Portfolio Transactions (May 2022)

Updates for my Portfolio for May 2022

Things have begun to settle down and I can continue with life. For my side project, I am still waiting for the surrounding works to end, sigh.

• No transactions for May 2022

That's all for my money for now. 

I recently got burned pretty badly from the UST/Luna event on May. I thought I would write to share my thoughts. 

 

Back then, when I was looking at UST and researching about it, I promptly forgot that I had a rule that I avoided algo stablecoins as most of them fail and sticking only to fiat backed stablecoins. So I stupidly swapped stablecoins of my smaller account to UST. And less than a week after that, UST unpegged and chaos ensured. 

 

I was kinda indecisive as I understood that wide swings are common in crypto and seeing the return to 0.8 exchange rate kinda gave me hope that it would repeg. 

 

Looking back, if a stablecoin falls by 20%, perhaps it should be time to cut losses as perhaps it shouldn't be that drastic. 

 

The depegging event started tk spread across the crypto markets, giving me the Global/Asian Financial Crisis vibes. I ended up cutting loss of 75% on half of my UST position, while the other half dropped to around a >90% loss (I kept it since it is pretty much zero anyway and having poor liquidity, so might as well see if there's a miracle). 

 

As this ensued, I also realised I have multiple balance transfers due over the next few months. My trader mindset kicked in and asked, how do I survive? The answer was, will I be in debt? So I tabulated all the outstanding balance transfers in the next few months and compared it to the current balance of all my stablecoins. After realising that by liquidating all my stablecoins, I was able to cover the immediate loans gave me relief. 

 

In view of the crypto downward spiral, I decided to liquidate all and convert them back to fiat and return those funds into my bank account just in case more troubles lie ahead. 

 

Remembering the history of AFC and GFC, I was thankful to have capped my maximum leverage and that as my stablecoins were farming yield by means of loans, I was worried about defaults and funds being frozen. 

 

This event also made me remember why central governance and regulation is important too as it works both ways. 

 

I currently Terra has airdropped new UST tokens, which is ~5% of the total value remaining. Waiting on means to swap them out. For reference, the total loss realised+unrealised is estimated to be a year of savings. 

 

Also, I recently saw that there was police reports made against the CEO of Terra and looping in some bloggers regarding Luna as a scam. 

I always believe that it is always the reader who will make the final decision to pull the trigger after conducting his/her due diligence. Articles are written with the authors' knowledge but the authors can never know everything. This is also the kind of thing why I am hesitant to share freely for many issues too. 

 

That being said, the US market is plunging quite significantly, might get some opportunities but I am worried I run out of cash as my current cash balance is rather low. I am thinking of cutting a few positions (maybe VEEV and MCO) to raise cash and swap.

I have place a small % of my net worth in crypto-assets.

Conclusion

My portfolio YTD is now -71.6%, with the long term XIRR at 0%. It is pretty humbling to see a mistake like that wipe out years of performance.

My cash position is currently at about 3%. Will wait for cash position to accumulate while waiting. I am pretty much almost deleveraged to accumulate have capital to capitalise on opportunities. Let's hope I can get my numbers back on track.

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• Portfolio Transactions Update (December 2021)
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