To start, we want to say that we do like the concept brought by UMA Protocol to create Synthetic assets by yourself for any markets.
So if you are into DeFi, you heard about UMA’s Initial UniSwap Listing of Wednesday 29th April and also know that UMA token price has skyrocketed ten fold given the tiny float of 2M tokens.
And if you are interested in Synthetic Assets, you have also heard about Synthetix.
So let’s make it simple: which one should you buy if you want to profit from the synthetic assets market?
Let’s take a quick look at both projects and see if their respective valuation make any sense.
17.6K followers on Twitter
7.2K discord users
You get some of the brightest mind in DeFi: The Professor, Degen Spartan and the other Spartans.
3.7K followers on Twitter
300 slack members
Total synthetic market cap: $16.5M USD (sETH, sBTC, etc)
Total staking ratio: 91% of Total SNX supply is staked
Network collateralization ratio: 848%
Trading volume last 24 hours: $2M USD
Generates weekly dividends in sUSD.
It does not have such metrics, as the project is not yet live.
SNX $140M vs UMA of $120M.
If this is not FOMO, we don’t know what is it. UMA market cap does not make any sense when you compare it with Synthetix, the other player in the synthetic assets market.
We don’t have a crystal ball to predict the future and we cannot say if UMA will continue its crazy bull run. In crypto everything is possible.
But what we can say is that any people interested in the Synthetic Assets market and investing in UMA at $1.2 right now, is either a fool or… a FOMOer. There is no way to justify such a ludicrous valuation for a project which is “just” getting started and has wrongly advertised that they were offering their tokens at the initial seed round with a tiny float.
UMA Protocol is a great project but we won’t buy any tokens at these absurd prices.
We are long Synthetix.
Thanks for reading
Why become a paid subscriber?
If you are willing to bet on the future success of DeFi and cryptocurrencies, this is the subscription you want to take.
We explain our thesis in a plain and simple language, based on facts, trends, crypto use cases, token economics and valuation models. We do not use technical analysis to make calls. We invest based on fundamentals.
It costs only $25 a month, for now. Price will increase in the future.
And you get:
Our watchlist: this is the list of crypto projects we are currently looking at.
Our watchlist of potential scams or doubtful projects.
Cheatsheet and tips on how to find great crypto projects and detect scams.
Follow ups on investments.
Archived articles: Full access to Secret Salsa archive.
BONUS: portfolio management tips, hedging strategies and learning tools.
Questions on the subscription?
Please contact us via Twitter: @SecretSalsa_
You understand that no content published on this website or on our social media channels constitutes a recommendation to buy or sell any security or cryptocurrency. You acknowledge that the content of this newsletter is for informational purposes only and does not constitute investment advice. Investment in cryptocurrency involves large risks and you are solely responsible of your investment decisions and should consult a financial professional to assess your own personal and financial situation. Secret Salsa Crypto Investment Ideas’ newsletter is not a registered investment advisor or an investment company.