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How to Invest in Blockchain

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Presentation at Blockchain Unchained in Geneva, Sept 12 2018, covering the landscape of investment opportunities in the blockchain sector.

Published in: Technology
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How to Invest in Blockchain

  1. 1. How to Invest in Blockchain William Mougayar Investor, Advisor, Board Member Managing Partner, JM3 Capital Author, The Business Blockchain Founder, The Token Summit and WMX @wmougayar wmougayar@gmail.com Geneva, 12 September 2018
  2. 2. NOT… Speculate. NOT… What to invest in. ➔ How to THINK about the investment landscape © 2018 William Mougayar @wmougayar
  3. 3. ① Who ② What ③ How © 2018 William Mougayar @wmougayar
  4. 4. Disclosures and Market Activities • Book (10 languages) • Token Summit • Active blogging • WMX Blockchain Index • Tech Accelerators & VC relationships • Knowledge websites • Strategic Advisory • Boards & Foundations • Startups Investments • ICOs participation & Advisory • Regulatory interactions
  5. 5. © 2018 William Mougayar @wmougayarSource: Elementus
  6. 6. Source: Bloxy.info
  7. 7. 70% 30-40% 5-10% Web Analogy & Where We Are © 2018 William Mougayar @wmougayar Web: Facebook, Twitter Web: Internet, HTTP, HTML Web: Java, Oracle, Microsoft
  8. 8. Blockchain Landscape © 2018 William Mougayar @wmougayar
  9. 9. ① Consumers ② High Net Worth, Family Offices ③ Institutional Funds © 2018 William Mougayar @wmougayar Who is investing?
  10. 10. Instruments and Liquidity © 2018 William Mougayar @wmougayar CC Derivatives (e.g. futures, Indices, ETF’s) Equity Future Token Rights Cryptocurrencies Token Offerings
  11. 11. Tokens 1.0 vs. Tokens 2.0 Copying what we see vs. Inventing what we don’t see © 2017 William Mougayar @wmougayar
  12. 12. OLD NEW NEW OLD NEW NEW COMPANIES SCOPE © 2018 William Mougayar @wmougayar Segmentation of Implementations ? ✔ 1.0 2.0 B2B
  13. 13. Some Decentralization Examples • Blockchains • P2P Commerce (OpenBazaar) • CryptoAssets Trading (CryptoKitties) • Decentralized Exchanges (0x) • Decentralized Storage (Storj, Filecoin) • Decentralized Computing (Golem, Dfinity) • Decentralized Content (Peepeth) • More… © 2018 William Mougayar @wmougayar
  14. 14. Tokens Segmentation 1. Cryptocurrency 2. Functional Tokens with utility (Work, Governance, Right, Payment) 3. Security Tokens (Equity, non- Equity/Collateral-ized) 4. Cryptoassets (Collectibles, Art, Digital assets) © 2018 William Mougayar @wmougayar
  15. 15. Source: Bloxy.info ERC-721 Token Activity
  16. 16. Source: Bloxy.info ERC-721 Token Functions
  17. 17. © 2018 William Mougayar @wmougayar
  18. 18. 10 Things you Can Do on the Blockchain that you Can’t on the Web 1. Send money from one person to another without traditional intermediaries. 2. Be the sole owner of a digital good, digital collectible or a real asset’s crypto proxy. 3. Earn money as a reward for work done (by a computer or human). 4. Be your own bank, and hold your own cryptocurrency. 5. Sell or buy something without any central co-ordinating authority. 6. Share unused computing or storage capacity and get paid for it. 7. Store content on a decentralized network that would never go down or get censored. 8. Contribute to recording something on the blockchain. 9. Pay for a service or good using a cryptocurrency you earned. 10. Earn cryptocurrency for data you shared.
  19. 19.  CoinMarketCap.com DAppBoard.com
  20. 20. © 2018 William Mougayar @wmougayar Tracking the Blockchain Market with Numbers Market Cap _ USD 189 B * Daily Trades _ USD 18 B Total Raised _ USD 26 B Coins Traded _ 1,639 Apps _ 5,000+ Macro View • Active Users (Daily, Weekly or Monthly) • Total transactions (number) • Value of transactions (value) • Balances in smart contracts (value) • Transactions to/from contracts (number) • Value of transactions to/from contracts (value) • Blockchain rewards to users (value) • Wallets value (value) Outcomes • Unique addresses • Active addresses • Wallets • Nodes • Transactions per second • Blocks per hour • Developers • API calls • Software downloads • Repositories • Commits • App downloads • Clients Activity (numbers) Traction View * as of Sept. 12 2018, Source: CoinMarketCap
  21. 21. © 2018 William Mougayar @wmougayar
  22. 22. ① Consumers: Public ICOs, Public Cryptocurrencies, Indices, Managed Funds. ② High Net Worth, Family Offices: Public/Private ICOs or Equity as accredited investors. ③ Institutional Funds: Hedge funds, VC funds, Hybrid funds, across the whole spectrum. © 2018 William Mougayar @wmougayar How to invest?
  23. 23. Selling the Vision Build-out Installation Deployment Acceleration Vision Realization 2018-2020 2013-2015 2015-2016 2021+ 2016-2018 2019-2021 Blockchain: The Evolution We are here © 2017 William Mougayar @wmougayar
  24. 24. © 2018 William Mougayar @wmougayar Computation Protocols Data Content Storage Work Rewards EarningSpending Sharing Industry Trade Law Finance Nations The Blockchain Economy
  25. 25. The best way to invest in the blockchain is to invest your time using blockchain Apps to learn and earn. © 2018 William Mougayar @wmougayar
  26. 26. The stone age didn’t end for a lack of stones. © 2018 William Mougayar @wmougayar
  27. 27. THANK YOU William Mougayar Investor, Advisor, Board Member Managing Partner, JM3 Capital Author, The Business Blockchain Founder, The Token Summit and WMX @wmougayar wmougayar@gmail.com http://startupmanagement.org/blog jm3.capital

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