The Gwart Show | Bitcoin Tech & Culture Rethinking Token Fundamentals with Felipe Montealegre
Feb 16, 2025
Felipe Montealegre, the CIO of Theia Research, brings his expertise in private equity to the world of crypto investing. He delves into the nuances of traditional valuation methods compared to token metrics, offering insights on identifying quality revenue streams. Discussion includes the importance of defendable moats in crypto, evaluating cash flow for tokens, and the challenges of regulatory environments. Felipe emphasizes building sustainable value in a volatile market, contemplating the balance between investment strategies like buybacks and dividends.
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Fundamentals vs. Greater Fool Theory
- Invest in assets where future cash flows will cover your investment plus cost of capital.
- Most of the crypto industry operates on the greater fool theory.
Market Shift to Fundamentals
- The crypto market is shifting towards fundamentals-based investing due to investor preference and the influx of traditional finance managers.
- Traumatic experiences with narrative-driven investments push people towards safer fundamentals.
Focus on True Fundamentals
- Focus on numbers to predict cash flows and returns, not just to create a compelling narrative.
- Don't rely on metrics like TVL multiples without a clear link to actual returns.