Multicoin Capital
/ Introduction
We make long-term, high-conviction investments in category-defining crypto companies and protocols across public and private markets on behalf of sophisticated families, foundations, endowments, and institutional investors.
/Our Funds
01/ Master Fund
Founded in 2017, our master fund is a thematic, long-oriented hedge fund that deliver strong absolute returns over a long time horizon through asset selection across market cycles. This multi-billion dollar fund invests predominantly in tokens and is active in public markets, direct investments, and strategic sales.
02/ Venture Fund
We partner with crypto entrepreneurs to reshape trillion-dollar markets. We’re currently deploying out of our third venture fund, a $422 million vehicle raised in January 2022. This fund backs early-stage companies and founders with investments ranging from $1M-$50M.
/ Insights
/Ethena: Synthetic Dollars Challenge Stablecoin Duopoly
Today, we’re proud to announce that our liquid fund invested in ENA, the native token for Ethena Protocol, the issuer of USDe, the leading synthetic dollar. In our blogpost, The Endgame for Stablecoins, we stated how stablecoins are the largest addressable markets in crypto and how yield is the final frontier. While we were directionally right on yield-bearing stablecoins, we underestimated the market size for synthetic dollars.
/Building The Attention Economy
At the risk of being overly succinct, there are broadly two types of assets: 1) Cash Flow Assets — primarily equities and bonds. These assets generate cash flows that investors assign value to. 2) Supply & Demand Assets — mostly applies to commodities and forex. Prices fluctuate based on supply and demand. Recently, crypto has instigated a new type of asset—one valued on attention. Today, “Attention Assets” are primarily user-generated assets (UGAs), like NFTs, creator coins, and memecoins.
Today, DoubleZero (DZ) launched onto mainnet-beta. Multicoin Capital co-led a $28M investment round in DoubleZero earlier this year. Blockchains are globally distributed systems. The core L1 teams have collectively invested $1B+ over the last decade optimizing networking protocols, consensus, execution, and storage.
/Creating The World’s Leading Solana Treasury Company
Today I’m excited to announce that Multicoin Capital, Jump Crypto (the largest trading firm in crypto), and Galaxy (the largest financial conglomerate in crypto) have successfully led a $1.65B PIPE into Forward Industries, Inc. (NASDAQ: FORD), which will use the net proceeds to initiate a Solana treasury company strategy. Each sponsor committed over $100M in USD.
Today, we are thrilled to welcome Brian Strugats to Multicoin Capital as our new Head Trader. Brian will be responsible for providing best execution for the fund, managing our counterparty relationships, providing actionable market context to the investment team, and enhancing our trading capabilities.
/New Modalities for Issuance and Trading
It is effectively impossible for a regular person to create a new tradeable asset on traditional financial rails. Crypto trivializes this. Today, anyone in the world can create new assets on Solana in a few seconds for ~$0 cost. Consequently, there has been an explosion in user-generated assets (UGAs).
Over the past three years, Multicoin Capital has acquired a significant position in JTO, the native token of the Jito Network, across our hedge fund and venture funds. An executive summary of our 45 page asset report is presented below. You may download the complete report and analysis, including our valuation model and price target, by clicking the "Read Full Report" button.
Today, we are excited to announce that Multicoin led an $8M strategic acquisition of GEOD, the native token of the Geodnet Network, from the Geodnet Foundation. Geodnet is a precise positioning network that leverages DePIN economics to power mission-critical localization services for drones, autonomous vehicles, and the tens of millions of robots that will likely proliferate the Earth over coming years.
In 1997, IBM’s Deep Blue defeated then-World Champion Garry Kasparov in a chess match, and it became clear that computer chess engines would soon surpass humans. Interestingly, a well-prepared human working together with a computer—an arrangement often called a "centaur"—could outperform the strongest engines of that era.
Multicoin Capital has been investing in Solana’s native asset, SOL, and the broader Solana ecosystem since Solana’s seed round in May 2018. We have previously published four theses about Solana in that time. The first two were published about nine months before mainnet produced its first block in March 2020. As the Solana network has evolved, so has our frame of reference on how to think about the Solana network, and SOL the asset.