Posts from 2019

Custody, Trading, Staking

In our talk at Consensus last week, we talked about security in crypto land.

There are a few highly trusted custody services in crypto, including the popular consumer and institutional custody services offered by our portfolio company Coinbase.

These companies have invested tens of millions, sometimes more, in building highly secure storage systems to keep their customer’s crypto assets secure.

There are also exchanges all over the world that people can use to trade crypto assets. While they may be great places to trade, they are often not great places to custody your assets.

And then there is “staking” which is a term I am using for all sorts of validation services that crypto holders are increasingly doing to secure networks that use proof of stake and other approaches to consensus. There are and will be more staking services that crypto holders can use to participate in these services and get paid for doing that.

Again, these staking services many not be great places to custody your assets.

What is emerging are different services that specialize in different parts of the crypto economy.

There will be best of breed offerings in each sector and there will be a few, like Coinbase, that will offer leading services across all of these sectors.

The nice thing about crypto is it is programmable money. It should be possible, and I think it will be possible, to use one service for custody, another for trading, and a third for staking.

But it has to start with custody. If you own crypto assets, you need to secure them. And that is often not at the place you trade them.

Cheeze Wizards

Our portfolio company Dapper Labs, the maker of the popular crypto-collectible game CryptoKitties, is back with their second game, called Cheeze Wizards, also built on the Ethereum blockchain.

Cheeze Wizards is in “pre-sale” mode right now. You can “summon” your wizard in anticipation of the game which will be played this summer.

I summoned a wizard this morning from the fire wizards region. I spent a bit more than half an ETH on it and I am ready to rumble.

Dapper built this game for crypto enthusiasts who will be drawn by the large prize pool (322.6 ETH right now and growing) and that is why some of the most powerful wizards (like mine) are quite expensive. That said, you can summon a “neutral” wizard for 0.07 ETH right now which is less than $20. The focus on a smaller number of higher value players fits with where Ethereum is right now in its scaling efforts.

The best way to play Cheeze Wizards is to add the Dapper wallet to your browser. You can do that here. Then send some ETH to it from your Coinbase account (or any other place you hold crypto). Then go to Cheeze Wizards, you will log in with your Dapper wallet, and you are ready to summon your wizard.

The folks at Dapper wrote a great blog post explaining why they made Cheeze Wizards, how it works, and what they hope will happen with it. That post also reveals a lot about where Dapper is heading with CryptoKitties, Cheeze Wizards, and all of the other games they have under development right now.

Video Of The Week: Consensus 2019

This past Wednesday, I appeared on stage at Consensus 2019 with Paul Vigna of the Wall Street Journal and Brian Armstrong, CEO of our portfolio company Coinbase.

The topic we were supposed to discuss was why crypto has been so full of bubbles and crashes. We did talk about that but we also talked about a lot more. The discussion is about a half hour.

Public Speaking

I don’t do as much public speaking as I used to. Fortunately my colleagues at USV have picked up the slack and we are still out there telling the world what we believe in and why. I think that is critical to building the brand of an investment business.

Because it is Blockchain Week in NYC, I have done a number of public speaking events this week and have two more today. I also did something up at Columbia University last week for a friend and do a fair number of public appearances for the K12 CS Education work I do.

All of that has had me on a stage a lot in the last week and reminded me that there is an art to public speaking. I have also witnessed a lot of people doing it poorly this past week.

I have three main rules that I try to live by:

1/ Be brief. It is possible to make a point in less than a minute. But many take five or ten minutes to do it. In a world where people take their phones out the minute they are bored, you simply can’t take a long time to make a point.

2/ Be bold. Stake out positions that will stimulate debate and get people talking. I am not suggesting that you should take a position you don’t believe in. But I do think it is important to go out on a limb from time to time.

3/ Have fun. Show your personality. Smile. Laugh. Enjoy it. The audience will pick up on that and it will make it more fun for everyone.

I have also taken to doing a lot of interviewing lately. When I get asked to make an appearance, I often ask if I can do the interview instead of being interviewed. I usually turn those into public conversations and that is a lot of fun and, I think, works for the audience too.

I am interviewing Olaf Carlson-Wee, the founder of the Polychain token fund, today at The Token Summit. I plan to have fun and will work to keep it snappy and provocative.

Crypto Spring?

On Monday, I wrote:

With the crypto winter seemingly coming to an end and spring on the horizon,

So why do I think winter is behind us and spring is on the horizon?

Well you can see in the chart of the entire crypto market that there has been a meaningful move off of the bottom in the last five months.

The entire crypto market hit the low point in mid December at roughly $100bn and has rallied over the winter and spring to almost $250bn. While there is no guarantee that we won’t go back and test those lows, I do think we hit rock bottom in December.

It is also worth noting that the daily trading volumes are now higher (almost double) than they were at the height of the crypto bubble in January 2018. Investors are back in the market and pushing it higher.

And this is not just about Bitcoin. Here is the total market minus Bitcoin:

It is a very similar chart with very similar volume activity.

The most exciting thing to me is what you don’t see in these charts and that is the fact that many projects have been quietly building out their systems over the last 18 months and we will start to see new public blockchains and protocols go live over the next 6-12 months that will show the power of new ideas and new technologies that are coming to market.

I love spring.

Exploring An Investment Thesis

I remember back in the 2005/2006/2007 time frame when blogging and social media was coming of age, I used this blog as a petri dish to explore ideas like influencer marketing, social advertising, and virality that have become critical parts of a growth marketer’s playbook a decade later.

That “hacking around in social media” taught me so much that I could not have learned reading or talking to people. Of course, I did those things too, but getting my hands dirty with the technology and ideas helped me understand them and see the power of them and invest in them before others did.

So it is always great to see when other investors are doing the same thing.

Dani, one of our awesome analysts at USV, has been exploring the area of “free learning.” She has been writing about it. And she has been hacking around in it too.

Yesterday she launched a free learning game you play via text message.

She built it on “twilio/node/express/firebase.” I know she also built a version on the Kin Testnet to see how cryptocurrency rewards could impact how students stick with a game like this.

I just played a couple rounds of Numberline on my phone and thankfully I got the first two correct. I am quitting while I am ahead. If there was some Kin involved though…….

Blockchain Week NYC

It is that time of year again, when the entire crypto sector comes to NYC. It is called Blockchain Week NYC and there are a dozen or more industry events like the Coin Center Annual Dinner, The Third Annual Token Summit, Consensus, Women On The Block, and many more.

There will also be breakfasts, dinners, company sponsored events, etc, etc.

I will be at many of these events, speaking at a few of them, and am excited to see the crypto sector live and in person this week in NYC.

With the crypto winter seemingly coming to an end and spring on the horizon, it is a great time to take stock of the sector and get excited about it again. Except that I never lost my excitement. Sometimes you just need to hibernate for a year and last year was a good one to do that.

Finally, I am so pleased that NYC was able to secure the spot where the crypto industry comes together once a year. It makes sense that crypto would be big here, given the financial services talent, engineering talent, and commercial sensibility that has always been resident in this town.

If only our regulators in NYS would be as excited about crypto as I am and everyone who is coming to NYC this week is.

Repost: The Maternal Instinct

I wrote this three years ago, on Mothers Day, and I remembered it this morning. So I am reposting it. Happy Mothers Day to all of the mothers out there.


It’s Mothers Day, a time to celebrate motherhood and moms. I woke up thinking about the maternal instinct and it’s effect on business.

I was talking to a friend last night about the challenges of working on troubled or failed investments. We were debating whether it is even worth the time to try and save a troubled investment versus moving on and focusing on a new one. This is the endless debate in venture capital. It can be applied to managing people as well. Should you work to develop a talented employee who is struggling or just move on and find someone new for the role?

As we were debating the point on whether to fight for a troubled investment or just move on, the Gotham Gal walked by. And I turned to my friend and said “she never gives up on any of her investments and she has 10x the number that I do.” I’ve cautioned her many times that she can’t fix every company, every CEO, every business plan. But she just keeps trying. It’s why I love her so much.

There is something about the maternal instinct. It’s a powerful thing. It is about protecting and caring for someone or something. It is innate in women and they do bring it with them into the world of business. This is one of many reasons why gender diversity in a team is important. Men and women bring different perspectives and instincts to a situation. Debating it out and finding common ground can be quite valuable.

Surely there is a limit to the maternal instinct in business. You can’t make every hire work. You can’t make every project work. You can’t make every investment work. That’s what I frequently tell the Gotham Gal. But that doesn’t stop her from trying. And I understand why.

Happy Mothers Day to all the moms out there. You care for us and we love you for it.

Video Of The Week: Solar Roof vs Solar Panels

We have had an order in for Tesla Solar Roof Tiles for almost two years, since they were announced back in 2017. Production delays and other issues have meant that we still don’t have them on our roof.

And they are more expensive than a regular roof plus traditional solar panels on the roof. But they look a lot better in my view.

This video explains all of that, and more, along with some helpful cost comparisons.