What Projects To Watch In Crypto
I previously mentioned the great work that Mario Gabriele does with his team of writers that he brings together at The Generalist in my summary of Stripe but I’m mentioning it here again because I just did another summary on a post from The Generalist.
This post is about what the most intelligent investors in crypto, that were interviewed by Mario Gabriele, have to say about the projects that are worth paying attention to.
To read the full article on which projects to watch in crypto, click on this click below:
https://www.readthegeneralist.com/briefing/watch-crypto
And to read my summary, keep scrolling down:
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For time tracking purposes, the article, What to Watch in Crypto, from The Generalist was published on June 27, 2021.
Here are the rules that Mario Gabriele had for this interview:
1. Investors were free to share any project or space within the crypto world.
2. Investors could see what other contributors had selected to wrote about.
3. Multiple investors could write about the same project if they wanted to.
4. Investors could choose to remain anonymous.
5. These aren’t all the ideas since some are exclusive only to Members of The Generalist.
Richard Kim
General Partner at Galaxy Interactive
Social Tokens
NFTs were the first step but social tokens are the next.
Social tokens will allow creator companies to sell more stuff to their fans.
Many games today sell in-game currency but that currency is stuck inside the game. What is changing now is that engagement value can take on financial value.
Myles Danielson
Allocator at Hall Capital Partners
Ethereum
The risk adjusted opportunity is very compelling for Ethereum and it has all the following features of a great setup as an investment:
Near Term Catalysts - transition to Proof of Stake and EIP 1559 which could possibly result in a substantial portion of gas fees being burned instead of going to miners which will reduce the overall supply of Ethereum. This is kind of similar to stock buybacks in some sense.
Attractive Valuation - Ethereum did $2.9 billion in fees in May 2021 which results in a $35 billion annualized run rate. $35 billion multiplied by 6.3 is $220B which is essentially a 6.3 price-to-revenue multiple in a world where the top 10 software-as-a-service companies are trading at 40x revenue
Benefit of Portfolio Diversification - interest from many institutions including endowments, foundations and large asset owners are growing. Some examples of this according to Myles are that institutional trading on Coinbase passed retail in 2021, Goldman Sachs and Morgan Stanley made crypto trading available to clients, allocations from crypto have skyrocketed and Bitwise surpassed $1 billion in assets under management.
Long-Term Secular Tailwinds - Ethereum is the base layer for decentralized finance with 99 of the 100 defining projects being built on Ethereum.
Anonymous
Fund manager
Uniswap
This fund manager believes that all of the world's value will eventually be colonized so it will need a venue to trade on and Uniswap could be that venue.
Uniswap is a decentralized exchange (built on the Ethereum protocol).
Monica Desai
Principal at Kleiner Perkins
DeFi Pulse Index
According to Monica, DeFi offers improvements in:
1. Programmability and automation
2. Access and alternative underwriting
3. Composability and interoperability
Crypto is early in terms of really entering the financial world especially since only 2% of wallets use some form of DeFi.
Decentrialized Financial Pulse Index is a capitalization index that tracks decentralized finance projects and is currently indexing the top 6 projects - Aave, Uniswap, Maker, Compound, Sushi and Yearn.
David Fauchier
Fund Manager at Nickel Digital Asset Management
Radical
Radical is an open, protocol-first solution to code collaboration based on Git that uses peer-to-peer replication to ensure that code repositions are genuinely decentralized and doesn’t require internet connectivity.
Kyle Samani
Managing Partner at Multicoin Capital
Helium
Helium is a new business model for deploying and managing wireless networks, where the network itself is owned and operated by anyone who wants to participate and those that do participate are rewarded with Helium.
So Helium is a total reinvention of the traditional telecom network model since it decentralized the process. With Helium, anyone can buy and setup a Helium hotspot and get up and running.
There are 400,000 helium hotspots back-ordered and more than 60,000 Helium hotspots live around the world today so the network is definitely growing fast.
Anonymous
Fund manager
Ethereum
Ethereum still feels like it is just getting started and is getting closer to becoming the internet bond.
Maria Shen
Investor at Electric Capital
Collateralizing NFTs
In the future, NFTs will represent music rights, physical real estate, luxury items and more.
John O' Connell
Investor at True Ventures
Yearn Finance
Yearn currently has around $5 billion invested on its platform which operates similar to a decentralized hedge fund.