Multicoin Capital, a thesis-driven crypto fund that invests in tokens reshaping entire sectors of the global economy, recently revealed the pillars of its investment strategy.
As first highlighted at the Spring 2019 Multicoin Summit, Multicoin is currently focused on three major areas of investment: open finance, Web3, and promoting global, state-free money. “We expect these theses to play out over a decade or longer and to generate the vast majority of our returns,” states managing partner Kyle Samani.
By “open finance,” the firm is referring to capital markets becoming more accessible as units of value, including stocks, bonds and real estate, are tokenized (or digitized), which will make them “interoperable, programmable and composable on open ledgers.”
Multicoin also sees the transition to Web3 as a key value driver in the crypto space. This online advancement is built around the idea of empowering consumers to control their own data, which, in turn, flips the status quo on tech giants and other monopolistic entities that currently have complete control over data flow.
“Facilitated by open networks built on free-market assumptions and bounded by cryptography, humans can, for the first time in history, coordinate on a large scale without introducing any trusted intermediaries potentially prone to abusing that trust,” explains Samani in the breakdown. “Now that this is possible, we can revisit all of our preconceived trust assumptions throughout many sectors in the economy, and create incredible amounts of economic value.”
Finally, Multicoin sees the development of state-free money as a key focus for investment. Samani describes this as a “superset” of the “digital gold” concept, which will ultimately bring forth a global state of trust-minimized value exchange.
Some notable investments made previously based on the above focus points include Bakkt, DFINITY, and Tari. Multicoin’s current portfolio also includes LivePeer (LPT), DFINITY (DFT), Keep, Kadena, MobileCoin and Skale.
The full PDF can be read here.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.