The market has been very very distorted. Distortion has been taken to a completely different level now.
I truly believe that people want to go after structurally long risk assets over the low ones in the long run because while the rates are rising now, it is making things more difficult. I do believe structural inflation is a necessity.
Against that backdrop, you’ve got to invest in real companies that create value every day. Their tokens have a lot of utility value and it’s not dependent on liquidity or flows.
Over the long run, you want to know you are compounding your value. If you have a constructive view of risk markets like I do because I frankly don’t think they’re going to be able to raise rates a lot more than they have.
And of course, feel free to DYOR and pick great companies.
I like to think 6 months ahead. I was way too early calling inflation when they started printing like crazy. Two-three years ago, I said inflation was going to happen. And it finally happened. No one can print this much money and not expect inflation. Especially when everyone was home in the Covid-19 times.
Now, I’m very constructive because core PCE which is the inflation number that the FED really focuses on, has been decelerated so inflation numbers you are looking at is a lagging indicator.
40% of inflation is the owner’s equivalent rent. You could see real estate really taking off in the last three months. So, all the different inflation indicators are that the second derivative is a material slowdown and now even the first derivative is going negative.
I’m thinking that in three to six months, we’re going to have a much better inflation: the FED is going to overdo it because they’re highly unaccountable; there’ll be no more meaning to fiat, there’ll be no more credibility left in the system; structural inflation will be here forever.
The right crypto projects will be doing incredibly well. People that are in pain in crypto because of a lot of speculation, they ought to move away from speculation and get more into investing in crypto projects that have great staking. utility, free cash flow, prospects, and huge addressable markets.
We are empowering independent designers in a permissionless way. The most rigged system in the world is high-end fashion. It’s a bunch of few companies controlling $3.1 trillion. Very little gravy left for independent designers that are in the tens of thousands that make up easily $450 billion.
Finance is completely rigged. You’ve mentioned Ponzi Schemes and what I can say about it is that the entire fractional Reserve banking system is one big Ponzi Scheme.
There’s a lot we can learn. There’s a myopic focus on shilling, community, marketing, and zero focus on true value creation, what projects are trying to establish and what problems are trying to solve in a permissionless way. I think we’re doing ourselves a disservice. I’m happy that we’re self-regulated and I’m convinced we can do a much better job of being mature.
I’m going to give one piece of advice. I wish I went with my gut reaction in February before we launched. I was focusing a lot on finding a community that was understanding traditional markets, value creation, free cash flow, revenue positive balance sheets. However, I was advised not to do that but instead, build a community, build hype.
I was being asked who my VC funds were and if I didn’t answer with a specific list of them, I was a loser. People also told me I had a limited market cap at TGE and it mattered because the first day performance was everything. I fell for it and we did well, however I should’ve gone with my instincts and should’ve ignored all that.
I should’ve taken more time to find the right long-term partners, do less shilling, and other stuff that is very endemic to crypto. In fact, none of these people advising me about such things are around today.
Thus, my advice is don’t get bullied to do short-term things that lead to one-day pump, because after that, comes dump.
You know, intellectual properties are not respected by law in Latin America. And NFT is a big market. It is quite difficult to understand what’s happening out there in news organizations and industry overall.
Yet, we are trying to do everything possible for the government to respect unique pieces of content and stop sharing it with others.