1/ On assessing risk in crypto, on the heels of the Terra-Luna crash: You can’t defy gravity in pursuit of growth at all costs. Terra-Luna reinforced how important it is to do the math when assessing any startup (crypto or otherwise). Interest revenue did not cover interest payments, and a whopping 75% of Terra’s market cap was on Anchor rather than being used for its intended utility for transactions like p2p payments on platforms (e.g. Alice, Chai), reflecting less compelling and less sticky revenues.
2/ On what we look for in Web3 founders in this current moment and moving forward: Founders’ attitude and ability to handle delayed gratification. Can founders handle delayed gratification; are they in it for short-term gains vs. taking a long view? Our current bear market may flush out some of the talent who got into the industry for different reasons.
3/ On what’s next for Web3: The next bull market will be more about utility (over hype). In the lead-up, we’ll see more grounded conversations around unit economics, such as what should the delta be between average interest rate on savings accounts vs. various platforms’ average yield on stablecoins? We’re deeply excited about projects whose value is intrinsically tied to the real organic demand for its function rather than the price of its tokens.
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