1/ Some jumbled thoughts on private market valuations:

Private valuations in crypto are fucking insane rn. Pre-launch tokens were going for $10-$25M 6-12 months ago

That is now $50-$100M

I'm (sometimes) willing to pay this for A+ team, traction, and huge market
2/ Why are prices going up?

-Money flowing into crypto funds, which are getting bigger and need to deploy that capital
-Blue chip DeFi token vals going higher, which everything gets comped against
-TAM getting bigger as DeFi explodes
3/ What is the right price for this stuff?

I have no idea.

📉There is an insane amount of technical, execution, regulatory risk in all of this.

📈But the market size of globally accessible financial products is pretty close to infinite
4/ Is this re-pricing good? In some ways yes - a lot of these tokens are still undervalued.

But there are downsides - if you sold tokens at $100M and they unlock in a bear market in twelve months, investors will dump in a second. Same with community.
5/ How are we responding?

I'm saying no to more and more private deals and shifting capital into low and mid-cap liquid tokens

Tokens that fall in this category:
6/ $INDEX is on a $3M+ annualized revenue run rate and trading at <$100M

Every metric up and to the right

duneanalytics.com/jdcook/Index-C…

H/t @jeffcook
7/ $CREAM is at ~$100M, starting to see dividends of yEarn integrations, tons of traction w/ Iron Bank, and lots of activity on BSC. Oh and has $100M's in TVL...
8/ TLDR Founders should raise money at the best terms that they can get from investors they want to work with

But there's a cost to everything - locking in investors and community at a high valuation amplifies market risk

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