Posts from Web3

Swapping NFTs

We own a fair number of NFTs that I have collected since 2017 when I was buying Rare Pepes and CryptoKitties. We have accumulated a nice collection of Top Shots and a bunch of other NFTs as well.

But I don’t want to sell our NFTs. We also don’t like to sell the art we have collected over the years. We also don’t like to sell the crypto assets we hold.

But I am very interested in swapping NFTs for other ones.

Here’s how I would imagine an NFT swapping service would work.

1/ I visit the swapping service and connect with a wallet.

2/ I list the NFTs that I own that I am willing to swap.

3/ I browse the service to see the NFTs that others have listed to swap.

4/ I find an NFT I would like to swap and I make a swap offer to the owner.

5/ The owner accepts, declines, or proposes a different swap.

6/ If a swap is accepted, it is processed on-chain.

I could imagine that swaps would not need to be one NFT for another NFT, although you might start there. Over time, you could end up with multiple NFTs for a single NFT, or possibly one NFT for another plus some crypto to sweeten the deal.

I have been asking around to find a service like this and have not found one yet. If you know of such a service, pls let me know via email or Twitter. If there isn’t one, maybe someone should build it.

#Web3

Buying Crypto Assets

A number of friends have been asking us how to buy crypto assets. This is not the first time we’ve gotten this question and it won’t be the last.

When I first started getting this question, my answer was “open a Coinbase account and buy Bitcoin.”

Then there was a period when my answer was “open a Coinbase account and buy Bitcoin and Ethereum.”

Today, my answer is “open a Coinbase account and buy a diverse set of crypto assets.”

A diverse set of crypto assets would include Bitcoin, Ethereum, the other major layer one blockchains (Solana, Flow, Avalanche, Polkadot, Algorand, etc), the major Defi protocols (Uniswap, Aave, Compound, etc), storage protocols (Filecoin, Arweave, etc), telecommunications protocols (like Helium), some layer two protocols (like Stacks, Polygon, etc), some gaming assets (like Axie, Decentraland, etc), a maybe some NFTs.

That last paragraph is not meant to be specific. It is meant to be illustrative. And that list contains assets that I own and USV owns as well as many assets that I and USV do not own. I am not recommending any specific assets here. I am recommending a diverse portfolio and those are some good examples of what might be in one.

I do not believe the web3/crypto opportunity can be captured by simply holding Bitcoin and Ethereum anymore. You must own a broader set of assets because the market is expanding beyond the OGs now and you need to be exposed to more of it.

I believe there will be index funds that can do this for you someday. But today your options are limited unless you have the wealth and access to the premier token funds and that is hard to achieve.

Finally, I have no idea where we are in this bull cycle we are in (that is leading to so many people asking us this question right now), so I would be conservative and dollar cost into crypto. If you want to put $10,000 into crypto, I would put $1,000 a month each month for the next ten months, for example. It is hard to be patient like that when prices are rising so fast, but they can fall even faster so it is best to be careful and conservative with an asset class like this.

Finally, these are very long-term investments. If you want to buy crypto assets, you should think of them as a ten-year buy-and-hold portfolio (or longer). That will help you make better decisions as you invest in this exciting new asset class.

I wrote this mostly to send to friends who ask but figured I’d share it with everyone else too. Good luck, be careful, be patient, and have a long-term view when investing in high-risk assets.

#crypto#Web3

Dapper Collectives

Our portfolio company Dapper Labs, creator of CryptoKitties, the Flow Blockchain, and the NBA Top Shot collectible game, is announcing Dapper Collectives today.

Dapper Collectives comes by way of an acquisition of Brud, a company that has been developing “community-owned media and collectively built worlds” for the last five years. Dapper Collectives will be led by Trevor McFedries, the founder and CEO of Brud and the co-founder of the FWB DAO. Trevor is also an LP at USV.

Dapper Collectives has a mission to “bring decentralized organizations (“DAOs”) to the mainstream”. The initial efforts of Dapper Collectives will include:

  • Bring community ownership and collective building to Dapper Labs products –– starting with Lil Miquela and her 10 million fans;
  • Build and release open source tools to help other mainstream communities engage in decentralized ownership and governance on Flow blockchain;
  • Help the most forward-thinking “web 2” companies decentralize their operations, engaging at the CEO and Board of Directors level to assist in tokenomics as well as technical implementation.

DAOs are quickly becoming the preferred organizing model for crypto projects, community efforts, and investing activities in Web3 and Dapper Collectives will energize these activities on the Flow blockchain.

#crypto#Web3