Today, most people following nonfungibles observe that it is a very illiquid asset class and feel it is likely to stay that way. What may not be obvious is that, in the context of blockchain’s cryptoeconomic mechanisms, “liquidity” is merely a mechanism design problem being rapidly solved. In this post, I would like to dive into how cryptoeconomics will financialize the NFT space, improve its liquidity profile, and extend this technology to other illiquid assets over time.
by Jake Brukhman
Earlier this week, Rarible announced an incredible $14.2 million Series A funding round, led by Venrock and CoinFund. This represents impressive progress for the NFT marketplace in just one and a half years: as the project grew across its preseed, seed, and Series A rounds, Rarible’s cumulative trading volume has increased from $28,000 in June 2020 to $150 million in total sales by June 2021. Since becoming Rarible’s first institutional backer in the spring of 2020, CoinFund has worked closely with the project to launch the first community-owned and governed NFT marketplace, built on the $RARI token…
NFTs  are not just cat pictures that people trade on blockchains. Today digital art , collectibles , and in-game assets  are the most visible use cases for these nifty non-fungibles. But the market holds an inconspicuous secret: there is a staggering diversity of online digital content that can be placed on a blockchain in the form of NFTs.
Over the last five years of investing in the blockchain space, our team at CoinFund has arrived at a basic principle of blockchain investing: we want to invest in products that employ the core value propositions of crypto networks in a way that makes them highly competitive to traditional products. So we ask the following questions about products we come across:
So what are these features? We identify 9…
Black Lives Matter.
2020 should be a year in human history when this statement is not controversial and doesn’t need to be said, but unfortunately this is not the case. Black lives and livelihoods are threatened daily by discrimination and structural inequity across every facet of society. This should not be a reality in 21st century America or across the world but it is. Black Lives Matter.
Change will require conscious action from individuals in the choices they make on behalf of themselves and the organizations they are part of. This applies to us as members of the blockchain investment…
Dexes are here!
It took a little longer than anticipated, but decentralized exchanges are finally seeing accelerating growth in volumes and serving certain assets more effectively and globally than centralized exchanges. Technological maturity, the proliferation of tokens, and a bullish outlook on the market are helping to drive volumes.
The dex space saw $2.4 billion of volume in 2019. But in 2020, we’re estimating approximately $7.1 billion in annualized volume, a 194% year-on-year increase.
CoinFund’s Devin Walsh identifies some of the drivers of dex volume:
Today, the CoinFund team is thrilled to welcome Seth Ginns as a new Managing Partner with a focus on liquid investment strategies in digital asset and traditional equities markets. You can read about why Seth is joining our team at CoinFund in his own words.
Seth brings to our team twenty years of Wall Street experience, seven years of experience in blockchain investing, and a multidisciplinary background making him well-positioned to successfully navigate the blockchain markets and to help educate the next incoming wave of institutional capital. …
Cooperative game theory’s voting power indices will undoubtedly become important tools in blockchain-based governance systems and the pricing of governance tokens in the years to come.
In a previous post, we demonstrated the Banzhaf power index and performed a voting power analysis on the weighted voting system of MolochDAO. At the time of the analysis, Moloch’s voting system had fewer than 100 members and less than 8,000 units of voting power.
However, real tokens supplies have tens or hundreds of thousands of voters and millions or billions of units of voting power…