Fat Cats

When we initially founded Fat Cats we spoke in terms of Big Caps, Mid Caps & small caps, however, we minted into the beginning of a bear market and there was major concern that many smaller projects might go bankrupt, rug or just not be able to fulfill promises and fall drastically in price. That has been true for the most part and our conservative approach protected us.

That said the market has since consolidated making it a lot clearer who is still building and has potential. Furthermore our research department is working hard to turn out quality reports empowering an ever more experienced council and community to judge projects viability.

In addition we have seen tremendous volatility in the price of Ethereum & Bitcoin and considering our holdings are all in Ethereum it makes sense for us to hedge our core ‘currency’ and the global economy.

We currently have two asset that have received a large allocation of our capital, our ape and our punk. The majority of holders and the council agree our Cryptopunk should not be sold as it acts as an aggregate of the well being of all NFTs, is a very desirable collectors items as the premier Archeological NFT and does not need utility to succeed. In addition there is no derivative item of Cryptopunks. Our Bored Ape on the other hand can be sold to free up liquidity and we can still have exposure to the Yuga ecosystem via Mutant Apes of which we have had much success trading and dogs. Both of which have much higher volume as they act as a cheaper entry point and are thus easier to also arbitrage. The goal would be to eventually buy back a Bored Ape as our funds grow from our trading activities but right now locking up that much of our funds stops us from being able to explore other opportunities.

The council proposes that we sell our Bored Ape and allocate the funds accordingly:

1. Blue Chip Trader Fund (known currently as the Trader wallet & headed by Dylan) would be seeded with 9 more ETH in addition to the current ETH & 5 Mutants (bringing it to approximately 100 ETH). This fund will focus on trading and hodling the projects the council deems to be blue chips which are currently Yuga assets, Azuki Assets & RTFKT assets. What is key about this fund is that with all three of these projects we are alright getting theoretically ‘stuck’ with their items as we believe in their long-term potential. The DAO would need to grant the Council the discretion to upgrade and downgrade projects accordingly.

2. Emerging Blue Chip Trader Fund which will be headed by Bela and seeded with 20 ETH. Emerging Blue Chips are those that the Council deem to have high potential however we consider them not yet of Blue Chip status and as such we would prefer to just trade them when we see volume and price movement opportunities. Currently Proof ecosystem, Doodles, Chimpers & Pudgy Penguins as well as Veefrens ecosystem and Reddit Genesis Avatars are on the Council’s shortlist. This group is more dynamic and the DAO would need to grant the Council the discretion to upgrade and downgrade projects accordingly.

3. Currency hedge-fund which will be headed by Parker and seeded with 20 ETH in order to hold a basket of Bitcoin, USDC & Ethereum with price movement trading done primarily with Ethereum. The DAO would need to grant the council the discretion to upgrade and downgrade a few coins that often overlap our ecosystems namely $APE & $MATIC.

4. Gold hedge-fund which will be headed by Nadia and seeded with 10 ETH in order to trade gold movements. Gold traditionally tends to be a very good hedge against recessions as people rely on it as a store of wealth when stocks and the like are in flux. It also tends to get a lot of volume during bear markets allowing us to potentially profit off of swings.

The remaining funds will be stored in our vault as our reserve and it is proposed that with all four funds, 50% of every profitable trade be sent back to the vault so that we can show a track record and keep growing our reserve to eventually buy back a Bored Ape or some other valuable long-term hold and/or distribute funds to holders should they desire. The remaining profit will be used to keep compounding growth.