The privacy-focused DEX sector is a key investment theme, with influencers seeking the next major project in this space. Consider KiwiSwap as a high-risk, high-reward play on this narrative, as it is backed by prominent influencers and currently trades under a $15 million market cap. Another speculative microcap in this niche is Privix, which aims to build a private perpetuals DEX and is valued at an even lower market cap of around $5 million. For investors interested in yield, consider staking Black Hole (BLACK) on the Avalanche blockchain to earn a share of the platform's trading fees. BLACK has pulled back to a $40 million market cap from a $200 million high, potentially offering an attractive entry point for long-term stakers.

Investment Theme: Privacy & Decentralized Exchanges (DEXs)

• The podcast highlights a strong investment narrative around privacy-focused decentralized exchanges (DEXs).
• A DEX allows users to trade cryptocurrencies directly with each other without a central intermediary, and these platforms often generate significant revenue by taking a small fee on the trading volume.
  • Historical examples of successful DEXs include Uniswap (UNI), which reached a $20 billion market cap, and PancakeSwap (CAKE), which reached a $6 billion market cap.
• The "next big meta" or trend in crypto could be DEXs that add a layer of privacy, masking the identities and transaction details of traders.
• Prominent crypto influencers Alex Becker and Crypto God John are both very bullish on the privacy sector, with Becker calling it one of the three most important categories to be investing in right now, alongside AI and Real World Assets (RWA).

Takeaways

• The core investment idea is to find the next successful privacy-focused DEX, which could see explosive growth similar to earlier DEXs like Uniswap.
• Investors should look for projects in this niche, particularly those with low market caps and backing from credible influencers, as they may present a significant opportunity.
• The failure of 0x0 (OXO) due to team execution issues has opened up a gap in the market for a new leader in the privacy DEX space.

0x0 (OXO)

• 0x0 was a privacy-focused DEX on Ethereum that was heavily promoted by influencer Crypto God John.
• He famously called it his "new Chainlink" in 2023, predicting it could become a multi-billion dollar project. He initially invested when the market cap was around $20 million.
• The token saw two massive pumps, rising from $0.02 to as high as $0.48, where Crypto God John was up over $5 million in profit on two separate occasions.
• Current Status: Crypto God John is no longer hyper bullish on OXO. He stated that the team failed to execute on their vision.
  • He did not sell his position at the top and has since seen the investment decline significantly.
  • The market cap has fallen from a high of $47 million back to below $20 million.
  • He still holds a small "moon bag" just in case, as he believes in the long-term potential of the privacy niche.

Takeaways

• OXO serves as a cautionary tale. Even with a strong narrative and influencer backing, poor execution by the project's team can lead to massive losses.
• The key lesson is the importance of taking profits, especially after a large run-up (30x+ in this case). Crypto God John missed out on $5 million in profit twice by not selling.
• While the project itself has faltered, its initial success shows the market's appetite for a privacy-focused DEX. The opportunity has now shifted to finding its replacement.

KiwiSwap

• KiwiSwap is presented as a direct competitor and potential replacement for OXO, with a similar mission to enable private and anonymous crypto swaps.
• It has extremely strong influencer backing from both Alex Becker and Crypto God John.
  • Alex Becker stated, "I think this one is going to be a big runner."
  • Crypto God John has signaled he may have rotated his investment into it, tweeting "Kiwi next leg uploading" and "Kiwi is now my favorite fruit."
• The project launched in late July and is currently consolidating around an $8 million to $11 million market cap after previously hitting a high of $16 million.

Takeaways

• KiwiSwap appears to be the lead contender to capture the privacy DEX narrative, given its strong backing from the same influencers who originally pushed OXO.
• At a sub-$15 million market cap, it is positioned as a high-risk, high-reward microcap play that could see significant growth if it executes where OXO failed.
• The coordinated support from major influencers could drive significant attention and investment into the project.

Privix

• Privix is another project aiming to build what OXO promised: a private perpetuals DEX (a platform for trading crypto derivatives with leverage).
• It was mentioned in a tweet that claimed Privix has succeeded where the OXO team failed.
• Alex Becker responded to this tweet with emojis suggesting he agrees, indicating his interest in the project.
• The project's market cap is noted as being only a "quarter of the market cap that oxo is," suggesting a valuation of around $5 million.

Takeaways

• Privix is an under-the-radar microcap play in the same privacy DEX niche.
• The subtle endorsement from Alex Becker could be an early signal before wider promotion.
• At an extremely low market cap, it represents an even higher-risk, higher-reward opportunity than KiwiSwap, but with less explicit influencer backing at this stage.

Black Hole (BLACK)

• Black Hole is a decentralized exchange on the Avalanche blockchain, built by influencer Ilio Trades in partnership with Alex Becker.
• The token BLACK had a massive run to a $200 million market cap before pulling back to its current level around $40 million.
• The investment thesis is different from a typical token. It's a DeFi play where users stake BLACK tokens to earn a share of the platform's trading fees.
• Alex Becker claims that despite the token's price drop, the platform's usage is "flying" and stakers are earning high yields (over 2x APYs), which can offset the token's price depreciation.

Takeaways

• This is an investment for those interested in earning yield rather than pure price appreciation. The goal is to participate in the "business" of the DEX by staking.
• The significant price drop from $200M to $40M market cap could represent an attractive entry point for those who believe in the long-term viability of the platform and the yield it generates.
• The success of this investment depends on the platform continuing to generate high trading volume and fees for its stakers.

Gradient

• Gradient is a tool that functions as a layer on top of existing DEXs to help traders reduce "slippage" (the difference between the expected price of a trade and the price at which it is executed).
• It is another project partnered with Alex Becker.
• The token's price chart is described as being "quite a strong looking chart," having held its value relatively well during a recent market downturn.
• It is currently trading at a $12.3 million market cap.

Takeaways

• Gradient is a play on the broader DEX ecosystem rather than a DEX itself. It provides a utility service that all DEX traders can use.
• Its relative price stability and backing from Alex Becker make it an interesting microcap to watch.
• The investment thesis is based on the idea that as DEX trading grows, demand for tools that improve the trading experience (like reducing slippage) will also grow.