📈 Selling stocks, why?

GM gamers, investors!

This week we explore:

1. Highlights —> What’s moving the market?

2. I sold my Apple stocks. Why?

3. ERC-6551 Token-bound accounts —> Is it worth it? How can we use it?

Let’s dive in

1. FED is taking a break from raising interest rates (article).

   1. FED increased rates 10 times in a row. This break doesn’t mean we’re done, FED committed to reaching 2% inflation, right now we are at 4%.

2. Salesforce to bring AI to enterprises (article).

   1. Tired of writing your work emails?

   2. Similarly to Amazon’s Bedrock, Salesforce is launching AI Cloud, an enterprise-ready mixture of AI tools from both Salesforce and their partners (AWS, Anthropic, Cohere, and of course OpenAI).

3. DeFi Llama is launching a new module - NFT earnings

   1. Want to know how much your favorite collection is making to their creators? Check it out here.

   2. Testing version, might be a little off sometimes, but a good start 👍

4. A16z is opening its 1st office outside the US (article).

   1. Remember the SEC battle with US web3 ecosystem? Coinbase already left the country, Binance is thinking of it, and now one of the biggest VCs is expanding abroad, specifically into the UK.

5. Avalanche to onboard web2 games (article).

   1. Ava Labs announced on Friday that it is launching Avalanche Arcad3, a collaborative program for traditional game developers to explore blockchain game integrations, helping them with both technology and connections.

Do you know how much costs the 5 most expensive NFTs? And real paintings? A great article by CoinGecko shows the gaps.

I sold my Apple stocks. Why?

This year I made a few nice trades on tech stocks, started buying in November, and sold throughout this year.

My trades were on MSFT, META, NVDA, AMZN, TSLA, …

Apple was my last big tech stock, that I decided to sell with a 42% profit.

Reasons?

Later last year when everyone was talking about recession, I thought it was a good time to start buying, taking Warren’s advice to be greedy when others are fearful and vice versa.

I didn’t time the bottom, nor got the best results (sold NVDA before the 20% earnings rally) but started DCA around that time and made interesting positions.

Then we had a 6 months rally, driven lately by tech and AI.

But, with P/E hanging around 25, and extreme greed by the Fear and Greed index, I feel it might be a FOMO-driven rally and we might see a sell-off in the next 4-5 months.

Having said that, I slowly closed positions I think are overpriced.

I continue DCA into 5 different passive indexes, which is something I’m doing for a few months and will do probably forever, just decreased the monthly $$ amount.

I keep DCA weekly into crypto, mainly ETH (~55%), but spread around others.

And enjoying the 6% risk-free income thanks to high-interest rates, while waiting for the market to calm down a little and jumping back in.

Btw it looks like Nancy Pelosi and her husband made the same decision to sell Apple (unofficial) and she’s historically associated with some insider trading.

Is there someone still bullish on stocks right now?

ERC-6551 Token-bound accounts

ERC-6551 is a new Ethereum standard for token-bound accounts, which creates a smart contract wallet for every ERC-721 NFT.

That means every NFT using this standard can become a wallet, storing other NFTs or crypto tokens.

The update is based on the Ethereum Improvement Proposal 6551 (EIP-6551) created by Future Primitive — an on-chain product studio led by Benny Giang and Steve Jang and went live on Ethereum on May 7, 2023.

Token-bound accounts are backward compatible with the widely used ERC-721 standard, meaning existing NFTs can implement ERC-6551 without undergoing any fundamental changes.

Benefits?

Making your NFTs much less static since they can now own other assets and even interact with smart contracts.

Already excited about the usage in gaming and NFT-fi?

Let’s explore some!

Gaming

ERC-6551 represents a simple inventory system for your NFTs.

Now you can attach assets, such as equipment, to your other NFTs, like characters, and easily transfer this across, or let the character NFT farm something in the game while you’re away.

But you can do the same with NPCs, giving them items they can drop once the player kills them.

This is groundbreaking and brings blockchain gaming one huge step closer to reality.

Digital identity

One more use case is digital identity - using your NFT as the identity in different ecosystems, or across all of them, instead of your wallet.

You can imagine that as putting multiple profiles into one, like Facebook pages attached to your main Facebook account, or all your Yuga Labs collections to your main Bored Ape.

Behavioral-driven airdrops, loyalty programs, and in-game rewards are a few examples of systems that can leverage this standard.

Nft-fi

Today you can easily stake, rent, and borrow NFT since they are individual asset types.

Two significant things happen here,

A.) you need to be careful you’re lending NFT without assets attached to it

• would be painful to see someone taking all your NFTs just because you forgot they’re not in your wallet but attached to your BAYC.

• another chance to make a mistake or get exploited

B.) you can lend a whole different type of assets

• Imagine a fresh WoW character vs. fully equipped with all BiS items.

• Or an empty Metaverse land vs. a fully developed one with dozens of other NFTs attached to it.

Can it make wallets unnecessary and have just one starting NFT, airdropped to each user, which can be used to interact with the rest?

I decided to elaborate a little on the stock selling since people are asking me, but next week we’ll do some juicy deep-dive into web3 project.