THE HYPER BOOM PORTFOLIO

By Teeka Tiwari
 The Hyper Boom Portfolio
By Teeka Tiwari

Since the dawn of technology,

one simple fact has remained the
same: When usage skyrockets,
profits boom.

We’ve seen this phenomenon play

out with personal computers,
phones, music players, TVs, and
VCRs.

One of the most famous examples,

though, is broadband internet.

Most of you probably remember

how slow dial-up modems were.
They had a top speed of 56
kilobits per second. 2003… when I recommended Apple to my retail
brokerage clients.
Today’s broadband cable offers speeds between
10,000 and 500,000 kilobits per second. That’s At around that time, Apple was having financial
nearly 200–9,000 times faster. problems. Even with the success of the iPod, the
company was still struggling. The problem was
In 2000, only 1% of U.S. homes had a broadband
that only people with an Apple computer could
internet connection. By 2020, that number had
use it. So the addressable market was just about
ballooned to over 77%.
3% of computer users.
As you can see from the chart above, broadband
But I knew the company was working on a
usage exploded from 2000–2020. And it led
version that would be compatible with any
to a subsequent surge in internet usage among
personal computer brand. And PC users made up
Americans. During the same span, internet usage
the other 97% of the market.
rocketed from 43% to nearly 75%.
It was a no-brainer that PC users would
And internet companies like Amazon, Adobe,
eventually fall in love with iPods – just as Apple
and Intuit saw their share prices explode during
users had. Except this time, Apple could sell
this period. They went up as much as 62,403%,
iPods to a market of hundreds of millions of PC
7,883%, 4,740%, respectively.
users instead of the tiny market of fewer than 10
I saw a similar phenomenon of usage play out in million Mac users.

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 And that’s exactly what happened…
By 2004, iPod usage had exploded... and so had
Apple’s stock. Since the lows of 2003, shares have
gone from a split-adjusted 91 cents to $155 this
year. My clients made a bundle.
So you can see the power of skyrocketing usage.
But here’s the thing…
It would’ve taken you an average of nearly 20
years to achieve those peak gains from Apple,
Amazon, Adobe, or Intuit. And if you’re at or near
retirement age… you just don’t have that much
time to wait.
Unless you’re already rich and willing to risk
massive amounts of money… you couldn’t make
a fortune from investing tiny grubstakes in the
Apples and Amazons of today.
The same is true for stock indexes.
For example, even if the S&P 500 rises 20%
per year for the next five years… it still won’t be
enough to bridge the funding gap between the life
you have and the life you want.
If you put $10,000 into the market today and it
compounds at 20% for five years, that’s $24,883.
Let that sink in for a moment…
It’s not a bad return, but it’s nowhere near what
you’d need to have the kind of retirement you
want.
That’s why my mission is so important. I’ve
built my newsletter career on helping everyday
Americans find a way to safely bridge the gap
between the financial life they have and the
financial life they want… without putting their
current lifestyle at risk.
And over my 32-year career covering the markets,
I’ve found no other asset that can rise higher and
faster than cryptocurrencies.
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Take bitcoin, for example…
When I first recommended bitcoin in 2016 at
around $420, usage was low. At that point, there
were only around 7 million wallets holding bitcoin.
But since then, we’ve seen that figure explode to
200 million. That’s a 2,757% increase in adoption.
If you followed my initial bitcoin
recommendation, you would’ve had the chance to
see peak gains of 15,055%. That’s enough to turn
every $1,000 into $151,550 in just five years.
As longtime readers know, what’s good for bitcoin
is also good for the entire crypto ecosystem…
just like broadband technology was good for the
entire internet ecosystem.
And when bitcoin booms, it can slingshot certain
altcoins to the stratosphere.
I call them “Catch-Up Coins” because just one can
represent a lifetime of wealth creation.
And thanks to an unprecedented event in the
crypto market, we’re about to see a Hyper Boom
in this tiny subset of altcoins.
Remember, a Hyper Boom occurs when you have
a massive influx of new users coming into crypto.
Catch-Up Coins are some of the most sensitive
coins to usage spikes. We find the best Catch-
Up Coins by buying into projects that are seeing
explosive usage, but their price action is either
trending down from its peak or trading sideways.
Let me explain…
We estimate less than 1% of people on the planet
realize these Catch-Up Coins even exist... Yet,
some of them are seeing massive adoption. But
while their usage rates are going up… their prices
are either down or trading sideways.
As I’ve shown you, usage is about to hit an all-
time high. This will trigger a Hyper Boom in the
Catch-Up Coins for the ages.
 It’ll be like a barrel of TNT… on
top of a crate of nitroglycerin… on
top of 100 tons of weapons-grade
plutonium… sending certain coins
to the stratosphere.

My readers saw this firsthand when

I recommended a tiny altcoin called
Neo (NEO) in February 2017. At
the time, Neo was trading at $0.12.

But usage was skyrocketing... (see

the chart at the top). Neo rocketed
156,753% in less than 10 months.
That’s enough to turn $1,000 into
over $1.5 million. That’s the Hyper
Boom in action.

Another example is a tiny altcoin I

recommended in November 2017
called Binance (BNB). At the time,
it was trading for $1.88.

But I predicted it would eventually

see massive growth in its usage.
And we saw that play out earlier
this year (see the chart to the right).

That’s because the number of

unique smart chain addresses on
Binance jumped from 650,000 to
93 million. That’s a growth rate of
14,244% (see the chart below).

Subscribers who bought Binance

when I initially recommended it
had the chance to cash in on peak
gains of 36,652%... Enough to turn
every $1,000 into $367,520.

Another example of the Hyper

Boom is Aave (AAVE). If you look
at its price chart from January
to April 2020 (next page), you’d
probably think, “This coin is a
dud.”

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 Now, look at its usage chart
(second image). By June 2020, it
was hitting new highs…

The Hyper Boom in Aave usage

led to a corresponding boom in
prices...

From January to December 2020,

Aave’s price boomed from $1.52
to $90.91 – a 5,881% gain. That’s
enough to turn every $1,000 into
$59,810.

In this special report, I’ll reveal

six Catch-Up Coins I believe the
Hyper Boom will catapult higher.

That’s because these projects will

have the most important thing
working in their favor: explosive
usage.

Today, there are only 200 million

people actively involved in this
asset class. But the adoption rate
for crypto is growing faster than
the adoption rate of the internet…
Which means we’ll have billions
of people in this space over the
next few years.

The next wave of blockbuster

crypto projects will help bitcoin
and Ethereum reach those billions of people.
They’re doing that by adding safety features…
interoperability… and simpler user interfaces to
the world’s two biggest blockchain networks.
And because they’re partnering with larger
projects, they’re already seeing immediate
increases in their usage.
Remember, usage drives value. And where I see
the most usage right now are in Catch-Up Coins.
Friends, no stock or stock index in the world can
move fast enough or far enough to bridge the gap
between the financial life you have and the one
you want.
The best way I know of to accelerate your wealth-
building is with my Hyper Boom Portfolio.
So, if you still aren’t where you want to be
financially… I encourage you to act now and
position yourself in these six Hyper Boom
Catch-Up Coins before the market realizes their
potential.

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 A few important notes to remember before
we get started:
• Immediately after our buy
recommendations, we often see an initial
price spike. We understand this can be
frustrating. But don’t worry. This is par
for the course in the cryptocurrency space.
Most of the time, the recommendation falls
back below our buy-up-to price. Use a limit
order. And just be patient and let the price
come to you.
• At Palm Beach Confidential, we look for
asymmetric bets. These are trades where
you can take a small starting stake and
make incredible returns. It’s all on our
journey to make life-changing gains without
putting your current lifestyle at risk.
That’s why it’s so important you use
rational position sizing. We recommend
$200–400 per idea if you’re a smaller
investor, or $500–1,000 if you’re a bigger
investor. Don’t risk more than you’re
willing to lose outright.
• We’ve listed the tokens in this report in
alphabetical order, not necessarily the order
we suggest you purchase them. As always,
use small, uniform position sizes to create
a basket of these coins in your own crypto
portfolio. Using this asymmetric betting
style, you can set yourself up for outsized
gains without taking outsized risks.
Now let’s get to the Catch-Up Coins in my Hyper
Boom portfolio…

Proof the Hyper Boom Is About to Hit

The Hyper Boom I’m seeing all has to do with one thing: crypto adoption.

There’s about to be an explosion of crypto adoption on a scale we’ve never seen before. I believe
this unprecedented wave of new people coming into crypto will unleash a Hyper Boom of usage
that no one has ever seen before in the 12 years that cryptos have been around…

That’s because what’s happening right now can ONLY happen once…

You see, the adoption of crypto is tiny compared to other technologies. It’s just 200 million
people out of a total addressable market of more than 5 billion internet users.

But according to fintech analytics company Portfolio Insider, the current bitcoin adoption rate
has been outpacing the internet’s user growth rate and will reach 1 billion users within the next
four years.

That’s nearly two times faster than it took the internet to reach that landmark.

But what excites me most is the number of major U.S. financial firms offering crypto services to
their clients. Just look at the number of people they could potentially bring to this emerging asset
class:

• Wells Fargo: 70 million

• Bank of America: 66 million

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 • JPMorgan Chase: 55 million

• BNP Paribas: 33 million

• Deutsche Bank: 24 million

• Morgan Stanley: 8.2 million

In total, banks with a combined 300 million checking accounts are coming on board. For the first
time, customers of hundreds of U.S. banks will soon be able to buy, hold, and sell bitcoin through
their existing accounts.

Not only that, but these major players are planning to roll out bank accounts that pay interest in
bitcoin. Think about that…

Imagine if you could just log into your checking account, and with a click of a mouse, transfer
some money to another account… but one that paid interest in bitcoin.

What do you think that will do to the number of bitcoin users? It’ll go through the roof.

Second, credit card companies are starting to bring crypto into their platforms. This influx of
potential crypto users is massive.

• Visa recently launched crypto-linked cards that make it easy to convert and spend cryptos
at 70 million merchants worldwide… and it’s been a huge success. Visa has 3.3 billion users.

• Mastercard is also offering a card option to people wanting to spend their digital assets
anywhere Mastercard is accepted. That’s another 975 million potential users.

And third, we’re also seeing big tech finally get serious about offering bitcoin on their networks.

• Amazon’s payment acceptance team is looking for a crypto expert to lead their team.
Amazon would bring in as many as 300 million users.

• Twitter is also embracing bitcoin… That’s another potential 330 million users.

• And Square could bring in as many as 210 million users.

All in, we are looking at more than 5 billion potential new users about to come into bitcoin.

We’ve never seen a tsunami of new users coming into crypto like this before.

And bitcoin is just what I call the “gateway drug” to the rest of crypto. Of all these new people
coming into bitcoin, many will filter into smaller coins.

And because these coins are much smaller than bitcoin, they are much more sensitive to changes
in usage…

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 That’s where Catch-Up Coins come in.

The Catch-Up Coins in my Hyper Boom portfolio are the best I’ve found that should benefit from
the huge increase in usage. These are projects I feel strongly will attract millions of users once the
world wakes up to their incredible potential… and which we can get into before they take off.

Because as I showed you above, the bigger the usage, the bigger the boom. And the coins in this
portfolio aren’t just primed to see a boom... They’re primed for a Hyper Boom.

Hyper Boom Pick No. 1: Celo (CELO)
Imagine a world where there’s never a need for
a physical bank… customer service… or staff of
any kind. That’s not a wild science fiction dream
anymore. It’s happening right now.
In what may prove to be among the most valuable
use cases for blockchain, we’re witnessing the
birth of a brand-new distributed financial system
springing up to parallel, and ultimately, rival the
traditional financial system.
I’m talking about decentralized finance (DeFi).
And it will do for finance what the internet has
done for so many other businesses: Replace a
high-cost middleman with a low-cost one.
DeFi uses cutting-edge blockchain technology
to slash costs by doing away with the need for
trusted third parties.
Eventually, it’ll make banking, borrowing,
lending, and investing more accessible and
cheaper for billions of people.
impossible to remember and too easy to input
incorrectly – it aims to reduce one of the main
barriers of entry to crypto.
Today, there are nearly 4 billion smartphone
users around the world. And Celo opens the doors
to new possibilities to every one of them, like
DeFi applications and payments.
But where it’ll really make a difference is with
those who are locked out of traditional finance.
Take, for instance, the nearly 2 billion adults
around the world who don’t have access to
financial services.
Of these individuals, an estimated two-thirds
own a smartphone. That’s over 1 billion potential
users who could use Celo for financial services
previously unavailable to them.
Celo has also gotten support and interest from
many companies around the world.
Today, over 140 projects and companies are
expanding on its ecosystem.

That’s where our first pick in this special report
comes in: Celo (CELO).
Celo gives anyone in the world with a smartphone
access to public blockchains and financial services
such as banking and lending.
Celo is designed for mobile use and offers speed,
transparency, and low costs. By using phone
numbers as public keys instead of a long, random
string of words and letters – that’s almost
One of its latest partnerships is with Deutsche
Telekom, the largest telecommunication provider
in Europe by revenue, with over 242 million
mobile customers.
The mobile carrier will allow validators on the
Celo network to send verification text messages to
its users. This improves the security and reliability
of decentralized phone verification, which is what
makes the Celo blockchain easy to use.

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 In addition, T-Systems MMS,
the subsidiary of Deutsche
Telekom, will operate a validator
group to help secure the network
and further develop Celo’s
infrastructure.

To date, Celo has raised over

$65 million from several big
players in the industry, including
Polychain Capital, Coinbase
Ventures, Dragonfly Capital,
LinkedIn co-founder Reid
Hoffman, and founder of Twitter
and Square Jack Dorsey.

These are just a few of the many

institutions and individuals
backing Celo’s journey to become
the premier decentralized global
payment infrastructure for entry-
level users.

The Celo Hyper Boom

Remember, a Hyper Boom occurs
when you have a massive influx of
new users coming into crypto.

Catch-Up Coins are some of the

most sensitive coins to usage
spikes. We find the best Catch-Up
Coins by buying into projects that
are seeing explosive usage, but whole story.
their price action is either trending down from its
Now, CELO has begun to move up, which means
peak or trading sideways.
it’s in the initial stages of its Hyper Boom phase.
When CELO first came on our radar, its price had
But we think there’s a much larger move ahead in
plunged 70% from its April peak. Since then, it’s
the coming weeks as Celo launches its cross-chain
seen an increase in usage and its price has rallied
bridge to Ethereum. This will enable users to
(see the first chart above)...
move assets between the two networks.
You can see the increased usage in the second
In the past, an efficient bridge to Ethereum has
chart above...
proven to be a key growth element for other
As you can see, the price action is not telling the blockchains. And we expect the same for Celo.

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 The bridge is called Optics. And its first
connection point will be to Ethereum. But it also
offers easy plug-in solutions for other chains.
Following Ethereum, it’ll connect to other major
networks like Solana, Polkadot, Cosmos, and
more.
Pair this with the networks recently launched
$100 million fund to bootstrap DeFi adoption on
the Celo network – and we can expect massive
growth ahead.
Protocols participating in expanding the
DeFi ecosystem on Celo include: Aave, Curve,
SushiSwap, 0x, Chainlink, and many more.
As you can see, Celo is rapidly approaching a
critical moment in its early adoption phase that
presents us with an opportunity to get in early
before the Hyper Boom really takes off.
What’s It Worth?
As mentioned above, there are about 4 billion
smartphone users. And 1.3 billion of them are
unbanked. This makes them prime targets for
Celo’s services.
Let’s say Celo can capture 15% of unbanked
individuals who own a smartphone – or about
200 million users – over the next five years.
If each of them makes just one transaction per
day… the network would process over 73 billion
transactions per year.
Now, let’s assume each transaction costs one cent.
And it’s paid in CELO. That would translate to
roughly $730 million in yearly demand for CELO.
To get a sense of what this means for the price of
CELO, we can compare it to Ethereum.
In August, Ethereum users spent nearly $700
million on transaction fees. That’s about $8.3
billion in annual demand for ETH.
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Ethereum ended August with a $404 billion
valuation. That’s about 49 times the annual
demand for ETH ($404 billion / $8.3 billion =
48.7).
Based on our forecast above, if we give CELO the
same multiple as Ethereum… its value would be
about $35.5 billion ($730 million x 48.7).
At a market cap of $35.5 billion, each token
would be worth $144.05 based on the current
token supply… or a 2,747% increase from today’s
price.
That’s enough to turn a $500 investment into
$14,234. And every $1,000 investment into
$28,468.
And remember, this estimate only assumes Celo
captures 5% of smartphone users (banked and
unbanked). If Celo could double that projected
market penetration rate… under a blue-sky
scenario, each CELO would be worth $288.10.
That’s a 5,593% increase from today’s price,
enough to turn $500 into $28,468 and $1,000
into $56,936.
It’d take nearly 47 years to make those types of
gains in the stock market.
By adding CELO to the portfolio today, we’re
investing in the infrastructure that will improve
financial services for the world’s unbanked
population.
Action to Take: Buy Celo (CELO).
Buy-up-to Price: $12
Stop Loss: None
Buy It On: Coinbase (Under the ticker CGLD),
KuCoin, Binance
Store It On: Click here for our step-by-step
instructions on storing CELO tokens using Celo
Wallet.
 Hyper Boom Pick No. 2: Curve (CRV) transacting on centralized exchanges such as
Coinbase, Kraken, and Binance, despite their
Consumer adoption of technology is driven by
drawbacks.
making things cheaper, easier, and faster.
The next project will help bring the promise of
Just look at your own buying habits. Why do you
cheaper, safer, and more efficient DEXs to reality.
use Amazon instead of taking a trip to a local
It’s called Curve (CRV).
store? Why did you stop visiting Blockbuster and
start using Netflix? Similar to Uniswap, Curve uses liquidity pools
to exchange assets instead of matching buyers
They’re cheaper, easier, and faster – that’s
with sellers. It’s also a non-custodial exchange.
why. And when it comes to disrupting financial
It places your tokens in smart contracts, which
institutions and services, DeFi will be a wrecking
means you can withdraw them at any time.
ball of cheaper, easier, and faster solutions.
Curve specializes in swapping stablecoins. These
And that brings us to our next project. It’s the
are cryptos pegged to another asset, such as the
third-largest decentralized exchange (DEX) by
U.S dollar. For example, on Curve, you can swap
trading volume.
U.S. dollar stablecoins like USDT and USDC… It’s
A DEX is simply an exchange market that doesn’t the go-to exchange for these types of transactions.
rely on third parties to hold customers’ funds.
The advantage Curve has over other DEXs is its
Instead, trades occur directly between users
ability to minimize slippage.
(peer-to-peer) through an automated process.
Slippage occurs when the asset prices change
Unlike centralized exchanges such as Coinbase
from the time you submit your order to the time
and Binance, a DEX doesn’t rely on third parties
the order executes on chain. And depending
to custody users’ funds. Instead, trades occur
on the depth of the liquidity pool and market
directly between users (peer-to-peer) through an
volatility, slippage can severely eat away at profits
automated process.
when exchanging assets.
By removing middlemen, DEXs speed up
Curve’s algorithm minimizes slippage and trading
transaction times while reducing costs. The lower
fees. But this is only possible when trading tokens
fees attract more users and – in turn – increase
pegged to the same asset. That’s why Curve isn’t
profits for its token holders.
currently a competitor to Uniswap (more on this
Today, there are DEXs operating for most below).
blockchains. For instance, Uniswap is the biggest
To increase liquidity, Curve uses incentives.
DEX on Ethereum.
It allows users to earn income by depositing
But as with any new technology, DEXs have had their assets to liquidity pools to earn trading
some growing pains. fees. In addition to trading fees, select pools on
Curve also generate income by sending tokens
Despite being more efficient and safer than to lending protocols like Compound and Yearn.
centralized exchanges… the lack of liquidity so finance for even more yield.
far has made trading on DEXs slow, expensive,
and clunky. And it’s why traders have preferred Those rewards have helped Curve create some of
the deepest liquidity pools in DeFi.

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 And deeper pools mean lower
slippage when trading assets. This
has made Curve a powerhouse in
the DEX space, generating nearly
a quarter-billion dollars in trading
volume on any given day.

But Curve’s innovation doesn’t

stop there. The team recently
launched an upgrade, which
introduced dynamic pegs.

The dynamic peg pools differ

from the original pools by
allowing exchange rates to drift
slightly when necessary. Yet,
they’ll only drift if the move
doesn’t cause liquidity providers We’re excited to see this unfold, as these
to take a big loss. networks offer much cheaper transaction fees
compared to Ethereum – opening the doors to
The upgrade will help create highly efficient everyday users.
liquidity pools that aren’t pegged to the same
asset. And that could eventually give Curve But despite these new developments and its
the capability to move beyond only offering growing usage, Curve protocol’s token sold off in
transactions for pegged crypto assets. recent months.

Earlier this year, Curve launched a tri-crypto The Curve Hyper Boom
pool consisting of Ethereum, bitcoin, and USDT.
Remember, a Hyper Boom occurs when you have
Today, the pool holds over a half-billion dollars
a massive influx of new users coming into crypto.
in assets and generates over $50 million in daily
trading volume. Catch-Up Coins are some of the most sensitive
coins to usage spikes. We find the best Catch-
That being said, we believe both Curve and
Up Coins by buying into projects that are seeing
Uniswap will continue to thrive and coexist
explosive usage, but their price action is either
together. That’s because Curve is only focused
trending down from its peak or trading sideways.
on the largest assets in the space… not the small-
and medium-sized tokens Uniswap specializes in. We’re seeing that set-up with CRV…

In addition to its recent upgrades, Curve is Look at the chart above, which shows the CRV
expanding its operations to other networks. token price sell-off that started in April.

It recently launched on Polygon, xDai, and Meanwhile, if we look under the hood, assets
Fantom. It also plans to launch on Avalanche, held on the platform have exploded (see chart on
Celo, and the popular layer 2 scaling solution, following page)…
Arbitrum, soon.

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 As you can see, the market is
missing the bigger picture on
Curve. And there’s another
“hidden” catalyst that will boost
the token higher…

Now, to top off the recent

developments and increase in
usage, Curve is a must own token
today thanks to its recent drop in
issuance.

Last month, Curve had its first

anniversary. To celebrate this
milestone, the platform reduced
its liquidity mining rewards by
30%.
Like many DeFi protocols, Curve rewards
liquidity providers with a percentage of its tokens
as an incentive to boost usage. By drastically
reducing the emission rate of new tokens, we’ll
likely see massive appreciation in the price of the
CRV token.
That’s good for CRV token holders.
For instance, the last time bitcoin halved its
issuance rate, the price of BTC rocketed over
650%. We expect a similar outcome for CRV.
What’s It Worth?
Since the CRV token began its descent in April,
the protocol has generated roughly $1 million
each week on average from trading fees.
We believe this is only the beginning as Curve
expands its operations to other networks and
millions of new users enter the DeFi space.
Looking back over the past year, DEX monthly
trading volume surged from $13.57 billion to
$78.5 billion… a 478% increase.
Let’s assume DEX trading volume grows at just
one-third of this rate (159%) over the next three
years. And we’ll also assume Curve maintains
its market share in the DEX space along with its
current trading fees.
That would imply roughly $17.6 million in weekly
earnings for its stakeholders, or just over $917
million in annual earnings over the next three
years.
To value these earnings, we’ll compare Curve to
Coinbase, the largest crypto exchange in North
America.
Today, Coinbase trades at 25 times its earnings. If
we apply this same earnings multiple to Curve, its
market cap would go to $22.9 billion (25 x $917
million).
Due to its cutting-edge technology and much
larger growth potential, we believe Curve could
fetch a multiple at least three times greater than
Coinbase.
In that case, Curve would be worth $68.8 billion
– or $152.76 per token based on current token
supply. That’s a 5,356% increase from today’s
price. Enough to turn a $500 investment into
$27,278 and every $1,000 investment into
$54,556.

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 But we believe Curve could sustain its current
478% growth rate over the next three years if
it remains the go-to DEX for swapping tokens
pegged to the same asset.
Under this blue-sky scenario, Curve would
generate $10.2 billion in annual income. And if
we give Curve the same valuation as Coinbase,
the project would be valued at $254 billion (25 x
$10.2 billion).
In this case, each CRV token would be worth
$564.13 based on current token supply.
That’s a 20,047% increase from today’s price.
Enough to turn a $500 investment into
$100,737... And every $1,000 investment into
$201,474.
It’d take nearly 70 years to make those types of
gains in the stock market.
We believe this is a conservative target for Curve.
The platform plays a critical role in the DeFi
space for swapping tokens pegged to the same
underlying asset at the cheapest cost. And this
aspect of DeFi is only set to grow further as the
trend rolls out.
Action to Take: Buy Curve (CRV).
Buy-up-to Price: $5
Stop Loss: None
Buy It On: Coinbase, Gemini, Binance,
Uniswap, 0x Matcha, SushiSwap
Store It On: MyEtherWallet or Ledger
Hardware Wallet
Hyper Boom Pick No. 3: Lido (LDO)
By the end of Q1 next year, Ethereum will
complete one of the biggest upgrades in the
history of software: Ethereum 2.0.
Ethereum is the second-biggest cryptocurrency
behind bitcoin in terms of market cap. And
the Ethereum network processed roughly $2.5
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trillion in transactions last quarter, making it
the most popular blockchain in the world by
transaction value.
Due to its exponential growth, Ethereum is
seeing massive traffic on its network. So it began
upgrading the network last year. The full upgrade
should be completed by the first quarter of 2022.
We expect Ethereum 2.0 to bring a wave of new
users to Ethereum. That’s why I believe it will
eventually become the next trillion-dollar coin
behind bitcoin.
The full rollout of Ethereum 2.0 will take place in
three phases: Phase 0, 1, and 2. Phase 0 launched
December 1. The next phases are expected to
launch in 2022.
In Phase 0, Ethereum launched the Beacon Chain
and deployed the proof-of-stake (PoS) consensus
mechanism.
The Beacon Chain acts as a coordination layer for
Ethereum 2.0. Its key function is to manage the
PoS protocol for itself and all the shard chains.
Today, Ethereum uses proof-of-work (PoW) for
consensus. That involves miners using specialized
computer equipment to verify transactions.
Without getting into the weeds, PoS differs
from PoW because it uses transaction validators
instead of miners. To process a block, transaction
validators must stake cryptocurrency. When they
successfully validate and add a block, they’re
rewarded in more cryptocurrency.
Today, ETH token holders can earn roughly 5%
annual percentage yield (APY) as an incentive to
migrate to the Beacon Chain.
That’s nearly four times the annual yield of the
10-year Treasury Bond and four times the annual
average dividend on the S&P 500.
Here’s the problem…
 To migrate your tokens, you need to run an ETH2
validator and transfer at least 32 ETH (worth
about $108,800 at today’s prices). Plus, you
won’t have access to your tokens until Ethereum
2.0 goes live sometime early next year.
So if you don’t have hundreds of thousands
of dollars of ETH to spare… or the technical
know-how to transfer your tokens to the Beacon
Chain… you’re out of luck. You can’t earn that
juicy 5% yield on your ETH.
That’s where our next pick comes into play…
It’s created a simple solution that allows anyone
who owns ETH to deposit their tokens and safely
start earning interest almost instantly – without a
long-term commitment.
The name of the project is Lido DAO (LDO).
It’s the largest decentralized ETH2 staking
solution – with over 1 million of the 7.5 million
ETH currently staked in ETH2 contracts.
[Staking is when you hold (“stake”) your crypto
assets to their respective protocol. That helps
secure the network by guaranteeing that your
staked crypto is available to validate transactions
on the underlying blockchain. In return, you re-
ceive more crypto as a reward. It’s similar to earn-
ing a dividend from a stock or yield from a bond.]
Lido is one of the most efficient and secure
decentralized staking platforms we’ve come
across. And that will expand its use case beyond
Ethereum (more on that in a moment).
First, let’s discuss security.
The node operators who manage the Lido
network don’t have direct access to your assets.
Instead, the network holds them in smart
contracts. So you retain custody.
On top of this, Lido governance token holders
only select the top node operators with proven
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track records to manage the network. This helps
protect against slashing.
Slashing is a risk management strategy used by
PoS networks. The network can automatically
punish bad or malicious node operators by
deducting (slashing) a portion of the tokens they
stake.
Anyone who stakes with a node operator who’s
been slashed could see a portion of their stake
reduced as well. And in the rare occurrence this
happens, Lido offers insurance to protect its users
against slashing penalties.
And it’s simple to use, too…
When you stake ETH on Lido, you receive a token
that represents your staked ETH (stETH) in
return at a ratio of 1:1. So if you deposit 100 ETH,
you’ll receive 100 stETH in return.
By tokenizing staked Ethereum, Lido allows
you to access your staked assets at a moment’s
notice. For instance, you can use your stETH as
collateral, lend it, or sell it.
This is an advantage to self-staking that can’t
be understated. And that’s why we believe
Lido’s services will see massive demand beyond
Ethereum.
As you can see, there are many advantages to
staking with Lido. And despite its growth in
usage, we’ve seen a dramatic drop in LDO’s price.
The Lido Hyper Boom
Remember, a Hyper Boom occurs when you have
a massive influx of new users coming into crypto.
Catch-Up Coins are some of the most sensitive
coins to usage spikes. We find the best Catch-
Up Coins by buying into projects that are seeing
explosive usage, but their price action is either
trending down from its peak or trading sideways.
 When Lido initially came on our
radar, it had dropped more than
70% from its May peak. But since
then, it’s started to see Hyper
Boom in usage and subsequent
price rally (see the first chart to the
right).

And as you can see in the second

chart, usage is increasing...

As you can see, the increase in

staked assets directly leads to an
increase in profits for LDO token
holders. So this is exactly the price
movement we expected.

That’s because 5% of interest

generated from staking goes to the
Lido treasury, which is controlled
by LDO token holders. And what’s
more is Lido’s staking services
don’t start and end with Ethereum.

That is why we expect usage to

soar as Lido expands to other
networks…

In March, Lido began providing

staking for Terra’s native token,
LUNA. So just like with stETH,
LUNA holders can earn interest
while maintaining liquidity and
usability.
Since its launch on the Terra network, 16% of all
circulating LUNA is being staked through Lido.
And just last week, Lido expanded its staking
services to Solana... Next up is Polygon. Both
networks reward users who stake their tokens to
secure the network.
We believe the demand for liquid staking
solutions will be massive as decentralized finance
takes off.
Token holders want to earn rewards on their
crypto assets… while retaining the flexibility of
transacting the native token. Lido gives them the
best of both worlds.
We believe Lido will become the go-to project for
liquid staking solutions. That’s why it’s attracting
attention from some of the top venture capital
firms in crypto.
Earlier this year, Lido raised $73 million from
Three Arrows Capital, Alameda Research,
Coinbase Ventures, and others.

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 That’s a huge stamp of approval by some of the
smartest money in the crypto space.
What’s It Worth?
To be clear: We’re buying the Lido (LDO) token,
not staking crypto assets on the Lido platform.
So we’ll benefit as the price of LDO rises from the
Hyper Boom.
Lido splits the income it generates in three ways:
90% goes to token holders who stake on Lido; 5%
to node validators; and 5% to the Lido treasury.
LDO token holders control the treasury. And
in the future, we expect token holders to pay
themselves with increasing profits from the
treasury.
To value Lido, we’ll project its combined income
from Ethereum and the other cryptos staked on
the platform.
Based on the staking rates of other PoS networks
like Cardano, Solana, and Polkadot… we estimate
about half of all circulating ETH will be staked
once ETH 2.0 goes live.
Because Lido is the best platform we know of
for liquid staking, we believe it could eventually
capture one-third of all staked Ethereum. This
would translate to about 19.54 million ETH.
Once Ethereum transitions to Ethereum 2.0, we
project its staking rewards will drop to about 2%
to account for the increasing number of token
holders looking to generate income.
That would equate to roughly 390,800 ETH
per year in earnings. And 5% of that – or about
19,540 ETH – would go directly to Lido treasury
(and to LDO token holders).
I predict ETH will hit $25,000 in the coming
years. At that price, Lido would be earning $488
million per year in income.
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To value Lido just based on its ether holdings, we
can compare it to a traditional asset manager like
BlackRock, the largest investment management
service in the world.
Today, BlackRock is valued at 25 times its
earnings. I believe we could easily fetch a
multiple twice that since Lido’s growth potential
is much higher.
Applying a 50 multiple to Lido’s annual income
from ETH would give us a value of $24.4 billion
($488 million x 50).
But remember, Lido is expanding its services to
other networks and applications.
Today, the value of crypto assets outside of
bitcoin and Ethereum is $956 billion. We believe
it could easily grow 5x over the coming years –
to $5 trillion. (For comparison, the value of the
entire gold market is $11 trillion.)
And many of these projects incentivize users to
stake their tokens.
Let’s assume Lido tokenizes just 2% of these
assets. And it earns users 10% per year. If we
assume the same 5% take, the Lido treasury could
see an additional $500 million in income.
Applying a 50 multiple to that would add $25
billion in value to the LDO token. Combined with
its ETH income, Lido could see $49.4 billion in
value.
With a 1 billion token supply, that would come
out to roughly $49.43 per token, or an 891%
increase from today’s price.
That would turn a $500 investment into $4,953.
And every $1,000 investment into $9,906.
But I think Lido has the potential to capture
much more than 2% as it becomes a global leader
in liquidity staking solutions – just as it is with
ETH today.
 Over time, I believe we could see Lido capture
as much as 30% of the altcoin market. And if we
assume the same 10% interest on these staked
assets and a 5% take for the Lido treasury, Lido
would see $7.5 billion in annual income.
That would translate to an additional $375 billion
in value for Lido and its LDO token holders if we
give it an earnings multiple of 50.
Add in the market value from Ethereum staking
income and you have a combined market cap of
$399.4 billion ($24.4 billion + $375 billion).
Under this blue-sky scenario, we would see each
LDO token valued at $399.43, a 7,905% increase
from today’s price.
That would turn a $500 investment into $40,023.
And every $1,000 investment into $80,046.
It’d take nearly 63 years to make those types of
gains in the stock market.
Friends, by owning LDO we stand to profit
from income-generating opportunities across
virtually every network via staking. It’s a massive settle disputes by verifying data on the Ethereum
opportunity.
That’s why you want to take action now and add
it to your portfolio.
Action to Take: Buy Lido Dao (LDO).
Buy-up-to Price: $12
Stop Loss: None
Buy It On: Uniswap, SushiSwap, 0x Matcha
Store It On: MyEtherWallet
Hyper Boom Pick No. 4: Polygon (MATIC)
If you’ve recently tried to make a transaction on
Ethereum, you know fees can skyrocket when
network traffic is high. A simple transaction can
cost $10. And a more complicated one – like
swapping assets on a DEX – can cost more than
$75.
www.palmbeachgroup.com
As millions of new people discover the benefits
of DeFi, they’re flocking to Ethereum. And it’s
creating congestion on the network. These are
just normal growing pains.
Nevertheless, if blockchain networks want to
onboard the next billion users, they need to find
a way to reduce network fees. And while Ethe-
reum is working on some promising upgrades
(like Ethereum 2.0)... the next pick is providing a
solution now.
It’s called Polygon (MATIC). And it will help
Ethereum increase transaction speeds by 100x and
reduce transaction costs to a fraction of a penny.
Polygon is a layer-2 scaling solution that uses
proof-of-stake sidechains to help Ethereum scale.
Polygon can plug directly into Ethereum
with its Plasma sidechain. The key difference
between Plasma and other sidechains is: Plasma
can submit proof of transactions back to the
Ethereum mainnet.
This drastically improves security since you can
network – one of the most secure in the world.
This is critical to Polygon’s success. Because
a faster and cheaper blockchain doesn’t mean
much if it isn’t secure.
What’s more is Polygon allows Ethereum Virtual
Machine (EVM) compatible apps to easily deploy
their smart contracts to Polygon. With just a few
clicks, these projects can launch their platform
on the Polygon network, opening the doors to
everyday users.
And to incentivize new users to join Polygon, it
recently launched a $150 million “DeFi for All”
fund in April.
As you might’ve guessed by the name, the fund’s
goal is to attract millions of users who can’t afford
– or don’t want to pay – the higher transaction
fees on Ethereum.
17
 The program will run for 2–3
years and incentivizes users with
rewards to participate in Polygon
DeFi applications such as lending,
borrowing, and yield farming.

Seemingly overnight, major DeFi

projects like Aave, SushiSwap, Curve,
0x, and others launched on Polygon.

Since the announcement of the

program, over 55 million new users
have flocked to Polygon. That’s
up from 290,000 – a whopping
19,000% increase.

Despite this massive increase in

usage, MATIC’s token price has gone
nowhere. And that’s setting up a
Hyper Boom for Polygon.

The Polygon Hyper Boom

Remember, a Hyper Boom occurs
when you have a massive influx of
new users coming into crypto.

Catch-Up Coins are some of the

most sensitive coins to usage spikes.
We find the best Catch-Up Coins by
buying into projects that are seeing
explosive usage, but their price
action is either trending down from
its peak or trading sideways.

We’re seeing that set-up with And if we look at the recent news of big exchanges
MATIC. Despite incredible user growth, MATIC and wallet providers giving Polygon users direct
has fallen as much as 73% from its May peak access to the network, we can expect usage to
before starting to rally (see first chart above). skyrocket even more.

But diving further into the data, you can see
(in the second chart) Polygon network usage
is exploding – and that’s why its price is
rebounding.
This is exactly the buy signal I look for when
identifying a Hyper Boom.
Major exchanges OKEx and Binance recently
allowed their users to directly withdraw crypto
assets from Polygon. Additionally, Coinbase and
Trust wallets also enabled support for Polygon’s
decentralized applications (dApps). Combined,
both wallets serve over 6 million users.

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 And just this month, popular DeFi mobile app
Dharma integrated Polygon. Its users can now
directly deposit funds from their bank accounts to
the app and trade over 2,000 tokens on Polygon
DEXs.
And as Polygon usage skyrockets, its token will
follow suit. So let’s see how high it can go…
What’s It Worth?
Polygon users are making over 6.5 million
transactions per day, up 185x since the start of
the year. That’s over five times more than the
Ethereum network is processing.
While this may seem like a lot, there’s still plenty
of room to run. For instance, Visa sees an average
of 150 million transactions per day.
We project Polygon could eventually see twice as
many transactions as Visa per day to 300 million
in the years ahead, as it increases its array of
financial products. And as demand goes up, so
will fees.
Let’s say transaction fees jump from 1/100 of a
penny to one cent due to increased usage. That’s
still 1,000 times lower than fees on Ethereum.
Under that scenario, Polygon would generate $3
million in transaction fees each day.
That’s roughly $1.1 billion each year.
To get a sense of what this means for MATIC,
we can compare its earnings to a financial
powerhouse like Visa or Mastercard. Both trade
at a price-to-earnings (P/E) multiple of 47.
[The P/E ratio measures how much investors are
paying for each dollar of current profits.]
If we applied a 47 multiple to Polygon, it would
be worth $51.5 billion.
But we believe MATIC could fetch a premium
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www.palmbeachgroup.com
five times greater than that since Polygon is a
disruptive technology and will experience much
higher growth rates than Visa or Mastercard.
In that case, Polygon’s value would be about
$257.3 billion – or $38.68 per token based on
today’s circulating token supply.
That’s a 2,765% increase in price from today’s
levels. Enough to turn a $500 investment into
$14,327. And every $1,000 investment into
$28,654.
But we think Polygon has the potential to go even
higher.
You see, blockchain technology offers a more
secure network to perform transactions than
legacy systems. And on top of this, it’s able
to settle transactions between two parties in
seconds, not days.
For these reasons, we believe we could see one
third of all non-cash payments processed on the
Polygon network in the years ahead.
It’s estimated we’ll see just over 1 trillion non-
cash transactions in 2023. And if one third of
these transactions are processed on Polygon,
that means the network would process nearly
365 billion transactions per year, or 1 billion
transactions per day.
Now with this level of transactions, we’d expect
Polygon network fees to climb higher as demand
to use the network surges. To project Polygon’s
potential network fees, we’ll use 5 cents per
transaction.
And while this is much higher than today’s cost
to use the network, it’s a fraction of the cost
credit card companies charge merchants for each
purchase.
That would translate to roughly $18.2 billion in
yearly income for the Polygon network.
 Now, by this stage, we’d assume Polygon is past
its hyper-growth phase. For this reason, we’ll
give these earnings the same multiple as Visa and
Mastercard of 47.
That would put the Polygon network at an $857
billion valuation. Or $128.81 per MATIC token
(based on the current token supply).
That’s a 9,442% increase in price from today’s
levels. Enough to turn a $500 investment into
$47,708. And every $1,000 investment into
$95,416.
It’d take 64 years to make those types of gains in
the stock market.
By owning MATIC, we’re positioning ourselves
to profit from a much-needed scaling solution for
Ethereum, the second-most popular crypto in the
world.
As Polygon onboards the next billion users, its
price will boom higher. So let’s act now before the
floodgates open.
Action to Take: Buy Polygon (MATIC).
Buy-up-to Price: $2.50
Stop Loss: None
Buy It On: Coinbase, Gemini, Binance, Uniswap,
0x Matcha
Store It On: MyEtherWallet or Ledger
Hardware Wallet
Hyper Boom Pick No. 5 Ren (REN)
As I’ve mentioned above, DeFi will completely
disrupt traditional finance as we know it.
Right now, DeFi protocols already allow users to
trade billions of dollars in assets… all without any
human intervention.
In the future, it’s my belief every asset will be
tokenized. That means stocks, bonds, titles of
ownership, music rights – everything of value
– will have its ownership rights secured by a
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blockchain. And you’ll be able to exchange that
value with a click of a mouse – just like you do
when you send an email.
But some great crypto projects are locked out of
this trend. Let me explain…
Most DEXs only allow you to trade Ethereum-
based ERC-20 tokens on their platforms. If it’s
not an ERC-20 token… you can’t trade it.
According to CoinMarketCap, there are over
8,000 cryptocurrencies. Of those, roughly 700
are non-Ethereum-based tokens, including
bitcoin (BTC), Polkadot (DOT), and Ripple (XRP)
– some of the biggest.
Over $1 trillion in assets is locked up in these
non-Ethereum-based cryptos. So we started
looking for projects that could easily and securely
allow you to transact these non-ERC-20 tokens
on Ethereum-based decentralized platforms.
The solution we came across is called Ren (REN).
Ren is a decentralized custodian that mints and
burns digital assets 1:1 on Ethereum as ERC-
20 tokens. Meaning it holds the original non-
ERC-20 asset and creates a “wrapped” version of
the token for use on the Ethereum blockchain.
Wrapped tokens are similar to derivatives. A
derivative is a contract between two or more
parties that has a value based on an agreed-
upon underlying financial asset, index, or
security. Examples of derivatives include options,
warrants, and futures contracts.
The explosion of derivatives was partially
responsible for the huge losses during the great
financial crisis of 2007–2008.
Banks had no idea what their derivative exposure
was. Worse than that, according to reports,
they were using the same asset to back multiple
derivatives.
 This would be the equivalent of having 10
“wrapped” bitcoin for every actual bitcoin in
storage.
The blockchain makes it so you can never issue
more “wrapped” versions of an asset than actually
exist in storage. Every wrapped coin corresponds
to a held coin.
If Ren holds 1,000 BTC in storage, you don’t have
to blindly trust that there’s only 1,000 wrapped
BTC to match it. The blockchain shows exactly
how much wrapped BTC has been created. That
type of transparency doesn’t exist anywhere
outside of the world of blockchains.
So you can see the implications for “wrapping”
any asset and putting it on an Ethereum
blockchain is huge.
And again, it’s not just limited to crypto coins. It’s
my belief that every tradeable asset will, at some
point, migrate to a blockchain.
And because there’s so much trading liquidity
on the Ethereum blockchain, it suggests that
much of those tokenized assets will migrate to
the Ethereum blockchain in the form of Ren
“wrapped” ERC-20 compatible tokens.
Because Ren’s process is so transparent and so
secure, more than 60 DeFi platforms accept its
wrapped coins. So non-ERC-20 token holders can
potentially benefit from the yield opportunities
DeFi offers – which is a huge market and growing
daily.
Now what about decentralized coin storage?
How do you store coins so you aren’t relying on
a counterparty like a bank, brokerage firm, or
custodian?
The answer is the RenVirtual Machine
(RenVM). It’s a protocol for secure cross-chain
interoperability. (To learn how RenVM works, see
the grey box.)
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Ren token holders stand to make a fortune as
it bridges the gap between networks that are
disconnected like Ethereum and bitcoin.
The Ren Virtual Machine (RenVM)
Earlier this year, Ren developers launched
the Ren Virtual Machine (RenVM), which
created fast, seamless, and secure cross-
chain interoperability.
To understand how RenVM works, we’ll have
to get a bit technical. Basically, it’s a network
of thousands of computers called Darknodes.
Nodes are participants in a decentralized
network. They vote on rules, secure the
network, and verify new blocks through
a consensus mechanism. In other words,
a majority of nodes have to agree before
validating data on the blockchain.
Anyone with an internet connection can
become a Darknode.
Ren incentivizes its nodes by paying them
a reward for contributing their resources to
RenVM. But nodes must also post 100,000
REN as collateral as a good-faith measure.
RenVM rewards good behavior by paying
a transaction fee to Darknode operators.
But it penalizes malicious Darknodes by
slashing their REN collateral and giving it to
the honest Darknodes. And this all happens
through computer code.
While 100,000 REN seems like a lot of
upfront capital, we’ll likely see opportunities
for people who want to get a cut of fees to
delegate smaller amounts of their REN
holdings to Darknodes.
This is the revolutionary nature of
blockchain. And shows how you can run a
trustless network without any middlemen.
 The Ren Hyper Boom
Remember, a Hyper Boom occurs
when you have a massive influx of
new users coming into crypto.

Catch-Up Coins are some of the

most sensitive coins to usage
spikes. We find the best Catch-Up
Coins by buying into projects that
are seeing explosive usage, but their
price action is either trending down
from its peak or trading sideways.

Like some of our other Catch-Up

coins, Ren saw a huge price drop
before rallying on an explosion
of usage (see the first chart to the
right)...

The price action in REN is exactly

what we expected to see from a
coin experiencing a Hyper Boom in
usage (see the second chart to the
right)...

Although REN is on the rise again,

we expect even more growth
ahead...

Over the past month, Ren has

added almost a half-billion dollars
in assets, bringing the total value
held on its platform to just over $1
billion. on multiple blockchains – demand for the REN
token will surge.
And while this may seem like a lot, we believe
it’s just the beginning for Ren as it continues to What’s It Worth?
expand its network of toll roads.
To get an idea of what the REN token could be
You see, Ren recently expanded its operations worth, it’s important to know where the demand
to Solana, Polygon, Avalanche, Fantom, Binance for the REN token comes from.
Chain, and the promising layer 2 scaling solution
As mentioned above, the process of wrapping
Arbitrum.
assets and minting them on other blockchains is
With Ren serving as the go-to solution for done by Darknodes.
wrapping assets – enabling them to transact

22
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 And since you need the REN token to operate a
Darknode, we’ll value REN based on the potential
cash flows Darknodes could generate.
To send assets from one network to another via
Ren, users can expect to pay a transaction fee
between 0.15% and 0.3%.
RenVM Darknodes are on track to generate just
over $1 million this month. That’s up 44% from
the previous month.
Let’s assume Ren can sustain just half this growth
rate through the end of next year.
If so, RenVM Darknodes would be generating
roughly $16 million per month in fees by the end
of 2022. Or roughly $196 million annually.
To value the token, we can compare Ren’s
earnings to a traditional financial exchange like
the Intercontinental Exchange (ICE), which owns
the NYSE.
ICE trades at an earnings multiple of about 25.
But since RenVM is on the bleeding edge of
technology with high growth potential… we’ll give
it a multiple four times greater.
That would put Ren at a $19.6 billion valuation
($196 million x 100).
That would translate to $19.69 per REN token,
or a 2,163% increase from today’s price based on
current supply.
But we believe it can go even higher under a blue-
sky scenario…
You see, Ren currently doesn’t charge a custody
fee on the assets it holds in the Darknodes.
Since it’s the most secure platform to exchange
wrapped tokens, we believe Ren could eventually
charge a small fee for housing assets on its
platform.
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If Ren captures just 2% of the $2 trillion in crypto
assets outstanding – and charges a small 0.1% fee
while doing so – it would generate an additional
$40 million in annual income.
Based on these projections, Darknodes could
generate $237 million in combined income per
year.
And if we attach that same 100 earnings multiple
for its valuation, Ren would be valued at $23.68
billion or $23.68 per REN token based on
circulating supply.
That’s a 2,623% increase from today’s price.
Enough to turn a $500 investment into $13,613.
And every $1,000 investment into $27,226.
It’d take 38 years to make those types of gains in
the stock market.
By adding REN to the portfolio, we’re positioning
ourselves to profit from bridging assets between
networks in a multi-chain world.
Action to Take: Buy Ren (REN).
Buy-up-to Price: $2
Stop Loss: None
Buy It On: Uniswap, Coinbase, Binance, Gemini,
KuCoin, 0x Matcha
Store It On: MyEtherWallet or Ledger
Hardware Wallet
Hyper Boom Pick No. 6: Ox (ZRX)
Longtime readers know we don’t recommend
holding large amounts of crypto assets on
centralized exchanges. That’s because exchanges
can be targets for hackers.
Hackers attack exchanges because they represent
resource-rich targets with huge payoffs.
Think about it from a criminal’s point of view.
Would you rather pick the pocket of individual
bank customers or rob the whole bank?
 Pickpocketing one person at a time with no
guarantee of how much you’ll make is inefficient
and time-consuming. Sooner or later, you’re
likely to get caught and arrested for pocket
change.
But robbing a bank you know is stuffed full
of money makes more sense – at least from a
criminal’s risk/reward perspective. Sure, robbing
a bank is more difficult than picking pockets. But
it’s worth the gamble because the payoff is much
larger.
The same is true for exchanges.
The biggest exchanges move $1 billion worth of
crypto every day. They’re much juicier targets for
hackers than individual digital wallets that hold
small amounts of crypto funds.
That’s why no matter how much money
exchanges spend on security… someone smarter
will figure out a way to rob them.
As you can see, cybersecurity is a huge problem
for all centralized crypto exchanges. But we’ve
found the solution: Decentralized exchanges
(DEXs).
A DEX is an exchange market that doesn’t rely on
third parties to hold customers’ funds.
While they’re much cheaper and more secure to
use, DEXs do have one major drawback: Their
prices fluctuate every few seconds. So you have
to constantly search each individual DEX for the
best price. It can be a headache.
The project that will get rid of these headaches is
called 0x (ZRX).
0x is a DEX aggregator. It works to find the best
price for users looking to swap assets. It does
this by pulling liquidity from multiple DEXs
on the network, making it the one-stop-shop to
exchange assets on a decentralized network.
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The 0x protocol automatically scans every major
DEX on the network to find the best price to
execute trades. And with its smart-order routing
technology, it can even split orders across
multiple DEXs to ensure lowest prices.
Unlike other DEXs, 0x doesn’t store orders on the
blockchain. Instead, it only records settlements,
making it faster and less costly than other DEXs.
In fact, 0x boasts 99.9% uptime and faster
response times than its competitors. And one
study found it produced better fee-adjusted prices
than its competitors 70% of the time.
Developers can access this service using 0x’s
application programming interface (API). The 0x
API is free to use and easy to integrate, and it’s also
available on multiple chains, including Ethereum,
Binance Smart Chain, Avalanche, and Polygon.
Some of the most popular dApps in the world
have implemented 0x’s API, including MetaMask
– the go-to web extension with 10 million active
users… and Zapper.fi – a portfolio manager for
DeFi assets with over 500,000 users. Combined,
these two dApps have routed over $800 million
in trades through 0x .
For these reasons and more, the number of 0x
users continues to grow rapidly… despite its
recent pull back in price. And that’s setting up a
Hyper Boom for 0x.
The 0x Hyper Boom
Remember, a Hyper Boom occurs when you have
a massive influx of new users coming into crypto.
Catch-Up Coins are some of the most sensitive
coins to usage spikes. We find the best Catch-
Up Coins by buying into projects that are seeing
explosive usage, but their price action is either
trending down from its peak or trading sideways.
We’re seeing that set-up with 0x…
 From its peak in April, 0x fell
nearly 80% over the next two
months as the crypto markets
cooled off following a big run up in
Q1 2021 (see the first chart to the
right).

Take a look at the second chart. As

you can see, despite its pullback,
0x’s number of weekly active users
continues to rise.

While 0x has leveled off since its

peak in August, we believe it’s set
for more growth soon as it expands
its product offerings and deploys
its platform to other networks.

For instance, 0x recently

partnered with another of the
recommendations in this portfolio,
Celo (CELO). This is a huge
development. As we pointed out
above, Celo has roughly 1.2 million
users on its network.

So it’s no surprise trading volume

on 0x has increased 540% through
the first six months of 2021
compared to the six months prior.

It seems every week, there’s a new

project integrating with the 0x
API or lining up to collaborate on
building the DeFi ecosystem.

This trend will only continue as the
digital asset space grows and more users discover
the benefits 0f decentralized exchanges. And 0x’s
recent pullback is giving us an opportunity to get
in at a huge discount.
increase from the roughly $8.2 billion in volume
it generated in all of 2020.
If 0x can sustain that growth rate, it would end the
year with about $167 billion in trading volume.

What’s It Worth? To estimate 0x’s value, we’ll use its historical fee
average, which is about 0.01% of trading volume.
Since the start of this year, 0x has generated over By comparison, Coinbase charges a 0.5% fee – or
$61.2 billion in trading volume. That’s a 648% 50x more than 0x.

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 Based on its current fees, 0x would see about $17
million in earnings ($167 billion x 0.01%).
And while this may seem small… We believe it’s
only the start as the DeFi trend is still in its early
stages and hasn’t yet reached the masses.
Let’s assume 0x’s current growth rate decreases
by half over the next three years. That’s about
324% year-over-year growth in trading volume.
At that rate, it’d see about $12.8 trillion in trading
volume by the end of 2024.
Using a 0.01% trading fee, 0x would be earning
roughly $1.28 billion per year.
To get a sense of what that means for the ZRX
price, we can compare 0x to the largest publicly
traded crypto exchange, Coinbase.
Today, Coinbase trades at 25 times its earnings. If
we apply that same multiple to 0x, its market cap
would grow to $31.9 billion ($1.28 billion x 25).
As an early-stage project with cutting-edge
technology and huge growth potential… We
believe 0x could fetch a multiple at least three
times greater than Coinbase.
That would make 0x worth $95.7 billion – or
$113.24 per token based on today’s circulating
supply.
That’s a 10,271% increase from today’s price.
Enough to turn a $500 investment into $51,857
and every $1,000 investment into $103,714.
But we believe it can go even higher as DeFi
continues to gain mass adoption – and 0x pushes
to expand in the multi-chain universe.
Let’s assume 0x sustains its current 648% growth
rate over the next three years. That would imply
0x facilitating over $70 trillion in trading volume
by the end of 2024.
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And if we use the same 0.01% trading fee, 0x
would rake in $7 billion in annual profits for its
ZRX token holders.
Now at this point, we’d consider 0x’s hyper
growth phase to be in its past. And for that
reason, we’d give it an earnings multiple of 25 –
matching Coinbase.
That would give 0x a $175.5 billion valuation.
Or $207.62 per ZRX token based on the current
circulating supply.
That’s a 19,673% increase from today’s price.
Enough to turn a $500 investment into $98,866.
And every $1,000 investment into $197,732.
It’d take 69 years to make those types of gains in
the stock market.
By owning a position in ZRX, we’re positioning
ourselves before the Hyper Boom we’ll see from
the massive growth of decentralized exchanges.
So it’s time to take advantage of this pullback in
0x before the market catches on.
Action to Take: Buy 0x Protocol (ZRX).
Buy-up-to Price: $3
Stop Loss: None
Buy It On: Coinbase, Gemini, Binance, Binance.
US, 0x Matcha
Store It On: MyEtherWallet or Ledger
Hardware Wallet
Bringing It All Together
You can only go from 200 million users to 5
billion users once. The Hyper Boom in new users
coming into crypto will ignite the biggest rallies we
have ever seen in crypto’s short 12-year history.
And Catch-Up Coins represent some of the most
sensitive coins in the world to booming usage.
Each one of the Catch-Up Coins in our Hyper
Boom portfolio is already seeing a massive surge
in usage.
 But this is nothing compared to what we’ll see never seen before. The key is to get into them now
over the next 10 months. We could see over 1 before the Hyper Boom begins in earnest. Even
billion new users come into crypto between now waiting one day could hurt your total profits.
and then.
So take action now and position yourself ahead
Such an influx of new users has the ability to of the billions of new users that are about to flood
propel the value of these coins to levels they’ve into crypto.

Customer Care: Toll-Free: (888) 501-2598, International: (561) 921-8774, Mon–Fri, 9am–7pm ET, or email support@palmbeachgroup.com.

© 2021 Common Sense Publishing, LLC, 55 NE 5th Avenue, Delray Beach, FL 33483. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is
prohibited without written permission from the publisher.

Information contained herein is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. It is not designed to meet your personal situation—we are not
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Recommendations in Palm Beach Research Group publications should be made only after consulting with your advisor and only after reviewing the prospectus or financial statements
of the company in question. You shouldn’t make any decision based solely on what you read here.

Palm Beach Research Group writers and publications do not take compensation in any form for covering those securities or commodities.

Palm Beach Research Group expressly forbids its writers from owning or having an interest in any security that they recommend to their readers. Furthermore, all other employees
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