David Stancel

Investing in Times of War

Decentralized

Censorship-resistant

Permissionless

Pseudoanonymous

Transparent

Predictable

The case for crypto

Decentralized

Censorship-resistant

Permissionless

Private (?)

Transparent

Predictable

Portable

Open Source

Trust-minimizing

Composable

Algorithmic

Programmable

Disintermediating

And Beyond

To Bitcoin

Total Value Locked in DeFi on the Ethereum Blockchain from August 2017 to April 2022

Value Accrual in Crypto

  • artificial shortage
    • buyback and burn (Binance)
  • profit-sharing (securities!)
  • running the platform infrastructure
    • receiving fees (Renprotocol)
  • network effect (Ethereum)
  • decentralized governance (Decred, MakerDAO)
  • ownership rights (NFTs, STOs)
  • PoS with slashing (Cosmos)
  • forced token utility
    • In-app currency (Celsius -- hard to do)

 

Investment Opportunities in Crypto

  • Gambling
     
  • Value Investing
     
  • Speculation
     
  • Lending
     
  • Staking
     
  • Liquidity Porvision
     
  • Airdrops

To Bitcoin

Synthetic Stocks

Risks

  • Smart Contract Risk
    • Buggy code --> loss of $ 
  • Design flaws
    • Within a dapp
    • When interacting with other dapps
    • Unintended Consequences
  • Legal risks
    • Who is held accountable?
    • Accessing Dapps via Interface vs. Raw contract
    • Fitting into existing legal framework vs. rethinking the legacy frameworks

Thank you!

david@fumbi.network