Reminiscences of a Crypto Degen Trader with DCF God | EP 33
Nov 28, 2023
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Experienced crypto degen trader, DCF God, discusses the degen world, finding projects, audit companies, and the current market. They also reflect on the importance of community involvement and explore lesser-known crypto projects and drama between Curve and VCs.
Historical cycles show that the crypto market always bounces back, with Bitcoin halving and Ethereum expected to drive the next bull run.
Investing in founders who are dedicated to their projects increases the likelihood of success, while understanding the nuances of governance in DeFi projects is crucial to navigating the space effectively.
Deep dives
The market comeback is inevitable
Looking at the historical cycles in crypto, it is clear that the market always bounces back. Despite multiple periods of decline, crypto has consistently regained momentum. The current narrative around the Bitcoin halving is expected to contribute to another bull run, followed by Ethereum gaining traction as a better form of money. While the timing is uncertain, the market's resurgence is anticipated.
Undervalued Opportunities: JPEG and USDR
JPEG and USDR are two projects that are currently undervalued. JPEG, despite facing criticism on Crypto Twitter, offers significant upside potential with treasury value trading below book value. With a trusted team and strong treasury growth, JPEG presents a favorable risk-reward trade. On the other hand, USDR is another undervalued opportunity, trading below the real estate collateral that backs it. With a potential for the team to buy back USDR at a discount, investors have an opportunity to benefit from the gradual increase in collateral value. Both trades offer healthy returns in the current market.
Importance of Founder Dedication
One of the main insights from the podcast episode is the importance of founder dedication. The speaker shares their experience of funding founders in the crypto industry who were not fully committed to their projects. This led to frustration and disappointment as the founders paid themselves high salaries, provided minimal updates, and sometimes even abandoned their projects. The speaker emphasizes the importance of investing in founders whose projects are their life's work and who demonstrate unwavering dedication to their ventures. This ensures a higher likelihood of success and alignment with investors.
Understanding the Nuances of Governance
Another key point discussed in the podcast is the nuances of governance in decentralized finance (DeFi) projects. The speaker highlights how the governance dynamics differ from traditional web 2.0 ventures. In DeFi, projects may pivot or launch new ideas without providing proper returns to investors, which can lead to frustration. The speaker also explores the funding of unconventional or seemingly unnecessary projects within DeFi and the potential risks associated with such expenditures. They highlight the need for careful evaluation of proposed initiatives and a focus on practical and financially viable projects. Overall, the speaker emphasizes the importance of actively participating in governance and being aware of the unique challenges and opportunities in this space.
Imran and Qiao bring on DCF God to talk about all things degen. No BS crypto insight for founders.
Timestamps
(00:00) Intro (00:59) Welcome to Good Game (01:08) Who is DCF God? (02:34) Is there a massive blindspot towards the degen world? (09:11) Welcome DCF God (09:13) DCF God's avatar (12:01) What is the Degen community like and the types of it (14:04) Prisma (15:23) Curve-Convex Flywheel - Why it was a good bet at the time (19:17) Insights on how to find projects and what to look for (24:36) What are the typical audit companies you want to see (27:36) Which reputable founder would you put your trust in? (30:32) The importance of calling out the things that should be called out (40:21) How DCF God funds responded with Aragon (47:17) Insights about the current market (50:19) ETH price target for 2025 (57:21) Things we learned (01:06:13) Final comments
DCF God Twitter - https://x.com/dcfgod
Spotify: https://spoti.fi/3N675w3 Apple Podcast: https://apple.co/3snLsxU Website: https://goodgamepod.xyz Twitter: https://twitter.com/goodgamepodxyz
Web3 Founders: Apply to Alliance: https://alliance.xyz/ Alliance Twitter: https://twitter.com/alliancedao
DISCLAIMER: The views expressed herein are personal to the speaker(s) and do not necessarily reflect the views of any other person or entity. Discussions and answers to questions are intended as generalized, non-personalized information. Nothing herein should be construed or relied upon as investment, legal, tax, or other advice.
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