SPI’s Asset Management: Balancing Risk with Realistic Valuations

Hello SPIers,

Today, I want to discuss a unique practice we follow at SPI that you might find interesting: I undervalue certain assets in our holdings report. This approach helps to keep the value of the SPI token more accurate and stable. Allow me to explain.

In the latest SPI report posted two days ago, our fund held 560k HIVE worth of assets. Impressively, 90% of these assets are liquid, meaning if they are in our wallet, we can sell them all. If SPI powered down, we could easily sell 450k HIVE, all our LPs, and other crypto and non-crypto holdings within a few hours.

However, some assets in our portfolio have low or zero liquidity. I categorize these into two classes:

1. Gaming - Valued at 50%

SPI has a gaming account managed by @shitsignals, which has grown nicely over the years. We are involved in various games—some are running, some are pre-launch, and a few have failed. When SS sends me the numbers, they look impressive on paper. In reality, however, we can't easily access those funds, and selling them might result in significant losses.

For instance, holding $10k in Splinterlands cards does not guarantee getting $10k when selling them. The market for high-value gaming cards is limited, and finding buyers willing to pay 5000 HIVE for a card is challenging. Thus, I undervalue gaming-related assets by 50% due to the associated risks and lack of liquidity.

2. Dead - Valued at 0%

Other investment projects might include dead holdings to inflate their numbers or may have forgotten about them, leading bots to value their projects based on the last sold prices. I believe dead projects should be excluded from our assets.

For example, SPI currently holds 860 VIBE miner tokens. The last sell price for this miner was 0.59 HIVE, valuing our VIBE miners at 510 HIVE. However, there is zero liquidity, and the project is dead. We also hold 70k LISTNERDs valued at 150 HIVE. If a bot valued SPI, our valuations would be inaccurate.

@spi-null serves as SPI's dumping ground for tokens that are effectively worthless due to dead projects, such as farmfarmerfarmfarm memes tokens, BS airdrops, tip tokens, and most tribe tokens. I have access to this account.

Why Do I Do This?

The main reason is that SPI offers a 95% buyback. When buying back SPI tokens, I don't want to overpay due to artificially inflated fund values from paper profits. My goal is to keep SPI as liquid as possible, ensuring the SPI token price closely reflects liquidation value. This is crucial in case of a "run on the bank" scenario, where everyone wants to test if SPI is truly backed and liquid.

Currently, could SPI buy back all 93k SPI in circulation for 6.07 HIVE each? Yes, it could, after 13 weeks and 5 days.

SPI is SPinvest's flagship token, and I aim for it to be the gold standard for investment tokens on HIVE. SPI will never create a defi platform, launch a tribe, or develop a game. It is purely an investment fund token. I use your money to generate more money. While SPI may not be the most hyped or flashy token on HIVE, SPinvest adheres to a set of standards for all its projects, including full backing by assets, equal ownership shares for all tokens, weekly progress reports, transparency, and sustainable growth roadmaps. Fairness and equality ensure everyone's tokens hold the same value.

Given this context, it is necessary to undervalue and write off certain investments.

What Do You Think?

I've been meaning to write about this for a while. While it might not be critically important, I thought some of you might find it interesting.

Next on the chopping block are HIVE PUNKS, currently valued at 1500 HIVE. I believe reducing their value to 500 HIVE is more realistic. We actually hold the 4th highest-ranked card out of 10k, with a comparable card listed for 9999 HIVE. Despite this, PUNKs will be devalued due to the lack of a current market.

Thanks for reading this post. I hope you have a good rest of your day, whatever time it is for you.

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Getting Rich Slowly from June 2019

Token Name	Main Account	Link to hive-engine
SPI token	@spinvest	SPI
LBI token	@lbi-token	LBI
Top XV token	@spinvest	XV
Eddie Earners	@eddie-earner	EDS
EDS miners	@eddie-earner	EDSM
EDS mini miners	@eddie-earner	EDSMM
DAB	@dailydab	DAB
DBOND	@dailydab	DBOND

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