The current crypto VC investing barbell:
1) Tokenization & stablecoins:
There is a new cohort of founders entering the industry with backgrounds from Stripe, PayPal, Meta and others. These founders are extremely impressive on paper, have strong experience with fintech and understand how to build real revenue-producing businesses at scale.
Investing in this category requires an understanding of traditional payment rails, the entire money transfer process and where there is room for disruption. It also requires understanding of distribution in the TradFi/regulated products space. This is not something a lot of crypto VCs have.
Not to mention, the founders of these types will start attracting much more interest from traditional VCs, making competition more difficult.
2) Extreme degen speculative apps:
On the far other end of the barbell is extreme variations of prediction markets, sports betting, unique spins on gambling, and things like ‘tap trading’ or other forms of speculation.
To invest here requires a deep level of understanding onchain culture, what users really want, and what a good product is. These founders truly understand the Gen-Z and onchain native market like none others, usually because they once were ‘trenchers’ themselves.
These apps have revenue baked in and can truly generate a self-sustaining business without the need to launch a token. Very bullish.
They also have potential to exit to major companies in traditional gambling.
1) Tokenization & stablecoins:
There is a new cohort of founders entering the industry with backgrounds from Stripe, PayPal, Meta and others. These founders are extremely impressive on paper, have strong experience with fintech and understand how to build real revenue-producing businesses at scale.
Investing in this category requires an understanding of traditional payment rails, the entire money transfer process and where there is room for disruption. It also requires understanding of distribution in the TradFi/regulated products space. This is not something a lot of crypto VCs have.
Not to mention, the founders of these types will start attracting much more interest from traditional VCs, making competition more difficult.
2) Extreme degen speculative apps:
On the far other end of the barbell is extreme variations of prediction markets, sports betting, unique spins on gambling, and things like ‘tap trading’ or other forms of speculation.
To invest here requires a deep level of understanding onchain culture, what users really want, and what a good product is. These founders truly understand the Gen-Z and onchain native market like none others, usually because they once were ‘trenchers’ themselves.
These apps have revenue baked in and can truly generate a self-sustaining business without the need to launch a token. Very bullish.
They also have potential to exit to major companies in traditional gambling.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
