Nelson Chen: Neutral Project (ex-Blackrock)

A metastable basket of stablecoins, native financial instruments and the infrastructure that underpins them

In this episode of the Future 1 webshow & podcast, we meet Nelson Chen from Neutral Project. He was previously a research analyst at BlackRock and research consultant at WorldQuant. He studied computer Science at Georgia Tech and Finance at University of Texas. Neutral Dollar went live 2 weeks ago and is a metastable basket of stablecoins. The result is a digital dollar which has lower volatility and combines fragmented pools of liquidity and is an entirely new blockchain-native financial instrument. The on-chain token processes revolves around the profit-seeking behavior of rational arbitrageurs and mimics properties of a traditional ETF in a fully transparent way. To learn more, visit their blog at blog.neutralproject.com and their telegram channel

Genesis Block Holdings, is a venture capitaldigital currency, & mining fund focused on investing in blockchain technology that supports how the world will change in the future. Visit our website here: http://www.genbvc.com and listen to our podcast here: Apple SpotifyGoogle

we also have the video here>>:

DISCLOSURE: The material contained on this web series & podcast is for informational purposes only and should not be construed as an offer or a recommendation to buy or sell any security nor is it to be construed as investment advice.

music credits: Clouds by MBB | https://soundcloud.com/mbbofficial , Music promoted by https://www.free-stock-music.com , Creative Commons Attribution-ShareAlike 3.0 Unported , https://creativecommons.org/licenses/by-sa/3.0/deed.en_US

Fund Summit: Digital Assets & Liquidity

How to Guard against volatility & how the recessions will react

Panelists:
Jeff Dorman, Chief Investment Officer at Arca
Ateet Ahulwalia, Managing Director at CoVenture;
Arianna Simpson, Managing Director at Autonomous Partners
Tim Young, Founder at Neural Capital
Paul Brodsky, Partner at Pantera Capital

Investible assets

  • There are thousands of assets, but few are investible

  • It’s hard to think about the long term

Liquidity

  • Separate from private venture & has a hedge capability

  • Private investing is looked at a liquidity standpoint

  • On the venture side, there isn’t liquidity

  • It is hard to see the opportunites on the venture side until the concepts are validated, but with the public markets, liquidity is concentrated within such a small subset within the ecosystem

  • Fiat currencies have not fed the needs of people, which kicked this whole thing off.

  • Digital gold doesn’t necessarily need to be used in transactions, similar to Bitcoin

  • Stablecoins that hash more could also be used as options for payments & distribution

    Bitcoin:

  • There might be a single digit # of currencies that behave like gold & a means of exchange. There could be 100s that would have commercial use cases

  • We don’t really know how it’s going to play out, so the only prudent strategy is to diversify appropriately among the winners

  • Looking at everything that comes down and their chances of adoption & scale

    Gold 2.0

  • There was a european union who had confiscated 50% of assets from people.

  • Western consumers flocked to bitcoin when needing to turn to a store of value when their own government turned against them.

  • 676 metric tons of gold was bought last year which is one of the highest amounts in history

  • When following what people do vs. say, you’ll see central banks buying more gold as a store of value and to back derivative contracts

  • Bitcoin is still be using for transactions and millions of dollars can still be sent anywhere in the world vs. the hassle of having to store or trasport gold

  • All crypto is a risky asset that has the store of value. Airbnb, Uber, & others also started out like this and then later achieved product market fit

  • Bitcoin & many of the tokens might not have achieved full product market fit

  • Network effects for valuation: Every digital asset has different characteristics to value them.

  • Metcalf’s law = value = the square of the connected users in the system

  • Digital assets are trending towards staking , which will be transformative in the future

  • Early stage investors are looking for scaling due to high risk and reward. Scaling can be the goal for any technology. So good things to look at are chances of adoption vs. scaling.

    Family Offices

  • As an asset manager, it’s not really your place to tell family offices how to allocate, but it is important to educate them on the risks

  • With an asset with such a small market cap, it is expected to be volatile

  • There is a low correlation to public markets, so its reasonable to get out of “zero”

    Recession

  • When there is another recession, it will be expected for crypto to be on the monetary rail to be global, & increase exposure of sovereign fiat currencies to help prevent central banks to inflate their money stock

  • In 2008, gold fell down 38% before rallying 3 fold, so you would sell when you can not when you want

  • In the crypto winter: Bitcoin fell 55%, S&P down 22%, while gold was pretty stable. In these recessions, its important to look at a broader time window

  • Since bitcoin is pretty liquid and serve as a store of value, this will start to matter in a recession. People’s underlying needs for liquidity especially with an 180B market can quickly be a priority when the time calls for it

  • In high stress, everything goes to correlation 1 in a short term burst

  • We don’t get as much traction with younger investors as you think.

  • It is the older investors who are more afraid of counterparty risk due to the past recessions

  • As crypto works outside of the financial system, clients are seeing that as an opportunity to reduce risk

  • When correlation is low, it is a good time to actively manage. There are a number assets that are starting to step out.

  • Many of the projects that are not operational yet, but the investments are to make them more operational

  • We look at attributing what form of alpha we can achieve based on typical trading measure such as: sharpe ratio, hitrate, portfolio var, beta, etc...

  • Venture investing is harder to benchmark

  • There are different substrategies within crypto whether it is active trading vs. venture investing

  • It is important to look at the other strategies and the expectations of the strategy

  • What token would you want to be holding for the next 10 years? Bitcoin, Maker, BitX (index fund for Bitwise) & Augur

Genesis Block Holdings, is a venture capitaldigital currency, & mining fund focused on investing in blockchain technology that supports how the world will change in the future. Visit our website here: http://www.genbvc.com and listen to our podcast here: Apple SpotifyGoogle

From Goldman Sachs to Crypto

Alot of smart people from institutions are moving to tech & crypto

With the ipos this year, there are signs of the new guard coming in on the digital currency & crypto opportunities. We are seeing interesting things like the COO of Bridgewater move to a crypto firm. Similarly, In this latest episode of our podcast on: Apple SpotifyGoogle, and all other major channels: we meet Raakhee Miller (Ex-Goldman Sachs alum). Rakhee is the CEO of Bitsian. She is a super interesting person. Bitsian is a one-stop aggregator where you can trade any coin to any coin confidently and get the best price across exchanges. The global order book allows to see across all order books at once, and helps you organize all your accounts in one place. Rakhee grew up in Hong Kong and held multiple successful leadership positions at Goldman Sachs, managing solutions for listed derivatives and prime brokerage. She started her career in business consulting at SunGard, providing integration and professional services for clients who were using SunGard’s standard derivatives clearing and settlements software (GMI).

Watch the video!!

We talk about her experience moving from China to NYC & the similarities she noticed. In addition, we walk through the benefits & features of the Bitsian platform. Some great things to learn are how she juggles between being a CEO, Mom, & wife. And it’s exciting to hear about her Head of Product’s trip to Antarctica. We explore thoughts on career changes over time, her biggest regrets, and the bright future ahead for Bitsian. For more information and early access to the waitlist, visit www.bitsian.io

Genesis Block Holdings, is a venture capitaldigital currency, & mining fund focused on investing in blockchain technology that supports how the world will change in the future. Visit our website here: http://www.genbvc.com and listen to our podcast here: Apple SpotifyGoogle

The material contained on this web series & podcast is for informational purposes only and should not be construed as an offer or a recommendation to buy or sell any security nor is it to be construed as investment advice.

Music credits: Clouds by MBB | https://soundcloud.com/mbbofficial , Music promoted by https://www.free-stock-music.com , Creative Commons Attribution-ShareAlike 3.0 Unported , https://creativecommons.org/licenses/by-sa/3.0/deed.en_US

Decentralized Derivatives

The Opium Protocol has a set of smart-contracts that allow anyone to construct and trade financial derivatives on any underlying value

In this episode of our podcast, we meet Andrey Belyakov. Andrey is a member of the CFA Institute, a professional derivative trader, and fund manager with 10 years of experience with 20+ billion EUR AUM portfolios. Andrey is an entrepreneur, private venture investor and advisor of several fintech start ups. We talk about his new blockchain project Opium. Opium Protocol is the universal protocol to create, settle and trade virtually all derivatives in a trustless way. It has a set of smart-contracts that allow anyone to construct and trade financial derivatives on any underlying value. All of this can be done without intermediaries such as notaries, banks, brokers and exchanges. The system is designed to operate completely decentralized. The synthetic derivatives created can use leverage to trade derivatives on any underlying value while still keeping full ownership of your positions, & manages risk through various parameters & market views with counterparties. We talk about how this platform is going to transform institutional trading , and we wrap up with talking about his biggest regret in life. Learn more here: https://www.opium.network. Here is a link to our podcast on Apple SpotifyGoogle to hear this episode and all the other episodes interviewing the top blockchain funds, entrepreneurs, & institutions.

The material contained on this web series & podcast is for informational purposes only and should not to be construed as an offer or a recommendation to buy or sell a security nor is it to be construed as investment advice.

Genesis Block Holdings, is a venture capitaldigital currency, & mining fund focused on investing in blockchain technology that supports how the world will change in the future. Visit our website here: http://www.genbvc.com and listen to our podcast here: Apple SpotifyGoogle

music credits: Clouds by MBB | https://soundcloud.com/mbbofficial , Music promoted by https://www.free-stock-music.com , Creative Commons Attribution-ShareAlike 3.0 Unported , https://creativecommons.org/licenses/by-sa/3.0/deed.en_US

IMPORTANT NOTICE: This document is intended for informational purposes only. The views expressed in this document are not, and should not be construed as, investment advice or recommendations. Recipients of this document should do their own due diligence, taking into account their specific financial circumstances, investment objectives and risk tolerance (which are not considered in this document) before investing. This document is not an offer, nor the solicitation of an offer, to buy or sell any of the assets mentioned herein.

India Fund Summit (Venture Capital Highlights)

The lifecycle of India Focused funds

The Lifecycle of India Focused Funds is an annual conference hosted by Nishith Desai Associates (NDA,) bringing together top fund managers, LPs and thought leaders to discuss existing and emerging issues in the investment milieu in India, along with takeaways executives need to understand the Indian fund industry.

The event, annually establishes India’s significance as a substantial market for VC, private equity and big ticket mergers & acquisitions

In 2019, the conference focused on aspects to consider while setting up India-focused funds and recent developments that affect the industry. In light of the upcoming general elections, the discussions gauged the international perception of India and offer the opportunity to chart a course for the future.

There were some amazing talks and some that were particularly interesting were the ones on how venture capital is transforming and building up momentum towards explosive growth. There is more interest on the enterprise side with the power that Indian has.  A lot of international investors are getting into Indian sass plays.

Here are a few takeaways from one of their panels talking about Tech deals

  • Capital on the buyout & corporate side in various opportunities 

  • Automated software technologies developed in India are getting pulled by customers across other countries for various deals and unique types of structures 

  • The normal hold period is usually 6 years in tech investments. We can’t hold on much longer

  • As a proxy to the SPV, LPs want to coinvest 

  • Sovereign wealth funds, family offices, and pension funds all have various expectations & conflicting views etc so it’s important to have a strong investment thesis and make the right partnerships appropriately when it comes to specific deals

  • Series B: When looking at a company, the entry threshold for a series B is $4M ARR. Other things to look at although it’s a cliche is the team. When it comes to team, they need to have grit. Knowing that the team is resilient in an unpredictable world is massively important.

  • Late Stage: They look at massive scale risk and it still comes back to the team 

  • QUESTION: Do you prefer unique ip & a new business model vs just growth & licensing?  “Every company we invest in is a unique product & tech company”.  This helps to create a higher bar when it comes to competition and valuation.

Genesis Block Holdings is a blockchain venture capitaldigital currency, & mining fund focused on investing in technology that supports how the world will change in the future. Visit our website here: http://www.genbvc.com and listen to our podcast here: Apple , Spotify, Google

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