Venture Capital Partner Adam Cochran's 10,000-word encryption paper Chapter Four: Multi-Year Valuation Targets

Cinneamhain Ventures partner Adam Cochran has released his 2022 crypto thesis and his favorite projects across various sectors, categorizing them into seven groups. This article covers the fourth chapter: Long-term value targets.

Original link: https://twitter.com/adamscochran/status/1476652328736342023

• 1. God Tier: ETH, YFI, CVX, KP3R
• 2. Outperforming Market/Catalysts: FLX, CRV, ALCX, BAL, ZRX, FXS, RBN
• 3. Outperforming Market + Top Farms: FTM, AVAX, ZEC, Gearbox, Euler Finance
• 4. Value-Driven/Long-term Outperformance: MKR, HNT, LDO, COMP, RARE, SNX, SYN, GNO
• 5. Medium Risk, Clear Potential: PERP, FST, CAP, MCB, DPX, HND, API3, ANGLE
• 6. High Risk, 50x or Zero: GEL, NFTX, RAMP, THALES, PICKLE, BABL, PREMIA, PENDLE
• 7. Potential: Cowswap, Element Finance, Opyn, Cozy Finance, Pods, Volumex

For assets in the fourth chapter, Cochran believes that 2022 is likely to be their breakout year, and even if not this year, they are expected to outperform many projects in the long run.

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Maker MKR

• Huge cash flow.
• DAI will not disappear.
• Experienced community, led multiple iterations, eventually entered real-world assets.

As Maker expands its business to institutional and bank-dominated markets, where traditional finance cannot offer the high rates of the crypto space, Maker will continue to grow steadily.

Helium HNT

• The only feasible physical network node, compliant with the OSI network model architecture.
• Amazing global node coverage.

Telecom companies are still exploring the 5G field, and Helium's approach to 5G and the Internet of Things is impressive. Cochran acknowledges that Helium may be a bubble, but with long-term competitive advantages, he will buy into HNT with other profits.

Lido DAO Token LDO

• Holding LDO is equivalent to holding an index of L1 and L2 solutions.
• Capturing 10% value from all L1/L2 projects is very worthwhile.
• A few projects that do not need to worry about FDV.

Lido DAO may start to introduce staking mechanisms for non-public chain projects in the future. Cochran believes that holding LDO means there is no need to worry about missing the next rising public chain, and it is worth holding some.

Compound COMP

• Exploring multi-chain applications.
• Compared to LUNA.

Cochran uses LUNA's performance last year as a comparison. With its own blockchain's strong advantages and flexibility, COMP will become an on-chain base asset. Coupled with its oversold price, he is optimistic about its future trends.

SuperRare RARE

• Sotheby's and Christie's are both aware of the NFT and digital art fields.

He predicts that these two traditional auction houses will acquire existing NFT auction platforms, speculating that it may be SuperRare RARE. If not a direct acquisition, they will also attempt to become major shareholders, and this is an unavoidable scenario.

Synthetix SNX

• Top-tier protocol, cross-chain development team.
• Severely oversold.

In the past year, there has been a significant increase in demand for Synthetix, with trials of five new products based on sUSD underway. Synthetix also has some integration with FixedForex, and thus, KP3R also helps drive Synthetix adoption. There will be many opportunities for growth this year.

Synapse SYN

Inter-chain bridges are crucial infrastructure in 2022, and whether the protocol has stable income is also important. Users are willing to pay for Synapse because it is the best inter-chain bridge between L1 and L2.

If it can connect to more chains in the future, Synapse will steadily consolidate its dominant position.

Gnosis GNO

Gnosis will become the only protocol that gains widespread adoption and can withstand MEV attacks. After merging with xDAI, all projects will adopt Gnosis' multi-signature wallet.