CoinFund’s investment thesis for Compass

Links: Compass; CoinFund Portfolio

Thesis Summary

  • Active Demand Drivers: There remains a large gap between the low quality and low margin retail-focused ‘cloud-mining’ businesses of the past and the growing demand for value-added, relationship-driven, Proof-of-Work (PoW) marketplace which Compass enables, similar to how Expedia and other OTAs have connected previously-fragmented pockets of travel demand and supply. …

CoinFund’s investment thesis for Dapper Labs and the Flow blockchain

Links: Dapper Labs; NBA Top Shot; Flow Primer; CoinFund Portfolio

Thesis Summary

  • Dapper Labs is successfully building the network of choice for games, collectibles, and other interactive content via its Flow blockchain and associated token, $FLOW.
  • NBA Top Shot is already demonstrating robust social traction, user engagement, and setting new records regularly in total volume and on a per transaction basis for their licensed game highlights (Moments), validating blockchain technology as an incremental driver of revenue for content.
  • The Flow blockchain itself is technologically impressive and offers improved consensus, fees, off-chain compute, and programming language accessibility when compared to other popular blockchains.

Today, I’m excited to announce that I have joined the investment team at CoinFund, and am eager to contribute to the continued momentum and future success of the firm’s network lifecycle investing approach which covers liquid, venture, and cryptonative investing in the blockchain space. Blockchain continues to be a fascinating, humbling, and uniquely interesting space. But before we get to talking about the future, I thought it was an appropriate time to take a look at the recent past.

There has never been a more exciting time to be in the space, where the pace of innovation is inspiring, at…

Examining the historical record of China-domiciled mining operations, international entrants, and the implications of the CCP’s new blockchain policy on Bitcoin’s security model

The Leshan Buddha in Sichuan (the province which leads Bitcoin hashpower)
The Leshan Buddha in Sichuan (the province which leads Bitcoin hashpower)
The Leshan Buddha in Sichuan (the province which leads Bitcoin hashpower)

Introduction: Miners Still Matter More Than Most Think

The mining process for Bitcoin and other cryptocurrencies of similar architecture (grouped together as “Proof of Work” coins) has remained essentially unchanged in principal since the first blocks were generated by Satoshi in 2009. However, the actual hardware that runs the mining node software has improved dramatically in speed and energy efficiency over the last 10 decades, as the increase in the bitcoin price in the intervening period ignited the dynamics of free market competition for the…

As Bitcoin’s success is now a necessary (but not sufficient) condition for the entire digital asset ecosystem to thrive, we examine and challenge the major bull and bear near-term narrative drivers for BTC over the next 6–12 months.

Bitcoin dominance index, circa 2019 (Colorized)

Introduction: Bitcoin Drives the Bus, Everything Else is Along for the Ride

There is a tendency for people to overcomplicate matters, whether because they’re unsure of their convictions, or have something they’re selling. While there are plenty of projects that have continue to design, build, pivot, and launch new features or main nets to broaden the possibilities and capabilities of the digital asset ecosystem, I’m increasingly of the belief that how Bitcoin (BTC) acts…

Looking beyond the hype to review the actual building blocks of institutional investment adoption from an evidence-based analysis of potential sources of inflows.

The precarious path to institutional adoption may feel wobbly at times…

Introduction: Professional Managers Have a High Bar for Entry, but No Dogma Against It Either

Let’s start with refuting a common myth that remains pervasive for much of the retail investors: the dream that institutional investors are going to come in and market-buy bitcoin and the rest of liquid cryptocurrencies without discipline or a long-term plan (or their own price targets at which they’d trim initial positions). At the same time, there is also a continued tendency for many digital asset enthusiasts to conflate all non-retail investors as “institutional”, despite major differences…

Exploring the claims behind the persistent criticism commonly leveled against cryptocurrency, and why the Greater Fool Theory fails to make its case convincingly when scrutinized.

Early investor / adopter of cryptocurrencies, circa 2019 (colorized)

Introduction: The Many Faces of the Greater Fool

There’s not a specific definition or even attribution of the origin of the Greater Fool Theory (hereafter abbreviated to GFT), probably since the concept of investment mania divorced from fundamentals has existed for as long as trade and commerce. While definitions are extremely important, the lack of a formal origin means we’ll have to settle for the slightly more imprecise language of convention. …

What a bitcoin ban could look like, and how the worst case scenario might be avoided in favor of finding common ground between crypto-enthusiasts and lawmakers as digital asset policy takes center stage.

Uncle Sam eyeing the nascent digital asset industry with curiosity and suspicion.
Uncle Sam eyeing the nascent digital asset industry with curiosity and suspicion.

Introduction: Beating Them vs. Joining Them

There was an early moment in bitcoin history when its mysterious creator, Satoshi Nakamoto, urged caution just as the community was eager to help support Wikileaks via donations, citing that at that time (this was early 2010), the need for the project to grow stronger and avoid the risk of destruction relied on staying under the radar. This summer, we’ve seen an unprecedented level of interest from…

Why accelerating adoption of distributed (Libra) and decentralized (Bitcoin) forms of value transfer and storage is now a matter of when, not if.

Introduction: Simplifying the Set of Outcomes

Whenever market volatility flares up, I find it helpful to take a step back and compress the continuum of possible outcomes for the digital asset movement into a simplified case of three potential future realities which I’ll call the Lesser, Equal, and Greater scenarios (think of them like math expressions). In the Lesser case: digitally scarce assets fail to scale effectively in usage and mind-share, and are relegated to the dustbin of history along with other failed innovations, and we see the total cumulative value of digital assets decline along with popular interest as a majority of current developers and…

Comparing expectation versus reality, getting the most out of the conferences and social calendar — a retrospective on the past 2 weeks and summary of key lessons learned.

The place where the magic happens (Consensus @ the Hilton on 53rd/6th Ave). NYC residents can probably smell the chicken and rice already!

Introduction: My Approach

Like everything else in the frontier world of digital assets, the flurry of activity in mid-May centered here in New York City has multiple names, which might confuse those on who haven’t yet had the pleasure of immersing themselves in digital assets full-time. What’s called Blockchain week by some, is also known as “Consensus” by others, referring to the largest conference by attendance, organized by CoinDesk. As further clarification, Ethereal, which is…

Evan Feng

NYC-based digital asset L/S investor @ Traditional finance background (IB and HF x2), now seeking to understand and price the future of $.

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