Fundamentals — $DBK

Pretty sure that’s what everyone is feeling right now, especially the ‘diamond hands’. The ones who exited might feel a sense of relief, and will probably sleep better tonight.

The thing about trading is, we won’t be having good times every day, and bad times come so that we take a break and divert our focus elsewhere in life. Tough times don’t last, but tough people do, and it makes the good times even sweeter as it comes later.

Some traders enjoy such thrills, and some newer traders in cryptocurrency find it hard to stomach. Not everyone is made equal.

Everyone talks about the fundamentals of a project. But, what does it really mean when everything starts crashing down? I’ve asked myself this question since 2016 when I embarked on my journey in blockchain, and cryptocurrency. Life was much easier before when Litecoin was easily the second-best coin in the decentralized space, Ethereum just started out, and XRP was still relatively new.

I can’t remember all the prices, but I remembered asking for funds around to start a mining farm with Litecoin when Litecoin was around $2.50 to $3. I was excited then, contacting Innosilicon asking for quotations on their miners, checking out places in the world with affordable energy sources so as to bump up my potential ROI. However, I couldn’t gather enough support then to make everyone believe that cryptocurrency was the future. Everyone I spoke to, felt that Bitcoin was a Ponzi thing. Heck, some even told me Onecoin was the real deal, lol. I left it there and stuck to my beliefs that, blockchain is the future.

A while later, Ethereum and smart contracts started gaining traction, and ICO was just starting to kick off. A thought came to my head. If everyone starts doing ICO and creating their projects on Ethereum, perhaps mining Ethers might be a good choice as well. And Ethereum mining was possible with CPU and GPU. I had some savings then, and plunged into Ethereum mining on my own, studying Youtube channel of miners on their designs, made some adjustments on my own so as to ensure that my miners do not overheat in the tropical country. Ethereum was around $10 then I believe. I spent around $18,000, investing in GPUs from AMD mainly, some CPUs, PSU, and other components required to build 3 rigs to start with.

It was a nightmare initially. In order to save on the electricity cost, I decided to do it in a place with subsidized electricity bills. Some of my hardware suffered damages through power cuts and under voltage. I had 3 rigs, to begin with, and only had 1 working rig left after those damages within the first 2 months. Lucky for me, within a year, Ethereum shot to $75. I had a chunk of Ethers mined, sold all of them, had a 50x ROI, shut down that one final rig, and called it a day.

That was my first bucket of gold in life, and I’ll forever be thankful for that ‘last rig standing’. It’s held in a storage unit now, as wild cats tend to wander inside the rig and sleep there with the PSU unit.

And so naturally, I began trading and co-founded my first blockchain startup from the profits. That’s a story for another time. But since then, everyone has been talking about the fundamentals of a project. Especially the slightly knowledgeable ones. But, what does it really mean? We’ve all seen great projects fall off the cliff during bear seasons as well.

It was an answer I have been looking for, and no amount of articles and discussions out there could satisfy my personal understanding of the ‘fundamentals’ of a project. In my opinion, a good fundamental would be a utility token use case, where, regardless of the current trend, would be in demand and thus, allowing the price of the token to be stable in bad times, and crazy in demand during good times. However, that might not be the case, due to cryptocurrency being an asset of speculative nature by traders, like myself when I decided to go into Ether mining and even trading later.

However, as DeFi gained popularity, and DEXs like Uniswap slowly gaining traction across 2020. I’m starting to understand ‘fundamentals’ differently. It’s slightly different from what I’ve thought before. What if — instead of farming for more tokens, we farmed for profits, profits that means something for the users, that can be liquidated and sold easily without worrying that the farmed asset will go higher in value in the future, so users can be consistently realizing and reaping their profits — and the answer, stablecoins. Let’s face it, most of us get rekt in crypto because we’re consistently chasing for the high, and hoping to sell at the top. But sadly, nobody really catches the ‘top’, at least not all the time. Not even the best traders.

And so, for the next part, how do we ensure a project, or use-case generating profits for everyone. Well, that’s a business — a profitable business, in the financial world which provides dividend for their investors who owns the shares of the company.

That was how Dbook came into existence — With a business consistently generating revenue, and token holders getting a profit-sharing model by staking their tokens, acting as a proof-of-ownership. This doesn’t change the fact that the token price will be sustainable in a bearish market trend, but at least, token holders will be benefiting from the profit-sharing model, assuming the ROI is attractive enough for token holders to continue holding the token and acting as a price discovery tool. Since the profit distributed will be in USDT, or other stablecoins of the future, the speculative nature will be removed, allowing holders to make wiser decisions, perhaps to reinvest the USDT into other projects, sell it to get themselves something nice, basically anything the holder wants, aside from ‘bagholding’ it, and waiting for the moon to come. 1 USDT/BUSD/USDC will always be pegged to 1 USD, tops. There will not be any incentive to hold USDT, other than to use it as a trading tool, or just selling it to other traders for cash to be used. However, there will be an incentive to hold $DBK, as $DBK will be there, giving you USDT, and allowing you an opportunity to get into better opportunities in the future!

Let’s ignore the charts and portfolios for a few days and do something else that interests you! It’s definitely healthier this way. Unless you have a ton of spare liquidity now, then it’s probably a good time to think about buying, lol.

Have a great day, people!