Picking Fundamentally Strong Web3 Tokens – An Actual Example
An FNDX Fundamentals portfolio token gained 16% in a single day. This token has been part of the FNDX portfolio from inception, with nearly a 25% allocation.
The bump it gave the portfolio was no stroke of luck. In fact, we wrote this post to show why FNDX was able to identify, evaluate and hold this token in the first place.
Chainlink is the largest protocol for decentralised oracles.
Oracles bring real-world data on-chain to participate in global blockchain applications as a first class citizen.
Oracles are what bridge blockchains & real life, critical for mainstreaming the Web3 economy.
This week, Chainlink announced its Cross Chain Interoperability Protocol, CCIP.
The big application is for financial institutions to bring “institutional-grade, multibillion-dollar real-world asset tokens into the world of DeFi”
In fact, Chainlink has trialled CCIP with a large number of banks and payment processsors already:
Among the banks signing on are Australia and New Zealand Banking Group (ANZ), BNP Paribas, BNY Mellon, Citi, Clearstream, Euroclear, Lloyds Banking Group, SIX Digital Exchange (SDX), and The Depository Trust and Clearing Corporation (DTCC)
FNDX and the LINK token
But this thread is also about how FNDX found & held $LINK: FNDX put over 100 tokens through its rigorous evaluation framework. Few made it through. Chainlink is one of them.
FNDX has tracked Chainlink for a few years now and it’s been part of the Fundamentals portfolio since inception. In fact FNDX has tracked CCIP since its announcement in 2021.
Chainlink fits FNDX’s thesis perfectly. The FNDX Fundamentals active strategy holds tokens that are likely to be the foundations of the Web3 economy.
The Web3 equivalent of Microsoft, Amazon, Akamai, Oracle, Salesforce, Cloudflare, Shopify on which today’s Internet is built.
Chainlink is one such foundational project: Decentralised oracles - cryptographically verifiable sources of truth - are essential to blockchains.
Chainlink’s also the market leader in oracle network, benefiting from the strong network effects inherent to Web3.
It’s token-incentivised, with public smart contracts, not a closed, centralised service - ie not a ‘web2 company in the web3 business’
It has sound token mechanics, verifiable growing on-chain usage and healthy liquidity.
It’s built a portfolio of products with strong use cases:
Smart contract automation
Proof of reserves for exchanges
Verifiable random # generator
CCIP itself
All centered around the core product, ie verifiable truth
Finally, it makes real money. CCIP is a multi million dollar product by itself.
In conclusion
All in all, Chainlink has one of the strongest chances of being a dominant player in tomorrow’s borderless, open Web3 economy. The mechanics, usage & liqudity make it an attractive token to hold.
FNDX spotted it. Held it. And is benefitting from its growth.
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