Vladislav Sopov
Experienced cryptocurrency entrepreneur Kane Warwick analyzes the concept of “points” in early-stage crypto protocols and acknowledges the crucial role of meta-narratives at this stage.
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A prominent blockchain entrepreneur and investor shares his thoughts on capital formation incentives in crypto, the natural competition between VCs and retail investors, evergreen metrics for seed round participants, and tough times in early stage funding. I am summarizing.
Kane Warwick admits teams are constrained by dominant meta
In 2024, even the most successful Web 3.0 teams looking for new funding will be constrained by the current meta if they want to raise a large round, said Warwick on X, who has 123,000 followers. Shared in the latest thread.
From a seed investor perspective, the project's traction signals have remained the same in terms of user base, potential customers, and airdrop farmers. VCs are looking for products with TVL growth, large numbers of followers on X and Telegram, etc.
That said, investors still use these primitive metrics of social engagement to calculate the potential number of retail token buyers.
So introducing points, pioneered by Blast, the much-hyped OP Stack L2, became a natural way for the team to prepare for funding.
So when the point meta comes along, everyone has to do it. This is because the competition in the early stages of raising is fierce.If you can encourage activity and her TVL at zero cost, you can raise more money
Warwick acknowledged that FDV's completed seed rounds of $10 million to $50 million were “pure coping mechanisms” for investors, and that almost all of them ended up being profitable.
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He personally recommends going public with a retail token at a valuation of $10 million to $1 billion after three rounds of private/seed funding with VCs.
Breaking through the current anti-retail meta will require facing the wrath of venture capitalists and regulators. First-time founders are not going to do this. The incentives are too strong. Launch a low float token after 1-3 private rounds and get 8-9 figs or even he gets 10 figs of network on paper.Or try changing the meta and maybe getting rekt
He also acknowledged the role of a retrospective airdrop from 2021 to 2023 as a way to introduce the token to the majority of retail owners.
As previously covered by U.Today, Warwick posited that meme coin euphoria is a natural catalyst for Ethereum's L2 adoption.
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Vladislav Sopov
