Apps Are Taking Over Crypto | 6th Man Ventures
Episode publishedPodcast: 0xResearch0xResearch
Transcript preview
Preview only
I think developing a great experience or a great game is, like, by far the most important thing. So if you do that, it would we're very confident that revenue will come. But because crypto is fundamentally built on a financial system, there's almost no reason that revenue shouldn't be available day one. Nothing
said on Xerox Research is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Boccaccio, Ryan, and our guests may hold positions in the company's funds or projects discussed. What's up, guys? Welcome back to another episode of Xerox Research Today. I'm joined by Carl Vogel and Mike Dudas from Six Man Ventures, as well as Ryan, from BlockWorks Research. Carl, Mike, thanks for coming on. Thanks
for having me. Thank you. Chat. I
guess to get us started, I want to chat to you guys about investing in app over in infrastructure because typically, I feel like most people associate VCs with investing in infra. What are I guess, do you think we have too much infrastructure and that's why you're focused on apps, or do you just see there being more opportunity in investing in apps as opposed to infrastructure?
Yeah. It's a it's a great question. I'll start. Actually, I was at, Solana Crossroads before recently being a token, and I was on a VC panel there. And, basically, this is the number one question we see that comes up on any sort of venture conversation is where should capital be allocated in the ecosystem, and are we over indexing to one area versus the other? My general take is we have too many investments in generalizable block space. And what I mean is if you look at the total generalized block space out there, in other words, not specific to a particular use case, just general l one space,
Two other things that I'll add.
If you wanna dive yeah. Dive me where specific, but that's that's my high level framing. Two
other things that I'll add are, the reason so much capital is allocated to infrastructure historically has been is because you can actually write larger checks into these things, and that is the business model of many of the mega VCs and the majority of capital raised in the space. So you you do have some sort of incentives that don't necessarily align with what's actually ultimately needed in the ecosystem for use. Second piece is to that, apps don't always require as much capital to get to, you know, wild revenue generation outcomes. You know, Hyper Liquid, I think they didn't raise any outs
I wanna dive into the apps, but before we get started on that, I wanna ask, do you think that, the l one or the l two, the chain premium is going to go away soon with the generalizable blockchains being over invested in. So do you think we're gonna I guess, we're kind of seeing it now, but do you think that trend continues? Have we found the final alternative for a chain or not yet? Yes.
Keep exploring with a free account.
A free account preserves the short preview. Upgrade to Pro for the full transcript and episode chat.