Hello! This is Colton Dillion, cofounder of Hedgehog, the crypto robo-adviser that makes it easy to keep your portfolio diversified while managing it all in one place.

This week marks our 100th newsletter! With this installment we are pleased to announce that our mobile application has been approved on both GooglePlay and the App Store. While we're still waiting for our custodian to turn on fiat deposits before making an official launch announcement, you can still download the application right now ahead of everyone else and make deposits and withdrawals in crypto to diversify your holdings and let us manage them for you automatically.

Don't be shy, grab that download and make your first deposit, then come back to read this 100th newsletter while you wait for your block confirmations.


Emerging Markets:

Sometimes we get asked about similar asset classes to crypto and how investors should think about incorporating digital assets into their portfolio. While we believe digital assets are closest to real estate or Regulation A private offering investments in risk profile, emerging markets are another analogue in traditional financial markets that might make sense to compare crypto investments against.

Emerging markets, also referred to as emerging economies or emerging countries, possess characteristics of mature financial markets but haven't yet acquired the je n'est sais quoi to be considered fully developed. This includes markets that may dominate trade in the future or have held that dominant status in the past; BRICK is a common acronym to remember a few of them by: Brazil, Russia, India, China, South Korea. There are also "frontier markets" which is insider lingo for developing countries with smaller, riskier, or more illiquid capital markets than those classified as "emerging." As of 2006, China and India are considered the largest emerging markets, and as you might imagine with such membership, the term "emerging markets" can be criticized for being outdated. However, no new widely accepted term has gained traction in its place…naming is hard.

When countries progress from their emerging status, they are referred to as emerged markets, emerged economies, or emerged countries. These economies have surpassed the emerging economy stage but have not yet achieved the technological and economic development of fully developed countries. Examples of such transitioned economies include Israel, Poland, Taiwan, the Czech Republic, and Singapore. Emerged markets tend to possess higher incomes and relatively stable political environments compared to emerging markets.

You might want to include emerging markets in your portfolio if you want:

  • Diversification: Allocating your investments across different regions, industries, and asset classes can mitigate the impact of market volatility and reduce your overall risk exposure. A diversified portfolio provides resilience and protects against potential setbacks in a single market. If unrest is occurring in Europe, it can be good to have some investments in Latin America or Asia.
  • Long-Term Investment Horizon: Investing in emerging markets requires a long-term perspective. Rather than being swayed by short-term market fluctuations, you should have a focus on the broader growth trajectory of the market, and your risk tolerance and timeframe for withdrawal should match that focus. Embrace patience and perseverance, aligning your investment strategy with long-term goals to capitalize on potential growth and the prospect of substantial returns.

Many funds have been created to help investors buy into emerging markets using a diversified portfolio, among them a popular index created by Morgan Stanley Capital International, the MSCI Emerging Markets Index.MSCI Emerging Markets Index.

Both emerging markets and cryptocurrencies offer the potential for high growth and significant returns on investment. Emerging markets are characterized by economies that are transitioning from developing to developed status, exhibiting robust economic growth rates and vast market potential. Similarly, cryptocurrencies have experienced explosive growth amid whipsaw volatilities. Both investment avenues attract individuals seeking opportunities for wealth accumulation through capital appreciation with iron stomachs and healthy tolerance for risk.

Also, they are both closely intertwined with technological advancements. Emerging markets often experience rapid technological progress, leading to improved infrastructure, connectivity, and access to digital services. Likewise, cryptocurrencies leverage distributed ledger technology, revolutionizing traditional financial systems and introducing innovative solutions for transactions, record-keeping, and decentralized applications in markets where the political environment for trustworthy financial systems are less mature. The convergence of technology and finance in both emerging markets and cryptocurrencies opens up new avenues for investors to capitalize on evolving trends and opportunities.

A healthy portfolio will include all kinds of assets, and from our perspective, cryptocurrency is just as vital to a properly diversified investment strategy as more traditional assets from emerging markets.

Quick Hits

r/Cryptocurrency community calls BS on Twitter influencer @Pauly0x and recent Ethereum gifts received from his community. The story is @Pauly0x tweeted to his followers his Ethereum address asking for ETH and stating they would receive nothing in return. In a short few hours he received over 300 ETH. Reddit community member u/zoomercoomer9000 highlights some of the interesting bits here:

Check out all the incoming from individual addresses:

  • 2 addresses sent 10 ETH
  • 7 addresses sent between 5 and 7 ETH each
  • 26 addresses sent between 1.2 and 4 ETH
  • 40 addresses sent 1 ETH each
  • Furthermore, one of the addresses that sent 10 ETH is only 1 week old and was first funded with 544 ETH from non-KYC exchange MEXC:
  • Etherscan

A lot of accusations are floating around on this one, but all I know is that you have to love blockchain. ‘Don’t trust, verify’.

Coinbase CEO, Brian Armstrong, makes another plea to U.S. regulators citing how much China has to gain from the new restrictive crypto environment.

Tribe Capital to start deploying early stage investments ranging from 500k to 3m for new L1 & L2 projects that bring real-world assets on chain. In addition, this former FTX backer had talks surrounding leading a round to help restart the exchange.


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Keep hedging,