Stay up to date on all things crypto and blockchain

Token Daily is a place to discover trending news and products in crypto and blockchain.

Deep Dive with Ari Paul, CIO of BlockTower Capital.

posted 1 year ago

with or if you'd like to join the discussion.
Jason Yannos
What advice would you give to an aspiring crypto analyst/trader/portfolio manager ?
10
Ari Paul
@Jyannos Hey Jason, this is an open ended question, so I'll offer a little high level advice. First, we're in the 3rd inning of the birth of a new industry. I don't know who came up with the line, but I read it from Peter Thiel: it's easier to become a big fish in a big pond by starting as a big fish in a little pond, or at least as a little fish in a little pond. Crypto is a little pond, which means it's a wonderful opportunity for the ambitious. Go "all-in" in terms of your time and energy. It's a small industry, so try to meet everyone. Connecting with leaders of all types (developers, investors, service providers) is critical to understanding the industry and finding a place in it and then excelling. Figure out where your passion and skillsets fit within this industry. Crypto is quite broad - it needs marketers, fundamental investors, quantitative analysts, developers, investment bankers, hardware developers, etc.
15
Hh
1
Jason Yannos
@AriDavidPaul Awesome, thanks for the insightful answer Ari!
0
John Lombela
@AriDavidPaul very insightful response. Thank you. Looking forward to meet you and some of the other influencial names in the industry.
0
Ben Tossell
What do you look for when evaluating crypto investment opportunities?
5
Ari Paul
@bentossell For long-term investment, I bucket things into two categories. 1. Those use cases that truly need to be decentralized within that category, investments that have a good chance at being somewhat "winner take all" within some niche. For example, we're unlikely to end up with 30 privacy coins. But we have a few that are differentiated. What are those possible differentiators that will create defensible "moats"? For example, LinkedIn and Facebook are both social media monopolies but with differentiated offerings such that they can both thrive. 2. Everything else: there are plenty of fine investments that don't fit category 1, but those need to be underwritten at much lower valuations. For example, most utility tokens are similar to companies in the sense that they may offer value, but probably not $10 billion worth of value (there aren't many $10 billion companies in the world.) A key for looking at these is competitive strategy. It's not enough to find a good team and tech, we have to ask, "why will this team and tech beat all the existing competitors and those competitors that will arise?"
6
Cnoopy
If the real 'Satosi Nakamoto' suddenly back, and doing AMA, what question would you ask?
5
Ari Paul
@Cnoopy__ Love this question. I'd ask Satoshi how the natural economies of scale of PoW mining that have become evident shape Satoshi's thinking on how Bitcoin can and should evolve, and if he* would support major hard forks to change the structure of Bitcoin (even as extreme as a change to the consensus mechanism, to say, proof of stake) under some condition. I'd also ask if Satoshi thinks there's room for competing cryptocurrencies and how they need to differentiate to add value.
5
Ari Paul
@Cnoopy__ @Hh49543290 Not at all suggesting Bitcoin should or could. Just curious if Satoshi would even be open to thinking about it.
2
Ari Paul
@Cnoopy__ @AriDavidPaul I put the asterisk and meant to finish up by saying that we don't know if Satoshi is a he or she or (I think) a team.
1
Hh
@Cnoopy__ @AriDavidPaul what are your thoughts on changing to pos?
0
Jamie Sutton
What skills are most important for non-technicals to develop if they aim to build a career in the crypto/blockchain space?
4
Ari Paul
@JmeStn Really depends on your targeted career. For example, OTC trading desks need back office support and marketing. Crypto funds need investor relations, etc. One key thread is familiarity with the industry as a whole. Get out a meet people. Meet the devs, the fund managers, the service providers, etc.
4
Amit Patel
Why are you allowed to disclose some investments (eg XMR, trustoken) but not others?
Thanks
4
TheTakenUser
When can we hope for parts 3 and 4 of "How To Think About Investing In Cryptocurrency" :)
3
Ari Paul
@TheTakenUser The comical delay was caused partly because, well, I got busy. But also because I'm genuinely stumped. I don't want to put out a part 3 without feeling it will genuinely add value, and I encountered a few questions I couldn't answer. For example, to forecast whether crypto's store of value is mostly "winner take all" or if there's room for tons of competitors, we first need to answer if there are viable consensus mechanisms beyond proof of work. To me, this remains an unanswered question. I'm not suggesting the answer is no, I simply don't know. Part 3 will likely take the form of "if-then", as in, "if the technological and game theory answer is that only PoW is secure, this is how I expect things to play out."
3
Mourad Ben Mahmoud
What's your favorite crypto-tools?
3
git trac
[DELETED]
3
Jamie Sutton
Who are your absolute must-follows on crypto Twitter?
3
Cnoopy
Do you think technical analysis works on crypto?
3
Ari Paul
@Cnoopy__ Very much so. On very short time intervals, technical analysis becomes self-fulfilling and it's a zero sum game of short-term traders gaming one another and trying to front-run "whales." On longer time frames, technical analysis reflects basic psychology. I suggest reading introductions to behavioral finance. All of the biases, such as "anchoring" result in technical analysis trades.
2
Ilya Vorobiev
Which DApp platform is the main Ethereum challenger in your opinion and why? Is it a "winner takes it all" market or there might be several/many major platforms at the same time? Who have better chances to achieve mass adoption - more cenralized platforms (e.g. EOS with DPoS) or less centralized (e.g. Ethereum)?
3
Hh
What are you currently buying?
3
Ben Tossell
How did you get into crypto?
2
Ari Paul
@bentossell 1. Post 2008-crisis, all the world's banks were printing massive amounts of money. I started thinking I'd want an asset that couldn't be depreciated into worthlessness. 2. The birth of a new asset class is an amazing opportunity for intellectual exploration as an investor. 3. I had relatives that had to flee Nazi Germany. I understand that we can't take freedom for granted, and the ability to escape an oppressive regime with your wealth via a password in your head is a wonderful defensive weapon against tyranny.
4
Hh
Do you think banks fear cryptocurrency?
2
Ari Paul
@Hh49543290 Definitely. Even for the most dismissive among them - it's something they're not profiting from, they don't understand well, and that is making them look bad. Their clients are asking their wealth advisors why they told them not to buy the most profitable investment of the decade.
1
Kevin
What do you think is the best way to denominate a fund (USD, BTC, ETH, other)? And why?
2
TheTakenUser
Can you run us through the decision making process on any recent ICO investment of BlockTower (I would love to hear about PolySwarm, TrustToken or Lalaworld or any other that does not come to mind)
2
Ruben
What are your thoughts on utility tokens vs asset/equity tokens?
2
Soona
Hey Ari, you recently mentioned you've been living out of hotels for the last 7 months and it's removed your desire to shop for 'stupid stuff' - have you decided where you'd like to reallocate that capital?
2
Ari Paul
@soonaorlater Mostly in crypto (both directly as an investor, and in investing in building out BlockTower). I'm also a believer in effective altruism and just like how investment compounds capital, so too does investing in philanthropy compound social good, so there's no reason to wait to give.
3
alvaricoque
Hi Ari, what tips would you give to a non-accredited investor that would best enable them to have a fighting chance at discovering and investing early in promising opportunities that have historically only been made available to accredited investors (e.g. Grayscale funds, Telegram ICO, etc.)?
2
Calvin Chu
@albarvaro Check out Republic.co/crypto! Happy to answer any questions
2
Ari Paul
Hello everyone! Thanks to Token Daily for having me!
2
Ari Paul
Thanks everyone! After an hour, my fingers are bleeding.
2
Soona
@AriDavidPaul haha - thank you for your time and thoughtful answers, Ari!
1
Calvin Chu
UChicago student here - how long(in terms of milestones, not necessarily time), if ever, will it take more institutional investors like a university endowment fund to start investing in crypto
1
Ari Paul
@calchulus The major obstacle is custody. My best guess is that we'll have the start of decent third party custody solutions for a broad variety of crypto assets in 6 months, and then it will take another 12 months for those to be well tested and trusted and hopefully insured. At that point, institutions will feel far more comfortable investing.
2
Calvin Chu
@calchulus @AriDavidPaul Gotcha - looks like Coinbase is rolling out Custody soon, too
1
Mourad Ben Mahmoud
What crypto-security measures you can't do without?
1
Ari Paul
@mourad1bm Hardware wallets.
1
Hh
How do you envision crypto and the blockchain will change our world?
1
Ari Paul
@Hh49543290 cryptography generall, and cryptocurrency specifically are "defensive tools." All tech can be used both offensively and defensively, but some is naturally defensive. In a military comparison, a carrier fleet is offensive since only the richest governments can afford them. In contrast, a sniper rifle is defensive, since it can be used by a much weaker military to threaten a larger one. Cryptography and cryptocurrency are incredible defensive weapons that level the playing field. One effect I think this is likely to have is to reduce the size of governments generally in the long-term.
1
Jamie Sutton
Patrick OShaughnessy recently complimented you on the progress you've made in your career over the past 9 months. What were the primary drivers of that progress?
1
Ari Paul
@JmeStn A lot of luck at being in the right place at the right time and having a fairly unusual skillset for the industry at the moment. I have a mix of trading, portfolio management, and economics, and just enough understanding of cryptocurrency to combine those 4 aspects coherently. Fairly soon, that combination will be very common, but a year ago, it was a rarity. Also...I will pat myself on the back for recognizing that this industry was about to go parabolic in all regards and working appropriately hard. It's been a lot of 17 hour days, learning everything I could and connecting with everyone I can.
3
Cnoopy
If I don't want to miss the next thing investment like 'Blockchain' in 10 years, what should I do?
1
Cnoopy
Could you please write a book asap?
1
Cnoopy
How do you evaluate a new coin for investment? (Thanks for being here! :)
1
git trac
Apart from Proof of Stake, do you think there is a better way to decide what should go into the modification of protocols ( and the like) than voting whose weights are proportional to the size of coins ? Thank you.
1
Dick Olsson
Could you explain the BTC call option with $50,000 strike price that you bought, and the hedging strategy behind that?

What other types of options strategies do you find yourself applying in crypto? Married puts, strangles, straddles etc?
1
Ari Paul
@dickolsson There's currently very, very little liquidity in crypto options. But...that will change. The BTC call option was a "hedge" against one specific scenario - where Bitcoin rallies parabolically. As an active trader who's focused on risk management, it'd be very hard for me to not substantially underperform in that scenario, so the call option partially hedges that one scenario. Over time, there may be other valuable uses for BTC options in a portfolio.
0
TheTakenUser
Took your twitter statement "I'm going to want exact details on the structure of the capital raise and token issuance." - could you give an example of a well structured one:
- how do you evaluate how much money they actually need to build the project since a lot lot of teams are asking for way more money than they actually need
- what is a fair initial distribution (quite a few proejcts selling under 30% of all tokens)
- what is a reasonable pre-sale discount and is it a function of the time between pre-sale and main event (isn't anything over 100% absurd)
It would be great if you can elaborate on under what circumstances would any of the above be ok
1
Ari Paul
@TheTakenUser I'm ambivalent on many of these questions. For example, yes, projects raise way more money than they need. But if they artificially limit the size of their sale, that produces a benefit to "access." If a project is 10x oversubscribed, whoever gets in will make lots of money selling to the later buyers. So, you can argue that it's more fair to have a totally open uncapped raise. As for discounts - this would match the stage of development. It makes total sense for a Seed round to be 1/3 the series A, which is 1/2 the series B, etc, if those are each raised after major milestones are hit. Discounts that are large and separated by short periods of time and little changes in development are indefensible.
0
TheTakenUser
Last one, and most interesting in my view:
Brian Koralewski published an interesting piece (link in the reply) where he argues that Network Transaction Value ratio pertains to the economic value of a network but is grossly overestimating the value to the token holders (the value that can reasonably be captured). Can you share your thoughts on MV=PQ and are there other adequate emerging valuation models
1
TheTakenUser
Can't post links for some reason. The article is on Medium, published by Brian Koralewski
0
Ari Paul
@TheTakenUser Couldn't find his piece where he addresses that. MV=PQ is a great starting point, but only a starting point. Competitive strategy matters - what will prevent new entrants from forking or launching competing chains with similar or slightly better value propositions? What is the "moat" for a particular token or network?
0
KMAN
Given the recent correlation between all cryptos, as a purely crypto hedge fund how do you justify your management fee(if you have one)? This question is based off the thought that you cannot go short, and basically how do you get 'alpha' in the crypto market?
1
Ari Paul
@kascap710 Correlations are very high day to day, but very low over 6 months. For example, it's easy to find major crypto assets that are up 2x and others that are up 20x over the last 6 months. If you invested in mostly the latter, you added alpha. Additionally, the hypervolatility means there's lots of room to trade in and out. For example, if you sold BTC at $15k and bought it back at $8k you added lots of alpha.
3
sourcex
What are you views on big investor getting huge discounts for ICOs and ICOs not mentioning this sometimes?
1
Ari Paul
@sourcex44 I support transparency in all regards.
0
Chuck Taylor
What are your expectations for Securities Tokens and what are your 6, 12 and 24 month projections for Polymath?
1
Bux
If Ethereum moves from proof of work to proof of stake they wont need GPU for mining. Which chips will they need? How would it change ethereum scaliility
1
Cnoopy
What important truth do very few people agree with you on?
1
Florian Weber
Which 3 books would you recommend to better understand crypto? I'm assuming they would be about the different relevant fields and not crypto-specific, right?
1
hodlalpha
Following you religiously on Twitter. Love the way you present agruments. Just wanted to say thanks for sharing your thoughts!👍
1
Ari Paul
1
Zack Voell
You wrote about The Coinbase Effect after Coinbase added LTC (https://medium.com/@AriDavidPaul/the-coinbase-effect-2ace0b86b7d3).

Can you speak more to this effect in light of adding Bitcash, Brian's promise to add more coins in 2018, and if / when other exchanges (centralized or decentralized) can mitigate it?
1
Ari Paul
@zackvoell Part of this effect is the genuine value-add of liquidity. A more liquid asset is fundamentally more valuable. Additionally, Coinbase is easier to use and safer to use than plenty of other exchanges, and these differences should be reflected in price to some degree. The extreme size of the "Coinbase effect" should diminish over time (and I think we see that happening somewhat) due to people like myself "arbitraging" it by anticipating major exchange additions, as well as by having more of a spectrum. Instead of it being "Coinbase or nothing", it's gradually becoming a long list of valuable exchange additions, which mutes the effect.
1
Soona
Best thing you've read lately (can be a book, article, or Neeraj tweet)
1
Ari Paul
@soonaorlater Just finished Margaret Atwood's Handmaid's Tale. It was phenomenal.
1
prasantc
How do you view the various solutions that enable better scaling in the public blockchain space e.g. Casper, Algorand, Hashgraph etc? Are they just interesting from a tech perspective or do you see any utility in holding their tokens from an investment angle?
1
Hassan Ahmed
How do you differentiate between a great project and a great investment? Specifically, what factors do you look for to determine if value will accrue to the token-holder? Thanks for doing what you do!
1
Ari Paul
@Hassan_NY For utility tokens - I don't know. We don't have a single successful data point. There's a rough consensus that there needs to be a clear mechanism by which demand for the network will translate into demand for the token, something like staking, vesting, or burning. But...if these are too onerous, the network may be forked. A great project is tackling a tough an important technological or game theory problem. A great investment solves a real problem for people with far greater value than the current implied value of the crypto assets, has a team that can execute on that vision, and has some "moat" that will prevent competition from other projects.
2
Patrick
I know that you are a big privacy coin long term believer. When you said that 2% of the market is undervalued by trillions was that the sector you were speaking of? Are there any other privacy coins besides Monero that you believe in long term? Are there any other coins that you think are fundamentally undervalued? Thank you for all of your insight and forward thinking!
1
Hh
This was a waste of time
1
Block Muncher
The ICO market is disappearing. Should AI requirements in US be loosened?
1
Ari Paul
@BlockMuncher I think it will be re-born as registered security offerings towards the end of 2018.
3
Block Muncher
@BlockMuncher @AriDavidPaul But what about network effects? Communities with aligned interests have a lot to do with project success. People work harder and get involved when they own a piece. The former model seems to prevent middle class people from participating and growing in the investment space. Do you view that this is macroeconomically bad for the US, or not? If not, I am genuinely curious why you think it is good to only allow millionaires into speculative investing?
1
Martin Skakala
Hi Ari, how do you think about what is your fund benchmark (e.g. stocks - > S&P, etc.)?
1
russmonk
Late to the party, but in case your fingers need a little more blood:

BlockTower differentiates itself from other crypto-hedge funds by taking a much more active trading stance. You have also stated that one of the most critical things to achieve as a fund is simply don't get wiped out (security, market crashes, etc).

Given those two factors, I think it would be interesting to hear how as a trader you handled the recent crash of BTC down to 7k.

* What major moves did you make and with what logic?
* In hindsight, do you consider those moves relatively successful?
* Any regrets or lessons learned?

Love the way you share so much knowledge with the community and market. Thank you.
1
Mourad Ben Mahmoud
Are there any differences between crypto and non-crypto founders?
0
Paul Holze
What makes you most excited about the foundation and future TrustToken is setting out to create?
0
divraj
how do you currently decide when to exit longer term positions ? also how do you execute to minimize risk , averaging out etc any specifics appreciated ?
0
divraj
what do you think of community incentivization & network effects through wide holding of tokens VS funds / founders holding a big % ? what do you think is the right balance for consumer facing projects & developer targeted ones ?
0
Esteban Vargas
Although Satoshi created $BTC, is it more appropriate to have a new dominant coin that has an actual known float? Since we don't know if Satoshi's account can transact the captured supply.
0
Ari Paul
@snava94 Most people estimate satoshi's stash at ~1 million coins. This is a fairly small percentage of the total. I don't view it as critical.
1
Akmal Akram
- What metrics/ratios would you recommend in order to measure capital inflows and outflows in the crypto space (particularly BTC)?


I'm currently using the NVT signal for BTC to identify tops and bottom which I'm scared will suffer from "tragedy of the commons" phenomenon
- http://woobull.com/nvt-signal-a-new-trading-indicator-to-pick-tops-and-bottoms/


Also,
1. Does BlockTower Capital manage investment from retail investors?
2. The min. amount to qualify for investment? (I'm guessing $1 Million, atleast, like Multicoin capital)

muchas gracias
0
Sito
Internet protocols were open source and free, but the trend in crypto is allegedly the opposite, where for the first time you can invest in a protocol level? which is in your opinion going to be the dominant protocol? and what projects, aside from stablecoins, excites you the most?
0
Ari Paul
@digiassetfuture One of the few things I'm confident in, is that most crypto value will accrue to one or several "store of value" coins. Bitcoin is an obvious frontrunner to win that, but any coin with a reasonable chance at winning that mantle is probably undervalued today.
1
Jamie Sutton
In your view, what does the path of beginner to advanced look like in terms of developing a deep understanding of cryptocurrenices and blockchain?

I find there are an abundance of resources which attempt to solve the basics but little material targeted towards those who want to progress further. My favorite intermediate/advanced resource is the "Bitcoin and Cryptocurrency Technologies" MOOC by Princeton.
0
Ari Paul
@JmeStn We're all beginners today. Really. Crypto is at the intersection of so many disciplines, there are no experts in all of them. Only advice I can give is to learn as much as you can about all of them.
0
Jed
Given the upcoming ETH Casper hardfork, what are your thoughts on PoS vs. PoW debate? Which method will win out over time in your opinion and why?
0
Ari Paul
@jedjkim This is an unanswered question for me. And I'm not the guy who can answer it (that would be someone brilliant at both the game theory and technology, and those people seem to disagree with one another currently).
0
Cnoopy
What question in your mind you can't solve these days?
0
Ari Paul
@Cnoopy__ ...most of them. I'm very curious which consensus mechanisms will end up being workable (PoW, PoS, proof of space/time, etc), whether blockchain is the ultimate cryptocurrency architecture, and whether there's a better governance approach than "governance by exit" that Bitcoin has.
3
Cnoopy
@Cnoopy__ @AriDavidPaul Thank you so much for your answers!
0
git trac
How the state backed digital currency will affect the ecosystem of cryptocurrency? In what way and the possible prospect of it is ? Thank you.
0
git trac
In block chain technology (hashgraph included), what do you think would be an interesting field for major applications? major is defined as used and loved by many. ( other than cryptocurrencies themselves.) Thank you!
0
Cnoopy
Most of crypto investors are non-developer, but crypto is 100% software. How can we judge technical aspect in a crypto project like it's well coded, developers are talent?
0
Amit Patel
Hi Ari, do you think ICOs are in a bubble?
0
Ari Paul
@amitp_27 Definitely.
2
Oliver Bruce
Can you elaborate on your thoughts regarding the impact that this will have to status quo power structures.
0
Ari Paul
@oliverbruce I expect it to ultimately be very, very disruptive, but it's not just crypto in isolation. As more work becomes virtual and as more of our lives become virtual, we will increasingly be earning and spending in a non-localized fashion. For example, a facebook programmer might live in Siberia and spend her money on VR entertainment. That means that an increasing amount of economic activity can happen on blockchains, and potentially anonymously...which means, that things like anonymous transactions may seriously hamper government's tax revenues and enable people to much more easily "shop" for places they want to live and the governments they want to live under.
0
git trac
When BTC reaches 200K (assuming it will), do you think there will be a reckoning from the public to assess its validity because Satoish would be 200billions worth. Just assume it's fine for the public to have 100K. If it's not 200K, will it ever be a number that the market starts to wonder. For example, 1 million? (Satoish has 1 trillions then...) Thank you.
0
Mark Bardi
Which project/coin do you think has the best chance of capturing the upside from tokenizing traditional securities? Why?
0
Zach Gollwitzer
With the lightning network (and similar 2nd layer solutions) popping up, I’m interested to hear if you think a cryptocurrency like Bitcoin can act as both a store of value and medium of exchange simultaneously? Sure, the lightning network allows for instant, no-fee txs, but who in their right mind is going to spend an inflationary currency like Bitcoin? Do you ever see Bitcoin coming into enough of an equilibrium to justify widespread use of lightning? If so, when?
0
Ari Paul
@z_gollwitzer13 Blockchains are horrible, horrible payment channels. There may be fundamental technological changes that facilitate level 1 scaling sufficiently, but it's at least plausible that the optimum solution is layer 1 as settlement, and layer 2 as everything else. I see nothing lost from this. I don't need a $1 billion insurance policy for my $20k car, and similarly people don't need ultimate security and decentralization for coffee. Whether it's LN or something else, I expect layer 2 scaling to provide "best of both worlds." There may be a variety of layer 2 options that cover the spectrum of fast/cheap decentralized/secure
1
chainworks

0
Zach Gollwitzer
@z_gollwitzer13 @AriDavidPaul @z_gollwitzer13 @AriDavidPaul Even if lightning provides a possible solution, you still need to use Bitcoin to open a channel in the first place, and that is where I am stumped. If Bitcoin is inflationary by nature, what incentive is there to spend Bitcoin to open a payment channel? I guess my real question is -- do you think there will ever be a time where someone is incentivized to use Bitcoin rather than hodl?
0
Tarakaram Myneni
What are your thoughts on Monero Fork? Will it compromise the security of the Monero network?
0
Florian Weber
[DELETED]
0
Gary Coover
For those on the business (non-technical side), what do you see as the key business roles to be played in emerging blockchain/crypto startups?
0
Martijn
* Best guess at todays bitcoins expected value? , 5 years timeframe. best guess at P(>100K), P(<1K)
* What % of top 100 coins is trading under fundamental value?
* What needs to happen so that volatility can drop to the point where btc can become a good store of value?
* idea: ICO buyers should do what they can to delay LN/atomic swaps, as difficulty of trading incentivizes people to HODL tokens. Once instantaneous btc-token trading is possible most utility token value will just go to btc.Once instantaneous fiat-BTC-token trading possible utility token value might go to USD. thoughts?
Any btc critic took you up on the offer to make bets?
*Any insights/points that many crypto insiders miss?
0
Anson Chuah
I saw BlockTower is involved with TrustToken and TrueUSD - at maturity / equilibrium, does the ecosystem need/can the ecosystem support multiple stablecoins? Diving deeper, what would be your best guess on the distribution of the stablecoin market (power-law, sole winner-take-all, etc.)?
0
Sterling
You come from a business school. What can business schools like mine do to foster blockchain innovation and create meaningful bridges with the private sector? Thoughts on favorite academic blockchain initiatives?
0
G M
Question regarding Ethereum - and other cryptos such as Cardano, and NEO. Linked currencies (e.g., Ether, ADA, Lumens) allow people to buy computing resources on these networks. If these platforms sell decentralized computing power - a service one could purchase as easily from Ethereum as one could from Cardano (just as one can easily select between AWS and Azure), why should we expect the cost of this computing power to rise over time? DApp developers will have an array of choices on where to run their applications and choose the cheapest. There should be perfect price competition among decentralized computing networks to offer computing resources at the lowest price. Are there any network effects that would allow Ethereum, for example, to charge a premium and be worth more the larger its network gets?
0
Ari Paul
@gbm22 I don't think these services really offer computing power. It's hard to think of a use case where you really need meaningful decentralized computing power. Rather, I think they offer just enough computing power to accomplish certain simple dApps, where the value proposition is really the decentralization. Most computation can be moved off-chain and then hashed or settled to the chain.
1
David Hannon
1) What is your best signal for investing in a crypto token/company?
2) Could you envision a world where all businesses are tokenized i.e liquid investments for all consumers - essentially making all companies publicly traded, even small businesses?
0
Steven Zheng
Can you explain the value that Crypto Hedge Funds/VCs bring to decentralized projects that constitutes them receiving large discounts on tokens?
0
Alex Hardy
What are some underrated sources (higher signal / noise ratio than most people realize)?

What are some overrated sources (energy required to parse signal from noise is too high)?
0
Alex Hardy
What lesson do you wish you learned sooner as you fell down the crypto rabbit hole?
0
Ari Paul
@CantHardyWait Love this question, don't have a clear answer. Probably differs by person. In my case - I was weirdly slow to dive into the foundational white papers. Can't beat reading Satoshi, Ethereum, LN, etc. And read them repeatedly.
0
Alex Hardy
When will we have enough data / track record / sample size to reliably say *anything* about this asset class?
0
Alex Hardy
Do hedge funds benchmark themselves against BTC? An index of the top 10 cryptocurrencies? Regardless, what if they can't justify their fees vs. the benchmark?
0
Ari Paul
@CantHardyWait I joke that we'll be benchmarked against whatever wins with hindsight bias. 6 months ago, investors mostly benchmarked funds against BTC. With BTC falling to 35% of the total network value, this is less obvious. The extreme volatility of the space means that there's room to add value via trading in and out (e.g. selling BTC at $19k and buying it back at $6k, for the psychics).
1
Chenxi Cai
The ecosystems in Asian and in the U.S. appear to be very disconnected. What do you think is the implications will be for the future blockchain space?
0
Chuck Taylor
What are your predictions for how big the Utility token market can grow to and what would you say the Securities Token market can grow to?
0
Chuck Taylor
What are your expectations for Securities Tokens and what are your 6, 12 and 24 month projections for Polymath?
0
Chuck Taylor
Is this done? Are we not getting our questions answered?
0
Ari Paul
@pennymoney4life Sorry Chuck! Typed as fast as I could for an hour. For the many of the unanswered questions, I simply don't know or don't have anything intelligent to offer. But I'll try to answer one of yours: I think security tokens will be very big toward the end of the year. The biggest players seem likely to be Templum, Harbor, and Polymath, no specific opinions on them. As for the the potential size of the market - I think it will take time, but eventually $20+ trillion, since tokenization is the next step after equitization.
2
Chuck Taylor
@pennymoney4life @AriDavidPaul Thank you Ari! I thought I may have showed up late to the party. Thanks for the answer. I will try to slip one more in. Are Securities Tokens something that BlockTower Capital will invest in?
0
Dann Bruno
@aridavidpaul Telegram’s Form D listed two issuers: Telegram Group, Inc and TON Issuer, Inc (both based in Virgin Islands)— thoughts? Potential reasons?...
0
X