ICYMI: Top client questions from Ask Titan Anything this week

Q: I just saw you exited Solana, does that have to do with all this FTX stuff?

It’s a good question, and the answer is in short, yes. We sent out a trade comm last week discussing this in more detail. But to summarize, Solana was inadvertently tied up with FTX. For starters, it was Alameda Research’s second-largest holding. To the extent that it hasn’t already, this position will likely need to be fully liquidated over the coming days and weeks – putting intense downward pressure on the crypto asset. Other investors who staked Solana are following suit further exacerbating market dynamics. two exchanges, including Binance, halted trading of USDC and USDT on Solana this morning, after already falling to new lows and dropping over 40% in the last week. While it may make it out ok down the line, in the near-term, we believe it’s possible Solana will collapse.

Q: I don’t know that much about Discord. Why that company in the ARK fund?

We’d recommend checking out ARK’s full thesis in the app, but as a recap: Discord is a communications platform that enables its 231 million highly engaged monthly active users (MAUs) to communicate via text, audio, and video. For comparison, a much more widely known company like Snapchat has 363 MAUs. So while the services use cases beyond socialization for video gamers, the 3.2 billion user gaming market provides significant room for upside as Discord scales into other arenas. The challenge here will be their incremental user growth and the potential of competing with beg tech players for this untapped user network. ARK is confident they’re well positioned to be a winner here.

This content is as of November 17th, 2022.

Ask Titan Anything is intended to be informational in nature and does not take into account the specific objectives, financial situation, or particular needs of any specific person. Nothing in this content should be construed as investment advice, or a recommendation to buy or sell securities.

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