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Welcome to the weekend! we made it. Barely, I guess, considering how tired everyone seems to be on the phone and on Twitter. But we tend to beat work days like never before, which means we have to lean back and enjoy ourselves for a minute. Yes, today we are talking about crypto. Rejoice!
The race to ensure the future of crypto is expensive
i am impressed The speed at which Coinbase has invested capital Among other companies in the larger blockchain market. It’s a smart move, as the public US company can disburse a comparatively small amount (when placed next to its revenue base) and buy both ownership and information access into the startups it’s about to pop up. Provides pre-alert data. Given that Coinbase is a clear incumbent in the crypto market – and gatekeeper, to some extent, its investment makes sense.
But there’s investment, and there’s Investment, And it appears that the recently announced FTX fund is somewhat more aggressive than Coinbase, despite a much faster synergy of its deals.
FTX Fund Crypto Total Will Be $2 Billion and, per interview, can be distributed just this year, This is a wild pace of investment, perhaps reminiscent of a How quickly a16z put its recent $2.2 billion crypto fund to work,
a few questions:
- Why does the crypto market need so much money when its user base is so small compared to the larger Internet?
- Why are we using so much fiat tender to finance crypto?
These are interlinked questions. They sum up a simple confusion to me about why it is so hard to build useful things in the crypto market. Coinbase and FTX exist toward the edges of the crypto world, shutting money back and forth from the traditional economy and what its future could hold. They’re investing, it’s smart, but the amount they’re willing to invest, as well as traditional venture capitalists lobbying blockchain startups, have got me some confusion – what is it all being spent on? Is?
Two major blockchains have been established, and hardly newer (Ethereum was thought up in 2013 and launched in 2015; Bitcoin came out in the whitepaper 2008, Stablecoins do exist and have many good, stable players; And a bunch of capital has gone into the NFT marketplace and some crypto games. Some of which have even built up modest player bases. But it feels a bit focused when we compare the money flowing into space to what we can see in terms of usable results.
Institutional Investor Report Altogether $32.8 billion was invested in “cryptocurrency and blockchain technology businesses” last year. Perhaps a lot of things built from that money are coming out soon that will blow us away, but now a decade after bitcoin says, “Hello, world,” I still don’t use any blockchain-powered apps or services day in and day out. I do today Unless I’m tinkering with a part of the crypto world for research purposes, of course.
And I spend more time online than I’d like to admit! Perhaps the new FTX fund will bring to market a mass market blockchain product that is not just another vehicle for speculation. Let’s wait and see, I guess.