Multicoin Capital is a thesis-driven fund that invests in crypto assets.
Multicoin Capital people
Top experts from the Multicoin Capital network.
Reviews by Multicoin Capital people
Cryptocurrency reviews from the executives, employees and alumni of Multicoin Capital.
In the case of XRP, we believe that the token holds little utility beyond payment of negligible fees and thus is unlikely to maintain and build value in the long-term. While we expect that XRP tokens will continue to see price spikes as Ripple Inc. makes announcements, we don’t believe that the fundamentals of the protocol will build sustained value for XRP.Full review
Litecoin is just a Bitcoin testnet.Full review
Seems pretty reasonable to me that almost all PoW-GPU coins that aren't ETH are prone to being 51% attacked, at least until ETH moves to full PoS, at which point it's likely to become XMR I think (could be even sooner depending on FFG economics).Full review
I don't know that much about NEO, but I'm generally skeptical. I also generally don't care for this author but figured I'd share. NEO holders, beware.Full review
While IOTA was one of the first major projects to build a DAG instead of a blockchain, we find that the approach taken by the IOTA team presents many reasons to be highly concerned. While DAG-based systems may form an important part of the future of the crypto ecosystem, we have reservations about the DAG implementation of IOTA, as listed above.Full review
We believe decentralized prediction markets will reshape global finance markets and democratize finance in many respects. Augur presents the most compelling opportunity in the prediction market space.Full review
The collateralized model (e.g. MKR, and not Tether) is fundamentally hard to argue against.Full review
Quick rant on "discount tokens", eg BNB
TLDR: Discount tokens are *definitely* securitiesFull review
Augur is building one of the “primitives“ of the new financial system. With Augur, you can construct any variety of financial instruments.Full review
0x is emerging as the leading [decentralized exchange] platform within the Ethereum ecosystem. Not only is the core protocol well-designed and fully functional, but 0x has also incentivized a whole ecosystem of third-party relayers whose services will make using 0x even easier than using a centralized exchange.Full review
I've been skeptical of GPU-based decentralized compute networks like Golem, Coronai, Hadron, GPU Coin, and Hypernet for a while. I've spent a lot of cycles on them, and I'm really torn. Of course, when you see the data this clearly, it suggests that "of course you should invest in the decentralized compute protocols" because that rate of growth for AI compute is simply staggering.Full review
Dash is compelling. Stable relative to other cryptos, but not "stablecoin" stable. And I do have some concerns about privatesend.Full review
EOS is far and away the largest blockchain — in terms of usage, market cap, liquidity, and others — and requires the most active and engaged governance and technical infrastructure.Full review
IOTA is a scam.Full review
Tether is a systemic risk in that if it explodes, billions of dollars could effectively disappear and cause exchange insolvencies. An alternative to Tether hugely reduces that risk.Full review
Digix is cool. I expect to see more projects like that in the future for securing real-world assets on-chain.Full review
The Gemini dollar is the best argument against the BTC as a SoV thesis.
Bitcoiners like to point to Venezuela and Turkey as nations primed for hyper-bitcoinization.
The Gemini dollar enables easier hyper-dollarization, which, at least in the short term, is more attractive to many.
Also the Gemini Dollar is great for Ethereum adoption vs Bitcoin adoption.Full review
Well, good thing Dentacoin has no leader. I'd like to see them come after our distributed community of dental-health enthusiasts.Full review
One of EOS‘s greatest strengths is in having 21+ independent, accountable, and well-financed teams like @EOS_Canada & @eosnewyork to help provide user support, develop infrastructure, and market the platform.Full review
Perhaps the most amazing thing about Ethereum is that it has both a strong community and a very aggressive product vision.
That may be the winning combo.Full review
My biggest concern [around EOS] recently has been around arbitration. Specifically, an unelected group called ECAF that issues network-level arbitration decisions.Full review
The Zcash company is actively pushing to make it easier for everyone - users and exchanges - to adopt shielded txs!Full review
Coinbase is supporting USDC.
This is going to be the on-ramp that enables millions of people to interact with Dapps without taking on balance sheet risk.Full review
Dash has a pretty epic roadmap
https://www.dash.org/2017/06/27/roadmap.html …Full review
Ethereum Classic is the worst of both Bitcoin and Ethereum.
Not as secure and immutable as Bitcoin, nor as aggressive as Ethereum in making the platform valuable for development.
I can’t find a single interesting project building on ETC. Not one.Full review
Bancor is objectively worse than all other market makers. If asset already has liquidity, it's not necessary. If asset doesn't have liquidity, then why are they inventing a pity based liquidity provider? Bancor breaks capitalism IMO and is total nonsense.Full review
OmiseGo's penetration is tiny on a global basis, a round error really. If you think on a global scale, their lead is not significant.Full review
Network effects and competitive moats are generally misunderstood. Contrary to popular belief, there are no networks that exhibit n^2 network effects, and in fact many exhibit log(n) network effects, notably fungible asset exchanges. Bitcoin as digital gold will be subject to the perpetually sub-linear log(n) network effect, whereas Bitcoin as digital cash can achieve super-linear network effects as crypto adoption grows from <1% to 50% of the global population. The cryptocurrency that becomes the dominant store-of-value will by definition need to exhibit super-linear network effects as it grows.
Moreover, other types of competitive moats such as brand and broader ecosystem integrations do not exhibit increasing returns to scale, and can be easily overcome by a competitive network with super-linear network effects. We already have ample evidence that this is true.Full review
BNB’s value is driven by more than the cash being returned to investors by Binance. BNB has tremendous utility and is used as:
- Staking token – Users who hold a significant amount of BNB get discounted fees on the exchange according to a set scheduleFull review
- Discount token – users who pay their exchange fees with BNB get a discount
- Payment token – trading fees on the Binance Chain can be paid with BNB
Over the last few years, we’ve seen messenger apps grow in scope a lot, led by WeChat. Much of the growth has been tying payments of all forms into chat. This is natural as much chat —> commerce. Seems highly probable that we’re not that far away from major messengers - WhatsApp, Telegram, etc - building payments natively.
Kin is obviously first high profile example, but everything about Kin is wrong. The messenger that wants true adoption should implement using BTC, ETH, or stable coin directly. Those assets have much higher liquidity to fiats, which would really kickstart “banking theFull review
unbanked” dream of crypto.
Using a novel consensus algorithm called threshold relay, Dfinity and Algorand aim to offer DBP, safety, more scalability than Ethereum within a single shard (though far less than the scalability offered by DPoS), and fast TTF. If threshold relay works in practice as well it has in test environments, we can expect to see Dfinity and Alogrand shard their chains and leverage the fast TTF and low latency to provide for efficient cross-shard communications.Full review
Multicoin developed a thesis around decentralized exchanges in 2H 2017, culminating in a large ZRX position going into the launch of 0x-based exchanges
Unfortunately, 0x-based DEX have not achieved meaningful market share. In our discussions with dozens of market makers, we learned that the biggest challenges are around fees to cancel orders, and lack of deterministic order execution.Full review
The only dimension in which DAI is better than USDC or GUSD is censorship resistance. Anonymity provides censorship resistance.
There will be cheap collateralized loans available with fiat coins too, Maker is not unique there. Eg: one could borrow USDC against ETH using Dharma. Therefore anonymous fiat coins are a pareto improvement to MakerDAO and DAI. Literally better in every single way.Full review
Central Bank Digital Currencies (CBDCs) are closer to reality than the market realizes & will have profound effects.
For example, the Bank of Thailand & Hong Kong Monetary Authority just completed a cross border remittance test and published the results.
CBDCs will hugely weaken the monetary sovereignty of smaller nations whose citizens will more easily access alternative nations' currencies.
As more people realize they don't have to use their own government's fiat money, this will also convert some % of them to Bitcoiners.
I expect developers will create some type of cross chain type functionality which allows "wrapped CBDCs" on other chains.
This increase in the amount of programmable digital currency will allow global competition for retail financial services aka Open Finance.
Due to CBDCs I expect that the networks focused on payments and remittances such as XRP will be seen obsolete for their stated purpose.Full review
Cosmos is a stupidity tax and value destructive to society. 100% unnecessary protocol.
[It's rendered unnecessary by atomic swaps] and also inter-blockchain compatibility is not needed. [It's an] already solved problem with Oracles for interchain and Whisper for ERC-20.
Also, Cosmos isn't necessary for synthetic tokens. The three things it claims to do—IBC, synthetic tokens and trustless swaps—are doable without another token in the middle. . . .
[C]laiming [that] "we're a blockchain of blockchains with our own token in our proprietary system" doesn't push anything forward.
If all of the things it solves can be solved using free open source standards that are emerging, why should it exist? It's like trying to charge for SMTP/HTTP.Full review
Tezos isn't the best at anything.
It's best thing it's got going for it is a foundation with a large balance sheet
But on a technology perspective, it's materially behind in every way that matters.Full review