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Crypto Mega Theses

Open, distributed ledgers and permissionless, censorship-resistant, trust-minimized computation are going to reshape massive sectors of the global economy. This belief led us to found Multicoin Capital in 2017, and after spending two years with entrepreneurs, business leaders, and investors in this space, we’ve developed more conviction in this thesis than ever before.

$100 Trillion

On October 5, 2018, Yale, the iconic long-term investor that other endowments look to for guidance, made a historic investment in two funds dedicated to crypto, signaling to many that institutional floodgates are officially open.

The Web3 Stack

I have yet to see an actual illustration of the Web3 stack. So this is an attempt. Given how expansive the Web3 ecosystem is, this diagram is almost certainly incomplete, and likely has a few inaccuracies.

On the Network Effects of Stores of Value

This post is a spiritual successor to The Smart Contract Network Effect Fallacy. Bitcoin has a network effect. Many crypto evangelists assert that the network effect of Bitcoin is so strong that hyperbitcoinization is inevitable.

New Models for Utility Tokens

There are three types of cryptoassets: stores of value, security tokens, and utility tokens. General-purpose stores of value should be valued using the equation of exchange because these currencies are independent monetary bases. Examples include Bitcoin, Bitcoin Cash, Zcash, Dash, Monero, and Decred.

Understanding Token Velocity

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.

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Multicoin Capital is a thesis-driven investment firm that invests in cryptocurrencies, tokens, and blockchain companies reshaping trillion-dollar markets.

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