SlideShare ist ein Scribd-Unternehmen logo
1 von 27
Downloaden Sie, um offline zu lesen
!1
Some Views on
Cryptocurrencies,
Blockchain & ICO’s
Mark Suster
@msuster
April 2018
The problem with discussions about cryptocurrencies and blockchain is that
people conflate too many issues.
!2
• Will key crypto prices keep going up?
• Will the fed crack down on Bitcoin or ICOs?
• Will cryptocurrencies disrupt governments?
• Will ICOs replace venture capital?
Anti-Authoritarians
• Libertarians
• Emerging Market
Citizens
!3
Disruptive technologies challenge incumbents in good & bad ways. New entrants both innovate
and over-hype. Understanding motives is critical to knowing where markets will likely head.
Incumbents
• Governments
• Banks
• VCs
Disruptors
• Technologists
• Crypto funds
Crypto
!4
I like to think of the topic as three distinct layers that are related but need to be
understood in their own rights. Each is worthy of its own debates. Today I will discuss 1 & 3.
3. ICOs
2. Cryptocurrencies / tokens
1. Blockchain
!5
ICOs
Cryptocurrencies / tokens
Blockchain
!6
Digital assets on the Internet have been freely copied and distributed. This
obviously doesn’t work when it’s money.
Pictures
CDs
Movies
• Napster
• BitTorrent
• Early YouTube
• Flickr
!7
The big idea for Blockchain that excites me is that it can create both provable rights for digital assets, scarcity
that helps defend the value and decentralization that could reduce the control of today’s technology giants.
Images, Art
Money
Music, Video
Distributed, P2P networks verify
ownership with public ledgers
Digital Asset & Ownership Info
Cryptographically sealed hash
of data
SHA-256
!8
But many naive evangelists think that “blockchain” databases & consensus mechanisms are applicable
to every situation. They are less scalable, performant & flexible than other database solutions.
Relational
Object
Flat file, etc
• Scalability issues
• Performance issues
• Governance issues
The benefits of having
less performant
databases must exceed
the obvious technical
costs
Other Database TypesBlockchain Ledgers
!9
Why is “decentralization”a big idea?
IP
TCP
HTTP
HTML
Open protocols beat proprietary
“closed” networks.
“Walled garden”
Internet 1.0 Internet 2.0
Internet Protocols
The majority of the value has been
accrued to a small number of tech giants
who built scale on global, open,
connected networks.
!10
Big Company
Protocol
User
identity
User bank
details
Social graph
(who you know, how
well you know them)
Interest graph
(how they serve
relevant ads)
Reputation
(am I a 5 or a 2 when I
work with people?)
The companies we loved have established a “network effect” that creates lock you in because
through all of your data they are more efficient at serving you than any other startup could be.
!11
If blockchain projects supported by cryptocurrencies are successful, it is possible an Internet 3.0 could
return us to return to a decentralized web where the dominant tech companies have less control.
If services were blockchain
protocols then users could
“port” their information more
easily to new startups. Today’s
tech giants would have less
market power over innovation.
IP
TCP
HTTP
HTML
Identity
Banking
Reputation
Socialgraph
Interestgraph
Internet 3.0
!12
• Google & Apple can charge a 30% tax on apps.
• Apple can decide it doesn’t like fart apps.
• Facebook can decide how to promote news & media.
• Google can display shopping competitors, flight
information, hotel booking and stop referring traffic.
Big Company
As a society we’re starting to see the consequences of this, which could
get worse if power concentrates even further.
!13
Businesses today are typically built by a centralized entity which raised large
volumes of venture capital & then concentrates power and profits.
Example: Dropbox
$ for storage
$M
UsersDropbox
• Raise venture capital
• Invest $$$ in servers to
store your documents
• Recoup money by
charging users fees
!14
If “distributed apps” (DAPPs) are successful it’s possible that new markets and companies
will be created where more network participants can share in the value creation.
Example: Decentralized Dropbox
$ for storage
UsersNetwork
• Provide server space,
processing power, bandwidth
• Collect a currency / token
• Pay a currency / token
!15
ICOs
Cryptocurrencies / tokens
Blockchain
!16
Out of nowhere ICOs captured nearly 6% of total financing of tech
startups in 2017.
ICOs Traditional VC
2017
$3.7Bn
$60Bn
~6% of the market
in just one year
But this may have been
due to an anomaly of the
quick & massive rise of
Bitcoin prices.
If ICOs continue to be
successful, my guess is
they will capture 5-15%
of the total funding
market.
Company
!17
Distributed applications (DAPPs) get most experienced venture capitalists
excited. But what should a VC own—equity or token?
Users who invest in tokens to fund
development of the service
Token
ownership
Value of
tokens
!18
• Illiquid
• Relatively stable, with few
valuation fluctuations
• Governance and shareholder
rights; management lock up due
to stock agreements and
illiquidity
• Liquid
• Potentially huge daily price
fluctuations
• Potential moral hazard without
governing rules
EquityTokens
On the surface you may think most VCs would highly value the liquidity of
crypto-tokens. The answer is - it depends.
!19
If we were in a largely ICO dominated world, how would you stop management
teams from leaving with millions without even delivering value?
• Need legal governance
• Likely to see SEC oversight
• How to stop pump-and-dump coin trading if coin owners are
anonymous
• How do you make sure your co-investors stay committed to the
long-term health of the business? Think of today’s activist hedge-
fund, public investors on steroids.
!20
We are lacking mechanisms to enforce governance and world order.
If the transactions are partially anonymous, then how do governments:
• Track the flow of money to terrorists, white supremacists, criminal
gangs?
• Track the flow of illegal “money of influence” to state actors?
• Manage large economies and not give up control of money
supply?
!21
ICO from
Inception
Ultimately ICOs can lead to the unintended consequence of less
accountability and democracy within startup companies.
VC from
Inception
• More democratic financing
• Moral hazard risk
• Autocratic company
governance (less oversight,
less concentrated financial
ownership)
• More centralized control of financing
• Market forces help choose best VCs
• More democratic company
governance (control helps set policies
that hold founders accountable to
employees & shareholders)
!22
Ultimately I believe the growth of ICOs will create more opportunities for the
best VCs who understand how to work with new structures.
Creates
much wider
top of funnel
for best
VCsProliferation of
early stage
funding sources
Accelerators,
crowd-funding,
angels, etc.
!23
And VCs will continue to play an important role in shepherding companies to
downstream, large financing options & exits
Traditional VC
Sovereign
Wealth Funds
IPOs
Private
Equity
Hedge
Funds
Corporates
!24
My advice to you - be careful of any ICO that doesn’t
have an explicit reason to exist to incentivize network
participation / resources (otherwise it is just another form
of crowd funding and one that is likely to be highly
regulated).
!25
Where are we in the crypto
market lifecycle?
!26
I suspect that today’s overfunding and hype without real projects affecting users will lead to a big value
correction. Ultimately this crypto / blockchain enabled world is likely to produce long-term sustainable value.
We’ve seen this before:
• Cable
• CLECS/DSL
• Wireless
• Internet 1.0
We are
somewhere here
Time
Euphoria /
value
!27
Thank You
Mark Suster
@msuster
April 2018

Más contenido relacionado

Was ist angesagt?

Atomico Need-to-Know 13 April 2018
Atomico Need-to-Know 13 April 2018Atomico Need-to-Know 13 April 2018
Atomico Need-to-Know 13 April 2018Atomico
 
Atomico Need-to-Know 12 February 2018
Atomico Need-to-Know 12 February 2018Atomico Need-to-Know 12 February 2018
Atomico Need-to-Know 12 February 2018Atomico
 
Money of the Future. Top fin-tech trends
Money of the Future. Top fin-tech trendsMoney of the Future. Top fin-tech trends
Money of the Future. Top fin-tech trendsMaria Bichl
 
Atomico Need-To-Know 29 January 2018
Atomico Need-To-Know 29 January 2018 Atomico Need-To-Know 29 January 2018
Atomico Need-To-Know 29 January 2018 Atomico
 
Best fintech and other inspiration events from Life.SREDA VC '4Q2014
Best fintech and other inspiration events from Life.SREDA VC '4Q2014Best fintech and other inspiration events from Life.SREDA VC '4Q2014
Best fintech and other inspiration events from Life.SREDA VC '4Q2014Vladislav Solodkiy
 
The Disrupted Future of Banking - How Tech Will Disrupt, Destroy, or Reinvent...
The Disrupted Future of Banking - How Tech Will Disrupt, Destroy, or Reinvent...The Disrupted Future of Banking - How Tech Will Disrupt, Destroy, or Reinvent...
The Disrupted Future of Banking - How Tech Will Disrupt, Destroy, or Reinvent...ramezn
 
20080329 Social Lending@Bar Camp Bank Sf
20080329 Social Lending@Bar Camp Bank Sf20080329 Social Lending@Bar Camp Bank Sf
20080329 Social Lending@Bar Camp Bank SfJean Capelli
 
Thetime Israeli Internet Report 2014
Thetime Israeli Internet Report 2014Thetime Israeli Internet Report 2014
Thetime Israeli Internet Report 2014Yoni Kish
 
Thetime Israeli Internet Report 2012
Thetime Israeli Internet Report 2012Thetime Israeli Internet Report 2012
Thetime Israeli Internet Report 2012Yoni Kish
 
Current FinTech Trends in Retail Lending
Current FinTech Trends in Retail LendingCurrent FinTech Trends in Retail Lending
Current FinTech Trends in Retail LendingBankersLab
 
The Uberization of Banking
The Uberization of BankingThe Uberization of Banking
The Uberization of BankingBackbase
 
Money2020 2015 Day Two Highlights
Money2020 2015 Day Two HighlightsMoney2020 2015 Day Two Highlights
Money2020 2015 Day Two HighlightsSam Maule
 
Money2020 2015 Day Three Highlights
Money2020 2015 Day Three HighlightsMoney2020 2015 Day Three Highlights
Money2020 2015 Day Three HighlightsSam Maule
 
Money2020 2015 Day One Highlights
Money2020 2015 Day One HighlightsMoney2020 2015 Day One Highlights
Money2020 2015 Day One HighlightsSam Maule
 
Is vc still a thing final
Is vc still a thing   finalIs vc still a thing   final
Is vc still a thing finalMark Suster
 

Was ist angesagt? (17)

Atomico Need-to-Know 13 April 2018
Atomico Need-to-Know 13 April 2018Atomico Need-to-Know 13 April 2018
Atomico Need-to-Know 13 April 2018
 
Atomico Need-to-Know 12 February 2018
Atomico Need-to-Know 12 February 2018Atomico Need-to-Know 12 February 2018
Atomico Need-to-Know 12 February 2018
 
Financial Technology Trends in 2016
Financial Technology Trends in 2016Financial Technology Trends in 2016
Financial Technology Trends in 2016
 
Money of the Future. Top fin-tech trends
Money of the Future. Top fin-tech trendsMoney of the Future. Top fin-tech trends
Money of the Future. Top fin-tech trends
 
Atomico Need-To-Know 29 January 2018
Atomico Need-To-Know 29 January 2018 Atomico Need-To-Know 29 January 2018
Atomico Need-To-Know 29 January 2018
 
Best fintech and other inspiration events from Life.SREDA VC '4Q2014
Best fintech and other inspiration events from Life.SREDA VC '4Q2014Best fintech and other inspiration events from Life.SREDA VC '4Q2014
Best fintech and other inspiration events from Life.SREDA VC '4Q2014
 
The Disrupted Future of Banking - How Tech Will Disrupt, Destroy, or Reinvent...
The Disrupted Future of Banking - How Tech Will Disrupt, Destroy, or Reinvent...The Disrupted Future of Banking - How Tech Will Disrupt, Destroy, or Reinvent...
The Disrupted Future of Banking - How Tech Will Disrupt, Destroy, or Reinvent...
 
20080329 Social Lending@Bar Camp Bank Sf
20080329 Social Lending@Bar Camp Bank Sf20080329 Social Lending@Bar Camp Bank Sf
20080329 Social Lending@Bar Camp Bank Sf
 
Thetime Israeli Internet Report 2014
Thetime Israeli Internet Report 2014Thetime Israeli Internet Report 2014
Thetime Israeli Internet Report 2014
 
Thetime Israeli Internet Report 2012
Thetime Israeli Internet Report 2012Thetime Israeli Internet Report 2012
Thetime Israeli Internet Report 2012
 
Current FinTech Trends in Retail Lending
Current FinTech Trends in Retail LendingCurrent FinTech Trends in Retail Lending
Current FinTech Trends in Retail Lending
 
The Uberization of Banking
The Uberization of BankingThe Uberization of Banking
The Uberization of Banking
 
Money Of The Future 1H'2016
Money Of The Future 1H'2016Money Of The Future 1H'2016
Money Of The Future 1H'2016
 
Money2020 2015 Day Two Highlights
Money2020 2015 Day Two HighlightsMoney2020 2015 Day Two Highlights
Money2020 2015 Day Two Highlights
 
Money2020 2015 Day Three Highlights
Money2020 2015 Day Three HighlightsMoney2020 2015 Day Three Highlights
Money2020 2015 Day Three Highlights
 
Money2020 2015 Day One Highlights
Money2020 2015 Day One HighlightsMoney2020 2015 Day One Highlights
Money2020 2015 Day One Highlights
 
Is vc still a thing final
Is vc still a thing   finalIs vc still a thing   final
Is vc still a thing final
 

Ähnlich wie ICO 2.0 Summit - Keynote Presetnation

Disruptive Technology, Philanthropy & Civil Society
Disruptive Technology, Philanthropy & Civil SocietyDisruptive Technology, Philanthropy & Civil Society
Disruptive Technology, Philanthropy & Civil Societyrhoddavies1
 
Blockchain tsunami hits the Internet of Luxury (IoL)
Blockchain tsunami hits the Internet of Luxury (IoL)Blockchain tsunami hits the Internet of Luxury (IoL)
Blockchain tsunami hits the Internet of Luxury (IoL)AndrewGrantSuper
 
La #blockchain au #CES2018
La #blockchain au #CES2018La #blockchain au #CES2018
La #blockchain au #CES2018Vidal Chriqui
 
From Bitcoin to Blockchain: Industry Review April 2017 from OLMA NEXT Ltd
From Bitcoin to Blockchain: Industry Review April 2017 from OLMA NEXT LtdFrom Bitcoin to Blockchain: Industry Review April 2017 from OLMA NEXT Ltd
From Bitcoin to Blockchain: Industry Review April 2017 from OLMA NEXT LtdOLMA Capital Management
 
Outlier Ventures State of Blockchain Q3 2018
Outlier Ventures State of Blockchain Q3 2018Outlier Ventures State of Blockchain Q3 2018
Outlier Ventures State of Blockchain Q3 2018Outlier Ventures
 
Blockchain the inception of a new database of everything by dinis guarda bloc...
Blockchain the inception of a new database of everything by dinis guarda bloc...Blockchain the inception of a new database of everything by dinis guarda bloc...
Blockchain the inception of a new database of everything by dinis guarda bloc...Dinis Guarda
 
Blockchain Possibilities: Identity, Privacy, and Advertising
Blockchain Possibilities: Identity, Privacy, and AdvertisingBlockchain Possibilities: Identity, Privacy, and Advertising
Blockchain Possibilities: Identity, Privacy, and AdvertisingInês Almeida
 
Blockchain 50 companies
Blockchain 50 companiesBlockchain 50 companies
Blockchain 50 companiesmakipei
 
Investing In Blockchain Startups - A Guide For Angels & VCs
Investing In Blockchain Startups - A Guide For Angels & VCs Investing In Blockchain Startups - A Guide For Angels & VCs
Investing In Blockchain Startups - A Guide For Angels & VCs Jamie Burke
 
State of Blockchains 2019: Green shoots of adoption emerge from 2018 crypto c...
State of Blockchains 2019: Green shoots of adoption emerge from 2018 crypto c...State of Blockchains 2019: Green shoots of adoption emerge from 2018 crypto c...
State of Blockchains 2019: Green shoots of adoption emerge from 2018 crypto c...Outlier Ventures
 
The State of Blockchains Q2 2018
The State of Blockchains Q2 2018The State of Blockchains Q2 2018
The State of Blockchains Q2 2018Outlier Ventures
 
Iceic2019 final presented
Iceic2019 final presentedIceic2019 final presented
Iceic2019 final presentedHeung-No Lee
 
Understanding Blockchains
Understanding BlockchainsUnderstanding Blockchains
Understanding BlockchainsBlockStars.io
 
How Blockchain Will Impact Search Engines | Victoria Olsina, Consensys London
How Blockchain Will Impact Search Engines | Victoria Olsina, Consensys LondonHow Blockchain Will Impact Search Engines | Victoria Olsina, Consensys London
How Blockchain Will Impact Search Engines | Victoria Olsina, Consensys LondonClick Consult (Part of Ceuta Group)
 
Blockchains: Bitcoin was always so much more
Blockchains: Bitcoin was always so much moreBlockchains: Bitcoin was always so much more
Blockchains: Bitcoin was always so much moreRobin Teigland
 
Industrializing Blockchain in ASEAN
Industrializing Blockchain in ASEANIndustrializing Blockchain in ASEAN
Industrializing Blockchain in ASEANSahil Gupta
 
Iungo Global Wifi Network powered by blockchain
Iungo Global Wifi Network powered by blockchainIungo Global Wifi Network powered by blockchain
Iungo Global Wifi Network powered by blockchainRičardas Bernotavičius
 
Blockchain Insider | Chapter 2: The Name of The Game
Blockchain Insider | Chapter 2: The Name of The GameBlockchain Insider | Chapter 2: The Name of The Game
Blockchain Insider | Chapter 2: The Name of The GameKoh How Tze
 

Ähnlich wie ICO 2.0 Summit - Keynote Presetnation (20)

Disruptive Technology, Philanthropy & Civil Society
Disruptive Technology, Philanthropy & Civil SocietyDisruptive Technology, Philanthropy & Civil Society
Disruptive Technology, Philanthropy & Civil Society
 
Blockchain tsunami hits the Internet of Luxury (IoL)
Blockchain tsunami hits the Internet of Luxury (IoL)Blockchain tsunami hits the Internet of Luxury (IoL)
Blockchain tsunami hits the Internet of Luxury (IoL)
 
La #blockchain au #CES2018
La #blockchain au #CES2018La #blockchain au #CES2018
La #blockchain au #CES2018
 
From Bitcoin to Blockchain: Industry Review April 2017 from OLMA NEXT Ltd
From Bitcoin to Blockchain: Industry Review April 2017 from OLMA NEXT LtdFrom Bitcoin to Blockchain: Industry Review April 2017 from OLMA NEXT Ltd
From Bitcoin to Blockchain: Industry Review April 2017 from OLMA NEXT Ltd
 
Blockchain startup
Blockchain startupBlockchain startup
Blockchain startup
 
Outlier Ventures State of Blockchain Q3 2018
Outlier Ventures State of Blockchain Q3 2018Outlier Ventures State of Blockchain Q3 2018
Outlier Ventures State of Blockchain Q3 2018
 
Blockchain the inception of a new database of everything by dinis guarda bloc...
Blockchain the inception of a new database of everything by dinis guarda bloc...Blockchain the inception of a new database of everything by dinis guarda bloc...
Blockchain the inception of a new database of everything by dinis guarda bloc...
 
The 10 most disruptive blockchain solution providers 2018
The 10 most disruptive blockchain solution providers 2018The 10 most disruptive blockchain solution providers 2018
The 10 most disruptive blockchain solution providers 2018
 
Blockchain Possibilities: Identity, Privacy, and Advertising
Blockchain Possibilities: Identity, Privacy, and AdvertisingBlockchain Possibilities: Identity, Privacy, and Advertising
Blockchain Possibilities: Identity, Privacy, and Advertising
 
Blockchain 50 companies
Blockchain 50 companiesBlockchain 50 companies
Blockchain 50 companies
 
Investing In Blockchain Startups - A Guide For Angels & VCs
Investing In Blockchain Startups - A Guide For Angels & VCs Investing In Blockchain Startups - A Guide For Angels & VCs
Investing In Blockchain Startups - A Guide For Angels & VCs
 
State of Blockchains 2019: Green shoots of adoption emerge from 2018 crypto c...
State of Blockchains 2019: Green shoots of adoption emerge from 2018 crypto c...State of Blockchains 2019: Green shoots of adoption emerge from 2018 crypto c...
State of Blockchains 2019: Green shoots of adoption emerge from 2018 crypto c...
 
The State of Blockchains Q2 2018
The State of Blockchains Q2 2018The State of Blockchains Q2 2018
The State of Blockchains Q2 2018
 
Iceic2019 final presented
Iceic2019 final presentedIceic2019 final presented
Iceic2019 final presented
 
Understanding Blockchains
Understanding BlockchainsUnderstanding Blockchains
Understanding Blockchains
 
How Blockchain Will Impact Search Engines | Victoria Olsina, Consensys London
How Blockchain Will Impact Search Engines | Victoria Olsina, Consensys LondonHow Blockchain Will Impact Search Engines | Victoria Olsina, Consensys London
How Blockchain Will Impact Search Engines | Victoria Olsina, Consensys London
 
Blockchains: Bitcoin was always so much more
Blockchains: Bitcoin was always so much moreBlockchains: Bitcoin was always so much more
Blockchains: Bitcoin was always so much more
 
Industrializing Blockchain in ASEAN
Industrializing Blockchain in ASEANIndustrializing Blockchain in ASEAN
Industrializing Blockchain in ASEAN
 
Iungo Global Wifi Network powered by blockchain
Iungo Global Wifi Network powered by blockchainIungo Global Wifi Network powered by blockchain
Iungo Global Wifi Network powered by blockchain
 
Blockchain Insider | Chapter 2: The Name of The Game
Blockchain Insider | Chapter 2: The Name of The GameBlockchain Insider | Chapter 2: The Name of The Game
Blockchain Insider | Chapter 2: The Name of The Game
 

Mehr von Mark Suster

Funding in the time of Corona Virus
Funding in the time of Corona VirusFunding in the time of Corona Virus
Funding in the time of Corona VirusMark Suster
 
Managing Your Startup Board
Managing Your Startup BoardManaging Your Startup Board
Managing Your Startup BoardMark Suster
 
Seed stage 2019 final
Seed stage 2019   finalSeed stage 2019   final
Seed stage 2019 finalMark Suster
 
Staff at vc firms
Staff at vc firmsStaff at vc firms
Staff at vc firmsMark Suster
 
Upfront Ventures Bitcoin & Blockchain VC Survey
Upfront Ventures Bitcoin & Blockchain VC SurveyUpfront Ventures Bitcoin & Blockchain VC Survey
Upfront Ventures Bitcoin & Blockchain VC SurveyMark Suster
 
Upfront Ventures blockchain and crypto deck
Upfront Ventures blockchain and crypto deckUpfront Ventures blockchain and crypto deck
Upfront Ventures blockchain and crypto deckMark Suster
 
Upfront Ventures VC Survey 2017
Upfront Ventures VC Survey 2017Upfront Ventures VC Survey 2017
Upfront Ventures VC Survey 2017Mark Suster
 
Upfront LP Survey of the Venture Capital & Startup Industry
Upfront LP Survey of the Venture Capital & Startup IndustryUpfront LP Survey of the Venture Capital & Startup Industry
Upfront LP Survey of the Venture Capital & Startup IndustryMark Suster
 
Upfront State of the VC & Tech Industry 2017
Upfront State of the VC & Tech Industry 2017Upfront State of the VC & Tech Industry 2017
Upfront State of the VC & Tech Industry 2017Mark Suster
 
Final san diego venture group keynote 2016
Final san diego venture group keynote   2016Final san diego venture group keynote   2016
Final san diego venture group keynote 2016Mark Suster
 
Final upfront lp survey data 2016
Final upfront lp survey data 2016Final upfront lp survey data 2016
Final upfront lp survey data 2016Mark Suster
 
VC survey data 2016
VC survey data 2016VC survey data 2016
VC survey data 2016Mark Suster
 
Upfront vc analysis 2016
Upfront vc analysis 2016Upfront vc analysis 2016
Upfront vc analysis 2016Mark Suster
 
Final venture outlook 2016
Final venture outlook 2016Final venture outlook 2016
Final venture outlook 2016Mark Suster
 
There is Something Going on in the LA Tech Market by Upfront Ventures
There is Something Going on in the LA Tech Market by Upfront VenturesThere is Something Going on in the LA Tech Market by Upfront Ventures
There is Something Going on in the LA Tech Market by Upfront VenturesMark Suster
 
The Changing Structure of the Venture Capital Industry
The Changing Structure of the Venture Capital IndustryThe Changing Structure of the Venture Capital Industry
The Changing Structure of the Venture Capital IndustryMark Suster
 
Why It's Morning in Venture Capital
Why It's Morning in Venture CapitalWhy It's Morning in Venture Capital
Why It's Morning in Venture CapitalMark Suster
 
Final web summit (dublin oct 2013)
Final web summit (dublin oct 2013)Final web summit (dublin oct 2013)
Final web summit (dublin oct 2013)Mark Suster
 
Online video market sept 2013
Online video market sept 2013Online video market sept 2013
Online video market sept 2013Mark Suster
 

Mehr von Mark Suster (20)

Funding in the time of Corona Virus
Funding in the time of Corona VirusFunding in the time of Corona Virus
Funding in the time of Corona Virus
 
Managing Your Startup Board
Managing Your Startup BoardManaging Your Startup Board
Managing Your Startup Board
 
Seed stage 2019 final
Seed stage 2019   finalSeed stage 2019   final
Seed stage 2019 final
 
Staff at vc firms
Staff at vc firmsStaff at vc firms
Staff at vc firms
 
Upfront Ventures Bitcoin & Blockchain VC Survey
Upfront Ventures Bitcoin & Blockchain VC SurveyUpfront Ventures Bitcoin & Blockchain VC Survey
Upfront Ventures Bitcoin & Blockchain VC Survey
 
Upfront Ventures blockchain and crypto deck
Upfront Ventures blockchain and crypto deckUpfront Ventures blockchain and crypto deck
Upfront Ventures blockchain and crypto deck
 
Upfront Ventures VC Survey 2017
Upfront Ventures VC Survey 2017Upfront Ventures VC Survey 2017
Upfront Ventures VC Survey 2017
 
Upfront LP Survey of the Venture Capital & Startup Industry
Upfront LP Survey of the Venture Capital & Startup IndustryUpfront LP Survey of the Venture Capital & Startup Industry
Upfront LP Survey of the Venture Capital & Startup Industry
 
Upfront State of the VC & Tech Industry 2017
Upfront State of the VC & Tech Industry 2017Upfront State of the VC & Tech Industry 2017
Upfront State of the VC & Tech Industry 2017
 
Final san diego venture group keynote 2016
Final san diego venture group keynote   2016Final san diego venture group keynote   2016
Final san diego venture group keynote 2016
 
Final upfront lp survey data 2016
Final upfront lp survey data 2016Final upfront lp survey data 2016
Final upfront lp survey data 2016
 
VC survey data 2016
VC survey data 2016VC survey data 2016
VC survey data 2016
 
Upfront vc analysis 2016
Upfront vc analysis 2016Upfront vc analysis 2016
Upfront vc analysis 2016
 
Final venture outlook 2016
Final venture outlook 2016Final venture outlook 2016
Final venture outlook 2016
 
There is Something Going on in the LA Tech Market by Upfront Ventures
There is Something Going on in the LA Tech Market by Upfront VenturesThere is Something Going on in the LA Tech Market by Upfront Ventures
There is Something Going on in the LA Tech Market by Upfront Ventures
 
The Changing Structure of the Venture Capital Industry
The Changing Structure of the Venture Capital IndustryThe Changing Structure of the Venture Capital Industry
The Changing Structure of the Venture Capital Industry
 
Why It's Morning in Venture Capital
Why It's Morning in Venture CapitalWhy It's Morning in Venture Capital
Why It's Morning in Venture Capital
 
Final web summit (dublin oct 2013)
Final web summit (dublin oct 2013)Final web summit (dublin oct 2013)
Final web summit (dublin oct 2013)
 
Online video market sept 2013
Online video market sept 2013Online video market sept 2013
Online video market sept 2013
 
Future of TV
Future of TVFuture of TV
Future of TV
 

Último

SIM INFORMATION SYSTEM: REVOLUTIONIZING DATA MANAGEMENT
SIM INFORMATION SYSTEM: REVOLUTIONIZING DATA MANAGEMENTSIM INFORMATION SYSTEM: REVOLUTIONIZING DATA MANAGEMENT
SIM INFORMATION SYSTEM: REVOLUTIONIZING DATA MANAGEMENTxtailishbaloch
 
The Zero-ETL Approach: Enhancing Data Agility and Insight
The Zero-ETL Approach: Enhancing Data Agility and InsightThe Zero-ETL Approach: Enhancing Data Agility and Insight
The Zero-ETL Approach: Enhancing Data Agility and InsightSafe Software
 
GraphSummit Copenhagen 2024 - Neo4j Vision and Roadmap.pptx
GraphSummit Copenhagen 2024 - Neo4j Vision and Roadmap.pptxGraphSummit Copenhagen 2024 - Neo4j Vision and Roadmap.pptx
GraphSummit Copenhagen 2024 - Neo4j Vision and Roadmap.pptxNeo4j
 
UiPath Studio Web workshop series - Day 1
UiPath Studio Web workshop series  - Day 1UiPath Studio Web workshop series  - Day 1
UiPath Studio Web workshop series - Day 1DianaGray10
 
Planetek Italia Srl - Corporate Profile Brochure
Planetek Italia Srl - Corporate Profile BrochurePlanetek Italia Srl - Corporate Profile Brochure
Planetek Italia Srl - Corporate Profile BrochurePlanetek Italia Srl
 
How to release an Open Source Dataweave Library
How to release an Open Source Dataweave LibraryHow to release an Open Source Dataweave Library
How to release an Open Source Dataweave Libraryshyamraj55
 
Introduction to RAG (Retrieval Augmented Generation) and its application
Introduction to RAG (Retrieval Augmented Generation) and its applicationIntroduction to RAG (Retrieval Augmented Generation) and its application
Introduction to RAG (Retrieval Augmented Generation) and its applicationKnoldus Inc.
 
Scenario Library et REX Discover industry- and role- based scenarios
Scenario Library et REX Discover industry- and role- based scenariosScenario Library et REX Discover industry- and role- based scenarios
Scenario Library et REX Discover industry- and role- based scenariosErol GIRAUDY
 
.NET 8 ChatBot with Azure OpenAI Services.pptx
.NET 8 ChatBot with Azure OpenAI Services.pptx.NET 8 ChatBot with Azure OpenAI Services.pptx
.NET 8 ChatBot with Azure OpenAI Services.pptxHansamali Gamage
 
The Importance of Indoor Air Quality (English)
The Importance of Indoor Air Quality (English)The Importance of Indoor Air Quality (English)
The Importance of Indoor Air Quality (English)IES VE
 
How to become a GDSC Lead GDSC MI AOE.pptx
How to become a GDSC Lead GDSC MI AOE.pptxHow to become a GDSC Lead GDSC MI AOE.pptx
How to become a GDSC Lead GDSC MI AOE.pptxKaustubhBhavsar6
 
Stobox 4: Revolutionizing Investment in Real-World Assets Through Tokenization
Stobox 4: Revolutionizing Investment in Real-World Assets Through TokenizationStobox 4: Revolutionizing Investment in Real-World Assets Through Tokenization
Stobox 4: Revolutionizing Investment in Real-World Assets Through TokenizationStobox
 
TrustArc Webinar - How to Live in a Post Third-Party Cookie World
TrustArc Webinar - How to Live in a Post Third-Party Cookie WorldTrustArc Webinar - How to Live in a Post Third-Party Cookie World
TrustArc Webinar - How to Live in a Post Third-Party Cookie WorldTrustArc
 
AI Workshops at Computers In Libraries 2024
AI Workshops at Computers In Libraries 2024AI Workshops at Computers In Libraries 2024
AI Workshops at Computers In Libraries 2024Brian Pichman
 
IT Service Management (ITSM) Best Practices for Advanced Computing
IT Service Management (ITSM) Best Practices for Advanced ComputingIT Service Management (ITSM) Best Practices for Advanced Computing
IT Service Management (ITSM) Best Practices for Advanced ComputingMAGNIntelligence
 
Patch notes explaining DISARM Version 1.4 update
Patch notes explaining DISARM Version 1.4 updatePatch notes explaining DISARM Version 1.4 update
Patch notes explaining DISARM Version 1.4 updateadam112203
 
LF Energy Webinar - Unveiling OpenEEMeter 4.0
LF Energy Webinar - Unveiling OpenEEMeter 4.0LF Energy Webinar - Unveiling OpenEEMeter 4.0
LF Energy Webinar - Unveiling OpenEEMeter 4.0DanBrown980551
 
CyberSecurity - Computers In Libraries 2024
CyberSecurity - Computers In Libraries 2024CyberSecurity - Computers In Libraries 2024
CyberSecurity - Computers In Libraries 2024Brian Pichman
 
UiPath Studio Web workshop series - Day 2
UiPath Studio Web workshop series - Day 2UiPath Studio Web workshop series - Day 2
UiPath Studio Web workshop series - Day 2DianaGray10
 
Emil Eifrem at GraphSummit Copenhagen 2024 - The Art of the Possible.pptx
Emil Eifrem at GraphSummit Copenhagen 2024 - The Art of the Possible.pptxEmil Eifrem at GraphSummit Copenhagen 2024 - The Art of the Possible.pptx
Emil Eifrem at GraphSummit Copenhagen 2024 - The Art of the Possible.pptxNeo4j
 

Último (20)

SIM INFORMATION SYSTEM: REVOLUTIONIZING DATA MANAGEMENT
SIM INFORMATION SYSTEM: REVOLUTIONIZING DATA MANAGEMENTSIM INFORMATION SYSTEM: REVOLUTIONIZING DATA MANAGEMENT
SIM INFORMATION SYSTEM: REVOLUTIONIZING DATA MANAGEMENT
 
The Zero-ETL Approach: Enhancing Data Agility and Insight
The Zero-ETL Approach: Enhancing Data Agility and InsightThe Zero-ETL Approach: Enhancing Data Agility and Insight
The Zero-ETL Approach: Enhancing Data Agility and Insight
 
GraphSummit Copenhagen 2024 - Neo4j Vision and Roadmap.pptx
GraphSummit Copenhagen 2024 - Neo4j Vision and Roadmap.pptxGraphSummit Copenhagen 2024 - Neo4j Vision and Roadmap.pptx
GraphSummit Copenhagen 2024 - Neo4j Vision and Roadmap.pptx
 
UiPath Studio Web workshop series - Day 1
UiPath Studio Web workshop series  - Day 1UiPath Studio Web workshop series  - Day 1
UiPath Studio Web workshop series - Day 1
 
Planetek Italia Srl - Corporate Profile Brochure
Planetek Italia Srl - Corporate Profile BrochurePlanetek Italia Srl - Corporate Profile Brochure
Planetek Italia Srl - Corporate Profile Brochure
 
How to release an Open Source Dataweave Library
How to release an Open Source Dataweave LibraryHow to release an Open Source Dataweave Library
How to release an Open Source Dataweave Library
 
Introduction to RAG (Retrieval Augmented Generation) and its application
Introduction to RAG (Retrieval Augmented Generation) and its applicationIntroduction to RAG (Retrieval Augmented Generation) and its application
Introduction to RAG (Retrieval Augmented Generation) and its application
 
Scenario Library et REX Discover industry- and role- based scenarios
Scenario Library et REX Discover industry- and role- based scenariosScenario Library et REX Discover industry- and role- based scenarios
Scenario Library et REX Discover industry- and role- based scenarios
 
.NET 8 ChatBot with Azure OpenAI Services.pptx
.NET 8 ChatBot with Azure OpenAI Services.pptx.NET 8 ChatBot with Azure OpenAI Services.pptx
.NET 8 ChatBot with Azure OpenAI Services.pptx
 
The Importance of Indoor Air Quality (English)
The Importance of Indoor Air Quality (English)The Importance of Indoor Air Quality (English)
The Importance of Indoor Air Quality (English)
 
How to become a GDSC Lead GDSC MI AOE.pptx
How to become a GDSC Lead GDSC MI AOE.pptxHow to become a GDSC Lead GDSC MI AOE.pptx
How to become a GDSC Lead GDSC MI AOE.pptx
 
Stobox 4: Revolutionizing Investment in Real-World Assets Through Tokenization
Stobox 4: Revolutionizing Investment in Real-World Assets Through TokenizationStobox 4: Revolutionizing Investment in Real-World Assets Through Tokenization
Stobox 4: Revolutionizing Investment in Real-World Assets Through Tokenization
 
TrustArc Webinar - How to Live in a Post Third-Party Cookie World
TrustArc Webinar - How to Live in a Post Third-Party Cookie WorldTrustArc Webinar - How to Live in a Post Third-Party Cookie World
TrustArc Webinar - How to Live in a Post Third-Party Cookie World
 
AI Workshops at Computers In Libraries 2024
AI Workshops at Computers In Libraries 2024AI Workshops at Computers In Libraries 2024
AI Workshops at Computers In Libraries 2024
 
IT Service Management (ITSM) Best Practices for Advanced Computing
IT Service Management (ITSM) Best Practices for Advanced ComputingIT Service Management (ITSM) Best Practices for Advanced Computing
IT Service Management (ITSM) Best Practices for Advanced Computing
 
Patch notes explaining DISARM Version 1.4 update
Patch notes explaining DISARM Version 1.4 updatePatch notes explaining DISARM Version 1.4 update
Patch notes explaining DISARM Version 1.4 update
 
LF Energy Webinar - Unveiling OpenEEMeter 4.0
LF Energy Webinar - Unveiling OpenEEMeter 4.0LF Energy Webinar - Unveiling OpenEEMeter 4.0
LF Energy Webinar - Unveiling OpenEEMeter 4.0
 
CyberSecurity - Computers In Libraries 2024
CyberSecurity - Computers In Libraries 2024CyberSecurity - Computers In Libraries 2024
CyberSecurity - Computers In Libraries 2024
 
UiPath Studio Web workshop series - Day 2
UiPath Studio Web workshop series - Day 2UiPath Studio Web workshop series - Day 2
UiPath Studio Web workshop series - Day 2
 
Emil Eifrem at GraphSummit Copenhagen 2024 - The Art of the Possible.pptx
Emil Eifrem at GraphSummit Copenhagen 2024 - The Art of the Possible.pptxEmil Eifrem at GraphSummit Copenhagen 2024 - The Art of the Possible.pptx
Emil Eifrem at GraphSummit Copenhagen 2024 - The Art of the Possible.pptx
 

ICO 2.0 Summit - Keynote Presetnation

  • 1. !1 Some Views on Cryptocurrencies, Blockchain & ICO’s Mark Suster @msuster April 2018
  • 2. The problem with discussions about cryptocurrencies and blockchain is that people conflate too many issues. !2 • Will key crypto prices keep going up? • Will the fed crack down on Bitcoin or ICOs? • Will cryptocurrencies disrupt governments? • Will ICOs replace venture capital?
  • 3. Anti-Authoritarians • Libertarians • Emerging Market Citizens !3 Disruptive technologies challenge incumbents in good & bad ways. New entrants both innovate and over-hype. Understanding motives is critical to knowing where markets will likely head. Incumbents • Governments • Banks • VCs Disruptors • Technologists • Crypto funds Crypto
  • 4. !4 I like to think of the topic as three distinct layers that are related but need to be understood in their own rights. Each is worthy of its own debates. Today I will discuss 1 & 3. 3. ICOs 2. Cryptocurrencies / tokens 1. Blockchain
  • 6. !6 Digital assets on the Internet have been freely copied and distributed. This obviously doesn’t work when it’s money. Pictures CDs Movies • Napster • BitTorrent • Early YouTube • Flickr
  • 7. !7 The big idea for Blockchain that excites me is that it can create both provable rights for digital assets, scarcity that helps defend the value and decentralization that could reduce the control of today’s technology giants. Images, Art Money Music, Video Distributed, P2P networks verify ownership with public ledgers Digital Asset & Ownership Info Cryptographically sealed hash of data SHA-256
  • 8. !8 But many naive evangelists think that “blockchain” databases & consensus mechanisms are applicable to every situation. They are less scalable, performant & flexible than other database solutions. Relational Object Flat file, etc • Scalability issues • Performance issues • Governance issues The benefits of having less performant databases must exceed the obvious technical costs Other Database TypesBlockchain Ledgers
  • 9. !9 Why is “decentralization”a big idea? IP TCP HTTP HTML Open protocols beat proprietary “closed” networks. “Walled garden” Internet 1.0 Internet 2.0 Internet Protocols The majority of the value has been accrued to a small number of tech giants who built scale on global, open, connected networks.
  • 10. !10 Big Company Protocol User identity User bank details Social graph (who you know, how well you know them) Interest graph (how they serve relevant ads) Reputation (am I a 5 or a 2 when I work with people?) The companies we loved have established a “network effect” that creates lock you in because through all of your data they are more efficient at serving you than any other startup could be.
  • 11. !11 If blockchain projects supported by cryptocurrencies are successful, it is possible an Internet 3.0 could return us to return to a decentralized web where the dominant tech companies have less control. If services were blockchain protocols then users could “port” their information more easily to new startups. Today’s tech giants would have less market power over innovation. IP TCP HTTP HTML Identity Banking Reputation Socialgraph Interestgraph Internet 3.0
  • 12. !12 • Google & Apple can charge a 30% tax on apps. • Apple can decide it doesn’t like fart apps. • Facebook can decide how to promote news & media. • Google can display shopping competitors, flight information, hotel booking and stop referring traffic. Big Company As a society we’re starting to see the consequences of this, which could get worse if power concentrates even further.
  • 13. !13 Businesses today are typically built by a centralized entity which raised large volumes of venture capital & then concentrates power and profits. Example: Dropbox $ for storage $M UsersDropbox • Raise venture capital • Invest $$$ in servers to store your documents • Recoup money by charging users fees
  • 14. !14 If “distributed apps” (DAPPs) are successful it’s possible that new markets and companies will be created where more network participants can share in the value creation. Example: Decentralized Dropbox $ for storage UsersNetwork • Provide server space, processing power, bandwidth • Collect a currency / token • Pay a currency / token
  • 16. !16 Out of nowhere ICOs captured nearly 6% of total financing of tech startups in 2017. ICOs Traditional VC 2017 $3.7Bn $60Bn ~6% of the market in just one year But this may have been due to an anomaly of the quick & massive rise of Bitcoin prices. If ICOs continue to be successful, my guess is they will capture 5-15% of the total funding market.
  • 17. Company !17 Distributed applications (DAPPs) get most experienced venture capitalists excited. But what should a VC own—equity or token? Users who invest in tokens to fund development of the service Token ownership Value of tokens
  • 18. !18 • Illiquid • Relatively stable, with few valuation fluctuations • Governance and shareholder rights; management lock up due to stock agreements and illiquidity • Liquid • Potentially huge daily price fluctuations • Potential moral hazard without governing rules EquityTokens On the surface you may think most VCs would highly value the liquidity of crypto-tokens. The answer is - it depends.
  • 19. !19 If we were in a largely ICO dominated world, how would you stop management teams from leaving with millions without even delivering value? • Need legal governance • Likely to see SEC oversight • How to stop pump-and-dump coin trading if coin owners are anonymous • How do you make sure your co-investors stay committed to the long-term health of the business? Think of today’s activist hedge- fund, public investors on steroids.
  • 20. !20 We are lacking mechanisms to enforce governance and world order. If the transactions are partially anonymous, then how do governments: • Track the flow of money to terrorists, white supremacists, criminal gangs? • Track the flow of illegal “money of influence” to state actors? • Manage large economies and not give up control of money supply?
  • 21. !21 ICO from Inception Ultimately ICOs can lead to the unintended consequence of less accountability and democracy within startup companies. VC from Inception • More democratic financing • Moral hazard risk • Autocratic company governance (less oversight, less concentrated financial ownership) • More centralized control of financing • Market forces help choose best VCs • More democratic company governance (control helps set policies that hold founders accountable to employees & shareholders)
  • 22. !22 Ultimately I believe the growth of ICOs will create more opportunities for the best VCs who understand how to work with new structures. Creates much wider top of funnel for best VCsProliferation of early stage funding sources Accelerators, crowd-funding, angels, etc.
  • 23. !23 And VCs will continue to play an important role in shepherding companies to downstream, large financing options & exits Traditional VC Sovereign Wealth Funds IPOs Private Equity Hedge Funds Corporates
  • 24. !24 My advice to you - be careful of any ICO that doesn’t have an explicit reason to exist to incentivize network participation / resources (otherwise it is just another form of crowd funding and one that is likely to be highly regulated).
  • 25. !25 Where are we in the crypto market lifecycle?
  • 26. !26 I suspect that today’s overfunding and hype without real projects affecting users will lead to a big value correction. Ultimately this crypto / blockchain enabled world is likely to produce long-term sustainable value. We’ve seen this before: • Cable • CLECS/DSL • Wireless • Internet 1.0 We are somewhere here Time Euphoria / value