/ Writing
/Welcoming Tony Sheng and The Next Steps For Multicoin Capital
Today I’m excited to announce that Tony Sheng has joined Multicoin Capital as a Principal on the investment team. With deep experience as a product leader at companies like Google, AltspaceVR (acquired by Microsoft), and Decentraland, he brings a unique, user-focused perspective to the firm and the ecosystem as a whole. He’ll be based in Los Angeles, and will be working on new deals and helping our existing portfolio companies.
Vitalik conceived Ethereum as the world computer: a single, composable, open, permissionless state machine that could run trust-minimized code. And while Ethereum was a breakthrough on many fronts—P2P layer, deterministic state machines, composable smart contracts and more—it was lacking in many others.
A year ago I illustrated the Web3 stack as I understood it at the time. More recently, I published Multicoin’s crypto mega theses, detailing the investment thesis for Web3. As I highlighted, one of the key implications of Web3 is that data ownership and application logic will be unbundled.
Numerous smart contract platforms (e.g. Ethereum 2.0, Polkadot, Dfinity, Near Protocol, Algorand, Kadena, Spacemesh, and Solana) are launching in the next year or two. Each team is pursuing a unique scaling strategy. Most of these approaches, however, do not address one of the fundamental problems with distributed computing systems in Byzantine environments: the clock problem.
Today I’m excited to announce that Multicoin Capital has led a $2M seed round in Torus with, including participation from Binance Labs, Coinbase Ventures, Accomplice, Sixth Horizon, and Terminal.
I’m excited to announce that Multicoin Capital has co-led a $3.5M investment in dfuse with Intel Capital, including participation from Diagram Ventures.
Today, Ethereum is the leading smart contract platform. While the trust-minimization properties of Ethereum are compelling, many developers are realizing that Ethereum simply cannot support the applications they want to build. Because of this, developers are choosing to build on other chains at an increasing pace. What applications are being unbundled from Ethereum, what applications are increasingly bundling around Ethereum, and what are the long-term implications for ETH’s monetary premium?
Among the crypto development and investor communities, the most popular term is “protocol,” and for good reason. Everyone is building a protocol (and presumably these protocols offer investors and employees some way to generate returns).
/Binance Coin ($BNB) Analysis and Valuation
Binance is the crypto exchange that best exemplifies Bezos’s famous quote. The industry leading exchange charges the lowest fees in the industry as a strategy and competitive advantage.
I’m proud to announce that Multicoin has led a $2.5M seed round in The Graph. We believe that The Graph is going to be one of the most important protocols in the Web3 stack.