PEOPLE

Daily Coin Research: There is no true Tier 1 in the cryptocurrency industry, introducing three VCs with unique perspectives.

share
Daily Coin Research: There is no true Tier 1 in the cryptocurrency industry, introducing three VCs with unique perspectives.

The media outlet "Daily Coin Research" founder Alvin tweeted a discussion on "Crypto VCs" on CryptoWesearch, stating that there isn't a true Tier 1 in the crypto industry, whether it be VCs, exchanges, or KOLs. This means that there isn't a real top-tier or celebrity concept, and if one doesn't keep up with the market, they can easily disappear. Alvin introduced three insightful VCs: Variant Fund, 1kx, and CoinFund.

Related information: Compilation of 300 global crypto VC funding for 2023

Alvin from Daily Coin Research: The Changing Landscape of Crypto VCs

Crypto venture capital firms have always been the compass for cryptocurrency investors, serving as indicators of potential investment targets.

However, Alvin, the founder of Daily Coin Research, believes that this year, speculative investors in the cryptocurrency space have become more discerning about various fundraising traps, such as

  • High opening FDV fully diluted value
  • High team token holding ratio
  • Low airdrop ratio, Token Generation Event (TGE) token generation events, such as ICO/IEO releasing a small percentage of tokens

These factors have led to a diminishing growth space for tokens supported by crypto VCs. Conversely, on-chain small coins with fair launches and higher token distribution have become favorites among seasoned DeFi players known as "Degen."

The Changing Landscape of Crypto VCs: Where are the Promising VCs?

For experienced investors, trust in the investment targets of crypto VCs is diminishing. What useful information can crypto VCs still provide to investors? Abundant research resources, connections, leading the next wave of narratives, or just having money?

Alvin suggests that understanding the characteristics and investment habits of various VCs through these elements can help you find "promising" VCs.

Introducing Daily Coin Research: Three Unique VCs

Variant Fund

Variant Fund, according to Alvin, made early investments in Uniswap and Polygon, and in recent years, also in Canto Chain, which was once popular in the Degen community. Recent investments include Scroll and Lens Protocol, all considered top choices.

Their research articles cover various trends such as DePin decentralized hardware infrastructure, music NFTs, and FriendTech. Founders Li Jin and Jesse Walden actively explore new applications, both coming from prominent VC firm a16z with backgrounds in traditional finance and entrepreneurship.

Coinbase CEO shares ten blockchain application trends

1kx

Another VC mentioned by Alvin is 1kx, one of the institutions with the highest investment volume in the past six months according to research firm Messari.

Alvin recommends 1kx for its diverse portfolio, including RAAS service provider Caldera rollup as a service, NFT project Pudgy Penguins, upcoming cross-chain protocol Connext Network, and Web3 community service platform jokerace, which demonstrates a high level of market narrative mastery.

Alvin states that 1kx focuses on ZK, various foundational services, and on-chain identity, making it worth paying more attention to. Co-founders Christopher and Lasse Clausen have years of app development experience and venture capital backgrounds, which are also highlights.

CoinFund

CoinFund, mentioned by Alvin, is one of the earliest established among the three recommended VCs in 2015. This year, its notable investments include privacy chain Manta Network, on-chain data company Arkham, machine learning gensyn, and service provider bringing AI into smart contracts Giza.

CoinFund also shares insights and plans from the past to the future regarding investment models. From 2023 to 2025, it will refocus on post-FTX era infrastructure, emphasizing end-to-end decentralized scalability, interoperability, and developer tools roadmap, with a focus on trust, security, and user experience.

Co-founder Jake Brukhman has two years of product management experience at Amazon, while another co-founder, David Pakman, was one of the founders of Apple Music and has had many successful investments in the cryptocurrency space.

How to Uncover More Valuable Information?

Alvin, the founder of Daily Coin Research, mentioned that these VCs are generous in sharing their research and perspectives, which has been beneficial to him. He also shared that he found this information through the cryptocurrency project database RootDataLabs, talent platforms like LinkedIn, and Twitter X.com.