I just bought SNX at $19. Within 5 min it rallied .50. Don’t be afraid though. You can buy the $20. Here’s why…

AAVE is up about 500% from when Alts started rallying (AAVE started at about $85 to $100 when Alts rallied hard the first day of Alt season, now at $500) whereas SNX has been strong, but lagging UNI and AAVE. I believe SNX has some catching up to do. It started about $7 and is now at $20, up but not even 300%. Yes 300% is a large number, but that is still par for the course in the DeFi coins. I’m calling $500 in AAVE as a short term top. If there was a good psychological price point to sell — it’s $500 even. Rotate that money into SNX! It’s the only derivatives play in the top 12 DeFi spots.

I don’t believe AAVE was undervalued to SNX before the pump. I do think it means the market values AAVE more than SNX overall, much of this might have to do with the press around Mark Cuban realizing AAVE was better to buy than BTC. SNX is a bit more complex of an app to understand, so it’s understandable someone can just go on AAVE get a instant cheap loan and go I love this! I want to own it!

That being said, SNX is nearly as good, and potentially better as there are not many competitors to SNX in the main Defi apps derivatives space, whereas AAVE has COMP, MKR, and several others — look let’s face it lending is not rocket science. AAVE has a good website and people know about it, but it doesn’t seem to have a wide moat — I could be wrong about that — but either way that is part of my reasoning, although not necessary for my investment thesis. Fact is, SNX is also breaking out after being resisted at 17.50 for several weeks. It’s due. Lenders and DEXs aren’t the only DeFi protocols.

AAVE and COMP both up 45% and 25% respectively and UMA (a sort of SNX competitor) up 50% today. SNX is so due. Let’s send it!

What is SNX and how does it work?

SNX Key Facts

  1. It is a derivatives trading platform that allows users to interact by depositing their SNX tokens (staking) they can then trade silver, gold, and many other things. There is real user demand for the SNX coin so they can use the protocol and they taking rewards for depositing.
  2. There is a hedge against the potential debt pool losses at DHedge.org, so you don’t really need to be at risk of the debt pool. Just go to DHedge.org and check that out.
  3. Lastly, its included in the 3 major DeFi Indexes: DeFi Pulse’s DeFi Index (the biggest DeFi index fund), Power Pool’s Power Index (PIPT) and (ASSY) and PieDAO’s (DeFi+L) as well. It’s a major player.
  4. There are rumors that SNX is adding ability to leverage 10x and potentially 100x which might seem scary for some people but it’s a feature a lot of traders will like so it doesn’t increase the risk on SNX token just the value of the protocol (demand for SNX token).

Mutual Funds and Indexes that Include SNX as a Top Holding

SNX Debt Pool Mirror
Power Index (PIPT) and ASSY Index (ASSY) Inclusions
PieDAO’s DEFI+L Inclusion
DeFi Pulse Index Inclusion

Having major indexes buy your coin to include in their fund is what William O’Neil of Investors Business Daily calls “Institutional Sponsorship” it’s a great thing to be included in funds so the fund is buying the stock or coin with you, not only is your judgement supported by others, but it means more demand for the asset.

Why not just buy the index fund? You definitely should, but they you should also correct for the one’s you really like because these fund’s have their weightings wrong — they need to buy heavier on the ones that are relatively low, but still strong. But instead, they buy the ones that have the largest market caps more. That can work over a long term, but crypto is too volatile for that.

Once SNX has had a good send, then evenly distribute them back like the PowerIndex which is equal weighting. These indexes are not hedge funds though. They only trade and adjust weightings once a month I believe. You need a hedge fund if you want someone to adjust your holdings at a more frequent pace (and get you out of the market at the onset of the end of the bull run) — which could be key.

Let’s see….

Here is what Nomics.com has to say about SNX:

Synthetix develops a blockchain-based payment network fueled by a stable coin aiming to combine all the benefits of a decentralized approach with the stability of traditional financial assets. In order to reach stability, the project implements a dual token solution that consists of a stabilized Ethereum-based utility token SNX and a reserve token Nomin to back it. Nomin is pegged to the value of 1 USD and is used to make transactions on the platform.

I believe the “Nomin” is actually the sUSD. Nomics needs to update this description…

Previously known as Havven, the project was rebranded in November 2018, and now bears the name of Synthetix. It is fueled by a native ERC-20 cryptocurrency SNX.

On the Synthetix platform, SNX tokens serve to stabilize and collateralize the system, while their holders get the transactions fees. The size of payouts depends on their contribution to the stability of the Nomin token. SNX token holders place their assets in an escrow account in order to issue Nomins, as the total value of SNX in escrow is always bigger than the value of Nomins in circulation. The collateral ratio of nomins to SNX equals to 1:5. This helps to ensure that nomins can always be redeemed for their face value even if the price of SNX dramatically drops.

The Havven (Synthetix) ICO was launched on February 28th, 2018, and ended in a week on March 7th having helped the project’s creators raise the hardcap of 30 million USD. In order to participate in ICO, investors had to pass a thorough KYC (Know-Your-Customer) procedure and get whitelisted. 60% of tokens were distributed via ICO while 20% went to the Havven team and the rest was allocated for bounties, different marketing incentives, and the foundation. At the time of writing, the rebranded token SNX is available for trading on KuCoin and Cyber Network.

In August 2018, Synthetix announced its plans to switch to EOS in order to overcome the scalability issue inherent to all Ethereum-based projects. However, having spent several months on that, the team decided that the migration would turn out to be very costly for them, so they gave up this idea. At the time of writing, Synthetix still remains on Ethereum and SNX tokens can be stored on all ETH-compatible wallets, such as Metamask, MyEtherWallet, Trezor and Ledger Nano S.

They actually were in talks of migrating to XDAI, and I believe this was implemented recently.

The project was founded in Sydney, Australia, in 2017 when Tether (USDT) was the only viable stable coin in the market. The team is headed by Kain Warwick who prior to Synthetix managed to build Blueshyft, the largest cryptocurrency payment platform in Australia covering tens of millions transactions (primarily in Bitcoin). The platform allows to cash out purchases of digital goods and services and since its launch in 2014, it has grown to cover 1200 locations across the whole continent.

Before joining Synthetix, Justin Moses, the project’s CTO has worked for 8 years as a Head of Engineering at various companies, including MongoDB, a leading cross-platform database system.

Synthetix’s board of advisors includes Doc.Ai CEO Walter De Brouwer, Blockasset Managing Partner Renqi Shen, ZK Labs founder Matthew Di Ferrante and many other experienced people with successful projects behind their shoulders.

University of Michigan Bachelors in Economics, Level II CFA and CMT