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The future of crypto investing
24.01.2019
January 18th – Weekly Crypto Digest
ANDREW LEE
@alee

Spark Capital co-founder and General Partner Bijan Sabet, who led early investments in Twitter & Tumblr, blogs about how he was too trusting of centralized services such as Google search, Google Maps, Facebook, Amazon Echo, Waze & smart TVs. Bijan says big companies need to “earn back” his trust. – Link

Bitmex estimates ICO teams have realized gains of $1.5B by selling team tokens, according their analysis of wallets. Bitmex says the gains were made with “very little work, accountability or transparency.” ICO market lacks standards and transparency when it comes to the allocation of team tokens. Investor ICO pain of 2017 & 2018 is not likely to be quickly forgotten, a repeat of this cycle is unlikely in a few years. – Link

Brock Pierce says high-returning ICO market was like musical chairs. ICO market was overvalued and people didn’t even have a prototype or working products. Community and developer adoption are the 2 most important metrics for protocol investments. Adoption will come from gaming, messaging, peer-to-peer payments and banking the unbanked and we’ll see tokenization of fiat money, debt market, equities, real estate and more. Little gets built when prices are up because teams don’t stick around long because everyone is “getting rich too quick.” – Link

Ethereum devs postpone Constantinople hard fork to February 27 after a vulnerability that allowed attackers to drain eth from a smart contract was found. Constantinople was originally planned for mid-January. – Link

Chromapolis CTO & Colored Coins co-founder Alex Mizrahidiscusses the benefits as well as the technical implementation options for publicly hosted application infrastructure. Problems with centralized applications include violation of user privacy & censorship. – Link

Grin launches on January 15 and the crypto community debates the fairness of Grin’s launch. Although grin had generalized hardware for mining and no premine, some say mining is too operationally and technically challenging, allowing mostly only VCs and accredited investors to invest via Special-Purpose Vehicles. – Link 1 Link 2 Link 3

Applicants and winners of Tron’s $1M dapp fund raise questions on the integrity of the contest & whether Tron falsely marketed the fund size. – Link

Tim Draper says bitcoin is valuable because its a frictionless currency and a digital store of value. “The potential if bitcoin is only limited by the imaginations of the entrepreneurs who work to drive this new virtual economy,” Draper says. Crypto feels like the internet in 1994. – Link

Brock Pierce says the bear market “is a cleaning or purging of all the people who don’t belong here. What’s going to turn it around? Delivering functional products at scale.” – Link

Coinstar, which has 20k self-service coin-counting kiosks around the globe, will start selling bitcoin for cash at grocery stores. – Link

Casper Labs reportedly receives verbal commitments to raise up to $20M for its Series A round, with participation from Galaxy, BlockTower and Scott Walker, to speed up development on the Casper proof-of-stake scalability solution, according to The Block. Vlad Zamfir says he is in talks to hold a research role at Casper Labs. – Link

3box, a decentralized open-source profile creation tool running on IPFS and managed via OrbitDB, launches the ability for users to verify Github & Twitter account handles to their 3box social profile. – Link

Storj founder James Prestwich summarizes ETH2.0, an initiative to completely subsume Ethereum’s consensus system and state under a new architecture that uses sharding, Casper, state rent, and an eWASM VM. “ETH2.0 will be a completely different system from Ethereum. They will both exist in parallel for years and have widely different feature sets,” Prestwich says. – Link

Winklevoss Capital: “Because the end of 2017 was so crazy, people tend to think the space moves at lightning speed.. At the level of underlying [tech] development it [often] does but I think it takes a while for institutions to get comfortable.” – Link

Arjun Balaji goes in depth on the current state and progress of lightning network, which is finally growing out of its initial infrastructure. – Link

New Zealand-based digital assets exchange Cryptopia loses at least $3.6M in hack. Kraken CEO reminds people to never store crypto on an exchange. – Link

What’s Happening on Twitter:

“Crypto Markets & Development
2013: Frenzy & Over-Promise
2014: Crash & Under-Deliver
2015: Consolidate & Ship
2016: Lift & Refine for Adoption
2017: Frenzy & Over-Promise
2018: Crash & Under-Deliver
2019: Consolidate & Ship
2020: Lift & Refine for Adoption
2021: Frenzy…” – Chris Burniske

“As more crypto infra is built, user facing apps will be easier to release & emerge at an *accelerating* rate.
It may feel like molasses now & people will scream, “Where’s the adoption?!,” but when app-building starts to inflect it will take our collective breath away.” – Chris Burniske

“My Ethereum prediction for 2019 is simple: layer 2 is coming.” – Evan Van Ness

Thanks everyone!

– Andrew

 

 

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