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Make-It Capital Edition #5

August 2020 | Make-it Capital Fund

THE WORLD AS WE SAW IT IN AUGUST 2020

The world of cryptocurrencies

The month of August 2020 was one of the liveliest ones in the history of cryptocurrencies. The total market capitalization increased by 14% or $46.5BN. At the same time, the 24-hour trading volume rose by an equal percentage.
Ethereum markedly outperformed Bitcoin due to the incredible boom in Decentralized Finance (DeFi). This reminds us of the ICO craze of 2017. Well, we all know how that ended. However, we do not predict a total collapse of the DeFi market. There will be a few outstanding long-term winners. Our team is analyzing all major projects out there to position the fund accordingly.
Another very remarkable trend of August 2020 was the surge of usage of USD Tether (USDT) by some 34%. The market capitalization of USDT has for the first time surpassed $13BN with daily trading volume even being catapulted to nearly 3x that at roughly $35BN. We see this as a flight to safety and a precursor to the introduction of Central Bank Digital Currencies (CBDCs). There are many countries working on digital blockchain-based versions of their respective national currencies. We might very well see the first CBDC seeing the light within this year. Our bets would rest on China.

The rest

All major stock markets surged ahead following the continued inundation of the financial markets with synthetic liquidity. This got even reinforced by the statement of the US Fed not to keep clinging on to the normal inflation target of 2% per annum. This opened the spigots not anymore of the Hoover Dam, but of the Three Gorges Dam. And that for years to come. Obviously, the C-word has hit millions of people economically extremely hard. It remains to be hoped that the financial aid will reach them. In any case, there will be an unprecedented rude awakening some time down the road. That is the main reason the Make-It team got into cryptocurrencies in the first place.
Also remarkable is the current outperformance of Silver to Gold. After the Gold/Silver ratio hit an all-time high of 123.09 in mid-March of 2020, this ratio has come down to below 70. Historically, a Gold/Silver ratio above 80 indicated an imbalance. This has now moved to more normal levels.

Make-It Capital Fund

The Fund is operated by Make-It Singapore and managed by Make-It New Zealand. It is open to institutional and accredited investors. The Fund is a totally unique one-stop shop for a comprehensive blockchain / cryptocurrency portfolio, empowering investors to participate in the complete ecosphere of the blockchain universe with just one investment. To achieve this and reduce volatility at the same time, we apply our proprietary five-pillar approach.
During August, the Fund has placed its first seed investment thus activating another of the five pillars. Details of which can only and shall only be shared with our investors. Overall, the Fund still dominantly outperforms all other major asset classes since its inception.

Needless to say, we are very pleased with our performance to date and are positive for the immediate, mid-term and especially long-term future of the fund.

If you doubt CBDCs are heading our way, you might want to take a look at this remarkable report by the Bank of International Settlements (BIS) from August 2020:

For more details on the Make-It Capital Fund, please contact: 

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Best regards, PHIL VON GOTTBERG CFO 	philipp@make-it.capital

Best regards, PHIL VON GOTTBERG CFO philipp@make-it.capital

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