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Bonk Eco continues to show strength amid $USELESS rally
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Pump.fun to raise $1B token sale, traders speculating on airdrop
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Boop.Fun leading the way with a new launchpad on Solana.
Omar
Definitely NFA. Investor @Dragonfly_xyz
If anyone wants to poach a Blackrock exec, current market price is $12.5m:
- $7m signing bonus
- $750k base + min of $750k bonus (up to $1.125m)
- $4m second year bonus (minimum)
8 tuntia sitten
[ ZOOMER ]
BLACKROCK'S HEAD OF CRYPTO LEAVES BLACKROCK TO JOIN JOE LUBIN'S ETHEREUM TREASURY COMPANY SBET
926
Omar kirjasi uudelleen
Dragonfly invested into PepperSec, Inc., the developers of Tornado Cash, in August of 2020. We made this investment because we believe in the importance of open-source privacy-preserving technology. Prior to our investment, we obtained an outside legal opinion that confirmed that Tornado Cash as built complied with the law, under the guidance given by FinCEN in 2019.
The government has now stated in open court that they are contemplating charges against Dragonfly for having invested into the Tornado Cash team in 2020.
On counsel’s advice, we have refrained from public comment. But we can no longer remain silent.
We believe deeply in Americans’ right to privacy, and the lack of it remains one of crypto’s largest unsolved problems. We therefore stand by our investment. We did not operate or exercise any control over Tornado Cash, we had no contact with any malicious users, we always encouraged our portfolio companies to follow the law, and we maintain that Tornado Cash itself has a lawful right to exist—a view reinforced by Van Loon v. Department of the Treasury and OFAC’s subsequent rescission of sanctions. Charging a venture firm for a portfolio company’s alleged misconduct would be unprecedented, especially under these circumstances.
In 2023 we received a DOJ subpoena and have fully cooperated with the government’s investigation of Tornado Cash, confident that we have always complied with the law. The DOJ has made clear that we are not ourselves a target of their investigation. As with every investment, we provided PepperSec the same advice and support we offer all portfolio companies.
We believe the government’s statement in court today was primarily to undermine a defense of Tornado Cash—to make it more difficult for the defense to call Tom to testify on the stand.
After all of this time—years later—bringing charges against Dragonfly would be outrageous, contrary to the facts and the law, and would induce a chilling effect onto all investment into crypto and privacy-preserving technologies in America.
We don’t believe the DOJ would actually bring such absurd and groundless charges. But if they do, we intend to vigorously defend ourselves.
33
Great thread from one of the best on the subtle design nuances that separate Hype from the other venues
And if you like the topic, "Nudge" by Thaler is a worthwhile read (i.e. ever wonder why there's a picture of a fly in most urinals?). Breaks down the ways all our actions are influenced. Was recommended to me by @travsteph and since reading, shocking to see all the micro manipulations across all facets of our daily lives
10 tuntia sitten
Hyperliquid is an addictive app that puts you in a flow state similar to the best designed slot machines.
This is why people use it and have trouble stopping. Hope this helps
9,87K
Great thread from one of the best on the subtle design nuances that separate Hype from the other venues
And if you like the topic, Nudge is a worthwhile read recommended to me by a @travsteph. Breaks down all the little nudges that influence our actions (i.e. why is there a picture of a fly in most urinals?)
10 tuntia sitten
Hyperliquid is an addictive app that puts you in a flow state similar to the best designed slot machines.
This is why people use it and have trouble stopping. Hope this helps
92
Public multiples blowing out as markets go full risk on. NTM revenue multiples doubled from 10.3x a year ago to 21.4x today
We’re 2/3 of the way to peak ‘21 Covid multiples. And if froth across private and public markets is any indicator, going to run it all the way back
1.7.2024
OO (#25): The primary reason traditional equity deals are struggling to get done in crypto is .... MULTIPLES.
A good way to get a baseline for pricing is by looking at median SAAS NTM revenue multiples in tradfi:
- High Growth (>27% y/y growth): 10.3x
- Medium Growth (15% - 27%): 7.6x
- Low Growth (0% - 15%): 3.8x
Example: if you have a business that is anticipated to grow 30% next year and generate $130m of revenue, it would be priced at an EV of ~$1.3b. That's it.
Despite having ~80% gross margins. That same business in '21, would have been priced at >$4.5b, and if growth was well north of 30%, it could have easily commanded >$6b.
Today, it is really hard to get your head around the math for these transactions when you incorporate what the public markets or a strategic will pay for the same business. Further, when you bake in the previous round valuation, cap-table, employee and founder equity, most founders don't want to deal with the restructuring of a down round. In turn they only raise when they're truly cash-strapped or if they can structure a piece of paper that allows them to maintain their valuation but still fund some type of strategic activity (i.e. M&A).
If you start adding market sizing, cost of growth, competition, and timeline for liquidity, most transactions just straight up don't make sense, which is why they aren't getting done.
That being said, starting to see some signs of life. Some of the best in-class businesses that are back to putting up good numbers have quietly started exploring potential raises across a range of structures.
Rates will certainly help this dynamic, but the public markets will serve as the primary indicator. When you see multiples accrete, probably a good sign that traditional equity deals will follow suit in the space.
H/t @jaminball for the graphic
40,76K
Growth multiples starting to blow out as the market goes full risk on. High growth bucket up 2x from 10.3x NTM Rev to 21.4x in a year. Not quite ‘21 levels but we’re 2/3s of the way there
1.7.2024
OO (#25): The primary reason traditional equity deals are struggling to get done in crypto is .... MULTIPLES.
A good way to get a baseline for pricing is by looking at median SAAS NTM revenue multiples in tradfi:
- High Growth (>27% y/y growth): 10.3x
- Medium Growth (15% - 27%): 7.6x
- Low Growth (0% - 15%): 3.8x
Example: if you have a business that is anticipated to grow 30% next year and generate $130m of revenue, it would be priced at an EV of ~$1.3b. That's it.
Despite having ~80% gross margins. That same business in '21, would have been priced at >$4.5b, and if growth was well north of 30%, it could have easily commanded >$6b.
Today, it is really hard to get your head around the math for these transactions when you incorporate what the public markets or a strategic will pay for the same business. Further, when you bake in the previous round valuation, cap-table, employee and founder equity, most founders don't want to deal with the restructuring of a down round. In turn they only raise when they're truly cash-strapped or if they can structure a piece of paper that allows them to maintain their valuation but still fund some type of strategic activity (i.e. M&A).
If you start adding market sizing, cost of growth, competition, and timeline for liquidity, most transactions just straight up don't make sense, which is why they aren't getting done.
That being said, starting to see some signs of life. Some of the best in-class businesses that are back to putting up good numbers have quietly started exploring potential raises across a range of structures.
Rates will certainly help this dynamic, but the public markets will serve as the primary indicator. When you see multiples accrete, probably a good sign that traditional equity deals will follow suit in the space.
H/t @jaminball for the graphic
178
Biggest unlock for crypto got buried with today’s announcements. US retirement assets sit at $43T, with $9T in 401ks
With Trump opening the flooodgates, if crypto sees just a 1% allocation from 401ks, that’s ~$90B in fresh inflows
The retirement market is enormous, and the real party is about to get started
18.7. klo 05.04
BREAKING: Trump to open US retirement market to crypto investments, per FT.
The US president is expected to sign an executive order that would open up 401k plans to alternative investments beyond traditional stocks and bonds.
24,39K
William Demchak, CEO of PNC ($77b bank), dropping that he expects a US bank consortium stablecoin post the Genius Act during earnings tonight
Heard similar sentiment yesterday (see QT below) at Citi's earnings w/ a multi-bank sponsor stable. Really sounds like we have serious stablecoin chatter going down behind the scenes across US financial institutions
16.7. klo 08.32
TLDR - Citi's Stablecoin + Crypto Plans from earnings:
- Citi clients want real-time multi-asset, multi-bank, x-border solution w/ compliance, accounting all solved
- Citi Looking at 4 areas: ramps (fiat <-> crypto), reserve management, own stablecoin + tokenized deposits
- Citi Token Services: will let client move assets from NY -> HK -> UK instantly w/out incremental tx costs of going fiat to digital and back. Will also provide financing and liquidity
- On a Zelle style bank consortium w/ BoA + JPM: need Genius Act for regulatory clarity
8,61K
TLDR - Citi's Stablecoin + Crypto Plans from earnings:
- Citi clients want real-time multi-asset, multi-bank, x-border solution w/ compliance, accounting all solved
- Citi Looking at 4 areas: ramps (fiat <-> crypto), reserve management, own stablecoin + tokenized deposits
- Citi Token Services: will let client move assets from NY -> HK -> UK instantly w/out incremental tx costs of going fiat to digital and back. Will also provide financing and liquidity
- On a Zelle style bank consortium w/ BoA + JPM: need Genius Act for regulatory clarity
15.7. klo 23.55
CITI'S CEO: CITIGROUP IS EXPLORING ISSUING A STABLECOIN
63,51K
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