Making Markets

Today we are trying something a little different. We’re going to do a quarterly recap. Similar to investor letters that are so common in traditional finance, we thought it would be fun to cover the most interesting topics across Web3 that happened this past quarter by gathering questions from our listeners. Enjoy! For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- Web3 Breakdowns is a property of Colossus, LLC. For more episodes of Web3 Breakdowns, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @Web3Breakdowns | @ericgoldenx | @patrick_oshag  Show Notes[00:01:39] - [First question] - Eric’s takeaways from crypto’s performance in Q1 writ large[00:04:26] - Was anything proven out in Bitcoin’s performance relative to Gold[00:07:48] - Thoughts on the performance of BTC compared to ETH[00:10:27] - Other benchmark assets in crypto used to track performance of the asset class[00:12:39] - Evaluating the performance of NFTs and the impact of Ethereum’s price on NFTs[00:16:32] - Thoughts on the trend of user adoption in Q12022 compared to Q12021[00:21:27] - Where we stand in the geopolitical narrative and it has played out in real time[00:27:00] - Development and politics in emerging markets around adopting cryptocurrencies[00:30:42] - Thoughts on the executive order in the US in regards to regulation[00:32:29] - The catalyst of talent drain and how policy can negatively impact US innovation[00:34:38] - Where the majority of capital coming into the market ends up being allocated [00:38:48] - The rise of play-to-earn in 2021 and the environment we’re in today in 2022[00:41:24] - Metaverse’s hype cycle, capital allocation, and potential prospects[00:44:30] - Ways that the Metaverse will crossover into the physical world Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Eric Golden and my guest today is Justin Waldron, co-founder and President of Playco. Justin is a pioneer of the social gaming industry, having co-founded Zynga at age 19 and then Playco, the world’s first instant gaming company. Our conversation explores the industry’s evolution from web to mobile to blockchain, the unique opportunities crypto offers game creators like Justin, and how Playco’s Web3 project, Storyverse, is creating a game engine for communities. Please enjoy my conversation with Justin Waldron. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- Web3 Breakdowns is a property of Colossus, LLC. For more episodes of Web3 Breakdowns, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @Web3Breakdowns | @ericgoldenx | @patrick_oshag  Show Notes[00:02:15] - [First question] - The story of pizza and how he thinks about game design like restaurants [00:06:07] - Why bringing people together with games feels better than simply being together[00:07:40] - Overview of instant gaming and how people can find creativity and joy from it[00:10:34] - How Farmville’s onboarding process brought in so many new players [00:13:59] - How much of game design is planned out versus being accidental [00:18:08] - Why the industry left web-based gaming and went into the mobile and app space[00:24:55] - His thoughts on seeing the industry shift away from his vision[00:27:55] - How he first approached crypto and Web3 game development [00:33:29] - Was he always sure of the direction he wanted to go in Web3[00:38:59] - Where the idea of Storyverse came from and what the vision for it is [00:41:43] - How Storyverse decreases the friction with NFTs and brings them to life[00:45:35] - The ways that their tokens can interact and communicate with stories [00:49:24] - How Storyverse’s IP differs across communities and problems that can arise [00:56:17] - What he’s most excited to see built over the next six months and the next six years Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Eric Golden and my guest today is serial entrepreneur Gary Vaynerchuk, better known as GaryVee. This conversation covers why Gary has so much conviction in blockchain technology, why he sees established companies willing to embrace NFTs, and his vision for how this new medium allows him to build and distribute value today, and far into the future. Please enjoy my conversation with GaryVee. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. -----Web3 Breakdowns is a property of Colossus, LLC. For more episodes of Web3 Breakdowns, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @Web3Breakdowns | @ericgoldenx | @patrick_oshag  Show Notes[00:02:06] - [First question] - Why NFTs are the future and why they’re so powerful[00:04:41] - How his long-term thinking has both helped and hurt his efforts in this space[00:06:24] - Being open about what he’s buying and how a public wallet changes that dynamic[00:09:21] - Whether one can participate in the NFT space without being all in[00:10:47] - How big brands are interacting with NFTs and their adoption cycle[00:12:10] - Whether or not they understand the longevity of their actions and decisions[00:13:46] - Thoughts on separating his public and private life online[00:16:44] - Where his drive and desire to entertain comes from[00:18:47] - How he lets people into his world and betting on people who are “one of us”[00:22:27] - Ways smart contracts will change the future of long term bets on assets[00:25:54] - Things that seem bizarre today that will appear obvious in hindsight[00:28:10] - What he’s most excited to see built in the next six months and six years Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Eric Golden and my guest today is Jasmine Maietta, founder of round21. Our conversation is a masterclass in brand building and collaboration. We cover how round21 was able to collaborate with large brands so early, how she builds a digital-physical model around goods, and why it’s so important to speak the same language as your partner, whether they would be a world class athlete or celebrity. Please enjoy this episode with Jasmine. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- Web3 Breakdowns is a property of Colossus, LLC. For more episodes of Web3 Breakdowns, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @Web3Breakdowns | @ericgoldenx | @patrick_oshag  Show Notes[00:02:09] - [First question] - How round21 ended up collaborating with Budweiser, NFLPA, and Bored Ape Yacht Club[00:04:18] - Overview of round21, their mission, products, and what they do with big brands[00:05:27] - How a traditional athlete sponsorship works today[00:07:43] - Why celebrities entering the NFT space sometimes don’t do as well as they think they will[00:09:45] - The rumor of round21 appearing on Shark Tank and if it’s true[00:11:35] - How interested are athletes in interacting with round21 and what excites them[00:13:21] - If she considers round21 to be a Web2, Web3 or bridge company[00:14:48] - The physical and digital divide of collectibles as it pertains to the customer[00:17:44] - The major differences between the NFL roadmap and the NBA roadmap[00:18:53] - Her insight on pulling off a huge event and how much work and preparation it takes[00:21:28] - Proof of Attendance and how she sees it impacting the world of sports[00:23:05] - What a POAP is and what attendees received for Proof of Moment[00:24:50] - The challenges of running limited run manufacturing and the customer acquisition cycle of a low frequency purchase [00:28:08] - Balancing round21’s brand versus the artist’s or athlete’s brands[00:29:42] - How they work with an artist or athlete when they are unsure of what they want[00:33:43] - Her take on what has been working well in the NFT space and what isn’t[00:35:44] - Advice for keeping brand identity intact with multiple representatives[00:38:22] - Her experience working with big brands over her career and how it’s shaped her learning[00:39:50] - How she would explain the NFT space to a big brand and what their biggest push backs are[00:41:53] - A quick sketch of how she ended up where she is today[00:44:09] - What she is most excited to see built over the next 6 months and the next 6 years Learn more about your ad choices. Visit megaphone.fm/adchoices

I’m Eric Golden and my guest today is Matt Ballensweig, Co-Head of Trading and Lending at Genesis where he’s responsible for trading, origination and execution of all digital assets and loans. I got connected with Matt when I started trying to find out how investors are able to generate double-digit yields by lending out their crypto assets. Beyond answering this question, we also discuss how traditional prime brokerage works and the unique set of challenges of building similar infrastructure in crypto. Please enjoy this discussion with Matt Ballensweig. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- Web3 Breakdowns is a property of Colossus, LLC. For more episodes of Web3 Breakdowns, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @Web3Breakdowns | @ericgoldenx | @patrick_oshag  Show Notes[00:02:13] - [First question] - Why does a massive difference in interest rates exist between crypto and money market accounts[00:05:12] - The average spread market makers earn on crypto assets[00:08:22] - The trade of going long btc spot, shorting the near term future and the type of interest rate or yield the trade creates[00:12:34] - Explaining what it means to have a delta view and to be delta long and delta neutral [00:12:50] - Genesis’ loan structure and framework[00:16:02] - How collateralized lending can be a zero loss business [00:18:36] - Percentage differences between collateralized and uncollateralized loans and their uncollateralized loan process[00:22:25] - Types of uncollateralized parties and how they are using their debt [00:24:22] - Has Genesis seen defaults and low masses on the uncollateralized business[00:25:18] - Overview of Genesis, their divisions, and how they make their money beyond lending[00:27:50] - His view on a healthy market structure and how short sellers help the market function[00:29:32] - What traditional prime brokers do and how much of Genesis is modeled off of them[00:31:44] - Why the crypto and TradFi worlds can’t simplistically blend[00:34:22] - Will Genesis ever bridge the prime brokerage business into traditional assets[00:35:28] - DCG’s founding, what it is, and Genesis’ role in the DCG empire[00:38:06] - How much interplay Genesis has with other DCG companies[00:43:28] - Does he feel like he works for Genesis or for DCG [00:44:46] - How integral Genesis is to platforms like BlockFi, Gemini and Celsius[00:48:49] - How systems are tested when there are drawdowns and how counterparts interact with each other[00:52:12] - Knock-on effects that could lead to a ‘Lehman style event’ given crypto’s systemic risk nature[00:55:18] - How Genesis participates in the DeFi markets and their biggest gating issues[00:58:26] - Views on centralized and decentralized exchanges [01:00:35] - His desire to share data and the PIF protocol[01:02:42] - Why NFT lending makes sense given its different risk profile from crypto[01:05:08] - What he’s most excited about building over the next 6 months and the next 6 years Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Eric Golden and my guest today is Tom Jessop. As President of Fidelity Digital Assets, Tom leads Fidelity’s effort to build a crypto custody solution for institutions. During our conversation, we discuss the use of custodians for blockchain assets, trends in client demand, and Tom’s perspective as an incumbent attempting to build crypto-native capabilities. Please enjoy this conversation with Tom Jessop. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- Web3 Breakdowns is a property of Colossus, LLC. For more episodes of Web3 Breakdowns, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @Web3Breakdowns | @ericgoldenx | @patrick_oshag  Show Notes[00:02:06] - [First question] - Why would anyone need a custodian for digital assets[00:03:39] - Top reasons that clients choose Fidelity to manage their own custody[00:05:03] - Customer experience handing over their crypto assets to Fidelity [00:08:40] - Building a business managing digital and physical risk[00:10:01] - Thoughts on the interplay between selecting a custodian and what their execution service options are[00:12:02] - Why there’s such a lack of segregation compared to traditional markets[00:14:05] - The type of capital you’d need to pre-fund in order to trade multiple markets [00:15:07] - Instant trade settlements and what it’s like reconciling so many moving pieces in the cryptosphere[00:16:39] - How big Fidelity Digital is today and the growth they’re seeing [00:18:17] - How many different assets they currently custody today[00:19:12] - Thoughts on what assets are appropriate to custody for their clients[00:21:00] - What happens to the custodian and client if a cryptocurrency becomes recognized as a security on a regulatory level[00:22:13] - How much of his time is spent dealing with the ever changing regulatory landscape and where his focus is as of late[00:24:46] - His feelings on why the US seems to approach crypto regulation differently than other countries [00:27:47] - Are we slowly getting to a better place with crypto regulators in the US?[00:28:49] - Defending cryptocurrencies to regulators against waves of negative press[00:30:42] - Moving from traditional finance to the crypto market and how to innovate in such a rapidly evolving industry[00:32:43] - The pros and cons of being a crypto custody startup[00:34:04] - How they acquire clients and market Fidelity[00:34:44] - Capital-backed assets and how relevant insurance is when choosing a custodian[00:36:24] - What he’s been seeing on the product development side of this space[00:38:04] - Thoughts on third-party developers building on top of Fidelity[00:39:47] - The different types of clients Fidelity has and the competitive landscape [00:41:14] - Whether or not there’s a push from clients to become more involved in DeFi[00:42:49] - The biggest issues that Fidelity has to overcome to become a custodian for the 10 biggest crypto assets today [00:43:15] - What a crypto custodian will look like a decade from now and aggregated asset management[00:47:05] - What he’s most excited to see built over the next six months and six years  Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Eric Golden and my guest today is Jenkins, creator of Jenkins the Valet. For those unfamiliar, Jenkins was one of the first creators to explore the full potential of utilizing the IP granted by the ownership of an NFT. In this conversation, we explore how Jenkins developed the story around the digital character, how this character evolved into its own being, and how that initial act of storytelling opened up an impressive amount of business opportunities. Please enjoy my conversation with Jenkins. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- Web3 Breakdowns is a property of Colossus, LLC. For more episodes of Web3 Breakdowns, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @Web3Breakdowns | @ericgoldenx | @patrick_oshag  Show Notes[00:02:10] - [First question] - His opinion on the power and drawbacks of pseudonymity [00:03:59] - The doxxing of the founders of the Bored Ape Yacht Club[00:05:27] - How separate his avatar/NFT life is from his personal one [00:08:12] - Buying Jenkins from the secondary market and the first story he wrote[00:11:41] - Was Jenkins a business from the beginning or did it happen naturally?[00:15:34] - What Jenkins the Valet is and its role in the larger scope of this project [00:19:17] - The writer room structure and NFTs for participating in it[00:22:16] - Pros and cons of IP ownership and licensing for creating content[00:25:38] - Economic structure of their NFTs and participating without an avatar[00:28:25] - Believing in the ownership of commercial rights in the community[00:30:28] - How comfortable he is with living both on and off chain[00:34:17] - Signing with a professional talent agency and trying to explain the project to traditional publishing outlets[00:38:12] - Were there multiple authors wanting to get in before Neil Strauss?[00:39:51] - Whether or not the Bored Ape Yacht Club founders reached out as this project continued to build momentum [00:41:50] - His thoughts on where and how value accrues[00:42:28] - How much money was raised via NFT sales and outside investments[00:46:04] - The level of participation rates in community decisions for the writers room[00:47:31] - Which group has showcased the most interest to be featured in the second book[00:48:34] - Who is Mutant Jenkins and who runs the account[00:50:11] - What he’s most excited to see built over the next six months and six years Learn more about your ad choices. Visit megaphone.fm/adchoices

My guest today is Diogo Monica, co-founder and President of Anchorage Digital. Diogo started Anchorage in 2017 to meet the growing institutional need to custody and use crypto assets. The business has since grown into a full-service financial platform for institutions, allowing them to securely participate in web3. Our discussion breaks down Anchorage’s business, explores what great digital security looks like, and reveals what new behaviors web3 is unlocking for traditional institutions. Please enjoy this breakdown of Anchorage Digital. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- Web3 Breakdowns is a property of Colossus, LLC. For more episodes of Web3 Breakdowns, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @Web3Breakdowns | @ericgoldenx | @patrick_oshag  Show Notes[00:02:10] - [First question] - Why he got into the crypto space and the path that led him to founding Anchorage [00:05:23] - An overview of digital security and where people should spend their time learning about it[00:08:46] - A future of perfect authentication and data protection being so core to this space[00:12:59] - How custody should be considered in the modern world and with digital assets[00:18:29] - What it means to be a great qualified institutional custodian[00:24:47] - The business and unit economics of a custody driven company[00:27:37] - What it was like working with their first big institutional client[00:30:22] - Speed as a component of digital security and its implications writ large  [00:35:21] - How they’re differentiated from their competitors by expanding beyond custody[00:39:16] - Different challenges between securing NFTs versus currencies and tokens[00:42:13] - New behaviors he finds most interesting about institutions due to Anchorage[00:48:16] - Breakdown of what players and services constitute Anchorage’s clients today[00:50:54] - The best case scenario for the future of the business[00:53:07] - What would worry him about Anchorage’s development [00:55:25] - Opportunities he finds most interesting that haven't materialized yet [00:57:16] - Will we need a public blockchain to create the infrastructure needed to bring the world to a more crypto-fluid place[00:59:37] - The kindest thing anyone has ever done for him Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Eric Golden, and my guest today is Micah Johnson the creator and artist behind Aku Dreams. Micah’s story as a pro baseball player turned famed NFT artist and Aku’s story, are both unique and inspiring. We dive into how Micahs childhood inspired the story behind Aku, what he has learned from his success, and tips for artists in the space. Please enjoy my conversation with Micah.For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- Web3 Breakdowns is a property of Colossus, LLC. For more episodes of Web3 Breakdowns, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @Web3Breakdowns | @ericgoldenx | @patrick_oshag  Show Notes[00:02:04] - [First question] - His backstory and becoming a professional baseball player[00:03:34] - Who inspired him to pursue a professional career in baseball[00:04:38] - Whether he had any moments of doubt in his pursuit of the big league[00:05:16] - Where he found time for painting outside of baseball[00:06:17] - The origin story of Aku and stepping into the NFT space [00:08:17] - Making the transition from physical to digital art[00:09:27] - The power of his message and the reach it’s had[00:10:42] - Symbolism of the astronaut mask and where the name Aku came from  [00:12:02] - How much is planned out in advance when releasing art in chapters[00:13:59] - The size of the team when they started and where it is today[00:15:02] - How much revenue they’ve generated and IP wealth[00:16:12] - The Aku IP structure and how it works[00:16:49] - What’s worked for him when it comes to community building[00:18:02] - How different levels of ownership contribute and govern the project[00:19:10] - Go-to-market products and how community impacts the creative vision[00:20:37] - Adding value to early adopters and believers in the project[00:22:01] - Worries about a lack of community engagement and constantly delivering[00:23:12] - NFTs as a tool in native Web3 companies and how the business model works[00:24:06] - Receiving movie offers so early and community driven IP[00:25:42] - How he’s learned so many skills over his lifetime and thoughts on training [00:26:34] - Trying to remove money as a target and what success looks like for Aku[00:27:21] - Lessons that can be shared with new creators in the NFT space [00:28:14] - Projects that have inspired him that cross over from web3 to media [00:28:55] - Examples where he’s overridden community decisions and why[00:29:40] - Surprising ways Aku has impacted the lives of different people [00:30:56] - Intimate details and Aku as a diary of his lived experience[00:32:45] - What he’s most excited to build over the next six months and six years   Learn more about your ad choices. Visit megaphone.fm/adchoices

My guest today is Axie Infinity co-founder, Jeff "Jiho" Zirlin. The Colossus team covered the Axie origin story through Business Breakdowns in September of last year but we felt it was an ideal time to revisit the "play-to-earn" pioneer. Jiho and I cover his involvement with the Axie ecosystem including gameplay, the economic model, and creating a sidechain. Please enjoy my conversation with Jiho. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- Web3 Breakdowns is a property of Colossus, LLC. For more episodes of Web3 Breakdowns, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @Web3Breakdowns | @ericgoldenx | @patrick_oshag  Show Notes[00:02:02] - [First question] - His history and what lead him to work on Axie Infinity[00:05:26] - The arc of gaming and its evolution leading up to today[00:07:12] - A high-level overview of Axie Infinity and how you play it[00:08:21] - The size, scope, and user base of Axie today[00:09:10] - Thoughts on onboarding and educating their player base [00:10:53] - What he thought Axie could become in the early days[00:12:42] - Difficulties of creating a sustainable game with an economic structure[00:15:26] - Why there was such huge adoption in the Philippines [00:16:53] - The guild’s scholarship model and endorsing Web3 literacy[00:18:06] - Whether or not the game has always been designed to be a window into crypto[00:19:41] - Thoughts on how Axie could impact the real world [00:21:37] - Why build their own chain, wallet, and ecosystem and how he’d build it today[00:23:46] - Challenges scaling their business with their own unique ecosystem[00:25:46] - Internal politics and user mentality around Axie and Sky Mavis[00:26:46] - Managing and aligning user expectations and how many employees they have[00:29:51] - Deciding which levers to pull on and which to retire for the sake of the project[00:32:45] - Understanding how changes made positively impact Axie[00:33:31] - Inflation and deflation cycles of in-game currency and native tokens[00:34:24] - Changing player dynamics and public response to them[00:35:38] - How the structure of the game rewards the builders and what having an Axie unlocks for players[00:37:19] - Future developments, the builder program, and plans for the future[00:39:01] - Why play-to-earn is different than play-and-earn gaming[00:40:55] - How Ronin works and unique characteristics compared to other L2 chains[00:49:55] - When we may see another game developer build on Ronin[00:50:36] - What he’s most excited to see built over the next six months and six years Learn more about your ad choices. Visit megaphone.fm/adchoices