Thread by @jimbobkos

I’ve finally finished my 4-month pilgrimage of accumulating $RUNE. I see four simple drivers for holding a position in @thorchain_org which are adaptions from my position in @synthetix_io

Single chain chaosnet is close and multi-chain chaosnet Q4! Gametime 🚀🚀

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1. Tokeneconomics – There is some form of intrinsic value (IV) to $RUNE, being multiples of the value locked within the network. More value locked = increase in $RUNE IV. How this plays out in free-markets is still untested, although the presence of determinism is attractive.

SNX adaption: SNX has IV by fees being generated in the Synthetix network. Increase in trading fees = increase in IV of $SNX

2. Team and community – Transparent communication of both weekly dev updates and monthly treasury reports. With a strong community builds strong network effects, creating exponential – not linear – coverage.

SNX adaption: The SNX project has the strongest team I’ve seen within crypto. Utilising a rapid iterative model with significant consensus and discussion with its community. Byproduct of this is the spawning of one of the strongest community’s in crypto.

h/t @kaiynne & SNX team

3. Novel idea to attract users: AMM = Not novel, many exist. X-Chain+Non-Custodial AMM = Novel. I typically won’t bet large on anything that isn’t novel, there is execution risk but I’d rather this R/R than invest in a project that can superseded by lacking differentiation

SNX adaption: A peer to contract trading platform that allows zero-slippage did not exist before Synthetix, bleeding edge concept which means instant exposures can be gained WITHOUT an orderbook!

h/t to the ultimate coding beasts @justinjmoses @clinton_ennis @Jacko_n_co

4. Low liquidity – Financial stigma exists about low liquidity, misleading investors to avoid good opps. Alpha can be harvested if you buy small parcels over extended periods. On the basis the project is valuable, liquidity will come. Even @ethereum had low liquidity

h/t to @iancassel for eloquently articulating this concept

h/t to @coingecko for the data

Since doing deep DD into both $SNX and $RUNE, the process of taking larger bets on a smaller number of positions has merit. Diversifying is good risk management, but not when you need that risk to achieve supernormal profits. Looking forward to finding the next large bet 👀