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Meltem Demirors Profile picture
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7 Dec, 5 tweets, 2 min read
1/ the scale of FinTech in China is mind blowing

in one year, Ant Group originated loans to 500 million consumers

this is unsecured lending, done 100% via mobile, with Ant providing the origination and servicing and banks underwriting the loans

wsj.com/articles/jack-…
2/ Ant takes none of the capital risk, but takes 30-40% of the interest on the loans for providing the technology and servicing

capital is no longer a competitive advantage!

lending as a service is coming, and FAST
3/ as covered in our @CoinSharesCo #CryptoCreditSummit, the crypto ecosystem has figured out securitization and is now figuring out lending

while crypto lending today is 100% collateralized (backed by assets), unsecured lending is coming!

learn more: coinshares.com/insights/crypt…
4/ whether CeFi, DeFi, or CeDeFi 🙃 - there are only a handful of levers lenders can use to drive higher net interest margins in lending

- reduce cost of customer acquisition
- reduce cost of capital
- increase lending volume through taking more risk
5/ in the next decade, we'll see trillions of dollars in loans originated, serviced, and settled entirely on-chain, with increased democratization in the underwriting process, which allows interest to be paid to providers of capital instead of institutions who custody capital

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More from @Melt_Dem

Meltem Demirors Profile picture
7 Sep
1/ quick thread on capital markets and their participants

who participates in in capital markets? finance pro's and traders are focused on optimizing the opportunity cost of capital and (1) preserving principal while (2) optimizing growth

you usually start with a goal in mind
2/ understanding the opportunity cost of capital is an important exercise, and one that changes constantly.

if you have 100 bitcoin, your opportunity cost of capital could be 8% income from lending it. or it could be the 20,000% APY you could earn by wrapping it and farming.
3/ opportunity cost of capital is a fancy way of saying "making your money work in the best way possible"

crypto is a $300B market. a lot of ppl who are fundamentally long (holding assets) want to make money while waiting for "number go up"

financialization is inevitable
Read 9 tweets
Meltem Demirors Profile picture
4 Sep
1/ the crypto fundraising scene is *crazy* right now.

there's so much money chasing every deal, so many new funds, and every day i get a text, call, or email from at least 2-3 founders asking for help navigating the landscape.

some insights from 6 years and 200 deals
2/ you get what you optimize for.

if you optimize for valuation and raise a lot quickly, expectations will be high. raising too much and spending too much spirals very quickly.

there aren't many B / C investors, so be careful of the barbell. valuation isn't everything.
3/ don't raise without a STRONG lead! i've done way too many deals where i end up doing a TON of heavy lifting as an angel.

due diligence your investors. know what each investor is bringing to the table. get intros to founders in their portfolio.

bad investors are poison.
Read 10 tweets
Meltem Demirors Profile picture
29 Aug
1/ i see a lot of new ppl coming in and buying random tokens b/c number go up - a thread if u wanna "invest" - not financial advice and DYOR.

many projects launch with a limited supply of tokens. lots of demand, but little supply and sellers are incentivized to hold.
2/ there is often a huge reserve of "unvested" tokens that "vests" and become liquid over a period of time.

as these tokens vest, investors sell and unless there is a consumption-driven demand (staking, liquidity pooling, burning) or sustained buying.

then number go down.
3/ always look at the token emission schedule and distribution!

let's take @chainlink's as an example (no exposure personally or via @CoinSharesCo )

@MessariCrypto aggregates this data (i'm an investor in that co) so it's a good starting point

messari.io/asset/chainlin…
Read 11 tweets
Meltem Demirors Profile picture
19 Aug
1/ how does #Bitcoin fit into an investment portfolio? our latest @CoinSharesCo research “A Little Bitcoin Goes a Long Way” covers this topic

we believe bitcoin has a place in portfolios as an alternative, diversifying asset. Let’s dive in! 🤿👇

coinshares.com/research/a-lit…
2/ bitcoin is being increasingly financialized as an asset. the clearest evidence of the demand for bitcoin as a store of value is the rapid growth of AUM in financial products.
3/ data also supports the thesis that bitcoin is a savings technology - it is increasingly used as a store of value 🔒

data from @glassnode shows that this year alone, 8.7% of bitcoin has been taken off exchange, presumably for long term storage 🏦
Read 13 tweets
Meltem Demirors Profile picture
2 Apr
1/ to all the crypto people obsessing over the recent news of a "digital dollar" - it's terrifying and is basically the opposite of what crypto is all about (systemic hedge, self-sovereign, etc)

what they're talking about is similar to what Sweden has done

a short story...
2/ only 13% of people in Sweden use cash on a weekly basis

by contrast, 70% of Americans use cash on a weekly basis

why the difference? Sweden has great connectivity infrastructure (broadband), small population (under 10M), and a legacy of adopting new technology
3/ most Swedes are using a payment app called "Swish" to pay for things. it's basically like Venmo, and allows free and instant transfers. all you need is a phone number. but...

you still need a bank account to connect it to.

and to have a bank account, you need an identity.
Read 8 tweets
Meltem Demirors Profile picture
25 Mar
1/ time for some fun facts!

how does the government pay for stuff? simple - the federal government collects TAXES.

per @thebalance, the US expects to collect close to $4T in taxes in 2021.

over 75% of it comes out of our paychecks - as individual income tax and payroll tax.
2/ now like many people, the US government spends more than it makes.

before the recent turmoil, the US government's 2021 budget was expected to have a $966 billion deficit.

you can read about the budget here - and i recommend you skim this whitehouse.gov/wp-content/upl…
3/ since we've been doing this for a while, the total national deficit is $23 trillion.

it's more than the entire GDP of the US in any given year (the sum of everything produced)

if you add in unfunded liabilities, the number is closer to $120T

truthinaccounting.org/about/our_nati…
Read 6 tweets

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