Beanie

Beanie

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Crypto native since the early days. Went all in on DeFi summer. Then tripled down on NFTs. VC @gmcapital_. No paid promos. Not financial advice. I talk my book.

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Polymarket with fees is just an unlicensed sports book with worse lines. Still has regulatory arbitrage. But uncertain how long that edge lasts as legislators are already working to prohibit prediction markets from sports betting. US licensed sportsbooks can't even accept crypto.

$500 million deposited at a 4.27% APY. Crypto is not a serious industry.

The elephant in the room is why do ANY of these protocols rely on humans (that can go rogue, make errors, get phished) to administrate the deposits? This isn't real DeFi. There's nothing decentralized about having human intermediaries. It's just a more insecure version of a bank.

"Durable nonce" is just a fancy description for a simple Solana TX. Fact is, the multisig that controlled access to $500 million in depositor funds required only 2/5 signatures. Also, there was no timelock mechanism that could have prevented the incident. Woefully inadequate.

What makes this $280 million Drift hack so devastating is that it's not a smart contract exploit. We've seen flash loans breach similar platforms before. In this case a dev was phished for an admin key. Inconceivable that no risk factors are disclosed anywhere. Heads should roll.

This thesis took a week to age very poorly. The problem with these DeFi protocols are that they're not actually decentralized. It's like an unregulated bank with the manager hiding the keys to the vault under a mattress. There's no accountability and that makes it not investible.

Crypto easily provides the best opportunities in the world to make money regardless of market conditions just simply by paying attention. In this case you could have doubled your money in an instant by just being moments ahead of the Drift hack news. And it happened hours before.

On an anecdotal note (which is ultimately what counts), despite internally writing down nearly every recent Gm Capital crypto venture investment to basically zero, I remain optimistic that I'll prosperously emerge from the cycle. It only takes one winner. And I'm well positioned.

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