181–190 of 344 posts
A16Z is obviously well known, but are they respected? I naïvely assumed that they would have access to enough expertise and deal flow to avoid the most absurd losers, but a few examples in the last few months have made me question that. And an important follow up question: do they have enough dry powder to keep sustaining these things?
Earlier quoted context omitted.
Every single one of these web3 companies is going bust. They could all be built without tokens or a blockchain if they wanted to. There are only two things propping up the entire crypto economy, VC funding and fraud. Once the VC money leaves the ecosystem the dominoes will fall.
The older protocols that were built in the depth of 2018-19 bear markets will survive. Many of them are also doing wonderfully well in terms of revenue. COMP, MKR, AAVE, CRV all make a ton in revenue and have a well-defined product-market fit. Crypto projects are tough to value. Their sheer global scale means that they can ramp up revenue and even profits extremely fast. StepN, a move-to-earn app reportedly made $120…
Did they actually, or did they make a bunch of Solana, which is now worth about 20% of what it was when they launched?
Look into SoRare’s volume. They raised over $500m. Volume is now lower than it was way back in 2020. The crypto down rounds are going to be hilarious. Note to investors: if you’re investing in crypto projects, carefully consider the ponzinomics and the vesting schedule. You want your unlocks to happen in the middle of the bullrun when exit liquidity is ample. And also remember that whatever you might think of as “nor…
Maybe everyone just doesn't know where the volume is?
Earlier quoted context omitted.
Every single one of these web3 companies is going bust. They could all be built without tokens or a blockchain if they wanted to. There are only two things propping up the entire crypto economy, VC funding and fraud. Once the VC money leaves the ecosystem the dominoes will fall.
The older protocols that were built in the depth of 2018-19 bear markets will survive. Many of them are also doing wonderfully well in terms of revenue. COMP, MKR, AAVE, CRV all make a ton in revenue and have a well-defined product-market fit. Crypto projects are tough to value. Their sheer global scale means that they can ramp up revenue and even profits extremely fast. StepN, a move-to-earn app reportedly made $120…
Earlier quoted context omitted.
> If "web2" hadn't shut off its own users from any semblance of ownership in the platforms, or had done more for privacy, web3 would have died in 2017. Honestly nobody cares about these things. This is just a narrative that was grafted onto Web3 after the fact.
the users never care The builders do If you’re in the tech field and aren’t worried about privacy, the. I don’t even know what to tell you.
Earlier quoted context omitted.
Crypto is a closed economy. The only way to get USD out is by taking that USD ("wealth") from somebody else who is buying in.
But this is true for any currency
Cryptocurrencies do not share this property. They are zero-sum, which is a hallmark of a Ponzi scheme.
I realize that's an unfair comparison but I think there are many many people who want to throw shade at crypto because a majority of it is rotten and has weighed down on the positive attributes.
I remember, after Loggly raised ~4.2M, our revenues hit $7,500 after about 4-6 months. At the time, I thought the effort to build what we had built, code-wise, could be done by 1-2 people in maybe a couple of years. Marketing plays a big part in how much revenue comes in to a startup. The product also plays a big part, but if the product does what people need it to do, it becomes a marketing task to accelerate growth…
Earlier quoted context omitted.
Crypto is a closed economy. The only way to get USD out is by taking that USD ("wealth") from somebody else who is buying in.
But this is true for any currency
Earlier quoted context omitted.
> I'm genuinely curious what their thought process is. The thought process for VCs investing in crypto is simple: they get a huge discount on the tokens in the raise that they can turn around and dump on retail a few months later for huge returns. Instead of waiting 10+ years for a traditional exit, they can get liquidity in a few months. As Chamath admitted on the podcast, even when they're on a vesting schedule the…
I think the next set of companies will become more smarter in their vesting terms. Just think about it, if these data point of selling claims get be bought to on-chain then I am sure people and next set of companies will not borrow some such investors. because of this particular reason I feel DeFi will replace traditional finance first before any other form of crypto companies takes. A recent IMF admitted that DeFi i…
For example you need to have locked $400 of some token for a "loan" of $100. How is this efficient?