Dear Finbloxers,
We're happy to provide our Transparency Report, which is designed to bring some peace of mind to our users so that they know where their funds are being deployed. The allocations presented below are subject to change depending on strategy performance, future yield projections, and the evolution of the customer deposit mix.
*The report is subject to market changes and numbers shown are a rough estimation
**Target asset allocation is for reference only and subject to change per market conditions and business strategies
Markets
The rallying cry of crypto investors for the past few years (Institutional money!) has finally happened as BTC spot ETFs were authorized by the SEC in January. This lead to a dramatic inflow of capital to the headline crypto asset. While a Bitcoin ETF might not pair super well with the original Bitcoin ethos, its price impact has been unmistakable.
A total of 11 ETFs launched in January with Grayscale reporting net inflows of its fund reaching $1.5bn for January.
Leading up to and following the ETFs launch we saw significant price increases for Bitcoin and the largest monthly candle for Bitcoin in its history in February,
The frenzy is also being buoyed by the impending Bitcoin halving expected for April 2024, when rewards for block confirmations will drop by half.
Some market participants are expecting that the next alicoin season is imminent but are markets different now than in the last cycle? So far, very few crypto tokens have performed as well as Bitcoin since the last peak.For example, ETH is still a ways off of its $5k ATH.
The total crypto market capitalization exceeded 2 trillion for 1st time since Nov 2021 ATHs.
The dollar volume of crypto related hacks was slightly down in February compared to January and hit PlayDapp, FixedFloat and Duelbits. Never give out your seed phrase for any reason.
No Yield Changes for January and February 2024
No yield changes for the previous period
DeFi Allocation Increase & Risks
We’ve made no material changes to our allocations between Defi and CeDefi/CEX exposure. All current customer assets remain in DeFi protocols/projects or self-custody wallets. Defi remains at risk of protocol and smart contract exploits.
Due to the reduction in rates for several assets, those have been moved from Defi strategies and into custody wallets. This has resulted in an overall decline in Defi exposure for the asset portfolio strategies.Assets in custody are no longer exposed to Defi risks.
Target Allocations
We did not make any significant changes to our allocations.
Our target allocations for customer assets that were initially set in July 2022 and updated in November 2022 have not changed:
DeFi protocols: 40-90%
Centralized exchange (CEX): 0-5% (used for temporary asset bridging between networks, i.e. USDC_ETH → USDC_POLY and vice versa)
Self custody: 5-15%
CeFi platforms: 0%
As of the end of February, our allocations are as follows:
DeFi protocols: 54%
Centralized exchange (CEX): 0%
Self custody: 46%
CeFi platforms: 0%
We believe in providing transparency to our users on the company's activities and aim to increase our users’ view of where their coins and tokens are and how they are performing. As always, we'd love to hear more feedback about the types of info you want.
All the best,
The Finblox Team