Fumbi Product Update – December 2023

In early December, our experts at Fumbi conducted a regular review and update of all our products so that we always bring you only the best from the cryptocurrency market. Quarterly updates have been an important part of managing our products and portfolios for a number of years now, as they must comply with strict selection criteria and meet all of our formal standards.

On Friday, 24 November 2023, Fumbi’s Investment Committee met to jointly discuss the current situation in the cryptocurrency market and make important decisions regarding product updates under the current market conditions. It is very important for us to optimise the return-risk profile of our products and add new enhancements and cryptocurrencies according to the current trends in the world of cryptocurrencies.

After much discussion and review of all the factors influencing the current market conditions, the Investment Committee has reached a consensus regarding the regular update. As such, the December update will bring new product enhancements as well as several new assets to help investors on the path to achieving their investment goals.

System Changes

New Templates in the Advanced Portfolios Product

As the cryptocurrency market is extremely dynamic and constantly evolving, it is important to keep track of current trends in the cryptocurrency world and optimise our products accordingly. For this reason, we have decided to create up to three new templates for you in the Advanced Portfolios product, allowing you to invest in specific areas of the cryptocurrency market. The three new templates include:

1. AI Portfolio – An Innovative Portfolio made up of leading cryptocurrencies focused on the use and development of artificial intelligence, representing a huge advancement in the development and application of artificial intelligence into practice.
   

2. Meme Coins Portfolio – A Portfolio made up of the most well-known “meme cryptocurrencies” on the market that have been created based on humour and a strong community and are often associated with current internet memes and trends. This portfolio consists of memecoins, which have gained immense popularity and support from a wide range of fans.
   

3. Layer-Two Portfolio – A portfolio made up of Layer-Two cryptocurrencies that offer scalable and efficient solutions for blockchains, improving their performance and creating new opportunities in transactions and applications.
   

More information about the new investment portfolios can be found now in your user profile.

Fumbi Index Portfolio

The basis of our quarterly updates is a modification of our flagship product called the Fumbi Index Portfolio, which is still the most popular product among investors. Fumbi Index Portfolio is particularly popular among investors for its simplicity and efficiency, as it tracks the movements of the market itself. As part of the December update, we decided to add two new cryptocurrencies to the portfolio and remove one asset that does not currently meet our formal criteria.

Assets added:

• Injective (INJ) – Injective Protocol is an interoperable smart contract platform aimed at developing the decentralised finance sector. Using pre-made modifiable smart contracts it allows developers to create decentralised exchanges, prediction markets and other types of financial applications.
  

• Thorchain (RUNE) – Thorchain is a decentralised platform built on the blockchain that enables the exchange of assets between different blockchains without the need to use centralised exchanges. By its interoperable nature, Thorchain provides users with the ability to trade and transfer cryptocurrencies across different blockchain networks without losing autonomy. The network is powered by the RUNE token, which is used to execute transactions and provide liquidity in the Thorchain ecosystem.

Assets removed:

• The Sandbox (SAND) – We have decided to delist the cryptocurrency SAND from the Fumbi Index Portfolio due to the fact that it does not currently meet one of our formal criteria for placement in the top 50 cryptocurrencies in terms of market capitalisation. The Sandbox is currently ranked 59th. However, this asset remains part of the Advanced Portfolios product in the “NFT & Metaverse” template and you can also add it to your own portfolio.
  

Advanced Portfolios

In addition to the system changes and the creation of new templates, the Advanced Portfolios product will also be affected by the changes regarding the addition of new assets to this product. As part of the update, we have added up to seven new assets that you will be able to add to your custom investment portfolios. 

The added assets include:

• Pepe (PEPE) – PEPE is a meme cryptocurrency created on the Ethereum blockchain that was created as an homage to an internet meme called “Pepe the Frog”. The project aims to compete with other meme coins such as Dogecoin or Shiba Inu. Pepe has grown significantly in popularity over the past few months and its price has increased by thousands of percent. However, it should be added that the project itself points out that it is purely a meme coin with no utility or intrinsic value.
  

• Gala Games (GALA) – Gala is a gaming platform that uses blockchain technology to create and manage games with an emphasis on decentralisation. This project supports game creators and players, providing them with the ability to own and manage game assets using the GALA cryptocurrency. The project aims to become the largest Web3 gaming ecosystem that can compete with the largest gaming companies in the world.
  

• Ocean Protocol (OCEAN) – Ocean Protocol is a decentralised blockchain platform that enables the exchange and sharing of data in a secure and private environment. The project is built on the Ethereum blockchain and uses so-called “datatokens” to secure access to data. The project has also integrated artificial intelligence (AI) into its platform to better manage, analyse and use data based on AI technology.
  

• Osmosis (OSMO) – Osmosis is a decentralised platform built on the Cosmos network that enables the exchange and provision of liquidity for various cryptocurrencies. It is an automated exchange where users can trade different tokens and provide liquidity to so-called liquidity pools. Osmosis uses the concept of an automated market maker (AMM), which simplifies the entire process of trading and providing liquidity.
  
  
• Celestia (TIA) – Celestia is defined as the first modular blockchain network that provides developers with the infrastructure to build and maintain blockchains. Celestia enables other blockchains to use it as a data availability and consensus layer. Celestia is the opposite of monolithic blockchains such as Bitcoin or Ethereum, which perform all the basic functions of a blockchain. Modular blockchains have introduced the notion of decoupling consensus from transaction execution, achieving greater scalability without sacrificing security or decentralization.
  

• Floki (FLOKI) – The Floki cryptocurrency is a digital currency that was created based on the internet phenomenon surrounding a Shiba Inu dog named Floki. Its name is inspired by this popular dog breed. Floki gained popularity due to its community interest and plans to create its own game, a decentralised exchange and NFT marketplace. However, it should be added that like other meme cryptocurrencies, FLOKI is a meme cryptocurrency and its value and success are often influenced by the community and social networks.
  

These cryptocurrencies were selected based on their potential and growing popularity in the crypto market. We believe that new cryptocurrencies will allow you to further tailor your investment strategies and achieve your desired financial goals.

It is important to emphasise that the other templates within the Advanced Portfolios product will not change during this update. If you can’t decide what to invest in, you can choose one of the existing or newly added pre-made templates that are carefully curated by our team of experts.

What Do We Consider When Selecting Cryptocurrencies?

At Fumbi, we adhere to strict rules for selecting cryptocurrencies that make it into our portfolio. In addition to formal criteria related to liquidity, market capitalisation, and storage capability, assets must have strong fundamentals within three categories that we identify as key in the market: payment systems, decentralised finance, and Web3.