Tweet

Barrelhound (🌴,🌴) 🐧

Jan 31 • 34 tweets • 17 min read

For me Crypto is about asymmetrical opportunities.
This thread is not about price predictions, I have no crystal ball. All you can do is have good risk management and take those assymetrical set-ups.
Here's a thread explaining why I think this is the case for $KLIMA.
(🧵,🧵)

This will be a monster thread, with tons of alfa and a collection of many resources at the end if you want to understand Klima more from a technical perspective.
LFG!

All metrics from this thread can be checked here:
dune.xyz/Cujowolf/Klima…

If this is your first time hearing about KLIMA or OHM and you have no idea about the mechanics behind the protocol, how the prisoner's dilemma & (3,3), (🌳,🌳) fits into all this, I suggest you read these first:
medium.com/bankless-dao/t…

hristovbz.medium.com/klima-dao-trea…

Now let's talk about the elephant in the room.
Price down bad. Is the project dead?

Why is price down? Can devs do something?
Klima launched, right as OHM was taking its spot in the limelight. Its launch was massively overhyped, so many moonboys stepped in who had no idea how the protocol worked. I make my case why weak hands caused the selling pressure

Looking at these metrics we can see that most of the selling pressure didn't come from pKLIMA (earliest investors, Mark Cuban holds a bunch of pklima for example). 8.4% came from the IDO, prolly some more came from LBP. All the rest would be late buyers

dune.xyz/Brian33/pKLIMA…

If this is your first time hearing about pKLIMA, don't believe the FUD that's out there regarding this.
It basically is klima given to early investors who took a massive risk and can only redeem their pklima for klima over time as supply increases.

klimadao.medium.com/pklima-alignin…

The next graph will also confirm this. The marketcap traded far above the treasury value after launch. Effectively all the crypto degens came out of the woodwork to speculate on the future price of klima, whilst there was no underlying backing (yet).

Klima has contracted since then, the treasury is currently valued at 112million$, Klima's marketcap is 110million$.
Think about that for a second..
The market currently doesn't price in any premium, or any future value. Now we will determine if that's really a fair valuation.

So now that we have those things out of the way, let's talk about the good stuff, my core thesis, which is very much intact. And in my opinion, stronger than ever:

" Analysts have estimated the global carbon credit market could be worth $US550 billion by 2050"

afr.com/companies/ener…

McKinsey estimates that "demand for carbon credits could increase by a factor of 15 or more by 2030 and up to a factor of 100 by 2050."

mckinsey.com/business-funct…

Two types of carbon markets: Compliance and Voluntary.
Compliance market (CCM)= must have (countries)
Voluntary carbon market (VCM)= nice to have (business, people)
Klima aims to work with both (eventually). Right now it’s just VCM, as the CCM doesn’t have on-chain credits (yet)

https://twitter.com/diamondhandsKM/status/1471538331976486912?s=20

Some alfa:
Klima is currently in talks with Worldbank & UN to get carbon credits that are currently being moved to the blockchain, in its treasury (ITMO’s). That’s huge, as there will be legally forced buy pressure on the carbon market.

https://twitter.com/diamondhandsKM/status/1471538331976486912?s=20

@KlimaDAO

In just over 3 months @KlimaDAO has amassed more than 15million Carbon tonnes. That is about the equivalent of Slovenia 🇸🇮 annual carbon emissions!
This is also equal to 3.57M individuals traveling in an electric train 🚝!
& Between 2.5%–4% of the entire available global supply

Klima helped 2x and in some cases 3x the average prices of carbon credits. This is a 20 year old market that had been going nowhere till 2021.
The average annual market trading volume since '07 = ~ $420m. Klima pools traded ~ $3bn in carbon credits (BCT) on-chain: a 7x increase.

@Grimezs

Impact is more than noticeable. Macquarie published a report showing how retirements surged in October post $KLIMA launch. This is why a wide range of influencers from artists like @Grimezs, technologists like @stevewoz and business builders like @mcuban have taken notice.

Not only have they taken notice, but in only 3 months Klima has been featured in: Nasdaq, WSJ, Forbes, Bloomberg, London Times, leading carbon industry publications like carbon pulse, Platts, cointelegraph,

(Links provided at end of thread)

Currently the majority of treasury value comes from Base Carbon tonnes (BCTs). But new Carbon credits are added and more in the pipeline:
MCO2 tokens have been added recently. Klima currently holds 61,042 MCO2 tokens in its treasury

https://twitter.com/Dionysus_Klima/status/1485197854499119104?s=20&t=v4CUroC8rmUd3QHoM7ZWXw

Flow carbon/Goddess DAO are being negotiated. Toucan nature based BCTs are coming. nBCTs are higher quality credits trading at $10–15/ton. wen ITMO's?
One thing is certain: more bridges, more asset types, and more partnership bridges will be added as we go along

https://twitter.com/treetreebeard/status/1478790139526660097?s=20

Wen marketing?
Up to now there has been little to no marketing. Since inception people needed to be hired, a structure needed to be put into place etc.

https://twitter.com/treetreebeard/status/1478790139526660097?s=20

The DAO has ca $2.7mn (at current prices) to spend on development, which increases daily via the bonding operations. A big metaverse marketing campaign is in the works. Bankless has agreed to do an exclusive klima education campaign.
As a sidenote the marketing team found in..

polls with community that klima has a relatively big amount of ppl where klima is their 1st crypto investment or are not into defi but klima is 1st defi investment.
Combine that with Fiat-to-KLIMA on-ramp from 82 fiat currencies, integrated with the Klima website &

bankless education series…. LFG!
A quick look under #collaborations in discord show that the team has been absolutely inundated by inbound collaboration requests. Good things come to those who wait…
and if you made it this far, some more pure alfa of good sh!t to come

Klima’s aim is to become the dominant liquidity pair for every carbon credit on chain, effectively become the de facto carbon currency.
If you want to position yourself for carbon market bullrun, the best way is to buy klima, stake (🌴,🌴) and enjoy the ride!