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0) I read @MessariCrypto's Crypto Theses of 2021 this weekend:
https://messari.io/crypto-theses-for-2021
Job well done by @twobitidiot and team on the 134 pgs of crypto bliss!
Here are points that resonated, disagree with, or don't understand.
I'm here to learn, lemme know your thoughts!
https://messari.io/crypto-theses-for-2021
Job well done by @twobitidiot and team on the 134 pgs of crypto bliss!
Here are points that resonated, disagree with, or don't understand.
I'm here to learn, lemme know your thoughts!
1) In terms of people to watch - @rleshner is listed (Pg 20 and 59) but I want to highlight him more.
The impact that he had on IMO 2020's biggest story - the rise of #DeFi - can't be understated, as @compoundfinance kickstarted the liquidity mining craze.
The impact that he had on IMO 2020's biggest story - the rise of #DeFi - can't be understated, as @compoundfinance kickstarted the liquidity mining craze.
2) Someone else with outsized impact on DeFi this year was @NomiChef, for better or for worse.
@sushiswap was the highest-profile of the vampire attacks (pg 58) and unfortunately rug pulls (Pg 21) as well - both of which were replicated again and again by other platforms.
@sushiswap was the highest-profile of the vampire attacks (pg 58) and unfortunately rug pulls (Pg 21) as well - both of which were replicated again and again by other platforms.
3) Whatever happened to @nakamoto, @balajis? (Pg 18)
This could have been one of the primary sources of crypto education to teach the masses. I'd love to see it come back to life. https://nakamoto.com/
This could have been one of the primary sources of crypto education to teach the masses. I'd love to see it come back to life. https://nakamoto.com/
4) I've never fully understood the 30% Grayscale GBTC premium. (Pg 24)
Is custody that expensive and valuable to command such a markup? Are there so few alternatives?
Can someone explain this to me? There's gotta be more to it, right?
https://ycharts.com/companies/GBTC/discount_or_premium_to_nav
Is custody that expensive and valuable to command such a markup? Are there so few alternatives?
Can someone explain this to me? There's gotta be more to it, right?
https://ycharts.com/companies/GBTC/discount_or_premium_to_nav
5) Traditional VCs behind the 8-ball - totally agree here (Pg 26). They will have a steep learning curve to figure out ways to outsmart crypto VCs.
Also, why do so many prestigious crypto VC firms start with P - @Paradigm, @placeholdervc , @polychaincap , @PanteraCapital? Odd!
Also, why do so many prestigious crypto VC firms start with P - @Paradigm, @placeholdervc , @polychaincap , @PanteraCapital? Odd!
6) Work to earn - fund, vote, build (Pg 29). I love this.
The first decade of crypto were devs building infrastructure. Their importance will continue, but we're shifting to a time where design and growth are becoming increasingly important.
Read this: https://twitter.com/Cooopahtroopa/status/1336007461719851009
The first decade of crypto were devs building infrastructure. Their importance will continue, but we're shifting to a time where design and growth are becoming increasingly important.
Read this: https://twitter.com/Cooopahtroopa/status/1336007461719851009
7a) Differences between #Bitcoin 
and #Ethereum:
The Bitcoin section (Pg 31) is ~10 pages long, while Ethereum, if we include the DeFi and Web 3 sections (which we should), is about 40.
That's OK, because this is by design!
and #Ethereum: The Bitcoin section (Pg 31) is ~10 pages long, while Ethereum, if we include the DeFi and Web 3 sections (which we should), is about 40.
That's OK, because this is by design!
7b) There is certainly dev work being done on Bitcoin, but it's a largely stable product. That's fine!
There's lots more innovation going on in Ethereum with #DeFi, #NFT, and more. That's what it was built for!
I wish maxis on both sides could accept this and just chill.
There's lots more innovation going on in Ethereum with #DeFi, #NFT, and more. That's what it was built for!
I wish maxis on both sides could accept this and just chill.
8) Layer 1 specialization (Pg 54) - I've said this for a long time.
ETH is winning in DeFi, but there will be other chains who will be successful by finding the "riches in the niches" - @flow_blockchain for NFTs, @hive_blockchain for social content, and others.
ETH is winning in DeFi, but there will be other chains who will be successful by finding the "riches in the niches" - @flow_blockchain for NFTs, @hive_blockchain for social content, and others.
9) Dynamic AMMs (Pg 62) are one of the most complex, misunderstood areas of #DeFi that might have outsized impact on investors' profits.
Impermanent loss is a bitch, and there is so much innovation happening here, but it's all under the hood, and thus under the radar.
Impermanent loss is a bitch, and there is so much innovation happening here, but it's all under the hood, and thus under the radar.
10) #DeFi risk scores (Pg 70) will be very important. With so many platforms being launched, it's tough to figure out which are trustworthy or which will rug pull.
Lots of tools being built - check out @UTU_trust's DeFi portal, @ConsenSysCodefi DeFi risk, and more.
Lots of tools being built - check out @UTU_trust's DeFi portal, @ConsenSysCodefi DeFi risk, and more.
11) #stablecoins will continue to eat the world (Pg 71).
They are the gateway drug to crypto bc they're easily understood.
But as more understand the true value prop of crypto (decentralization), the shift from fiat-pegged SCs to other forms will emerge. See @Meter_IO!
They are the gateway drug to crypto bc they're easily understood.
But as more understand the true value prop of crypto (decentralization), the shift from fiat-pegged SCs to other forms will emerge. See @Meter_IO!
12) I agree that synthetics (Pg 90) are poised for huge growth because pretty much anything can be considered a synthetic, right?
Half joking.
I'm a big fan of what @synthetix_io and @UMAprotocol are building.
Half joking.
I'm a big fan of what @synthetix_io and @UMAprotocol are building.
13) Exchanges (Pg 101) - Similar to how stablecoins are the gateway drug to other crypto assets, CEXs are the gateway drug to DEXs.
They'll always have a role in the crypto ecosystem, but their impact will be diminished as everyone becomes more educated on being bankless.
They'll always have a role in the crypto ecosystem, but their impact will be diminished as everyone becomes more educated on being bankless.
14) I find it weird that Messari groups Web3 and NFTs together (Pg 111).
Seems arbitrary to lump Filecoin and digital art together.
Seems arbitrary to lump Filecoin and digital art together.
15) NFTs are all the rage rn, but I don't have a good idea on how big this space will be.
I totally get how the distribution power of the internet and artist's control over legit supply adds value.
Maybe I'm not a big enough fan of art to dig into this. Or maybe I'm dumb.
I totally get how the distribution power of the internet and artist's control over legit supply adds value.
Maybe I'm not a big enough fan of art to dig into this. Or maybe I'm dumb.
16) Social/community tokens (pg 119) - I worked in the pro sports world and I absolutely love what @Chiliz / @socios is doing with fan tokens.
I'm not so sure about personal tokens, at least for non-celebrities. Regulations will be detrimental and effort just wont be worth it.
I'm not so sure about personal tokens, at least for non-celebrities. Regulations will be detrimental and effort just wont be worth it.
17) Data marketplaces (pg 123) are sleeping giants. Bc they are boring and mostly enterprise-focused, they'll never get the hype of DeFi, NFTs, etc.
But they will weaken the stranglehold Web 2.0 apps like FAMGA have on our data and will allow us to monetize our data. Powerful.
But they will weaken the stranglehold Web 2.0 apps like FAMGA have on our data and will allow us to monetize our data. Powerful.
18) Regulations (Pg 125) - eeesh, yuck, bleh, puke. So boring but so important to everything in the space.
I live in DC, so I couldn't get away if I wanted to.
Follow @coincenter, @NeerajKA, @valkenburgh for the best policy-related education. Worth it.
I live in DC, so I couldn't get away if I wanted to.
Follow @coincenter, @NeerajKA, @valkenburgh for the best policy-related education. Worth it.
19) There's much more in the report that I didn't mention, definitely give it a read! Let me know what you think of my thoughts above.
https://messari.io/crypto-theses-for-2021
Great job by @twobitidiot, @WilsonWithiam, @jpurd17 , @RyanWatkins_ , and the rest of the @MessariCrypto squad!
https://messari.io/crypto-theses-for-2021
Great job by @twobitidiot, @WilsonWithiam, @jpurd17 , @RyanWatkins_ , and the rest of the @MessariCrypto squad!
