Phenom Pro: Altcoin Season: Now With 100% More Institutions

I know you’ve been patiently waiting for that glorious altcoin season to shower you with riches. Well, guess what? The hints are starting to show. But before you dust off your bags of obscure tokens from 2017, let me stop you right there—this isn’t the altcoin season you’re used to. Most people are looking in the wrong places, chasing ghosts of cycles past. Let me explain why this time, it’s different.

The Economic Backdrop

The business cycle is doing its thing, moving into those later stages where the ISM is above 50. For those of you who slept through economics class, ISM stands for the Institute for Supply Management’s manufacturing index, and above 50 means the economy is expanding. That just happened for the first time in three years. When the economy’s feeling frisky, people start throwing money at riskier stuff—like altcoins. Liquidity is also expected to rise (it already is heavily in China), which is just a fancy way of saying there’ll be more money sloshing around looking for a home. And where better to park that cash than in the wild west of crypto?

times feel tough right now. The market’s been a rollercoaster particularly this past week. But this is all part of the cycle. We’re tracking as usual for an altcoin season; people are just too caught up in trying to time it perfectly based on past cycles. Newsflash: the market doesn’t care about your carefully plotted charts from 2021.

Where’s the Money Going?

Here’s the kicker: this time, the new capital isn’t coming from your buddy who just discovered crypto on TikTok. It’s from institutions—those big, boring entities that were previously sidelined by regulations. Well, they’ve got the green light now, and they’re not going to waste their time on your favorite dog meme coin or some ghost chain that’s been abandoned since the last bull run. Instead, they’ll flock to:

• Bitcoin: The granddaddy of crypto, because it’s the safe bet.

• Majors like Ethereum ($ETH) and Solana ($SOL): ETFs make it easy, and institutions love easy.

• Crypto equities like Coinbase ($COIN) and Robinhood ($HOOD): Tradfi understands stocks better than magic internet money.

• Alts with real business models and revenues: Shocking, I know— but actual fundamentals might actrually start to matter in crypto?

The Game Changer: Token Buybacks Are Legal Now

Speaking of regulations, remember that Uniswap lawsuit? Yeah, it got dropped, which means building onchain is now “legal” in the US. This is huge because it allows protocols with real revenues to start buying back their tokens. Think of it as a crypto version of stock buybacks, where the protocol itself becomes a consistent buyer of its own token.

Why does this matter? Because it changes the game. Instead of having thousands of useless governance tokens that just inflate away into oblivion, we might actually have a few that accrue value from real revenues. It’s like having a built-in Michael Saylor for your token—except it’s automated, daily, and transparent. No more hoping some whale decides to pump your bag; the protocol itself has your back.

Exhibit A: SkyEcosystem

Take Sky (formerly Maker), for instance. They’re already doing this and have been the best-performing asset during the recent market downturn. While everything else was bleeding, Sky was sitting pretty. Not too shabby, huh? And it’s not just them. Protocols like Jupiter and Ethena might soon follow suit, especially with the SEC softening its stance. As we move deeper into this business cycle—where risk-taking becomes the name of the game—this trend is only going to pick up.

The Bifurcated Altcoin Season: Winners and Losers

So, what’s the takeaway? Altcoin season is coming, but it’s going to be a tale of two cities:

1. The Winners: Protocols generating real revenue and buying back their tokens—or those speculating that this will happen soon. These are the ones that will accrue value. Think sustainable business models, not hype-driven pumps.

2. The Losers (or Maybe Not): The usual suspects—dog shit tokens that might have their 15 minutes of fame. Sure, they’ll pop off occasionally, but good luck timing that. It’s like playing whack-a-mole with your life savings.

Here’s a little visual to hammer it home (imagine I’m sketching this on a napkin over beers):

My Advice

Pack your bags wisely. Don’t chase every shiny new token that promises to make you a millionaire overnight. Look for protocols with real revenues, sustainable business models, and—ideally—those token buybacks. That’s where the smart money will be. The obvious trade is sitting right in front of you; don’t trip over it chasing the next meme coin moonshot.

And remember, in crypto, the only thing more unpredictable than the market is your WiFi connection during a pump. So, stay connected, stay informed, and maybe, just maybe, you’ll come out of this altcoin season with more than just a bag of regrets. Cheers to that!

If you are interested making money in crypto consider our premium service. Phenom Premium offers directs buy and sell recommendations from Phenom Ventures Founder, Eric Muschinski.

With decades of experience in the financial and venture industry Eric has a proven track record of investing in early winners and regularly provides trade alerts with returns below through Phenom Premium.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.