Joshua Peck Discusses the State of Crypto
Joshua Peck – the founder of True Code Capital – recently offered his thoughts on digital currency.
Joshua Peck Talks About the State of Crypto
Not long ago, Peck established what he’s calling the Crypto Momentum Fund through his firm. He commented:
It provides an opportunity for asymmetric portfolio growth by creating an algorithmic risk-managed exposure to the long-term growth in the emerging cryptocurrency market. True Code launched a cryptocurrency fund after a successful multi-year year track record in an incubator fund. It’s focused on preserving and growing capital by utilizing three core systems that provide a complete risk management system for cryptocurrency investors and allow for greater allocation to the asset class.
At the time of writing, those core systems are known as the True Code Asset Selection Model, the True Code Dynamic Weighting System, and the True Code Intelligent Signals API. Discussing what investors get wrong regarding crypto assets, Peck stated:
They think strategies that work in other investments will work well for crypto. For example, indexing works well in equities, which have led to index funds being a popular product, but cryptocurrencies are software technology projects, so venture math comes into play. There will not be [many] equally valuable cryptocurrencies any more so than there are [many] equally valuable search engines or mobile phone companies. Technology projects are winner-take-all games, and the current skewed market caps toward a few very large cryptocurrencies reflect that. They fail to recognize that cryptocurrencies have a different set of risks from any asset they’ve invested in before. For example, during the recent failure of the LUNA token, many investors incorrectly believed the UST token was equal to the U.S. dollar and that they had found a riskless way to earn 20 percent plus APY. They later found out that the high APY was a risk premium awarded to investors for undertaking the risk of total loss. Similarly, the Celsius Network took advantage of investor greed and has created tremendous losses and endless stress for families.
Peck also said that the volatility the crypto market is experiencing at this time is perfectly normal, and traders shouldn’t be concerned. Bitcoin has fallen by more than $40K and the crypto market has lost more than $2 trillion in valuation. He said:
This is normal and expected volatility. I built True Code to prosper from this volatility. and we’re looking forward to buying assets for twenty to thirty cents on the dollar.
Finishing a Book
Regarding the crypto projects he has planned, Peck mentioned:
I am finishing writing a book on cryptocurrency risk management for family wealth that is scheduled to be released in the fall. I know very few families will have an opportunity to invest with us, but all families should have the right information about how to successfully navigate the crypto markets.
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