• Rishi Sunak became Prime Minister of Britain this week. Sunak is a well-known supporter of Web3 and cryptoassets. As Chancellor of the Exchequer, he penned a report in April advocating that Britain become a ‘global cryptoasset technology hub.’ Whether he lasts in the role, the approach to Web3 reveals a broader global competition amongst governments to attract investment and entrepreneurs in new areas of innovation. See Alex’s write-up below for a full breakdown.
  • The future of money is once again in the news: Alex Tapscott wrote an opinion piece for Fortune outlining the three future paths for money, including ‘public’ cryptoassets like Bitcoin, privately issued money backed by collateral (known as stablecoins) and central bank digital currencies, aka CBDCs. In this week’s Quantitative Analysis section, we shine a spotlight on stablecoins.
  • Apple (NASDAQ: AAPL) has tightened its grip on crypto and NFTs in the app store: Apple and Android, owned by Google (NASDAQ: GOOG) are the operating system duopoly for all smartphones. Apple not only control which apps get published to the app store, it also takes a 30% cut of revenues from in-app purchases. NFTs and cryptoassets threaten to disrupt that entire model, because they can be transacted peer to peer, outside of the grip of the tech conglomerates. Apple recognizes this threat which is why they have banned blockchain based games where players can trade virtual goods peer to peer. Instead, Apple is only authorizing in-app purchases which are directly subject to the 30% rule.
  • How Many Crypto Unicorns is Too Many? There are nearly as many private companies valued at $1 billion (approx. 35) as there are cryptoasset networks (approx. 55). In our view, most value will get captured long-term at the token level. Whereas tokens get marked to market 24/7/365, most private companies are still priced at high water marks set during the bull market. Down rounds are coming. See write up below.