take out a second and significant position in EOS.

This is a perfect example of where I ask people not to just blind copy my trades and make investments based on their own research. I'll explain my trades below, but the three positions are as follows:

  • EOS (1): +0.6%
  • EOS (2): -10.3%
  • 0x: -14.7%

The reason I decided to make these investments is due to the growth and performance of protocols over this last year. I have made significant returns from Ethereum, Lisk, NEO, and Waves as these infrastructure projects are defining the protocols for decentralised app development. NEO and Ethereum are both part of the +$1b club, and I feel that both EOS and 0x have the potential for significant returns.

EOS

The CTO of EOS is Daniel Larimer, the founder of Steemit and Bitshares, both relatively successful projects and with EOS Daniel is attempting to create a competitor to Etheruem. With all the ICOs launched on Ethereum it has struggled with scaling. EOS is trying to provide a platform for Dapp development with higher throughput and lower fees.

I won't pretend I can understand the details of the technical arguments here. What I am aware of is the opportunity should EOS achieve their goals. The ICO is ongoing, and as such, there has been a lot of downward pressure on the price. Of my two investments so far, one is marginally up, and one is -10% down. Still, this is a long-term hold, waiting for updates on the platform testing and releases, if the news is good and the platform performs as hoped then I will expect to see some big price jumps. A risky, but a calculated investment.

You can read more about EOS in Adam Cochran's article on Hackermoon:

A Primer on EOS, Ethereum’s newest competitor — and why it grew 3.2x overnight

Note: I liquidated 50% of my Ethereum investment into EOS as a bet that over the next few months the EOS price will outperform ETH. I have some concerns around scaling issues with ETH and the success of Metropolis. Also, I think the clampdown on ICOs may impact the ETH price.

The price has dropped massively since the ICO and appears to have found a bottom support level of around $0.53. While the price recently went above $0.80, it is dropping again, but I feel the long-term upside is good.

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0x

This is a project I only recently became aware of through a token trader I met in LA. He explained the benefits of a decentralised exchange for the open trading of Ethereum tokens. With increasing regulation of exchanges across markets, I am expecting a growth in the use of decentralised exchanges and 0x is position well to be a leading exchange.

You can read more about this in Linda Xie's beginner's guide to 0x. You can also see on the 0x website homepage the number of projects built on it.

The price has dropped nearly 15% since I made my investment, but again this is another long-term investment for me.

Similar to EOS, the price has also fallen massively since the ICO but appears to have found a bottom at around $0.17. 

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