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    Empire

    Should I Buy a Punk? | Roundup

    Fri Jun 30 2023
    Crypto IndustryDigital PropertyMetaverseNFTsPunksCollectiblesInvestmentsPrivacy ConcernsFunding TrendsInvestment StrategiesFinancial TroublesBankruptcy ProtectionCustodian OversightTUSD StablecoinLongevity
    1. The Importance of Owning and Self-Custodying Digital Property
    2. The Future of the Internet: The Metaverse
    3. Buying Punks: Collecting vs Investing
    4. Factors to Consider When Buying a Punk
    5. Criticism and Privacy Concerns in the NFT Space
    6. Funding Trends and Opportunities in the Crypto Market
    7. Investment Strategies and Opportunities in the Crypto Space
    8. Financial Troubles and Bankruptcy Protection in the Crypto Industry
    9. Concerns and Implications of Prime Trust's Financial Troubles
    10. Exploring Longevity and Other Topics

    The episode covers various topics in the crypto industry, including the importance of owning and self-custodying digital property, the future of the internet with the metaverse, buying punks as collectibles or investments, criticism and privacy concerns in the NFT space, funding trends and opportunities, investment strategies and opportunities, financial troubles and bankruptcy protection in the crypto industry, concerns and implications of Prime Trust's financial troubles, and exploring longevity and other related topics.

    The Importance of Owning and Self-Custodying Digital Property

    00:03 - 07:17

    • The crypto industry needs to improve the narrative of explaining the importance of owning and self-custodying digital property.
    • Property rights are fundamental for any developed economy.
    • NFTs tap into humans' desire for differentiation and expression in the digital context.
    • NFTs represent culture and personal experiences, not just collectibles.
    • Humans are spending more time in the digital world, making NFTs even more important.

    The Future of the Internet: The Metaverse

    00:03 - 07:17

    • The metaverse is the future of the internet, combining AR, VR, and real-life experiences.

    Buying Punks: Collecting vs Investing

    06:49 - 14:03

    • The question of whether or not now is the right time to buy a punk is difficult to answer.
    • Punks are relevant as the first real project on the Ethereum blockchain and have aesthetic appeal.
    • The decision to buy a punk depends on whether you are collecting or investing.
    • Collecting NFTs should be based on personal preference rather than potential investment returns.
    • Hoodie punks were collected because they represented hacker culture and appealed aesthetically.
    • Buying a punk can be seen as acquiring an iconic piece for serious collectors, similar to traditional art collectors owning works by famous artists.
    • Some people may face liquidity issues if they bought punks with leverage or speculative intentions.
    • The history of punk ownership can reveal interesting trends in buying and selling behavior.
    • Punks OTC is a platform for trading punks, but its value and purpose are not fully understood.

    Factors to Consider When Buying a Punk

    13:47 - 20:25

    • Buying a punk can be based on personal preference or as a speculative investment.
    • Some people prefer to buy unique and rare punks, while others focus on the floor price.
    • Investors may see punks as a collection that holds its value well compared to other NFTs.
    • The decision between buying a grail or a floor punk depends on personal attachment and budget.
    • It's important to buy something you like rather than just for its potential value.
    • Owning a punk can be seen as a way to show off within the crypto community.

    Criticism and Privacy Concerns in the NFT Space

    19:58 - 26:48

    • Punks receive positive responses from people outside of the crypto community, while board apes do not.
    • The flex component of NFTs is criticized for being vain and judgmental.
    • It is advisable to buy NFTs with a clean wallet to maintain privacy.
    • Azuki's launched a new project that resulted in a dilution event and a decrease in price.
    • The new Azuki's collection was expected to be more unique and differentiated.
    • The business model of NFTs is being questioned, as different projects pursue various strategies.
    • Having no roadmap may be the best approach for NFT projects.

    Funding Trends and Opportunities in the Crypto Market

    26:37 - 33:41

    • The number of companies raising funds is down, with June having the lowest number of deals announced so far this year.
    • However, there has been a significant increase in seed and series A deals in June.
    • Some deals may not be announced immediately due to various reasons such as team strategy or timing.
    • New deal flow is more common now, with some companies doing well and wanting to buy more.
    • Three projects have returned capital this week, indicating that they are done or haven't found a good fit.
    • There is still a lot of infrastructure and AI-focused projects in the market.
    • Valuations for seed and series A deals are significantly lower than before, making it a great environment for deploying capital.
    • The types of companies receiving funding vary, with interest in launching new L2s and exploring banking ideas.

    Investment Strategies and Opportunities in the Crypto Space

    33:29 - 40:11

    • Met interesting founders and teams building financial infrastructure in the crypto space.
    • Some companies have good products and teams but need a jumpstart to gain traction.
    • Investing in existing projects with de-risked assets can provide good returns.
    • Looking at a company focused on net settlement to minimize counterparty risk.
    • Believes it's a good time to start a bank due to market conditions.
    • Opportunity to invest in decent valuations and pick up undervalued assets and teams.
    • Momentum changes quickly, so need to consider catalysts for investment decisions.
    • Not interested in Bitcoin-only companies as it limits scalability and customer pushback can be significant when expanding offerings.

    Financial Troubles and Bankruptcy Protection in the Crypto Industry

    39:54 - 46:41

    • Some funds are buying stocks as a leveraged bet on Bitcoin.
    • Coinbase is one of the platforms to consider for exposure to Bitcoin.
    • Koyamais is a proxy for the overall market's understanding and appetite for crypto.
    • Disorderly shakedowns in markets lead to mispriced assets and flocking to perceived safety.
    • Negative headlines often coincide with market bottoms or good moments to take a long position.
    • Prime Trust, an infrastructure provider for crypto companies, faced financial troubles and bankruptcy protection.
    • BitGo initially planned to acquire Prime Trust but terminated the acquisition due to difficulties.
    • Prime Trust lost access to legacy wallets in 2021 and used customer assets to buy back their crypto, leaving them short on obligations.

    Concerns and Implications of Prime Trust's Financial Troubles

    46:12 - 53:14

    • Prime Trust CEO knew they were onboarding when insolvent.
    • Questions about custodian oversight and client visibility of funds.
    • 88% of crypto held by Prime Trust is audio token.
    • Implications for TUSD stablecoin and its market cap.
    • Shorting of TUSD observed in response to the situation.
    • Uncertainty around halting minting and redeeming of TUSD.

    Exploring Longevity and Other Topics

    52:55 - 54:35

    • Certain animals age backwards, like jellyfish.
    • Some species die immediately after giving birth, such as octopus and spiders.
    • Certain flies, whales, alligators, and sharks have long lifespans.
    • Brian Johnson and other experts are exploring longevity.
    • There was a planned longevity panel at an event but it got postponed.
    • One possibility for extending life is transferring our consciousness to AI.
    • The speaker finds Brian Johnson's appearance similar to what they imagine themselves looking like in an avatar form.
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