5 Risky Bull Market Investment Opps

Degen-only investment plays that the Bankless team is watching
Dec 7, 20233 min read

At first glance, the best plays in crypto may appear a little degenerate…

While investing at the frontier of crypto comes with a high amount of risk, identifying and aping the opportunity early has been a pathway to success for many crypto investors!

Want BRC-20 infrastructure plays that could capitalize on a mania so hot it’s congesting Bitcoin? Ready to front-run the AI gaming opportunity? Then keep reading!

Take note: this guide is for DEGENS ONLY 🦍

1. 🪙 BitStable

Website | Twitter
Ticker: BSSB
Sector: Stablecoins

Have you been dying to borrow against BRC-20s? BitStable has got your back! This stablecoin protocol enables users to borrow DAII using Bitcoin-adjacent assets like ORDI and MUBI as collateral.

While DAII can exist as either a BRC-20 on Bitcoin or ERC-20 on Ethereum, all borrows and redemptions must be done on Ethereum, as the smart contract logic for BitStable is housed on this chain.

Considering the bridge nature of BitStable’s collateral assets, the Protocol has an increased risk of insolvency compared to traditional CDP protocols on Ethereum, as the underlying tokens themselves could be hacked, and the liquidity of the bridged assets is not guaranteed.

Regardless, enabling Bitcoin degens to borrow against their favorite assets will unlock leverage within BRC-20 markets that could provide rocket fuel for the prices of BRC-20 assets. BSSB holders would directly benefit from this rally as the supply of DAII will increase with the demand for leverage!

ORDI-backed DAII is set to go live later today.

2. 💱 MultiBit

Website | Twitter
Ticker: MUBI
Sector: Bridge

MultiBit is a bridge allowing for cross-network transfers between the BRC-20 and ERC-20 token standard that allows users to bridge tokens between Bitcoin, Ethereum, Polygon, and BNB!

While MultiBit only currently offers bridge services, their website indicated that the team is eyeing expansion and intends to launch an AMM, liquidity farming pools, and a USDC-pegged stablecoin in the future, likely with the intention of building out a DeFi ecosystem for their bridged assets.

For the next 27 days, MUBI holders can stake their tokens to earn their share of the BSSB that was airdropped to MultiBit by BitStable during their token generation event.

3. 🤖 Bittensor

Website | Twitter
Ticker: TAO
Sector: AI

Bittensor is a blockchain-based network in which miners contribute their machine-learning models to the network to analyze data and provide insights.

While blockchains like Ethereum and Bitcoin sell immutable blockspace, Bittensor is focused instead on creating “value-creating” markets and allows for the creation of numerous decentralized commodity markets under a unified token system, which can interact and join into a singular computing infrastructure.

Instead of defining the specifics of how resources are produced for their decentralized commodity markets, Bittensor simply defines the market that will reward commodities coming to the network.

Bittensor’s overarching goal is to direct the power of digital markets toward building the most powerful artificial intelligence market and to ensure that the benefits and ownership of this system are accessible to the people.

4. 🎮 Parallel

Website | Twitter
Ticker: PRIME
Sector: Gaming

Parallel is a crypto-enabled trading card game that allows players to actually own their cards and other in-game assets, but the team behind it isn’t just stopping with trading cards: they’re incorporating AI!

Parallel Colony will introduce dynamic, non-playable characters (NPCs) with unique biographies shaped by AI and human interactions in the game over time. While Colony remains under development, the team intends to have a playable build ready for MacOS in Q1 2024, with mobile support on the way.

PRIME is the ecosystem token of Echelon Prime, the decentralized platform on which Parallel is being developed. It facilitates gameplay and value transfer, serves as the reward currency for match winners, and provides governance rights over the Echelon ecosystem.

5. ⚛️ ORDI

Ticker: ORDI
Sector: Sh*tcoin

ORDI is the first BRC-20 and was deployed by the creator of this Bitcoin token standard! As a memecoin, ORDI lacks fundamental value. However, its proximity to BTC could transform it into a high beta play for traders seeking to capitalize on the Bitcoin ETF approval narrative. 

While it's unclear how far ORDI can continue to run, the ticker is the market leader among BRC-20s and better positioned than any of its competitors in Bitcoin’s nascent memecoin sector to receive inflows.

Catching a ride on a memecoin rocketship has previously offered some a path towards profit, but it is vital to remember that you are always someone else’s exit liquidity when trading sh*tcoins! Ape with caution.

Not financial or tax 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. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here.

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