Research Summary
The report provides an in-depth interview with Michael McCann, a crypto analyst at Outerlands Capital. McCann shares his career journey, insights into his daily work routine, and advice for those interested in pursuing a career in crypto. He also discusses the philosophy and structure of Outerlands Capital, the recruiting process in the crypto industry, and his thoughts on the crypto startup landscape.
Key Takeaways
Transitioning from Traditional Finance to Crypto
- From Traditional Finance to Crypto: McCann’s career journey began in traditional finance, with internships at Chatham Asset Management and Bain Capital Credit. However, his interest in crypto, sparked during the 2017 bull run, led him to pursue a full-time role in the crypto industry. He gained experience through part-time roles at Messari and Analyst DAO before accepting a position at Horizen Labs, which later spun out to form Outerlands Capital.
Role and Responsibilities of a Crypto Analyst
- Role of a Crypto Analyst: As a crypto analyst at Outerlands Capital, McCann’s responsibilities include performing due diligence and staying updated on over 100 tokens. His tasks involve monitoring daily news and upcoming catalysts, communicating with project teams, and conducting deep research into their business models. He also contributes to the firm’s public-facing research pieces and performs tokenomics advisory work for partners.
Outerlands Capital’s Investment Philosophy and Structure
- Investment Philosophy and Structure: Outerlands Capital believes in the transformative potential of blockchain technology and the value of tokens as the primary value capture mechanism for underlying products/services. The firm employs factor investing principles, using data-driven analysis to quantify fundamental investment themes across a large universe of investable assets. The team is split into two groups, “Systematic” and “Fundamental”, which collaborate to create a “virtuous cycle” of research and analysis.
Recruiting Process in the Crypto Industry
- Recruiting Process: The recruiting process in the crypto industry is unstructured, with companies hiring on an as-needed basis. McCann’s experience ranged from standard traditional finance interviews to investment case study presentations and single video meetings. He emphasizes the importance of networking and active participation in the industry before joining full-time.
Advice for Aspiring Crypto Analysts
- Advice for Aspiring Analysts: McCann advises those interested in becoming a crypto analyst to be intensely curious about how crypto works and to develop conviction about the industry’s future. He recommends starting to contribute to the industry as soon as possible, such as by writing memos on invested tokens, utilizing unique skills to enhance these reports, and building a reputation through social media and community interactions.
Actionable Insights
- Understanding the Crypto Landscape: Those interested in a career in crypto should actively participate in the industry, such as by investing in tokens, using apps, and writing memos on the tokens they’ve invested in. This hands-on experience can provide valuable insights and demonstrate active interest and conviction in the industry to potential employers.
- Leveraging Unique Skills: Aspiring crypto analysts should utilize their unique skills to enhance their contributions to the industry. For example, those with a finance background can showcase their modeling skills and understanding of how different inputs drive value to a token, while those with a tech background can explore uncharted territory in data analysis.
- Building a Network: Networking plays a crucial role in the crypto industry. Aspiring analysts should interact with others in the industry, join project communities, and become experts in a sector they find interesting. This can help them learn more about career opportunities in crypto and the niches that other smart people are looking at.
