Key Takeaways:
- Gaming and NFTs are the keys to the next wave of adoption
- The Company’s financials and Tokenomics are important metrics for evaluation
- The dust of the bear market is likely to settle only end of 2023/early 2024
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Brian D. Evans and Kenny Izev of ReBlock Ventures and Sami Rusani of Hypernova Capital joined us in the Chain Debrief studio for an alpha-filled session where they gave us a perspective into investing in crypto and NFTs from the eyes of VCs, lessons they learnt from trading and their most degen crypto stories.
Bullish on the tech and use cases
“I am really focused on video games right now, I am actually building one right now.”
Brian D. Evans
Sami from Hypernova capital is also banging on how gaming will bring the next billion in crypto and be the main catalyst for web3 adoption. Even with the best metaverse and gaming infrastructure in place, there is still a need for “a good chain infrastructure, with better transaction speeds” before we actually see where we want to be with web3.
Apart from gaming, another sector which may instigate more reasons for adoption is NFTs. Especially in a tokenized owner economy, new innovations in NFTs such as fractionalized ownership may further bolster the use cases of crypto for the masses.
Other use cases such as DeFi should not go unnoticed, especially when it serves the unbanked in developing countries. “We are in a crazy market right now, but that is just secondary to the use cases which are coming, there is nothing which can stop it.”
Metrics for evaluating projects
“It is hard to pin it down on one metric, but the first thing we look at is the founders and whether they understand their space and niche.”
Kenny Izev
The main areas of focus to look out for in web3 are categorized into two broad verticals: The company and tokenomics.
Web2 evaluation
Just like how evaluations in the equities market are done, you do the same in web3. This includes looking at the people behind the company, their revenue streams, cash flows and the nitty-gritty financial metrics which gives you a proper representation of the company’s health.
This component in the evaluation continues to hold its ground in the web3 space, especially in projecting how well the project is doing in the future.
Tokenomics
However, specifically for web3 projects with a token structure, there needs to be an evaluation of the project’s token economy, also known as tokenomics. While this may be a commonly known term for crypto natives, tokenomics comes as an essential tool for how well the project will do in time, inclusive of hints about its roadmap and its sustainability.
Personal strategies to combat the bear
“Until you get to a point with max pain, you are not really able to call the bottom”
Brian D. Evans
While we are in a little accumulation phase, there still could be worst things coming. “Even if we forget about macro for a second, the market cycles in normal conditions are hard to predict,” but that is where dollar cost averaging comes to play.
The term might be overused and boring in the bull market, but doing it consistently could ensure success on the wider horizon.
Amidst all the major economic turmoils of the world, such as inflation, the war, and regulatory stance on crypto among many others, “I don’t see any major catalyst for triggering a bull market any time soon… until late 2023/ early 2024.”
Brian D. Evans navigating the bear
“I am heavily in Bitcoin and Ethereum, and for NFTs, I just picked up a Moonbird”
Alpha: The floor for three digital ENS domains is 40ETH while three letter ENS domains cost $70.
Sami Rusani navigating the bear
“I look for consistent returns and don’t risk too much in the bear, currently heavily in stables but DCA anything for ETH below $1400.”
Kenny Izev navigating the bear
“BTC and ETH have to be in your portfolio, it just makes sense.”
Being successful in the web3
Being successful in web3 will comprise many things, but it all boils down to networking.
With greater access to people, communities and opportunities, navigating your way in might be more ease compared to the regular entrepreneurial world. With investors often entering the space in an attempt to chase the gains, this aspect of web3 is often overlooked and under-tapped.
“It is about the community and the big cause.”
Sami Rusani
Find out more about how to be successful in Web3 and how you can start your own community in our interview with Brian, Sami and Kenny here.
[Editor’s Note: This article does not represent financial advice. Please do your own research before investing.]
Featured Image Credit: Chain Debrief
