The Institutional Cycle Has Started...
Crypto mass adoption is coming, let's get ready!
Dear friends,
Personally I closed off a bit of a rollercoaster period privately which delayed this update - I’m sorry for the wait and I appreciate your patience - you will need it to make it in this market. No worries though, there are enough chances in this market to take advantage of, so let’s dive straight in!
Institutions Are Coming!
The media have been throwing the term ‘crypto crackdown’ in our faces a few times over in the last months. The SEC has been actively enforcing with a more strict approach to crypto exchanges and projects. The reason for this simple: the big boys (institutions) are coming!
In short, we are about to see an influx of new capital (institutional investors), products (Blackrock’s ETF, Futures, institutional graded DeFi or CeFi and CBDC’s) - all of them will be regulated and compliant - thus, the SEC (amongst others) want to see the same level of compliance across the crypto market. Therefore, the time of crypto cowboys (how I call them) is over and shady crypto projects will eventually bleed out to regulatory scrutiny.
The bad news is, some of your favourite crypto projects might not survive, the good news is, a massive amount of capital will flow in and compliant / fundamentally strong projects will thrive. Isn’t this exactly the type of projects we have been looking for and isn’t this exactly what we have been expecting to happen ever since the first 10x Club update?
Yes it is. So let’s dive into our portfolio, clean up a little and double down.
Quant Network (QNT)
Our biggest holding, Quant Network (QNT) is one of the biggest winners in all of this. Not only did they just announce a successful CBDC pilot with project Rosalind, they have also officially launched Overledger and in the background a LIVE(!) wholesale CBDC is about to be launched at SIX Digital Exchange (SDX):
"This is not just an experiment, it will be real money equivalent to bank reserves and the objective is to test real transactions with market participants," Chairman Thomas Jordan said at the Point Zero Forum.
We don’t have a definite confirmation that Quant is involved but we do know that Quant has been mentioned by SDX a few times - even in a tweet about interoperability which got deleted shortly after. Mind you, Quant offers white label packages, effectively selling their software to companies to use it as ‘their own’.
Lastly, there’s a partnership with UST, a big SaaS player that helps with infrastructure for financial services, digital identity and Healthcare. At first glance, it looks like they will be assisting Quant with settlement services, allowing corporations to connect their existing infrastructure to crypto with Overledger and settle using UST.