🥛 The 5 Questions I ask before investing

GM, this is the Milk Road. We tell you what’s going on in crypto, so you don’t have to ask your aunt Marge who has no idea what’s going on in crypto. 

Estimated read time: 2 minutes and 29 seconds

Here’s what we got for ya today:

• ❓ The questions I ask before investing in crypto

• 💸 ENS domains just had their biggest sales day ever

• 👀 Another country adopts Bitcoin

• 😂 Meme of the Day

THE FIRST 5 QUESTIONS I ASK BEFORE INVESTING IN CRYPTO

I just dropped $50K into a new crypto token that I’m interested in.

I’m not going to share which coin (just yet), but I WILL share the process I use to analyze various coins. 

After all, there are over 18,000 different cryptocurrencies. 

Which ones should I invest in? 

How do I know when it’s actually worth investing in, and not just hype?

Today, I’m sharing a little cheat sheet.

These are the first 5 questions I ask myself before investing: 

1. What’s the big idea?  AKA how does this change the status quo? 

A few non-crypto examples:

Airbnb - instead of staying in a hotel, you can rent someone’s house while traveling 

Doordash - what if every restaurant could deliver like pizza restaurants?...without hiring their own drivers?

Now, a crypto example:

Luna  (a token I invested in) - Bitcoin is great for saving. Not great for spending. Too volatile. Too slow. And you pay taxes on the gains. We need a stablecoin for transactions.  No volatility (it’s stable, always worth $1). Fast. And no tax gains because again, it’s stable.

Milk Road - people are excited and curious about crypto. But it’s complicated and impossible to keep up. What if you got an email every morning from a smart, no-bullshit friend who told you about the latest & greatest crypto stuff in less than 5 minutes? 

2. Who is going to love this (aka, who is the customer?)

3. Why will they love it? (what problem does it solve for them?)

4. What is it most comparable to (in web3, or web2) and how is it different?

5. Are the “tokenomics” set up for the coin to go up in price if the project works?

For example, when I invested in Luna, it was clear. 

Anchor protocol is offering a stable ~19% yield. People will want that. 

To get that, they need UST 

To get UST, they need to buy Luna

Yes, this is oversimplified. But it’s the basic idea. If people want the 19% yield, that will drive UST adoption, and that will drive the Luna price up.   

So…what token did we invest $50K into? We will share soon, along with a copy of the answers we wrote to these questions. Coming soon to all the Milk Road readers who have had good behavior. 

ENS DOMAINS HIT AN  ALL-TIME HIGH IN SALES

When the internet came out, a smart move was to buy “domain names”. Like “home.com” or “shopping.com” etc.. 

These names became “digital property” which have been sold for millions of dollars.

Fun fact - Michael Saylor, the CEO of MicroStrategy who is all-in on Bitcoin was one of the biggest domain collectors. He owned domains like Angel.com and Voice.com which have made him over $100M+ selling them over the years.

He's currently pointing Hope.com to a website about Bitcoin, because “bitcoin is hope” in his eyes. 

Anyways - there’s a new “domain game” in town. People are buying Ethereum names (“ENS” names). For example, we own themilkroad.eth 

Here’s what you can do with your ENS name: 

• Anyone can send tokens to this name (like paypal)

• You can make it your website (like a milkroad.com) 

• You can link it to other accounts (twitter, instagram, discord, email)

• And more in the future. 

So, why did it pop off yesterday? Everyone was buying and selling 3 and 4-digit number domains like 1999.eth. 

Why? Because you’ll be able to create subdomains for your ENS. 

So for example if you bought 1999.eth, you’ll be able to create subdomains like bayc.1999.eth, moonbirds.1999.eth. So now owners of BAYC #1999 might wanna buy it. This creates a community of big projects that all own the 1999th piece in their collection. A family. Mafia 1999.

It was like buying land, that was zoned and permitted so that you can build a bunch of small condo units on it. 

Two days ago, the price for a 3-digit ENS was ~$50, now the cheapest is $10k.

CENTRAL AFRICAN REPUBLIC MAKES BITCOIN A LEGAL CURRENCY

I learned 2 things today: 

1. Central African Republic is the name of a real country

2. They just made bitcoin it’s national currency

The official Facebook page for the President posted that he had signed the bill into law. 

“The adoption of Bitcoin as official money represents a decisive step toward opening up new opportunities for our country”

Good news for Bitcoin but it’ll be interesting to see how this plays out. Only ~11% of the population has access to the internet today.

TODAY'S MILK ROAD IS BROUGHT TO YOU BY MISO ROBOTICS

ROBOTS ARE COMING FOR RESTAURANTS

And Miso Robotics is making it happen.

Their  robotic kitchen assistants do everything from food frying to drink filling… in half the time and with triple the revenues. 

It’s no wonder Miso is on the fast track to success. They’re partnering with some of our favorite fast food joints, including White Castle, Jack in the Box, and a bunch more. 

Not to mention, they made it to Fast Company’s top 10 list of most innovative companies in North America. 

Invest in Miso Robotics before they’re in every restaurant you love.

QUICK NUGGETS

Disney executives met this week to lay out a plan for their upcoming metaverse. They want to mix their metaverse experience with their physical parks. TBD if they will be selling virtual turkey legs. 

Looking for the next move-to-earn project? OliveX could be it. They are a digital fitness company that rewards users with DOSE tokens and NFTs.  They have a running game out, a cycling game coming soon, and are looking to eventually expand into boxing, rowing, and other sports. 

Blackrock, the world’s largest asset manager, launches its first crypto ETF. This will let investors get exposure to crypto without directly investing in it.

The Senate building in Mexico has installed the first Bitcoin ATM inside. Wen USA?? If you missed out on where we talked about what bitcoin ATMs are, check it out here. 

Facebook’s new virtual reality division generated $695M in revenue for Q1 this year. It beat expectations - but the division still had a total loss of $2.96B for the quarter!

MEME OF THE DAY

See ya tomorrow!

Shaan "Chocolate Milk" Puri and Ben "2% Milk" Levy

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DISCLAIMER: 

None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.