Subscribe for the best research and insights in crypto.
An executive summary is presented below. Download our complete 19 page analysis, including full valuation and price targets:
0x is a protocol for decentralized exchange (DEX) of ERC20 tokens. ZRX is the native token of the protocol. At its core, 0x is a system of smart contracts that can be used by anyone—it is open-source and completely free to use. Developers can use the 0x protocol as infrastructure to build user-facing decentralized exchange applications. 0x is one of the early examples of a protocol using the franchising go-to-market strategy.Read More
Basically, all token pitches include a line that goes something like this: “There is a fixed supply of tokens. As demand for the token increases, so must the price.”
This logic fails to take into account the velocity problem.
In this post, I’ll explain the velocity problem by providing an in-depth example. Then I’ll examine mechanisms that reduce velocity.Read More
We are extremely excited to welcome Vinny Lingham (Twitter, Linkedin) to Multicoin Capital as General Partner. Vinny is the CEO of Civic, a solution for identity verification on blockchain. He was also previously the founder and CEO of Gyft & Yola, Inc.
Vinny is a deep thinker in the space, understanding both the technology and the business implications of crypto. He’s one of the most widely recognized and followed individuals in the ecosystem. He will be joining our investment committee and play an active role in sourcing deals.Read More
Franchising is a widely understood model for retail food businesses. Many of the oldest and most successful retail food businesses in the world are franchises: McDonald’s, Subway, etc.
Newer retail food businesses such as Chipotle and Starbucks never adopted the franchise model. I can’t prove it, but I think was possible because of the Internet. Before the Internet, it was too hard to centrally plan, open, and manage thousands of stores across the world given local nuances and idiosyncrasies. The Internet changed everything. Centrally managed companies used Google Maps, richer retail and real estate data, more granular demographic data, and a plethora of other tools to efficiently plan and grow their retail businesses across many cities.
This is exactly why Internet companies don’t franchise: they use data from the Internet to determine go-to-market strategies, manage customer acquisition funnels, and refine their products.Read More
Many have asked “how would a merger or acquisition work in crypto?”
Although a merger could work in theory, in practice it’s not possible. The economics, individual sovereignty, and lack of drag along rights on both sides will prevent any sort of meaningful and cleanly executable acquisition.Read More
Cryptographically bound peer-to-peer networks (henceforth called “crypto” for short) are going to be one of the defining technologies of our lifetimes. They enable fundamentally new forms of social organization.
These are bold claims. Once you “get” crypto, you’ll understand how crypto enables a new kind of social structure. I’ve tried to – and failed – to explain this concept to many people. Understanding the deepest and most profound implications of crypto can be difficult as crypto challenges many basic tenets of modern social structures and capitalism.Read More
Society is transitioning from the industrial age to the information age, and data is becoming the world’s most valuable resource.
As humans continue to generate countless petabytes of data, the question of where and how to store it becomes increasingly important. Migration from on-premise storage to cloud storage has been the major theme of the past decade, and the trend is accelerating. The tech giants currently dominate this market. Amazon, Google, Facebook, Apple, and Microsoft each control a huge share of the world’s data. But this existing system leaves much to be desired. It’s insecure, expensive, centralized, and involves putting a lot of trust in these large corporations.Read More
A common phrase used to explain Bitcoin is “Bitcoin is digital gold.” This statement implies a few things:
- People will always value gold (because people have always valued gold), even if it’s not that functionally useful. Therefore people can value Bitcoin in the same way, even if it’s not that functionally useful.
- Bitcoin is not government sponsored or backed. There is no central bank dictating gold’s or Bitcoin’s money supply.
- Neither asset can be inflated by politicians. There is a fixed amount of gold in the world and a maximum of 21 million Bitcoins.
- Bitcoin and gold are both fungible.
- Bitcoin and gold act as a hedge against the risk of inflationary fiat currencies.
Let’s consider the risks and benefits of Bitcoin in a scenario in which a government becomes unstable and politicians begin inflating their currency to stay in power.Read More
I first met Brian Smith about two years ago during my tenure at Pristine. I was recruiting him to lead and build Pristine’s finance organization. It was the best interview I’ve had with any candidate for any role, ever. Everyone on the Pristine executive team and board of directors loved him. We made him an offer, but unfortunately he passed. He was looking for something bigger.Read More
An executive summary is presented below. Download our complete 16 page analysis, including full valuation and price targets:
Factom is a blockchain protocol built to leverage the security and immutability of Bitcoin (and other) blockchains for the purpose of recording data. Factom exists as a layer above the Bitcoin blockchain, allowing for data to be committed to the blockchain continuously and in real-time, secured by the consensus mechanism of the Factom protocol itself. The Factom protocol takes this security one step further by anchoring the results of this consensus to the Bitcoin blockchain every 10 minutes using a data-efficient Merkle tree. Factom’s native tokens are called Factoids, or FCT.Read More