norok

Bitfinex Tokens breaking out

Long
BITFINEX:BFXUSD   None
Instead of breaking down short on the daily as I saw last week over the weekend on the swing timeframe 240 minute BFXUSD is breaking out long.

I did some research last night to get a grasp on exactly what the "value" of BFX tokens should be. Assuming that Bitfinex does not get hacked again, remains solvent, and repays their customers as promised then each BFXUSD is theoretically worth 1.00. Ergo, an "investment" in BFX tokens at 0.50 would yeild a 100% ROI over 5-6 years. This comes out to an annualized return of about 12%. Buying at 0.30 would yield 200% and 0.25 300%. The downside is a full loss so a smart strategy would be to take the 3:1 bet if BFXUSD ever hits 0.25.

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