Does Venture Capital Investment Violate the Ethos of Crypto? Sequoia Says No Unchained

Shaun Maguire and Michelle Bailhe, partners at Sequoia, discuss their long term view and thesis about crypto, what do they look for to invest in a crypto project, the takeaways from the blowup of Terra, the insolvency of crypto companies, and much more. Show highlights:

what is Sequoia’s long term view and thesis about the crypto industry

how different our lives will look in 20 years from now due to blockchain technology

how Sequoia had to adapt to invest in this new asset class and what are the similarities and differences with investing in traditional startups

when a product or service on the internet should be offered in a decentralized or centralized way

how Sequoia decides whether to invest in the entity behind a project or in the tokens

whether having venture capitalists involved at all goes against the ethos of decentralization

why Shaun believes that Ethereum proved that decentralization can be achieved even when you start being centralized

whether people underestimate the value that VCs can add to a project

why Shaun believes that Solana is moving towards decentralization

Sequoia’s thesis about privacy in crypto and the potential of zero-knowledge proofs 

how Michelle sees the macroeconomic environment impacting crypto and whether this cycle is different from the previous ones

the importance of product market fit in crypto projects

what crypto projects should be focusing on and the business model they should be pursuing

the main takeaways of the Terra collapse and how it was a major setback for algo stablecoins

how crypto founders should always do the right thing even though there is no clear regulation

whether SBF is the Berkshire Hathaway of crypto today

the lessons to be learned from the potential insolvency of some crypto lenders and investment firms

how demand for blockspace will keep increasing and whether a single blockchain could supply all that space

the future of the metaverse and how it can be defined

Michelle’s mental model for crypto and the phases for achieving worldwide adoption

 
Thank you to our sponsors!
 
Crypto.com: https://crypto.onelink.me/J9Lg/unconfirmedcardearnfeb2021
Beefy Finance: https://beefy.finance/
Ava Labs: https://www.avax.network/

EPISODE LINKS
 
Shaun Maguire: 

Twitter: https://www.twitter.com/shaunmmaguire


Sequoia Profile: https://www.sequoiacap.com/people/shaun-maguire/


 
Michelle: 

Twitter: https://twitter.com/michellebailhe


Sequoia Profile: https://www.sequoiacap.com/people/michelle-bailhe/


Michelle’s investment thesis: https://www.sequoiacap.com/article/ask-not-wen-moon-ask-why-moon/



Bear Market:

Michelle’s Twitter thread: https://twitter.com/michellebailhe/status/1526373378516365312?s=20&t=c7vdmdg2mnQ34rsAGIm0lg


Insolvency of crypto lenders:

Voyager: https://www.coindesk.com/business/2022/06/22/voyager-digital-requests-loan-repayment-from-3ac-considers-issuing-default-notice/


BlockFi: https://decrypt.co/103422/blockfi-secures-250-million-line-of-credit-from-ftx


Celsius: https://www.theblock.co/linked/151522/crypto-lending-firm-celsius-pauses-withdrawals-and-transfers-citing-market-conditions


Celsius possible bankruptcy: https://www.theblock.co/linked/154100/crypto-lender-celsius-hires-more-advisors-ahead-of-possible-bankruptcy-wsj


Previous Unchained Coverage:

 Why Possible Insolvencies by Celsius and 3AC Could Spell Disaster for Crypto: https://unchainedpodcast.com/why-possible-insolvencies-by-celsius-and-3ac-could-spell-disaster-for-crypto/


Cobie and Chris Burniske on How to Navigate a Crypto Bear Market: https://unchainedpodcast.com/cobie-and-chris-burniske-on-how-to-navigate-a-crypto-bear-market-ep-354/



** For more episode links and details visit the Unchained website **
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