Dan Tapiero - 10T Holdings @ TOKEN2049 London 2022

I'm going to present a few thoughts to you today it may not be groundbreaking or necessarily innovative um and maybe many of you are aware of some of the positive developments that have been going on in the space I think there's just been literally just panicked the last few days and I think it's very easy to lose sight of some of the important developments can someone close the uh doors over there any any chance all right there we go um and you know as a macro investor which I have been and was for the last 25 years um I'm very used to looking at very big picture things um looking at things from twenty thousand feet and you know that is our Approach at 10t we're a private Equity Fund uh that focuses only really on mid-stage companies that are a bit larger uh only in the crypto blockchain uh space and so what I thought today I would do is just take you through some slides that show you you know that there is quite a tremendous amount of growth going on underneath the hood right so it's not just all about the price of Bitcoin and ethereum and every day's activity so let's see if so again I did this a few days ago uh and the point of this really was just to show you that there's still tremendous appreciation in many of the underlying cryptocurrencies from January 21 uh and you know some of them up thousands of percent and coming from the traditional world the tradify world to have an asset that you own that is up a thousand percent in the past 18 months normally is a pretty good thing um I understand many of these are down 70 80 percent from the highs but there's still tremendous embedded value in the overall ecosystem we at TNT I'm not making a bet on any specific chain or cryptocurrency we've built a portfolio of about 20 companies that we believe are leveraged to the overall growth in the ecosystem so we don't bet on specific uh cryptocurrencies but a lot of value has been created and is there another interesting thing and I think this is very recent just in the last um I would say really six to 12 months is that you do have this web 2 interest to move into web3 I mean these aren't words that we even used a year ago but now we're using that there was no web3 as far as I knew a year ago but now they call it that and I think it is interesting um that the traditional guys are trying to figure out a way to harness the technology as I would call it again not interested so much in the day-to-day moves and lots of business opportunity um around this this shift so here's another again a lot of my charts you'll see are going to be moving from the left up to the right which is sort of the point of this whole discussion you can see here on chain wallets holding more than 0.1 is basically uh at an all-time high so you know again the prices had some problems but the underlying demand is still there and here a similar chart percentage of Bitcoins held for one year plus um still at an all-time high and at a high level this is just as um there was no really VC um I don't really consider or myself VC more of a as a private Equity uh investor looking at these larger companies as I said but you can see the capital huge amount of embedded money of value still in the space and again from 18 months ago um you know a huge rise so this might surprise some people I mean we see coinbase's stock is down at 40 today um and you know their volume is dropped but the number of verified users has continued to increase so you know interesting that basically despite all of this Carnage you still have interest um and it's increasing from the left to the right this is another interesting chart um Futures volumes and again the eth future is something that's been added that's new um the Bitcoin Futures have dropped a little bit in volume but you know I I look at this uh backdrop and we're in this deep bear Market in the traditional assets and also in crypto and you're still basically holding at a relatively high level so it just shows you that you know people aren't abandoning uh this world I mean I get a lot of questions about oh you know do you think what happens to all your Investments if this world goes to zero I mean I think it's practically impossible and I think some of these charts would also confirm that this is an ecosystem that's large lots of value and growing and the same thing here options you know it's up significantly from 18 months 24 months ago um holding at a decent range again it's this sort of bigger picture macro perspective um that I want to bring to your attention that the moves that we've had in the space in the last two years uh are really I mean astronomical and you won't see these kinds of moves in the traditional World anywhere this is you know almost a funny looking chart we know we know this um you know interest in nfts of course has exploded and essentially at an all-time high and I don't think these uh two million people are are disappearing overnight um you know maybe the nfts have been some of them have been dropping in value um but again the buy-in to the space from my perspective is really just only gone in One Direction and this is another interesting just made a new high just now even amidst this massive bear phase right and this is their curated set I think it's the first eight um the first eight nfts that were minted by Art blocks and just now made an all-time high some of that is the drop in ethereum but honestly this this world didn't exist again a year ago and I don't really see it disappearing a good sign of a strong sense of confidence here another again left to the right chart uh this world didn't exist uh even two years ago and you can see number of game five protocols by Chain we think this is a new interesting area um that is going to continue to grow and we may see adoption um we may see you know I would say almost adoption come through these different Avenues one is gaming before I mentioned web 2 to web 3 you know I think a few years ago many people were thinking that adoption was going to come institutional was going to adoption was going to come via institutions buying Bitcoin or or buying ethereum and that actually is not what's happening a lot of this institutional adoption is happening in different ways D5 we have of course stable coins you know didn't really exist and again it's almost the same theme and relatively high level I think this is a fascinating area um would love to find more investments in this area I don't think stable coins are going the volume the value held in the stable coin world is only going up um and again remember I come from a world where you know I spent 25 years looking at traditional markets looking at charts like these these kinds of charts don't exist in the old world none of them there's nothing that grows from zero to hundreds of billions in a two-year period so I know it feels bad today with positions and everything but just keep this in mind um the amount of Bitcoin locked on ethereum for me this is important it's just that you know Bitcoin is really what I would call true collateral and so the Bitcoin on ethereum becomes more flexible collateral still at a very high level from even 18 months ago um another chart maybe some people are not so aware of this lightning capacity this is Layer Two for Bitcoin um continues to increase at an all-time high today or yesterday whenever this the exact date but still very strong um total staked ethereum of course to me just means that people have more confidence in the network um again some of this is to do with the merge post merge but um you know tremendous growth numbers and gas expenditures as well for layer twos another Market that didn't exist and you can see fees have moved from zero to two billion so again traditional guy looking at all of this it's massive opportunity in front of us this one I don't know one of my analysts wanted to put this on here this is I think we don't need leverage in this world that much this is just showing that you know there is growth in uncollateralized on-chain lending um you know I'm of two minds of this I mean the the point here is that there's growth it's an area but I think this world is one world where you really don't need uh leverage and um yeah but again everyone can do as they feel like um here's another one developers remain very active and look these are the guys who are core to the ecosystem um new downloads of coding kits required to build on East this is you know an explosion of growth here uh I doubt a movement up in the underlying is going to have that much difference here again 178 percent of growth from 21 to 22 and I suspect this is going to continue because one of the things we've really seen this year is that use cases have exploded and here you have total smart contracts launched again another confirmation that developers remain Super Active uh these kinds of growth rates again phenomenal and again total dapps total decentralized applications in the Dae as I call it and remember to have this kind of growth in all of these areas during a pretty diabolical bear phase just think about what's going to happen when the bull returns in six months from now 12 months from now so if you can you know if you're debating about whether you should be getting into this ecosystem or doing something in this world I think now is a pretty good time um again this is uh pretty incredible we're at the all-time highs now and then there's this Charter on Big Data um you know when I think about blockchains blockchains for me are you know uh repositories of data right that's really all they are um and we have some expectations here for the future but it just goes to show you that the this world of data is enormous and um the growth in the amount of data that is on blockchains continues to go up and you can see here look at this phenomenal growth rate and ethereum again increased number of use cases has just overtaken Bitcoin um again the total amount of data that has been captured on blockchains you can see these growth rates here and they're continuing today and this is my my last chart I really didn't have that much to say today but this is super interesting what this is is the revenue um of a company that I'm investing in today I'm leading the round for this company they're actually outside but it's not public yet so I won't say anything and I tweaked the numbers a little bit um but this is a company that just had a record month had a record quarter one of the few companies that I'm aware of that has more Revenue this year than last year it's a node and API infrastructure business so even in the you know the SBF debacle and the all of that there are still companies out there that are um core to the ecosystem that are growing you know making a record high in Revenue just now last month and so if you look hard enough and I think dig deep enough into this world you're going to find that there's tremendous uh opportunity and I think just to watch the Bitcoin price or the Solana price Etc uh at least for us is really not the right way to capture long-term value so that's all I have today I don't know if I have time for a question or two um if not I'm happy to uh that I can share some of these slides with you here anything okay go ahead I can hear you I don't know that there's a mic but I can hear you okay so my question would be what would it take for you to lose trust in crypto because as I see like you're very that I would lose what faith faith in crypto overall because you're talking like as a certain it's gonna go like um always up and we have the data that supports that but in your opinion what should happen for you to lose that trust you're saying like Okay this is going completely opposite to why I was expecting and uh it's uncertainty it's gonna go down now well I would have to be able to not find charts like this I would have to you know it would have to be that the data was all deteriorating so it's a very you know I don't want to say simple approach but you know I I I didn't look very hard this didn't take me very long to put together so you know when I see information that is all leading one way I think it's a pretty good uh confirmation that the thesis is right if it was leading all the other way then I would say okay well what's going on maybe this isn't such a great growth area but to have this kind of data in the midst of what we're living through right now is very rare very rare so what would it take yeah it would take the data to change that's all all right I think we're done thank you for listening