Hi, this is my first draft post about indexcoop treasury.
On Behalf of shareholders.
Hi, good afternoon. I I know you saw what is happening in market situations like the Silicon Valley bank, Silvergate, USDC depegging, and everything else. Indexcoop’s Stables Treasury has most of the DAI and USDC, worth millions of dollars. We shouldn’t be celebrating if the pegged returns to $1.00, as the Federal Reserve will build new digital dollars and small banks won’t be bailed out. I think it’s best we change this strategy to avoid a black swan event. The Federal Reserve won’t do a pivot or bailout until interest rates are cut. This could have an even worse effect on the stock market and crypto market in the coming weeks or months. It almost killed Indexcoop’s treasury. USDC went from $1.00 to $0.80 and is now at $0.98. Hoping USDC returns to $1.00 is gambling; the high risk and high reward ratio is not good here and it is becoming C-grade from +A-grade.
There is a solution. I think it’s best to convert to ETH from Indexcoop’s stablecoin treasury when ETH hits $400 to $700 around. We should do this when the time is right and investors are out of powder, like during the 2020 crash event when there was no chance to buy at an average of $100 for ETH. Now Binance has bought ETH, BTC, and other assets for one billion dollars from BUSD stablecoins. I believe they made the wrong move and a very early decision, as it will create a black swan event if the stock market crashes due to the Federal Reserve and global problems. Binance will lose -50% to -70% of their value. It reminds me of Caroline’s tweet, “If you’re looking to minimize the market impact on your FTT sales? Alameda will happily buy it from you today at $22.” Guess what? It ended up with a zero price. We should wait, like the man last standing who Blackrock saved during the 2008 stock market crash event. The US government contacted Blackrock to clean up the mess from the crisis and manage the toxic assets that were owned by drums like Lehman Brothers, Bear Stearns, and others. Indexcoop’s vision is similar to Blackrock’s.
I know this is an unpopular option, but it is the best forward.
Indexcoop’s treasury is around $7m. $7 million can turn into $84,000,000 at ATH from buying $400 ETH average. The Indexcoop team can make a decision about entering ETH price, be it $400, $500, $600, or $700. It’s your call.
I did a quick math:
Buying $400 ETH average at $7 million amounts → ATH= $84,000,000 ($77 million gross profits)
$400-> ATH= $84m.
$500-> ATH= $67m
$600-> ATH= $56m
$700-> ATH = $48m
Indexcoop had a runway of around 27 months. Buying a cheaper ETH will increase Indexcoop’s runway; it could go up to 200-500 months and free up risk. The stock market crash will happen if the Federal Reserve wants to cut interest rates due to collapsing banks and other problems. ETH is $1670 right now (13/3/2023). If ETH is heading below $1000, we will see lots of liquidations worth billions of dollars. This is an opportunity for Indexcoop.
What do you think!
Sorry for my bad engilsh; English is not my first language.
Discourse: I have had a $INDEX heavy bag and I have been watching index coop’s growth for 800 days.
Twitter handle: @Marchanthedge