Cryptocurrencies have come a long way to become a trillion-dollar market in a short period. Part of the growth over the past few years has been inspired by both institutional and retail investors embracing the market. Many see crypto as the future of finance, and it’s a sentiment that resonates with many visionaries judging by the innovations coming to the space via DeFi. CNBC sat down with Jared Madfes, a venture capitalist at Tribe Capital Partner, to get his ideas on the rapidly growing cryptocurrency space.
His firm invested over $30 billion in crypto startups last year, helping quadruple the amount raised by various crypto projects over the previous period. According to Madfes, this shows a change in attitude towards crypto by VCs who are coming around the fact that crypto truly represents a paradigm shift akin to the internet and Web 1.0 and 2.0. Therefore, the flow of capital is because these individuals acknowledge that crypto matters, and the ROI is incredible for those that get in early.
The return on investment of crypto assets is unmatched compared to traditional assets, and it’s the biggest pull for investors in the space. Even those who don’t have millions or billions to put in various projects can trade the highly volatile assets by using small capital and grow their accounts considerably to a point they get decent capital to put on desired projects. Trading derivative products attached to crypto-assets on platforms such as NAGA is one quick way to get the much-desired capital. And you don’t have to be an expert to enjoy success since you can employ the services of Naga autocopy and imitate the strategies of experts and enjoy their success.
Not All Crypto Assets Are made Equal
Madfes is asked if the current crypto ecosystem feels frothy, just like the late 90s with internet stocks due to the capital inflows, a lot of volatility, talent poaching, and so on? He believes whenever there is a massive accrue of value, there will be some excitement. However, not all crypto assets are created equal. As a firm, they try to focus on those with more long-term value. He goes on to add that one thing “people forget about the first dot.com era is these narratives continue to compound over the next 20 years and still compound today. And the top crypto companies and protocols will likely have the same effect.”
Therefore, if not all cryptos are created equal, the interviewer seeks to determine which digital assets Madfes is most bullish on in 2022. He is hesitant to mention any particular project; however, his firm is bullish on all things decentralized finance since they believe that the future of national institutions “will be front ends that operate on global decentralized backends which of course are built on blockchains.”
That said, he adds that Tribe Capital Partner is betting big on infrastructure protocols that will help make the “metaverse” happen. Even though many companies have jumped on the buzzword to market themselves as leading the new frontier, much work needs to be done to achieve an ideal metaverse reality. A lot of infrastructure needs to be built to onboard the thousands and millions of users expected to join all these systems that will come. Additionally, they are pretty excited about the maturation of on-chain derivatives products. Also, they are pretty excited about all the work taking place across various layer one protocols such as Ethereum, Terra, Avalanche, Solana, etc.
The crypto market has started 2022 slowly compared to 2021, when it would rally to an all-time high for most tokens. After rallying over 15 months, many experts believe a significant correction is on the cards before the digital assets shift gears to the next all-time high. Traders can look to take advantage of the imminent slump by joining derivative platforms such as NAGA where they get to profit regardless of the market rising or falling.