THE “FINAL HALVING”: TEEKA’S TOP SIX COINS By Teeka Tiwari www.palmbeachgroup.com 1 In October 1973, the Arab member states of the Organization of the Petroleum Exporting Countries (OPEC) declared an oil embargo against the United States. To protest U.S. support for Israel during the Yom Kippur War, OPEC cut oil production by 9 million barrels per day. That meant a staggering 30% supply decrease – the biggest oil production cut in history. And it was so effective, historians today refer to it as the “Oil Weapon.” The embargo raised the market price of oil as supplies diminished... and led to global oil shortages. Eventually, the price of oil quadrupled, causing a major energy crisis in the U.S. and Europe. That resulted in price gouging, gas shortages, and rationing. The supply shock sent the U.S. economy into a tailspin and directly led to a decade of “stagflation.” Gross domestic product (GDP) fell 0.7% in the 1970s while unemployment shot up 169%. The OPEC oil embargo is likely the most significant and impactful supply shock in modern history. Just a 30% decrease of an important asset sent the world into a frenzy. But I’m here to tell you we’re about to see something even bigger. I’m talking about a 100% supply shock... And it’s happening next year. We’ve never seen anything like this. And it’s creating a limited opportunity for those who know how to connect the dots and set themselves up early. The chip shortage we’re seeing right now... The 2011 rare earths crisis... The 1979 gold panic... The 1973 oil embargo I highlighted above... None of these saw their supply cut by more than 50%. Yet anybody who got ahead of these shocks could have seen gains like 1,272%, 2,150%, 3,988%, and even 13,025%. Just $1,000 invested into each would be worth $208,350. Now, we’re set to witness something much bigger in the crypto market. Unlike the current supply-chain crisis we’re in, the mainstream press is completely missing this looming supply shock coming to bitcoin. That’s why in this special report, I’ll explain exactly what it is... and how you can position yourself to profit from it. The “Final Halving” While we can never know the exact amount of gold and oil there is in the ground, we do know the exact number of bitcoin that will ever exist. There can never be more than 21 million bitcoin in existence. That issuance is strictly regulated by computer code. The “Final Halving”: Teeka’s Top Six Coins By Teeka Tiwari www.palmbeachgroup.com 2 The Federal Reserve can print as many U.S. dollars as it likes, and mining and fracking can produce more gold and oil... but the number of bitcoin will never exceed 21 million. This pre-programmed rarity is precisely why bitcoin has wildly outpaced other investments over the past decade. Smart people are realizing it’s one of the best ways to protect – and actually increase – their purchasing power in the face of rampant money- printing and rising inflation. But bitcoin’s code contains another feature that isn’t only anti-inflationary – but also deflationary . So over time, fewer and fewer bitcoin will come to market. This deflationary feature in bitcoin’s code is called a “halving.” A bitcoin halving is when the supply of new bitcoin is cut in half, once every four years. The first bitcoin halving in 2012 reduced the amount of bitcoin produced every day from 7,200 to 3,600. The second in 2016 dropped it from 3,600 to 1,800. And the most recent halving in 2020 cut it from 1,800 down to 900. There are still 29 more halvings left before new bitcoin will cease being produced. The next one in 2024 will reduce the new supply of incoming bitcoin from 900 per day to 450. Then, bitcoin will halve again in 2028 – and so on – until the last halving in 2140. That’s the story everyone’s been told. But I’m here to tell you all those halvings are irrelevant. They no longer matter. The real “Final Halving” is coming in 2022. And it’s going to make all the previously scheduled halvings obsolete. The Final Halving isn’t one of bitcoin’s pre- programmed halvings. It wasn’t coded by bitcoin’s pseudonymous creator, Satoshi Nakamoto. It’s much bigger. Here’s what’s going on... A group of bitcoin insiders have done something that was supposed to be impossible. They’ve discovered a “backdoor” way to reduce the amount of bitcoin coming to market all the way down to zero... but instead of waiting until 2140, my research tells me it will happen in 2022. This will “pull forward” 118 years’ worth of halving gains in just one year. It’s like the 1970s Oil Shock on steroids... And nobody’s talking about it. Think about the potential here. Each and every time bitcoin has halved, it’s triggered a massive bull run. The 2020 halving set off a 10x gain. The 2016 halving triggered a 50x gain... And the 2012 halving delivered a 100x gain from then to today’s prices. And some of the small coins attached to bitcoin have soared 100x, 200x, and even 500x higher in the months following a bitcoin halving. Now, imagine what could happen – from not one halving – but from the equivalent of 29 halvings at once. I’m talking about a potential 100% supply shock in one of the most valuable asset classes in the world by next year. We’ve never seen anything like this. I predict bitcoin will reach $500,000 within the next five years. That’s a nearly 755% gain from today’s prices. And when it does, we’ll trace it back to this Final Halving. www.palmbeachgroup.com 3 Now, I know some of you might be asking, “Teeka, why don’t I just buy bitcoin?” You should absolutely buy bitcoin. But if that’s all you buy, you’re potentially leaving millions of dollars on the table. And the reason is very simple... Whenever there’s a supply crunch, it sends large assets (like bitcoin) surging... But it sends the smaller assets attached to the major asset even higher I’ll use the chip market as an example. It’s at the epicenter of the current supply chain crisis and is currently experiencing a supply shock as high as 33%. As a result, established chipmakers like Intel and AMD have gone up as much as 240%. But smaller plays connected to these bigger names have skyrocketed as high as 14,000%. That’s more than 58 times higher. And that’s a halving in a nutshell. It reduces the amount of supply, causing prices to go up. And it can make an asset like crypto soar to heights beyond what you can imagine. We’ve seen this before. Halvings have led to some of the biggest gains in our Palm Beach Confidential portfolio. My subscribers who positioned themselves before the 2016 bitcoin halving saw the chance to make gains as high as 14,619% and 26,977%. And those who got in before the 2020 halving saw some of my picks soar as high as 2,950% and 5,121%. That’s why my team and I have been working feverishly to find the coins that are set to profit the most from the Final Halving. After all, the past halvings only reduced supply by 50%; this time, it’ll go down by 100%. Just like AMD and Intel benefitted from the shortage in chips, this will take the price of bitcoin higher. So while bitcoin could 10x from here, we’ve found six plays that could soar an order of magnitude higher. It’s almost like having 50-1 leverage without having the risk of using borrowed money. That’s how amazing these investments are. In this special report, I’ll explain the two catalysts behind the Final Halving... And most importantly, I’ll reveal the names of six tiny coins tied to bitcoin that can shoot even higher than the flagship crypto. Friends, let me be clear: These picks are your chance to catch up. As long as you get in on these six coins before the Final Halving gets underway, they could deliver the biggest halving gains yet. First Final Halving Catalyst: Drastic Supply Cuts For five years now, I’ve talked about crypto halvings more than anyone in the newsletter business. And thanks to those halvings, I’ve arguably helped more people become millionaires than anyone else in this industry. So you can see, halvings are important events with the potential to change your financial life. But not every halving is known. There are what I call “secret” halvings. If you watch the news, you haven’t heard a word about them. The mainstream financial media doesn’t know about them. That’s because they’re not meeting with developers... They’re not getting pitched to join the boards of blockchain startups. They have no idea what’s going on in this space. www.palmbeachgroup.com 4 What they’re missing is this: The biggest “halving” of all is about to happen. And it all has to do with some shocking evidence I’ve uncovered. As outlined above, bitcoin’s code issues 900 new tokens each day, which goes directly to the miners. At current prices, that’s the chance to earn around $45.4 million worth of new bitcoin every day. Not bad for a day’s work. But there’s one problem... Historically, bitcoin miners haven’t been able to hold the bitcoin they mine. They’ve had to sell it to fund their operations. Since bitcoin’s inception, it’s been plagued with negative connotations to the drug market, gun running, and money laundering. That made it taboo for the gatekeepers of traditional finance to touch. So bitcoin miners haven’t had access to traditional sources of capital. Think about it. For years, the mainstream hated bitcoin. They labeled it a scam. The last thing a big, respectable bank wanted to do was loan money to bitcoin miners. So if you were a bitcoin miner, and you didn’t have access to traditional sources of capital... you were forced to sell your bitcoin to fund operations. But now, that’s all changing. Over the past few years, we’ve seen major adoption in the crypto market. And today, just about every big bank is getting into crypto. Morgan Stanley, Goldman Sachs, JPMorgan... you name it. That means the miners can raise all the money they need through the capital markets (equity or debt). Take Cipher Mining, for example. It’s been mining bitcoin for years but had to sell its stash because no major financial institutions would fund it. But guess what? Fidelity and Morgan Stanley recently plowed $425 million into this project. Now that Cipher is sitting on $425 million in cash, do you think it’ll ever have to sell its bitcoin again? The answer is “no.” Another bitcoin miner, Marathon Digital, recently received a $100 million line of credit from a Wall Street-backed bank – with bitcoin as collateral. It can purchase all the new mining equipment it needs without touching its bitcoin stockpile. Three years ago, Marathon couldn’t get $1 million – let alone $100 million – in funding from a bank. When I saw this, I realized we’d entered a new phase in this market. Miners will start tapping the public markets for capital. And they’ll never have to sell bitcoin again. You can see it clearly on the chart on page 5. Over the second half of the year, miners have rapidly reduced the number of mined bitcoins they’re transferring to exchanges. Previously, mining companies would make these transfers to sell mined bitcoin. Clearly, they’re not making these moves at the same levels anymore. That figure has gone down by 61% since the start of this year. Miners are currently transferring around 134 bitcoins per day, meaning the average miner is selling only 14.9% of its daily bitcoin haul. www.palmbeachgroup.com 5 In other words, over 85% of the bitcoin miners earn every day is being kept off exchanges and unavailable for anyone – any investor, institution, or fund – to purchase. Soon, there will be no more new bitcoin available to the public. This is why I call these “secret” halvings. Nobody’s factored bitcoin hoarding into their models. So going back to the 900 bitcoins that are unlocked per day... How many of those will the miners – the gatekeepers of new bitcoins – eventually allow to enter the market? I had my team do a deep dive into the financials of bitcoin miners. And based on the latest hoarding data, we forecast the miners alone to cause a 98.2% drop in new bitcoins hitting the market per day by next year. That brings the newly available bitcoin from 900 each day all the way down to 16 But to be a true Final Halving, we need to see a 100% drop. What about the remaining 16? That brings me to the second part of this explosive setup... Second Final Halving Catalyst: Demand Shock Remember, halvings have two sides – a supply side, and a demand side. So far, I’ve only covered the supply side. And while the supply is drying up... the demand is soaring. According to a November 2020 report by Pantera Capital, popular payment platforms Square and PayPal alone are buying up 100% of all newly created bitcoin. Multiple bitcoin exchange-traded funds (ETFs) have launched in Canada this year. And federal regulators are reviewing at least nine proposed ETFs awaiting potential approval. But we’re also about to see an unprecedented demand shock from another area no one is talking about: Credit cards. Let me explain... Many credit cards have started offering bitcoin rewards. With Visa, you can get up to 2% back in bitcoin. And with Mastercard, you can now get up to 3% back. This will be a huge ongoing source of demand no one is accounting for. It bears repeating: No one has accounted for this demand in their bitcoin price models. And this brand-new type of demand will eat up what remains of the bitcoin supply like nothing else ever has. Think of it this way... www.palmbeachgroup.com 6 If you could get paid in an asset that’s averaged 230% annual returns for the last decade – as bitcoin has – would you take anything else? Would you take dollars over bitcoin rewards? What about Diners Club points or airline miles? The average person earns $548 a year from typical credit card rewards. If a bitcoin rewards credit card had been around 10 years ago, the average credit card user would be sitting on an $11 million fortune of bitcoin rewards today. Michael Saylor, the CEO of MicroStrategy, thinks bitcoin could 100x in price in the coming years. If that happened, people switching their rewards from dollars to bitcoin today could end up with as much $584,000 in bitcoin – in as little as 8 years. That’s $584,000 in free money just based on their credit card spending. Let me ask you again: Would you ever want to have a credit card that didn’t pay you in bitcoin? Bitcoin certainly sounds better to me. In fact, all other rewards are nearly worthless in comparison to bitcoin. People are already going crazy for bitcoin rewards. The average credit card is used for around $5,000 of spending per year. But bitcoin rewards cards are averaging at $30,000 per year in spending. People are using these cards six times more than traditional credit cards because they’re eager to reap the benefits in bitcoin. This explains why Mastercard is now launching a crypto-backed card in Asia. Again, this is a new type of demand that nobody has modeled. We’ve never seen this level of transactional demand for bitcoin before. Per year, credit cards process $35 trillion in transactions globally. That’s a massive pile of money – and a chunk of it is headed directly for bitcoin. So let’s go back to my model. How many bitcoins per day is this going to take away? Let’s be ultra-conservative and say just 1% of credit card transactions involve a 2% bitcoin reward. Based on these estimates, you’re looking at up to 276 bitcoin in new demand per day by next year. There’s not nearly enough bitcoin to go around. Now can you see why all future halvings are obsolete? If the credit cards keep up their rapid adoption, our numbers show they could eat up the remaining supply in as little as two months. So two months from now, we could wake up and all the new bitcoin will be accounted for. This is why I call this anomaly the Final Halving. Because we’re talking about an unprecedented surge in demand and a drastic supply shock come together to deliver more than a century’s worth of halvings at once. Bringing It All Together Friends, please don’t wait. You need to get ahead of this Final Halving before it unfolds. Forget computer chips. Forget soaring housing costs. Forget everything you think you know about a supply chain shock... This will be unlike anything you or I have ever seen before. We’re talking about more than a century’s worth of halvings in less than one year. That’s why I’m pounding the table and coming to you today to get in on my six picks. This could be the last opportunity like this you ever see. www.palmbeachgroup.com 7 Look, can I promise that all six of these picks will skyrocket? Can I promise the Final Halving will play out exactly as I expect it to? Of course not. Nothing is ever guaranteed. But here are the facts... The last time we were in a position like this, I recommended a portfolio of five halving picks. Had you invested $1,000 in each of them the day I recommended them, you could have made as much as $82,000. The time before that, you could have made $138,000... And the time before that, you could have made $159,000 and $535,000. All told, from my halving picks alone, you could be sitting on as much as $952,116. But now, you have an even bigger opportunity in front of you. I believe the six small picks I’ll lay out below will give you the best chance you’ll have to profit from a halving – ever. The only catch is you need to act now, before the Final Halving kicks in. Note: We’ve listed the investments in this report in alphabetical order, not necessarily the order we suggest you purchase them. As always, use small, uniform position sizes to create a basket of these coins in your cryp- to portfolio. Using this asymmetric betting style, you can set yourself up for outsized gains without taking outsized risks. Risk management: As always, place no more than $200–400 for smaller accounts and $500–1,000 for larger accounts into this trade. And remember: Use limit orders and wait for the price to come within buy range. Final Halving Coin No. 1: Crypto.com (CRO) The first pick in our Final Halving portfolio is tied directly to the demand growth for crypto reward cards. It’s called Crypto.com (CRO) Its original goal when it launched in 2016 was to develop a crypto debit card, making it easy to spend crypto anywhere in the world. Since then, it has expanded its mission to essentially be a full-fledged crypto banking app. Today, it has a full suite of products, including: • Crypto.com Wallet – An easy-to- use, secure mobile wallet you can use to buy, sell, send, and track all your cryptocurrencies. As of this writing, you can buy and sell 200+ cryptocurrencies. And you can use it to access all Crypto. com’s services. • Crypto.com Card – A range of Visa- approved prepaid cards with a range of benefits. • Crypto.com Invest – Automated trading strategies that make investing in cryptocurrencies easy. Users only need to pay fees on profits. • Crypto.com Credit – Allows you to obtain a loan backed by your crypto holdings. Currently, you can get up to 50% of your collateral. • Crypto.com Earn – You can easily earn up to 14% interest on select crypto deposits. • Crypto.com Chain – A next gen blockchain with low transaction costs designed for payments, DeFi (Decentralized Finance), and NFTs. www.palmbeachgroup.com 8 The Crypto.com ecosystem is powered by its CRO utility token. And Crypto.com continues to add uses for its token. Take a look at the image below which shows the many use cases for the CRO token... To make its products accessible across the board, anyone can use Crypto.com’s services without owning the CRO token. But we think customers will want to hold CRO to get the most out of its services. That process of holding tokens is called “staking.” Source: Crypto.com Whitepaper www.palmbeachgroup.com 9 As you can see above, the more CRO you stake, the more benefits you receive. Certain levels can even get unique benefits such as 100% reimbursement of Spotify or Netflix subscriptions. This innovative model encourages users to buy and hold the CRO token. How It Works It’s useful to run the numbers on what it would look like to be a Crypto.com cardholder. By the end, you’ll see the benefits accrue to CRO holders. In this example, we’re going to buy $400 worth of CRO, stake it in the Crypto.com Wallet, get a Crypto.com prepaid Visa card, and take advantage of the benefits. Now, one thing to know is all rewards are paid in the CRO token. So if you earn $10 worth of rewards, that will be paid in $10 worth of CRO. For simplicity, we’ll assume the CRO price stays at $1 for the whole year. Source: Crypto.com www.palmbeachgroup.com As you saw from the second graphic above, with a starting stake of $400 in CRO, you can get the Ruby Steel Visa prepaid debit card. Keep in mind, this is not a “cost.” The CRO tokens are yours, and you can always sell them if you want. But to take advantage of the benefits of these cards, you’ll need to hold your CRO for at least six months. Let’s say over that time, you pay your Spotify subscription fee on your Crypto.com card... And you spend, on average, $3,000 per month on your card. With the subscription and your regular spending, you’ll get nearly $876 worth of CRO in rewards. In total, assuming a CRO price of $1, you would get an additional 876 tokens. Overall, your CRO stake would grow from 400 to 1,276. That’s over three times more at the end of the year just from normal spending. What’s It Worth? The lines between traditional banking and cryptocurrency banking are quickly fading. It’s only a matter of time before they’re one and the same. And it’s big business. The global banking industry is valued at roughly $7.5 trillion Crypto.com, with its full suite of easy-to-use services – and more on the way – is in prime position to benefit from this influx of capital and shift toward decentralized banking. Today, Crypto.com has over 10 million customers. And within the next five years, we believe it’ll have over 100 million customers. Assuming it can generate $300 per customer (the average for a banking client), it would have $30 billion in revenue. When this happens, we think the market will value Crypto.com around $120 billion, giving it a price-to-sales (P/S) ratio of roughly 4, the same as JPMorgan Chase. [The price-to-sales (P/S) ratio is a company’s market capitalization (the number of outstanding shares multiplied by the share price) divided by total revenue. Generally, a lower P/S ratio means a cheaper investment.] But we also need to factor in the Crypto.com chain – its native blockchain used for sending transactions, DeFi applications, NFTs, and much more. The Crypto.com Chain is processing roughly 74,000 transactions per day as of writing. But we believe Crypto.com Chain can rival the likes of the Binance Smart Chain since they are similar in design. If so, Crypto.com Chain would be processing roughly 15 million transactions per day. And if each transaction costs roughly 25 cents, the network would generate roughly $1.37 billion each year in CRO demand since the CRO token is used to pay for transactions on the network. To get a sense of what this means for a valuation on the network, we can compare it to the likes of Ethereum. Today, Ethereum is valued at roughly 186 times its annual earnings from transaction fees. If we were to apply the same multiple to Crypto. com Chain, it would then be valued at $255 billion. Combine this with the Crypto.com exchange valuation and we get a market cap of $375 billion ($120 billion + $255 billion). That would translate to $14.85 per token when accounting today’s circulating token supply. 10 www.palmbeachgroup.com That’s a 2,376% gain from today’s prices. Enough to turn a $500 investment into $12,377 and every $1,000 investment into $24,754. As mentioned above, I see 10x upside over the coming years for bitcoin. So in less than 12 months, we could see potentially 2.5 times more upside in CRO than bitcoin. It’s like we’re leveraging BTC 2.5-to-1 without borrowing any money. So the time to get in is now before Crypto.com sees a huge influx of new users and its CRO utility token goes sky-high. Action to Take: Buy Crypto.com (CRO). Buy-up-to Price: $1 Stop Loss: None Buy It On: U.S. subscribers can buy it on Crypto.com, Coinbase, or KuCoin. International subscribers can buy it on KuCoin or FTX. Store It On: Crypto.com Wallet Final Halving Coin No. 2: Helium (HNT) The next pick is likely the most unique I’ve ever seen. It’s a decentralized peer-to-peer 5G wireless network that allows users to bypass large wireless carriers entirely. And because it’s decentralized, it’s censorship-resistant. If you don’t know already, wireless technology encompasses all devices and equipment allowing you to transmit data over the air rather than wires. Mobile shopping, web browsing, or gaming wouldn’t be possible without it. 5G is the latest generation of wireless tech. It’s 1,000 times faster than its predecessor, 4G technology. For example, an HD movie that takes an hour to download with 4G tech downloads in just seconds with 5G. This industry is just getting started, but thanks to its speed and convenience, it’ll be huge. According to one report, the 5G market will grow to $3.46 trillion by 2025. However, the prevailing 5G networks come with some drawbacks... We won’t get into all of them here, but one of the biggest is censorship from governments and corporations. That’s because, like most of our major global networks, 5G wireless networks are centralized. So they can be shut off at one single point. For instance, in 2018, China censored searches criticizing term-limit changes that allowed current President Xi Jinping to serve for life. Earlier this year, Russia pressured Google and Apple to remove a mobile app used to coordinate protests against President Vladimir Putin. And according to a report in the Washington Post , Facebook CEO Mark Zuckerberg personally approved censorship of Facebook posts critical of Vietnam’s government. Longtime readers know blockchain technology is censorship-resistant due to its decentralized nature. This means there’s no single central point of attack for malicious actors like hackers... no CEO who can quash dissent in the ranks... and most importantly, no government agency that can censor an entire network. We see the positive impact this is already having in the finance industry, which is adopting DeFi platforms. They allow anyone to trade, lend, or borrow with anyone else in the world without regulators telling you otherwise. It also enables users to hold digital assets only they can control. But blockchain tech expands beyond the finance industry. We’re seeing blockchain tech being applied to eliminate censorship in social media, communications, voting, and much more... like wireless networks, as today’s pick is doing. The project bringing blockchain technology to create a fast, affordable, and censorship-resistant wireless network is Helium Network (HNT) 11 www.palmbeachgroup.com 12 Helium is a decentralized wireless 5G network that’s completely owned and operated by its users – not a sole company or government agency. Anyone can set up a Helium Hotspot to expand the network and earn HNT tokens. These are a little different from the hotspots we’re used to, which involve using our existing devices and services to boost signal or rely on a network provider’s static hotspot locations. Helium Hotspots are small hardware devices that combine a wireless gateway with a blockchain mining device. That means device operators can earn HNT as a reward for providing their services. You can use HNT to purchase data on the Helium network. This creates an economic incentive for people to run Helium nodes, which, in turn, strengthens the network. Unlike legacy communications companies like Verizon or T-Mobile, Helium doesn’t require a sim card or contract to use its services. And there’s no data caps on your devices. You simply pay as you go. Helium can deliver a better product at a lower cost because it incentivizes users to participate and grow the network. And as the network grows, it becomes more secure... because it’s distributed over many individual nodes rather than a single entity. And as you’ll see below, Helium’s army of network providers is growing at a mind-blowing rate... Historic Growth for Wireless Communication Based on our research, Helium is one of the fastest-growing wireless networks in history. Over the past two years, it’s deployed 385,000 nodes in 30,253 cities across the world. And it’s by far the largest decentralized wireless network owned by its participants. There are 3.5 million Hotspots on back-order due to supply chain disruptions... So as supply chain issues resolve over the next year or so, Helium is poised to see its growth rate accelerate. Already, we’re starting to see cities and companies adopt its decentralized wireless tech... In September 2021, San José, California, announced it would become the first city to use Helium’s network to bridge the digital divide... and increase internet access to more than 1,300 low-income families. And in October 2021, Dish Network became the first major carrier to announce it will use Helium’s network for its customers. The amazing growth rate is attracting plenty of capital, too... In August, Helium raised $111 million in an early- stage funding round led by Andreessen Horowitz. This investment came out of Andreessen’s $2.2 billion crypto venture fund and included participation from Ribbit Capital, 10T, Alameda Research, and Multicoin Capital. These are some of the biggest investors in the crypto space... And a strong vote of confidence in Helium’s technology. How the HNT Token Works HNT is used to reward Hotspot operators for maintaining the network. And anyone can mine HNT tokens by setting up a Hotspot. Users also need HNT to pay transaction and data fees on the Helium network. The more data you use, the more HNT tokens you’ll need. www.palmbeachgroup.com And when a customer uses the Helium network, it “burns” HNT tokens (meaning they’re taken out of circulation). This puts pressure on supply, leading to higher HNT token prices. The effect of this is a feedback loop – where higher HNT prices attract more Hotspot operators looking to generate income. And more Hotspot operators equates to a larger network – increasing the network’s capacity for greater demand. It’s important to note that the cost to use the network is quoted in dollars. This means data costs won’t surge as HNT token prices run higher. What’s It Worth? Helium’s goal is to redefine the telecommunications sector by creating a censorship-resistant network owned and operated by individuals instead of a single entity. That makes it unlike any other blockchain project we’ve ever come across. As more people adopt bitcoin and other blockchain technologies as the Final Halving transforms the space, they’ll learn more about decentralized communications networks like Helium. And there’s a huge market for Helium to tap into... According to a forecast by Research and Markets, the telecommunications sector will grow to $3.46 trillion by 2025. Let’s be conservative and say Helium is only able to capture 1% of the global sector. That would translate to a market cap of $34.6 billion... or $344.25 per HNT based on today’s token supply. That’s a 1,034% increase from today’s prices. Enough to turn a $500 investment into $5,667. And every $1,000 investment into $11,334. However, studies show we’re seeing increasing amounts of censorship from corporations and governments. For instance, Hollywood censors movies for Chinese audiences... the Turkish government shuts down internet and social media apps used by protestors... And the Venezuelan government bans news critical of the country’s administration. So we believe the demand for censorship-resistant wireless communication will only accelerate in the years ahead as more people around the world look for alternatives to centralized networks... In this blue-sky scenario, let’s say Helium can cap- ture just 2% of the telecom sector. This would give Helium a market cap of $69.2 billion or a token price of $688.49 based on today’s token supply. That’s a 2,167% increase from today’s prices. Enough to turn a $500 investment into $11,334. And a $1,000 investment into $22,668. That gives it more than twice the upside potential of bitcoin... And with the Final Halving approaching, we could see that upside achieved in less than 12 months. By buying HNT today, we’re positioning ourselves to profit from a company poised to disrupt the entire multitrillion-dollar 5G wireless industry. It doesn’t get any simpler than that. Action to Take: Buy Helium (HNT). Buy-up-to Price: $40 Stop Loss: None Buy It On: U.S. subscribers can buy it on Binance.US or on the Crypto.com mobile app (another pick in our portfolio) with a debit/credit card. International subscribers can buy it on Binance. Store It On: The Helium Hotspot app. See the appendix at the end of this report for full instructions on how to set it up and use it to securely store your tokens. 13 www.palmbeachgroup.com Final Halving Coin No. 3: Illuvium (ILV) Our next pick aims to become the Electronic Arts (EA) of the blockchain gaming and metaverse industry. EA is one of the most successful video game companies in the world. It owns some of the top titles in the industry, including sporting games like FIFA Soccer and Madden NFL , and the popular first-person shooter game Battlefield These household names keep players returning to EA year after year for the latest games. They’ve helped EA generate over $6.3 billion in revenues over the past year. I believe the next pick will do the same for blockchain gaming. It’s called Illuvium (ILV) It’s a decentralized game studio that brings together the crypto and gaming worlds. Illuvium’s first project is an open-world game where players can battle each other for prizes and travel the metaverse for collectibles. It’s similar to the wildly popular Pokémon GO mobile game, which has 150 million players and generated $1.23 billion revenue last year. On the Illuvium platform you will also find the IlluviDEX. It’s a decentralized exchange (DEX) for trading in-game assets to other players. This enables players to generate income as they journey through the game if they are willing to part ways with rare items. Players can also own parcels of land and develop them into mini games for others to play. The possibilities are endless. Next year, Illuvium will roll out its mobile gaming app, which will allow its players to game from anywhere. We expect this to open the doors to millions of users. And remember, this is just the first of many games Illuvium plans to release in the years ahead. What’s more, Illuvium has a layer 2 scaling solution in place for its games that will eliminate the need to pay high transaction fees. [A layer 2 scaling solution combines multiple transactions together and submits them as a single transaction to the mainnet. This means you can bundle thousands of transactions for the price of one.] It’s called Immutable X and it anchors to the Ethereum network for security. Plus, it enables users to transfer digital assets to and from the Ethereum mainnet. As you can see, Illuvium is well positioned to onboard the next million gamers into the blockchain space. And as you’ll see, it has the team in place to execute this vision. Powerful Team and Backers Illuvium is made up of one of the best teams in the crypto space I’ve come across. It includes Kieran and Aaron Warwick, brothers of Kain Warwick. Kain is the founder of Synthetix, one of the most successful DeFi protocols on Ethereum. So the family is highly knowledgeable and involved in the crypto space. They’re joined by Scott McCarthy, who was formerly in charge of Sony’s product and marketing division and head of marketing at video game live-streaming platform Twitch. On top of this, Illuvium has about 130 team members and developers behind the project. This is massive compared to many other projects in crypto... which will give it the bandwidth to develop multiple games each year. As for investors, Illuvium is backed by some of the biggest names in crypto. 14 www.palmbeachgroup.com 15 It recently closed a $5 million funding round led by Delphi Digital. And its private investors include Kain Warwick, Stani Kulechov (founder of Aave) and Sebastien Borget (founder of The Sandbox). How It Connects to Bitcoin Remember, bitcoin is the gateway to the crypto- verse. For many tokens, you need to first buy bitcoin, send it to an exchange, and then exchange bitcoin for altcoins. As bitcoin continues to gain mainstream adoption and expose billions of people to blockchain technology, we’ll see an explosion of decentralized apps (dApps) like gaming. It’s like a rising tide, lifting all the boats. One trend I believe will continue to play out in the months ahead is projects related to the metaverse. And Illuvium, as you can see, will help us gain exposure to this soon-to-be multi-trillion- dollar industry. And as more users jump into crypto – thanks to the Final Halving – we’ll see more players drawn to Illuvium to play the project’s games. And ILV token holders stand to benefit from every transaction they make. What’s It Worth? The ILV token will benefit from players making in-game transactions. These might be resources to help players level up or purchase items or pets to help them win battles. And while you might think this sounds crazy... It’s already happening. Each year, video gamers spend billions of dollars on in-game items. This can be anything from a unique costume to stand out from other players or a powerful weapon that gives you an advantage. In fact, over the past year, Electronic Arts (EA) gamers spent over $4 billion on in-game items alone. This accounted for over 70% of the company’s total revenues. Now, considering the team behind Illuvium, I believe it has the potential to become the EA or Activision Blizzard of the metaverse gaming industry. If so, we’d see billions of dollars in micro- transactions within the game. All of which will benefit ILV token holders. That’s because ILV holders take a 5% cut of all in-game transactions. For example, if a player buys an in-game item for 1 ether (ETH), 5% of this transaction (0.05 ETH) will be sent to a decentralized exchange (DEX) and used to purchase ILV tokens on the open market. These ILV tokens are then distributed to ILV stakers. This economic model puts constant buying pressure on the ILV token from in-game activity. In the years ahead, we believe Illuvium will soon rival EA’s $4 billion-plus in in-game purchases. And it’ll do this largely by enabling players to have full control over their assets. Unlike EA, Illuvium will allow players to swap in- game items for real money. It’s an open system, so players can come and go as they wish without losing their digital assets. And that will likely lead to more transactions. Since transactions aren’t a one-time sale, and they can swap hands hundreds of times, I believe we could see Illuvium generate upwards of five times the revenue EA does from in-game items in the years ahead. If so, ILV token holders would be entitled to roughly $1 billion in profits each year. To get a sense of what this means for token holders, we can compare it to EA’s price-to- earnings (P/E) ratio, which is 47. www.palmbeachgroup.com 16 [P/E ratio measures how much investors are paying for each dollar of current profits.] If we gave Illuvium the same earnings multiple as EA, it would be valued at $47.2 billion, or $72,597 per token when factoring in today’s circulating supply. That’s a 5,270% increase in today’s price. Enough to turn a $500 investment into $26,848. And every $1,000 investment into $53,696. In other words, we’re looking at five times more upside potential than bitcoin. So we’re leveraging BTC 5-to-1 over the next 12 months... A great way to play the Final Halving. By taking a stake in ILV, we’re positioning ourselves to profit from what