Connect with us

Uncategorized

A venture studio for DeFi

Published

on

Get venture returns, faster

Andy Singleton

Last fall I pitched my friend Sesha with “DeFi is fantastic. Let’s apply the Flagship model to DeFi.” That model is a “venture studio,” where we do the work to create and spin out a series of protocols.

Venture studios succeed by producing extra unicorns. According to CB Insights, about 1.28% of funded companies go on to become unicorns. Idealab reports a 5% success rate, and Flagship Pioneering reports a 25% success rate.

Flagship Pioneering companies take 6–8 years to reach IPO. One of their most successful is Moderna, which stepped up to save the world with Covid vaccines. They started the company in 2010 to work on RNA therapeutics. Eight years later, it was on track for success when its IPO raised $620M at a $7.5B valuation. Eleven years later, in 2021, Moderna reported its first profit.

DeFi succeeds by increasing velocity. Many DeFi protocols reach scale and liquidity within one or two years after founding. Faster returns mean higher IRR.

A venture studio earns a large share of each startup by founding and leading. This allows venture studio investors to get a great pre-presale price on the resulting tokens.

We are getting terrific ROI at the earliest stages. In our initial cohort of projects, we spent about $25K each on creation and validation. This process can take a long time and involve a lot of high priced talent. But, it’s not expensive. In return, we’ll get (about) an initial 50% share of a project that might have a valuation of several million dollars in a token presale.

More importantly, this process is FUN. We are rebuilding financial services on the blockchain. It’s a compelling mission. We’re able to attract industry experts that want to rebuild their financial service.

A venture studio develops specialized skills and capabilities to give its launches a competitive advantage. We’re building a launch team to rapidly deliver beta implementations, and a recruiting capability to add long-term contributors.

One distinctive capability is our structure for creating and validating products with industry-focused teams.

Another distinctive capability is compliance tactics. Compliance tactics can reduce risk and expand options for US investors.

Token-based projects have a difficult time at the beginning of their life when they need funding, but do not have enough software to offer a system that is “sufficiently decentralized” to comply with US securities law. Many of them ignore this problem. However, it creates a risk of SEC enforcement actions if the project becomes successful.

A studio provides capital and resources to fund a development team until they can sell a token for a “decentralized” system. This ensures that projects are raising money at good valuations, with liquid tokens, rather than with cheaper equity deals or non-compliant, non-US tokens. The savings go to the venture studio owners and investors.

The expanding portfolio of a venture studio gives investors more chances of getting a big win. Early stage investors make most of their money from about 1% of deals that have unicorn payoffs. To get the payoff, an early stage portfolio should have at least 100 investments, and ideally will have 500 investments. A venture studio investment is an easy way to expand a portfolio into a hot category.

Our goal is to launch about 10 products per year, producing at least one $50M exit.

Entrepreneurs take a risk by working on one product at a time. We can give them a chance to swap some of their shares into a portfolio. If we produce at least one big win, the shared portfolio will become very meaningful.

With the support of our colleagues, we can dare to dream. We can break into categories that are beyond the scope of a hackathon team. We can break into categories of DeFi for the real world that have limited competition, and increase our probability that every project can become a big winner.

DeFi grows by spinning out protocols that have independent governance .A company like Amazon can grow by expanding the number of products it controls. It develops markets and platforms by adding products inside one company. That doesn’t work in DeFi. DeFi is open source. The Ethereum Foundation does not own the protocols that use its platform.

A DeFi team that is producing multiple products will naturally create spinouts. A venture studio model is their natural state. Some teams have created billions of dollars of value in the last year by spawning protocols, including Andre Cronje’s Yearn group, Compound, and Terra.

It’s our mission to produce DeFi for the real world, rather than for crypto traders. With the studio model, we can focus immediately on this attractive category.

Maxos builds DeFi for the real world. Join us on Discord to get involved with the products and protocols we are working on. If you are an accredited investor who is interested in the Maxos LLC seed round, please contact me on Discord (“Andy Singleton”), DM on Twitter (@andysingleton) or or LinkedIn.

Source: https://andysingleton.medium.com/a-venture-studio-for-defi-463f80d785d3?source=rss——-8—————–cryptocurrency

Uncategorized

Mapping out Ethereum’s DeFi ecosystem

Published

on

By

September 22, 2021, 3:32AM EDT

• 46 min read

Quick Take

  • Despite potential regulatory concerns surrounding the Decentralized Finance (DeFi) vertical and subsequent stablecoins that power much of its ecosystem, DeFi has been the most popular deal type amongst investors for the majority of 2021
  • The DeFi vertical has received nearly $1.3 billion investment across 275 funding rounds, with Ethereum-based applications receiving a significant percentage of that capital from January to August
  • In total, Ethereum’s DeFi ecosystem has amassed at least 320 startups and protocols across 14 verticals, which The Block has mapped out below
  • This ecosystem map has been UPDATED from here

Join The Block Research for exclusive research like this

Gain access to this research piece and 100s of others, including ecosystem maps, company profiles, and topics spanning DeFi, CBDCs, banking and markets. Together with additional services, we help organizations understand what’s happening in the rapidly developing digital asset ecosystem.

Already a Research Member? Login Here

PlatoAi. Web3 Reimagined. Data Intelligence Amplified.

Click here to access.

Source: https://www.theblockresearch.com/mapping-out-ethereums-defi-ecosystem-2-118188?utm_source=rss&utm_medium=rss

Continue Reading

Uncategorized

Commodity strategist predicts Bitcoin ETF could get the nod in US next month

Published

on

By

Bloomberg Intelligence Commodity Strategist Mike McGlone believes it is only a matter of time before the U.S. Securities and Exchange Commission (SEC) approves the country’s first Bitcoin exchange-traded fund (ETF).

In an interview with Stansberry Investor host Daniela Cambone on Sept. 21, McGlone asserted that Canada is extending a competitive lead over the United States after approving Bitcoin ETFs from 3iQ and Coinshares in April.

He emphasized that capital is flowing from the U.S. to Canada’s institutional crypto products, including from Cathie Wood’s Ark Invest. However, he believes that lawmakers in the United States will not want to miss out for much longer.

When asked about a timeframe on potential U.S. Bitcoin ETF approval, McGlone said it could happen “potentially by the end of October.” He maintained that it was likely to be a futures-backed product first, adding that it would open a “legitimization window for a massive amount of money inflow.”

McGlone also reiterated the latest report from Bloomberg Intelligence that stated Bitcoin prices hitting $100,000 was a possibility this year, and this would be driven by the approval of an ETF.

Crypto YouTuber Lark Davis shares McGlone’s price targets, observing that in previous bull markets in 2013 and 2017, the latter quarters saw huge price rallies.

Related: Canadian Bitcoin ETFs quickly hit $1.3B in AUM while US acceptance lags

The SEC is currently yet to approve a crypto ETF despite the number of applications it has received from prospective issuers continuing to mount.

Earlier this month, multinational financial services firm Fidelity Investments, lobbied the SEC to approve an ETP arguing that Bitcoin markets have already reached maturity under the regulator’s own standards.


PlatoAi. Web3 Reimagined. Data Intelligence Amplified.

Click here to access.

Source: https://cointelegraph.com/news/commodity-strategist-predicts-bitcoin-etf-could-get-the-nod-in-us-next-month

Continue Reading

Uncategorized

TA: Ethereum Topside Bias Vulnerable If It Struggles Below $3K

Published

on

By

PlatoAi. Web3 Reimagined. Data Intelligence Amplified.

Click here to access.

Source: https://www.newsbtc.com/analysis/eth/ethereum-struggles-below-3k/

Ethereum settled below the $3,000 support zone against the US Dollar. ETH price could resume its decline unless there is a clear break above the $3,000 resistance zone.

  • Ethereum started a fresh decline below the $3,100 and $3,000 support levels.
  • The price is now trading below $3,000 and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $3,000 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could resume its decline unless there is a clear break above the $3,000 resistance zone.

Ethereum Price Remains At Risk

Ethereum started another decline from the $3,100 resistance zone. ETH traded below many important support zones near $3,000 and the 100 hourly simple moving average, similar to bitcoin.

The price even broke the $2,800 support level to move further into a bearish zone. A low is formed near $2,651 and the price is now correcting losses. There was a break above the $2,800 and $2,850 resistance levels.

The price recovered above the 23.6% Fib retracement level of the recent drop from the $3,105 swing high to $2,651 low. An immediate resistance on the upside is near the $2,880 level. There is also a major bearish trend line forming with resistance near $3,000 on the hourly chart of ETH/USD.

Ethereum Price

Source: ETHUSD on TradingView.com

The trend line is close to the 50% Fib retracement level of the recent drop from the $3,105 swing high to $2,651 low. A close above the $3,000 resistance could start a decent recovery. The next major resistance might be near the $3,105 level. A clear break and close above the $3,105 level could start a steady increase. The next major resistance sits near $3,135 and the 100 hourly SMA.

More Losses in ETH?

If ethereum fails to correct higher above the $2,880 and $3,000 resistance levels, it could start another decline. An initial support on the downside is near the $2,800 level.

The next major support seems to be forming near the $2,650 level. A downside break below the $2,650 support zone could lead the price towards the $2,550 zone. The next major support is near the $2,500 level, below which ether price might decline towards the $2,420 support zone.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is slowly losing pace in the bullish zone.

Hourly RSIThe RSI for ETH/USD is still below the 50 level.

Major Support Level – $2,650

Major Resistance Level – $3,000

Source: https://www.newsbtc.com/analysis/eth/ethereum-struggles-below-3k/

Continue Reading
Blockchain4 days ago

Over 40 days after Ethereum’s EIP-1559, here’s where it stands

Blockchain4 days ago

Cardano Sees an Influx in Smart Contracts ! But There’s a Twist

Blockchain3 days ago

After Targeting BlockFi, State Regulators Now Set Their Eyes On Celsius

Uncategorized3 days ago

NBA 2K22 Limitless Spot-Up and Chef Badges Explained

Uncategorized3 days ago

What is The Old Gym in NBA 2K22 Next Gen?

Blockchain3 days ago

Matic Price to hit $1.75 in the next leg up! Launch on Bitfinex to be the Catalyst?

Uncategorized3 days ago

Best Dribble Pull-Up in NBA 2K22: Which to Use

Uncategorized4 days ago

NFTs Are the Building Blocks of the Metaverse — Here’s How It’s Being Built

Blockchain4 days ago

EY Taps Polygon Network to Improve Enterprise Clients’ Experience 

Uncategorized4 days ago

Shiba Inu (SHIB) Rises to Range High

Blockchain3 days ago

Flux Pools autoriza o pagamento de ativos paralelos em mais de 300K Flux!

Uncategorized4 days ago

The Head of Diem wants you to trust Facebook, but is he fighting a losing battle?

News4 days ago

XRP Lawsuit: Here’s Why Experts Think Ripple Could Win the Case Against SEC

Blockchain3 days ago

All you need to know about MATIC before investing

Blockchain5 days ago

EY Integrates with Polygon Protocol: Advances NFT Issuance

Blockchain4 days ago

Shiba Inu’s days in the sun may be over; here’s why

Blockchain3 days ago

Smart Contracts Running on Bitcoin? Internet Computer Founder Explains How It’s Possible

Uncategorized1 day ago

PetPals, One Of The First Play-To-Earn NFT Web-Based Games Is Out Now

Uncategorized5 days ago

Solana (SOL) outperformed top 10 cryptos with $50 million in institutional inflows last week

Blockchain4 days ago

EOS: Why there’s a question mark attached to its long-term trajectory

Trending