Sun Oct 29 2023

Nick Tomaino's Background and Venture Career:

• Nick Tomaino is the founder of 1confirmation, a leading seed firm in the crypto space.
• Before founding 1confirmation, Nick worked at Runa Capital and Coinbase.
• He has a strong personal brand and built relationships in the crypto community.

The Size of Funds in Crypto Investing:

• The first fund of 1confirmation was $26 million, which was considered big for a first-time fund manager in venture but small in the crypto space.
• Many current generation crypto funds are seen as too large, and there is a need to give money back to limited partners (LPs).
• The next generation of crypto funds is expected to be smaller, with LPs becoming more skeptical and focusing on performance.

SBF & FTX Controversy:

• SBF refers to Sam Bankman-Fried, associated with FTX, an exchange platform.
• There is ongoing controversy surrounding SBF and FTX regarding market manipulation and dumping tokens on retail investors.
• People within the crypto community have different opinions about who should be held accountable for these actions.

Building the Best Crypto Portfolio in Venture:

• Fund size can vary depending on investment strategy. 1confirmation started with a $26 million fund for early-stage investments.
• Number of investments made per fund depends on factors such as fund size and opportunities.
• Loss rates in crypto investing have been lower compared to traditional venture investing.
• Nick has had both successful investments and losses that influenced his mindset and approach to investing.

The Future of NFTs and OpenSea:

• NFTs offer a unique business model for creators on the internet by aligning incentives between creators and supporters.
• OpenSea is seen as an important player in the NFT space, providing an on-ramp for users to buy and sell NFTs.
• Nick remains bullish on the future of NFTs, believing they will become a significant asset class with broader applications beyond visual artwork.
• Skepticism and criticism of NFTs exist, but Nick sees long-term potential.

Nick Tomaino's Independent Thinking:

• Nick is known for his independent thinking and being principled in his investment decisions.
• He strives to find a balance between staying true to his principles and being open to new perspectives.
• His mindset is influenced by factors such as mental strength, self-belief, and a strong sense of identity.

Crypto Funds and the Future of Crypto Investments:

• Current generation crypto funds may be too large.
• There is a question of whether they should give money back to their LPs.
• The next generation of crypto funds might be smaller.
• It is unclear if any crypto funds are able to raise right now.
• Crypto Twitter has shown animosity towards crypto VCs.
• Some VCs are known for engaging in pump and dump schemes.

SBF & FTX: What Actually Happened, Who is to Blame, What Happens from here?:

• There are misconceptions surrounding SBF and FTX that need clarification.
• The issue of accountability arises regarding what happened with SBF and FTX.
• Changes need to be made in how LPs invest into venture managers through FTX.

How to Build the Best Crypto Portfolio in Venture:

• The size of funds plays a role in building the best crypto portfolio.
• Determining the right size for a fund requires careful consideration.
• Nick makes multiple investments per fund but does not specify an exact number.
• Loss rates in crypto investments vary and can impact overall portfolio performance.
• Nick has experienced both significant investment hits and losses.

The Future for NFTs and Opensea:

• Nick remains optimistic about the future of NFTs despite challenges.
• Despite high volumes, Nick sees potential for Opensea's future success.
• Nick believes there is a fair price point for Opensea at present.
• The transcript does not mention whether or not Nick sold their Opensea at the $13Bn round.