Arca recently submitted a letter to the @gnosisPM Board of Directors requesting a formal response to our proposal (now 6 months old) that Gnosis tender for all $GNO tokens. We have also requested a seat on the BOD to ensure progress.
A thread and the actual letter below 👇
We are using Twitter to get a response because the @gnosisPM Board of Directors refuses to do their job. We hope talking publicly will empower other $GNO token holders to continue to demand action.
The BODs' job includes "accounting to the stakeholders for the organization's performance".
ALL STAKEHOLDERS! Not just shareholders.
"Stakeholders" in digital assets includes token holders. The lack of governance, communication & accountability by the BOD of Gnosis is flat out unacceptable.
The lack of response to a major token holders requests is simply immature.
@arca has laid out its detailed case for why Gnosis needs to tender for $GNO tokens multiple times.
The fact that senior members of @Consensys do not take these allegations seriously is unacceptable from an industry leader and sets a terrible precedent for others in this space.
Reminder, at today's $ETH prices, the @gnosisPM balance sheet is worth $77 million = $169 per outstanding $GNO token.
$GNO trades at $61 (a 64% discount to book value)!
Below is the actual letter that Arca sent to the BOD 3 weeks ago. In typical @gnosisPM fashion, we have yet to hear a response:
Supposedly, @koeppelmann & @gnosisPM will finally address the problems with the $GNO token next week.
As has been the case from day 1 of our complaints, Arca will happily withdraw our tender offer plan IF, and only if, a better comprehensive plan is released by Gnosis.
However, if @koeppelmann & @gnosisPM continue to overpromise & underdeliver, we will continue to ask all $GNO holders to join us in demanding that the Board of Directors take control of this situation, & grant Arca a seat on the BOD to represent token holders that have no voice.
We will continue to represent all $GNO token holders in this fight until @gnosisPM addresses our concerns, and returns value to GNO holders. We are not alone.
September 21: We wrote an op-ed for @CoinDesk explaining why investor involvement in governance and transparency is so important for the future of this industry.
Nexus Mutual ($WNXM) is the most undervalued token in digital assets & it's not even close. Trades at just a $23mm net market cap despite being one of the most utilized #DeFi projects.
Digital asset builders are trying to build the car while simultaneously driving it. Fine in theory, but in reality, not laying key pieces of infrastructure early on can stymie growth & innovation.
Insurance is a sleepy, boring business, but insurance in the case of #DeFi is also crucial to an ecosystem that is still being built yet already holds a massive amount of assets and is still growing (current DeFi TVL: $43 Billion).
Anyone want to buy $BTC at a 47% discount to current prices? Here's how you can do it.
I can't believe I'm saying this, but $EOS might actually be the best risk/reward in digital assets right now due to their massive #Bitcoin holdings.
Thread time 👇
First, let's talk risk/reward. Over the past 2 years, $EOS is the only well-known token other than $XRP that is not higher. In fact, it has underperformed by a LOT.
Even other zombie projects are up 300-1000%
That's a nice start for an investment -- low downside, relatively
Next, the math:
Block One owns 140,000 $BTC. At $2.77, the market cap of $EOS is $2.6 bn, which is only 47% of the value of their BTC holdings.
That means by buying $EOS, you are actually buying $BTC at $18,771. Huge discount.
Here's the problem. #DeFi can be valued based on cash flows. $BTC $ETH & layer 1s can not be. When something can be valued, it also creates a theoretical ceiling. That's why VCs often tell startups not to generate revenue - b/c once you have revenue, the valuation model changes.
That's why 80% of the Top 25 digital assets by market cap are such a joke, dominated by Layer 1s and cryptocurrencies with almost no chance of success - because this industry was founded by a VC mentality of "huge upside, low probability of success, but no way to prove me wrong"
$ETH and $BTC have already proven to be successful -- whether they are cheap or expensive is hard to know, but they have undoubtedly succeeded. Many DeFi tokens are definitely cheap, but price gains are somewhat limited by current revenues or multiples on future revenues.
Anyone like great risk/reward setups w/ high upside, low downside & tangible floor value? @NexusMutual $NXM $WNXM
WNXM now trades at a NEGATIVE net market cap. So how did NXM go negative?
A lesson in book value & optionality 👇
2) First, h/t to @DegenSpartan who nailed the "sell call". Investors who focused on $NXM price & the MCR completely misunderstood how Nexus & the NXM token works (myself included).
But the short thesis is completely over and it's now an "all-in buy"
Nexus Mutual, like all insurance companies, has to keep a certain amount of capital in their pool to pay out future claims. What they do with this capital is how insurance companies make money.
The growth in #Bitcoin products like the CME futures and Grayscale's trusts shows that institutions are here already, but these products have limitations, including not being open during volatile trading hours. This manifested itself during Thanksgiving.
Five random Digital Asset and #Bitcoin thoughts heading into the weekend
👇
1) Actively managed hedge funds and passive indexes built around high allocations to $BTC have a very short shelf-life. Investors now have the knowledge & means to buy $BTC themselves. Very soon, investors will specifically seek out digital asset HF strategies that own $0 in BTC.
2) Decentralized governance is less about ideology or risk transfer, & more about capitalism. Historically, there has been nothing in digital assets worth governing, but now, as #DeFi protocols are generating real revenues, there is something worth fighting over.