Research Summary
The report by Multicoin Capital explores the Attention Theory of Value, the potential of NFTs as collectibles, the role of stablecoins in remittances, the shift in the crypto industry, the increase in on-chain data, and the emergence of new token distribution methods. It also discusses the concept of UI-layer composability, the importance of zero-knowledge technologies, and the potential of client-side privacy.
Key Takeaways
The Attention Theory of Value
- Value Determined by Attention: The report discusses the Attention Theory of Value, which suggests that the value of certain assets is increasingly determined by the amount of attention they receive rather than traditional financial metrics. This theory has become relevant in traditional markets, with assets like TSLA, GME, AMC, DOGE, and CryptoKitties experiencing price discovery based on social consensus and attention.
The Potential of NFTs as Collectibles
- Collectibles and Blockchain: The report highlights the potential of NFTs as collectibles and the social networks that will emerge around them. Blockchains address several barriers faced by collectors, such as issues of authenticity, trade and exchangeability, security, and storage, thus attracting more people to the hobby.
Stablecoins and Remittances
- Remittances and Stablecoins: The report discusses the potential of stablecoin-powered remittances in emerging markets. Stablecoins are expected to further reduce the costs of global remittances, building on the digital payment advancements of the past 12 years.
Shift in the Crypto Industry
- Crypto Powering Products: The report discusses the shift in the crypto industry from crypto being the product to crypto powering the product. The infrastructure developed over the last five years has set the stage for crypto to be integrated into everyday use cases, with a wide design space for future applications.
Emergence of New Token Distribution Methods
- New Token Distribution Methods: The report discusses the emergence of new token distribution methods, DePIN and Points, during the recent bear market. These new methods are seen as potential catalysts for the next surge in crypto users, particularly attracting those who earn crypto assets rather than purchasing them.
Actionable Insights
- Exploring the Attention Theory of Value: Businesses and investors can explore the Attention Theory of Value to understand how social consensus and attention can influence the value of assets. This can help in making informed investment decisions and developing strategies that leverage social attention.
- Investigating the Potential of NFTs as Collectibles: Businesses can investigate the potential of NFTs as collectibles and the social networks that will emerge around them. This can help in identifying opportunities for creating and trading digital collectibles.
- Understanding the Role of Stablecoins in Remittances: Businesses and investors can understand the role of stablecoins in remittances to identify opportunities for facilitating cheaper and more accessible money transfers in traditionally expensive corridors.
- Recognizing the Shift in the Crypto Industry: Businesses can recognize the shift in the crypto industry from crypto being the product to crypto powering the product. This can help in identifying opportunities for integrating crypto into everyday use cases.
- Examining New Token Distribution Methods: Businesses and investors can examine new token distribution methods, DePIN and Points, to understand their potential impact on the crypto market. This can help in identifying opportunities for earning crypto assets.
