Read time 5 minutes

Welcome back to the end of another week with Renaissance - the newsletter equivalent of NOT WEAK SAUCE. 👀 We saw one of you hit the ‘weak sauce poll’ last week and that’s it, we’re out for blood.

We’re gonna drop hot sauce all over you, we know who you are, you little shit……. sorry sorry……. you’re gonna love it this week guys! 🙌 

Today at a Glance:

Crypto: Privacy’s Making Moves

Hedge Funds Hit The Jackpot With Catastrophe Bets

Mastering The Art Of Spending

The Renaissance Over-Under

Crypto Market & NFT News

Privacy’s Making Moves 🎉 

And just as we predicted, the privacy coins are getting delisted and Monero dropped. 🤝 All happening just as we get ETF and institutional approval ……. not isolated incidents at all. 👀

⚡ The move: Let the price settle and then buy a small bag for the long term!

In our privacy rabbit hole we also bought small bags of these - take some and thank us later.😉

🔑 Privacy : $ZEPH $AZERO $ZANO $ROSE

⚡ $AZR - This one has been a great trade for us this week but will likely dip again based on the heat of the chart. Although it’s still a nice one to get in and ride! It’s definitely going to the millions in market cap. 🎉🎉🎉 

https://www.dextools.io/app/en/ether/pair-explorer/0x54e4ba59162caa5c570bb599bf90381873000f4d?t=1707228681584

WIF strikes again! - we told you to watch WIF and all its action 👀

We told you this memecoin is one you should be watching, buying bags of and jumping on its news! It reached escape velocity and needed to be put on your watchlist…. and still does. 🤯

- Early wallets made around $1.7M from trading dogwifhat (and we did okay as well despite being slightly later 😉).….. but not on the coin you think.

- $WIF has a market cap of $245M. But it looks like the original meme creator, Issa, was upset he made no money from it. He decided to launch his own dogwifhat token, but on Ethereum.

- This is the type of ‘2.0’-esque hype that capitalises on the narrative success of $WIF. This 1) cements $WIF’s Solana token hype, and 2) means new $WIF tokens and side actions are coming!

- IT HIT A $40M market cap in one hour!!!!!!!!!!!!!

- Thennnn Twitter challenged Issa’s credit of even being the creator of the picture/meme in the first place, and the influencers and top holders dumped after only a few hours!

- But for a seasoned 2.0 sniper and Renaissance reader, this is a classic trade we already had you on the lookout for. 😎

https://www.coindesk.com/markets/2024/02/05/apparent-insiders-make-millions-after-grabbing-ethereum-version-of-dogwifhat/

LITTLE BITS 😎

Nvidia's value surges about $500 billion in 6 weeks — that's almost as much as Tesla is worth - Crazy overblown mania! It’s off the back of the AI narrative hype, it’ll go on for a while, but values always track to fair value eventually. (Probably a good short term bet but watch that value!)

Just a word to the wise: If you're ultra-ambitious, you should live in New York. That, or the middle of nowhere. Go for extreme serendipity or extreme focus. The in-between will trap you.

Over the last 10 days, China's CSI 1000 index is down a massive 21% - the Red Dragon is in troubleeeee

China's government pledged once again to help stabilize markets. This comes after countless stimulus measures and even a short selling ban at some Chinese brokerages. Evergrande, China's largest property developer, was ordered to be liquidated last week.

NOSTALGIA OF THE DAY

Business, Money Markets & Financial News

Hedge Funds Hit The Jackpot With Catastrophe Bets: Mother Nature's Finest Hour!  🤑

Ever thought hey, maybe natural disasters could be a gold mine? Well, hedge funds like Tenax Capital, Tangency Capital, and Fermat Capital Management did.

Here’s how they turned the chaos of hurricanes and cyclones into the ultimate profit party last year. 🎉 All with a little thing called catastrophe bonds.

I know not all of our readers are analysts at Goldman’s so let’s take a step back to run through what catastrophe bonds are:

*cue our Big Short scene of Margot Robbie describing cat bonds

- Catastrophe bonds are an example of insurance securitization. Insurance companies came up with these to transfer large risks they didn’t want on their books to investors. And we know what investors can be like, they’re degenerates, they were happy to bet on these huge risks!

- The bonds are linked to a pre-defined disaster occurring. Investors buy the bond from the insurer, if the disaster occurs the insurer keeps the money to fund the disaster insurance pay-outs. But if the disaster doesn’t occur the investors get their money back. Plus a phat return.

- And last year was the perfect storm. 🌀 It was like winning the cat bond lottery for these hedge funds.

- Driven by fears of climate change-fuelled disasters and sky-high inflation, they delivered a whopping return. Beating both industry benchmarks and all other hedge fund strategies by a wide margin. 👇

So behind the scenes were these degenerate hedgies making wild bets, turning global disasters into a thrilling game of high-stakes poker. Lose some capital if disaster strikes, gain insane profits if it's a no-show. 💸

Hurricane Ian's Encore:

Remember Hurricane Ian in 2022? It was the superstar that kicked off this profit fiesta.

- Insurance companies, burned by the losses, decided to shift the risk to investors. With inflation soaring, the cat bond market went on steroids.💉

- Cat bond investors demanded larger and larger returns to absorb the influx of risk, and boy, did they get them! This, alongside a mild US hurricane season meant fewer triggers, more profits, and hedge fund managers rolling in it.

The New Frontiers: so what now?

➡ Climate change is reshaping the game. And cat bonds are now eyeing secondary perils like severe storms, winter woes, and wildfires as the next profit frontier.

➡ Last year we also saw the debut of cyber-catastrophe bonds. A new frontier for insurers to unload cyber risks.

So who knew betting against climate change could be so profitable? Some intern at a hedge fund did. And it’s easy, they just simply didn’t think all the disasters would happen. ✨

*The brains of the intern at the Tenax Capital strategy meeting.

Wealth Building, Personal Finance Hacks & FAT FIRE

Mastering The Art Of Spending To Boost Wellbeing 💰

- I know, I know, spending money on wellbeing? All I do with my money is invest and spend on my business? That works (and we do it) but let’s take a detour for a second to look at the best ways to spend your extra fun money.

- You must have this, maybe set aside 10%….. or maybe 5…… possibly 3…. (I know we’re working on it). We’ll have all the fun and wellbeing when we’re stupid rich dammit!

- You always hear money can't buy happiness? Nonsense! Rich folks just made that up to keep us from staging a grand heist. While vast wealth might not guarantee eternal joy, it can certainly rent you some stellar moments.

- Plus, we’d all rather cry in a private jet than on the subway. But here’s a few science backed ways to use your cash to boost wellbeing.

⚡ Big Happiness in Small Pleasures:

- Forget that one colossal, wallet-draining item you've been eyeing. Life's joy manual got an update: it's all about frequency over intensity. Small pleasures, the unsung heroes of joy, keep your mood on a constant high.

- Splurge on the little delights, try out that new bar in town, that new restaurant, that new testosterone supplement, maybe a new Adderall dosage, the simple things (it’s uh……. a complicated routine 👀).

⚡ Buy Time, the Ultimate Treasure:

- While money can't buy happiness, it sure can outsource some misery. Working fewer hours or delegating tasks can free up precious time. Use that newfound freedom wisely—pick up hobbies, learn jazz, read literature, or start more businesses and work even more (again, we’re working on it!)

⚡ Experiences Trump Material Things:

- Material possessions? Meh. Apparently experiences are the true spice of life. Research proves 57% of people find more joy in experiences, leaving material goods in the dust at 34%. Anticipating and reminiscing just last longer.

⚡ Anticipation: The Real MVP:

- Planning a vacation is like scripting your own blockbuster fairy tale. But it turns out, the joy of anticipation often outshines the actual event. So what’s the lesson? Just keep planning shit and then never going through with it, it isn’t worth it anyway. 🤷‍♂️

- Or make your brain the ultimate hype artist. Extend anticipation, opt for more mini-vacations, and structure life so you're always looking forward to something.

So there you have it, splurge wisely, live large, and let’s have our fun and get it over with so we can get back to empire-building! 🏗

Meme of the Day

That’s a wrap for this week! Meet us on Twitter to talk all about it. Where we’ll send you jokes, tips, and all important news from the world of money, business and crypto and more! (@RenaissanceDly)