As all of you are aware (if you are not, you have been living under a rock!), cryptocurrencies have gone bananas lately (and plummeted next). We have also decided to dip our toes into the new world of cryptocurrencies: the Combicoin! It’s not really investing, so much as gambling, but you have to have some fun money, right?

Disclaimer: we have no interests in Triaconta or Combicoin, nor do we get any compensation for writing this post!

However, if you are interested after reading this post and have done your own homework and risk assessment (!), you may use this link to buy your Combicoins: https://triaconta.com/?ref=COMBI-214484

If you do, we both will get 0.5% extra combicoins.

Update 09-01-2018: the sale of the Combicoin has been temporarily suspended due to a voluntary process to get regulatory approval. For those who already have Combicoins, you are able to sell them back to Triaconta in February, or can wait to sell them on the trading platform once it’s operational. See news here: https://triaconta.com/triaconta-is-voluntarily-acquiring-regulatory-approval/

Cryptocurrencies: the Combicoin

Because we (currently) lack the general understanding of which cryptocurrencies have more long-term potential than others, it’s difficult to know what to buy. Bitcoin certainly is not the answer as it’s too slow to be used as an actual currency. It also needs amazing amounts of energy to be mined (and traded), not really sustainable!

But which one is? Ripple? Dash? Beats me (you are strongly encouraged to leave some comments)! However, the same applies as with ETF’s and index funds. If you don’t know which one “candy” (read: company/coin) to buy, just buy the candy store! That is how we found the Combicoin. Albeit technically, the Combicoin is not a cryptocurrency but a token.

Cryptocurrencies - Combicoin

Cryptocurrencies – Combicoin

Combicoin

The Combicoin was developed by a bunch of our smart countrymen at a company called Triaconta. They thought that making a candy store was a good idea. So they came up with the Combicoin, which is supposed to be fully backed by the top 30 cryptocurrencies. The idea is that the value of this token is based on the underlying value of the top 30 cryptocurrencies and fluctuates accordingly.

When the asset distribution (which starts at 1/30th for each) gets skewed, the portfolio is rebalanced by buying and selling the underlying cryptocurrencies. This is done periodically or if certain trigger levels are hit. The asset distribution as per 19 December 2017 is as follows (check out their webpage for more up to date information).

Cryptocurrencies - Distribution

Cryptocurrencies – Distribution

Status

Ok, so late November we purchased about 77 Combicoins, which cost us around $15.30 each after exchange rates and fees. The initial investment was thus €1.000. This is what happened next (Extra Note 22-12-2017 – value dropped like a brick to around $28 and recovered a bit):

Cryptocurrencies - Status 19 December 2017

Cryptocurrencies – Status 19 December 2017

But here is the kicker, we cannot sell yet!!! We will have to wait until the company (Triaconta) has developed the trading software. Next it needs to find an exchange that accepts this Combicoin and will allow trading it. Until that time we will have to wait, watch and see what’s going to happen. It does make this rollercoaster ride a lot easier to handle 🙂

We have done our research into the company, the white paper and online reviews and comments. However, I can’t vouch for the company or the token. It seems legit, I have received the tokes and everything seems to go according to what they write on their website. But I now have to trust the company and their abilities to actually make a profit on this investment (or was it a gamble?). Only time will tell.

That being said, it has been a rather hilarious exercise so far! Every time I look, the value goes up or done massively. Bet you that by the time we can sell, the market has imploded and the value of the Combicoin is less then we paid for it. At least we would have had some fun. That being said, we do view this as a buy and hold “investment”.

How about you?

Have you bought cryptocurrencies already? If so, which ones and did you already make some money (i.e. did you actually cash in on the increase in value)? What are you going to do with the proceeds? Reinvest in cryptocurrencies or other? Any recommendations for which individual cryptocurrencies to buy and hold?

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