Biggest Cryptocurrency Opportunity: Tokens (w/ Dan Morehead) | Interview | Real Vision™


Mike Green here to interview Dan Morehead. Dan is the founder of Pantera Capital. Fantastic history in the industry, doing macro
for Julian Robertson back at Tiger Global and ultimately transitioning to running his
own firm which has become incredibly focused on the bitcoin and cryptocurrency environment. Dan is going to come to us and talk about
the opportunities in crypto as well as his insights on how this develops forward in terms
of the social dynamics. Really excited to talk to him, can’t wait
to see it. I think the biggest opportunity is this way
that tokens are allowing the value and protocols to go to the developers and the early community
members. I think it’s a really important invention. In the previous era, the inventor of the protocol
would essentially get almost no value, and then a capitalistic enterprise would build
an application on top of the protocol and often end up with monopoly power. And if you look at the US, the top five most
valuable companies in the US are basically data monopolies. With tokens, you’re going to be able to distribute
the value of the protocol to the developers and the early community members, and I think
you can end up with a really, really different distribution of wealth. And the importance is the protocols now, the
people who develop it will get shares in the protocols. They’ll distribute it to all their community,
and then the community members will have a stake in its success, which is very different
than the capitalist companies out there right now, where most users and most of the popular
digital sites, you have no stake in their success. When I think about the dynamic– when you
say the early users, and the early adopters, and the developers, is it materially different
from stock options, for example? Or I mean, that’s a way to share ownership. Sure, but those are on equity ownership of
a company. The best example would be the developers who
built all the protocols that are currently the backbone of the internet essentially got
nothing for their efforts. In the most extreme case, Tim Berners-Lee
invented the web and got no financial reward for that. However, Google, or Facebook, or the other
data monopolies that sit on top of the web have now garnered all the value. With tokens, you’re distributing the value
of the protocol to all of the developers and the early users. So the team that builds it– Augur is a great
example. Joe and his team have built a really amazing
system. They and their early users are going to garner
the value from having created this. And so I think when you look back in 15 years,
you’re going to see this era as being really a seminal moment in finance. And I think the transaction that really catalyzed
it in my mind was Kik Messenger going to tokenization. So as I said, we have probably 50 to 100 token
issuers out there already. Essentially, all of them are development projects
that have yet to release an actual, live product. Augur will be the first one to go live on
Ethereum in a couple of months. But as amazing as it is, it’s still in development
stage. All the rest of the projects that have been
announced are in the development stage and who knows if they’ll actually be able to build
the code for it and get a community. Whereas in this case, Kik has been around
for nine years. They have hundreds of millions of accounts. They have tens of millions of active users. They are going to open source their entire
code base and convert their $120 million of venture funding into tokens. And so all of the developers that build cool,
interesting applications to go on this new Kin network will share in the success of the
network.

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