Market Update

The dramatic sell down in cryptoassets over the past few days is not the first, and it will certainly not be the last, market event of its kind. It is important to note that these events have not occurred in isolation and are a result of a confluence of several factors, including broader global macroeconomic trends that have cascaded down to rattle risk appetite among investors. Short term sell-offs can be driven by numerous factors, with periodic, and the sometimes irrational, behaviour of market participants driving prices. It is not difficult to find historical examples of this herd-like behaviour across all types of markets.

The Nasdaq 100 Index delivered -41.9% in 2008 due to the global financial crisis, only to return +53.5% and +19.2% in 2009 and 2010 respectively. Cryptoassets have been through their own market gyrations. Early investors in bitcoin need only look at the twin crashes in the asset’s price in 2013 for evidence of how quickly sentiment can change. It is clear from these events that negative, as well as positive, extrapolation and sentiment, are inherently temporal in nature. While we are cautious to make any predictions, these are great examples of how quickly markets can reverse losses, and gains for that matter.

It is from this fact that great investors gain their edge. While less sophisticated investors (typically retail traders looking for short-term gains) are likely to sell in times of distress; institutional investors, with long time horizons and ample deployable capital, are willing to purchase these assets at a significant discount during these periods. This has proved to be a tried and tested method for generating long-term gains, such was the case for those with the stomach to have bought into the Nasdaq 100 going into 2009. Given this, it is important to remember that investing is a long-term pursuit in the face of short-term noise. Investors should avoid emotional decisions that have the potential to cause permanent capital loss.

Kyle Cox,

Senior Investment Analyst

Invictus Education: Learn to Invest like a Crypto VC

“Only invest in what you understand” is a common response when asking for investment advice. Unfortunately when it comes to the crypto market, one of the greatest barriers to entry is education. At Invictus Capital we believe that it is first necessary to get people to understand cryptoassets and the problems they can solve before cryptoassets will achieve wider adoption.

We, therefore, created an introductory course for people looking for a framework for investing in cryptoassets. This course is not a trading course nor is it a course that delves very deeply into blockchain technology. Instead, it is a course that will give you the tools to evaluate crypto investments with a long-term outlook.

The course is brought to you by the fund managers and analysts that manage the Invictus venture capital fund, Hyperion. The Invictus team has successfully raised over $50m for two separate tokenized funds and has extensive experience in both fundraising and investing. The Hyperion Fund analysts have invested in 9 blockchain projects to date and have evaluated countless other projects. The course has therefore been developed on the back of this experience and market insights which the team is now looking to share with others.