In this seemingly never-ending bear market, is there any sort of investment philosophy that will yield noticeable returns? With all of the information that we have on the Blockchain space at this time, it does not seem likely. Even so, industry professionals like Chris Burniske and Anthony Pompliano have mentioned time and time again, one specific mantra to live by, in any market conditions.
In a word, follow the talent.
Coindesk published a piece today that illustrates 7 cases of employees from what most consider to be the top technology companies, moving to Blockchain firms. With this, they are attempting to hammer home the same point as mentioned above in more of a detailed fashion. Overall, it is quite easy to understand their conclusions on this subject.
If you are looking for a new structure for your Crypto portfolio, then according to Coindesk and industry experts like those mentioned above, it is logical to start by looking into each project’s team and choosing those which have the best experience. The problem with this idea is: how do we definitively determine what the best experience refers to? What criteria do we use in making this determination?
Is it reasonable as Coindesk and others say, to base our investments on drawing the top talent from the top places?
Firstly, it is never enough to categorize a quality team on the effective name drops that their resumes make. We also need to consider the projects that these teams have been successful with that also relate to the areas that their new Blockchain projects are moving into.
In another sense, with this, investing in the Blockchain space is no different than anywhere else. One simple question gives us an inkling of an answer for every possibly investment: how do I find the value in this project and will it grow over the long term? To take this a bit further, one could apply the theory of value investing and seek out the best teams with the Crypto coins that one thinks are the most undervalued.
Overall, it is important to make clear that no one of these figures appear to be suggesting that we do anything different from this. In effect, their suggestions appear identical.
In the end, as with any investment strategy, this is not a one size fits all type approach, but it is a good starting point toward restructuring a suffering portfolio. Following this, more quantitatively driven measures would assuredly have to be taken, though at least, the investor will begin to feel that he or she has cut through the buzzwords to the real substance of Crypto networks.
By: BGN Editorial Staff