We recently closed 1confirmation fund III, a new $125M venture fund. The fund allows us to continue investing in the companies, cryptocurrencies and NFTs empowering people around the world to have more control of their lives.

We launched our $26M fund I at the peak of the last bull market in 2017 and have since grown AUM to over $800M. Our beliefs about the future have remained consistent since our initial launch 4 years ago:

NFTs have recently exploded into the mainstream consciousness in a way that nothing else has in the history of our industry. Google trends data shows interest in NFTs recently surpassed interest in cryptocurrency.

Google Trends data

I’ve got a theory for why it’s happening now based on years of context and am sharing for those who don’t have the context. This is probably nothing new for people who have been closely following the industry for a while.

Bitcoin: Digital Gold + 21M

Satoshi Nakamoto pseudonymously created Bitcoin in 2009 and for 11+ years, cryptocurrency has appealed to people who primarily care about money and finance. People own bitcoin…

Internet culture and real world culture are colliding. WallStreetBets blowing up a multi-billion dollar Wall Street hedge fund last week is the latest example and it doesn’t feel like the trend is slowing down anytime soon.

Mark Cuban has been a fixture in real world culture for the past few decades, but he’s also stayed true to his roots and remained plugged into internet culture. At the recent 1confirmation LP day, Mark and I discussed everything from how he stays so connected with people online at a time when peers are getting meme’d off to what the future of internet…

At a time when in-person shows have come to a halt globally, mainstream musical talent is beginning to take note of the growth of Ethereum-based digital art. In September, digital art sales reached $1M+ and October sales already surpassed that. The collector demand is there and top-tier talent is recognizing it.

3LAU is one of the mainstream musical talents that has recently entered the digital art world. He’s made millions in his 10+ year career touring around the world, had a #1 dance single globally and gets 2M+listens every month on Spotify. Along with his long-time visual collaborator slimesunday, he…

2020 has been a breakthrough year for digital art. Creatives have used computers to create unique images and videos for decades, but prior to Ethereum the only way to make serious money as a digital creative was to get hired by a company who could utilize the images or videos. One can make a great living as a designer at Apple or a 3D animator at Nintendo, but those opportunities are limited.

The creation of Ethereum and subsequent creations of the ERC721 standard and tools like SuperRare and Opensea have allowed creatives globally to tokenize their PNG, GIF and MP4…

A Conversation with Hugh Karp of Nexus Mutual

On-chain capital coordination has taken various forms in the 5 year history of Ethereum: hundreds of millions(in USD) to a venture fund (The DAO in ‘16), billions to crowdfunding (ICOs in ’17 and ‘18), and billions to lending and exchange products (DeFi in 2020). It remains to be seen whether these products will reach a broader audience beyond crypto natives, but if you’re paying attention the core value proposition of an open, global platform for finance is now clear.

An insurance mutual is a form of capital coordination that hasn’t received as much attention to date. But I’ve been excited…

An investor at an endowment recently said to me “I believe in BTC as digital gold, but I don’t understand what gives ETH long term value? Unlike a business, there’s no underlying cash flow. Throughout history when an asset is worth billions of dollars in total market cap with no fundamentals underlying it, it eventually crashes. This must be the likely outcome for ETH.”

Many traditional investors share that sentiment. They now believe the investment case for BTC but they don’t understand the ETH investment case. …

Beating the virus is going to take as much effort as humanly possible

We’re a cryptocurrency-focused investment firm, but we feel a responsibility to contribute to the decentralized response to beating the virus. We’re now giving $2,500 grants to support individuals who are finding ways to help those suffering from the physical, emotional and financial damage that’s being caused. The ideas don’t need to be cryptocurrency related, although we welcome those of course.

Ideas can be anything, from 3D printing of respirator parts for the doctors and nurses on the frontlines, to new testing and tracing tools, to organizing local food deliveries for the elderly or kids who are no longer able to…

A non-custodial wallet that makes Ethereum easier to use

One of the biggest barriers to broader cryptocurrency adoption is user experience. The majority of people using open, global financial products on Ethereum (aka DeFi) today are crypto-natives who don’t mind dealing with the complicated key management and wonky gas payments that come with using non-custodial wallets like Metamask and Ledger. Metamask and Ledger are both good products that many are using, as the explosion of total value locked DeFi in the past year shows. But the wallet UX must improve for adoption to grow beyond crypto-natives.

Custodial services like Coinbase offer users a good UX but aren’t compatible with…

If you’ve got cash in a savings account in the U.S., the best savings rate you can find today is ~1.78% annual percentage yield (APY). If you’re in a country outside the U.S. dealing with negative interest rate policy, you’re even worse off. The desire of central banks around the world to keep rates low to stimulate investment and prop up public markets comes at a cost to people who want to save for the future.

If you’ve got Dai (a stablecoin) in an Ethereum wallet, you can earn 8.8% APY. The Dai Savings Rate (DSR) launched in November 2019…

Nick Tomaino

Founder @1confirmation

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