The current market volatility is a buying opportunity before a potential "alt season" in Q4, so consider scaling into high-conviction tokens. Aster, a perpetual exchange token fully backed by Binance, is a top trade with realistic price targets of $2-$4. Avalanche (AVAX) is another strong candidate, with a new $550 million institutional fund creating a clear path towards $50 and then $100. Also, consider the token buyback theme by looking at projects like Ronin (RON) that use revenue to acquire their own tokens. For those already invested, the key is to hold spot positions and not sell in a panic during this shakeout.

General Market Outlook

• The speaker believes the current market dip is a normal, temporary reaction to recent interest rate cuts and not the end of the bull market.
• This volatility is seen as a "generational shakeout", liquidating over-leveraged traders and creating a buying opportunity for spot investors.
• The speaker agrees with legendary trader GCR's sentiment that this is a "good opportunity to scale into high conviction tokens."
• The overall market thesis remains unchanged: continued rate cuts throughout the year are expected to fuel an "alt season" heading into Q4.
• A potential "explosive run" is anticipated around October and November, with the market possibly getting "frothy" around the holidays (Thanksgiving/Christmas).

Takeaways

• The current market downturn is presented as a buying opportunity, not a reason to sell.
• Investors with cash on the sidelines ("sidelined") could consider this a final chance to enter positions before a potential parabolic move in late 2023.
• For those already invested, the advice is to "hold your spot positions and do not capitulate" (sell in a panic).
• Using high leverage is discouraged, as liquidations are described as a "forced transfer of wealth" to wealthy spot buyers.

Aster

• Described as a new perpetual exchange token that is "fully backed and supported by Binance" and Binance Labs.
• It is one of only two tokens, alongside BNB, with this level of direct backing from the exchange.
• The project has announced token buybacks and a future airdrop for platform users.
• It is currently generating $1.1 million in revenue daily, with the speaker projecting this could increase to $5-10 million per day.
• The speaker mentioned getting in at $0.20 and believes it will be "one of the best trades of the cycle even from here."

Takeaways

• Aster is presented as a high-conviction play due to its strong backing from Binance and its revenue-generating model.
• The speaker suggests a price of $2, $3, or $4 is "very realistic."
  • It is noted that even at $4, its market cap would still be only 50% of its competitor, Hyperliquid.
• For investors who feel they missed the initial move and are hesitant to buy at current prices, an alternative strategy is to use the Aster platform.
  • Interacting with the platform, even with spot trades, will earn credit towards a future airdrop, providing a lower-risk way to gain exposure.

Avalanche (AVAX)

• The project is seeing significant institutional adoption.
  • A Nasdaq-listed company is being renamed AVAX1 and will lead a $550 million strategy dedicated to "maximizing the ownership of Avalanche."
  • This follows other institutional interest, such as Anthony Scaramucci bringing his hedge fund onto the AVAX network.
• Despite the market dip, AVAX is holding a key support level above $30.
• The speaker believes many major tokens like AVAX, Ethereum, and Solana have not yet hit their all-time highs for this cycle, suggesting significant upside remains.

Takeaways

• The influx of $550 million from a dedicated fund is seen as incredibly bullish and could act as a major price catalyst.
• The speaker identifies a path for the price to move upwards:
  • There is "clear air" for the price to move to $50.
  • From $50, the move to $100 could be quick.
  • Reaching the previous all-time high of around $120 is considered a "realistic target" for this cycle.

Investment Theme: Token Buybacks

• The speaker identifies platforms with real revenue that is used to buy back their own token as the "best performing narrative of the cycle." This creates a direct feedback loop where business growth adds value to the token.
• Several projects are highlighted for adopting this model:
  • Ronin (RON): A gaming-focused blockchain that is beginning a buyback plan using its "massive" treasury. The treasury currently has enough funds to acquire 2% of the circulating supply.
  • XBorg (XBORG): A SwissBorg-backed project with a rule that any revenue exceeding 150% of operating costs goes directly into XBORG buybacks.
  • Other gaming projects like Wagme Games and Wilderworld are also mentioned as starting buyback programs.

Takeaways

• Investors should look for projects that have a clear mechanism for revenue to flow back to token holders, specifically through buybacks.
• This narrative is seen as a strong indicator of a project's long-term health and commitment to token value.
• Ronin (RON) and XBorg (XBORG) are highlighted as prime examples of this trend in the gaming sector.

Other Mentioned Assets

• Hyperliquid (HYPE):
  • A leading perpetual DEX and a direct competitor to Aster. The speaker advises against "tribalism" and holds both HYPE and Aster.
  • The speaker remains bullish, holding both a spot position and a leverage long position opened at $43.
• Tao (TAO):
  • Mentioned as one of the speaker's top protocol holdings.
  • It has experienced a significant dip, falling from $360 to $314, which could represent a discount for interested buyers.
• Sui (SUI):
  • Mentioned as another major protocol that has not yet reached its all-time high, suggesting more room for growth in this bull cycle.
• Avantis (AVNT):
  • Referred to as the "Coinbase Perpdex," it is on a "moon mission" and trading near all-time highs, reinforcing the strength of the perpetual DEX narrative.