5 Lessons Learned From Starting Cryptomondays Back up
After a year of virtual meetups, CryptoMondays NYC had its first in-person meetup on Oct. 18th. One week later, CrpytoMondays Brooklyn launched its first meetup in a joint event with CryptoMondays NYC. The 18th featured a fireside chat with Alex Thorn, the head of firmwide research at Galaxy Digital. Galaxy Digital is a publicly-traded diversified financial services firm focused on digital assets and cryptocurrency. The featured speakers for the 25th were Blake Jamieson and Mike O’Day, two founders of the Knights of Degen NFT project. Here are some of the lessons learned from listening to them:
1. The Multi-Chain Future May Feature Less Chains Than We Think
The future will likely have multiple blockchains, but the question of how many is still unknown. Thorn leans towards a lower total number, in the single digits rather than double or triple. This belief comes from his conviction in layer two technology. Layer two refers to technology that works on top of a layer 1 blockchain (Bitcoin and Etherum are both layer one). As he said, “I’m really not convinced that if L2s work well, and by the way, you can spin up infinite L2s,” there’s a “reason for an entirely new chain all the time.” He brings up the lightning network as an example of how well layer two can work, describing it as “the fastest payment network on earth of any type… [notably] faster than a centralized database at Visa”
2. Sotheby’s and Christie’s Are Entering NFTs to Access a New Consumer Segment
The art auction companies Sotheby’s and Christie’s have both started auctioning NFT art. An audience member spoke briefly about their understanding from a friend at Sotheby’s, stating that a primary reason for interest in the NFT art world is due to access to a new consumer segment. Art auction companies skew towards certain demographics, making it hard to expand their consumer base. People who have gotten wealthy off crypto are a new type of client these companies can access through NFT auctions.
3. Ethereum Isn’t the Only Option for Centrally Issued Assets
For decentralized issued assets such as bitcoin or ether, having robust settlement assurances for the related blockchain is essential for safe dealings with said assets. As a decentralized asset, a reversed transaction leaves the user with little ability to reclaim their lost assets. Centralized issued assets do not have this problem. Tether, one such centralized issued asset, uses Tron blockchain. Tron does not have great settlement assurances, but this is less of a concern due to Tether’s centralized nature. If a reversal were to happen, Tether can revoke and reissue those Tethers to their rightful owner. What Tron does offer is a fast blockchain with low fees. These benefits may be more than worth the cost of worse settlement assurances for a centralized asset. Despite these advantages, Ethereum’s status as a tech standard makes it a safe choice for new projects.
4. Consider Building an NFT Project Around an Anchor
One of the aspects of Knights of Degen (KoD) that sets it apart from most other NFT projects is its focus on sports and sports betting. Every NFT community naturally has an interest in NFTs and the broader crypto space, but KoD has built a vibrant community around its sports niche. KoD hosts weekly events on discord where guests come in and talk about their experiences in professional sports. It also has channels for discussion on various sports. Of course, it also has channels for crypto discussion. Yet even these channels are dominated by the sport-related ones among them. Among the most popular Crypto channels are Zed Run and NBA Top Shots.
5. Institutional Interest in Crypto Continues to Accelerate
The institutionalization of cryptocurrencies is certainly not new, as Fidelity started looking into Crypto as early as 2015. Still, institutional interest continues to accelerate. Examples of this trend include the first bitcoin future ETF, growth of bitcoin venture firms, and the entrance of many name brand financial firms into the crypto space, Thorn knows from first-hand experience that investors with $200–300 billion under management are looking at the crypto market, genuinely studying it rather than just poking around. While this trend will certainly continue, Thorn remains a bit concerned about investor scalability and liquidity options for investments made into crypto companies.
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This content is for educational purposes only. It does not constitute trading advice. Past performance does not indicate future results. Do not invest more than you can afford to lose. The author of this article may hold assets mentioned in the piece.