Last December 2021, popular crypto analyst Adam Cochran posted a 206-item Twitter thread on assets that he thought will outperform in 2022. The thread indicated why he chose those assets, their approach, and his bull case for each cryptocurrency.
The list has different ranks:
- God Tier – ETH, YFI, CVX, KP3R
- Strong Outperform – FLX, CRV, ALCX, BAL, ZRX, FXS, RBN
- Outperform – FTM, AVAX, ZEC
- Value – MKR, HNT, LDO, COMP, RARE, SNX, SYN, GYO
Six months later, this is how every crypto in that list fared so far, as noted by the prominent Twitter account Shitcoin Minimalist:
Ether, which ended the previous year at $3,800 is now worth $1,460, which means it decreased by 61% after six months.
Other DeFi coins did not fare well. YFI and KP3R, two cryptocurrencies associated with prominent developer Andre Cronje are down 84% and 91% respectively.
Other popular coins, such as AVAX and COMP are also doing 81% and 78%.
People were quick to mention how Adam Cochran, the analyst who created the original compilation normally deliver good insights. “He was bearish early and was one of the few big accounts warning how bad the 2022 macro picture is. You should def caveat that in this thread,” one user replied. To which Shitcoin Minimalist answered:
Many, however, concluded that even the best analysts may have underestimated the bear market. “My point is that even someone that spend a lot of time doing fundamental analysis still failed in picking a token that outperformed. It shows how incredibly reflexive the crypto (defi) market is. You are much better off just buying ETH and work on your market timing skills.”
Adam Cochran did answer that it was indeed a rough year for crypto, but also noted that the original compilation was structured as a “shopping list to buy on dips” and that it was created before the war in Ukraine broke out.
“I’ve been pretty aggressive on saying we’re entering a massive downtrend and that if anything, DCA, is your friend here like all markets,” he said.
Dollar-Cost Averaging is an investing technique wherein the investor only puts a regular amount into their investments only at intervals (such as per month, or per week.) Doing this lessens the risk of large losses if the investor was not able to time the market correctly.
This article is published on BitPinas: CryptoCrash: ETH, YFI, KP3R. DeFi Coins Down by 90% as Bear Market Humbles Everyone
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