Transcription
Just over 2 days ago, we experienced the biggest crypto liquidation event in history with $20 billion being wiped off the market. Pretty much anyone with a leveraged altcoin position got wiped.
But now heading into Monday US stock market open, we can see the majority of altcoins are absolutely exploding and especially the strong ones which were performing really well prior to the dip. They are pulling massive gains. I mean, you have to up 30%, mount up 20%, world liberty up 20%, Suie up 15%.
So, I guess a lot of people have now pivoted from, you know, really bearish to wondering, should I buy? Is this going to be a V-shaped recovery? Is now actually a buying opportunity. So, in today's video, I want to go into my exact framework for buying crypto, what I'm doing right now. I'll update you on everything I did over the weekend and I've also prepared a spreadsheet for you to make sure that you're holding the right altcoins heading into the rest of the quarter because I think now more than ever it's important to be concentrated in the right assets.
So, if you enjoy content like this, make sure to subscribe to the channel so I can keep you up to date in the market. Hopefully, the video that I did with Paradise in the midst of all the carnage helped you guys out because we posted our buy list here. We went through some scenarios. We said that um we were using this as an opportunity to accumulate altcoins. And of course, a lot of those entries in hindsight ended up being, you know, really easy opportunities to make 20, 30, 40% gains in the market. And you know, there's a reason why I highlighted these coins on my buy list and not others like B&B, Mnt, which are obviously two of the massive outperformers at the moment on this bounce. Um, you know, Pump, Pangu, Rail, Rails also up massively, I think over 40% um on this bounce. I'm not saying from the wick lows either. I'm saying on the daily because that wick low obviously was manipulated due to exchange liquidity. You know, hype and Aster as well. Aas's performed really well. So hopefully my video here was, you know, able to help you guys and and and I was able to be there for you guys during what was a pretty difficult time. Um, you know, not shying away from the crisis, but, you know, being super proactive in trying to help guide you guys through that.
I think that's something I'm also proud of that we managed to do in the Discord. You know, while a lot of other um people were freaking out, I think all of the analysts uh really maintained a level head during the crisis. Student of life here says the team response to the Trump tweet was nothing short of amazing, especially considering Mars was asleep at the time. Mor and Fabian put out immediate content on first impression from technical and fundamentals. Shortly after, Paradise woke up and jumped on a stream to go through the charts. Then Mars woke up and immediately put together an outline of which alts to watch and discussed his DCA strategy. Some of this was not obvious, like how World Liberty became much more attractive after the price crashed by a third. It takes an experienced and articulate team to put out intelligent content off the cuff immediately after the biggest liquidation event in history. So, we got lots of these comments. Patrice also said, I'm sure a lot of members felt a bit more safe with your support. So, I'm I'm glad I could be there for you guys. And um I'm also glad that a lot of the buys that we got and I posted my full buy list. Uh at the time, you know, MNT I said I was adding more ENA adding more. A rotated Apex into AA that pair trade is slightly up. Uh B&M I got some fills on the wick. Rail got about 30% in obviously performed really well. Um fluid also got a DCA into and um a bunch of other updates as you can see here. So yeah, it it was a crazy 24 hours, but um luckily we're able to make some profits on the bounce despite, you know, not being able to enter at the peak or lows cuz I was actually asleep when all of the prices hit their wick lows.
So I guess a lot of you are now wondering if you didn't manage to get those entries, is now the time to buy? Is it too late to jump into the market? Obviously, we saw a strong response. We've seen a little bit of a sell-off pre- US open. So what is my outlook for the crypto market now and what would I be focusing on now? So, I guess the first thing we need to do here is do a quick recap of what actually happened. I know we talked about it a lot in the video that I did during the carnage, but I'll give a recap and I'll also explain where I think the market sits now after that event.
So, basically what happened is that the exchange liquidation engines broke down and we had an attack on the oracles uh where the oracles weren't feeding the right price data to the exchanges resulting in a lot of coins shooting through their flaws. We saw market makers pulling liquidity causing prices to go even lower. And because the engines were overloaded, a lot of people weren't actually able to step in to buy, protect their positions, manage their stop losses. So, we saw prices completely shoot through the floor uh on a lot of altcoins. As a result, most of the open interest in the market was completely wiped. Now, this came at a time when open interest for the market was pretty much steadily climbing up for the entire year. But I think liquidity in the market was not that great, especially on an elquid Friday night after Trump put out a bit of a China tariff scare into the market, which obviously caused equities to dive. So without going too much into speculation, I do feel like this was a manipulated move, potentially triggered by a party that was waiting for the right circumstance, potentially planning this for weeks or months, noticing that open interest on alts was building up, noticing that liquidity on a lot of alts versus their market caps was very thin, and then waited for the perfect moment. an illquid time in the market when Asia and Europe were asleep post US close at a time when we got you know a catalyst like uh Trump's tariff scare and they basically pulled the trigger on um on an attack essentially on the oracles on the exchanges um and thus causing this huge liquidation cascade. So that is my take on what happened. Obviously there's a lot of nuance there and we're probably going to get even more details on what happened um in future weeks.
But as a result we're sitting here right now with a huge decline in open interest across the market. Now, as bad as the event was and as devastating as it was um for a lot of people and uh my thoughts go out to you if you did suffer from this, especially if if you're holding leverage positions um and I personally know a lot of friends who you know lost a lot of money from this, as painful as it was, if you do want to look at a silver lining here, I can confidently say sitting here right now that the market structurally to me looks a lot healthier now. That we flushed a lot of the leverage out of the market. Like if you actually look at um how things look right now with funding rates significantly lower as you can see with the open interest in the market back down to levels not seen since June. I think we're in a much healthier position to resume this next leg of the bull market if it were to resume.
Now I watched Ran's video the other day and I think he put it really well. You basically have to put yourself in one of two camps right now. You know camp one is the bull market's over. In that case, you you should probably step away from crypto for a little bit because if the bull market's over, um either you're net shorting or if you think it's too risky to net short and time the top, you should look to sell and step away for a period of time. Camp two is that you think the bull market is still going to go ahead. You believe like me, I'm in this camp that the business cycle still has a bit of room to grow, that Bitcoin is still going to hit new highs, and thus there's still lots of upside in the crypto market as a downstream effect. If you're in that camp, then this was obviously a massive buying opportunity. Um, now if you're in camp one, I I don't I'm not going to fight you. I'm not going to disagree with you because there there's an argument to be made there. And the thing is, the market is all about probabilities. You know, you can never say with 100% confidence, the top is in or the top isn't in. It's all about working out with the current information that we have in this current moment of time what the probabilistic outcome of either scenario is.
Now, if I had to go out on a limb and guess right now, I'd say the probability that Bitcoin has topped for the cycle is probably around 25%. And I would say the probability it hasn't topped is probably 75%. I'm going to put out a macro video later in the week. But some of the reasons I have a 75% figure attached just because I think that global liquidity is still increasing. We're still seeing rates come down. The central banks haven't changed their tune going from an easing to a tightening environment. And structurally with equities and gold continuing to go up, I think the probabilistic outcome is that Bitcoin follows and makes a new high. Now, obviously this week, it's going to be really important to monitor Bitcoin's correlation to equities and gold. That'll tell us a little bit about the relative strength of the crypto sector as a whole. Um, but going back to my point before, if you believe we're in camp 2, then this was a massive buying opportunity and the open interest flush. Instead of viewing this as, you know, the final flush to end the cycle, which big flushes have historically marked the end of the cycle, you can look at it another way. You can say this was a flush to reset the cycle. And if it's a flush to reset the cycle, then this has done a very powerful thing. It's completely reset the market. It's made the market a lot healthier. It's actually giving the strong altcoins more room to run. Arguably, with all the bad leverage flushed out of the market, this actually sets the stage up for the good old coins to run even more. And the market also showed its hand a little bit. We saw the coins that had the fastest bid on the recovery. We're going to look at them today. I created a spreadsheet because these are the coins that are likely going to lead the next leg. We saw which narratives were really strong. We're seeing AI, for example, now some of those coins are performing really strongly. We saw RWA perform strongly. We'll talk about exactly what I'm doing later in the video regarding those coins. We saw select assets like Mantle, B&B, some of the exchanges perform really well. And then we saw some coins that were me that were kind of flat. Some of the majors really don't have a huge bid right now and although they recovered, they didn't recover massively. Those are the coins you probably want to avoid.
So, it's done a couple of powerful things. One, it's reset the market in terms of its, you know, health ratio and open interest and on funding. And two, it has basically given us a glimpse into the future. If Bitcoin does hit new highs, what narratives and what coins are going to outperform? And this has tangibly affected the way that I'm approaching my portfolio. Um, and during the dip, the reason I made all of the changes, and you can pause the video to look at these changes, I posted them yesterday in real time in the Discord, where you can get all this information live. The reason I made this change, these changes to my portfolio, was based on relative strength. I'm always trying to optimize my portfolio for expected value. So, expected return and risk adjusted return. So, opportunity cost is a massive factor in crypto. you have to make sure you're holding the right altcoins at any given moment in time based on your time horizon. And I think the changes I made set myself well to not only, you know, experience this pump um a little bit more than the previous assets I was I was overexposed to, but also potentially the next leg in the market. And we're going to discuss portfolio construction and everything once we continue going through the data here.
So that is what I make of this entire thing sitting here. Now, obviously, as I mentioned, there's, you know, camp one, which is going to say, um, you know, this is potentially marking the top of the bull. You know what? I'm open to that probability increasing because I'm not completely naive. But I would only increase that probability if I see the signs of that actually occurring. Um, if I see equity starting to make lower lows or if I see Bitcoin substantially decorrelating from equities or if I saw this bid slow down and start to roundtrip and slow bleed, then I'm open to adjusting things and I'll keep you updated the day that happens. But at the moment, I haven't seen it and I have no reason to adjust my probabilities and I have no reason to jump out of camp 2 into camp 1. Thus, that's why I took advantage of the dip and and decided to buy.
I just want to give you guys a reminder like the reason I've been preaching holding stables for, you know, the past few months. It's probably been a bit annoying for you to hear to be honest. Um, but I think this liquidation event has really highlighted why you need to do that. And you know, I've been around 50% cash, very aggressively in cash compared to some people for the majority of this year now, at least for the last six months. Now, I know for some people that figure totally understand if you're dealing with a smaller portfolio, maybe you would be closer to 20 to 30% and not 50%. It just depends how you play the game. It depends on your trading style. But nonetheless, I think it's been so important to hold some cash because the only way I was able to take advantage of some of these entries was by having cash. If I was fully in positions, um, I would just be chopping and changing and I wouldn't have the necessary mental fortitude and liquidity to take advantage of of an event like this. I even had some limit orders trigger as I mentioned in the Discord um, and and in the video that I did at the time on B&B. Now, I didn't quite get fills down here. I don't think anyone did, but I did around $900 to $1,000, and those entries are already up 30%. So the if you have liquidity, what you can do is you can set stink bids on spot across exchanges. And if you do get filled, you can end up getting some pretty nice entries during these events because we know that liquidation events in crypto are the best riskreward entries in the market by far. And only those with cash and only those with stable coins are those same thing. I'm, you know, for all intents and purposes, um, are the ones that actually able to capitalize on these events. Um, but but also goes the other way. in an uptrend, you also want liquidity to be able to take advantage of opportunities. I mean, even, you know, a few weeks ago with AA or other trades that have have been prevalent in the market, the B the B&B eco trade, some of the meme coins um that I've recently added are up today. Like, all of that stuff is only possible if you have enough stables to take advantage of new opportunities in the market. So, it's less about being defensive. People think, "Oh, Miles, you're holding 50% cash. You know, that's, you know, you're bearish or you're being too defensive." It's got nothing to do with that. It's actually aggressive. It's aggressive because I'm able to go in and strike when the iron's hot on an opportunity. Whilst other people are much slower to maneuver because they're dealing with these big overstretch and bulky portfolios. Um, and obviously on days like this, you know, you can bump your cash waiting down.
So, now let's talk about why we have had such a strong recovery. Tariffs were one of the reasons why the market dropped, but it wasn't the only reason. Trump's tariff statement against China on Truth Social on Friday, that was the trigger for the market um downturn. But as I mentioned before, there was likely bigger factors at play, likely broader market manipulation that was waiting for the right headline to send the market lower. But what it does highlight is the efficacy of the taco trade. If you don't know what the taco trade stands for, it's Trump always chickens out. So pretty much every time there's some tariff threat or something, you know, the market will drop, it'll get reactive, but then at some point it'll it'll be used as a negotiating tactic and it'll all be fine. pretty much what ended up happening with Vance yesterday coming out and softening the tone a little bit on tariffs. This is the reason why markets are bouncing. They were supposed to be down another 2 and a half% today. Now futures on the S&P are up 1% and crypto the reason why it's gone up is because it's front running this. So it really highlights that this is the most like reactive market in I think like really recent memory in terms of reactions to headlines. It's extremely reactionary. It's extremely headline driven. So when setting up your portfolio for this next period, you have to build something that is a little bit more structurally sound and not totally reliant on um on headlines. Because if you're constantly chopping in and out a and panicking and if you're, you know, you're really high in leverage, you're going to experience the detrimental effects, at least mentally, of these up and downs. because you know there'll be a statement it'll shock the market then there'll be a positive statement the market will go up and and this is really indicative of where we are in the cycle because we're in this last period also for equities you know that blowoff top period that's when the corrections actually their most severe same in crypto and the pumps are their most aggressive so you're going to experience this reflexivity on both sides when these headlines come out so I think it's a great environment for news traders if you're you know a very active trader and you're trading headlines you're going to really like this environment if you're quick. I mean, as soon as the Vance statement went out yesterday, you could have basically longed anything that looked strong and made money. And as soon as the tariff news came out, you pretty much could have short shorted any news on Friday night and made money. So, it's very good for news traders. But if you're not a news trader, cuz I know not all of you are, and I'll only do it on select occasions where I think I have an edge, then what you're better off doing, and we're going to go through portfolio construction now and look at some of the best alts to hold. You're better off creating a pretty resilient portfolio where you just add to these positions materially on dips. And because these are the positions with relative strength, you should be outperforming every time you get a pump. And that should mitigate some of the risk of holding during very volatile conditions.
So let's get into that now. How you can actually set up your portfolio to deal with these crazy swings in the market. Because the next few weeks in crypto, although we are seeing a bounce now, I still think they might be a bit choppy. Okay, I'm open to the fact Bitcoin could just head to new highs this week. I don't think it's probabilistic though. Events like this, I know we're seeing a strong bounce, but that's just the market getting back to mean reversion. Events like this do hurt retail confidence in crypto. You can't deny that. And I don't think alts are suddenly going to go into a crazy alt season. Now, it could be the max pain scenario. It's possible, but that's not my base case. My base case is that we, you know, experience um potentially more upside on Bitcoin, but the market will eventually find a level where it just chops and goes sideways for a few weeks and waits for the next headline. I think that's also a similar outcome on on equities as well considering how strong they've been. So due to that I think making sure you have the right portfolio construction right now is really important.
So the first point I want to make regarding portfolio construction is that the market right now is rewarding concentration over diversification. So something that I did over the weekend and I do this a lot but you know something I continuously do is just condense my portfolio down. You know I'm referencing the core holdings. I have a 20%, you know, risky part of my portfolio where I'm spraying and praying and I'm adding new altcoins. I've got a couple um altcoins later today that I'll share with you that are risky that are in that portfolio. But 80% the vast majority is concentrated into less than 10 assets. And even 10 assets is probably too many for the average person. Maybe you're better off just picking five high conviction assets that outperform me. The side effect of holding less assets in your core portfolio is that it's much easier to manage these positions, especially during headlines. So you can actually have invalidation levels and you can actually um actually pay attention and focus on the price action if you're holding five coins instead of holding 20 coins. If you're holding 20 coins, it's hard to keep up to date with the fundamentals and the technicals for those coins, especially in a headline driven environment. It's also much easier to maximize an edge when you're not diluting your size. So let's say you know you you you've been really bullish on Mantle. The issue is if you held mount alongside another 20 coins even though mantle has been underperforming, you actually diluted or you muted your profits because you were diversified into other stuff which likely hasn't been performing as well. So if you're serious about maximizing an edge in the market, you shouldn't dilute yourself. You should thus concentrate into the assets which are exhibiting relative strength and have positive flows as we discussed last week is a very important point behind tokconomics and also have strong narratives mind share and momentum. Momentum is a very important thing in crypto and it's largely driven by flow. So does the token have net inflow or net buying pressure versus net outflow. The reality is most coins generally aren't good holds. Now I'm not saying they aren't good trades. Most coins, by most I mean 99% outside of maybe 15 coins in the market in my opinion. Most coins aren't great holds right now. So there are even coins in the past which I held but I've sized down on them and I'm more than happy to get back into them if they start showing some strength. If they start to, you know, show positive signs, I'll hop back in, but I'll only do so on a trade. Like there are many narratives like AI AI agents to some extent. It's starting to wake up a bit now, but it definitely has been like that. gaming um the L1 trade like these are trades that you know I want to be a part of them if they come back but I'm not necessarily going to hold this stuff for months waiting for it to come back. So I think in general you only want to hold like a few coins that you know you're comfortable holding for longer term and then you can always if the right setup arises if you have like a nice daily or weekly flip on a coin you can long that coin and have invalidation and get exposure to the meat of the move. I think in crypto, you know, too often people are FOMO holding coins in case they pump. But the reality is if you really think, you know, a coin could pump big at a certain point, all you need to do as a trader or investor is catch the meat of the move. You don't need to pick the pico bottom. You don't need to sell the pico top. You just need to be in for the majority. And a lot of time waiting for confirmation to go in with size enables you to actually get in with the necessary conviction to capture the majority of the move. So I think going in with this framework you can make some adjustments to your portfolio that are going to enable you to thrive more in this environment uh which is a very choppy environment.
So as a practical next step what you can do is you want to use this bounce cuz we are seeing a little bit of a reprieve across markets at the moment to get out of any low conviction coins you have and into high conviction coins. A low conviction coin is a coin that you're holding that you don't really believe in or you don't really understand why you're holding it, but you're holding it just because you're experiencing FOMO. I had someone in my Discord today ask me about AVAC. They said, "I'm holding a lot of AVAC, but you know, I feel like I'm I'm I'm in mental prison with this coin because it's not really doing anything. It's moving sideways. It's underperforming, but I'm scared, you know, it's going to pump without me." And and what I basically said is you have to think of your AVAC position as a pair trade. So what you need to think of instead of AVAC in isolation like Avac versus the US dollar, think of AVAC versus other coins. So for example, over the next month or over the next few months, will Avac outperform Bitcoin? If the answer is yes, it's going to outperform Bitcoin, you're better off holding AVAC. If the answer is no, you're better off holding Bitcoin. And you can compare your coin to other coins. Will AVAC outperform Mantle? Will AVAC outperform B&B? Will Avac outperform Salana? If the answer's no, then you should be in these coins and not AVAC. So it's all crypto is all about opportunity cost. What you can also do is actually chart these to look if you're in an uptrend or a downtrend. So you can put in AVXUSDT colon Salana or Soul USDT and actually see what the chart looks like uh against a certain asset and that can help you make decisions as to whether you're in a downtrend um on a pair trade or in an uptrend. Pair trading is probably the number one way for you to shift your portfolio if you do need to clean it up from low conviction into high conviction. Right now, it's the worst time because it's so news-driven and because it's so choppy to be holding altcoins that you don't have conviction in. Like, you need to really believe in the narrative and the underlying flows and the underlying catalysts to be able to succeed in this next period in the market because in order to thrive in crypto, you need to survive. And the only way to survive is to actually have conviction. Um, so I think honestly today as an exercise, if you haven't done it already, because we're getting a bit of a bounce, go through every coin in your portfolio and do this. And what you'll probably realize, cuz I've realized this at many points, you're probably holding stuff you don't really believe in. And it's always better to make a move now than to wait. Because if you think something's going to outperform every single day that you're holding the underperforming coin, you're giving up opportunity cost. You're giving up gains on the other side.
So now, in light of this discussion, let's discuss some of the coins that are looking strong from a relative strength perspective. Now, I'm not saying ape into all of these coins, but it definitely gives you a window of insight as to what is outperforming. The first category of tokens that are outperforming on the bounce, and this is based on data. We we tracked the performance post dump on a lot of coins um are B&B and Mantle, the exchange tokens. The exchange token narrative, you you also got BitGet, you've also got OKB. This is a very hot narrative right now. B&B is absolutely insane. Um, obviously I wouldn't be buying right now into resistance, but if this does get dips and you know, this may very well be like the mean reversion before the next dip. We actually don't know. We just need to keep our eye on the market. I wouldn't be buying right now, but you know, if it does put in a higher low like this, you could look to buy in on the next dip. Um, mantle is already giving you a bit of a dip right now. If you do get uh potentially an entry down in this zone, this could be one that you look at adding down here in this zone especially. I like like a $180 to $2. I actually did add some down here. It's already been a nice trade I'm going to hold for the time being, but that is um potentially a trade that you can look at. And I do think the exchange tokens, they have a bit more longevity due to the fact that they have token sync. So if you guys don't know, like Bybit's the second biggest exchange in crypto. If you want to like get certain VIP statuses, if you want to boost rewards, if you want to get fee discounts, you need to hold and stake MNT. And it's not like extremely liquid of a token. So with all of these token syncs, it's just pushing price higher and higher and higher. That's why it's part of my core portfolio right now.
Uh the next category that responded really well are the per dexes. Now the perex narrative is interesting because uh on one hand it was extremely bullish what happened on Friday night because the perp dexes actually held up in many cases better than the centralized exchanges. So that is a huge vote of confidence for onchain. So your natural reaction might be all right, we should long perexes. The narrative is stronger than ever. I would agree if it weren't for the fact that the very same people that use the perp dexes are also the ones the perp traders that got wrecked on the centralized exchanges. So I think this potentially decreases volume for the coming weeks which makes the buyback and the burn effect slightly more muted and there's like a reflexive thing at play there where you know if Hyperlid's making less money then the valuation theoretically should go down if you want to value it in terms of PE ratio versus earnings. So, it's it's kind you kind of have these two counter forces. Um, personally, I I did buy some master. You probably saw that in the discord update. I didn't buy hyper liquid because I didn't want to overindex on dexes. But personally, I think the better trade here is looking at DeFi. Why? Because DeFi doesn't suffer from the same, you know, per traders getting wrecked, potential decrease in per volume effect that the perplexes are, but it still benefits from the narrative of onchain being the future. So I think slightly safer longs or at least longs with more upside in my opinion are the protocols um the D5 protocols that actually uh performed well. Obviously they weren't per so most of them performed well and are critical infrastructure for uh DeFi. So obviously you've got Ave as a higher cap one. ENA this is something that I added in in the dump. Fluid this is another very strong coin um that I added. I I shared this in Discord at the time as well. This is um this is doing quite well already. Cake, this is obviously the leading Binance DEX. It can be a potential catchup play to B&B. There's also many others as well. Bit of Alpha for you. I'm very interested in yield basis that's going to be launching soon that unlocks yield for Bitcoin and it's by the same founder of Curve CRV. I also think Curve is a decent coin to hold, but that one's going to be very interesting. It was a very hyped sale, but because the market's a bit shaky now, potentially some of the investors will look to exit on launch and you could get a really nice entry on launch. So, of course, I'll keep you updated with that, but I'll be watching the yield basis launch quite closely. Also, over the next coming days, um, watch the Monad launch. There could be some interesting trades on Monad. I'm not necessarily going to be aping it on launch and holding spot, but I'm interested potentially for some trades cuz I know a lot of people are going to be focusing on it. So, I think DeFi for me is compelling.
And then going down the list a little bit, you have some other players which I think are compelling. Privacy is definitely a big one. We've seen ZEC absolutely pump. Now, I'm not a huge fan of ZC um Zcash, but if you wanted to trade down the risk curve a little bit, I think privacy is definitely a narrative which is hot right now. Rail is actually the top one that I added during the dip. I shared this on the show. I shared this on the Discord. It's already up quite nicely, I think, since the time um of that video. It's up like 50%. Earlier today, it was up almost um 58%. That's one that I would be looking at. This is Vitalik's project that he backed that um that's building ZK infrastructure that Ethereum is going to be leveraging. Pump as well is an interesting one because it's around the ICO price, but I still think over like a multi-week or a multi-month time frame, if you think the creator streaming narrative is going to continue to grow and even if you think memes are going to come back at some point, Pump is probably the better bet than longing individual memes right now because individual memes um are are risky. you're kind of, you're kind of, you have to pinpoint a singular meme. Whereas pump can expose you to the volume, like a pick and shuffle of that entire sector. So, I haven't actually added this yet, but this is one like this. Watch this isn't just relevant today. This kind of stuff is going to be relevant on the next dip, which may very well be coming in the next week. Like we we don't know the market's going to be choppy. So, your MMO right now is to build the strongest, most concentrated portfolio possible that you're confident in on dips with, let's say, 80% like your core portfolio. And then the other 20% could be spray and prey. And that's where I'll get in a minute into some of the riskier coins that I'm adding in that category. So my spray and prey portfolio, I give myself license to hold like 20 30 coins. They're not core holdings. I'm not managing them as aggressively. The 80% I'm watching like a hawk and I'm, you know, implementing very strong risk management.
So this segus into the uh category that we skipped over. It's AI. Um note TOA and Athere are in here, but another AI coin that I hold is Worldcoin that I'm still quite bullish on. Um, Tao has its hinging coming up and that is that's been an extremely bullish narrative right now. So, the hing's coming in December. Price action looks good. It actually has a 3-day daily, weekly, key level flip. It hasn't closed right now, but it looks like it does potentially want to close. So, I think Tower is a good one. Um, look, given the fact it's already rallied a lot, I probably wouldn't ape now, I think you're better off waiting. Like, I don't know if riskreward today, by the way, is great for buying. Like, I definitely think when I did this video was good for buying. when I post in Discord yesterday was good for buying. Now, I think you're better off just chilling out. Be a little patient and focus on portfolio construction and focus on setting yourself up for future buys. That's what I would actually be doing today. But this is a very important preparation period. And we know that preparation in crypto is arguably just as important as execution because without preparation, how are you expecting to execute?
Going on from Tao, I would definitely cuz you can see on Cookie here, Tao is the number one coin right now for sentiment and mind share. I would be looking at AI again. Um, there's some interesting stuff happening with NIA protocol. I haven't entered yet cuz I'll be trading this one. I don't want to I don't want to bog myself down with too many holdings. Like there are many coins which I like but I'm just not holding because I I don't want to bog myself down. So I have, you know, tow I have an AIA position and a world coin position for me. That's enough AI exposure in my core portfolio. And then for the rest of it, I'm either going with riskier barber plays in my risky portfolio or I'm going to be trading these coins. So near I think I'm looking for trading setups on. But if you move down the risk curve, there are some interesting AI projects that you could potentially look to speculate on if you think TOAO is going to trigger the next run for AI. I think with AI, it's been frustrating, but it's only a matter of time and the tow hinging may very well be the trigger for it. Um, instead of trying to bet on AI agents though, which aren't as related to TA, I'm starting by looking in the TAW ecosystem. One that I highlighted uh a couple of weeks ago that's now giving you another decent entry after it had a big move is Inspect. Um, this actually bounced quite nicely off the floor. If you don't know what Inspect does, it's essentially the DeFi engine for subnets. They also have one of the biggest mining liquidity pools on TA. So if you want a barbell exposure to the TA ecosystem, like if you want to move down the risk curve, this is very risky by the way. This obviously goes in the risky section of your portfolio cuz it's only 9 mil market cap, but this is one that I have exposure to and I think um you can consider this kind of stuff. So you know how I like to play my ecosystem holdings. If I'm holding TOA, I I'll tend to go like 80 90% in the base token and then I can have a bit of fun with the other 10%. And it's a strategy that I use with Salana. Um, even Hyperlquid and Hyper EVM. Like you can kind of spray and pray for some higher beta exposure that okay, if TOW went back to all-time high, the subnets and some of the strongest beta plays are probably going to go up more than TOAW, but they're also much lower in market cap, so they carry a lot more risk, so you can't put the same size into them. But Inspect is one to look into if you're interested in a TA beta play. And then I'm looking at the downstream effects of like, okay, if this did trigger an AI run, what are some other AI tokens that I can at least start looking at accumulating and putting in my, you know, risky portfolio as um kind of dart throws to give myself some exposure to that narrative if it takes off. One of them that I found recently that I really like is Coral Protocol. Coral is one of the top AI agent infrastructure plays on Salana. What I like about it is the fact that it didn't launch during the big AI wave um in January and get absolutely wrecked. It launched a little bit later and price action has been really res resilient. So if you look at most other AI agents, they literally had a huge pump and then they went like down to zero. They've all bled out. This is actually, as you can see, making higher lows and if the trend continues, potentially higher highs uh and has been consolidating for the entire year. This is a good sign to me alongside the fact it doesn't have a lot of dilution. Um I recommend reading into what it does. is actually super interesting. They're building an AI communication layer and a bunch of other um onchain infra to help other AI agents talk to each other on chain. And they just did a hackathon in New York City where they had 3,000 devs building 130 apps using reusable AI agents. So, um I'm looking for protocols right now where there are real doxed founders behind them in AI. Like no more, you know, founders hiding behind their protocol. Like I'm looking for proper builders, proper doxed founders that are actually building in ecosystems that I believe in like Salana, like Sooie. These are the most interesting players for me and that's why it stood out versus others. Obviously, once again, it's high risk, but I'm just giving you guys a window into my thinking, you know, trying to move down the risk curve and at least have these projects identified so when AI starts waking up when it wakes up, um, you know, I'm positioned in the right stuff or at least I'm aware of the right stuff that's going on. So, that's one that I've been adding slowly as well. Um, but I think in terms of relative strength, this is probably the main list. And I know there are many more. Like if you go into Coin Gecko and you go onto the main homepage and you sort by 24-hour performance, there's COI been performing really well. Render had a strong bounce. Pudgy, I like uh this is another one that I mentioned in my buy list. So there's lots of tokens that are doing well, but I think you really have to concentrate and look on look at the core narratives which are going to outperform in this next leg of the bull run and have confluence with the fact that they outperformed on this dip. And I think exchange tokens, dexes, defi, AI, and privacy. Um, and then Pump Fund being like part of the revenue buyback meta. I think these these are the types of things to be looking into. Obviously throughout the week, we'll get into more specifics and I'll keep you updated as the market evolves because it's likely going to be um a pretty volatile week, but hopefully you can take some of this portfolio construction stuff into your stride to actually help you outperform in this next period in the market.
So, I want to thank all of you for supporting me and watching my content. It was a crazy weekend, but um hopefully I was able to help guide you guys through it and uh I think we're going to come out the other end even stronger if I am correct. And you know, camp 2, which is the continuation of the bull market camp, is right, then this is going to be a massive asymmetric opportunity. I I do believe. Um, you just have to be a bit of patient for resolution to occur here. All right, see you in the next video. Have a lovely rest of your day. Peace out.