Blockchain Worldwide Tour: 4th stop-Ethdenver 2022-Investments Insights Report & Beyond
What are the leading 100x compounding alpha protocols on Ethdenver 2022?
“I’m focusing on the interception of blockchains & zero knowledge of proof” Vitalik Buterin stated in his talk.
My fourth stop on the blockchain worldwide tour was at the Superbowl of Crypto: Ethdenver 2022. I witnessed the history of blockchain, and I felt the orthodox thinking presence of Vitalik and what he builds, which is a place where the laws of economic gravity have been rewritten by blockchain technology to advocate for the community. The ethos of Ethereum is unique and stands by: “Even billion dollars of capital cannot compete with a project having a soul” by Vitalik Buterin.
For Earth to Mars
Mozart AR: by Steve K- @KingKyong
Investments Insights of Ethereum:
- Ethereum, in the future, will become more secure than Bitcoin with the proof of stake consensus after the merge. PROBABLY NOTHING! Vitalik mentioned in his talk that this merge will take place sometime this summer.
- I highly recommend you pay close attention to this merge, as investors may want to sell to input profits out of the table.
- Generally speaking, throughout my blockchain worldwide tour, the strongest cohesive community of developers I have ever seen is with Ethereum. Indeed, they have the golden touch synergy compared to other communities of blockchain.
- In my opinion, other smart contracts’ platforms have a window/period opportunity to onboard developers & community of web 2, due to high gas fees and the scalability issues of Ethereum layer 1. Nonetheless, after the merge, this will become a different narrative.
- Unquestionably, the blockchain mastermind developer is Vitalik Bufferin, and with the EVM unlimited capabilities, you can build whatever you desire with proof of stake, which will eventually flip the bitcoin market capitalization.
- Ryan Allis, managing partner at Heart Rithm, and a serial entrepreneur with 20 years, recently fairly valued ETH with discounted cash flows at $10k per ETH with a market cap of $3 Trillion (https://www.youtube.com/watch?v=yB9hrM90jJQ).
The promising leading 100x compounding alpha projects on Ethdenver 2022 are based upon:
-My investment thesis: protocols that are driven by exponential network effect value and are in the early stage of growth.
- TOCNIM, which stands for:
- Tokenomics for parabolic alpha
- OG developer of Blockchain in the core team
- Consensus protocol & competitive advantage
- Next milestones within one year
- Inner circle of venture capitals & Inner circle of OG developers
- Market Opportunity Cycle
- Valuation model with Metcalfe’s Law
-The projects that are trending in the community & ecosystem
The following promising investments are:
*I am only going to mention the top highlights of these protocols, even though they pass of the metrics in my investment thesis.
- Railgun- https://railgun.ch/#/
* The core team is extremely cohesive, and their key OG developer, Kieran Mesquita, is the underlying value of the protocol. Furthermore, competitors in the space are looking very closely as to what Railgun is doing (I personally witnessed this while I was interviewing Kieran Mesquita).
- Manta- https://www.manta.network/
*The strong advocates are the top venture capitals in blockchain technology.
2-Smart Contract Platforms
*At Ethdenver 2022, it was apparent that they were the most active community and developers after Ethereum, and that they had the most people present during their talks.
- Osmosis- https://osmosis.zone/
*Stargate (set of upgrades) was released recently and will enable IBC.
- Acala- https://acala.network/
*Acala has a partnership with, Current (https://current.com/), a leading U.S. financial technology company that serves Americans. This partnership has established a new category of hybrid finance (HyFi), which combines both traditional and decentralized financial applications. Furthermore, the strong advocates are the top venture capitals in blockchain Technology.
The more promising investment in Ethdenver 2022
In my Blockchain Worldwide Tour titled, 100x & Beyond, it is my goal & mission to find the greatest trade for a one-time shift of wealth.
My mission then was to find out in the blockchain space who is the Android that you can build Dapps, which I discovered in Portugal, Lisbon at the Breakpoint 2021, and it was Solana. Given that smart contract platforms enabled the highest network effects, which translate to more compounding alpha, and Ethereum is the Apple to build Dapps.
I want to solve the puzzle of one ring that can unified it all, which I call the “Sphere de Copernic” Thus, the underlying question is:
What platform can you build blockchains and leverage the network effect value of almost all the dominant smart contract platforms, such as Ethereum, Near, Cosmos, Polkadot, Solana, Avalanche, and potentially have 100x and beyond alpha?
One ring that can unified it all = Sphere de Copernic
In the Multichain World, what enables the Sphere de Copernic?
Vitalik believes that Cosmos will be an endgame for crypto.
At the Ethdenver 2022, I uncovered a potential platform that is currently the most complete multichain network platform as of today: Octopus Network.
Why is Octopus Network the next generation of Blockchain?
Octopus Network reconstructs the power of blockchain technology to empower web 3.0 in economies of scale.
Sheldon Dearr: Octopus Network Technical Lead
Octopus Network is a multichain interoperable crypto network for launching and running Web3.0. It enables the building of Appchain, which is like launching your own blockchain. Octopus Network provides flexible and affordable leased security, out-of-box cross-chain interoperability, one-stop infrastructure, and a ready-to-be-engaged community for the appchains. Plus, you are able to benefit from the exponential network effects and economics of scale without the need of millions of dollars to launch a blockchain like Polkadot & Cosmos. Appchains automatically get bridging and defi with NEAR Protocol, IBC for Substrate to connect to other chains independently, plus an explorer, indexer, and 4 validators of last resort supplied by the team.
To launch a blockchain (Cosmos Zone) in Cosmos, you will need to bootstrap its own unique active validator set from the ground up. And with Polkadot, you will need the bond required for a Polkadot parachain lease, which costs millions of dollars. In the Octopus Network, each appchain decides its own economic model, including how many tokens it’s willing to pay to Validators for security. In the booting stage, Octopus core team set up four bootstrapping nodes to start the appchain. Then Validators can run their nodes to join the appchain consensus. Octopus Network also runs a full node cluster for each appchain and provides RPC access services. Appchain developers just need to update the front-end configuration, and then the appchain is ready to serve end-users.
I. Investment thesis: My analysis is based upon my investment thesis. That ultimately, you can obtain the highest network effect value with a multichain interoperable network, and OG developer in the co-founder team can achieve 100x & beyond alpha.
Dominant smart contract platforms that Octopus multichain network leverages are the following:
Near Protocol: The core of the Octopus Network is the Octopus Relay — a set of smart contracts running on the NEAR blockchain which implements a security leasing market, bridging, and governance.
Cosmos Network- appchains can utilize an out-of-box IBC pallet to connect with any IBC enabled blockchains directly. This includes connectivity with other appchains, Cosmos ecosystem chains, and other ecosystems that support IBC.
Ethereum Network — via the Rainbow Bridge.
Polkadot Network — via IBC pallet.
Bitcoin & Solana Network — coming soon. Octopus Network were the 3rd party to integrate LINK with Solana, and Octopus Network, aka “OCT” Interlay and ChainX partnerships will help OCT integrate with BTC layer 2s (not necessarily Lightning Network (LN) in the long run, though there is not a deadline/schedule for this yet).
II. Key Components of my Investment Formula: TOCNIM
Tokenomics: As of March 15, 2022, Octopus Network has a total supply and the maximum supply of coins is 100 million, the current circulating supply is approximately 46 million with a small market capitalization of around $75 million and a price of $1.61 per token (source: https://coinmarketcap.com/currencies/octopus-network/), which are great numbers for alpha.
A key highlight stated in the whitepaper:
OG Developer within the Core TEAM: The key component in cutting-edge technology and my investment thesis formula is that within the core team of founders there must be an OG developer within the blockchain space. Unquestionably, in the competitive lightning speed evolving blockchain space, to succeed you have to have an OG developer in the space, if not you will be out of business within approximately three years. I witnessed this first-hand when I was building my start-up using cutting-edge technology.
My definition for an OG developer in blockchain requires having been in the space and building at least from the years 2013–17 and having been exposed to coding in the pre-teen years (around 12–15 years). Thus, the underlying value of the Octopus Network is its OG developer and founder & CEO, Louis Liu. Louis Liu’s background includes:
- Developer for 20 years in the space of enterprise IT, Internet & Big data.
- Studied at Nanjing University and earned a Bachelor’s in Electronic Engineering
- Studied at Tsinghua University and completed a Master’s in Engineering Physics
- Join the blockchain space in 2013, by buying his first batch of Bitcoin.
- After being fascinated by blockchain, as a software developer, he decided to quit his job to be fully immersed in the blockchain space and set up a team to work cross-chain protocols like Cosmos and Polkadot Ecosystems.
- After acquiring a wealth of knowledge in the multichain world he had a light ball moment and founded the ultimate solution in blockchain space: Octopus Network
- He sent a business proposal to the Near Team, which they accepted allowing Near to become one of the first investors.
In addition, the core team of Octopus Network is extremely technical, highlighting Julia Sun, Chief Software Architect at Octopus Network.
Consensus Protocol & Competitive Advantage — Octopus Relay (a set of smart contracts running on Near blockchain) provides leased security to appchains with proof of stake, fast finality, and certified carbon neutral. The key competitive advantage of Octopus Network is clearly stated in this whitepaper:
Thus, the Octopus Relay is not a layer 2 like Polygon and Skale, as it does not give up customizability and evolvability by not attaching to the smart contract paradigm.
Next milestones within one year:
- 2022 -EVM Appchain Template — This already exists but it is not finalized (it is published in OCT docs today, see Barnacle EVM)
IBC Bridge for Octopus Appchain- Cosmos & Polkadot –Milestones 1 for this is already completed. (https://medium.com/oct-network/octopus-network-delivers-first-milestone-of-astar-cosmos-ibc-bridge-7aaa6656ecf5)
Inner circle of venture capital & inner circle of developers of the team: Funding venture capital is well known and they were a11 ventures capital funds in the seed round. The founders are a part of the substrate group in China.
Market Opportunity Cycle: The Octopus Network launched in August 2021, and with the recent market correction, it is a great opportunity to invest in the long-term with dollar-cost averaging. The Octopus Network Mainnet launched October 8, 2021, two appchains have already launched and two appchain candidates, DEIP and Unique One Network, are currently in an audit.
III. Valuation Model: Metcalfe's Law
Theoretically speaking and being conservative, what if a Defi appchain, one-click full-stack financial system is built on Octopus Network that could attract 1% of the market capitalization of the dominant smart contract platforms (like Near, Cosmos & Ethereum) and leverage 1% of TraFi market capitalization with the goal of 1 billion users? By using the key metric of daily active wallets, we can predict the value of the price Octopus token (OCT). Coming soon I will release Metcalf’s Law valuation for the price of OCT with different scenarios.
In conclusion, the Octopus network is an atomic layer with the evolution of blockchain infrastructure, appchain, and it is a great investment with the potential to get to100x compounding alpha for the aforementioned.
Bonus: The hidden crypto gems tools in Ethedenver 2022.
In the crypto world, the more you know, the richer you can get.
While I did not previously know about Token Metrics, I took a leap of faith to go to the event after learning that Token Metrics combines machine learning & AI to make investments decisions in blockchain technology to set you up for financial freedom with a formula that has turned $5K to $5 million for Ian Balina. This grabbed my attention and encouraged me to learn more about this investment algorithm.
During the event, I met several members of the team, I was pleasantly surprised to meet Hugo (ugo100x) since I go by J100x in the blockchain space. After a few minutes, I knew we were perfectly aligned. As they say, great minds think alike.” Hugo shared with me the true story about Token Metrics, and how initially Token Metrics was doing the Blockchain Worldwide Tour, and that during one of the tour stops he met Diego Lara, Executive Director at Token Metrics Ventures.
Token Metrics did a blockchain worldwide tour for a year, just like me, something I have never heard about in Blockchain in the investment side. The difference, however, is that the Token Metrics Team was focusing on early-stage ICOs, while my main priority in 2021 was to find the next Ethereum, and the next paradigm shifts smart contract platform.
After sharing our stories, I tried to connect all the dots. I realized that Token Metrics has mastered their investment formula to investing in great ICO’s. In my case, I mastered the investments formula to invest in the next paradigm shift platforms that can achieve the highest compound network effect like Ethereum and Solana.
I truly believe that your ethos is a mirror of your real-world success!
After hearing the successful true story of Token Metrics first-hand, it is absolutely evident that Token Metrics is a top-notch tool for retail investors that will set you up for greatness in crypto. Why? The lighting speed of the new asset class, cryptocurrencies, shows that it is impossible to be 100% up-to-date with all the data points in the market to make your investments decisions. Likewise, being able to identify all the new great protocols is extremely unachievable. Token Metrics solves this problem with ultimate solution and cutting-edge technology with machine learning and AI. Furthermore, during my UK master’s program in FinTech, I learned via several projects that the ultimate solution for inner data insights and automate investment decisions is by enabling machine learning and AI. Thus, with a glimpse into the future, Token Metrics will set you for financial freedom & you will land on Mars when you planned for the moon.
Lighting fast compares to google Chrome & ultimate privacy
After seeing the community of Ethdenver 2022, and personally trying the Brave browser, I saw how it will be able to have a massive user adoption because of its lighting speed, compared to others such as Google Chrome, due to its data blockers and privacy competitive advantages. Its ultimate feature is that it can be fully synced to your Google Chrome’s compatibles features as it is based on the Chromium web browser, creating a seamless transition. It is worth noting, that with its full design for the crypto world and as an added extra layer of security, it will be a great tool for your browser in web3.
Insights of Ethereum’s Ethos
-Ultimately, I identified with the Gitcoin philosophy and the quadratic funding which is driven by Kevin Owocki and advocated for by Vitalik. Quadratic funding, I think is the next-generation system for funding for non-profits and is proof of conflict interests.
-Personally, Solarpunk was also an atomic attraction as they envision post-scarcity societies, living in harmony with nature, renewable energy & technology innovation.
I am beyond grateful for Ethdenver2022 as it further unified the blockchain world, and for Vitalik Buterin shifting the power of malicious corporations & government to the community with the genesis of the smart contract platform, Ethereum.
Go bigger & go-giver!
The possibilities are only limited by imagination! WAGMI!
I hope I see you at the EthAustin 2022 by SXSW (March 17–18 2022).
Recall, in the crypto world, the more you know, the richer you can get! 100x & beyond…
May the force be with you’ll!
Special shout-out to Winston Robson and Ashley Leal for the thoughtful feedback.
P.S. Metcalfe’s law valuation for Octopus Network is coming soon. It is worth noting that my investment philosophy is focused on value investing, and that is why I am best know (nickname) as the Warren Buffet of Crypto and my name in blockchain space is J100x. Since childhood, I have been learning about Warren Buffett’s innovative investment strategies.
Disclaimers: The investment opinions and the latest insights expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investing, or other advice. Investing in crypto assets comes with a risk of financial loss.