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VeradiVerdict - Global Insights - Issue #3

Hi, I am Paul Veradittakit, a Partner at Pantera Capital, one of the oldest and largest institutional
September 18 · Issue #3 · View online
Hi, I am Paul Veradittakit, a Partner at Pantera Capital, one of the oldest and largest institutional investors focused on investing into blockchain companies and cryptocurrencies. I focus on early investments and want to share my thoughts and what’s going on in the industry in this weekly newsletter.

View and comment this newsletter on Medium

I just spent the last week in Shanghai and Singapore (Cumberland Crypto Summit). The Cumberland Crypto Summit was one of the best events I’ve attended this year, as the attendees were top-notch and discussions were insightful. Cumberland did a great job planning so kudos to them.

Some insights derived from the week:

1) ICO funding has dropped significantly recently. I’ve definitely noticed a tougher time for projects in the United States, especially some of our portfolio companies, to fundraise. Funds don’t want to liquidate positions when the market is so slow, some are wanting to move positions into BTC instead of investing in newer projects, and projects are also lengthening their issuance/vesting schedules. Reports are confirming this decline, as $326m was raised in August 2018, the lowest monthly total since May 2017.

2) Regulations have made it tougher for ICOs to get started in Japan. In addition, since the Coincheck hack, the government is becoming stricter about crypto exchanges’ attempt to merge existing financial institutions with them.

3) It’s not technically illegal to do an ICO in Korea.

4) While numerous reports are that the price of Ethereum has come down recently, some factors that can contribute to more value are proof of stake, the levelling of supply, and burning of tokens.

5) Security tokens of venture capital fund ownerships make sense in South East Asia, as there are no secondary markets for fund ownership. The reason for the excitement of tokenize VCs is that even though it’s not a new concept (other VC funds have been listed on exchanges), tokenization can provide greater liquidity which is lacking for existing exchange-listed VCs.
PoW is Efficient
Constantinople Ahead: What You Need to Know About Ethereum's Big Upgrade
Introducing the 4th era of crypto: Crypto-institutionalization.
In the Tweets
Crypto Michaël
Question yourself: Why is it easy for you to buy $ETH on $800, but hard to buy at $200?

Answer: Your emotions are in control. Grow some balls.

When there’s blood on the street, it’s your time to buy. When everybody is enthusiastic, it’s your time to sell.
4:48 AM - 16 Sep 2018
Joe Weisenthal
In all seriousness, I think the best thing that could happen to the nascent "Stablecoins" space is that it collapses now before it gets too big.
4:23 AM - 15 Sep 2018
Erik Voorhees
Bear markets are for builders. The calm, the quiet, the disillusionment... while the fickle and fair-weather peer around with nervous insecurity, the builders become the market's foundation, preparing the mortar and stone of tomorrow's towers. #bitcoin
7:01 AM - 17 Sep 2018
Research: ICOs See Lowest Funding Level in 16 Months
Brave Browser Files GDPR Complaint Against Search Giant Google
Tezos Surges 50% in a Week Ahead of Scheduled Mainnet Launch
Morgan Stanley to Launch Bitcoin Swap Trading
Ant Financial rolls out China's first blockchain-powered electronic medical prescription service
U.S. Judge Rules That ICOs are Covered by Securities Laws
South Korean Police, FBI Bust International XRP Phishing Scam
Korea's Financial Watchdogs to Come Up with Supervision Plans for ICO Industry
New Products and Hot Deals
BMW Partners Blockchain Startup to Develop Customer Lending Solution
Hong Kong Jeweler Introduces Blockchain App for Diamond Authentication
Introducing Vault: the best dApp and Collectibles wallet you’ve ever seen
Carbon Becomes Latest Startup to Launch a Dollar-Pegged Stablecoin
HyperChain Capital Launches HyperBlocks Pro Staking Service
Meet with Me
I will be traveling this fall for certain events, and to meet with investors. Let me know if you and your colleagues would like to meet in person.

Singapore, Consensus Singapore, September 19-20
San Francisco, SF Blockchain Week, October 9
Las Vegas, Money 2020 USA, October 21-24
Prague, DevCon 4, October 30-November 2
Macau, Sora Summit, November 13
Hangzhou, Money 2020 China, November 14
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