Six Capital Insider: Your Monthly Review
Welcome to our March newsletter! This month saw another lot happening in the field of Web3 and blockchain technology. In this edition, we are excited to share some important updates and successes with you and show how we continue to seize new opportunities to make our Core Fundperform.
- Core Fund
- Banking Crisis
- Arbitrum Airdrop
On February 1st, 2023, Six Capital successfully launched the Core Fund. The fund launch went smoothly, with the first investors quickly joining, followed by an excellent first month performance. Building up the liquidity base quickly provided an opportunity to optimize the purchased fund assets through on-chain staking. This form of staking keeps the assets liquid, using only decentralized protocols to mitigate third-party risk.
The launch of the Core Fund and its unique investment strategy has been extremely successful, and we are very satisfied with its performance so far. The current standing of the fund is at a 4,37% return since launch, with a peak achieved return of 8,64%. We continue to refine our investment strategies and strive for optimal returns.
In March, we witnessed a reversal after a year ofpersistent interest rate hikes by both the US and European central banks. This led to panic among savers, who emptied their accounts in masses. Several banks teetered on the brink of bankruptcy, while some large banks were even officially declared bankrupt. Nevertheless, central banks continue to raise interest rates, all in an attempt to curb inflation.
It is somewhat ironic that the banking crisis of 2008 already showed that the current monetary system is not infallible. As a response, a digital currency was introduced at the time: an untouchable, decentralized solution that sustains itself thanks to its users.
This sounds like a plausible alternative, doesn’t it?
The project, called Bitcoin, was the first blockchain-based initiative and has been around for almost 15 years. It is therefore not surprising that the value of Bitcoin increases when trust in central and commercial banks decreases.
Bitcoin was initiated as a monetary solution and is the largest blockchain project by market capitalization. Ethereum ranks second and is a technology for building apps, managing assets, executing transactions, and communication on the blockchain. Ethereum is also much more energy-efficient than Bitcoin. About 32,000 times more energy is consumed per Bitcoin transaction than per Ethereum transaction.
Despite the enormous popularity, innovation, and efficiency of Ethereum, its increasing use leads to higher costs. This leads to a turning point where transactions become too expensive. As a solution, the scalability technology Arbitrum has been introduced.
In this monthly update, we want to focus not only on the Core Fund but also on this technical aspect. The Arbitrum Airdrop in March is an excellent example of this. An airdrop is an event where users, after verifying themselves, try out a new blockchain project and receive tokens as a reward.
As a new project (Arbitrum), it must first be tested and requires users in the new ecosystem. The testing phases are over, and all participants who contributed are rewarded through an airdrop. To quantify the impact of the airdrop, we look at some numbers:
- Number of participants eligible to claim :621.135
- Number of tokens distributed: 1,162,209,986 ARB tokens.
- Number of tokens distributed in $: $1.352.172.057,3978
- Price per ARB token: $1,1643 (price on April 4, 2023)
- Average yield of airdrop per participant: $2.178,53
The tokens not only have an extrinsic value of approximately $1.16 per piece, but also an intrinsic value that provides control and voting rights within the Arbitrum ecosystem.
The Arbitrum airdrop is a significant airdrop, which is one of the largest in the industry and demonstrates that the project enjoys a lot of trust. The team behind the Core Fund is knowledgeable in identifying such opportunities early on. Thanks to their thorough knowledge and experience, they can notice interesting developments and trends.