Sunday, August 11, 2019

DGD is a BUY now???

I think DGD needs no introduction.

I used to own a shit ton. I sold majority for disgusting profits. I exited the rest of my position at around breakeven. Recapped all of this in Jun 2019 when I was saying how DGD is crap and will never distribute their DAO funds.


Well, guess what happened?

Anyway, I've been an asshole on Twitter and I've been poking the shit out of their community on twitter - blasting their crap capital returns, terrible yield and below NAV valuations. Also saying that their team is either incompetent or fraudulent. I guess their community finally had enough of my shit and decided that I'm actually not an idiot and know what I might talking about?

Finally, the community has a proposal for a DGD burn for DAO ETH and it is looking like there are very decent chances that it will pass voting.


You can read the proposal here yourself.

Anyway, the game theory of this whole thing now that Pandora's Box is being opened (challenging the status quo that the ETH in the DAO should actually be redeemable) is not that difficult.

Optional Step 1 - team and insiders hold majority tokens and keep blocking the Burn vote until they themselves have bought enough cheap DGD to burn

Eventual Step 2 - the burn vote is approved, boom instant profit.

Anyway, guess what I did, being the opportunist that I am?


I freaking bought back some DGD! Lol!

Hasn't even been a month, but based on the current ratio of DGD/ETH, I'm already up 14% in ETH.

Anyway, this has CORPORATE RAID written all over it.

I wouldn't be surprised if some funds have been accumulating large positions in DGD simply so that they can take part in governance and vote for the burn, and then are able to instantly sit in ~100% unrealized ETH gains until they decide to burn out their position.

In fact, there is already a suspected party doing this which is involved in this quarter's voting.

By the way, there's nothing malicious with corporate raiding. It simply means investors' think that the business has shit prospects are their assets are worth more than whatever the business hopes to earn, so it's better just to dissolve the business and liquidate their assets.

The game theory of this is NOT complex at all (unless I'm missing something?). It is an eventuality that the burn will pass, and when it does, the price of DGD/ETH will shoot up to the realizable ETH value if DGD is burnt. It is not rocket science.

Even if the burn does not immediately pass this quarter, I'm highly optimistic that EVENTUALLY I will be able to sell at a decent price, near the NAV which is ~0.18 ETH. Incidentally, that is about a 100% profit for me if that happens. Though I'll concede that it is likely to pass with a 10% exit tax, meaning that the first burners will realize a DGD burn value of 0.168 ETH, but that's still a very decent +85% profit for me,

I was prompted to write this post after I saw this post by The Babylonians on how they decided to exit their DGD position.

Funny how fate has it, that after me being vocally against DGD for months, I've entered in a position just coincidentally after someone did a great independent fundamental review and decided to exit their position.

I wonder who will be right. Them? Me? Stay tuned to find out! By the way, in case it was not obvious, their base is using SGD, where my base is using ETH. So mileage may vary.

I'll update again later in the future to gloat about this insanely obvious opportunity. Or maybe I'll be wrong. Heh. Who knows?

Worst case, lose money only lor.

Haha!

2 comments:

  1. Haha you got rekt in believing the proposal had merit ��. No but in all seriousness, I now see why you left that community ;). The founder never have good argument to support his decisions nor debunk others arguments.

    ReplyDelete
    Replies
    1. exited with a ~10% profit, will probably blog about it later after the vote reveal is finished.

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