Polychain Capital

“I got an angel check into Rippling. I got a first dollar check into Solana, four cents a token. I got a seed check into Clay. I got a seed check into Cherry, a seed check into Newfront, a bunch of crypto companies. I got into the management company round of a …”

“So instead of doing a traditional venture drawdown structure, I structured it as an evergreen, more like, quote, hedge fund. Again, we're long only venture style approach, so not exactly hedging, but I designed the whole fund to be oriented around this type of…”

“I think there is space for a bunch of different layer one chains. I don't mean hundreds, but I do mean a half a dozen to a dozen.”

“I think that this is an economic and technological renaissance dressed up as a get rich quick scheme.”

“So Polychain is an investment fund that invests exclusively in cryptocurrency protocols. We do not invest in the equity of private or public companies at all.”

“When we wanted to do a deal with Maker and purchase some of these tokens, there was no legal entity. Behind them. It's a pure open source project, and there was no bank account they had, so there was no way we could send them money. So we actually had to send …”

“It's too early still, in my opinion, for really viral end-user app coins or app tokens. So I think that's a lot of what we're thinking about is, is what technologies will enable that, and that's what we want to invest in right now.”

“So for example, we invest in Polychain and Metastable.”

“Having founded the firm less than two years ago with Four million under management in their initial fund. Polychain now has over two hundred million under management, with backing from the likes of Sequoia, Founders Fund, Andreessen Horowitz, and USV, just to …”

“Polychain is an investment manager, and we manage a fund that invests exclusively in blockchain-based assets. Another word for this is, you know, cryptocurrencies. So we don't invest in the equity of startups. We don't invest in public equities. We hold no sto…”

“So while we do have the ability to rebalance the portfolio and sell down a position while staying ultimately long on the technology, it mostly is our strategy to hold these things forever. So until our thesis changes about something, it's our intention to real…”

“Actually, I know for a fact we are not big enough, despite the fact that I think we're likely the most prominent fund in this area, we are not big enough to significantly move these markets.”

“Well, I actually don't really view other crypto funds as competitors. The reason being that this is not a zero-sum game like much of Wall Street feels like it is. If you're a derivatives trader on Wall Street, if you win, somebody else loses directly. In this …”

“So internally, we do have a benevolent dictator, which is me. I do obviously seek help from our research team extensively, as well as other partners at the firm. I, in general, though, I have kind of full veto rights over any investment.”

“I don't think people should evaluate white papers unless they consider themselves subject matter experts. This is very different from understanding a business, and if you don't understand, like, consensus mechanisms, the underlying cryptography used here, and …”

“So I think that a good rule of thumb, though, is that these companies must have network effects, period. If your business is not based on building network effects, then it doesn't make sense for you to create a token. I think this rule is the one I see broken …”

“The second thing is that if you are launching a token and you're a private company, you should be ready to stop extracting any revenue from your network. So however you were extracting revenue from the network, whether this was advertising or paid subscription…”

“Do you have a personal relationship with Metastable and Polychain, which are the two best hedge funds in this space, in my opinion?”